NOTES TO CONDENSED FINANCIAL STATEMENTS
NOVEMBER 30, 2018 and 2017
(UNAUDITED)
Note 1 – Organization
Reviv3 Procare Company (the “Company”,
“We”, “Its”, and “Procare”) was incorporated in the State of Delaware on May 21, 2015 as a
reorganization of Reviv3 Procare, LLC which was organized on July 31, 2013. The Company is engaged in the manufacturing, marketing,
sale and distribution of professional quality hair and skin care products throughout the United States, Canada, Europe and Asia.
Note 2 – Basis of Presentation,
Going Concern and Summary of Significant Accounting Policies
Basis of Presentation
The unaudited financial statements
for the three and six months ended November 30, 2018 and 2017 have been prepared by us pursuant to the rules and regulations
of the Securities and Exchange Commission. In the opinion of the management, all adjustments necessary to present fairly
our financial position, results of operations, and cash flows as of November 30, 2018 and 2017, and for the periods then
ended, have been made. Those adjustments consist of normal and recurring adjustments. Certain information and note
disclosures normally included in our annual financial statements prepared in accordance with generally accepted accounting
principles have been omitted. The unaudited financial statements should be read in conjunction with the financial statements
and notes thereto included in the Company’s annual report on Form 10-K for the year ended May 31, 2018. The results of
operations for the six months ended November 30, 2018 are not necessarily indicative of the results to be expected for the
full year.
Going Concern
As reflected in the accompanying financial
statements, the Company has a net loss and net cash used in operations of $151,343 and $147,200, respectively, for six months period
ended November 30, 2018. Additionally, the Company has an accumulated deficit of $4,639,510 at November 30, 2018. These
factors raise substantial doubt about the Company’s ability to continue as a going concern for a period of 12 months from
the issuance date of this report. The ability of the Company to continue as a going concern is dependent on the Company’s
ability to implement its business plan, raise capital, and generate sufficient revenue; however, the Company’s cash position
may not be sufficient to support its daily operations. Management intends to raise additional funds by way of a private or public
offering. While the Company believes in the viability of its strategy to further implement its business plan and generate sufficient
revenue and in its ability to raise additional funds, there can be no assurances to that effect. The financial statements do not
include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification
of liabilities that might be necessary should the Company be unable to continue as a going concern.
Use of estimates
The preparation of the financial statements
in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial
statements and during the reporting period. Actual results could materially differ from these estimates. Significant estimates
made by management include, but are not limited to, the allowance for doubtful accounts, inventory valuations, the useful
life of property and equipment, the valuation of deferred tax assets, the value of stock-based compensation, and the fair value
of non-cash common stock issuances.
REVIV3 PROCARE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOVEMBER 30, 2018 and 2017
(UNAUDITED)
Note 1 – Organization (continued)
Cash and cash equivalents
The Company considers all highly liquid
debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents. The
Company maintains cash and cash equivalent balances at one financial institution that is insured by the Federal Deposit Insurance
Corporation.
Accounts receivable and allowance
for doubtful accounts
The Company has a policy of providing
on allowance for doubtful accounts based on its best estimate of the amount of probable credit losses in its existing accounts
receivable. The Company periodically reviews its accounts receivable to determine whether an allowance is necessary
based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Account
balances deemed to be uncollectible are charged to bad debt expense and included in the allowance after all means of collection
have been exhausted and the potential for recovery is considered remote.
Prepaid expenses and other current assets
Prepaid expenses and other current
assets of $8,889 and $3,505 at November 30, 2018 and May 31, 2018, respectively, consist primarily of costs paid for future
services which will occur within a year. Prepaid expenses at November 30, 2018 primarily included prepaid rent and at May 31,
2018 primarily included cash prepayments to vendors.
Advances to suppliers
Advances to suppliers represent the
cash paid in advance for installment payments for the purchase of inventory. The advances to a supplier are interest free and unsecured.
As at November 30, 2018 and May 31, 2018, advances to the Company’s major supplier amounted to $15,752 and $3,413, respectively.
Upon shipment, by the vendor, of the purchase inventory, the Company reclassifies such advances to supplier into inventory.
Inventory
The Company values inventory, consisting
of finished goods and raw materials, at the lower of cost and net realizable value. Cost is determined using an average cost method.
The Company reduces inventory for the diminution of value, resulting from product obsolescence, damage or other issues affecting
marketability, equal to the difference between the cost of the inventory and its net realizable value. The Company evaluates its
current level of inventory considering historical sales and other factors and, based on this evaluation, classifies inventory markdowns
in the statement of operations as a component of cost of goods sold. These markdowns are estimates, which could vary significantly
from actual requirements if future economic conditions, customer demand or competition differ from expectations.
Property and Equipment
Property and equipment are carried at
cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful
lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When
assets are retired or disposed of, the cost and accumulated depreciation are removed, and any resulting gains or losses are included
in the statement of operations.
REVIV3 PROCARE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOVEMBER 30, 2018 and 2017
(UNAUDITED)
Note 1 – Organization (continued)
Revenue recognition
Effective June 1, 2018, the Company adopted
Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers, which is effective for public
business entities with annual reporting periods beginning after December 15, 2017. This new revenue recognition standard
(new guidance) has a five step process: a) Determine whether a contract exists; b) Identify the performance obligations; c) Determine
the transaction price; d) Allocate the transaction price; and e) Recognize revenue when (or as) performance obligations are satisfied.
The impact of the Company’s initial application of ASC 606 did not have a material impact on its financial
statements and disclosures and there was no cumulative effect of the adoption of ASC 606.
The Company sells a variety of hair and skin
care products. The Company recognizes revenue for the agreed upon sales price when a purchase order is received from the customer
and subsequently the product is shipped to the customer, which satisfies the performance obligation. Consideration paid to the
customer to promote and sell the Company’s products is typically recorded as a reduction in revenues. See Note 10 for revenue
disaggregation disclosures.
Cost of Sales
The primary components of cost of sales
includes the cost of the product and freight-in costs.
Shipping and Handling Costs
The Company accounts for shipping and
handling fees in accordance with ASC 606. While amounts charged to customers for shipping products are included in revenues, the
related costs of shipping products to customers are classified in marketing and selling expenses as incurred. Shipping costs included
in marketing and selling expense were $9,154 and $10,625 for the three months period ended November 30, 2018 and 2017, respectively.
Shipping costs included in marketing and selling expense were $18,357 and $16,112 for the six months period ended November 30,
2018 and 2017, respectively.
Marketing, selling and advertising
Marketing, selling and advertising costs
are expensed as incurred.
Customer Deposits
Customer deposits consisted of prepayments
from customers to the Company. The Company will recognize the prepayments as revenue upon delivery of products in compliance with
its revenue recognition policy.
REVIV3 PROCARE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOVEMBER 30, 2018 and 2017
(UNAUDITED)
Note 1 – Organization (continued)
Fair value measurements and fair value of financial
instruments
The Company adopted Accounting Standards
Codification (“ASC”) 820, “Fair Value Measurements and Disclosures” (“ASC 820”), for assets
and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied
to existing generally accepted accounting principles that requires the use of fair value measurements, establishes a framework
for measuring fair value and expands disclosure about such fair value measurements. The adoption of ASC 820 did not have an
impact on the Company’s financial position or operating results, but did expand certain disclosures. ASC 820 defines
fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize
the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below:
Level 1:
|
Observable inputs such as quoted market prices in active markets for identical assets or liabilities
|
Level 2:
|
Observable market-based inputs or unobservable inputs that are corroborated by market data
|
Level 3:
|
Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.
|
The Company analyzes all financial instruments
with features of both liabilities and equity under the Financial Accounting Standard Board’s (“FASB”) accounting
standard for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on
the lowest level of input that is significant to the fair value measurement.
The estimated fair value of certain
financial instruments, including prepaid expenses, deposits, accounts payable and accrued expenses are carried at historical cost
basis, which approximates their fair values because of the short-term nature of these instruments.
Income Taxes
The Company accounts for income taxes
pursuant to the provision of ASC 740-10, “Accounting for Income Taxes” (“ASC 740-10”), which requires,
among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires
the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between
the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred
tax assets for which management believes it is more likely than not that the net deferred asset will not be realized.
The Company follows the provision of
ASC 740-10 related to Accounting for Uncertain Income Tax Positions. When tax returns are filed, there may be uncertainty about
the merits of positions taken or the amount of the position that would be ultimately sustained. In accordance with the guidance
of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all
available evidence, management believes it is more likely than not that the position will be sustained upon examination, including
the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions.
REVIV3 PROCARE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOVEMBER 30, 2018 and 2017
(UNAUDITED)
Note 1 – Organization (continued)
Tax positions that meet the more likely
than not recognition threshold are measured at the largest amount of tax benefit that is more than 50 percent likely of being realized
upon settlement with the applicable taxing authority. The portion of the benefit associated with tax positions taken that exceed
the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance
sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company
believes its tax positions are all more likely than not to be upheld upon examination. As such, the Company has not recorded a
liability for uncertain tax benefits.
The Company has adopted ASC 740-10-25,
“Definition of Settlement”, which provides guidance on how an entity should determine whether a tax position is effectively
settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively
settled upon the completion and examination by a taxing authority without being legally extinguished. For tax positions considered
effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more
likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. The
federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally
for three years after they are filed.
Impairment of long-lived assets
The Company reviews long-lived assets
for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable,
or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less
than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated
fair value and its book value.
Stock-based compensation
Stock-based compensation is accounted
for based on the requirements of the Share-Based Payment Topic of ASC 718, “Compensation — Stock Compensation”
(“ASC 718”), which requires recognition in the financial statements of the cost of employee and director services received
in exchange for an award of equity instruments over the period the employee or director is required to perform the services in
exchange for the award (presumptively, the vesting period). ASC 718 also requires measurement of the cost of employee and director
services received in exchange for an award based on the grant-date fair value of the award.
Effective June 1, 2018, the Company
adopted the ASU 2018-07 whereby, the accounting for share-based payments to nonemployees and employees is substantially aligned.
The ASU supersedes Subtopic 505-50, Equity - Equity-Based Payments to Non-Employees. Consistent with the accounting requirement
for employee share based payment awards, nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date
fair value of the equity instruments that the Company is obligated to issue when the good has been delivered or the service has
been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. There was
no cumulative effect of the adoption of this standard.
REVIV3 PROCARE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOVEMBER 30, 2018 and 2017
(UNAUDITED)
Note 1 – Organization (continued)
Net loss per share of common stock
Basic net loss per share is computed
by dividing the net loss by the weighted average number of common shares during the period. Diluted net loss per share is computed
using the weighted average number of common shares and potentially dilutive securities outstanding during the period. At November
30, 2018 and 2017, the Company had no potentially dilutive securities.
Recently Issued Accounting Pronouncements
In February 2016, FASB issued ASU 2016-02,
“Leases” (Topic 842). The new standard requires lessees to apply a dual approach, classifying leases as either finance
or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification
will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term
of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater
than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing
guidance for operating leases. The new guidance will be effective for fiscal years beginning after December 15, 2018, and interim
periods within those annual periods and is applied retrospectively. Early adoption is permitted. The Company does not believe the
guidance will have a material impact on its financial statements.
In January 2017, the FASB issued ASU
No. 2017-4, “Intangibles – Goodwill and Other” (Topic 350): Simplifying the Test for Goodwill Impairment,
which eliminates Step 2 from the goodwill impairment test. When an indication of impairment was identified after performing the
first step of the goodwill impairment test, Step 2 required that an entity determine the fair value at the impairment testing date
of its assets and liabilities (including unrecognized assets and liabilities) using the same procedure that would be required in
determining the fair value of assets acquired and liabilities assumed in a business combination. Under the amendments in ASU No.
2017-4, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting
unit with its carrying value. An entity would recognize an impairment charge for the amount by which the carrying value exceeds
the reporting unit’s fair value. In addition, an entity must consider income tax effects from any tax deductible goodwill
on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. A public business entity
that is a SEC filer should adopt the amendments in ASU No. 2017-4 for its annual, or any interim, goodwill impairment tests
in fiscal years beginning after December 15, 2019. The Company does not believe the guidance will have a material impact on its
financial statements.
In July 2017, the FASB issued ASU No.
2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging
(Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite
Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling
Interests with a Scope Exception”. The ASU was issued to address the complexity associated with applying generally accepted
accounting principles (GAAP) for certain financial instruments with characteristics of liabilities and equity. The ASU, among other
things, eliminates the need to consider the effects of down round features when analyzing convertible debt, warrants and other
financing instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer
would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. The amendments
are effective for fiscal years beginning after December 15, 2018, and should be applied retrospectively. Early adoption
is permitted, including adoption in an interim period. The Company does not expect the adoption to have any significant impact
on its Financial Statements. The Company is currently in the process of evaluating the impact of the adoption of this standard
on its financial statements.
Other accounting standards that have
been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on
the financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an
impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.
REVIV3 PROCARE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOVEMBER 30, 2018 and 2017
(UNAUDITED)
Note 3 – Accounts Receivable
Accounts receivable consisted of the
following:
|
|
November 30,
2018
|
|
May 31,
2018
|
|
|
(Unaudited)
|
|
|
Accounts receivable
|
|
$
|
38,587
|
|
|
$
|
32,733
|
|
Less: Allowance for bad debts
|
|
|
(3,039
|
)
|
|
|
(2,742
|
)
|
|
|
$
|
35,548
|
|
|
$
|
29,991
|
|
The Company recorded bad debt expense
of $297 and $1,204 during the six months periods ended November 30, 2018 and 2017, respectively. The Company recorded bad debt
expense of $297 and $0 during the three months periods ended November 30, 2018 and 2017, respectively.
Note 4 – Inventory
Inventory consisted of the following:
|
|
November 30,
2018
|
|
May 31,
2018
|
|
|
(Unaudited)
|
|
|
Finished goods
|
|
$
|
55,327
|
|
|
$
|
113,134
|
|
Raw materials
|
|
|
265,354
|
|
|
|
208,403
|
|
|
|
$
|
320,681
|
|
|
$
|
321,537
|
|
At November 30, 2018 and May 31, 2018,
inventory held at third party locations and inventory in transit amounted to $32,053 and $64,485, respectively.
During the six months period ended November
30, 2018 and 2017, the Company wrote down inventory for obsolescence of $636 and $0 which is included in cost of sales.
Note 5 – Property and Equipment
Property and equipment, stated at cost,
consisted of the following:
|
|
Estimated life
|
|
November 30,
2018
|
|
May 31,
2018
|
|
|
|
|
(Unaudited)
|
|
|
Furniture and fixtures
|
|
5 years
|
|
$
|
5,759
|
|
|
$
|
5,759
|
|
Computer equipment
|
|
3 years
|
|
|
10,112
|
|
|
|
7,495
|
|
Less: Accumulated depreciation
|
|
|
|
|
(6,948
|
)
|
|
|
(4,905
|
)
|
|
|
|
|
$
|
8,923
|
|
|
$
|
8,349
|
|
Depreciation expense amounted to $2,043
and $1,204 for the six months periods ended November 30, 2018 and 2017, respectively. Depreciation expense amounted to $1,130
and $608 for the three months periods ended November 30, 2018 and 2017, respectively.
REVIV3 PROCARE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOVEMBER 30, 2018 and 2017
(UNAUDITED)
Note 6 – Accounts Payable and
Accrued Expenses
Accounts payable and accrued expenses
comprised of the following:
|
|
November 30,
2018
|
|
May 31,
2018
|
|
|
(Unaudited)
|
|
|
Trade Payables
|
|
$
|
20,256
|
|
|
$
|
41,320
|
|
Accrued Freight
|
|
|
22,716
|
|
|
|
22,532
|
|
Credit Cards
|
|
|
19,953
|
|
|
|
15,521
|
|
Other
|
|
|
543
|
|
|
|
386
|
|
|
|
$
|
63,468
|
|
|
$
|
79,759
|
|
Note 7 – Stockholders’
Equity
Shares Authorized
The authorized capital of the Company
consists of 100,000,000 shares of common stock, par value $0.0001 per share and 20,000,000 shares of preferred stock, par value
$0.0001 per share.
Preferred Stock
The preferred stock may be issued from
time to time in one or more series. The Board of Directors of the Company is expressly authorized to provide for the issuance of
all or any of the shares of the preferred stock in one or more series, and to fix the number of shares and to determine or alter,
for each such series, such voting powers, full or limited, or no voting powers and such designations, preferences, and relative,
participating, optional, or other rights and such qualifications, limitations, or restrictions thereof, as shall be stated and
expressed until the resolution adopted by the Board of Directors providing the issuance of such shares. The Board of Directors
is also expressly authorized to increase or decrease the number of shares of any series subsequent to the issue of shares of that
series. In case the number of shares of any such series shall be so decreased, the decrease shall resume the status that they had
prior to the adoption of the resolution originally fixing the number of shares of such series.
Common Stock
During the six months period ended November
30, 2018, the Company issued 760,000 shares of common stock for $304,000 cash proceeds to third party investors at $0.40 per share.
During the three months period ended
November 30, 2018, the Company recorded 12,500 shares of common stock for shares earned by third party consultant for providing
services to the Company. The shares were valued at $0.40 per share or $5,000 based on recent common stock sales.
In June 2017, the Company issued an
aggregate of 80,000 shares of the Company’s common stock to various consultants pursuant to consulting agreements related
to marketing and business advisory services. The term of the consulting agreements ranges from 2 months to 6 months. The Company
valued these common shares at the fair value of $20,000 based on the sale of common stock in the then recent private placements
at $0.25 per common share. In connection with the issuance of these common shares, the Company recorded stock based compensation
of $20,000.
On September 26, 2017, the Company sold
100,000 shares of its common stock at $0.25 per common share for proceeds of $25,000.
Between September 27, 2017 and October
2, 2017, the Company sold an aggregate of 271,000 shares of its common stock at $0.40 per common share for proceeds of $108,400.
On September 29, 2017, the Company sold
375,000 shares of its common stock to an affiliated company at $0.40 per common share for proceeds of approximately $150,000. The
affiliated company is managed by the brother of the Company’s Chief Executive Officer.
As of November 30, 2018, 41,277,547
shares of common stock were outstanding.
REVIV3 PROCARE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOVEMBER 30, 2018 and 2017
(UNAUDITED)
Note 8 – Commitments and Contingencies
In September 2016, the Company executed
a lease agreement in connection with its office and warehouse facility in California under operating leases for a period of 37
months commencing in October 2016 and expiring in October 2019. The Company shall pay a monthly base rent starting at $6,782 plus
a pro rata share of operating expenses. The base rent is subject to an annual increase beginning in October 2017 as defined in
the lease agreement. Base rent for the period from October 2018 amounted to $7,210 per month. Rent expense amounted to $47,537
and $36,266 for the six month periods ended November 30, 2018 and 2017, respectively. Future minimum rental payments required under
this operating lease are as follows:
|
|
Total
|
|
1 Year
|
|
2-3 Year
|
|
Thereafter
|
Operating lease
|
|
$
|
79,528
|
|
|
$
|
79,528
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
|
$
|
79,528
|
|
|
$
|
79,528
|
|
|
$
|
—
|
|
|
$
|
—
|
|
The Company entered into an agreement
with a consultant, during the six months period ended November 30, 2018, for services for a term of one year commencing from September
1, 2018. The consultant shall be entitled to receive 10% of the gross revenues generated as a direct result of their activities,
a monthly fee of $1,000 and 12,500 shares of common stock of the Company on a quarterly basis. The Company recorded $5,000 for
the 12,500 shares earned for the quarter ended November 30, 2018 (See Note 7).
Note 9 – Related Party Transactions
The Company’s Chief Executive
Officer, from time to time, provided advances to the Company for working capital purposes. At November 30, 2018 and May 31, 2018,
the Company had a payable to the officer of $210 and $210, respectively. These advances were short-term in nature and non-interest
bearing.
During the six months period ended November
30, 2018, the Company paid $280 to an affiliated company for advisory services rendered. The affiliated company is managed by the
Company’s Chief Executive Officer.
Note 10 – Concentrations
Concentration of Revenue, Product
Line, and Supplier
During the six months period ended November
30, 2018 sales to two customers represented approximately 45% of the Company’s net sales at 30% and 15%. During the six months
ended November 30, 2017 sales to four customers represented approximately 67% of the Company’s net sales at 23%, 17%, 14%
and 13%.
During the six months period ended November
30, 2018 sales to customers outside the United States represented approximately 37% which consisted of 23% from Canada, 9% from
Italy, 5% from Hong Kong and 1% from United Kingdom. During the six months ended November 30, 2017 sales to customers outside the
United States represented approximately 47% which consisted of 33% from Canada and 14% from Italy.
REVIV3 PROCARE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOVEMBER 30, 2018 and 2017
(UNAUDITED)
Note 10 – Concentrations (continued)
During the six months period ended November
30, 2018, sales by product line comprised of the following:
Prep cleanser and shampoo
|
|
18%
|
Moisturizer and conditioner
|
|
13%
|
Treatment spray
|
|
6%
|
Cellular complex
|
|
6%
|
Hair masque
|
|
1%
|
Thickening spray
|
|
2%
|
Introductory kit
|
|
21%
|
Fragrance shampoo and conditioner
|
|
15%
|
Thermal protect
|
|
4%
|
Thickening spray
|
|
4%
|
Others
|
|
10%
|
Total
|
|
100%
|
During the six months ended November 30, 2017, sales by product line which each
represented over 10% of sales consisted of approximately 23% from sales of hair shampoo, 17% from sales of hair shampoo and conditioner,
26% from sale of hair treatment spray and repair products and 31% from sale of introductory kit (shampoo, conditioner and treatment
spray).
As of November 30, 2018, accounts receivable
from three customers represented approximately 77% at 26%, 32% and 19% and at May 31, 2018, accounts receivable from three customers
represented approximately 60% at 34%, 14% and 12% of the accounts receivable, respectively.
The Company purchased inventories and
products from three vendors totaling approximately $241,220 (75% of the purchases) and three vendors totaling approximately $239,000
(85% of the purchases) during the six months periods ended November 30, 2018 and 2017, respectively.