Reviv3 Procare Reports Record Third Quarter 2021 Financial Results
Reviv3 Procare Company (OTCQB:RVIV) reported Q3 2021 results, achieving 131% year-over-year revenue growth of $364,966, driven by a successful consumer marketing strategy. Gross profit rose 4% to $271,475, with a margin of 74%. However, operating expenses surged to $392,503, leading to a net loss of $106,460, compared to a loss of $41,499 in Q3 2020. The company is facing a current backlog of orders exceeding $330,000 due to supply chain disruptions.
- 131% year-over-year revenue growth
- Gross profit margin improved to 74%
- Direct-to-consumer sales model showed strong performance
- Integration with cryptocurrency payments to enhance customer experience
- Net loss increased to $106,460 from $41,499 in Q3 2020
- Operating expenses grew to 108% of sales, up from 97% the previous year
- Supply chain disruptions resulted in a backlog of over $330,000 in orders
Record Q3 results reflect
LOS ANGELES, CA / ACCESSWIRE / April 15, 2021 / Reviv3 Procare Company (OTCQB:RVIV), an emerging global e-commerce brand in the premium hair care products industry, today announced its financial and operational results for the third quarter ended February 28, 2021.
Fiscal Third Quarter 2021 Financial Summary
- Revenues increased
131% to$364,966 compared to$157,880 in the third quarter of 2020, primarily driven by growing direct-to-consumer sales, partially offset by temporary supply chain disruptions that pushed certain sales into the fiscal fourth quarter. - Gross profit in the third quarter of 2021 increased
4% to$271,475 , or74% of revenues, compared to gross profit of$112,114 , or71% of revenues, in the same quarter last year. The increase in gross profit was primarily attributable to a shift towards higher margin, direct-to-consumer sales. - Operating expenses in the third quarter of 2021 were
$392,503 , compared to$153,255 in the same quarter last year. Operating expenses as a percentage of sales totaled108% compared to97% for the same period last year. The increase is primarily due to higher marketing and advertising expenses to promote the Company's product line in direct-to-consumer channels. - Net loss in the third quarter of 2021 was
$106,460 , compared to net loss of$41,499 in the same quarter last year.
Third Quarter 2021 and Subsequent Operational Highlights
- Selected Coinbase Commerce as its cryptocurrency payments partner and completed the technical and financial integrations to accept cryptocurrency payments on its direct-to-consumer e-commerce platform.
- Reaffirmed commitment to the capital markets through engagement of investor relations specialists MZ Group (MZ) to lead a comprehensive strategic investor relations and financial communications program across all key markets.
- Launched new investor relations website, reflecting ongoing efforts to provide up-to-date information for shareholders and prospective investors.
Management Commentary
"We saw significant progress in shifting our sales mix towards a direct-to-consumer model in fiscal Q3 - notably improving our corporate margin profile," said Jeff Toghraie, Chairman and CEO of Reviv3 Procare. "While we saw impressive year-over-year revenue growth, we were nonetheless faced with supply chain challenges facing the hair care industry at large due to the COVID-19 pandemic, creating a current backlog of over
"We continued to refine our direct-to-consumer technology platform during the quarter, adding the ability to accept Bitcoin, Bitcoin Cash, Ethereum, DAI, Litecoin and USD Coin for all online shopping purchases from our customers. We also took the opportunity to reaffirm our commitment to our shareholders, engaging MZ Group to develop and execute a complete capital markets strategy designed to increase our visibility throughout the investment community. In conjunction with this partnership, we revamped our investor relations website to better highlight our ongoing achievements.
"Looking ahead, we anticipate continued growth in the high margin, direct-to-consumer segment of our business and a surge in new orders given our recently fortified supply chain. Our focus remains on continued execution success on the online marketing front, where we have seen significant traction, leveraging our portfolio of differentiated products and unrivaled customer service to match. We look forward to announcing exciting new milestone achievements in the months to come as we strive to create sustainable, long-term value for our shareholders," concluded Toghraie.
About Reviv3 Procare Company
Reviv3 Procare Company (OTCQB:RVIV) is an emerging global e-commerce brand in the
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," "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 subject to a number of significant risks and uncertainties. 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 and adjusted EBITDA as anticipated; (ii) our ability to fund our operating expenses (iii) potential difficulties or delays Reviv3 may experience in implementing its cost savings and efficiency initiatives; (iv) Reviv3's ability to compete effectively with other hair and skincare 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. Potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. 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 Contact:
Lucas A. Zimmerman
Senior Vice President
MZ Group - MZ North America
949-259-4987
RVIV@mzgroup.us
www.mzgroup.us
REVIV3 PROCARE COMPANY
BALANCE SHEETS
| February 28, | May 31, | |||||||
| 2021 | 2020 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 492,066 | $ | 409,031 | ||||
Accounts receivable, net | 91,944 | 182,201 | ||||||
Inventory | 301,523 | 288,124 | ||||||
Prepaid expenses and other current assets | 103,420 | 13,708 | ||||||
Total Current Assets | 988,953 | 893,064 | ||||||
OTHER ASSETS: | ||||||||
Property and equipment, net | 39,363 | 31,577 | ||||||
Deposits | 16,277 | 16,277 | ||||||
Right of use assets, net | 147,594 | 201,984 | ||||||
Total Other Assets | 203,234 | 249,838 | ||||||
TOTAL ASSETS | $ | 1,192,187 | $ | 1,142,902 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable and accrued expenses | $ | 348,632 | $ | 128,851 | ||||
Customer deposits | 17,330 | 128,354 | ||||||
Due to related party | 22,802 | 2,396 | ||||||
Equipment payable, current | 3,300 | 3,300 | ||||||
Loan payable, current portion | 13,878 | 5,002 | ||||||
Lease liability, current portion | 81,307 | 71,896 | ||||||
Total Current Liabilities | 487,249 | 339,799 | ||||||
LONG TERM LIABILITIES: | ||||||||
Equipment payable | 6,325 | 8,800 | ||||||
Loan payable | 155,322 | 157,898 | ||||||
Lease liability, non- current | 69,714 | 131,802 | ||||||
Total Long Term Liabilities | 231,361 | 298,500 | ||||||
Total Liabilities | 718,610 | 638,299 | ||||||
Commitments and contingencies (see Note 10) | ||||||||
STOCKHOLDERS' EQUITY: | ||||||||
Preferred stock, | - | - | ||||||
Common stock, | 4,173 | 4,129 | ||||||
Additional paid-in capital | 5,377,739 | 5,311,383 | ||||||
Shares to be issued | 25,200 | - | ||||||
Accumulated deficit | (4,933,535 | ) | (4,810,909 | ) | ||||
Total Stockholders' Equity | 473,577 | 504,603 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,192,187 | $ | 1,142,902 | ||||
REVIV3 PROCARE COMPANY
STATEMENTS OF OPERATIONS
(UNAUDITED)
| For the Three Months Ended | For the Nine Month Periods Ended | |||||||||||||||
| February 28, | February 29, | February 28, | February 29, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Sales | $ | 364,966 | $ | 157,880 | $ | 1,277,480 | $ | 612,114 | ||||||||
Cost of sales | 93,491 | 45,736 | 477,578 | 260,603 | ||||||||||||
Gross profit | 271,475 | 112,144 | 799,902 | 351,511 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Marketing and selling expenses | 201,247 | 37,497 | 501,051 | 140,260 | ||||||||||||
Compensation and related taxes | 9,065 | 7,624 | 26,868 | 38,817 | ||||||||||||
Professional and consulting expenses | 108,132 | 43,431 | 197,611 | 142,263 | ||||||||||||
General and administrative | 74,059 | 64,703 | 208,881 | 201,699 | ||||||||||||
Total Operating Expenses | 392,503 | 153,255 | 934,411 | 523,039 | ||||||||||||
LOSS FROM OPERATIONS | (121,028 | ) | (41,111 | ) | (134,509 | ) | (171,528 | ) | ||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Interest income | 12 | 25 | 31 | 95 | ||||||||||||
Gain on debt settlement | 16,313 | - | 16,313 | |||||||||||||
Interest expense and other finance charges | (1,757 | ) | (513 | ) | (4,461 | ) | (1,149 | ) | ||||||||
Other Income (Expense), Net | 14,568 | (488 | ) | 11,883 | (1,054 | ) | ||||||||||
LOSS BEFORE PROVISION FOR INCOME TAXES | (106,460 | ) | (41,599 | ) | (122,626 | ) | (172,582 | ) | ||||||||
Provision for income taxes | - | - | - | - | ||||||||||||
NET LOSS | $ | (106,460 | ) | $ | (41,599 | ) | $ | (122,626 | ) | $ | (172,582 | ) | ||||
NET LOSS PER COMMON SHARE - Basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||||
Basic and diluted | 41,817,566 | 41,285,881 | 41,479,141 | 41,285,881 | ||||||||||||
REVIV3 PROCARE COMPANY
STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the Nine Month Periods Ended | ||||||||
| February 28, | February 29, | |||||||
| 2021 | 2020 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (122,626 | ) | $ | (172,582 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 7,622 | 7,998 | ||||||
Bad debts expense (recovery) | 574 | (2,342 | ) | |||||
Gain on settlement of debt | (16,313 | ) | - | |||||
Stock based compensation | 66,400 | - | ||||||
Amortization of right of use assets | - | |||||||
Intangibles written off | - | 474 | ||||||
Non cash lease expense | 1,714 | 857 | ||||||
Change in operating assets and liabilities: | ||||||||
Accounts receivable | 89,683 | 22,004 | ||||||
Inventory | (13,399 | ) | (79,899 | ) | ||||
Prepaid expenses and other current assets | (64,513 | ) | 1,703 | |||||
Deposits | - | (1,429 | ) | |||||
Accounts payable and accrued expenses | 236,094 | 31,242 | ||||||
Customer deposits | (111,024 | ) | - | |||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 74,212 | (191,974 | ) | |||||
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FAQ
What were Reviv3 Procare's Q3 2021 revenue results?
Reviv3 Procare reported Q3 2021 revenues of $364,966, reflecting a 131% increase year-over-year.
How did Reviv3 Procare's gross profit perform in Q3 2021?
Gross profit increased by 4% in Q3 2021, totaling $271,475, with a profit margin of 74%.
What was Reviv3 Procare's net loss for Q3 2021?
The net loss for Q3 2021 was $106,460, compared to a loss of $41,499 in the same quarter last year.
What operational challenges did Reviv3 Procare face in Q3 2021?
The company experienced supply chain disruptions that led to a backlog of over $330,000 in orders.
What strategic moves did Reviv3 Procare announce in Q3 2021?
Reviv3 announced its partnership with Coinbase Commerce to accept cryptocurrency payments and revamped its investor relations website.
AXIL Brands, Inc.
OTC:RVIVRVIV RankingsRVIV Latest NewsRVIV Stock Data
79.03M
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Household & Personal Products
Consumer Defensive
United States
Alhambra
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