10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 30, 2018

☐    TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission File Number: 333-220846

Reviv3 Procare Company

(Exact Name of Registrant as Specified in Its Charter)

Delaware	47-4125218
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
9480 Telstar Avenue., Unit 5, El Monte, CA	90211
(Address of Principal Executive Office)	(Zip Code)

(888) 638-8883

(Registrant’s Telephone Number, Including Area Code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
(Do not check if a smaller reporting company)		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐   No ☒

As of January 14, 2019, there were 41,277,547 shares of the registrant’s common stock, $0.0001 par value, outstanding.

REVIV3 PROCARE COMPANY

INDEX

		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5
Item 4.	Controls and Procedures	5
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	9
Item 1A.	Risk Factors	9
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	9
Item 3.	Defaults Upon Senior Securities	9
Item 4.	Mine Safety Disclosures	9
Item 5.	Other Information	9
Item 6.	Exhibits	10
Signatures		11

i

FORWARD-LOOKING STATEMENTS

Except for any historical information contained herein, the matters discussed in this quarterly report on Form 10-Q contain certain “forward-looking statements’’ within the meaning of the federal securities laws. This includes statements regarding our future financial position, economic performance, results of operations, business strategy, budgets, projected costs, plans and objectives of management for future operations, and the information referred to under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

These forward-looking statements generally can be identified by the use of forward-looking terminology, such as “may,’’ “will,’’ “expect,’’ “intend,’’ “estimate,’’ “anticipate,’’ “believe,’’ “continue’’ or similar terminology, although not all forward-looking statements contain these words. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, you are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Although we believe that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Important factors that may cause actual results to differ from projections include, for example:

● the success or failure of management’s efforts to implement our business plan;

● our ability to fund our operating expenses;

● our ability to compete with other companies that have a similar business plan;

● the effect of changing economic conditions impacting our plan of operation; and

● our ability to meet the other risks as may be described in future filings with the Securities and Exchange Commission (the “SEC”).

Unless otherwise required by law, we also disclaim any obligation to update our view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made in this quarterly report on Form 10-Q.

When considering these forward-looking statements, you should keep in mind the cautionary statements in this quarterly report on Form 10-Q and in our other filings with the SEC. We cannot assure you that the forward-looking statements in this quarterly report on Form 10-Q will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may prove to be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time-frame, or at all.

ii

PART 1 – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

REVIV3 PROCARE COMPANY

INDEX TO FINANCIAL STATEMENTS

NOVEMBER 30, 2018

UNAUDITED

CONTENTS

Condensed Balance Sheets - As of November 30, 2018 (Unaudited) and May 31, 2018	F-1
Condensed Statements of Operations for the three months and six months ended November 30, 2018 and 2017 (Unaudited)	F-2
Condensed Statements of Changes in Stockholders' Equity for the three months and six months ended November 30, 2018 and 2017 (Unaudited)	F-3
Condensed Statements of Cash Flows for the six months ended November 30, 2018 and 2017 (Unaudited)	F-4
Condensed Notes to Unaudited Financial Statements	F-5 - F-14

-1-

REVIV3 PROCARE COMPANY

CONDENSED BALANCE SHEETS

	November 30, 2018			May 31,2018
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash	$	382,053		$	227,870
Accounts receivable, net		35,548			29,991
Inventory		320,681			321,537
Advance to suppliers		15,752			3,413
Prepaid expenses and other current assets		8,889			3,505
Total Current Assets		762,923			586,316
OTHER ASSETS:
Property and equipment, net		8,923			8,349
Deposits		14,849			14,849
Total Other Assets		23,772			23,198
TOTAL ASSETS	$	786,695		$	609,514
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	63,468		$	79,759
Customer deposits		52,015			16,200
Due to related party		210			210
Total Current Liabilities		115,693			96,169
Total Liabilities		115,693			96,169
Commitments and contingencies (see Note 8)
STOCKHOLDERS' EQUITY:
Preferred stock, $0.0001 par value; 20,000,000 shares authorized; none issued and outstanding		—			—
Common stock, $0.0001 par value: 100,000,000 shares authorized; 41,277,547 and 40,505,047 shares issued and outstanding as of November 30, 2018 and May 31, 2018, respectively		4,128			4,051
Additional paid-in capital		5,306,384			4,997,461
Accumulated deficit		(4,639,510	)		(4,488,167	)
Total Stockholders' Equity		671,002			513,345
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	786,695		$	609,514

See accompanying notes to these condensed unaudited financial statements.

 F-1

REVIV3 PROCARE COMPANY

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED) 

	For the Three Month Periods Ended						For the Six Month Periods Ended
	November 30,						November 30,
	2018			2017			2018			2017
Sales	$	240,159		$	135,909		$	381,339		$	247,154
Cost of sales		159,616			67,618			223,392			112,123
Gross profit		80,543			68,291			157,947			135,031
OPERATING EXPENSES:
Marketing and selling expenses		32,269			25,257			41,472			37,864
Compensation and related taxes		7,417			6,816			15,086			12,422
Professional and consulting expenses		70,694			88,545			120,180			207,255
General and administrative		28,227			47,956			132,326			103,468
Total Operating Expenses		138,607			168,574			309,064			361,009
LOSS FROM OPERATIONS		(58,064	)		(100,283	)		(151,117	)		(225,978	)
OTHER INCOME (EXPENSE):
Interest income		25			27			46			57
Interest expense and other finance charges		—			(1,042	)		(272	)		(2,106	)
Other Income (Expense), net		25			(1,015	)		(226	)		(2,049	)
LOSS BEFORE PROVISION FOR INCOME TAXES		(58,039	)		(101,298	)		(151,343	)		(228,027	)
Provision for income taxes		—			—			—			—
NET LOSS	$	(58,039	)	$	(101,298	)	$	(151,343	)	$	(228,027	)
NET LOSS PER COMMON SHARE - Basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted		40,649,936			40,262,456			40,576,695			40,011,490

See accompanying notes to these condensed unaudited financial statements.

 F-2

REVIV3 PROCARE COMPANY

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 2018 AND 2017

(UNAUDITED) 

For the Six Months ended November 30, 2018
	Preferred Stock				Common Stock				Additional Paid-in		Accumulated			Total Stockholders'
	Shares		Amount		Shares		Amount		Capital		Deficit			Equity
Balance, May 31, 2018		—	$	—		40,505,047	$	4,051	$	4,997,461	$	(4,488,167	)	$	513,345
Issuance of common stock for cash		—		—		760,000		76		303,924		—			304,000
Shares to be issued for services		—		—		12,500		1		4,999		—			5,000
Net loss for the six months ended November 30, 2018		—		—		—		—		—		(151,343	)		(151,343	)
Balance, November 30, 2018 (Unaudited)		—	$	—		41,277,547	$	4,128	$	5,306,384	$	(4,639,510	)	$	671,002
For the Three Months ended November 30, 2018
		Preferred Stock				Common Stock				Additional Paid-in		Accumulated			Total Stockholders'
		Shares		Amount		Shares		Amount		Capital		Deficit			Equity
Balance, August 31, 2018 (Unaudited)		—		—		40,505,047	$	4,051	$	4,997,461	$	(4,581,471	)	$	420,041
Issuance of common stock for cash		—		—		760,000		76		303,924		—			304,000
Shares to be issued for services		—		—		12,500		1		4,999		—			5,000
Net loss for the three months ended November 30, 2018		—		—		—		—		—		(58,039	)		(58,039	)
Balance, November 30, 2018 (Unaudited)		—	$	—		41,277,547	$	4,128	$	5,306,384	$	(4,639,510	)	$	671,002

For the Six Months ended November 30, 2017
	Preferred Stock				Common Stock				Additional Paid-in		Accumulated			Total Stockholders'
	Shares		Amount		Shares		Amount		Capital		Deficit			Equity
Balance, May 31, 2017		—	$	—		39,679,047	$	3,968	$	4,694,144	$	(4,145,628	)	$	552,484
Issuance of common stock for services		—		—		80,000		8		19,992		—			20,000
Issuance of common stock for cash		—		—		746,000		74		283,326		—			283,400
Net loss for the six months ended November 30, 2017		—		—		—		—		—		(228,027	)		(228,027	)
Balance, November 30, 2017 (Unaudited)		—	$	—		40,505,047	$	4,050	$	4,997,462	$	(4,373,655	)	$	627,857
For the Three Months ended November 30, 2017
		Preferred Stock				Common Stock				Additional Paid-in		Accumulated			Total Stockholders'
		Shares		Amount		Shares		Amount		Capital		Deficit			Equity
Balance, August 31, 2017 (Unaudited)		—		—		39,759,047	$	3,976	$	4,714,136	$	(4,272,357	)	$	445,755
Issuance of common stock for cash		—		—		746,000		74		283,326		—			283,400
Net loss for the three months ended November 30, 2017		—		—		—		—		—		(101,298	)		(101,298	)
Balance, November 30, 2017 (Unaudited)		—		—		40,505,047	$	4,050	$	4,997,462	$	(4,373,655	)	$	627,857

See accompanying notes to these condensed unaudited financial statements.

 F-3

REVIV3 PROCARE COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED) 

	For the Six Month Periods Ended
	November 30,
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(151,343	)	$	(228,027	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		2,043			1,204
Bad debts		297			1,204
Stock based compensation		5,000			30,973
Change in operating assets and liabilities:
Accounts receivable		(5,854	)		14,617
Inventory		856			(234,471	)
Advance to suppliers		(12,339	)		(5,649	)
Prepaid expenses and other current assets		(5,384	)		3,000
Accounts payable and accrued expenses		(16,291	)		40,246
Customer deposits		35,815			24,768
NET CASH USED IN OPERATING ACTIVITIES		(147,200	)		(352,135	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(2,617	)		(468	)
NET CASH USED IN INVESTING ACTIVITIES		(2,617	)		(468	)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock for cash		304,000			283,400
Advances from a related party		—			210
NET CASH PROVIDED BY FINANCING ACTIVITIES		304,000			283,610
NET INCREASE (DECREASE) IN CASH		154,183			(68,993	)
CASH - Beginning of year		227,870			416,873
CASH - End of year	$	382,053		$	347,880
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	—		$	—
Income taxes	$	—		$	—
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of common stock for prepaid services	$	—		$	20,000

See accompanying notes to these condensed unaudited financial statements.

 F-4

REVIV3 PROCARE COMPANY

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. 

 F-5

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.

 F-6

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.

 F-7

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.

 F-8

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.

 F-9

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.

 F-10

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. 

 F-11

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.

 F-12

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.

 F-13

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.

 F-14

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of operations should be read in conjunction with, and is qualified in its entirety by, the condensed financial statements and notes thereto included in Item 1 in this Quarterly Report on Form 10-Q. 

Our Management’s Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking.  Forward-looking statements are, by their very nature, uncertain and risky.  Forward-looking statements are often identified by words like: “believe”, “expect”, “estimate”, “anticipate”, “intend”, “project” and similar expressions, or words that, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this Quarterly Report on Form 10-Q. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions. These risks and uncertainties include international, national, and local general economic and market conditions; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; change in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; the risk of foreign currency exchange rate; and other risks that might be detailed from time to time in our filing with the Securities and Exchange Commission. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q.

Although the forward-looking statements in this Quarterly Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in herein and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

Prospective investors should read the following discussion and analysis of our financial condition and results of operations together with our condensed financial statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. See “Cautionary Note Regarding Forward-Looking Statements.”

Overview

Reviv3 Procare Company is engaged in the manufacturing, marketing, sale and distribution of professional quality hair and skin care products under various trademarks and brands. We have adopted and used the trademarks of our products for distribution throughout the United States, Canada, Europe, and Asia pursuant to the terms of 11 exclusive distribution agreements with various parties throughout our targeted market. Our manufacturing operations are outsourced and fulfilled by our co-packers and manufacturing partners. Currently, we produce seven (7) products with 13 separate SKU’s and look to expand our product lines significantly over the next 12 months.

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JOBS Act

On April 5, 2012, the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, was enacted. Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have irrevocably elected not to avail ourselves of this extended transition period and, as a result, we will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies.

We are in the process of evaluating the benefits of relying on other exemptions and reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, as an “emerging growth company,” we intend to rely on certain of these exemptions from, without limitation, (i) providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act and (ii) complying with any requirement that may be adopted by the Public Company Accounting Oversight Board (PCAOB) regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements, known as the auditor discussion and analysis. We will remain an “emerging growth company” until the earliest of (a) the last day of our fiscal year following the fifth anniversary of the closing of this offering, (b) the last day of the first fiscal year in which our annual gross revenues exceed $1.07 billion, (c) the last day of our fiscal year in which we are deemed to be a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, or Exchange Act (which would occur if the market value of our equity securities that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter), or (d) the date on which we have issued more than $1 billion in nonconvertible debt during the preceding three-year period.

Results of Operations

For the Three and Six months ended November 30, 2018 Compared to the Three Months and Six Months ended November 30, 2017

Revenues for the three months periods ended November 30, 2018 and 2017 were $240,159 and $135,909, respectively. Revenues for the three months period ended November 30, 2018 increased by $104,250 or 77%, as compared to the same comparable period in 2017. Revenues for the six months periods ended November 30, 2018 and 2017 were $381,339 and $247,154, respectively. Revenues for the six months period ended November 30, 2018 increased by $134,185 or 54%, as compared to the same comparable period in 2017. Revenues increased in the 2018 respective periods compared to the same comparable periods in 2017 primarily due to us receiving a significantly large sales order from a customer in November 2018 for promoting our products during the upcoming holiday season, and a general increase in sales to our existing customers due to a wider name and brand recognition of our products.

Cost of sales consisted primarily of cost of product and freight in costs. Cost of sales for the three months ended November 30, 2018 and 2017 was $159,616 and $67,618, respectively. Cost of sales as a percentage of sales for the three months ended November 30, 2018 and 2017 was 66% and 50%, respectively. Cost of sales for the three months ended November 30, 2018 increased by $91,998 or 136% over the comparable period in 2017. Cost of sales for the six months ended November 30, 2018 and 2017 was $223,392 and $112,123, respectively. Cost of sales as a percentage of sales for the six months ended November 30, 2018 and 2017 was 59% and 45%, respectively. Cost of sales for the six months ended increased by $111,269 or 99% over the comparable period in 2017. Cost of sales increased in 2018 for the respective periods as compared to the same comparable periods in 2017 primarily due to the increase in sales, increase in freight cost, and selling promotional items to customers for the upcoming holidays season at a lower margin to gain market share.

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Gross profit for the three months ended November 30, 2018 and 2017 was $80,543 and $68,291, respectively. Gross profit as a percentage of revenues for the three months ended November 30, 2018 was 34% as compared to 50% for the same comparable period in 2017. Gross profit for the six months ended November 30, 2018 and 2017 was $157,947 and $135,031, respectively. Gross profit as a percentage of revenues for the six months ended November 30, 2018 was 41% as compared to 55% for the same comparable period in 2017. The decrease in gross profit was primarily attributable to the increase in cost of sales due to selling promotional products at a lower margin to a customer.

Operating expenses consisted of marketing and selling expenses, professional and consulting fees, compensation to employees and other general and administrative expenses. Operating expenses for the three months ended November 30, 2018 and 2017 were $138,607 and $168,574, respectively. Operating expenses as a percentage of revenues for the three months ended November 30, 2018 and 2017 were 58% and 124% respectively. Operating expenses for the three months ended November 30, 2018 decreased by $29,967 or 18% as compared to the comparable period in 2017. Operating expenses for the six months ended November 30, 2018 and 2017 were $309,064 and $361,009, respectively. Operating expenses as a percentage of revenues for the six months ended November 30, 2018 and 2017 were 81% and 146% respectively. Operating expenses for the six months ended November 30, 2018 decreased by $51,945 or 14% as compared to the comparable period in 2017. The decrease in operating expenses is attributable primarily due to the reduction in independent contractors and their fees, reduction in legal and professional fees offset by increase in the general and administrative expenses relating to rent, insurance, and other general and administrative expenses during the respective periods in 2018 compared to the same comparable periods in 2017.

Other income (expense) consisted of interest income and interest expense and other finance charges incurred by us. Interest income for the three months ended November 30, 2018 and 2017 was $25 and $27, respectively. Interest expense and other finance changes for the three months ended November 30, 2018 and 2017 were $0 and $1,042, respectively. Interest income for the six months ended November 30, 2018 and 2017 was $46 and $57, respectively. Interest expenses and other finance charges for the six months ended November 30, 2018 and 2017 were $272 and $2,106, respectively, primarily due to interest expense related to business credit card financing charges.

As a result of the above, we reported a net loss of $58,039 and $151,343 for the three months and nine months periods ended November 30, 2018.

Liquidity and Capital Resources

We are an emerging growth company and currently engaged in our initial product sales and development. We have an accumulated deficit and have incurred operating losses since our inception and expect losses to continue during fiscal year 2018. This raises substantial doubt about our ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Cash Flows

Operating Activities

Net cash flows used in operating activities for the six months ended November 30, 2018 was $147,200, attributable to a net loss of $151,343, depreciation of $2,043, bad debts of $297, stock based compensation of $5,000 and net change in operating assets and liabilities of $3,197 primarily due to increase in accounts receivable and customer deposits, and decrease in inventory, advances to suppliers, prepaid expenses and other current assets and accounts payable and accrued expenses. Net cash flows used in operating activities for the six months ended November 30, 2017 was $352,135, attributable to a net loss of $228,027, depreciation and bad debts of $1,204 each, stock based compensation of $30,973, and net decrease in operating assets and liabilities of $157,489, primarily due to decrease in accounts receivable, prepaid expenses and other current assets and advance to suppliers, and increase in inventory, accounts payable and accrued expenses and customer deposits.

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Investing Activities

Net cash flows used by investing activities for the six months ended November 30, 2018 and 2017 was $2,617 and $468, respectively. We purchased property and equipment of $2,617 and $468 during the six months periods ended November 30, 2018 and 2017, respectively.

Financing Activities

Net cash flows provided by financing activities for the six months ended November 30, 2018 and 2017 was $304,000 and $283,610, respectively. We raised $304,000 and $283,400 in capital funds through private placement offerings during the six months ended November 30, 2018 and 2017, respectively. In addition, we received advances from a related party of $210 during the six months ended November 30, 2017.

As a result of the activities described above, we recorded a net increase of cash of $154,183 during the six months ended November 30, 2018, and net decrease of cash of $68,993 for the six months ended November 30, 2017.

We currently have no external sources of liquidity, such as arrangements with credit institutions or off-balance sheet arrangements that will have or are reasonably likely to have a current or future effect on our financial condition or immediate access to capital.

We are dependent on our product sales to fund our operations and may require the sale of additional common stock to expand our operations. Our officers and directors have made no written commitments with respect to providing a source of liquidity in the form of cash advances, loans, and/or financial guarantees.

If we are unable to raise the funds required to fund our operations, we will seek alternative financing through other means, such as borrowings from institutions or private individuals. There can be no assurance that we will be able to raise the capital we need for our operations from the sale of our securities. We have not located any sources for these funds and may not be able to do so in the future. We expect that we will seek additional financing in the future. However, we may not be able to obtain additional capital or generate sufficient revenues to fund our operations. If we are unsuccessful at raising sufficient funds, for whatever reason, to fund our operations, we may be forced to cease operations. If we fail to raise funds, we expect that we will be required to seek protection from creditors under applicable bankruptcy laws.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results or operations, liquidity, capital expenditures or capital resources that is material to investors.

Critical Accounting Policies 

The preparation of condensed financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions affect the reported amounts of expenses during the reporting period. On an ongoing basis, we evaluate estimates and assumptions based upon historical experience and various other factors and circumstances. We believe our estimates and assumptions are reasonable in the circumstances; however, actual results may differ from these estimates under different future conditions.

-5-

We believe that the estimates and assumptions that are most important to the portrayal of our financial condition and results of operations, in that they require the most difficult, subjective or complex judgments, form the basis for the accounting policies deemed to be most critical to us. These critical accounting policies relate to revenue recognition, impairment of intangible assets and long-lived assets, inventory, stock compensation, and evaluation of contingencies. We believe estimates and assumptions related to these critical accounting policies are appropriate under the circumstances; however, should future events or occurrences result in unanticipated consequences, there could be a material impact on our future financial condition or results of operations.

Significant Accounting Policies

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. 

Accounts receivable and allowance for doubtful accounts

Our policy of providing on allowance for doubtful accounts is based on our best estimate of the amount of probable credit losses in its existing accounts receivable.  We periodically review our 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.

Inventory

We value 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. We reduce 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. We evaluate our current level of inventory considering historical sales and other factors and, based on this evaluation, classify 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.

Revenue recognition

Effective June 1, 2018, we 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 our 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. We sell a variety of hair and skin care products. We recognize 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 our products is typically recorded as a reduction in revenues.

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Recent Accounting Pronouncements

Please refer to Note 2 – “Summary of Significant Accounting Policies” in the notes to the unaudited condensed financial statements included in this Form 10-Q for information on recent accounting pronouncements and the expected impact on our unaudited condensed financial statements.

Financial Instruments

Fair Value

Our financial instruments consist of cash, accounts receivable, accounts payable and accrued liabilities, and customer deposits. There are no significant differences between the carrying amounts of the items reported on the statements of financial position and their estimated fair values. Our risk exposures and their impact on our financial instruments are summarized below.

Credit Risk

We are exposed to credit risk on the accounts receivable from customers. In order to reduce our credit risk, we have adopted credit policies which include the regular review of outstanding accounts receivable. We do not have significant exposure to any individual clients or counterparty. At November 30, 2018 and May 31, 2018, management considered our credit risk in relation to such financial assets to be low and accordingly no allowance for loss has been recorded. Generally, the carrying amount on the statements of financial position of our financial assets exposed to credit risk, net of any applicable provisions for losses, represents the maximum amount exposed to credit risk.

Liquidity Risk

We are exposed to liquidity risk. Liquidity risk is the exposure of our Company to the risk of not being able to meet our financial obligations as they fall due. Our approach to managing liquidity risk is to ensure that we will have sufficient liquidity to meet liabilities when due. Our future liquidity is dependent on factors such as the ability to generate cash from operations and to raise money through debt or equity financing.

Foreign Currency Risk

Foreign exchange risk arises from the changes in foreign exchange rates that may affect the fair value or future cash flows of our financial assets or liabilities.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for smaller reporting companies.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, has reviewed and evaluated the effectiveness of the Company’s disclosure controls and procedures as of November 30, 2018. Based on such review and evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of November 30, 2018, the disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act (a) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (b) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or 15d-15 of the Exchange Act that occurred during the fiscal quarter ended November 30, 2018 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

-8-

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not a party to any material litigation, nor, to the knowledge of management, is any litigation threatened against us that may materially affect us.

ITEM 1A. RISK FACTORS

As a smaller reporting company, we are not required to provide risk factors. Please refer to our registration statement under Form S-1 for more information regarding risks related to the securities of the Company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On October 17, 2018, the Company sold 250,000 shares of common stock to an investor and received cash proceeds of $100,000.

On November 26, 2018, the Company sold 510,000 shares of common stock to 17 investors and received cash proceeds of $204,000.

On November 30, 2018, the Company issued 12,500 shares of common stock to a consultant for services valued at $5,000.

All of the securities set forth above were sold pursuant to exemptions from registration under Section 4(2) of the Securities Act of 1933, as amended, as transactions by an issuer not involving any public offering. No general advertising or solicitation was used. And the investors were purchasing the common stock for investment purposes only, without a view to resale. All issued securities were affixed with appropriate legends restricting sales and transfers.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

(a) Not applicable.

(b) During the quarter ended November 30, 2018, there have not been any material changes to the procedures by which security holders may recommend nominees to the Board of Directors.

-9-

ITEM 6. EXHIBITS

			Incorporated by reference
Exhibit		Filed		Period		Filing
Number	Exhibit Description	herewith	Form	Ending	Exhibit	date
3.1	Articles of Incorporation filed with the state of Delaware on May 21, 2015		S-1	05/31/2017	3.1	10/6/2017
3.2	Bylaws		S-1	05/31/2017	3.2	10/6/2017
3.3	Certificate of Amendment filed in the state of Delaware on June 9, 2015		S-1	05/31/2017	4.2	10/6/2017
10.1	Contribution Agreement between Reviv3 Procare, LLC and Reviv3 Procare Company, dated June 1, 2015		S-1	05/31/2017	10.1	10/6/2017
10.2	Lease Agreement between Riviv3 Procare Company and the Realty Association Fund VIII, L.P. dated September 28, 2016		S-1/A	5/31/2017	10.2	11/17/2017
31.1	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	X		11/30/2018
31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	X		11/30/2018
32.1	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	X		11/30/2018
101.INS	XBRL Instance	X		11/30/2018
101.SCH	XBRL Taxonomy Extension Schema	X		11/30/2018
101.CAL	XBRL Taxonomy Extension Calculation	X		11/30/2018
101.DEF	XBRL Taxonomy Extension Definition	X		11/30/2018
101.LAB	XBRL Taxonomy Extension Labels	X		11/30/2018
101.PRE	XBRL Taxonomy Extension Presentation	X		11/30/2018

-10-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

REVIV3 PROCARE COMPANY

Date: January 14, 2019

By: /s/Jeff Toghraie

____________________________

Jeff Toghraie

Chief Executive Officer and

Chief Financial Officer

(Principal Executive Officer, Principal

Accounting Officer and Principal

Financial Officer)

-11-

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Jeff Toghraie, certify that:

1.	I have reviewed this report on Form 10-Q of Reviv3 Procare Company;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a.	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
c.	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Jeff Toghraie

Jeff Toghraie

Chief Executive Officer

(Principal Executive Officer)

January 14, 2019

EX-31.2

  EXHIBIT 31.2

CERTIFICATION

I, Jeff Toghraie, certify that:

1.	I have reviewed this report on Form 10-Q of Reviv3 Procare Company;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a.	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
c.	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Jeff Togharie

Jeff Togharie

Chief Financial Officer

(Principal Accounting Officer)

January 14, 2019

EX-32.1

  EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the report of Reviv3 Procare Company (the “Company”) on Form 10-Q for the period ending November 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacities and on the dates indicated below, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Jeff Togharie

Jeff Togharie

Chief Executive Officer and Chief Financial Officer

(Principal Executive Officer, Principal Accounting Officer, and Principal Financial Officer)

January 14, 2019

XML

Document and Entity Information - shares	6 Months Ended
	Nov. 30, 2018	Jan. 14, 2019
Document And Entity Information
Entity Registrant Name	Reviv3 Procare Co
Entity Central Index Key	0001718500
Amendment Flag	false
Current Fiscal Year End Date	--05-31
Document Type	10-Q
Document Period End Date	Nov. 30, 2018
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		41,277,547
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	false

XML

CONDENSED BALANCE SHEETS (Unaudited) - USD ($)	Nov. 30, 2018	May 31, 2018
CURRENT ASSETS:
Cash	$ 382,053	$ 227,870
Accounts receivable, net	35,548	29,991
Inventory	320,681	321,537
Advance to suppliers	15,752	3,413
Prepaid expenses and other current assets	8,889	3,505
Total Current Assets	762,923	586,316
OTHER ASSETS:
Property and equipment, net	8,923	8,349
Deposits	14,849	14,849
Total Other Assets	23,772	23,198
TOTAL ASSETS	786,695	609,514
CURRENT LIABILITIES:
Accounts payable and accrued expenses	63,468	79,759
Customer deposits	52,015	16,200
Due to related party	210	210
Total Current Liabilities	115,693	96,169
Total Liabilities	115,693	96,169
Commitments and contingencies (see Note 8)
STOCKHOLDERS' EQUITY:
Preferred stock, $0.0001 par value; 20,000,000 shares authorized; none issued and outstanding
Common stock, $0.0001 par value: 100,000,000 shares authorized; 41,277,547 and 40,505,047 shares issued and outstanding as of November 30, 2018 and May 31, 2018, respectively	4,128	4,051
Additional paid-in capital	5,306,384	4,997,461
Accumulated deficit	(4,639,510)	(4,488,167)
Total Stockholders' Equity	671,002	513,345
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 786,695	$ 609,514

XML

CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Nov. 30, 2018	May 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	41,277,547	40,505,047
Common stock, shares outstanding	41,277,547	40,505,047

XML

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017
Income Statement [Abstract]
Net revenues	$ 240,159	$ 135,909	$ 381,339	$ 247,154
Cost of sales	159,616	67,618	223,392	112,123
Gross profit	80,543	68,291	157,947	135,031
OPERATING EXPENSES:
Marketing and selling expenses	32,269	25,257	41,472	37,864
Compensation and related taxes	7,417	6,816	15,086	12,422
Professional and consulting expenses	70,694	88,545	120,180	207,255
General and administrative	28,227	47,956	132,326	103,468
Total Operating Expenses	138,607	168,574	309,064	361,009
LOSS FROM OPERATIONS	(58,064)	(100,283)	(151,117)	(225,978)
OTHER INCOME (EXPENSE):
Interest income	25	27	46	57
Interest expense and other finance charges		(1,042)	(272)	(2,106)
Other Income (Expense), Net	25	(1,015)	(226)	(2,049)
LOSS BEFORE PROVISION FOR INCOME TAXES	(58,039)	(101,298)	(151,343)	(228,027)
Provision for income taxes
NET LOSS	$ (58,039)	$ (101,298)	$ (151,343)	$ (228,027)
NET LOSS PER COMMON SHARE - Basic and diluted	$ 0.00	$ 0.00	$ 0.00	$ (0.01)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted	40,649,936	40,262,456	40,576,695	40,011,490

XML

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance at May. 31, 2017		$ 3,968	$ 4,694,144	$ (4,145,628)	$ 552,484
Beginning Balance, Shares at May. 31, 2017		39,679,047
Issuance of common stock for cash		$ 8	19,992		20,000
Issuance of common stock for cash, Shares		80,000
Shares to be issued for services		$ 74	283,326		283,400
Shares to be issued for services, Shares		746,000
Net Loss for the Period				(228,027)	(228,027)
Ending Balance at Nov. 30, 2017		$ 4,050	4,997,462	(4,373,655)	627,857
Ending Balance, Shares at Nov. 30, 2017		40,505,047
Beginning Balance at Aug. 31, 2017		$ 3,976	4,714,136	(4,272,357)	445,755
Beginning Balance, Shares at Aug. 31, 2017		39,759,047
Issuance of common stock for cash		$ 74	283,326		283,400
Issuance of common stock for cash, Shares		746,000
Net Loss for the Period				(101,298)	(101,298)
Ending Balance at Nov. 30, 2017		$ 4,050	4,997,462	(4,373,655)	627,857
Ending Balance, Shares at Nov. 30, 2017		40,505,047
Beginning Balance at May. 31, 2018		$ 4,051	4,997,461	(4,488,167)	513,345
Beginning Balance, Shares at May. 31, 2018		40,505,047
Issuance of common stock for cash		$ 76	303,924		304,000
Issuance of common stock for cash, Shares		760,000
Shares to be issued for services		$ 1	4,999		5,000
Shares to be issued for services, Shares		12,500
Net Loss for the Period				(151,343)	(151,343)
Ending Balance at Nov. 30, 2018		$ 4,128	5,306,384	(4,639,510)	671,002
Ending Balance, Shares at Nov. 30, 2018		41,277,547
Beginning Balance at Aug. 31, 2018		$ 4,051	4,997,461	(4,581,471)	420,041
Beginning Balance, Shares at Aug. 31, 2018		40,505,047
Issuance of common stock for cash		$ 76	303,924		304,000
Issuance of common stock for cash, Shares		760,000
Shares to be issued for services		$ 1	4,999		5,000
Shares to be issued for services, Shares		12,500
Net Loss for the Period				(58,039)	(58,039)
Ending Balance at Nov. 30, 2018		$ 4,128	$ 5,306,384	$ (4,639,510)	$ 671,002
Ending Balance, Shares at Nov. 30, 2018		41,277,547

XML

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (151,343)	$ (228,027)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	2,043	1,204
Bad debts	297	1,204
Stock based compensation	5,000	30,973
Change in operating assets and liabilities:
Accounts Receivable	(5,854)	14,617
Inventory	856	(234,471)
Advance to suppliers	(12,339)	(5,649)
Prepaid expenses and other current assets	(5,384)	3,000
Accounts payable and accrued expenses	(16,291)	40,246
Customer deposits	35,815	24,768
NET CASH USED IN OPERATING ACTIVITIES	(147,200)	(352,135)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(2,617)	(468)
NET CASH USED IN INVESTING ACTIVITIES	(2,617)	(468)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock for cash	304,000	283,400
Advances from a related party		210
NET CASH PROVIDED BY FINANCING ACTIVITIES	304,000	283,610
NET (DECREASE) INCREASE IN CASH	154,183	(68,993)
CASH - Beginning of period	227,870	416,873
CASH - End of period	382,053	347,880
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of common stock for prepaid services		$ 20,000

XML

Organization

6 Months Ended

Nov. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

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.

XML

Basis of Presentation, Going Concern and Summary of Significant Accounting Policies

6 Months Ended

Nov. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation, Going Concern and Summary of Significant Accounting Policies

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. 

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.

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.

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.

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.

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.

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Accounts Receivable

6 Months Ended

Nov. 30, 2018

Receivables [Abstract]

Accounts Receivable

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.

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Inventory

6 Months Ended

Nov. 30, 2018

Inventory Disclosure [Abstract]

Inventory

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.

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Property and Equipment

6 Months Ended

Nov. 30, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

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. 

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Accounts Payable and Accrued Expenses

6 Months Ended

Nov. 30, 2018

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

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

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Stockholders' Equity

6 Months Ended

Nov. 30, 2018

Equity [Abstract]

Stockholders' Equity

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.

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Commitments and Contingencies

6 Months Ended

Nov. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

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).

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Related Party Transactions

6 Months Ended

Nov. 30, 2018

Related Party Transactions [Abstract]

Related Party Transactions

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.

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Concentrations

6 Months Ended

Nov. 30, 2018

Risks and Uncertainties [Abstract]

Concentrations

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.

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.

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Basis of Presentation, Going Concern and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Nov. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation

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

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

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. 

Cash and cash equivalents

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

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

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

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

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

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.

Revenue recognition

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

Cost of Sales

The primary components of cost of sales includes the cost of the product and freight-in costs.

Shipping and Handling 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

Marketing, selling and advertising costs are expensed as incurred.

Customer Deposits

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.

Fair value measurements and fair value of financial instruments

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

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.

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

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

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.

Net loss per share of common stock

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

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.

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Accounts Receivable (Tables)

6 Months Ended

Nov. 30, 2018

Receivables [Abstract]

Schedule of 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

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Inventory (Tables)

6 Months Ended

Nov. 30, 2018

Inventory Disclosure [Abstract]

Schedule of 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

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Property and Equipment (Tables)

6 Months Ended

Nov. 30, 2018

Property, Plant and Equipment [Abstract]

Schedule of 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

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Accounts Payable and Accrued Expenses (Tables)

6 Months Ended

Nov. 30, 2018

Payables and Accruals [Abstract]

Schedule of 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

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Commitments and Contingencies (Tables)

6 Months Ended

Nov. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum rental payments required under operating lease

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	$	—	$	—

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Concentrations (Tables)

6 Months Ended

Nov. 30, 2018

Disclosure Concentrations Tables Abstract

Schedule of Sales by Product Line

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	%

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Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017	May 31, 2018
Accounting Policies [Abstract]
Net loss	$ 58,039	$ 101,298	$ 151,343	$ 228,027
Net cash used in operations			147,200	352,135
Accumulated deficit	4,639,510		4,639,510		$ 4,488,167
Prepaid expenses and other current assets	8,889		8,889		3,505
Advances to major supplier	15,752		15,752		$ 3,413
Shipping costs	$ 9,154	$ 10,625	$ 18,702	$ 16,122
Potentially dilutive securities outstanding, shares

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Accounts Receivable (Details) - USD ($)	Nov. 30, 2018	May 31, 2018
Receivables [Abstract]
Accounts receivable	$ 38,587	$ 32,733
Less: Allowance for bad debts	(3,039)	(2,742)
Accounts receivable, net	$ 35,548	$ 29,991

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Accounts Receivable (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017
Accounts Receivable (Textual)
Bad debt expense	$ 297		$ 297	$ 1,204

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Inventory (Details) - USD ($)	Nov. 30, 2018	May 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 55,327	$ 113,134
Raw materials	265,354	208,403
Inventory, net	$ 320,681	$ 321,537

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Inventory (Details Narrative) - USD ($)	6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	May 31, 2018
Inventory Disclosure [Abstract]
Inventory held at third party locations	$ 35,850		$ 64,485
Write Down of Inventory for Obsolescence which is included in Cost of Sales	$ 636

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Property and Equipment (Details) - USD ($)	6 Months Ended
	Nov. 30, 2018	May 31, 2018
Furniture and fixtures	$ 5,759	$ 5,759
Computer equipment	10,112	7,495
Less: Accumulated depreciation	(6,948)	(4,905)
Property and equipment net	$ 8,923	$ 8,349
Furniture and Fixtures [Member]
Estimated life	5 years
Computer Equipment [Member]
Estimated life	3 years

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Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017
Property and Equipment (Textual)
Depreciation expense	$ 1,103	$ 608	$ 2,043	$ 1,204

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Accounts Payable and Accrued Expenses (Details) - USD ($)	Nov. 30, 2018	May 31, 2018
Payables and Accruals [Abstract]
Trade Payables	$ 20,256	$ 41,320
Accrued Freight	22,716	22,532
Credit Cards	19,953	15,521
Other	543	386
Accounts Payable and Accrued Expenses, net	$ 63,468	$ 79,759

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Stockholders' Equity (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017	May 31, 2018
Stockholders' Equity (Textual)
Shares of common stock		100,000,000		100,000,000		100,000,000
Shares of common stock, par value		$ 0.0001		$ 0.0001		$ 0.0001
Shares of preferred stock		20,000,000		20,000,000		20,000,000
Shares of preferred stock, par value		$ 0.0001		$ 0.0001		$ 0.0001
Proceeds of common stock				$ 304,000	$ 283,400
Stock issued an aggregate of common stock value		$ 5,000		5,000	283,400
Stock based compensation				$ 5,000	$ 30,973
Common Stock [Member]
Stockholders' Equity (Textual)
Shares issued for common stock		760,000	746,000	760,000	80,000
Stock issued an aggregate of common stock value		$ 1		$ 1	$ 74
Common Stock [Member] | Consulting Agreements [Member]
Stockholders' Equity (Textual)
Shares issued for common stock	80,000
Share price	$ 0.25
Stock issued an aggregate of common stock value	$ 20,000
Minimum [Member] | Consulting Agreements [Member]
Stockholders' Equity (Textual)
Consulting agreements term	2 months
Stock based compensation	$ 20,000
Maximum [Member] | Consulting Agreements [Member]
Stockholders' Equity (Textual)
Consulting agreements term	6 months

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Commitments and Contingencies (Details)	May 31, 2018 USD ($)
Schedule of Future minimum rental payments for operating lease
1 Year	$ 79,528
2-3 Year
Thereafter
Total	$ 79,528

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Commitments and Contingencies (Details Narrative) - USD ($)	6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Commitments and Contingencies (Textual)
Lease agreement, description	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.
Lease agreement period	37 months
Lease expiration date	Oct. 31, 2019
Monthly base rent	$ 6,782
Lease rent expense	$ 47,537	$ 36,266

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Related Party Transactions (Details Narrative) - USD ($)	Nov. 30, 2018	May 31, 2018
Related Party Transactions (Textual)
Amount payable to officers	$ 210	$ 210

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Concentrations (Details Narrative)	6 Months Ended		12 Months Ended
	Nov. 30, 2018 USD ($) Customer Vendor	Nov. 30, 2017 USD ($) Vendor	May 31, 2017 Customer	May 31, 2018 USD ($)
Concentrations (Textual)
Amount of FDIC				$ 250,000
Held in cash	$ 167,000			$ 0
Sales Revenue, Net [Member]
Concentrations (Textual)
Number of customers	2	4
Concentration risk percentage	45.00%	67.00%
Sales Revenue, Net [Member] | UNITED STATES [Member]
Concentrations (Textual)
Concentration risk percentage	37.00%	47.00%
Sales Revenue, Net [Member] | CANADA [Member]
Concentrations (Textual)
Concentration risk percentage	23.00%	33.00%
Sales Revenue, Net [Member] | Italy [Member]
Concentrations (Textual)
Concentration risk percentage	9.00%	14.00%
Sales Revenue, Net [Member] | Hong Kong [Member]
Concentrations (Textual)
Concentration risk percentage	5.00%
Sales Revenue, Net [Member] | United Kingdom [Member]
Concentrations (Textual)
Concentration risk percentage	1.00%
Sales Revenue, Net [Member] | Product [Member]
Concentrations (Textual)
Concentration risk percentage	100.00%	10.00%
Sales Revenue, Net [Member] | Hair Shampoo [Member]
Concentrations (Textual)
Concentration risk percentage		23.00%
Sales Revenue, Net [Member] | Hair Shampoo And Conditioner [Member]
Concentrations (Textual)
Concentration risk percentage		17.00%
Sales Revenue, Net [Member] | Hair Treatment And Repair Products [Member]
Concentrations (Textual)
Concentration risk percentage		26.00%
Sales Revenue, Net [Member] | Introductory Kit [Member]
Concentrations (Textual)
Concentration risk percentage	21.00%	31.00%
Sales Revenue, Net [Member] | Customer One [Member]
Concentrations (Textual)
Concentration risk percentage	30.00%	23.00%
Sales Revenue, Net [Member] | Customer Two [Member]
Concentrations (Textual)
Concentration risk percentage	15.00%	17.00%
Sales Revenue, Net [Member] | Customer Three [Member]
Concentrations (Textual)
Concentration risk percentage		14.00%
Sales Revenue, Net [Member] | Customer Four [Member]
Concentrations (Textual)
Concentration risk percentage		13.00%
Accounts Receivable [Member]
Concentrations (Textual)
Number of customers | Customer	3		3
Concentration risk percentage	77.00%		60.00%
Accounts Receivable [Member] | Customer One [Member]
Concentrations (Textual)
Concentration risk percentage	26.00%		34.00%
Accounts Receivable [Member] | Customer Two [Member]
Concentrations (Textual)
Concentration risk percentage	32.00%		14.00%
Accounts Receivable [Member] | Customer Three [Member]
Concentrations (Textual)
Concentration risk percentage	19.00%		12.00%
Accounts Receivable [Member] | Customer Four [Member]
Concentrations (Textual)
Concentration risk percentage
Vendors [Member]
Concentrations (Textual)
Number of vendors | Vendor	3	3
Purchased inventories and products	$ 241,220	$ 239,000
Percentage of purchases	75.00%	85.00%

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Concentrations (Details) - Sales Revenue, Net [Member]	6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Concentration risk percentage	45.00%	67.00%
Prep Cleanser And Shampoo [Member]
Concentration risk percentage	18.00%
Moisturizer And Conditioner [Member]
Concentration risk percentage	13.00%
Treatment Spray [Member]
Concentration risk percentage	6.00%
Cellular Complex [Member]
Concentration risk percentage	6.00%
Hair Masque [Member]
Concentration risk percentage	1.00%
Thickening Spray [Member]
Concentration risk percentage	2.00%
Introductory Kit [Member]
Concentration risk percentage	21.00%	31.00%
Fragrance Shampoo And Conditioner [Member]
Concentration risk percentage	15.00%
Thermal Protect [Member]
Concentration risk percentage	4.00%
Thickening Spray [Member]
Concentration risk percentage	4.00%
Others [Member]
Concentration risk percentage	10.00%
Product [Member]
Concentration risk percentage	100.00%	10.00%