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 February 28, 2019

☐    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	☒
		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 April 10, 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	8
Item 4.	Controls and Procedures	8
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

FEBRUARY 28, 2019

(UNAUDITED)

CONTENTS

Condensed Balance Sheets - As of February 28, 2019 (Unaudited) and May 31, 2018	F-1
Condensed Statements of Operations for the three months and nine months ended February 28, 2019 and 2018 (Unaudited)	F-2
Condensed Statements of Cash Flows for the nine months ended February 28, 2019 and 2018 (Unaudited)	F-3
Condensed Statements of Changes in Stockholders' Equity for the three months and nine months ended February 28, 2019 and 2018 (Unaudited)	F-4
Condensed Notes to Unaudited Financial Statements	F-5 - F-14

-1-

REVIV3 PROCARE COMPANY

CONDENSED BALANCE SHEETS

	February 28, 2019			May 31, 2018
ASSETS	(Unaudited)
CURRENT ASSETS:
Cash	$	400,494		$	227,870
Accounts receivable, net		38,521			29,991
Inventory		427,761			321,537
Advance to suppliers		—			3,413
Prepaid expenses and other current assets		—			3,505
Total Current Assets		866,776			586,316
OTHER ASSETS:
Property and equipment, net		35,111			8,349
Deposits		14,849			14,849
Total Other Assets		49,960			23,198
TOTAL ASSETS	$	916,736		$	609,514
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	171,267		$	79,759
Customer deposits		58,647			16,200
Due to related party		3,210			210
Equipment financing payable, current		3,300			—
Total Current Liabilities		236,424			96,169
LONG TERM LIABILITIES:
Equipment financing payable		12,878			—
Total Liabilities		249,302			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 shares issued and outstanding as of February 28, 2019 and 40,505,047 shares issued and outstanding as of May 31, 2018		4,128			4,051
Additional paid-in capital		5,306,384			4,997,461
Accumulated deficit		(4,643,078	)		(4,488,167	)
Total Stockholders' Equity		667,434			513,345
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	916,736		$	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 Nine Month Periods Ended
	February 28,						February 28,
	2019			2018			2019			2018
Sales	$	281,062		$	219,254		$	662,401		$	466,408
Cost of sales		158,846			135,236			382,238			247,359
Gross profit		122,216			84,018			280,163			219,049
OPERATING EXPENSES:
Marketing and selling expenses		22,439			36,767			63,911			74,631
Compensation and related taxes		7,344			8,235			22,430			20,657
Professional and consulting expenses		37,732			90,720			157,912			297,975
General and administrative		58,212			60,274			190,538			163,742
Total Operating Expenses		125,727			195,996			434,791			557,005
LOSS FROM OPERATIONS		(3,511	)		(111,978	)		(154,628	)		(337,956	)
OTHER INCOME (EXPENSE):
Interest income		49			33			95			90
Interest expense and other finance charges		(106	)		(965	)		(378	)		(3,071	)
Other Income (Expense), Net		(57	)		(932	)		(283	)		(2,981	)
LOSS BEFORE PROVISION FOR INCOME TAXES		(3,568	)		(112,910	)		(154,911	)		(340,937	)
Provision for income taxes		—			—			—			—
NET LOSS	$	(3,568	)	$	(112,910	)	$	(154,911	)	$	(340,937	)
NET LOSS PER COMMON SHARE - Basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted		41,277,547			40,505,047			40,808,595			40,174,201

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 NINE MONTHS ENDED FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

For the nine months ended February 28, 2019
									Additional					Total
	Preferred Stock				Common Stock				Paid-in		Accumulated			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 nine months period ended February 28, 2019		—		—		—		—		—		(154,911	)		(154,911	)
Balance, February 28, 2019		—		—		41,277,547	$	4,128	$	5,306,384	$	(4,643,078	)	$	667,434
For the three months ended February 28, 2019
										Additional					Total
		Preferred Stock				Common Stock				Paid-in		Accumulated			Stockholders'
		Shares		Amount		Shares		Amount		Capital		Deficit			Equity
Balance, November 30, 2018		—		—		41,277,547		4,128		5,306,384		(4,639,510	)		671,002
Net loss for the nine months period ended February 28, 2019		—		—		—		—		—		(3,568	)		(3,568	)
Balance, February 28, 2019		—		—		41,277,547	$	4,128	$	5,306,384	$	(4,643,078	)	$	667,434
For the nine months ended February 28, 2018
										Additional					Total
		Preferred Stock				Common Stock				Paid-in		Accumulated			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 cash		—		—		746,000		74		283,326		—			283,400
Shares to be issued for services		—		—		80,000		8		19,992		—			20,000
Net loss for the nine months period ended February 28, 2018		—		—		—		—		—		(340,937	)		(340,937	)
Balance, February 28, 2018		—		—		40,505,047	$	4,050	$	4,997,462		(4,486,565	)	$	514,947
For the three months ended February 28, 2018
										Additional					Total
		Preferred Stock				Common Stock				Paid-in		Accumulated			Stockholders'
		Shares		Amount		Shares		Amount		Capital		Deficit			Equity
Balance, November 30, 2017		—		—		40,505,047		4,050		4,997,462		(4,373,655	)		627,857
Net loss for the three months period ended February 28, 2018		—		—		—		—		—		(112,910	)		(112,910	)
Balance, February 28, 2018		—		—		40,505,047	$	4,050	$	4,997,462	$	(4,486,565	)	$	514,947

See accompanying notes to these condensed unaudited financial statements.

F-3

REVIV3 PROCARE COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Nine Month Periods Ended
	February 28,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(154,911	)	$	(340,937	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		3,625			2,116
Bad debts		2,786			2,757
Stock based compensation		5,000			32,088
Change in operating assets and liabilities:
Accounts receivable		(11,316	)		(9,402	)
Inventory		(106,224	)		(137,604	)
Advance to suppliers		3,413			(112,954	)
Prepaid expenses and other current assets		3,505			3,001
Accounts payable and accrued expenses		91,508			6,046
Customer deposits		42,447			115,364
Other liabilities		(47	)		—
NET CASH USED IN OPERATING ACTIVITIES		(120,214	)		(439,525	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(13,887	)		(4,123	)
NET CASH USED IN INVESTING ACTIVITIES		(13,887	)		(4,123	)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock for cash		304,000			283,400
Advances from a related party		3,000			210
Repayment of equipment financing		(275	)		—
NET CASH PROVIDED BY FINANCING ACTIVITIES		306,725			283,610
NET INCREASE (DECREASE) IN CASH		172,624			(160,038	)
CASH - Beginning of year		227,870			416,873
CASH - End of year	$	400,494		$	256,835
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	378		$	—
Income taxes	$	—		$	—
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Financing of equipment	$	16,500		$	—
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

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 1 – Organization

Reviv3 Procare Company (the “Company”) 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 and Summary of Significant Accounting Policies

Basis of Presentation

The unaudited financial statements for the nine months ended February 28, 2019 and 2018 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 February 28, 2019 and 2018, 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 nine months ended February 28, 2019 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 $154,911 and $103,989, respectively, for nine months period ended February 28, 2019.  Additionally, the Company has an accumulated deficit of $4,643,078 at February 28, 2019. 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

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies (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 $0 and $3,505 at February 28, 2019 and May 31, 2018, respectively, consist primarily of costs paid for future services which will occur within a year.   

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 February 28, 2019 and May 31, 2018, advances to the Company’s major supplier amounted to $0 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.

F-6

REVIV3 PROCARE COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies (continued)

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 include 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 $11,900 and $11,516 for the three months period ended February 28, 2019 and 2018, respectively. Shipping costs included in marketing and selling expense were $30,601 and $27,628 for the nine months period ended February 28, 2019 and 2018, respectively.

Marketing, selling and advertising

Marketing, selling and advertising costs are expensed as incurred.

F-7

REVIV3 PROCARE COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies (continued)

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.

F-8

REVIV3 PROCARE COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies (continued)

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.

F-9

REVIV3 PROCARE COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies (continued)

Effective June 1, 2018, the Company adopted the proposed update to ASC 718 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. The adoption of the standard did not have a material impact on the financial statements of the Company.

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 February 28, 2019 and 2018, 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.

F-10

REVIV3 PROCARE COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies (continued)

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.

Note 3 – Accounts Receivable

Accounts receivable, consisted of the following:

	February 28, 2019			May 31, 2018
	(Unaudited)
Accounts receivable	$	44,049		$	32,733
Less: Allowance for bad debts		(5,528	)		(2,742	)
	$	38,521		$	29,991

The Company recorded bad debt expense of $2,786 and $2,757 during the nine months periods ended February 28, 2019 and 2018, respectively. The Company recorded bad debt expense of $0 and $0 during the three months periods ended February 28, 2019 and 2018, respectively.

F-11

REVIV3 PROCARE COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 4 – Inventory

Inventory consisted of the following:

	February 28, 2019		May 31, 2018
		(Unaudited)
Finished goods	$	229,746	$	113,134
Raw materials		198,015		208,403
	$	427,761	$	321,537

At February 28, 2019 and May 31, 2018, inventory held at third party locations and inventory in transit amounted to $117,104 and $64,485, respectively. During the quarter ended February 28, 2018, Management abandoned $11,496 of inventory held at a former distributor at a foreign location outside of the United States as it was not cost efficient to import the inventory back into the United States. The $11,496 is included in cost of sales for the three and nine months ended February 28, 2018.

Note 5 – Property and Equipment

Property and equipment, stated at cost, consisted of the following:

	Estimated life	February 28, 2019		May 31, 2018
		(Unaudited)
Furniture and fixtures	5 years	$	5,759	$	5,759
Computer equipment	3 years		17,392		7,495
Machinery & equipment	5-10 years		20,490		-
Less: Accumulated depreciation			(8,530)		(4,905)
		$	35,111	$	8,349

Depreciation expense amounted to $3,625 and $2,116 for the nine months periods ended February 28, 2019 and 2018, respectively. Depreciation expense amounted to $1,582 and $913 for the three months periods ended February 28, 2019 and 2018, respectively. 

Note 6 – Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses comprised of the following:

	February 28, 2019		May 31, 2018
		(Unaudited)
Trade Payables	$	127,977	$	41,320
Accrued Freight		22,532		22,532
Credit Cards		17,754		15,521
Other		3,004		386
	$	171,267	$	79,759

F-12

REVIV3 PROCARE COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 7- Equipment Financing Payable

During the nine months period ended February 28, 2019, the Company purchased a forklift under an installment purchase plan. The loan amount is $16,500 and is payable in 60 monthly instalment payments of $317 comprising of principal payment of $275 and interest payment of $42. As of February 28, 2019, the balance outstanding on the loan was $16,178 of which $3,300 is payable within one year and the balance $12,878 is payable after one year. The Company recorded an interest expense of $42 on the loan in the accompanying unaudited financial statements.

The amounts of loan payments due in the next five years ended February 28, are as follows:

	Amount
2020	$	3,300
2021		3,300
2022		3,300
2023		3,300
2024		2,978
	$	16,178

Note 8 – 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.

F-13

REVIV3 PROCARE COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 8 – Stockholders’ Equity (continued)

Common Stock

During the nine months period ended February 28, 2019, 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 nine months period ended February 28, 2019, the Company recorded 12,500 shares of common stock for shares earned by third party consultant for services provided to the Company. The shares were valued at $0.40 per share or $5,000, based on the 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 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 February 28, 2019, 41,275,547 shares of common stock were outstanding. 

Note 9 – 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 $71,203 and $53,751 for the nine month periods ended February 28, 2019 and 2018, respectively. Future minimum rental payments required under this operating lease are as follows:

	Total		1 Year		2-3 Year		Thereafter
Operating lease	$	57,897	$	57,897	$	—	$	—
Total	$	57,897	$	57,897	$	—	$	—

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 agreement was rescinded in January 2019. The accompanying financials include a $5,000 expense for the 12,500 shares earned and issued to the consultant before the rescission of agreement.

F-14

REVIV3 PROCARE COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 10 – Related Party Transactions

The Company’s Chief Executive Officer, from time to time, provided advances to the Company for working capital purposes. At February 28, 2019 and May 31, 2018, the Company had a payable to the officer of $3,210 and $210, respectively. These advances were short-term in nature and non-interest bearing.   

During the nine months period ended February 28, 2019, 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 11 – Concentrations

Cash concentration

As of February 28, 2019, the Company held cash of approximately $129,200 in excess of federally insured limits.

Concentration of Revenue, Customers, Product Line, and Suppliers

During the nine months period ended February 28, 2019, sales to two customers represented approximately 51% of the Company’s net sales at 38% and 13%. During the three months period ended February 28, 2019, one customer represented approximately 50% of the Company’s net sales. During the nine months ended February 28, 2018 sales to three customers represented approximately 54% of the Company’s net sales at 21%, 19% and 14%. During the three months ended February 28, 2018, sales to three customers represented approximately 71% of net sales at 44%, 14% and 13%.

During the nine months period ended February 28, 2019 sales to customers outside the United States represented approximately 30% which consisted of 20% from Canada, 5% from Italy, 3% from Hong Kong and 2% from United Kingdom. During the three months period ended February 28, 2019 sales to customers outside the United States represented approximately 26% which consisted of 22% from Canada and 4% from United Kingdom. .During the nine months ended February 28, 2018 sales to customers outside the United States represented approximately 36% which consisted of 27% from Canada and 9% from Italy. During the three months period ended February 28, 2018 sales to customers outside of the United States represented approximately 25% which consisted of sales of 21% from Canada and 3% from Italy, and 1% from China.

During the nine months period ended February 28, 2019, sales by product line comprised of the following:

Prep cleanser and shampoo	16	%
Moisturizer and conditioner	11	%
Treatment spray	5	%
Cellular complex	5	%
Hair masque	5	%
Thickening spray	4	%
Introductory kit	20	%
Fragrance shampoo and conditioner	29	%
Thermal protect	3	%
Thickening spray	2	%
Total	100	%

F-15

REVIV3 PROCARE COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

FEBRUARY 28, 2019 AND 2018

(UNAUDITED)

Note 11 – Concentrations (continued)

During the nine months period ended February 28, 2019, sales by product line which each represented over 10% of sales consisted of approximately 20% from sale of introductory kit (shampoo, conditioner and treatment spray), 16% from prep shampoo and conditioner, 11% from sale of moisturizer and conditioner and 29% from fragrance shampoo and conditioner. During the three months period ended February 28, 2019, sales by product line which each represented over 10% of sales consisted of approximately 15% from sale of introductory kit (shampoo, conditioner and treatment spray), 21% from fragrance shampoo and 21% from fragrance conditioner. During the nine months period ended February 28, 2018, sales by product line which each represented over 10% of sales consisted of approximately 29% from sales of hair shampoo, 24% from sales of hair shampoo and conditioner, 21% from sale of hair treatment spray and repair products and 24% from sale of introductory kit (shampoo, conditioner and treatment spray). During the three months period ended February 28, 2018, sales by product line which each represented over 10% of sales consisted of approximately 35% from sales of hair shampoo, 31% from sales of hair conditioner, and 17% from sale of introductory kit.

As of February 28, 2019, accounts receivable from four customers represented approximately 93% at 24%, 31%, 23% and 15% 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 $308,761 (76% of the purchases at 10%, 28% and 38%) and three vendors totaling approximately $283,000 (82% of the purchases at 18%, 14% and 50%) during the nine months periods ended February 28, 2019 and 2018, respectively. The Company purchased inventories and products from two vendors totaling approximately $210,805 (92% of the purchases at 24% and 68%) during the three months periods ended February 28, 2019. The Company purchased inventories and products from seven vendors totaling approximately $271,877 during the three months periods ended February 28, 2018.

F-16

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 Nine months ended February 28, 2019 Compared to the Three Months and Nine Months ended February 28, 2018

Revenues for the three months periods ended February 28, 2019 and 2018 were $281,062 and $219,254, respectively. Revenues for the three months period ended February 28, 2019 increased by $61,808 or 28% compared to the same comparable period in 2018. Revenues for the nine months periods ended February 28, 2019 and 2018 were $662,401 and $466,408, respectively. Revenues for the nine months period ended February 28, 2019 increased by $195,993 or 42% compared to the same comparable period in 2018. Revenues increased in the 2019 respective periods compared to the same comparable periods in 2018 primarily due to a general increase in sales to our existing customers due to a wider name and a matured brand recognition of our products, and the Company receiving a significantly large sales order from a customer in November 2018 for promoting our products.

Cost of sales consisted primarily of cost of product and freight in costs. Cost of sales for the three months ended February 28, 2019 and 2018 was $158,846 and $135,236, respectively. Cost of sales as a percentage of sales for the three months ended February 28, 2019 and 2018 was 57% and 62%, respectively. Cost of sales for the three months ended February 28, 2019 increased by $23,610 or 17% over the comparable period in 2018. Cost of sales for the nine months ended February 28, 2019 and 2018 was $382,238 and $247,359, respectively. Cost of sales as a percentage of sales for the nine months ended February 28, 2019 and 2018 was 58% and 53%, respectively. Cost of sales for the nine months ended February 28, 2019 increased by $134,879 or 55% over the comparable period in 2018. Cost of sales increased in 2019 for the respective periods as compared to the same comparable periods in 2018 primarily due to the increase in sales, increase in freight cost, and selling promotional items at a lower margin to customers to create market awareness and to gain market share.

-3-

Gross profit for the three months ended February 28, 2019 and 2018 was $122,216 and $84,018, respectively. Gross profit as a percentage of revenues for the three months ended February 28, 2019 was 43% as compared to 38% for the same comparable period in 2018. Gross profit for the nine months ended February 2019 and 2018, was $280,163 and $219,049, respectively. Gross profit as a percentage of revenues for the nine months ended February 28, 2019 and 2018, was 42% as compared to 47% for the same comparable period in 2018. The increase in gross profit for the three months ended February 28, 2019 was due to the Company obtaining price concessions from its vendors due to higher purchase volume. The decrease in gross profit for the nine months ended February 28, 2019 was primarily attributable to selling promotional products at a lower margin to a customer in November 2018.

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 February 28, 2019 and 2018 were $125,727 and $195,996, respectively. Operating expenses as a percentage of revenues for the three months ended February 28, 2019 and 2018 were 45% and 89% respectively. Operating expenses for the three months ended February 28, 2019 decreased by $70,269 or 36% compared to the comparable period in 2018. Operating expenses for the nine months ended February 28, 2019 and 2018 were $434,791 and $557,005, respectively. Operating expenses as a percentage of revenues for the nine months ended February 28, 2019 and 2018 were 66% and 119% respectively. Operating expenses for the nine months ended February 28, 2019 decreased by $122,214 or 22% compared to the comparable period in 2018. The decrease in operating expenses is attributable primarily due to the reduction in the Company engaging 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 2019 compared to the same comparable periods in 2018.

Other income (expense) consisted of interest income and interest expense and other finance charges incurred by us. Interest income for the three months ended February 28, 2019 and 2018 was $49 and $33, respectively. Interest expense and other finance changes for the three months ended February 28, 2019 and 2018 were $106 and $965, respectively. Interest income for the nine months ended February 28, 2019 and 2018 was $95 and $90, respectively. Interest expenses and other finance charges for the nine months ended February 28, 2019 and 2018 were $378 and $3,071, 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 $3,568 and $112,910 for the three months ended February 28, 2019 and 2018, respectively, and a net loss of $154,911 and $340,937 for the nine months periods ended February 28, 2019 and 2018, respectively.

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 2019. 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 our 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.

-4-

Cash Flows

Operating Activities

Net cash flows used in operating activities for the nine months ended February 28, 2019 was $120,214, attributable to a net loss of $154,911, depreciation of $3,625, bad debt write-off of $2,786, stock based compensation of $5,000 and net change in operating assets and liabilities of $23,286 primarily due to increase in accounts receivable, inventory, advance to suppliers, accounts payable and accrued expenses, customer deposits and other liabilities, and decrease in prepaid expenses and other current assets. Net cash flows used in operating activities for the nine months ended February 28, 2018 was $439,525, attributable to a net loss of $340,937, depreciation of $2,116, bad debt write-off of $2,757, stock based compensation of $32,088, and net change in operating assets and liabilities of $135,549, primarily due to the increase in accounts receivable, inventory, accounts payable and accrued expenses and customer deposits, and decrease in prepaid expenses and other current assets.

Investing Activities

Net cash flows used in investing activities for the nine months ended February 28, 2019 and 2018 was $13,887 and $4,123, respectively. We purchased property and equipment of $30,387 with a financing portion of $16,500 and $4,123 during the nine months periods ended February 28, 2019 and 2018, respectively.

Financing Activities

Net cash flows provided by financing activities for the nine months ended February 28, 2019 and 2018 was $306,725 and $283,610, respectively. We raised $304,000 and $283,400 in capital funds through private placement offerings during the nine months ended February 28, 2019 and 2018, respectively. In addition, we received advances from a related party of $3,000 and $210 during the nine months ended February 28, 2019 and 2018, respectively and we repaid $275 of the financed equipment.

As a result of the activities described above, we recorded a net increase of cash of $172,624 for the nine months ended February 28, 2019, and net decrease of cash of $160,038 for the nine months ended February 28, 2018.

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.

-5-

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.

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.

-6-

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.

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 February 28, 2019 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.

-7-

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.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for smaller reporting companies.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain "disclosure controls and procedures,” as that term is defined in Rule 13a-15(e), promulgated by the SEC pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including the principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure. Our management, with the participation of the principal executive officer and principal financial officer, evaluated our disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, our principal executive officer and principal financial officer concluded that as of February 28, 2019, our disclosure controls and procedures were not effective due to material weaknesses in our internal control over financial reporting.

The ineffectiveness of our internal control over financial reporting was due to the following material weaknesses in our internal control over financial reporting which we identified and previously reported in the Annual Report on Form 10-K for the year ended May 31, 2018: (1) insufficient number of qualified accounting personnel governing the financial close and reporting process, (2) lack of independent directors, and (3) lack of proper segregation of duties.

We expect to be materially dependent upon third parties to provide us with accounting and consulting services for the foreseeable future. We believe this will be sufficient to remediate the material weaknesses related to our accounting discussed above. We plan to recruit independent directors in the near future to oversee, establish and maintain adequate internal controls over financial reporting. Until such time as we have a chief financial officer with the requisite expertise in U.S. GAAP, there are no assurances that the material weaknesses in our disclosure controls and procedures will not result in errors in our financial statements which could lead to a restatement of those financial statements. A material weakness is a deficiency or a combination of control deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

Changes in internal control over financial reporting

There were no changes in our internal control over financial reporting during the quarter ended February 28, 2019 that have materially affected, or are reasonably likely to materially affect, our 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

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

(a) On April 9, 2019, the Company appointed Chris Go as interim Chief Financial Officer of the Company. Mr. Go will serve as principal financial officer and principal accounting officer of the Company. Mr. Go also currently serves as Secretary and a Director of the Company and will continue to serve in those positions.

Mr. Go’s business experience and professional background are disclosed under Item 10 of our Annual Report on Form 10-K filed on August 10, 2018, which information is incorporated by reference herein. There is currently no compensation arrangement in place for Mr. Go.

(b) During the quarter ended February 28, 2019, 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
31.1	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	X
31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	X
32.1	Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	X
32.2	Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	X
101.INS	XBRL Instance	X
101.SCH	XBRL Taxonomy Extension Schema	X
101.CAL	XBRL Taxonomy Extension Calculation	X
101.DEF	XBRL Taxonomy Extension Definition	X
101.LAB	XBRL Taxonomy Extension Labels	X
101.PRE	XBRL Taxonomy Extension Presentation	X

-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: April 10, 2019

By: /s/Jeff Toghraie

____________________________

Jeff Toghraie

Chief Executive Officer

(Principal Executive 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)

April 10, 2019

EX-31.2

  EXHIBIT 31.2

CERTIFICATION

I, Chris Go, 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/ Chris Go

Chris Go

Interim Chief Financial Officer

(Principal Accounting Officer)

April 10, 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 February 28, 2019 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

(Principal Executive Officer)

April 10, 2019

EX-32.2

  EXHIBIT 32.2

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 February 28, 2019 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/ Chris Go

Chris Go

Interim Chief Financial Officer

(Principal Accounting Officer)

April 10, 2019

XML

Document and Entity Information - shares	9 Months Ended
	Feb. 28, 2019	Apr. 10, 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	Feb. 28, 2019
Document Fiscal Period Focus	Q3
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 ($)	Feb. 28, 2019	May 31, 2018
CURRENT ASSETS:
Cash	$ 400,494	$ 227,870
Accounts receivable, net	38,521	29,991
Inventory	427,761	321,537
Advance to suppliers		3,413
Prepaid expenses and other current assets		3,505
Total Current Assets	866,776	586,316
OTHER ASSETS:
Property and equipment, net	35,111	8,349
Deposits	14,849	14,849
Total Other Assets	49,960	23,198
TOTAL ASSETS	916,736	609,514
CURRENT LIABILITIES:
Accounts payable and accrued expenses	171,267	79,759
Customer deposits	58,647	16,200
Due to related party	3,210	210
Equipment financing payable, current	3,300
Total Current Liabilities	236,424	96,169
LONG TERM LIABILITIES:
Equipment financing payable	12,878
Total Liabilities	249,302	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 shares issued and outstanding as of February 28, 2019 and 40,505,047 shares issued and outstanding as of May 31, 2018	4,128	4,051
Additional paid-in capital	5,306,384	4,997,461
Accumulated deficit	(4,643,078)	(4,488,167)
Total Stockholders' Equity	667,434	513,345
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 916,736	$ 609,514

XML

CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Feb. 28, 2019	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		9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Income Statement [Abstract]
Sales	$ 281,062	$ 219,254	$ 662,401	$ 466,408
Cost of sales	158,846	135,236	382,238	247,359
Gross profit	122,216	84,018	280,163	219,049
OPERATING EXPENSES:
Marketing and selling expenses	22,439	36,767	63,911	74,631
Compensation and related taxes	7,344	8,235	22,430	20,657
Professional and consulting expenses	37,732	90,720	157,912	297,975
General and administrative	58,212	60,274	190,538	163,742
Total Operating Expenses	125,727	195,996	434,791	557,005
LOSS FROM OPERATIONS	(3,511)	(111,978)	(154,628)	(337,956)
OTHER INCOME (EXPENSE):
Interest income	49	33	95	90
Interest expense and other finance charges	(106)	(965)	(378)	(3,071)
Other Income (Expense), Net	(57)	(932)	(283)	(2,981)
LOSS BEFORE PROVISION FOR INCOME TAXES	(3,568)	(112,910)	(154,911)	(340,937)
Provision for income taxes
NET LOSS	$ (3,568)	$ (112,910)	$ (154,911)	$ (340,937)
NET LOSS PER COMMON SHARE - Basic and diluted	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.01)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted	41,277,547	40,505,047	40,808,595	40,174,201

XML

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Preferred Stock	Common Stock [Member]	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				(340,937)	(340,937)
Ending Balance at Feb. 28, 2018		$ 4,050	4,997,462	(4,486,565)	514,947
Ending Balance, Shares at Feb. 28, 2018		40,505,047
Beginning Balance at Nov. 30, 2017		$ 3,976	4,714,136	(4,272,357)	445,755
Beginning Balance, Shares at Nov. 30, 2017		39,759,047
Net Loss for the Period				(112,910)	(112,910)
Ending Balance at Feb. 28, 2018		$ 4,050	4,997,462	(4,486,565)	514,947
Ending Balance, Shares at Feb. 28, 2018		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				(154,911)	(154,911)
Ending Balance at Feb. 28, 2019		$ 4,128	5,306,384	(4,643,078)	667,434
Ending Balance, Shares at Feb. 28, 2019		41,277,547
Beginning Balance at Nov. 30, 2018		$ 4,051	4,997,461	(4,581,471)	420,041
Beginning Balance, Shares at Nov. 30, 2018		40,505,047
Net Loss for the Period				(3,568)	(3,568)
Ending Balance at Feb. 28, 2019		$ 4,128	$ 5,306,384	$ (4,643,078)	$ 667,434
Ending Balance, Shares at Feb. 28, 2019		41,277,547

XML

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (154,911)	$ (340,937)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	3,625	2,116
Bad debts	2,786	2,757
Stock based compensation	5,000	32,088
Change in operating assets and liabilities:
Accounts Receivable	(11,316)	(9,402)
Inventory	(106,224)	(137,604)
Advance to suppliers	3,413	(112,954)
Prepaid expenses and other current assets	3,505	3,001
Accounts payable and accrued expenses	91,508	6,046
Customer deposits	42,447	115,364
Other liabilities	(47)
NET CASH USED IN OPERATING ACTIVITIES	(120,214)	(439,525)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(13,887)	(4,123)
NET CASH USED IN INVESTING ACTIVITIES	(13,887)	(4,123)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock for cash	304,000	283,400
Advances from a related party	3,000	210
Repayment of equipment financing	(275)
NET CASH PROVIDED BY FINANCING ACTIVITIES	306,725	283,610
NET (DECREASE) INCREASE IN CASH	172,624	(160,038)
CASH - Beginning of period	227,870	416,873
CASH - End of period	400,494	256,835
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest	378
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Financing of equipment	16,500
Issuance of common stock for prepaid services		$ 20,000

XML

Organization

9 Months Ended

Feb. 28, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Note 1 – Organization

Reviv3 Procare Company (the “Company”) 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

9 Months Ended

Feb. 28, 2019

Accounting Policies [Abstract]

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

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The unaudited financial statements for the nine months ended February 28, 2019 and 2018 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 February 28, 2019 and 2018, 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 nine months ended February 28, 2019 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 $154,911 and $103,989, respectively, for nine months period ended February 28, 2019.  Additionally, the Company has an accumulated deficit of $4,643,078 at February 28, 2019. 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 $0 and $3,505 at February 28, 2019 and May 31, 2018, respectively, consist primarily of costs paid for future services which will occur within a year.   

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 February 28, 2019 and May 31, 2018, advances to the Company’s major supplier amounted to $0 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 include 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 $11,900 and $11,516 for the three months period ended February 28, 2019 and 2018, respectively. Shipping costs included in marketing and selling expense were $30,601 and $27,628 for the nine months period ended February 28, 2019 and 2018, 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 proposed update to ASC 718 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. The adoption of the standard did not have a material impact on the financial statements of the Company.

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 February 28, 2019 and 2018, 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

9 Months Ended

Feb. 28, 2019

Receivables [Abstract]

Accounts Receivable

Note 3 – Accounts Receivable

Accounts receivable, consisted of the following:

	February 28, 2019			May 31, 2018
	(Unaudited)
Accounts receivable	$	44,049		$	32,733
Less: Allowance for bad debts		(5,528	)		(2,742	)
	$	38,521		$	29,991

The Company recorded bad debt expense of $2,786 and $2,757 during the nine months periods ended February 28, 2019 and 2018, respectively. The Company recorded bad debt expense of $0 and $0 during the three months periods ended February 28, 2019 and 2018, respectively.

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Inventory

9 Months Ended

Feb. 28, 2019

Inventory Disclosure [Abstract]

Inventory

Note 4 – Inventory

Inventory consisted of the following:

	February 28, 2019		May 31, 2018
	(Unaudited)
Finished goods	$	229,746	$	113,134
Raw materials		198,015		208,403
	$	427,761	$	321,537

At February 28, 2019 and May 31, 2018, inventory held at third party locations and inventory in transit amounted to $117,104 and $64,485, respectively. During the quarter ended February 28, 2018, Management abandoned $11,496 of inventory held at a former distributor at a foreign location outside of the United States as it was not cost efficient to import the inventory back into the United States. The $11,496 is included in cost of sales for the three and nine months ended February 28, 2018.

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Property and Equipment

9 Months Ended

Feb. 28, 2019

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	February 28, 2019			May 31, 2018
		(Unaudited)
Furniture and fixtures	5 years	$	5,759		$	5,759
Computer equipment	3 years		17,392			7,495
Machinery & equipment	5-10 years		20,490			—
Less: Accumulated depreciation			(8,530	)		(4,905	)
		$	35,111		$	8,349

Depreciation expense amounted to $3,625 and $2,116 for the nine months periods ended February 28, 2019 and 2018, respectively. Depreciation expense amounted to $1,582 and $913 for the three months periods ended February 28, 2019 and 2018, respectively. 

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Accounts Payable and Accrued Expenses

9 Months Ended

Feb. 28, 2019

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:

	February 28, 2019		May 31, 2018
	(Unaudited)
Trade Payables	$	127,977	$	41,320
Accrued Freight		22,532		22,532
Credit Cards		17,754		15,521
Other		3,004		386
	$	171,267	$	79,759

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Equipment Financing Payable

9 Months Ended

Feb. 28, 2019

Notes to Financial Statements

Equipment Financing Payable

Note 7- Equipment Financing Payable

During the nine months period ended February 28, 2019, the Company purchased a forklift under an installment purchase plan. The loan amount is $16,500 and is payable in 60 monthly instalment payments of $317 comprising of principal payment of $275 and interest payment of $42. As of February 28, 2019, the balance outstanding on the loan was $16,178 of which $3,300 is payable within one year and the balance $12,878 is payable after one year. The Company recorded an interest expense of $42 on the loan in the accompanying unaudited financial statements.

The amounts of loan payments due in the next five years ended February 28, are as follows:

	Amount
2020	$	3,300
2021		3,300
2022		3,300
2023		3,300
2024		2,978
	$	16,178

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Stockholders' Equity

9 Months Ended

Feb. 28, 2019

Equity [Abstract]

Stockholders' Equity

Note 8 – 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 nine months period ended February 28, 2019, 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 nine months period ended February 28, 2019, the Company recorded 12,500 shares of common stock for shares earned by third party consultant for services provided to the Company. The shares were valued at $0.40 per share or $5,000, based on the 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 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 February 28, 2019, 41,275,547 shares of common stock were outstanding. 

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Commitments and Contingencies

9 Months Ended

Feb. 28, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9 – 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 $71,203 and $53,751 for the nine month periods ended February 28, 2019 and 2018, respectively. Future minimum rental payments required under this operating lease are as follows:

	Total		1 Year		2-3 Year		Thereafter
Operating lease	$	57,897	$	57,897	$	—	$	—
Total	$	57,897	$	57,897	$	—	$	—

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 agreement was rescinded in January 2019. The accompanying financials include a $5,000 expense for the 12,500 shares earned and issued to the consultant before the rescission of agreement.

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Related Party Transactions

9 Months Ended

Feb. 28, 2019

Related Party Transactions [Abstract]

Related Party Transactions

Note 10 – Related Party Transactions

The Company’s Chief Executive Officer, from time to time, provided advances to the Company for working capital purposes. At February 28, 2019 and May 31, 2018, the Company had a payable to the officer of $3,210 and $210, respectively. These advances were short-term in nature and non-interest bearing.   

During the nine months period ended February 28, 2019, 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

9 Months Ended

Feb. 28, 2019

Risks and Uncertainties [Abstract]

Concentrations

Note 11 – Concentrations

Cash concentration

As of February 28, 2019, the Company held cash of approximately $129,200 in excess of federally insured limits.

Concentration of Revenue, Customer, Product Line and Suppliers

During the nine months period ended February 28, 2019, sales to two customers represented approximately 51% of the Company’s net sales at 38% and 13%. During the three months period ended February 28, 2019, one customer represented approximately 50% of the Company’s net sales. During the nine months ended February 28, 2018 sales to three customers represented approximately 54% of the Company’s net sales at 21%, 19% and 14%. During the three months ended February 28, 2018, sales to three customers represented approximately 71% of net sales at 44%, 14% and 13%.

During the nine months period ended February 28, 2019 sales to customers outside the United States represented approximately 30% which consisted of 20% from Canada, 5% from Italy, 3% from Hong Kong and 2% from United Kingdom. During the three months period ended February 28, 2019 sales to customers outside the United States represented approximately 26% which consisted of 22% from Canada and 4% from United Kingdom. .During the nine months ended February 28, 2018 sales to customers outside the United States represented approximately 36% which consisted of 27% from Canada and 9% from Italy. During the three months period ended February 28, 2018 sales to customers outside of the United States represented approximately 25% which consisted of sales of 21% from Canada and 3% from Italy, and 1% from China.

During the nine months period ended February 28, 2019, sales by product line comprised of the following:

Prep cleanser and shampoo	16	%
Moisturizer and conditioner	11	%
Treatment spray	5	%
Cellular complex	5	%
Hair masque	5	%
Thickening spray	4	%
Introductory kit	20	%
Fragrance shampoo and conditioner	29	%
Thermal protect	3	%
Thickening spray	2	%
Total	100	%

During the nine months period ended February 28, 2019, sales by product line which each represented over 10% of sales consisted of approximately 20% from sale of introductory kit (shampoo, conditioner and treatment spray), 16% from prep shampoo and conditioner, 11% from sale of moisturizer and conditioner and 29% from fragrance shampoo and conditioner. During the three months period ended February 28, 2019, sales by product line which each represented over 10% of sales consisted of approximately 15% from sale of introductory kit (shampoo, conditioner and treatment spray), 21% from fragrance shampoo and 21% from fragrance conditioner. During the nine months period ended February 28, 2018, sales by product line which each represented over 10% of sales consisted of approximately 29% from sales of hair shampoo, 24% from sales of hair shampoo and conditioner, 21% from sale of hair treatment spray and repair products and 24% from sale of introductory kit (shampoo, conditioner and treatment spray). During the three months period ended February 28, 2018, sales by product line which each represented over 10% of sales consisted of approximately 35% from sales of hair shampoo, 31% from of sales of hair conditioner, and 17% from sale of introductory kit.

As of February 28, 2019, accounts receivable from four customers represented approximately 93% at 24%, 31%, 23% and 15% 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 $308,761 (76% of the purchases at 10%, 28% and 38%) and three vendors totaling approximately $283,000 (82% of the purchases at 18%, 14% and 50%) during the nine months periods ended February 28, 2019 and 2018, respectively. The Company purchased inventories and products from two vendors totaling approximately $210,805 (92% of the purchases at 24% and 68%) during the three months periods ended February 28, 2019. The Company purchased inventories and products from seven vendors totaling approximately $271,877 during the three months periods ended February 28, 2018.

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

9 Months Ended

Feb. 28, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited financial statements for the nine months ended February 28, 2019 and 2018 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 February 28, 2019 and 2018, 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 nine months ended February 28, 2019 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 $154,911 and $103,989, respectively, for nine months period ended February 28, 2019.  Additionally, the Company has an accumulated deficit of $4,643,078 at February 28, 2019. 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 $0 and $3,505 at February 28, 2019 and May 31, 2018, respectively, consist primarily of costs paid for future services which will occur within a year.   

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 February 28, 2019 and May 31, 2018, advances to the Company’s major supplier amounted to $0 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 include 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 $11,900 and $11,516 for the three months period ended February 28, 2019 and 2018, respectively. Shipping costs included in marketing and selling expense were $30,601 and $27,628 for the nine months period ended February 28, 2019 and 2018, 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 proposed update to ASC 718 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. The adoption of the standard did not have a material impact on the financial statements of the Company.

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 February 28, 2019 and 2018, 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)

9 Months Ended

Feb. 28, 2019

Receivables [Abstract]

Schedule of accounts receivable

Accounts receivable, consisted of the following:

	February 28, 2019			May 31, 2018
	(Unaudited)
Accounts receivable	$	44,049		$	32,733
Less: Allowance for bad debts		(5,528	)		(2,742	)
	$	38,521		$	29,991

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Inventory (Tables)

9 Months Ended

Feb. 28, 2019

Inventory Disclosure [Abstract]

Schedule of inventory

Inventory consisted of the following:

	February 28, 2019		May 31, 2018
	(Unaudited)
Finished goods	$	229,746	$	113,134
Raw materials		198,015		208,403
	$	427,761	$	321,537

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Property and Equipment (Tables)

9 Months Ended

Feb. 28, 2019

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

Property and equipment, stated at cost, consisted of the following:

	Estimated life	February 28, 2019			May 31, 2018
		(Unaudited)
Furniture and fixtures	5 years	$	5,759		$	5,759
Computer equipment	3 years		17,392			7,495
Machinery & equipment	5-10 years		20,490			—
Less: Accumulated depreciation			(8,530	)		(4,905	)
		$	35,111		$	8,349

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Accounts Payable and Accrued Expenses (Tables)

9 Months Ended

Feb. 28, 2019

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses comprised of the following:

	February 28, 2019		May 31, 2018
	(Unaudited)
Trade Payables	$	127,977	$	41,320
Accrued Freight		22,532		22,532
Credit Cards		17,754		15,521
Other		3,004		386
	$	171,267	$	79,759

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Equipment Financing Payable (Tables)

9 Months Ended

Feb. 28, 2019

Notes to Financial Statements

Schedule of Loan Payment Due

The amounts of loan payments due in the next five years ended February 28, are as follows:

	Amount
2020	$	3,300
2021		3,300
2022		3,300
2023		3,300
2024		2,978
	$	16,178

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Commitments and Contingencies (Tables)

9 Months Ended

Feb. 28, 2019

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	$	57,897	$	57,897	$	—	$	—
Total	$	57,897	$	57,897	$	—	$	—

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Concentrations (Tables)

9 Months Ended

Feb. 28, 2019

Disclosure Concentrations Tables Abstract

Schedule of Sales by Product Line

During the nine months period ended February 28, 2019, sales by product line comprised of the following:

Prep cleanser and shampoo	16	%
Moisturizer and conditioner	11	%
Treatment spray	5	%
Cellular complex	5	%
Hair masque	5	%
Thickening spray	4	%
Introductory kit	20	%
Fragrance shampoo and conditioner	29	%
Thermal protect	3	%
Thickening spray	2	%
Total	100	%

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Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018	May 31, 2018
Accounting Policies [Abstract]
Net loss	$ 3,568	$ 112,910	$ 154,911	$ 340,937
Net cash used in operations			120,214	439,525
Accumulated deficit	4,643,078		4,643,078		$ 4,488,167
Prepaid expenses and other current assets					3,505
Advances to major supplier					$ 3,413
Shipping costs	$ 11,900	$ 11,516	$ 30,601	$ 27,628
Potentially dilutive securities outstanding, shares

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Accounts Receivable (Details) - USD ($)	Feb. 28, 2019	May 31, 2018
Receivables [Abstract]
Accounts receivable	$ 44,049	$ 32,733
Less: Allowance for bad debts	(5,528)	(2,742)
Accounts receivable, net	$ 38,521	$ 29,991

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Accounts Receivable (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Accounts Receivable (Textual)
Bad debt expense	$ 297		$ 2,786	$ 2,757

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Inventory (Details) - USD ($)	Feb. 28, 2019	May 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 229,746	$ 113,134
Raw materials	198,015	208,403
Inventory, net	$ 427,761	$ 321,537

XML

Inventory (Details Narrative) - USD ($)	9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	May 31, 2018
Inventory Disclosure [Abstract]
Inventory held at third party locations	$ 117,104		$ 64,485
Write Down of Inventory for Obsolescence which is included in Cost of Sales		$ 11,496

XML

Property and Equipment (Details) - USD ($)	9 Months Ended
	Feb. 28, 2019	May 31, 2018
Less: Accumulated depreciation	$ (8,530)	$ (4,905)
Property and equipment net	$ 35,111	8,349
Computer Equipment [Member]
Estimated life	3 years
Property and equipment gross	$ 17,392	7,495
Machinery and Equipment [Member]
Property and equipment gross	$ 20,490
Furniture and Fixtures [Member]
Estimated life	5 years
Property and equipment gross	$ 5,759	$ 5,759
Minimum [Member] | Machinery and Equipment [Member]
Estimated life	5 years
Maximum [Member] | Machinery and Equipment [Member]
Estimated life	10 years

XML

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Property and Equipment (Textual)
Depreciation expense	$ 1,582	$ 913	$ 3,625	$ 2,116

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Accounts Payable and Accrued Expenses (Details) - USD ($)	Feb. 28, 2019	May 31, 2018
Payables and Accruals [Abstract]
Trade Payables	$ 127,977	$ 41,320
Accrued Freight	22,532	22,532
Credit Cards	17,754	15,521
Other	3,004	386
Accounts Payable and Accrued Expenses, net	$ 171,267	$ 79,759

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Equipment Financing Payable (Details) - USD ($)	Feb. 28, 2019	May 31, 2018
Notes to Financial Statements
2020	$ 3,300
2021	3,300
2022	3,300
2023	3,300
2024	2,978
Total	$ 16,178

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Stockholders' Equity (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Jun. 30, 2017	Feb. 28, 2019	Feb. 28, 2018	May 31, 2018
Stockholders' Equity (Textual)
Shares of common stock		100,000,000		100,000,000
Shares of common stock, par value		$ 0.0001		$ 0.0001
Shares of preferred stock		20,000,000		20,000,000
Shares of preferred stock, par value		$ 0.0001		$ 0.0001
Proceeds of common stock		$ 304,000	$ 283,400
Stock issued an aggregate of common stock value		5,000	283,400
Stock based compensation		$ 5,000	$ 32,088
Common Stock [Member]
Stockholders' Equity (Textual)
Shares issued for common stock		760,000	80,000
Stock issued an aggregate of common stock value		$ 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
Accumulated Deficit
Stockholders' Equity (Textual)
Stock issued an aggregate of common stock value
Additional Paid-In Capital
Stockholders' Equity (Textual)
Stock issued an aggregate of common stock value		$ 4,999	$ 283,326
Preferred Stock
Stockholders' Equity (Textual)
Shares issued for common stock
Stock issued an aggregate of common stock value
Maximum [Member] | Consulting Agreements [Member]
Stockholders' Equity (Textual)
Consulting agreements term	6 months
Minimum [Member] | Consulting Agreements [Member]
Stockholders' Equity (Textual)
Consulting agreements term	2 months
Stock based compensation	$ 20,000

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Commitments and Contingencies (Details)	May 31, 2018 USD ($)
Schedule of Future minimum rental payments for operating lease
1 Year	$ 57,897
2-3 Year
Thereafter
Total	$ 57,897

XML

Commitments and Contingencies (Details Narrative) - USD ($)	9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
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

XML

Related Party Transactions (Details Narrative) - USD ($)	Feb. 28, 2019	May 31, 2018
Related Party Transactions (Textual)
Amount payable to officers	$ 3,210	$ 210

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Concentrations (Details Narrative)	3 Months Ended		9 Months Ended		12 Months Ended
	Feb. 28, 2019 USD ($) Customer	Feb. 28, 2018 Customer	Feb. 28, 2019 USD ($) Customer Vendor	Feb. 28, 2018 USD ($) Vendor	May 31, 2017 Customer	May 31, 2018 USD ($)
Concentrations (Textual)
Amount of FDIC						$ 250,000
Held in cash	$ 129,200		$ 129,200			$ 0
Sales Revenue, Net [Member]
Concentrations (Textual)
Number of customers	3	3	2	1
Concentration risk percentage	54.00%	71.00%	51.00%	50.00%
Accounts Receivable [Member]
Concentrations (Textual)
Number of customers | Customer			3		3
Concentration risk percentage			77.00%		60.00%
Vendors [Member]
Concentrations (Textual)
Number of vendors | Vendor			3	2
Purchased inventories and products			$ 283,000	$ 210,805
Percentage of purchases			82.00%	92.00%
UNITED STATES [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage	26.00%		30.00%	36.00%
United Kingdom [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage	4.00%		2.00%
CANADA [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage	22.00%		20.00%	27.00%
Hong Kong [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			3.00%
Italy [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			5.00%	9.00%
Product [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			100.00%	10.00%
Introductory Kit [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			20.00%	31.00%
Others [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			10.00%
ThickeningSpray1Member | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			2.00%
Thermal Protect [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			3.00%
Fragrance Shampoo And Conditioner [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			29.00%
Prep Cleanser And Shampoo [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			16.00%
Moisturizer And Conditioner [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			11.00%
Treatment Spray [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			5.00%
Cellular Complex [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			5.00%
Hair Masque [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			5.00%
Thickening Spray [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage			4.00%
Hair Treatment And Repair Products [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage				26.00%
Hair Shampoo And Conditioner [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage				17.00%
Hair Shampoo [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage				23.00%
Customer One [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage	21.00%	44.00%	38.00%	50.00%
Customer One [Member] | Accounts Receivable [Member]
Concentrations (Textual)
Concentration risk percentage			26.00%		34.00%
Customer Two [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage	19.00%	14.00%	15.00%
Customer Two [Member] | Accounts Receivable [Member]
Concentrations (Textual)
Concentration risk percentage			32.00%		14.00%
Customer Three [Member] | Sales Revenue, Net [Member]
Concentrations (Textual)
Concentration risk percentage	14.00%	13.00%
Customer Three [Member] | Accounts Receivable [Member]
Concentrations (Textual)
Concentration risk percentage			19.00%		12.00%
Customer Four [Member] | Accounts Receivable [Member]
Concentrations (Textual)
Concentration risk percentage

XML

Concentrations (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018	May 31, 2017
Sales Revenue, Net [Member]
Concentration risk percentage	54.00%	71.00%	51.00%	50.00%
Accounts Receivable [Member]
Concentration risk percentage			77.00%		60.00%
Product [Member] | Sales Revenue, Net [Member]
Concentration risk percentage			100.00%	10.00%
Introductory Kit [Member] | Sales Revenue, Net [Member]
Concentration risk percentage			20.00%	31.00%
Others [Member] | Sales Revenue, Net [Member]
Concentration risk percentage			10.00%
ThickeningSpray1Member | Sales Revenue, Net [Member]
Concentration risk percentage			2.00%
Thermal Protect [Member] | Sales Revenue, Net [Member]
Concentration risk percentage			3.00%
Fragrance Shampoo And Conditioner [Member] | Sales Revenue, Net [Member]
Concentration risk percentage			29.00%
Thickening Spray [Member] | Sales Revenue, Net [Member]
Concentration risk percentage			4.00%
Hair Masque [Member] | Sales Revenue, Net [Member]
Concentration risk percentage			5.00%
Prep Cleanser And Shampoo [Member] | Sales Revenue, Net [Member]
Concentration risk percentage			16.00%
Moisturizer And Conditioner [Member] | Sales Revenue, Net [Member]
Concentration risk percentage			11.00%
Treatment Spray [Member] | Sales Revenue, Net [Member]
Concentration risk percentage			5.00%
Cellular Complex [Member] | Sales Revenue, Net [Member]
Concentration risk percentage			5.00%
Hair Treatment And Repair Products [Member] | Sales Revenue, Net [Member]
Concentration risk percentage				26.00%
Hair Shampoo And Conditioner [Member] | Sales Revenue, Net [Member]
Concentration risk percentage				17.00%
Hair Shampoo [Member] | Sales Revenue, Net [Member]
Concentration risk percentage				23.00%