Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Nov. 30, 2019 | Jan. 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Current Fiscal Year End Date | --05-31 | |
Entity File Number | 333-220846 | |
Entity Registrant Name | Reviv3 Procare Co | |
Entity Central Index Key | 0001718500 | |
Entity Tax Identification Number | 47-4125218 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 9480 Telstar Avenue. | |
Entity Address, Address Line Two | Unit 5, El Monte | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91731 | |
City Area Code | 888 | |
Local Phone Number | 638-8883 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Common Stock, Shares Outstanding | 41,285,881 |
CONDENSED BALANCE SHEETS (Unaud
CONDENSED BALANCE SHEETS (Unaudited) - USD ($) | Nov. 30, 2019 | May 31, 2019 |
CURRENT ASSETS: | ||
Cash | $ 344,532 | $ 346,179 |
Accounts receivable, net | 52,825 | 79,588 |
Inventory | 301,969 | 264,578 |
Prepaid expenses and other current assets | 2,993 | |
Total Current Assets | 699,326 | 693,338 |
OTHER ASSETS: | ||
Intangible assets, net | 474 | |
Property and equipment, net | 36,494 | 32,803 |
Deposits | 16,277 | 14,849 |
Total Other Assets | 52,771 | 48,126 |
TOTAL ASSETS | 752,097 | 741,464 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 167,107 | 32,471 |
Customer deposits | 17,511 | 16,203 |
Due to related party | 7,787 | 210 |
Equipment financing payable, current | 3,300 | 3,300 |
Total Current Liabilities | 195,705 | 52,184 |
LONG TERM LIABILITIES: | ||
Equipment financing payable | 10,005 | 11,910 |
Total Liabilities | 205,710 | 64,094 |
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; 41,285,881 shares issued and outstanding as of November 30, 2019 and May 31, 2019 | 4,129 | 4,129 |
Additional paid-in capital | 5,311,383 | 5,311,383 |
Accumulated deficit | (4,769,125) | (4,638,142) |
Total Stockholders' Equity | 546,387 | 677,370 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 752,097 | $ 741,464 |
CONDENSED BALANCE SHEETS (Una_2
CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Nov. 30, 2019 | May 31, 2019 |
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 | 41,285,881 | 41,285,881 |
Common stock, shares outstanding | 41,285,881 | 41,285,881 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Income Statement [Abstract] | ||||
Sales | $ 328,552 | $ 240,159 | $ 454,234 | $ 381,339 |
Cost of sales | 169,714 | 159,616 | 214,867 | 223,392 |
Gross profit | 158,838 | 80,543 | 239,367 | 157,947 |
OPERATING EXPENSES: | ||||
Marketing and selling expenses | 45,726 | 32,269 | 102,763 | 41,472 |
Compensation and related taxes | 20,899 | 7,417 | 31,193 | 15,086 |
Professional and consulting expenses | 9,073 | 70,694 | 37,472 | 120,180 |
General and administrative | 113,025 | 28,227 | 198,356 | 132,326 |
Total Operating Expenses | 188,723 | 138,607 | 369,784 | 309,064 |
LOSS FROM OPERATIONS | (29,885) | (58,064) | (130,417) | (151,117) |
OTHER INCOME (EXPENSE): | ||||
Interest income | 30 | 25 | 70 | 46 |
Interest expense and other finance charges | (519) | (636) | (272) | |
Other Income (Expense), Net | (489) | 25 | (566) | (226) |
LOSS BEFORE PROVISION FOR INCOME TAXES | (30,374) | (58,039) | (130,983) | (151,343) |
Provision for income taxes | ||||
NET LOSS | $ (30,374) | $ (58,039) | $ (130,983) | $ (151,343) |
NET LOSS PER COMMON SHARE - Basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic and diluted | 41,285,881 | 40,649,936 | 41,285,881 | 40,576,695 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance at May. 31, 2018 | $ 4,051 | $ 4,997,461 | $ (4,488,167) | $ 513,345 | |
Beginning Balance, Shares at May. 31, 2018 | 40,505,047 | ||||
Issuance of common stock for cash | $ 76 | 303,924 | 304,000 | ||
Issuance of common stock for cash, Shares | 760,000 | ||||
Shares to be issued for services | $ 1 | 4,999 | 5,000 | ||
Shares to be issued for services, Shares | 12,500 | ||||
Net Loss for the Period | (151,343) | (151,343) | |||
Ending Balance at Nov. 30, 2018 | $ 4,128 | 5,306,384 | (4,639,510) | 671,002 | |
Ending Balance, Shares at Nov. 30, 2018 | 41,277,547 | ||||
Beginning Balance at Aug. 31, 2018 | $ 4,051 | 4,997,461 | (4,581,471) | 420,041 | |
Beginning Balance, Shares at Aug. 31, 2018 | 40,505,047 | ||||
Issuance of common stock for cash | $ 76 | 303,924 | 304,000 | ||
Issuance of common stock for cash, Shares | 760,000 | ||||
Shares to be issued for services | $ 1 | 4,999 | 5,000 | ||
Shares to be issued for services, Shares | 12,500 | ||||
Net Loss for the Period | (58,039) | (58,039) | |||
Ending Balance at Nov. 30, 2018 | $ 4,128 | 5,306,384 | (4,639,510) | 671,002 | |
Ending Balance, Shares at Nov. 30, 2018 | 41,277,547 | ||||
Beginning Balance at May. 31, 2019 | $ 4,129 | 5,311,383 | (4,638,142) | 677,370 | |
Beginning Balance, Shares at May. 31, 2019 | 41,285,881 | ||||
Net Loss for the Period | (130,983) | (130,983) | |||
Ending Balance at Nov. 30, 2019 | $ 4,129 | 5,311,383 | (4,769,125) | 546,387 | |
Ending Balance, Shares at Nov. 30, 2019 | 41,285,881 | ||||
Beginning Balance at Aug. 31, 2019 | $ 4,129 | 5,311,383 | (4,738,751) | 576,761 | |
Beginning Balance, Shares at Aug. 31, 2019 | 41,285,881 | ||||
Net Loss for the Period | (30,374) | (30,374) | |||
Ending Balance at Nov. 30, 2019 | $ 4,129 | $ 5,311,383 | $ (4,769,125) | $ 546,387 | |
Ending Balance, Shares at Nov. 30, 2019 | 41,285,881 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (130,983) | $ (151,343) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 5,539 | 2,043 |
Bad debts | (2,342) | 297 |
Intangibles written off | 769 | 636 |
Change in operating assets and liabilities: | ||
Accounts Receivable | 29,106 | (5,854) |
Inventory | (37,391) | 856 |
Advance to suppliers | (12,339) | |
Prepaid expenses and other current assets | 2,993 | (5,384) |
Deposits | (1,428) | |
Accounts payable and accrued expenses | 134,637 | (16,291) |
Customer deposits | 1,308 | 35,815 |
NET CASH USED IN OPERATING ACTIVITIES | 1,913 | (147,200) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (9,230) | (2,617) |
NET CASH USED IN INVESTING ACTIVITIES | (9,230) | (2,617) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of common stock for cash | 304,000 | |
Repayment of equipment financing | (1,906) | |
Advances from a related party | 7,577 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 5,671 | 304,000 |
NET (DECREASE) INCREASE IN CASH | (1,647) | 154,183 |
CASH - Beginning of period | 346,179 | 227,870 |
CASH - End of period | 344,532 | 382,053 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest | 519 | |
Income taxes |
Organization
Organization | 6 Months Ended |
Nov. 30, 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. |
Basis of Presentation, Going Co
Basis of Presentation, Going Concern and Summary of Significant Accounting Policies | 6 Months Ended |
Nov. 30, 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 three and six months ended November 30, 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 November 30, 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, 2019. The results of operations for the three months and six months ended November 30, 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 of $130,983 for the six months ended November 30, 2019. Additionally, the Company has an accumulated deficit of $4,769,125 at November 30, 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 continue its business plan, raise capital, and generate sufficient revenue; however, the Company’s cash position may not be sufficient to support its daily operations. 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 intangible assets, 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 $2,993 at November 30, 2019 and May 31, 2019, respectively, consist primarily of costs paid for future services which will occur within a year and cash prepayment to vendors. Prepaid expenses at May 31, 2019 primarily included cash prepayment to vendors. 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 care products. The Company recognizes revenue on a gross basis as a principal 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 11 for revenue disaggregation disclosures. Cost of Sales The primary components of cost of sales include the cost of the product and freight-in. 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 $10,314 and $9,154 for the three months ended November 30, 2019 and 2018, respectively. Shipping costs included in marketing and selling expense were $20,606 and $18,357 for the six months ended November 30, 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 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. The Company recorded impairment losses of $474 during the six months ended November 30, 2019. 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. Pursuant to ASC Topic 505-50, “Equity Based Payments to Non-employees”, for share-based payments to consultants and other third-parties, compensation expense is determined at the measurement date. The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. Net loss per share of common stock Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares during the period. Diluted net loss per share is computed using the weighted average number of common shares and potentially dilutive securities outstanding during the period. At November 30, 2019 and 2018, the Company had no potentially dilutive securities outstanding. Accounting Changes In February 2016, the FASB issued ASU No. 2016-02, Leases Leases Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) which modifies the disclosure requirements on fair value measurements under ASC Topic No. 820, Fair Value Measurement, as amended (“ASC 820”). For public companies, ASU 2018-13 removes (a) the prior requirement to disclose the amount and reason for transfers between Level 1 and Level 2 of the fair value hierarchy (please see Note 3 below for discussion of the three-level hierarchy for measuring fair value), (b) the policy for timing of transfers between levels, and (c) the valuation processes used for level 3 fair value measurements. For public companies, ASU 2018-13 also adds, among other things, a requirement to disclose the range and weighted average of significant unobservable inputs used in Level 3 fair value measurements. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption was permitted upon issuance of ASU 2018-13. The Company has not adopted ASU 2018-13 and, based on its preliminary assessment, does not believe the impact of adoption will be material 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. Reclassification Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations or cash flow. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Nov. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Note 3 – Accounts Receivable Accounts receivable, consisted of the following: November 30, 2019 May 31, 2019 Accounts Receivable $ 53,260 $ 82,365 Less: Allowance for doubtful debts (435 ) (2,777 ) $ 52,825 $ 79,588 The Company recorded bad debt recovery of $2,342 and bad debt expense of $297 during the six months ended November 30, 2019 and 2018, respectively. |
Inventory
Inventory | 6 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 4 – Inventory Inventory consisted of the following: November 30, 2019 May 31, 2019 Finished Goods $ 49,680 $ 69,256 Raw Materials $ 252,289 195,322 $ 301,969 $ 264,578 At November 30, 2019 and May 31, 2019, inventory held at third party locations amounted to $556 and $13,176, respectively. At November 30, 2019 and May 31, 2019, inventory in- transit amounted to $2,670 and $3,450, respectively. During the six months ended November 30, 2019 the Company sold some of the slow- moving inventory which had been written off and recovered $769. During the six months ended November 30, 2018, the Company wrote down inventory for obsolescence of $636 which is included in cost of sales. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Nov. 30, 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 November 30, 2019 May 31, 2019 Furniture and Fixtures 5 years $ 5,759 $ 5,759 Computer Equipment 3 years 17,392 17,392 Plant Equipment 5-10 years 29,720 20,490 Less:Accumulated Depreciation (16,377 ) (10,838 ) $ 36,494 $ 32,803 Depreciation expense amounted to $2,770 and $1,130 for the three months ended November 30, 2019 and 2018, respectively. Depreciation expense amounted to $5,539 and $2,043 for the six months ended November 30, 2019 and 2018, respectively. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Nov. 30, 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: November 30, 2019 May 31, 2019 Trade Payables $ 152,212 $ 14,610 Credit Cards 12,786 14,407 Other 2,109 3,454 $ 167,107 $ 32,471 |
Equipment Financing Payable
Equipment Financing Payable | 6 Months Ended |
Nov. 30, 2019 | |
Notes to Financial Statements | |
Equipment Financing Payable | Note 7 - Equipment Financing Payable During the year ended May 31, 2019, the Company purchased a forklift under an installment purchase plan. The loan amount is $16,500 payable in 60 monthly instalment payments of $317 comprising of principal payment of $275 and interest payment of $42. As of November 30, 2019, and May 31, 2019, the balance outstanding on the loan was $13,305 and $15,210. $3,300 of the loan is payable within one year and the balance $10,005, is payable after one year from November 30, 2019. The Company recorded an interest expense of $29 and $15, respectively on the loan in the accompanying unaudited financial statements for the six months and three months ended November 30, 2019. The amounts of loan payments due in the next five years ended November 30, are as follows: 2020 $ 3,300 2021 3,300 2022 3,300 2023 3,300 2024 105 $ 13,305 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Nov. 30, 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 As of November 30, 2019, 41,285,891 shares of common stock were outstanding. No stock was issued during the six months ended November 30, 2019. During the six months period ended November 30, 2018, the Company issued 760,000 shares of common stock for $304,000 cash proceeds to third party investors at $0.40 per share. During the six months period ended November 30, 2018, the Company recorded 12,500 shares of common stock for shares earned by third party consultant for providing services to the Company. The shares were valued at $0.40 per share or $5,000 based on recent common stock sales. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Nov. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – Commitments and Contingencies As discussed in Note 2 above, the Company adopted ASU No. 2016-02, Leases Subsequent to November 30, 2019, the Company signed an extension of the lease from December 1, 2019 for 3 years. The rent will be $7,567.34 per month for the first year and increase by a certain amount each year. Future minimum rental payments required under this operating lease are as follows: Total 1 Year 2 Year 3 Year Operating Lease $ 282,705 $ 90,808 $ 94,235 $ 97,662 Total $ 282,705 $ 90,808 $ 94,235 $ 97,662 The Company adopted ASC Topic 842 effective June 1, 2019 and pursuant to that the Company will record the initial lease liability and right-of-use asset, in regards to the lease on December 1, 2019. The Company’s right-of-use asset relates to lease involving office space and will be amortized over the lease term of three years. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Nov. 30, 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 November 30, 2019 and May 31, 2019, the Company had a payable to the officer of $7,787 and $210, respectively. These advances are due on demand and non-interest bearing. During the six months ended November 30, 2018, the Company paid $280 to an affiliated company for advisory services rendered. The affiliated company is managed by the Company’s Chief Executive Officer. |
Concentrations and Revenue Disa
Concentrations and Revenue Disaggregation | 6 Months Ended |
Nov. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations and Revenue Disaggregation | Note 11 – Concentrations and Revenue Disaggregation Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of trade accounts receivable and cash deposits, investments and cash equivalents instruments. The Company maintains its cash in bank deposits accounts. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At November 30, 2019 and May 31, 2019, the Company held cash of approximately $98,330 and $102,454, respectively, in excess of federally insured limits. The Company has not experienced any losses in such accounts through November 30, 2019. Concentration of Revenue, Product Line, and Supplier During the three months ended November 30, 2019 sales to one customer, which represented over 10% of our total sales at 48%. During the six months ended November 30, 2019 sales to three customers, which each represented over 10% of our total sales, aggregated to approximately 55% of the Company’s net sales at 35%, 10% and 11%. During the three months ended November 30, 2018 sales to two customers, which each represented over 10% of our total sales, aggregated to approximately 51% of the Company’s net sales at 37% and 14%. During the six months ended November 30, 2018 sales to two customers, which each represented over 10% of our total sales, aggregated to approximately 45% of the Company’s net sales at 30% and 15%. During the three months ended November 30, 2019, sales to customers outside the United States represented approximately 21% which consisted of 13% from Canada and 8% from Italy and during the six months ended November 30, 2019, sales to customers outside the United States represented approximately 30% which consisted of 18% from Canada, 10% from Italy and 2% from UK. During the three months ended November 30, 2018 sales to customers outside the United States represented approximately 39% which consisted of 19% from Canada, 14% from Italy, 1% from UK and 5% from Hong Kong. During the six months ended November 30, 2018 sales to customers outside the United States represented approximately 37% which consisted of 23% from Canada, 9% from Italy, 5% from Hong Kong and 1% from United Kingdom. During the six months ended November 30, 2019, sales by product lines which each represented over 10% of sales consisted of approximately 16% from sales of prep cleanser and shampoo, 10% from sale of moisturizer and conditioner, 19% from sale of introductory kit (shampoo, conditioner and treatment spray) and 35% from sale of fragrance shampoo and conditioner. During the six month period ended November 30, 2018, sales by product line which each represented over 10% of sales consisted of approximately 18% from sales of prep shampoo and conditioner, 13% from sales of moisturizer and conditioner, 15% from sale of fragrance shampoo and conditioner and 21% from sale of introductory kit (shampoo, conditioner and treatment spray). During the six months ended November 30, 2019 and 2018, sales by product line comprised of the following: For the Six months ended November 30, Hair Care Products 2019 2018 Shampoos and Conditioners 88 % 87 % Ancillary Products 12 % 13 % Total 100 % 100 % As of November 30, 2019, accounts receivable from three customers which each represented over 10% of total sales represented approximately 87% at 31%, 30%, and 26% and at May 31, 2019, accounts receivable from five customers represented approximately 94% at 30%, 13%, 23%, 14% and 14%, respectively. The Company purchased inventories and products from two vendors totaling approximately $196,962 (88% of the purchases at 76% and 12%) and three vendors totaling approximately $241,220 (75% of the purchases) during the six months ended November 30, 2019 and 2018, respectively. |
Basis of Presentation, Going _2
Basis of Presentation, Going Concern and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited financial statements for the three and six months ended November 30, 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 November 30, 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, 2019. The results of operations for the three months and six months ended November 30, 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 of $130,983 for the six months ended November 30, 2019. Additionally, the Company has an accumulated deficit of $4,769,125 at November 30, 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 continue its business plan, raise capital, and generate sufficient revenue; however, the Company’s cash position may not be sufficient to support its daily operations. 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 intangible assets, 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 $2,993 at November 30, 2019 and May 31, 2019, respectively, consist primarily of costs paid for future services which will occur within a year and cash prepayment to vendors. Prepaid expenses at May 31, 2019 primarily included cash prepayment to vendors. |
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 care products. The Company recognizes revenue on a gross basis as a principal 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 11 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. |
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 $10,314 and $9,154 for the three months ended November 30, 2019 and 2018, respectively. Shipping costs included in marketing and selling expense were $20,606 and $18,357 for the six months ended November 30, 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 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. The Company recorded impairment losses of $474 during the six months ended November 30, 2019. |
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. Pursuant to ASC Topic 505-50, “Equity Based Payments to Non-employees”, for share-based payments to consultants and other third-parties, compensation expense is determined at the measurement date. The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. |
Net loss per share of common stock | Net loss per share of common stock Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares during the period. Diluted net loss per share is computed using the weighted average number of common shares and potentially dilutive securities outstanding during the period. At November 30, 2019 and 2018, the Company had no potentially dilutive securities outstanding. |
Accounting Changes | Accounting Changes In February 2016, the FASB issued ASU No. 2016-02, Leases Leases |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) which modifies the disclosure requirements on fair value measurements under ASC Topic No. 820, Fair Value Measurement, as amended (“ASC 820”). For public companies, ASU 2018-13 removes (a) the prior requirement to disclose the amount and reason for transfers between Level 1 and Level 2 of the fair value hierarchy (please see Note 3 below for discussion of the three-level hierarchy for measuring fair value), (b) the policy for timing of transfers between levels, and (c) the valuation processes used for level 3 fair value measurements. For public companies, ASU 2018-13 also adds, among other things, a requirement to disclose the range and weighted average of significant unobservable inputs used in Level 3 fair value measurements. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption was permitted upon issuance of ASU 2018-13. The Company has not adopted ASU 2018-13 and, based on its preliminary assessment, does not believe the impact of adoption will be material 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. |
Reclassification | Reclassification Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations or cash flow. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable, consisted of the following: November 30, 2019 May 31, 2019 Accounts Receivable $ 53,260 $ 82,365 Less: Allowance for doubtful debts (435 ) (2,777 ) $ 52,825 $ 79,588 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventory consisted of the following: November 30, 2019 May 31, 2019 Finished Goods $ 49,680 $ 69,256 Raw Materials $ 252,289 195,322 $ 301,969 $ 264,578 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment, stated at cost, consisted of the following: Estimated Life November 30, 2019 May 31, 2019 Furniture and Fixtures 5 years $ 5,759 $ 5,759 Computer Equipment 3 years 17,392 17,392 Plant Equipment 5-10 years 29,720 20,490 Less:Accumulated Depreciation (16,377 ) (10,838 ) $ 36,494 $ 32,803 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses comprised of the following: November 30, 2019 May 31, 2019 Trade Payables $ 152,212 $ 14,610 Credit Cards 12,786 14,407 Other 2,109 3,454 $ 167,107 $ 32,471 |
Equipment Financing Payable (Ta
Equipment Financing Payable (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Notes to Financial Statements | |
Schedule of Loan Payment Due | The amounts of loan payments due in the next five years ended November 30, are as follows: 2020 $ 3,300 2021 3,300 2022 3,300 2023 3,300 2024 105 $ 13,305 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments required under operating lease | During the six months ended November 30, 2019 and 2018, sales by product line comprised of the following: For the Six months ended November 30, Hair Care Products 2019 2018 Shampoos and Conditioners 88 % 87 % Ancillary Products 12 % 13 % Total 100 % 100 % |
Concentrations and Revenue Aggr
Concentrations and Revenue Aggregation (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Concentrations And Revenue Aggregation | |
Schedule of Sales by Product Line | During the six months ended November 30, 2019 and 2018, sales by product line comprised of the following: Products 2019 2018 Prep Cleanser & Shampoo $ 71,990 $ 68,853 Moisturizer & Conditioner 46,233 48,611 Treatment Spray 22,398 21,917 Cellular Complex 22,623 23,716 Hair masque 7,404 5,671 Thickening spray 7,154 21,581 Introductory kit 85,862 82,726 Fragrance shampoo and conditioner 157,326 84,696 Thermal protect 6,038 16,568 Bundle 10,528 2,421 Others 16,678 4,579 Total $ 454,234 $ 381,339 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | May 31, 2019 | |
Accounting Policies [Abstract] | |||||
Net loss | $ 30,374 | $ 58,039 | $ 130,983 | $ 151,343 | |
Accumulated deficit | 4,769,125 | 4,769,125 | $ 4,638,142 | ||
Prepaid expenses and other current assets | $ 2,993 | ||||
Shipping costs | $ 10,314 | $ 9,154 | $ 20,606 | $ 18,357 | |
Potentially dilutive securities outstanding, shares |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Nov. 30, 2019 | May 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable | $ 53,260 | $ 82,365 |
Less: Allowance for bad debts | (435) | (2,777) |
Accounts receivable, net | $ 52,825 | $ 79,588 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) - USD ($) | 6 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Accounts Receivable (Textual) | ||
Bad debt expense | $ (2,342) | $ 297 |
Inventory (Details)
Inventory (Details) - USD ($) | Nov. 30, 2019 | May 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 49,680 | $ 69,256 |
Raw materials | 252,289 | 195,321 |
Inventory, net | $ 301,969 | $ 264,578 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | May 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Inventory held at third party locations | $ 556 | $ 13,176 | |
Write Down of Inventory for Obsolescence which is included in Cost of Sales | 769 | $ 636 | |
Inventory in Transit | $ 2,670 | $ 3,450 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 6 Months Ended | |
Nov. 30, 2019 | May 31, 2019 | |
Less: Accumulated depreciation | $ (16,377) | $ (10,838) |
Property and equipment net | $ 36,494 | 32,803 |
Furniture and Fixtures [Member] | ||
Estimated life | 5 years | |
Property and equipment gross | $ 5,759 | 5,759 |
Computer Equipment [Member] | ||
Estimated life | 3 years | |
Property and equipment gross | $ 17,392 | 17,392 |
Furniture and Fixtures [Member] | ||
Property and equipment gross | $ 29,720 | $ 20,490 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Estimated life | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Estimated life | 10 years |
Property and Equipment (Detai_2
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Property and Equipment (Textual) | ||||
Depreciation expense | $ 2,770 | $ 1,130 | $ 5,539 | $ 2,043 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) | Nov. 30, 2019 | May 31, 2019 |
Payables and Accruals [Abstract] | ||
Trade Payables | $ 152,212 | $ 14,610 |
Credit Cards | 12,786 | 14,407 |
Other | 2,109 | 3,454 |
Accounts Payable and Accrued Expenses, net | $ 167,107 | $ 32,471 |
Equipment Financing Payable (De
Equipment Financing Payable (Details) - USD ($) | Nov. 30, 2019 | May 31, 2019 |
Notes to Financial Statements | ||
2020 | $ 3,300 | $ 3,300 |
2021 | 3,300 | |
2022 | 3,300 | |
2023 | 3,300 | |
2024 | 105 | |
Total | $ 13,305 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - $ / shares | Nov. 30, 2019 | May 31, 2019 |
Stockholders' Equity (Textual) | ||
Shares of common stock, Shares | 100,000,000 | 100,000,000 |
Shares of common stock, par value | $ 0.0001 | $ 0.0001 |
Shares of preferred stock, Shares | 20,000,000 | 20,000,000 |
Shares of preferred stock, par value | $ 0.0001 | $ 0.0001 |
Shares of Common Stock, Outstanding, Shares | 41,285,881 | 41,285,881 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Nov. 30, 2019USD ($) |
Schedule of Future minimum rental payments for operating lease | |
1 Year | $ 90,808 |
2 Years | 94,235 |
3 Years | 97,662 |
Total | $ 282,705 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Commitments and Contingencies (Textual) | ||||
Lease agreement, description | Subsequent to November 30, 2019, the Company signed an extension of the lease from December 1, 2019 for 3 years. The rent will be $7,567.34 per month for the first year and increase by a certain amount each year. | |||
Lease agreement period | 3 years | 3 years | ||
Monthly base rent | $ 7,567 | |||
Lease rent expense | $ 22,470 | $ 23,880 | $ 47,547 | $ 47,537 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Nov. 30, 2019 | May 31, 2019 |
Related Party Transactions (Textual) | ||
Amount payable to officers | $ 7,787 | $ 210 |
Concentrations and Revenue Ag_2
Concentrations and Revenue Aggregation (Details Narrative) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Nov. 30, 2019USD ($)Customer | Nov. 30, 2018Customer | Nov. 30, 2019USD ($)CustomerVendor | Nov. 30, 2018USD ($)Vendor | May 31, 2019USD ($)Customer | |
Concentrations (Textual) | |||||
Amount of FDIC | $ 250,000 | $ 250,000 | |||
Held in cash | $ 98,330 | $ 98,330 | $ 102,454 | ||
Sales Revenue, Net [Member] | |||||
Concentrations (Textual) | |||||
Number of customers | 1 | 2 | 3 | 2 | |
Concentration risk percentage | 48.00% | 51.00% | 55.00% | 45.00% | |
Sales Revenue, Net [Member] | Outside UNITED STATES [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 21.00% | 39.00% | 30.00% | 37.00% | |
Sales Revenue, Net [Member] | CANADA [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 13.00% | 19.00% | 18.00% | 23.00% | |
Sales Revenue, Net [Member] | Italy [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 8.00% | 14.00% | 10.00% | 9.00% | |
Sales Revenue, Net [Member] | United Kingdom [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 1.00% | 2.00% | 1.00% | ||
Sales Revenue, Net [Member] | Hong Kong [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 5.00% | 5.00% | |||
Sales Revenue, Net [Member] | Prep Cleanser And Shampoo [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 29.00% | ||||
Sales Revenue, Net [Member] | Customer One [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 48.00% | 37.00% | 35.00% | 30.00% | |
Sales Revenue, Net [Member] | Customer Two [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 14.00% | 10.00% | 15.00% | ||
Sales Revenue, Net [Member] | Customer Three [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 11.00% | ||||
Accounts Receivable [Member] | |||||
Concentrations (Textual) | |||||
Number of customers | Customer | 3 | 5 | |||
Concentration risk percentage | 87.00% | 94.00% | |||
Accounts Receivable [Member] | Customer One [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 31.00% | 30.00% | |||
Accounts Receivable [Member] | Customer Two [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 30.00% | 13.00% | |||
Accounts Receivable [Member] | Customer Three [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 26.00% | 23.00% | |||
Accounts Receivable [Member] | Customer Four [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 14.00% | ||||
Accounts Receivable [Member] | Customer Five [Member] | |||||
Concentrations (Textual) | |||||
Concentration risk percentage | 14.00% | ||||
Vendors [Member] | |||||
Concentrations (Textual) | |||||
Number of vendors | Vendor | 2 | 3 | |||
Purchased inventories and products | $ 196,692 | $ 241,220 | |||
Percentage of purchases | 88.00% | 75.00% | |||
Vendors [Member] | Vendors One [Member] | |||||
Concentrations (Textual) | |||||
Percentage of purchases | 76.00% | ||||
Vendors [Member] | Vendors Two [Member] | |||||
Concentrations (Textual) | |||||
Percentage of purchases | 12.00% |
Concentrations and Revenue Ag_3
Concentrations and Revenue Aggregation (Details) - Sales Revenue, Net [Member] | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Sales, Percent | 48.00% | 51.00% | 55.00% | 45.00% |
Shampoos and Conditioners [Member] | ||||
Sales, Percent | 88.00% | 87.00% | ||
Ancillary Products [Member] | ||||
Sales, Percent | 12.00% | 13.00% | ||
Product [Member] | ||||
Sales, Percent | 100.00% | 100.00% |