Axil Brands Files 10-Q, Details Financials

TL;DR

Axil Brands 10-Q filed. Financials for Aug 31, 2024 period out. Check capital structure.

AI Summary

Axil Brands, Inc. filed its 10-Q for the period ending August 31, 2024. The company, formerly Reviv3 Procare Co, is in the cosmetics and toiletries industry. Financial details for the reporting period and comparative periods are included, with specific data points on preferred stock, common stock, additional paid-in capital, and retained earnings as of May 31, 2024, and May 31, 2023.

Why It Matters

This filing provides investors with a quarterly update on Axil Brands' financial health and capital structure, crucial for understanding its operational performance and investment potential.

Risk Assessment

Risk Level: medium — The filing is a standard 10-Q, but without specific performance metrics or forward-looking statements, assessing the immediate risk is difficult.

Key Numbers

• 0531 — Fiscal Year End (Indicates the company's annual financial reporting cycle.)
• 2024-08-31 — Reporting Period End (Defines the end date for the financial data presented in this 10-Q.)
• 2023-08-31 — Prior Year Period End (Provides a comparative period for the current reporting quarter.)

Key Players & Entities

• Axil Brands, Inc. (company) — Filer of the 10-Q
• Reviv3 Procare Co (company) — Former name of Axil Brands, Inc.
• August 31, 2024 (date) — End of the reporting period
• May 31, 2024 (date) — Fiscal year-end and balance sheet date
• May 31, 2023 (date) — Prior fiscal year-end and balance sheet date

FAQ

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value per share AXIL The NYSE A

Filing Documents

• axil-20240831_10q.htm (10-Q) — 617KB
• axil-20240831_10qex10z1.htm (EX-10.1) — 56KB
• axil-20240831_10qex31z1.htm (EX-31.1) — 12KB
• axil-20240831_10qex31z2.htm (EX-31.2) — 12KB
• axil-20240831_10qex32z1.htm (EX-32.1) — 6KB
• axil-20240831_10qex32z2.htm (EX-32.2) — 6KB
• image_01.jpg (GRAPHIC) — 7KB
• 0001520138-24-000344.txt ( ) — 4580KB
• axil-20240831.xsd (EX-101.SCH) — 41KB
• axil-20240831_cal.xml (EX-101.CAL) — 52KB
• axil-20240831_def.xml (EX-101.DEF) — 120KB
• axil-20240831_lab.xml (EX-101.LAB) — 315KB
• axil-20240831_pre.xml (EX-101.PRE) — 267KB
• axil-20240831_10q_htm.xml (XML) — 554KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 2 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 6 Item 4.

Controls and Procedures

Controls and Procedures 6

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 7 Item 1A.

Risk Factors

Risk Factors 7 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 7 Item 3. Defaults Upon Senior Securities 7 Item 4. Mine Safety Disclosures 7 Item 5. Other Information 7 Item 6. Exhibits 8

Signatures

Signatures 9 -i- CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q, and in particular

, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains certain

Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking for future liquidity and capital resource needs; the expected impact of changes in accounting policies on our results of operations, financial condition or cash flows; anticipated problems and our plans for future operations, including expected growth; and the economy in general or the future of the beauty and hair care industry and the hearing protection and ear bud business, all of which are subject to various risks and uncertainties. There are a number of factors that could cause our actual results to differ from those indicated in the forward-looking statements, many of which are outside of our control. They include: the impact of unstable market and general economic conditions on our business, financial condition and stock price, including inflationary cost pressures, interest rate changes, decreased discretionary consumer spending, supply chain disruptions and constraints, labor shortages, ongoing economic disruption, the possibility of an economic recession and other macroeconomic factors, geopolitical events and uncertainty, including the effects of the Ukraine-Russia conflict and the Israel-Hamas conflict, and other downturns in the business cycle or the economy; our financial performance and liquidity, including our ability to successfully generate sufficient revenue to support our operations; our expectations regarding our finan

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS

Financial Statements

Financial Statements: Consolidated Balance Sheets - As of August 31, 2024 (Unaudited) and May 31, 2024 F-1 Consolidated Statements of Operations - For the three months ended August 31, 2024 and 2023 (Unaudited) F-2 Consolidated Statements of Changes in Stockholders' Equity - For the three months ended August 31, 2024 and 2023 (Unaudited) F-3 Consolidated Statements of Cash Flows – For the three months ended August 31, 2024 and 2023 (Unaudited) F-4 Condensed Notes to Unaudited Consolidated Financial Statements F-5 -1- AXIL BRANDS, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS August 31, 2024 May 31, 2024 (Unaudited) ASSETS CURRENT ASSETS: Cash $ 4,148,724 $ 3,253,876 Accounts receivable, net 599,150 509,835 Inventory, net 3,273,419 3,394,023 Prepaid expenses and other current assets 322,168 809,126 Total Current Assets 8,343,461 7,966,860 OTHER ASSETS: Property and equipment, net 251,055 260,948 Intangible assets, net 347,942 309,104 Right of use asset 18,284 36,752 Deferred tax asset 231,587 231,587 Other assets 12,195 16,895 Goodwill 2,152,215 2,152,215 Total Other Assets 3,013,278 3,007,501 TOTAL ASSETS $ 11,356,739 $ 10,974,361 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,373,106 $ 967,596 Customer deposits 74,053 154,762 Contract liabilities- current 938,498 905,311 Notes payable 144,257 146,594 Due to related party 53,505 11,798 Lease liability, current 18,650 36,752 Income tax liability 242,296 242,296 Other current liabilities 229,848 332,936 Total Current Liabilities 3,074,213 2,798,045 LONG TERM LIABILITIES: Contract liabilities- long term 398,681 480,530 Total Long Term Liabilities 398,681 480,530 Total Liabilities 3,472,894 3,278,575 Commitments and contingencies (see Note 10) - - STOCKHOLDERS' EQUITY: Preferred stock, $ 0.0001 par value; 300,000,000 shares authorized; 31,133,5

financial statements

financial statements. F-1 AXIL BRANDS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED AUGUST 31, 2024 AND 2023 (UNAUDITED) 2024 2023 Sales, net $ 5,851,272 $ 6,106,269 Cost of sales 1,697,624 1,458,703 Gross profit 4,153,648 4,647,566 OPERATING EXPENSES: Sales and marketing 2,669,471 3,206,841 Compensation and related taxes 190,648 279,989 Professional and consulting 947,849 426,775 General and administrative 486,382 560,204 Total Operating Expenses 4,294,350 4,473,809 INCOME (LOSS) FROM OPERATIONS ( 140,702 ) 173,757 OTHER INCOME (EXPENSE): Other income 2,266 9,835 Interest income 28,631 38,493 Interest expense and other finance charges - ( 1,644 ) Other Income (Expense), Net 30,897 46,684 INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES ( 109,805 ) 220,441 Provision (benefit) for income taxes - 65,989 NET INCOME (LOSS) $ ( 109,805 ) $ 154,452 NET INCOME (LOSS) PER COMMON SHARE: Basic $ ( 0.02 ) $ 0.03 Diluted $ ( 0.02 ) $ 0.01 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 6,172,379 5,853,847 Diluted 6,172,379 18,622,597 See accompanying notes to these unaudited consolidated

financial statements

financial statements. F-2 AXIL BRANDS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE MONTHS ENDED AUGUST 31, 2024 AND 2023 (UNAUDITED) For the three months ended August 31, 2024 Common Stock Total Preferred Stock Issued/Issuable Additional Paid-in Accumulated Stockholders' Shares Amount Shares Amount Capital Deficit Equity Balance, May 31, 2024 42,251,750 $ 4,225 5,908,939 $ 591 $ 7,825,240 $ ( 134,270 ) $ 7,695,786 Stock options expense - - - - 72,632 - 72,632 Stock based compensation - - - - 225,232 - 225,232 Preferred Stock converted to Common Stock ( 11,118,250 ) ( 1,112 ) 555,913 56 1,056 - - Net loss for the three months ended August 31, 2024 - - - - - ( 109,805 ) ( 109,805 ) Balance, August 31, 2024 31,133,500 $ 3,113 6,464,852 $ 647 $ 8,124,160 $ ( 244,075 ) $ 7,883,845 For the three months ended August 31, 2023 Common Stock Total Preferred Stock Issued And Issuable Additional Paid-in Accumulated Stockholders' Shares Amount Shares Amount Capital Deficit Equity Balance, May 31, 2023 250,000,000 $ 25,000 5,863,939 $ 586 $ 10,113,365 $ ( 3,466,992 ) $ 6,671,959 Stock options expense - - - - 51,107 - 51,107 Net income for the three months ended August 31, 2023 - - - - - 154,452 154,452 Balance, August 31, 2023 250,000,000 $ 25,000 5,863,939 $ 586 $ 10,164,472 $ ( 3,312,540 ) $ 6,877,518 See accompanying notes to these unaudited consolidated

financial statements

financial statements. F-3 AXIL BRANDS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED AUGUST 31, 2024 AND 2023 (UNAUDITED) August 31, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ ( 109,805 ) $ 154,452 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 12,895 28,237 Bad debts 18,785 52,866 Stock-based compensation 297,864 51,107 Change in operating assets and liabilities: Accounts receivable ( 108,100 ) ( 91,736 ) Inventory 120,603 ( 758,104 ) Prepaid expenses and other current assets 486,958 315,751 Accounts payable and accrued expenses 405,511 168,399 Other current liabilities ( 178,731 ) 438,006 Contract liabilities ( 48,662 ) 38,194 NET CASH PROVIDED BY OPERATING ACTIVITIES 897,318 397,172 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of intangibles ( 41,840 ) - Purchase of property and equipment - ( 50,960 ) NET CASH USED IN INVESTING ACTIVITIES ( 41,840 ) ( 50,960 ) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of equipment financing - ( 825 ) Repayment of note payable ( 2,337 ) ( 17,254 ) Advances (payments) from a related party 41,707 ( 99,092 ) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 39,370 ( 117,171 ) NET INCREASE IN CASH 894,848 229,041 CASH - Beginning of period 3,253,876 4,832,682 CASH - End of period $ 4,148,724 $ 5,061,723 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ - $ 1,644 Income taxes $ - $ - See accompanying notes to these unaudited consolidated

financial statements

financial statements. F-4 AXIL BRANDS, INC. AND SUBSIDIARY CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL AUGUST 31, 2024 Note 1 – Organization As part of AXIL Brands, Inc.'s (together with its subsidiary, the "Company," "we," "us" or "our") ongoing rebranding efforts, the Company changed its name from Reviv3 Procare Company to AXIL Brands, Inc. effective February 14, 2024. Reviv3 was incorporated in the corporate headquarters are located at 901 S. Fremont Avenue, Unit 158, Alhambra, California 91803. Its phone number is (888) 638-8883. In March 2022, the Company incorporated a subsidiary "Reviv3 Acquisition Corporation" (now known as "AXIL Distribution Company") and in June 2022, completed the acquisition of certain assets of Axil & Associated Brands Corp. ("A&A"). The Company is engaged in the manufacturing, marketing, sale and distribution of high-tech hearing and audio enhancement and protection products that provide cutting edge solutions for consumers, with varied applications across many industries; as well as professional quality hair and skin care products. These products lines are both sold throughout the United or OTC, markets to the NYSE American stock exchange ("NYSE American"). Note 2 – Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). In the opinion of the management, all adjustments necessary to present fairly our financial position, results of operations, and cash flows as of August 31, 2024 and 2023, and for the

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