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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.