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Concentrations | 3 Months Ended
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Aug. 31, 2023
Risks and Uncertainties [Abstract] |
Concentrations | Note 14 – Concentrations 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 August 31, 2023 and May 31, 2023, the Company held cash of approximately $4,309,828 and $4,582,682, respectively, in excess of federally insured limits. The Company has not experienced any losses in such accounts through August 31, 2023. Concentration of Revenue, Accounts Receivable, Product Line, and Supplier – Hair and Skin Care Products During the three months ended August 31, 2023 hair and skin care product sales to three customers, which each represented over 10% of our total sales, aggregated to approximately 40% of the Company’s net sales at 13%, 12% and 15%. During the three months ended August 31, 2022, there were no sales to any customer, which represented over 10% of our total sales. During the three months ended August 31, 2023 hair and skin care product sales to customers outside the United States represented approximately 31% to Canada. During the three months ended August 31, 2022, sales to customers outside the United States represented approximately 7% which consisted of 5% from Canada and the balance from several other countries. During the three months ended August 31, 2023, hair and skin care product sales by product line which each represented over 10% of sales consisted of approximately 17% from sales of hair shampoo, and 28% from sales of hair conditioner, 7% from shampoo and conditioner bundles, 30% from bundle kits and 18% from hair treatment product. During the three months ended August 31, 2022, hair and skin care product sales by product line which each represented over 10% of sales consisted of approximately 11% from sales of hair shampoo, 34% from sales of hair shampoo and conditioner, and 35% from sale of bundle kits (shampoo, conditioner and spray). During the three months ended August 31, sales by product line comprised of the following:
Schedule of sales by product line |  |  |  |  |  |  |  |
|  | For the Three Months ended |
Hair Care Products |  | August 31, 2023 |  |  | August 31, 2022 |
Shampoos and Conditioners |  |  | 52 | % |  |  | 45 | %
Bundle Kits |  |  | 30 | % |  |  | 35 | %
Ancillary Products |  |  | 18 | % |  |  | 20 | %
Total |  |  | 100 | % |  |  | 100 | %
At August 31, 2023, hair and skin care product’s only accounts receivables from customers that accounted for more than 10% of sales transactions were from three separate customers at 36%, 26%, and 23%. At May 31, 2023, hair and skin care product’s only accounts receivable from one customer accounted for more than 10% of sales transactions. The Company purchased inventories and products from two vendors totaling approximately $84,000 for the three months ended August 31, 2023. Hair and skin care inventory product purchased from three vendors totaling approximately $297,833, (95% of the purchases at 61%, 12% and 22%) during the fiscal year ended May 31, 2023. Concentration of Revenue, Accounts Receivable, Product Line, and Supplier – Ear Protection and Enhancement Products AXIL is sold direct-to-consumer, therefore, during the three months ended August 31, 2023, 96.3% of sales was direct to customers. There was no single customer that accounted for greater than 10% of total sales. During the three months ended August 31, 2022, 96.4% of sales was direct to customers, with no single customer that accounted for greater than 10% of total sales in that period. During the three months ended August 31, 2023 AXIL sales to customers outside the United States represented approximately 4.9% which consisted of 4.2% from Canada and the remaining from various countries. During the three months ended August 31, 2022 sales of AXIL product to customers outside the United States represented 4.4% which consisted of 3.9% from Canada and the remaining from various countries. Manufacturing is outsourced primarily overseas via a number of third-party vendors, the largest vendor accounted for 94.6% of all purchases for the three months ended August 31, 2023. For the fiscal year ended May 31, 2023, the two largest vendors accounted for 82% and 10% of all purchases. During the three months ended August 31, 2023, AXIL sale of ear buds for PSAP (personal sound amplification product) and hearing protection by product line which each represented over 10% of sales consisted approximately 55.9% ($5.1M) from Ghost Stryke, 11.2% ($11.2M) from Trackr earmuffs and 32.8% ($3.0M) of sales of other Bluetooth and ear buds. During the three months ended August 31, 2022, AXIL sale of ear buds and hearing protection by product line which represented over 10% of sales was 90.7% from Ghost Stryke model GS-X ($5.5M). During the three months ended August 31, 2023 sales by hearing enhancement and protection products comprised of the following:
Schedule of sales by product comprised |  |  |  |  |  |
|  | For the three months ended |
|  | August 31, |  |  | August 31, |
Ear Protection & Enhancement Products |  | 2023 |  |  | 2022 |
Ghost Stryke |  |  | 55.9 | % |  |  | 90.7 | %
Trackr Earmuffs |  |  | 11.2 | % |  |  | 8.2 | %
Other Bluetooth and ear buds |  |  | 32.8 | % |  |  | 1.0 | %
Accessories, other |  |  | 0.1 | % |  |  | 0.1 | %
Total |  |  | 100.0 | % |  |  | 100.0 | %

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- Definition The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 275 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//275/tableOfContent + Details
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