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Concentrations

3 Months Ended

Aug. 31, 2024

Risks and Uncertainties [Abstract]

Concentrations

Note 12 – 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, 2024 and May 31, 2024, the Company held cash of approximately $3,359,634 and $3,003,876, respectively, in excess of federally insured limits. The Company has not experienced any losses in such accounts through August 31, 2024.

Concentration of Revenue, Accounts Receivable, Product Line, and Supplier

The Company predominantly sells the products direct-to-consumer. Therefore, 71% and 82% of sales was direct to customers during the three months ended August 31, 2024 and 2023, respectively. There was no single customer that accounted for greater than 10% of total sales in those periods.

During the three months ended August 31, 2024, sales to customers outside the United States represented approximately 7.94% of total sales. During the three months ended August 31, 2023, sales of AXIL product to customers outside the United States represented 5.3% of total sales.

Manufacturing is outsourced primarily overseas via a number of third-party vendors, the two largest vendors accounted for 64% and 19% of all purchases for the three months ended August 31, 2024. For the three months ended August 31, 2023, the four largest vendors accounted for 43.6%, 14.2%, 14% and 13.7% of all purchases.

During the three months ended August 31, 2024, gross sales of which each represented over 10% of gross sales consisted approximately 25% from Ghost Stryke and 49% of gross sales of other Bluetooth and ear buds. During the three months ended August 31, 2023, gross sales which represented over 10% of gross sales was 53% from Ghost Stryke model GS-X, 11% from Trackr earmuffs and 30% from Bluetooth earmuffs.

During the three months ended August 31, 2024 and 2023 gross sales products comprised of the following:

Schedule of sales by product line
		For The Three Months Ended August 31,
		2024				2023
In- ear protection devices			74	%			83	%
Outside- ear protection devices			10	%			11	%
Accessories and others			7	%			1	%
Hair and Skin Care products			9	%			5	%
Total			100	%			100	%

X

- 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

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- References

No definition available.

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