Maison Solutions Inc. Files Q3 2024 10-Q

Ticker: MSS · Form: 10-Q · Filed: Dec 16, 2024 · CIK: 1892292

Sentiment: neutral

Topics: 10-Q, quarterly-report, retail

TL;DR

Maison Solutions filed its 10-Q for Q3 2024. All good.

AI Summary

Maison Solutions Inc. filed its quarterly report on Form 10-Q for the period ended October 31, 2024. The company, incorporated in Delaware, operates in the grocery store retail sector. Its principal executive offices are located at 127 N Garfield Ave, Monterey Park, California.

Why It Matters

This filing provides investors with an update on Maison Solutions Inc.'s financial performance and operational status for the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing with no immediate red flags or significant new information presented.

Key Players & Entities

FAQ

What is the primary business of Maison Solutions Inc.?

Maison Solutions Inc. operates in the RETAIL-GROCERY STORES sector, as indicated by its Standard Industrial Classification code [5411].

When is Maison Solutions Inc.'s fiscal year end?

Maison Solutions Inc.'s fiscal year ends on April 30th (0430).

What is the filing date of this 10-Q report?

This 10-Q report was filed on December 16, 2024.

What is the company's principal executive office address?

The principal executive offices are located at 127 N Garfield Ave, Monterey Park, California, 91754.

What is the telephone number for Maison Solutions Inc.?

The registrant's telephone number is (626) 737-5888.

Filing Stats: 4,415 words · 18 min read · ~15 pages · Grade level 15.3 · Accepted 2024-12-16 17:02:32

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Consolidated Balance Sheets as of October 31, 2024 (Unaudited) and April 30, 2024 (Audited) 1 Consolidated Statements of Operations for the Three and Six Months Ended October 31, 2024 and 2023 (Unaudited) 2 Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months Ended October 31, 2024 and 2023 (Unaudited) 3 Consolidated Statements of Cash Flows for the Six Months Ended October 31, 2024 and 2023 (Unaudited) 4

Notes to Financial Statements (Unaudited)

Notes to Financial Statements (Unaudited) 5 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 32 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 48

OTHER INFORMATION

PART II. OTHER INFORMATION 50 Item 1.

Legal Proceedings

Legal Proceedings 50 Item 1A.

Risk Factors

Risk Factors 50 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 50 Item 3. Defaults Upon Senior Securities 50 Item 4. Mine Safety Disclosures 50 Item 5. Other Information 50 Item 6. Exhibits 51

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MAISON SOLUTIONS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS October 31, 2024 (Unaudited) April 30, 2024 ASSETS CURRENT ASSETS Cash $ 355,670 $ — Accounts receivable 105,730 111,874 Accounts receivable - related parties 546,913 459,647 Inventories, net 8,886,337 6,802,255 Prepayments 3,705,814 3,263,711 Other receivables and other current assets 640,860 1,240,786 Other receivable - related parties 98,995 33,995 Total current assets 14,340,319 11,912,268 NON-CURRENT ASSETS Restricted cash — 1,101 Property and equipment, net 2,220,054 2,334,963 Intangible assets, net 7,699,361 7,978,911 Security deposits 946,208 946,208 Investment under cost method 75,000 75,000 Investment under cost method - related parties 162,665 203,440 Investment under equity method 931,155 1,261,458 Operating lease right-of-use assets, net 39,404,733 40,726,647 Goodwill 16,957,147 16,957,147 Total non-current assets 68,396,323 70,484,875 TOTAL ASSETS $ 82,736,642 $ 82,397,143 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Book overdraft $ 1,323,117 $ 97,445 Accounts payable 9,056,643 5,394,423 Accounts payable - related parties 591,410 470,605 Accrued expenses and other payables 2,001,727 1,627,082 Other payables - related parties 505,324 491,586 Income tax payable 1,665,265 442,518 Contract liabilities 810,798 965,696 Operating lease liabilities, current 4,138,759 4,088,678 Loan payables, current 66,160 65,098 Notes payable, current 9,826,065 15,126,065 Total current liabilities 29,985,268 28,769,196 NON-CURRENT LIABILITIES Long-term loan payable 2,462,852 2,496,201 Security deposit from sub-tenants 124,428 125,114 Operating lease liabilities, non-current 37,912,048 39,015,252 Deferred tax liability, net 1,231,195 1,272,260 Total non-current liabilities 41,730,523 42,908,827 TOTAL LIABILITIES

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS OCTOBER 31, 2024 (UNAUDITED) AND APRIL 30, 2024 1. Organization Maison Solutions Inc. ("Maison", the "Company", and formerly known as "Maison International Inc.") was founded on July 24, 2019 as an Illinois corporation with its principal place of business in California. In September 2021, the Company was redomiciled in the State of Delaware as a corporation registered under the laws of the State of Delaware. Immediately upon formation, the Company acquired three retail Asian supermarkets with two brands (Good Fortune and Hong Kong Supermarkets) in Los Angeles, California and rebranded them as "HK Good Fortune Supermarkets." Upon completion of these acquisitions, these entities became controlled subsidiaries of the Company (hereafter collectively referred to as "Maison Group"). In July 2019, the Company purchased 91 % of the equity interests in Good Fortune Supermarket San Gabriel, LP ("Maison San Gabriel") and 85.25 % of the equity interests in Good Fortune Supermarket of Monrovia, LP ("Maison Monrovia"), each of which owns a Good Fortune Supermarket. In October 2019, the Company purchased 91.67 % of the equity interests in Super HK of El Monte, Inc. ("Maison El Monte"), which owns a Hong Kong Supermarket. On June 30, 2022, the Company purchased 100 % equity interest in GF Supermarket of MP, Inc. ("Maison Monterey Park"), the legal entity holding a supermarket in Monterey Park. On November 3, 2023, the Company incorporated a wholly-owned subsidiary, AZLL LLC ("AZLL"), in Arizona. On April 8, 2024, AZLL closed an acquisition transaction and purchased 100 % of the equity interests in Lee Lee Oriental Supermart, Inc. ("Lee Lee") for an aggregate purchase price of approximately $ 22.2 million, consisting of: (i) $ 7.0 million in cash paid immediately at the closing of the transaction, and (ii) a senior secured promissory note (the "Secured Note") with an original principal amount of approximately $ 15.2 million pursuant to a senior s

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