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Maison Solutions Inc. (MSS-1.99%) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing includes financial statements for the quarter, showing an increase in net revenues to $34,149,223 from $13,598,479 in the same quarter the previous year. This increase is attributed to the acquisition of Lee Lee Oriental Supermart, Inc.
Cost of revenues for the quarter was $26,607,590, compared to $10,410,684 in the same quarter of the previous year. The increase is primarily due to the inclusion of Lee Lee's operations.
The company reported a gross profit of $7,541,633 for the quarter, compared to $3,187,795 in the previous year, with the increase attributed to the acquisition of Lee Lee.
Selling expenses increased to $4,852,417 from $2,438,846, primarily due to increased payroll and utility expenses following the acquisition.
General and administrative expenses rose to $1,574,752 from $1,056,118, driven by increased office expenses and amortization costs.
Net income for the quarter was $995,165, compared to a net loss of $535,556 in the previous year. After adjustments for noncontrolling interests, net income attributable to Maison Solutions Inc. was $1,011,763, compared to a net loss of $548,954 in the previous year.
Cash provided by operating activities was $6,386,143, while cash used in investing and financing activities was $216,427 and $5,725,460, respectively.
Maison had a working capital deficit of $11.5 million as of January 31, 2025. The company plans to increase revenue through various strategies, including expanding its supermarket network.
The filing details the acquisition of Lee Lee Oriental Supermart, Inc., including a purchase price of approximately $22.2 million, with $7.0 million paid in cash and the remainder in a secured promissory note.
The company identified material weaknesses in its internal controls over financial reporting, including insufficient accounting expertise and issues with inventory management.
Maison Solutions Inc. continues to focus on expanding its supermarket operations and improving its financial controls.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Maison Solutions Inc. quarterly 10-Q report dated March 17, 2025. To report an error, please email earnings@qz.com.