Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jul. 31, 2023 | Sep. 08, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | MAISON SOLUTIONS INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --04-30 | |
Amendment Flag | false | |
Entity Central Index Key | 0001892292 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jul. 31, 2023 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-41720 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-2498797 | |
Entity Address, Address Line One | 127 N Garfield Avenue | |
Entity Address, City or Town | Monterey Park | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91754 | |
City Area Code | (626) | |
Local Phone Number | 737-5888 | |
Entity Interactive Data Current | Yes | |
Class A Common Stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 13,760,000 | |
Class B Common Stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 2,240,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Current Assets | ||
Cash and equivalents | $ 1,612,081 | $ 2,569,766 |
Accounts receivable | 392,330 | 315,356 |
Accounts receivable - related parties | 255,073 | 289,615 |
Inventories, net | 2,871,049 | 2,978,986 |
Prepayments | 1,083,820 | 1,547,243 |
Other receivables and other current assets | 455,403 | 550,836 |
Other receivable - related parties | 33,995 | 33,995 |
Total Current Assets | 6,703,751 | 8,285,797 |
Restricted cash - non-current | 1,101 | 1,101 |
Property and equipment, net | 620,561 | 671,463 |
Intangible assets | 193,804 | 197,329 |
Security deposits | 457,491 | 457,491 |
Investment under cost method – related parties | 203,440 | 203,440 |
Investment under equity method | 1,411,544 | |
Operating lease right-of-use assets, net | 22,036,537 | 22,545,190 |
Goodwill | 2,222,211 | 2,222,211 |
Total Assets | 33,850,440 | 34,584,022 |
Current Liabilities | ||
Accounts payable | 2,950,695 | 3,105,592 |
Accounts payable - related parties | 469,782 | 465,310 |
Note payable | 150,000 | 150,000 |
Current portion of loan payables | 285,489 | 370,828 |
Accrued expenses and other payables | 809,001 | 867,796 |
Contract liabilities | 370,836 | 449,334 |
Other payables - related parties | 241,585 | 241,585 |
Operating lease liabilities - current | 1,780,559 | 1,761,182 |
Income taxes payable | 1,081,699 | 961,034 |
Total Current Liabilities | 8,139,646 | 8,372,661 |
Long-term loan payables | 2,545,221 | 2,561,299 |
Other long-term payables | 110,114 | 105,637 |
Operating lease liabilities - non-current | 22,251,277 | 22,711,760 |
Deferred tax liability, net | 38,649 | 40,408 |
Total Liabilities | 33,084,907 | 33,791,765 |
Commitment and contingencies (Note 18) | ||
Stockholders’ Equity (Deficit) | ||
Accumulated retained earnings | 417,771 | 522,710 |
Total Maison Solutions, Inc. Stockholders’ Equity | 419,371 | 524,310 |
Noncontrolling interests | 346,162 | 267,947 |
Total Stockholders’ Equity | 765,533 | 792,257 |
Total Liabilities and Stockholders’ Equity | 33,850,440 | 34,584,022 |
Class A Common Stock | ||
Stockholders’ Equity (Deficit) | ||
Common stock, value | 1,376 | 1,376 |
Class B Common Stock | ||
Stockholders’ Equity (Deficit) | ||
Common stock, value | $ 224 | $ 224 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jul. 31, 2023 | Apr. 30, 2023 |
Class A Common Stock | ||
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 92,000,000 | 92,000,000 |
Common stock, shares issued | 13,760,000 | 13,760,000 |
Common stock, shares outstanding | 13,760,000 | 13,760,000 |
Class B Common Stock | ||
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 3,000,000 | 3,000,000 |
Common stock, shares issued | 2,240,000 | 2,240,000 |
Common stock, shares outstanding | 2,240,000 | 2,240,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Net Revenues | ||
Total Revenues, Net | $ 13,752,315 | $ 11,409,688 |
Cost of Revenues | ||
Total Cost of Revenues | 10,646,219 | 9,104,839 |
Gross Profit | 3,106,096 | 2,304,849 |
Selling Expenses | 2,264,550 | 2,168,218 |
General and Administrative Expenses | 1,058,291 | 657,628 |
Total Operating Expenses | 3,322,841 | 2,825,846 |
Loss from Operations | (216,745) | (520,997) |
Other Income, net | 383,949 | 124 |
Investment loss | (28,456) | |
Interest Expense | (46,566) | (31,588) |
Total other Income (expenses), net | 308,927 | (31,464) |
Income (Loss) Before Income Taxes | 92,182 | (552,461) |
Income Tax Provisions | 118,906 | 17,926 |
Net Loss | (26,724) | (570,387) |
Net Income Attributable to Noncontrolling Interests | 78,215 | 26,653 |
Net Loss Attributable to Maison Solutions Inc. | $ (104,939) | $ (597,040) |
Loss per Share Attributable to Maison Solutions, Inc. | ||
Basic (in Dollars per share) | $ (0.01) | $ (0.04) |
Weighted Average Number of Common Stock Outstanding | ||
Basic (in Shares) | 16,000,000 | 16,000,000 |
Supermarket | ||
Net Revenues | ||
Total Revenues, Net | $ 13,752,315 | $ 11,409,688 |
Cost of Revenues | ||
Total Cost of Revenues | $ 10,646,219 | $ 9,104,839 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Income Statement [Abstract] | ||
Diluted | $ (0.01) | $ (0.04) |
Diluted | 16,000,000 | 16,000,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity (Deficit) (Unaudited) - USD ($) | Class A Common Stock | Class B Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Noncontrolling Interests | Total |
Balance at Apr. 30, 2022 | $ 1,376 | $ 224 | $ (729,093) | $ (119,551) | $ (847,044) | |
Balance (in Shares) at Apr. 30, 2022 | 13,760,000 | 2,240,000 | ||||
Net income (loss) | (597,040) | 26,653 | (570,387) | |||
Balance at Jul. 31, 2022 | $ 1,376 | $ 224 | (1,326,133) | (92,898) | (1,417,431) | |
Balance (in Shares) at Jul. 31, 2022 | 13,760,000 | 2,240,000 | ||||
Balance at Apr. 30, 2023 | $ 1,376 | $ 224 | 522,710 | 267,947 | 792,257 | |
Balance (in Shares) at Apr. 30, 2023 | 13,760,000 | 2,240,000 | ||||
Net income (loss) | (104,939) | 78,215 | (26,724) | |||
Balance at Jul. 31, 2023 | $ 1,376 | $ 224 | $ 417,771 | $ 346,162 | $ 765,533 | |
Balance (in Shares) at Jul. 31, 2023 | 13,760,000 | 2,240,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (26,724) | $ (570,387) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expenses | 67,236 | 141,498 |
Bad debt reversal | (105,322) | |
Provision for inventory shrinkage reserve | (3,237) | 8,306 |
Loss on equity method investment | 28,456 | |
Changes in deferred taxes | (1,759) | (302) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (76,974) | (395,055) |
Accounts receivable - related party | 22,611 | 322,815 |
Inventories | 111,174 | 68,533 |
Prepayments | 463,423 | 667,654 |
Other receivables and other current assets | 200,754 | 349,964 |
Accounts payable | (154,894) | 324,648 |
Accounts payable - related party | 16,402 | (535,552) |
Accrued expenses and other payables | (58,795) | 69,432 |
Contract Liabilities | (78,499) | (58,774) |
Operating lease liabilities | 67,547 | 46,862 |
Taxes payables | 120,665 | 18,081 |
Other long-term payables | 4,477 | 61,913 |
Net cash provided by operating activities | 596,541 | 519,636 |
Cash flows from investing activities | ||
Payments of equipment purchase | (12,809) | |
Investment into Good Fortune Arcadia | (1,440,000) | |
Net cash used in investing activities | (1,452,809) | |
Cash flows from financing activities | ||
Proceeds from loans | 7,363 | |
Bank overdraft | (281,940) | |
Repayments on loan payables | (101,417) | |
Borrowings from related parties | 482,120 | |
Net cash provided by (used in) financing activities | (101,417) | 207,543 |
Net changes in cash and restricted cash | (957,685) | 727,179 |
Cash and restricted cash at the beginning of the period | 2,570,867 | 972,431 |
Cash and restricted cash at the end of the period | 1,613,182 | 1,699,610 |
Supplemental disclosure of cash and restricted cash | ||
Cash | 1,612,081 | 1,698,509 |
Restricted cash | 1,101 | 1,101 |
Total cash and restricted cash | 1,613,182 | 1,699,610 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 35,814 | 7,635 |
Cash paid for income taxes | $ 6,156 |
Organization
Organization | 3 Months Ended |
Jul. 31, 2023 | |
Organization [Abstract] | |
Organization | 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. The Company, through its four subsidiaries engages in the specialty grocery retailer business. The Company is a fast-growing specialty grocery retailer offering traditional Asian food and merchandise to U.S. consumers, in particular to Asian-American communities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jul. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The interim consolidated financial information as of July 31, 2023 and for the three months periods ended July 31, 2023 and 2022 have been prepared without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. The interim consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2023, previously filed with the SEC on August 1, 2023. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s interim consolidated financial position as of June 30, 2023, its interim consolidated results of operations and cash flows for the three months ended July 31, 2023 and 2022, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries and, when applicable, entities for which the Company has a controlling financial interest. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Noncontrolling interests The Company follows FASB (Financial Accounting Standards Board) ASC (Accounting Standards Codification) Topic 810, “Consolidation,” governing the accounting for and reporting of noncontrolling interests (“NCI”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCI be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially-owned consolidated subsidiary be allocated to noncontrolling interests even when such allocation might result in a deficit balance. The net income attributed to NCI was separately designated in the accompanying statements of operations. Losses attributable to NCI in a subsidiary may exceed a NCI’s interests in the subsidiary’s equity. The excess attributable to NCI is attributed to those interests. NCIs shall continue to be attributed their share of losses even if that attribution results in a deficit NCIs balance. As of July 31, 2023 and April 30, 2023, the Company had NCIs of $346,162 and $267,947, respectively, which represent 9% of the equity interest of Maison San Gabriel, 14.75% of the equity interest of Maison Monrovia and 8.33% of the equity interest of Maison El Monte. For the three months ended July 31, 2023 and 2022, the Company had net income of $78,215 and $26,653, respectively, that were attributable to NCIs. Liquidity As reflected in the accompanying consolidated financial statements, the Company had retained earnings of $417,771 at July 31, 2023, the Company had net loss attributable to the Company of $104,939 and $597,040 for the three months ended July 31, 2023 and 2022, respectively. The management plans to increase its revenue by strengthening its sales force, providing attractive sales incentive programs, recruiting experienced industry-related managerial personnel, and increasing marketing and promotion activities. Management also intends to raise additional funds by way of a private or public offering, or by obtaining loans from banks or others. The Company had $1.61 million cash on hand and working capital deficit of $1.44 million at July 31, 2023. The Company has historically funded its working capital needs primarily from operations. The working capital requirements are affected by the efficiency of operations and depend on the Company’s ability to increase its revenue. The Company believes that its cash on hand and operating cash flows will be sufficient to fund its operations over at least the next 12 months from the date of issuance of these financial statements. However, the Company may need additional cash resources in the future if the Company experiences changed business conditions or other developments, and may also need additional cash resources in the future if the Company wishes to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions. If it is determined that the cash requirements exceed the Company’s amounts of cash on hand, the Company may seek to issue debt or equity securities or obtain a credit facility. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates are used for, but not limited to, useful lives of property and equipment, commitments and contingencies, inventory reserve, allowance for estimated uncollectable accounts receivable and other receivables, impairment of long-lived assets, contract liabilities and valuation of deferred tax assets. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, these estimates have become more challenging, and actual results could differ materially from these estimates. Cash and cash equivalents Cash and equivalents include cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities when purchased of three months or less. The Company’s cash is maintained at financial institutions in the United States of America. Deposits in these financial institutions may, from time to time, exceed the Federal Deposit Insurance Corporation (“FDIC”)’s federally insured limits. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The bank deposits exceeding the standard insurance amount will not be covered. As of July 31, 2023 and April 30, 2023, cash balances held in the banks, exceeding the standard insurance amount, are $862,081 and $1,819,766, respectively. The Company has not experienced any losses in accounts held in these financial institutions and believes it is not exposed to any risks on its cash held in these financial institutions. Cash from operating, investing and financing activities of the consolidated statement of cash flows are net of assets and liabilities acquired of Maison Monterey Park. Restricted cash Restricted cash is an amount of cash deposited with banks in conjunction with borrowings from banks. Restriction on the use of such cash and the interest earned thereon is imposed by the banks and remains effective throughout the terms of the bank borrowings and notes payable. Restricted cash is classified as non-current assets on the Company’s consolidated balance sheets, as all the balances are not expected to be released to cash within the next 12 months. As of July 31, 2023 and April 30, 2023, the Company had restricted cash of $1,101 and $1,101, respectively. Accounts receivable The Company’s accounts receivable arises from product sales. The Company does not adjust its receivables for the effects of a significant financing component at contract inception if it expects to collect the receivables in one year or less from the time of sale. The Company does not expect to collect receivables greater than one year from the time of sale. The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of July 31, 2023 and April 30, 2023, there was no allowance for the doubtful accounts. Accounts receivable — related parties Accounts receivable consist primarily of receivables from related parties on 30-day credit terms and are presented net of an allowance for estimated uncollectible amounts. The Company periodically assesses its accounts receivable for collectability on a specific identification basis. If collectability of an account becomes unlikely, an allowance is recorded for that doubtful account. Once collection efforts have been exhausted, the accounts receivable is written off against the allowance. As of July 31, 2023 and April 30, 2023, there was no allowance for the doubtful accounts. Inventories, net Inventories consisting of products available for sale are primarily accounted for using the first-in, first-out method and are valued at the lower of cost and net realizable value. This valuation requires the Company to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, liquidations, and expected recoverable values of each disposition category. The Company records inventory shrinkage based on the historical data and management’s estimates and provides a reserve for inventory shrinkage for the three months ended July 31, 2023 and 2022. Prepayments Prepayments and deposits are mainly comprised of cash deposited and advanced to suppliers for future inventory purchases and services to be performed. This amount is refundable and bears no interest. For any prepayments that management determines will not be in receipts of inventories, services, or refundable, the Company recognizes an allowance account to reserve such balances. Management reviews its prepayments on a regular basis to determine if the allowance is adequate and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of July 31, 2023 and April 30, 2023, the Company had made prepayment to its vendors. The Company’s management continues to evaluate the reasonableness of the allowance policy and update it if necessary. Other receivables and other current assets Other receivables and other current assets primarily include non-interest-bearing loans of the other business entities. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection are made. As of July 31, 2023 and April 30, 2023, the Company did not have any bad debt allowance for other receivables. Property and equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the individual assets. The following table includes the estimated useful lives of certain of our asset classes: Furniture & fixtures 5 – 10 years Leasehold improvements Shorter of the lease term or estimated useful life of the assets Equipment 5 – 10 years Automobiles 5 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of operations. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. Impairment of long-lived assets Long-lived assets, which include property, plant and equipment, intangible assets with finite lives, and operating lease right-of-use assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC 360-10-15, “Impairment or Disposal of Long-Lived Assets.” ASC 360-10-15 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group asset group exceeds its fair value based on discounted cash flow analysis or appraisals. There was no impairment of long-lived assets for the three months ended July 31, 2023 and 2022. Security deposits Security deposits primarily include deposits made to the Company’s landlord for its supermarkets and office facilities. These deposits are refundable upon expiration of the lease. Long-term investment The Company accounts for investments with less than 20% of the voting shares and does not have the ability to exercise significant influence over operating and financial policies of the investee using the cost method. The Company elects the measurements alternative and records investment in equity securities at the historical cost in its consolidated financial statements and subsequently records any dividends received from the net accumulated earrings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reduction in the cost of the investments. In May 2021, the Company purchased a 10% equity interest in Dai Cheong Trading Inc., a grocery trading company, for $162,665 from DC Holding. DC Holding is 100% owned by John Xu, the Chairman and Chief Executive Officer of the Company. See Note 13 — “ Related party balances and transactions In December 2021, the Company purchased a 10% equity interest in HKGF Market of Alhambra, Inc, the legal entity holding the store for $40,775 from Ms. Grace Xu, sole shareholder of HKGF Market of Alhambra, Inc. and a related party as the spouse of Mr. John Xu, the Chairman and Chief Executive Officer of the Company. See Note 13 — “ Related party balances and transactions On June 27, 2023, the Company invested $1,440,000 for 40% interest in HKGF Market of Arcadia, LLC (“HKGF Arcadia”). See Note 8 — “ Equity method investment . Investment in equity securities is evaluated for impairment when facts or circumstances indicate that the fair value of the long-term investments is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near-term prospects of the investments; and (v) ability to hold the security for a period sufficient to allow for any anticipated recovery in fair value. No event had occurred and indicated that other-than-temporary impairment existed and therefore the Company did not record any impairment charges for its investments for the three months ended July 31, 2023. Goodwill Goodwill is the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. In accordance with ASC Topic 350, “Intangibles-Goodwill and Other,” goodwill is not amortized but is tested for impairment, annually or more frequently when circumstances indicate a possible impairment may exist. Impairment testing is performed at a reporting unit level. Generally, the Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If factors indicate that this is the case, the Company then estimates the fair value of the related reporting unit determined using discounted cash flow (“DCF”) analysis. A number of significant assumptions and estimates are involved in the application of the DCF analysis to forecast operating cash flows, including the discount rate, the internal rate of return and projections of realizations and costs to produce. Management considers historical experience and all available information at the time the fair values of its reporting units are estimated. If the fair value is less than the carrying value, the goodwill of the reporting unit is determined to be impaired and the Company will record an impairment equal to the excess of the carrying value over its fair value. The Company did not record any impairment loss during the three Months ended July 31, 2023 and 2022. Leases On May 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Lease (FASB ASC Topic 842). The adoption of Topic 842 resulted in the presentation of operating lease right-of-use (“ROU”) assets and operating lease liabilities on the consolidated balance sheet. See Note 14 — “ Leases The Company determines if an arrangement contains a lease at the inception of a contract under ASC Topic 842. At the commencement of each lease, management determines its classification as an operating or finance lease. For leases that qualify as operating leases, ROU assets and liabilities are recognized at the commencement date based on the present value of any remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU assets include adjustments for accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. A short-term lease is defined as a lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. When determining whether a lease qualifies as a short-term lease, the Company evaluates the lease term and the purchase option. Hence, the Company does not recognize any operating lease ROU assets and operating lease liabilities for short-term leases. The Company evaluates the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group. If the carrying value of the asset group is determined to not be recoverable and is in excess of the estimated fair value, the Company will record an impairment loss in other expenses in the consolidated statements of operations. The Company also subleases certain mini stores that are within the supermarket to other parties. The Company collects security deposits and rent from these sub-lease tenants. The rent income collected from sub-lease tenants recognized as rental income and deducted occupancy cost. Occupancy cost mainly consists of rents and common area maintenance fees. Fair value measurements The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with U.S GAAP. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Fair value measurements of nonfinancial assets and non-financial liabilities are primarily used in the impairment analysis of intangible assets and long-lived assets. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Revenue recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), from May 1, 2020, using the modified retrospective transition approach to all contracts that did not have an impact on the beginning retained earnings on May 1, 2020. The Group’s revenue recognition policies effective on the adoption date of ASC 606 are presented as below. In accordance with ASC Topic 606, the Company’s performance obligation is satisfied upon the transfer of goods to the customer, which occurs at the point of sale. Revenues are recorded net of discounts, sales taxes, and returns and allowances. The Company sells Company gift cards to customers. There are no administrative fees on unused gift cards, and the gift cards do not have an expiration date. Gift card sales are recorded as contract liability when sold and are recognized as revenue when either the gift card is redeemed or the likelihood of the gift card being redeemed is remote (“gift card breakage”). The Company’s gift card breakage rate is based upon historical redemption patterns and it recognizes breakage revenue utilizing the redemption recognition method. The Company also offers discounts on the gift cards sold to its customers. The discounts are recorded as sales discount when gift card been redeemed. The Company’s contract liability related to gift cards was $370,836 and $449,334 as of July 31, 2023 and April 30, 2023, respectively. The following table summarizes disaggregated revenue from contracts with customers by product group: perishable and non-perishable goods. Perishable product categories include meat, seafood, vegetables, and fruit. Non-perishable product categories include grocery, liquor, cigarettes, lottery, newspaper, reusable bag, non-food, and health products. Three Months ended 2023 2022 Perishables $ 7,723,846 $ 6,454,274 Non-perishables 6,028,469 4,955,414 Total revenues $ 13,752,315 $ 11,409,688 Cost of sales Cost of sales includes the rental expense, depreciation, the direct costs of purchased merchandise, shrinkage costs, store supplies, and inbound shipping costs. The cost of sales is a net of vendor’s rebates and discounts. The Company subleases certain mini stores that are within the supermarket to other parties. The Company collects security deposits and rents from these sub-lease tenants. The rent income collected from sub-lease tenants are recognized as rental income and deducted rental expense. Selling expenses Selling expenses mainly consist of advertising costs, promotion expenses, and payroll and related expenses for personnel engaged in selling and marketing activities. Advertising expenses, which consist primarily of online and offline advertisements, are expensed when the services are performed. The Company’s advertising expenses were $30,637 and $10,078 for the three months ended July 31, 2023 and 2022, respectively. General and administrative expenses General and administrative expenses mainly consist of payroll and related costs for employees involved in general corporate functions, professional fees and other general corporate expenses, as well as expenses associated with the use by these functions of facilities and equipment, such as rental and depreciation expenses. Concentrations of risks (a) Major customers For each of the three months ended July 31, 2023 and 2022, the Company did not have any customers that accounted for more than 10% of consolidated total net sales. (b) Major vendors The following table sets forth information as to the Company’s suppliers that accounted for 10% or more of the Company’s total purchases for the three months ended July 31, 2023 and 2022. Three Months Ended Three Months Ended Supplier Percentage of Supplier Percentage of A 34 % A 21 % B 19 % B 20 % C 9 % C 19 % (c) Credit risks Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. Accounts receivable are typically unsecured and derived from products sold to customers, and are thereby exposed to credit risk. However, the Company believes the concentration of credit risk in its accounts receivable is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends, and other information. Historically, the Company did not have any bad debt on its accounts receivable. The Company also has loan receivables to its centralized vendors occasionally. The loan receivables are typically unsecured and exposed to credit risk. However, the Company believes that the loan receivables amount to its centralized vendor is managed by its finance department and these centralized vendors are still providing products monthly to the Company. The Company does not generally require collateral from the vendors. The Company also evaluates the need for an allowance for doubtful accounts based on upon factors surrounding the credit risks. Historically, the Company did not have any bad debt on its loan receivables and all loan receivables been collected in subsequent period. Income taxes Income taxes are accounted for in accordance with the provisions of ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s deferred tax assets are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. In determining the need for a valuation allowance, management reviews both positive and negative evidence, including current and historical results of operations, future income projections, and the overall prospects of our business. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income offset by deferred tax liabilities. Changes in recognition or measurement are reflected in the period in which the judgment occurs. The Company utilizes a two-step approach to recognizing and measuring uncertain income tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating our tax positions and estimating its tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. The Company includes interest and penalties related to its tax contingencies in income tax expense. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the CARES Act) was signed into law, intended to provide economic relief to those impacted by the COVID-19 pandemic. The CARES Act, among other things, includes provisions addressing the carryback of net operating losses for specific periods, temporary modifications to the limitations placed on the tax deductibility of net interest expenses, and technical amendments for qualified improvement property (QIP). The impacts of the CARES Act are recorded as components within the Company’s deferred income tax liabilities and income tax receivable on the Company’s balance sheets. Earnings (loss) per share Basic earnings (loss) per ordinary share is computed by dividing net earnings (loss) attributable to common stockholders by the weighted-average number of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to common stockholders by the sum of the weighted average number of common stock outstanding and of potential common stock (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common stock that has an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) is excluded from the calculation of diluted earnings per share. For the three months ended July 31, 2023 and 2022, the Company had no dilutive potential common stock. Related Parties The Company identifies related parties, accounts for, and discloses related party transactions in accordance with ASC Topic 850 “Related Party Disclosures” and other relevant ASC standards. Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions in Note 13 — “ Related party balances and transactions Segment Information The Company’s chief operating decision-maker has been identified as the chief executive officer, who reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues by different product types for purposes of allocating resources and evaluating financial performance. The Company and its subsidiaries offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel and other items and services in its stores. Th |
Inventories, Net
Inventories, Net | 3 Months Ended |
Jul. 31, 2023 | |
Inventories, Net [Abstract] | |
Inventories, net | 3. Inventories, net A summary of inventories, net is as follows: July 31, April 30, Perishables $ 456,925 $ 487,912 Non-perishables 2,453,637 2,533,824 Reserve for inventory shrinkage (39,513 ) (42,750 ) Inventories, net $ 2,871,049 $ 2,978,986 Movements of reserve for inventory shrinkage are as follows: Three Months Three Months Beginning balance $ 42,750 $ 135,122 GF Supermarket of MP, Inc. inventory shrinkage reserve at July 1, 2022 — 37,684 Provision for (reversal of) inventory shrinkage reserve (3,237 ) 8,306 Ending Balance $ 39,513 $ 181,112 |
Prepayments
Prepayments | 3 Months Ended |
Jul. 31, 2023 | |
Prepayments [Abstract] | |
Prepayments | 4. Prepayments July 31, April 30, Prepayment for inventory purchases $ 1,083,820 $ 1,547,243 Total prepayments $ 1,083,820 $ 1,547,243 As of July 31, 2023, the prepayment mainly consists of $1,063,820 paid to XHJC Holding Inc which is the Company’s new centralized vendor and $20,000 paid to GF distribution, the Company’s major vendor. As of April 30, 2023, the prepayment mainly consists of $1,527,243 paid to XHJC Holding Inc which is the Company’s new centralized vendor and $20,000 paid to GF distribution, the Company’s major vendor. |
Loan Receivables
Loan Receivables | 3 Months Ended |
Jul. 31, 2023 | |
Loan Receivables [Abstract] | |
Loan Receivables | 5. Loan receivables On April 30, 2020, the Company entered a promissory note with its vendor Drop in the Ocean, Inc. with a total loan amount of up to $4,000,000 with 6% interest. Drop in the Ocean, Inc. repaid $1,800,000 to the Company on September 9, 2022, $1,200,000 on October 14, 2022, $761,932 on October 28, 2022, and $215,344 on October 30, 2022, including the 6% interest as stated in the promissory note. The Company entered a promissory note with its vendor XHJC Holding Inc. on January 1, 2022, with a total loan amount of up to $1,000,000 with 4% interest. On November 4, 2022, XHJC Holding Inc. repaid the remaining $433,136 in full to the Company. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Jul. 31, 2023 | |
Property Plant and Equipment [Abstract] | |
Property and equipment, net | 6. Property and equipment, net July 31, April 30, Furniture & Fixtures $ 3,025,516 $ 3,025,516 Equipment 1,011,333 1,011,333 Leasehold Improvement 499,453 486,644 Automobile 37,672 37,672 Total property and equipment 4,573,974 4,561,165 Accumulated depreciation (3,953,413 ) (3,889,702 ) Property and equipment, net $ 620,561 $ 671,463 Depreciation expenses included in the general and administrative expenses for the three months ended July 31, 2023 and 2022 were $5,792 and $15,246, respectively. Depreciation expense included in the cost of sales for the three months ended July 31, 2023 and 2022 were $57,920 and $124,962, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Jul. 31, 2023 | |
Intangible Assets [Abstract] | |
Intangible assets | 7. Intangible assets Intangible assets mainly consisted of a trademark acquired through the acquisition of Maison Monterey Park on June 30, 2022. The fair value of the trademark at acquisition date was $194,000, to be amortized over 15 years. The amortization of the trademark for the three months ended July 31, 2023 and was $3,233 and $1,078. Estimated amortization expense for each of the next five years at July 31, 2023 is as follows: $12,936, $12,936, $12,936, $12,936 and $12,936. In addition, the Company had $292 and $212 amortization expenses of liquid license for the three months ended July 31, 2023 and 2022, respectively. |
Equity method investment
Equity method investment | 3 Months Ended |
Jul. 31, 2023 | |
Equity method investment [Abstract] | |
Equity method investment | 8. Equity method investment On June 27, 2023, the Company invested $1,440,000 for 40% interest in HKGF Market of Arcadia, LLC (“HKGF Arcadia”). As of July 31, 2023, the Company had net accounts receivable of $149,989 from JC Business Guys, Inc. (“JCBG”), who is the 60% owner of HKGF Arcadia. For the three months ended July 31,2023 and 2022, total sales to JCBG was $0 and $85,387, respectively. The following table shows the condensed balance sheet of HKGF Arcadia as of July 31, 2023. HKGF ARCADIA BALANCE SHEET July 31, ASSETS Current Assets Cash and equivalents $ 86,395 Accounts receivable 10,696 Inventories, net 425,133 Total Current Assets 522,224 Property and equipment, net 426,786 Intangible asset, net 6,031 Goodwill 1,680,000 Security deposits 159,589 Total Assets $ 2,794,630 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current Liabilities Accounts payable $ 1,039,292 Accrued expenses and other payables 3,400 Total Current Liabilities 1,042,692 Total Liabilities 1,042,692 Stockholders’ Equity Paid in Capital 3,440,000 Subscription receivable (1,300,000 ) Accumulated deficit (388,062 ) Total Stockholders’ Equity 1,751,938 Total Liabilities and Stockholders’ Equity $ 2,794,630 The following table shows the condensed statement of operations of HKGF Arcadia for the period from July 1, 2023 to July 31, 2023. For the period from Net Revenues Supermarket $ 577,824 Total Revenues, Net 577,824 Cost of Revenues Supermarket 428,535 Total Cost of Revenues 428,535 Gross Profit 149,289 Operating Expenses 220,430 Total Operating Expenses 220,430 Loss from Operations (71,141 ) Income (Loss) Before Income Taxes (71,141 ) Income Tax Provisions - Net Loss (71,141 ) Net Loss Attributable to Maison Solutions Inc. $ (28,456 ) |
Goodwill
Goodwill | 3 Months Ended |
Jul. 31, 2023 | |
Goodwill [Abstract] | |
Goodwill | 9. Goodwill Goodwill represented the excess fair value of the assets under the fair value of the identifiable assets owned at the closing of the acquisition of Maison Monetary Park, including an assembled workforce, which cannot be sold or transferred separately from the other assets in the business. See Note 19 — “ Acquisition of subsidiary |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 3 Months Ended |
Jul. 31, 2023 | |
Accrued Expenses and Other Payables [Abstract] | |
Accrued expenses and other payables | 10. Accrued expenses and other payables July 31, April 30, Accrued payroll $ 263,616 $ 301,527 Accrued interest expense 131,388 127,638 Accrued loss for legal matter 237,000 237,000 Other payables 16,342 26,878 Due to third parties 118,703 145,775 Sales tax payable 41,952 28,978 Total accrued expenses and other payables $ 809,001 $ 867,796 |
Note Payable
Note Payable | 3 Months Ended |
Jul. 31, 2023 | |
Note Payable [Abstract] | |
Note payable | 11. Note payable As of July 31, 2023 and April 30, 2023, the Company had an outstanding note payable of $150,000 to a third-party individual with annual interest rate of 10%, payable upon demand. The note had accrued interest of $25,000 and $21,500 as of July 31, 2023 and April 30, 2023, respectively. |
Loan Payables
Loan Payables | 3 Months Ended |
Jul. 31, 2023 | |
Loan Payables [Abstract] | |
Loan payables | 12. Loan payables A summary of the Company’s loans is listed as follows: Lender Due date July 31, April 30, American First National Bank March 2, 2024 $ 227,166 $ 307,798 U.S. Small Business Administration June 15, 2050 2,603,544 2,624,329 Total loan payables 2,830,710 2,932,127 Current portion of loan payables (285,489 ) (370,828 ) Non-current loan payables $ 2,545,221 $ 2,561,299 American First National Bank — a National Banking Association On March 2, 2017, Maison Monrovia entered into a $1.0 million Business Loan Agreement with American First National Bank, a National Banking Association, at a 4.5% annual interest rate with a maturity date on March 2, 2024. On March 2, 2017, Maison San Gabriel, entered into a $1.0 million Business Loan Agreement with American First National Bank at a 4.5% annual interest rate with a maturity date on March 2, 2024. The covenant of loans required that, so long as the loan agreements remains in effect, borrower will maintain a ratio of debt service coverage within 1.300 to 1.000. This coverage ratio will be evaluated as of the end of each fiscal year. The interest rate for these two loans is subject to change from time to time based on changes in an independent index which is the Wall Street Journal US prime as published in the Wall Street Journal Money Rate Section. The annual interest rate for these two loans was ranging from 4.5% to 5.75% for the three months ended July 31, 2022, and was 7.75% for the three months ended July 31, 2023. The collateral for the bank loans is personally guaranteed by Mr. Wu, who is the prior owner and applicant for the bank loan, and each store’s assets including inventory, fixture, equipment, etc. At the same time, a minimum of $1.0 million in general liability insurance to cover the collateral business assets located at 935 W. Duarte Dr. Monrovia, CA 91016. As of April 30, 2022, the coverage ratio for Maison Monrovia was 1.01 and the coverage ratio for Maison San Gabriel was 2.00. The Company reported this situation to American First National Bank and there was no change on the term up to the date the Company issued these consolidated financial statements. Due to the violation of a covenant as of April 30, 2022, the Company reclassified the loan balance of $313,278 under Maison Monrovia as current loan payable since then. The interest expense for this loan were $5,330 and $7,635, respectively, for the three months ended July 31, 2023 and 2022. U.S. Small Business Administration (the “SBA”) Borrower Due date July 31, April 30, Maison Monrovia June 15, 2050 $ 147,419 $ 148,574 Maison San Gabriel June 15, 2050 1,965,117 1,980,725 Maison El Monte June 15, 2050 491,007 495,030 Total SBA loan payables $ 2,603,544 $ 2,624,329 On June 15, 2020, Maison Monrovia entered into a $150,000 Business Loan Agreement with the SBA at 3.75% annual interest rate and a maturity date on June 15, 2050. On June 15, 2020, Maison San Gabriel entered into a $150,000 Business Loan Agreement with the SBA at 3.75% annual interest rate and a maturity date on June 15, 2050. On June 15, 2020, Maison El Monte entered into a $150,000 Business Loan Agreement with SBA at 3.75% annual interest rate and a maturity date on June 15, 2050. On January 12, 2022, Maison San Gabriel entered into an additional $1,850,000 Business Loan Agreement with the SBA at 3.75% annual interest rate and a maturity date on June 15, 2050. On January 6, 2022, Maison El Monte, Inc. entered into an additional $350,000 Business Loan Agreement with the SBA at 3.75% annual interest rate and a maturity date on June 15, 2050. Per the SBA loan agreement, all interest payments on these three loans were deferred to December 2022. As of July 31, 2023 and April 30, 2023, the Company’s aggregate balance on the three SBA loans was $2,603,544 and $2,624,329, respectively. Interest expenses were $23,462 and $23,953 for the three months ended July 31, 2023 and 2022, respectively. During the three months ended July 31, 2023, the Company made repayment of $52,040 (which includes principal of $20,785 and interest expense of $31,255). As of July 31, 2023, the future minimum principal amount of loan payments to be paid by year are as follows: Year Ending April 30, Amount 2024 $ 58,323 2025 65,626 2026 67,792 2027 70,041 2028 72,376 Thereafter 2,269,386 Total $ 2,603,544 |
Related Party Balances and Tran
Related Party Balances and Transactions | 3 Months Ended |
Jul. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related party balances and transactions | 13. Related party balances and transactions Related party transactions Sales to related parties Name of Related Party Nature Relationship Three Months ended Three Months ended The United Food, LLC Supermarket product sales John Xu, the Company’s chief executive officer, is one of the United Food LLC’s shareholders $ 2,663 $ 1,152 GF Supermarket of MP, Inc. (the Company acquired all the assets from Hong Kong Supermarket of Monterey Park, Ltd on August 1, 2021) Supermarket product sales Grace Xu, spouse of John Xu, is the major shareholder with 49% ownership, sold this entity to the Company on June 30, 2022 — 54,218 HKGF Market of Arcadia, LLC Supermarket product sales 40% investee of the Company 5,972 — HKGF Market of Alhambra, Inc. Supermarket product sales Grace Xu, spouse of John Xu, controls this entity with 100% ownership 59,883 83,958 Total $ 68,518 $ 139,328 Purchases from related parties Name of Related Party Nature Relationship Three Months Three Months The United Food, LLC Supermarket product sales John Xu, the Company’s chief executive officer, is one of the United Food LLC’s shareholders $ 674 $ 2,277 HKGF Market of Arcadia, LLC Supermarket product sales 40% investee of the Company 20,587 — GF Supermarket of MP, Inc. (the Company acquired all the assets from Hong Kong Supermarket of Monterey Park, Ltd on August 1, 2021) Supermarket product sales Grace Xu, spouse of John Xu, is the major shareholder with 49% ownership, sold this entity to the Company on June 30, 2022 — 4,257 Dai Cheong Trading Co Inc. Import and wholesales of groceries John Xu, controls this entity with 100% ownership through DC Holding CA, Inc. 37,973 26,606 HKGF Market of Alhambra, Inc. Supermarket product sales Grace Xu, spouse of John Xu, controls this entity with 100% ownership — 809 Total $ 59,234 $ 33,949 Investment in equity securities purchased from related parties Name of Investment Company Nature of Investment percentage Relationship As of As of Dai Cheong Trading Co Inc. Import and wholesales of groceries 10 % John Xu, the Company’s Chairman and Chief Executive Officer, controls this entity with 100% ownership through DC Holding CA, Inc. $ 162,665 $ 162,665 HKGF Market of Alhambra, Inc. Supermarket product sales 10 % Grace Xu, spouse of John Xu, controls this entity with 100% ownership 40,775 40,775 HKGF Market of Arcadia, LLC Supermarket product sales 40 % 40% investee of the Company 1,411,544 — Total $ 1,614,984 $ 203,440 In May 2021, the Company purchased a 10% equity interest in Dai Cheong Trading Inc., a grocery trading company, for $162,665 from DC Holding CA, Inc. DC Holding CA, Inc. is owned by John Xu, the Chairman and Chief Executive Officer of the Company. In December 2021, the Company purchased a 10% equity interest in HKGF Market of Alhambra, Inc, the legal entity holding the Alhambra store for $40,775 from Ms. Grace Xu, a related party as the spouse of Mr. John Xu, the Chairman and Chief Executive Officer of the Company. On June 27, 2023, the Company invested $1,440,000 for 40% partnership interest in HKGF Arcadia. For the three months ended July 31, 2023, the Company recorded $28,456 investment loss on this investment. Related party balances Accounts receivable — sales to related parties Name of Related Party Nature Relationship July 31, April 30, HKGF Supermarket of Arcadia LLC. Supermarket product sales 40% investee of the Company $ 5,965 $ — HKGF Market of Alhambra, Inc. Supermarket product sales Grace Xu, spouse of John Xu, controls this entity with 100% ownership 241,345 283,005 United Food LLC. Supermarket product sales John Xu, is one of the United Food LLC’s shareholders 7,763 6,610 Total $ 255,073 $ 289,615 Accounts payable — purchase from related parties Name of Related Party Nature Relationship July 31, April 30, Hong Kong Supermarket of Monterey Park, Ltd Due on demand, John Xu, controls this entity $ 438,725 $ 438,725 Dai Cheong Trading Co Inc. Import and wholesales of groceries John Xu, controls this entity with 100% ownership through DC Holding CA, Inc. 31,057 26,585 Total $ 469,782 $ 465,310 Other receivables — related parties Name of Related Party Nature Relationship July 31, April 30, Ideal Investment Due on demand, John Xu, has majority ownership of this entity 3,995 3,995 Ideal City Capital Due on demand, John Xu, has majority ownership of this entity 30,000 30,000 Total $ 33,995 $ 33,995 Other payables — related parties Name of Related Party Nature Relationship July 31, April 30, John Xu due on demand, The Company’s Chairman and Chief Executive Officer $ 200,810 $ 200,810 Grace Xu due on demand, Spouse of John Xu 40,775 40,775 Total $ 241,585 $ 241,585 |
Leases
Leases | 3 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Leases | 14. Leases The Company accounted for leases in accordance with ASU No. 2016-02, Leases (Topic 842) for all periods presented. The Company leases certain supermarkets and office facilities from third parties. Some of the Company’s leases include one or more options to renew, which are typically at the Company’s sole discretion. The Company evaluates the renewal options, and when it is reasonably certain of exercise, it will include the renewal period in its lease term. New lease modifications result in re-measurement of the right of use (“ROU”) assets and lease liabilities. Operating ROU assets and lease liabilities are recognized at the lease commencement date, based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment and over a similar term. The Company’s leases mainly consist of store rent and copier rent. The store lease detail information is listed below: Store Lease Term Due Maison Monrovia * August 31, 2055 (with extension) Maison San Gabriel November 30, 2030 Maison El Monte July 14, 2028 Maison Monterey Park May 1, 2028 * On April 1, 2023, the Company renewed lease of Maison Monrovia for additional five years with new monthly based rent of $40,000 for first year and 3% increase for each of the next four years. On July 6, 2023, the Company and the lessor entered an amendment to lease and the lessor will provide monthly basic rent abatement of $5,000 from August 1, 2023 through March 31, 2024, $2,500 from April 1, 2024 through March 31, 2025, and $1,000 from April 1, 2025 through March 31, 2026. As a result of increased monthly base rent, the Company remeasured the lease and found the ROU and lease liability of this lease increased by $3.62 million for each. As of July 31, 2023, the average remaining term of the supermarkets’ store lease is 9.87 years. In June and November 2022, the Company entered three leases for three copiers with terms of 63 months for each. As of July 31, 2023, the average remaining term of the copier lease is 4.29 years. The copier lease detail information is listed below: Store Lease Term Due Maison Monrovia January 1, 2028 Maison San Gabriel January 1, 2028 Maison Monterey Park August 1, 2027 The Company’s total lease expenses under ASC 842 are $0.78 million and $0.56 million for the three months ended July 31, 2023 and 2022, respectively. The Company’s ROU assets and lease liabilities are recognized using an effective interest rate of range 4.5% to 6.25%, which was determined using the Company’s incremental borrowing rate. The Company’s operating ROU assets and lease liabilities were as follows: July 31, April 30, Operating ROU: ROU assets – supermarket leases $ 22,010,209 $ 22,517,925 ROU assets – copier leases 26,328 27,265 Total operating ROU assets $ 22,036,537 $ 22,545,190 July 31, April 30, Operating lease obligations: Current operating lease liabilities $ 1,780,559 $ 1,761,182 Non-current operating lease liabilities 22,251,277 22,711,760 Total lease liabilities $ 24,031,836 $ 24,472,942 As of July 31, 2023, the five-year maturity of the Company’s operating lease liabilities is as follow: Years Ending July 31, Operating 2024 $ 2,805,260 2025 2,865,825 2026 2,926,578 2027 2,980,223 2028 2,866,526 Thereafter 24,218,071 Total future undiscounted lease payments 38,662,483 Less: interest (14,630,647 ) Present value of lease liabilities $ 24,031,836 |
Stockholder_s Equity
Stockholder’s Equity | 3 Months Ended |
Jul. 31, 2023 | |
Stockholder’s Equity [Abstract] | |
Stockholder’s equity | 15. Stockholder’s equity Common stock Maison was initially authorized to issue 500,000 shares of common stock with a par value of $0.0001 per share. On September 8, 2021, the total number of authorized shares of all classes of stock was increased to 100,000,000 by way of a 200-for-1 stock split, among which, the authorized shares were divided in to 92,000,000 shares of Class A common stock entitled to one (1) vote per share, 3,000,000 shares of Class B common stock entitled to ten (10) votes per share, and 5,000,000 shares of preferred stock. For the Class A common stock and Class B common stock, the rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one (1) vote. Each share of Class B common stock is entitled to ten votes and is convertible at any time into one share of Class A common stock. John Xu holds all of our outstanding shares of Class B common stock. All shares and per share amounts used herein and in the accompanying consolidated financial statements have been retroactively adjusted to reflect (i) the increase of share capital as if the change of share numbers became effective as of the beginning of the first period presented for Maison Group and (ii) the reclassification of all outstanding shares of our common stock beneficially owned by Golden Tree USA Inc. into Class B common stock, which are collectively referred to as the “Reclassification”. |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 16. Income Taxes Maison Solutions is a Delaware holding company that is subject to the U.S. income tax. Maison Monrovia and Maison San Gabriel are pass through entities whose income or losses flow through Maison Solution’s income tax return. Since its formation in 2019, the Company and its subsidiaries filed separate returns based upon a tax year-end of December 31. The Company recently filed an application with the Internal Revenue Service (“IRS”) to change its and its subsidiaries year-end to April 30. Upon approval from the tax authorities, the Company intends to file stub period corporate income tax returns for each of the entities for the period January 1, 2023 to April 30, 2023, and prospectively file individual entity’s corporate income tax return with year-end of April 30 for the fiscal year starting from May 1, 2023. The income tax provision in these financial statements is based upon the pretax income (loss) for the three months ended July 31, 2023 and 2022. Income Tax Provision The provision for income taxes provisions consists of the following components: Three Months ended Three Months ended Current: Federal income tax expense $ 82,564 $ 7,720 State income tax expense 38,102 10,507 Deferred: Federal income tax benefit (1,320 ) (226 ) State income tax benefit (440 ) (75 ) Total $ 118,906 $ 17,926 The following is a reconciliation of the difference between the actual (benefit) provision for income taxes and the (benefit) provision computed by applying the federal statutory rate on income (loss) before income taxes: Three Months ended Three Months ended Federal statutory rate 21.00 % (21.00 )% State statutory rate, net of effect of state income tax deductible to federal income tax 7.02 % (5.99 )% Permanent difference – penalties, interest, and others (7.62 )% 1.11 % Utilization of net operating losses (“NOL”) (12.89 )% — % Valuation allowance 121.48 % 29.13 % Effective tax rate 129.00 % 3.25 % Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred taxes are comprised of the following: July 31, April 30, Deferred tax assets: Bad debt expense $ 40,550 $ 70,929 Lease liabilities, net of ROU 524,149 441,997 NOL 730,181 583,490 Valuation allowance (1,283,162 ) (1,085,551 ) Deferred tax assets, net $ 11,718 $ 10,865 Deferred tax liability: Trademark acquired at acquisition of Maison Monterey Park 50,367 51,273 Deferred tax liability, net of deferred tax assets $ 38,648 $ 40,408 As of July 31, 2023 and April 30, 2023, Maison and Maison El Monte had approximately $2.78 million and $2.25 million, respectively, of U.S. federal NOL carryovers available to offset future taxable income which do not expire but are limited to 80% of income until utilized. As of July 31, 2023 and April 30, 2023, Maison and Maison El Monte had approximately $2.11 million and $1.58 million, respectively, of California state net operating loss which can be carried forward up to 20 years to offset future taxable income. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends upon the Company’s future generation of taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. After consideration of all the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. The Company recorded $11,279 and $11,261 of interest and penalties related to understated income tax payments for the three months ended July 31, 2023 and 2022, respectively. As of July 31, 2023 and April 30, 2023, the Company had significant uncertain tax positions of $114,561 and $103,282. The Company intends to file amended income tax returns in 2023 with respect to these positions. The tax late payment was mainly due to the change in the tax year-end; the year-end for the purpose of financial statements reporting already changed to fiscal year ending April 30 from calendar year-end, and the Company recorded the income tax provision and income tax liability for the three months ending July 31, 2023 and 2022 and as of July 31, 2023 and April 30, 2023 for the taxable income (loss) in the consolidated financial statements. The Company has not yet filed an amendment to the income tax returns and therefore did not receive the actual tax late payment notice from the IRS yet. As of July 31, 2023, the Company’s U.S. income tax returns filed for the year ending on December 31, 2019 and thereafter are subject to examination by the relevant taxation authorities. |
Other Income
Other Income | 3 Months Ended |
Jul. 31, 2023 | |
Other Income [Abstract] | |
Other income | 17. Other income For the three months ended July 31, 2023, other income mainly consists of $0.38 million employee retention credit (“ERC”) received (after net-off with investment loss of $28,456). The ERC is a tax credit for businesses that continued to pay employees while shut down due to the COVID-19 pandemic or had significant declines in gross receipts from March 13, 2020 to December 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and contingencies | 18. Commitments and contingencies Contingencies The Company is otherwise periodically involved in various legal proceedings that are incidental to the conduct of its business, including, but not limited to, employment discrimination claims, customer injury claims, and investigations. When the potential liability from a matter can be estimated and the loss is considered probable, the Company records the estimated loss. Due to uncertainties related to the resolution of lawsuits, investigations, and claims, the ultimate outcome may differ from the estimates. Although the Company cannot predict with certainty the ultimate resolution of any lawsuits, investigations, and claims asserted against it, management does not believe any currently pending legal proceeding to which the Company is a party will have a material adverse effect on its financial statements. In May 2020, Maison El Monte was named as a co-defendant in a complaint filed by a consumer advocacy group alleging violations of a California health and safety regulation. The case is pending in the Superior Court of the State of California, and as such, the Company has not made any accruals of possible loss for the year ended April 30, 2023 related to this case. In June 2022, Maison San Gabriel entered into a confidential settlement agreement with the plaintiff in connection with a California employment law case whereby Maison San Gabriel agreed to pay $98,500 to plaintiff in full settlement of all claims in the case. As a result of the settlement agreement, the Company accrued $98,500 as a loss relating to the case for the fiscal year ended April 30, 2022. During the year ended April 30, 2023, the Company accrued additional $40,000 litigation loss. This settlement amount is subject to reduction by a court proceeding scheduled in 2023. Commitments On April 19, 2021, JD E-commerce America Limited (“JD US”) and the Company entered into a Collaboration Agreement (the “Collaboration Agreement”) pursuant to which JD.com will provide services to Maison focused on updating in store technology through the development of a new mobile app, the updating of new in-store technology, and revising store layouts to promote efficiency. The Collaboration Agreement provided for a consultancy and initialization fee of $220,000, 40% of which was payable within three (3) days of effectiveness, 40% of which is due within three (3) days of the completion and delivery of initialization services (including initializing of a feasibility plan, store digitalization, delivery of online retailing and e-commerce business and operational solutions for the Stores) as outlined in the Collaboration Agreement, and the remaining 20% is payable within three (3) days of the completion and delivery of the implementation services (including product and merchandise supply chain configuration, staff training for operation and management of the digital solutions, installation and configuration of hardware, customization of software, concept design and implementation), as outlined in the Collaboration Agreement. The Collaboration Agreement also included certain additional storage and implementation fees to be determined by the parties and royalty fees, following the commercial launch of the platform developed by JD US, of 1.2% of gross merchandise value based on information generated by the platform. For each additional store requiring Consultancy and Initialization service, an additional $50,000 will be charged for preparing the feasibility plan for such additional store. The Collaboration Agreement has an initial term of 10 years and customary termination and indemnification provisions. Simultaneously with the effectiveness of the Collaboration Agreement, JD US and Maison entered into an Intellectual Property License Agreement (the “IP Agreement”) outlining certain trademarks, logos and designs, and other intellectual property rights used in connection with the retail supermarket operations outlined in the Collaboration Agreement, which includes an initial term of 10 years and customary termination provisions. There are no additional licensing fees or costs associated with the IP Agreement. As of the date of this report, there is no new progress on the collaboration agreement with JD US. |
Acquisition of Subsidiary
Acquisition of Subsidiary | 3 Months Ended |
Jul. 31, 2023 | |
Acquisition of Subsidiary [Abstract] | |
Acquisition of subsidiary | 19. Acquisition of subsidiary 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. Mrs. Grace Xu (spouse of Mr. John Xu, the Company’s chief executive officer) is the selling shareholder of GF Supermarket of MP Inc. with 49% ownership percentage. Another selling shareholder of GF Supermarket of MP Inc. is DNL Management Inc with 51% ownership percentage, who is not a related party of the Company. The purchase consideration was $1.5 million. On February 21, 2023, the Company and the selling shareholders renegotiated and entered into an Amended Stock Purchase Agreement with an effective date on October 31, 2022, to amend the purchase price to $2.5 million, which both parties believed reflected the true fair value of Maison Monterey Park. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of Maison Monterey Park is calculated as follows: Total purchase considerations $ 2,500,000 Fair value of tangible assets acquired: Accounts receivable 79,651 Due from related party 25,000 Property and equipment 448,932 Security deposit 161,945 Inventory 872,084 Deferred tax asset 10,545 Operating lease right-of-use assets 4,680,216 Intangible assets (trademark) acquired 194,000 Total identifiable assets acquired 6,472,373 Fair value of liabilities assumed: Bank overdraft (281,940 ) Accounts payable (865,769 ) Contract liabilities (10,369 ) Income tax payable (183,262 ) Accrued liability and other payable (85,789 ) Tenant Security deposit (32,200 ) Operating lease liabilities (4,680,967 ) Deferred tax liability (54,288 ) Total liabilities assumed (6,194,584 ) Net identifiable assets acquired 277,789 Goodwill as a result of the acquisition $ 2,222,211 The following condensed unaudited pro forma consolidated results of operations for the Company for the three months ended July 31, 2022 present the results of operations of the Company and Maison Monterey Park as if the acquisitions occurred on May 1, 2022, respectively. The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisitions been completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results. For the (Unaudited) Revenue $ 14,232,869 Operating costs and expenses 14,469,401 Loss from operations (236,532 ) Other income 8,386 Income tax expense (17,926 ) Net loss $ (246,072 ) |
Subsequent Event
Subsequent Event | 3 Months Ended |
Jul. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | 20. Subsequent Event The Company follows the guidance in FASB ASC 855-10 for the disclosure of subsequent events. The Company evaluated subsequent events through the date the financial statements were issued and determined the Company has no major subsequent event that need to be disclosed. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Jul. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The interim consolidated financial information as of July 31, 2023 and for the three months periods ended July 31, 2023 and 2022 have been prepared without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. The interim consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2023, previously filed with the SEC on August 1, 2023. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s interim consolidated financial position as of June 30, 2023, its interim consolidated results of operations and cash flows for the three months ended July 31, 2023 and 2022, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries and, when applicable, entities for which the Company has a controlling financial interest. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. |
Noncontrolling interests | Noncontrolling interests The Company follows FASB (Financial Accounting Standards Board) ASC (Accounting Standards Codification) Topic 810, “Consolidation,” governing the accounting for and reporting of noncontrolling interests (“NCI”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCI be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially-owned consolidated subsidiary be allocated to noncontrolling interests even when such allocation might result in a deficit balance. The net income attributed to NCI was separately designated in the accompanying statements of operations. Losses attributable to NCI in a subsidiary may exceed a NCI’s interests in the subsidiary’s equity. The excess attributable to NCI is attributed to those interests. NCIs shall continue to be attributed their share of losses even if that attribution results in a deficit NCIs balance. As of July 31, 2023 and April 30, 2023, the Company had NCIs of $346,162 and $267,947, respectively, which represent 9% of the equity interest of Maison San Gabriel, 14.75% of the equity interest of Maison Monrovia and 8.33% of the equity interest of Maison El Monte. For the three months ended July 31, 2023 and 2022, the Company had net income of $78,215 and $26,653, respectively, that were attributable to NCIs. |
Liquidity | Liquidity As reflected in the accompanying consolidated financial statements, the Company had retained earnings of $417,771 at July 31, 2023, the Company had net loss attributable to the Company of $104,939 and $597,040 for the three months ended July 31, 2023 and 2022, respectively. The management plans to increase its revenue by strengthening its sales force, providing attractive sales incentive programs, recruiting experienced industry-related managerial personnel, and increasing marketing and promotion activities. Management also intends to raise additional funds by way of a private or public offering, or by obtaining loans from banks or others. The Company had $1.61 million cash on hand and working capital deficit of $1.44 million at July 31, 2023. The Company has historically funded its working capital needs primarily from operations. The working capital requirements are affected by the efficiency of operations and depend on the Company’s ability to increase its revenue. The Company believes that its cash on hand and operating cash flows will be sufficient to fund its operations over at least the next 12 months from the date of issuance of these financial statements. However, the Company may need additional cash resources in the future if the Company experiences changed business conditions or other developments, and may also need additional cash resources in the future if the Company wishes to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions. If it is determined that the cash requirements exceed the Company’s amounts of cash on hand, the Company may seek to issue debt or equity securities or obtain a credit facility. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates are used for, but not limited to, useful lives of property and equipment, commitments and contingencies, inventory reserve, allowance for estimated uncollectable accounts receivable and other receivables, impairment of long-lived assets, contract liabilities and valuation of deferred tax assets. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, these estimates have become more challenging, and actual results could differ materially from these estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash and equivalents include cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities when purchased of three months or less. The Company’s cash is maintained at financial institutions in the United States of America. Deposits in these financial institutions may, from time to time, exceed the Federal Deposit Insurance Corporation (“FDIC”)’s federally insured limits. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The bank deposits exceeding the standard insurance amount will not be covered. As of July 31, 2023 and April 30, 2023, cash balances held in the banks, exceeding the standard insurance amount, are $862,081 and $1,819,766, respectively. The Company has not experienced any losses in accounts held in these financial institutions and believes it is not exposed to any risks on its cash held in these financial institutions. Cash from operating, investing and financing activities of the consolidated statement of cash flows are net of assets and liabilities acquired of Maison Monterey Park. |
Restricted cash | Restricted cash Restricted cash is an amount of cash deposited with banks in conjunction with borrowings from banks. Restriction on the use of such cash and the interest earned thereon is imposed by the banks and remains effective throughout the terms of the bank borrowings and notes payable. Restricted cash is classified as non-current assets on the Company’s consolidated balance sheets, as all the balances are not expected to be released to cash within the next 12 months. As of July 31, 2023 and April 30, 2023, the Company had restricted cash of $1,101 and $1,101, respectively. |
Accounts receivable | Accounts receivable The Company’s accounts receivable arises from product sales. The Company does not adjust its receivables for the effects of a significant financing component at contract inception if it expects to collect the receivables in one year or less from the time of sale. The Company does not expect to collect receivables greater than one year from the time of sale. The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of July 31, 2023 and April 30, 2023, there was no allowance for the doubtful accounts. |
Accounts receivable — related parties | Accounts receivable — related parties Accounts receivable consist primarily of receivables from related parties on 30-day credit terms and are presented net of an allowance for estimated uncollectible amounts. The Company periodically assesses its accounts receivable for collectability on a specific identification basis. If collectability of an account becomes unlikely, an allowance is recorded for that doubtful account. Once collection efforts have been exhausted, the accounts receivable is written off against the allowance. As of July 31, 2023 and April 30, 2023, there was no allowance for the doubtful accounts. |
Inventories, net | Inventories, net Inventories consisting of products available for sale are primarily accounted for using the first-in, first-out method and are valued at the lower of cost and net realizable value. This valuation requires the Company to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, liquidations, and expected recoverable values of each disposition category. The Company records inventory shrinkage based on the historical data and management’s estimates and provides a reserve for inventory shrinkage for the three months ended July 31, 2023 and 2022. |
Prepayments | Prepayments Prepayments and deposits are mainly comprised of cash deposited and advanced to suppliers for future inventory purchases and services to be performed. This amount is refundable and bears no interest. For any prepayments that management determines will not be in receipts of inventories, services, or refundable, the Company recognizes an allowance account to reserve such balances. Management reviews its prepayments on a regular basis to determine if the allowance is adequate and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of July 31, 2023 and April 30, 2023, the Company had made prepayment to its vendors. The Company’s management continues to evaluate the reasonableness of the allowance policy and update it if necessary. |
Other receivables and other current assets | Other receivables and other current assets Other receivables and other current assets primarily include non-interest-bearing loans of the other business entities. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection are made. As of July 31, 2023 and April 30, 2023, the Company did not have any bad debt allowance for other receivables. |
Property and equipment | Property and equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the individual assets. The following table includes the estimated useful lives of certain of our asset classes: Furniture & fixtures 5 – 10 years Leasehold improvements Shorter of the lease term or estimated useful life of the assets Equipment 5 – 10 years Automobiles 5 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of operations. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, which include property, plant and equipment, intangible assets with finite lives, and operating lease right-of-use assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC 360-10-15, “Impairment or Disposal of Long-Lived Assets.” ASC 360-10-15 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group asset group exceeds its fair value based on discounted cash flow analysis or appraisals. There was no impairment of long-lived assets for the three months ended July 31, 2023 and 2022. |
Security deposits | Security deposits Security deposits primarily include deposits made to the Company’s landlord for its supermarkets and office facilities. These deposits are refundable upon expiration of the lease. |
Long-term investment | Long-term investment The Company accounts for investments with less than 20% of the voting shares and does not have the ability to exercise significant influence over operating and financial policies of the investee using the cost method. The Company elects the measurements alternative and records investment in equity securities at the historical cost in its consolidated financial statements and subsequently records any dividends received from the net accumulated earrings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reduction in the cost of the investments. In May 2021, the Company purchased a 10% equity interest in Dai Cheong Trading Inc., a grocery trading company, for $162,665 from DC Holding. DC Holding is 100% owned by John Xu, the Chairman and Chief Executive Officer of the Company. See Note 13 — “ Related party balances and transactions In December 2021, the Company purchased a 10% equity interest in HKGF Market of Alhambra, Inc, the legal entity holding the store for $40,775 from Ms. Grace Xu, sole shareholder of HKGF Market of Alhambra, Inc. and a related party as the spouse of Mr. John Xu, the Chairman and Chief Executive Officer of the Company. See Note 13 — “ Related party balances and transactions On June 27, 2023, the Company invested $1,440,000 for 40% interest in HKGF Market of Arcadia, LLC (“HKGF Arcadia”). See Note 8 — “ Equity method investment . Investment in equity securities is evaluated for impairment when facts or circumstances indicate that the fair value of the long-term investments is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near-term prospects of the investments; and (v) ability to hold the security for a period sufficient to allow for any anticipated recovery in fair value. No event had occurred and indicated that other-than-temporary impairment existed and therefore the Company did not record any impairment charges for its investments for the three months ended July 31, 2023. |
Goodwill | Goodwill Goodwill is the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. In accordance with ASC Topic 350, “Intangibles-Goodwill and Other,” goodwill is not amortized but is tested for impairment, annually or more frequently when circumstances indicate a possible impairment may exist. Impairment testing is performed at a reporting unit level. Generally, the Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If factors indicate that this is the case, the Company then estimates the fair value of the related reporting unit determined using discounted cash flow (“DCF”) analysis. A number of significant assumptions and estimates are involved in the application of the DCF analysis to forecast operating cash flows, including the discount rate, the internal rate of return and projections of realizations and costs to produce. Management considers historical experience and all available information at the time the fair values of its reporting units are estimated. If the fair value is less than the carrying value, the goodwill of the reporting unit is determined to be impaired and the Company will record an impairment equal to the excess of the carrying value over its fair value. The Company did not record any impairment loss during the three Months ended July 31, 2023 and 2022. |
Leases | Leases On May 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Lease (FASB ASC Topic 842). The adoption of Topic 842 resulted in the presentation of operating lease right-of-use (“ROU”) assets and operating lease liabilities on the consolidated balance sheet. See Note 14 — “ Leases The Company determines if an arrangement contains a lease at the inception of a contract under ASC Topic 842. At the commencement of each lease, management determines its classification as an operating or finance lease. For leases that qualify as operating leases, ROU assets and liabilities are recognized at the commencement date based on the present value of any remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU assets include adjustments for accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. A short-term lease is defined as a lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. When determining whether a lease qualifies as a short-term lease, the Company evaluates the lease term and the purchase option. Hence, the Company does not recognize any operating lease ROU assets and operating lease liabilities for short-term leases. The Company evaluates the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group. If the carrying value of the asset group is determined to not be recoverable and is in excess of the estimated fair value, the Company will record an impairment loss in other expenses in the consolidated statements of operations. The Company also subleases certain mini stores that are within the supermarket to other parties. The Company collects security deposits and rent from these sub-lease tenants. The rent income collected from sub-lease tenants recognized as rental income and deducted occupancy cost. Occupancy cost mainly consists of rents and common area maintenance fees. |
Fair value measurements | Fair value measurements The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with U.S GAAP. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Fair value measurements of nonfinancial assets and non-financial liabilities are primarily used in the impairment analysis of intangible assets and long-lived assets. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. |
Revenue recognition | Revenue recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), from May 1, 2020, using the modified retrospective transition approach to all contracts that did not have an impact on the beginning retained earnings on May 1, 2020. The Group’s revenue recognition policies effective on the adoption date of ASC 606 are presented as below. In accordance with ASC Topic 606, the Company’s performance obligation is satisfied upon the transfer of goods to the customer, which occurs at the point of sale. Revenues are recorded net of discounts, sales taxes, and returns and allowances. The Company sells Company gift cards to customers. There are no administrative fees on unused gift cards, and the gift cards do not have an expiration date. Gift card sales are recorded as contract liability when sold and are recognized as revenue when either the gift card is redeemed or the likelihood of the gift card being redeemed is remote (“gift card breakage”). The Company’s gift card breakage rate is based upon historical redemption patterns and it recognizes breakage revenue utilizing the redemption recognition method. The Company also offers discounts on the gift cards sold to its customers. The discounts are recorded as sales discount when gift card been redeemed. The Company’s contract liability related to gift cards was $370,836 and $449,334 as of July 31, 2023 and April 30, 2023, respectively. The following table summarizes disaggregated revenue from contracts with customers by product group: perishable and non-perishable goods. Perishable product categories include meat, seafood, vegetables, and fruit. Non-perishable product categories include grocery, liquor, cigarettes, lottery, newspaper, reusable bag, non-food, and health products. Three Months ended 2023 2022 Perishables $ 7,723,846 $ 6,454,274 Non-perishables 6,028,469 4,955,414 Total revenues $ 13,752,315 $ 11,409,688 |
Cost of sales | Cost of sales Cost of sales includes the rental expense, depreciation, the direct costs of purchased merchandise, shrinkage costs, store supplies, and inbound shipping costs. The cost of sales is a net of vendor’s rebates and discounts. The Company subleases certain mini stores that are within the supermarket to other parties. The Company collects security deposits and rents from these sub-lease tenants. The rent income collected from sub-lease tenants are recognized as rental income and deducted rental expense. |
Selling expenses | Selling expenses Selling expenses mainly consist of advertising costs, promotion expenses, and payroll and related expenses for personnel engaged in selling and marketing activities. Advertising expenses, which consist primarily of online and offline advertisements, are expensed when the services are performed. The Company’s advertising expenses were $30,637 and $10,078 for the three months ended July 31, 2023 and 2022, respectively. |
General and administrative expenses | General and administrative expenses General and administrative expenses mainly consist of payroll and related costs for employees involved in general corporate functions, professional fees and other general corporate expenses, as well as expenses associated with the use by these functions of facilities and equipment, such as rental and depreciation expenses. |
Concentrations of risks | Concentrations of risks (a) Major customers For each of the three months ended July 31, 2023 and 2022, the Company did not have any customers that accounted for more than 10% of consolidated total net sales. (b) Major vendors The following table sets forth information as to the Company’s suppliers that accounted for 10% or more of the Company’s total purchases for the three months ended July 31, 2023 and 2022. Three Months Ended Three Months Ended Supplier Percentage of Supplier Percentage of A 34 % A 21 % B 19 % B 20 % C 9 % C 19 % (c) Credit risks Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. Accounts receivable are typically unsecured and derived from products sold to customers, and are thereby exposed to credit risk. However, the Company believes the concentration of credit risk in its accounts receivable is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends, and other information. Historically, the Company did not have any bad debt on its accounts receivable. The Company also has loan receivables to its centralized vendors occasionally. The loan receivables are typically unsecured and exposed to credit risk. However, the Company believes that the loan receivables amount to its centralized vendor is managed by its finance department and these centralized vendors are still providing products monthly to the Company. The Company does not generally require collateral from the vendors. The Company also evaluates the need for an allowance for doubtful accounts based on upon factors surrounding the credit risks. Historically, the Company did not have any bad debt on its loan receivables and all loan receivables been collected in subsequent period. |
Income taxes | Income taxes Income taxes are accounted for in accordance with the provisions of ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s deferred tax assets are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. In determining the need for a valuation allowance, management reviews both positive and negative evidence, including current and historical results of operations, future income projections, and the overall prospects of our business. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income offset by deferred tax liabilities. Changes in recognition or measurement are reflected in the period in which the judgment occurs. The Company utilizes a two-step approach to recognizing and measuring uncertain income tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating our tax positions and estimating its tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. The Company includes interest and penalties related to its tax contingencies in income tax expense. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the CARES Act) was signed into law, intended to provide economic relief to those impacted by the COVID-19 pandemic. The CARES Act, among other things, includes provisions addressing the carryback of net operating losses for specific periods, temporary modifications to the limitations placed on the tax deductibility of net interest expenses, and technical amendments for qualified improvement property (QIP). The impacts of the CARES Act are recorded as components within the Company’s deferred income tax liabilities and income tax receivable on the Company’s balance sheets. |
Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per ordinary share is computed by dividing net earnings (loss) attributable to common stockholders by the weighted-average number of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to common stockholders by the sum of the weighted average number of common stock outstanding and of potential common stock (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common stock that has an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) is excluded from the calculation of diluted earnings per share. For the three months ended July 31, 2023 and 2022, the Company had no dilutive potential common stock. |
Related Parties | Related Parties The Company identifies related parties, accounts for, and discloses related party transactions in accordance with ASC Topic 850 “Related Party Disclosures” and other relevant ASC standards. Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions in Note 13 — “ Related party balances and transactions |
Segment Information | Segment Information The Company’s chief operating decision-maker has been identified as the chief executive officer, who reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues by different product types for purposes of allocating resources and evaluating financial performance. The Company and its subsidiaries offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel and other items and services in its stores. The Company’s supermarket stores are geographically based, have similar economic characteristics, and similar expected long-term financial performance. The Company’s operating segments and reporting units are its four stores, which are reported in one reportable segment. There are no segment managers who are held accountable for operations, operating results, and plans for levels or components below the consolidated unit level. Based on qualitative and quantitative criteria established by ASC Topic 280, “Segment Reporting”, the Company considers itself to be operating within one reportable segment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. In March 2023, the FASB issued ASU 2023-01, Lease (Topic 842): Common Control Arrangements, which clarifies the accounting for leasehold improvements associated with leases between entities under common control (hereinafter referred to as common control lease). ASU 2023-01 requires entities to amortize leasehold improvements associated with common control lease over the useful life to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset through a lease, and to account for any remaining leasehold improvements as a transfer between entities under common control through an adjustment to equity when the lessee no longer controls the underlying asset. This ASU will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. An entity may apply ASU 2023-01 either prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2023-01 will have on our consolidated financial statement presentations and disclosures. No other new accounting pronouncements issued or effective had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Certain of Our Asset Alasses | The following table includes the estimated useful lives of certain of our asset classes: Furniture & fixtures 5 – 10 years Leasehold improvements Shorter of the lease term or estimated useful life of the assets Equipment 5 – 10 years Automobiles 5 years |
Schedule of Disaggregated Revenue from Contracts with Customers | The following table summarizes disaggregated revenue from contracts with customers by product group: perishable and non-perishable goods. Perishable product categories include meat, seafood, vegetables, and fruit. Non-perishable product categories include grocery, liquor, cigarettes, lottery, newspaper, reusable bag, non-food, and health products. Three Months ended 2023 2022 Perishables $ 7,723,846 $ 6,454,274 Non-perishables 6,028,469 4,955,414 Total revenues $ 13,752,315 $ 11,409,688 |
Schedule of Table Sets Forth Information as to the Company’s Suppliers | The following table sets forth information as to the Company’s suppliers that accounted for 10% or more of the Company’s total purchases for the three months ended July 31, 2023 and 2022. Three Months Ended Three Months Ended Supplier Percentage of Supplier Percentage of A 34 % A 21 % B 19 % B 20 % C 9 % C 19 % |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Inventories, Net [Abstract] | |
Schedule of Inventories, Net | A summary of inventories, net is as follows: July 31, April 30, Perishables $ 456,925 $ 487,912 Non-perishables 2,453,637 2,533,824 Reserve for inventory shrinkage (39,513 ) (42,750 ) Inventories, net $ 2,871,049 $ 2,978,986 |
Schedule of Movements of Reserve for Inventory Shrinkage | Movements of reserve for inventory shrinkage are as follows: Three Months Three Months Beginning balance $ 42,750 $ 135,122 GF Supermarket of MP, Inc. inventory shrinkage reserve at July 1, 2022 — 37,684 Provision for (reversal of) inventory shrinkage reserve (3,237 ) 8,306 Ending Balance $ 39,513 $ 181,112 |
Prepayments (Tables)
Prepayments (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Prepayments [Abstract] | |
Schedule of Prepayments | July 31, April 30, Prepayment for inventory purchases $ 1,083,820 $ 1,547,243 Total prepayments $ 1,083,820 $ 1,547,243 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Property Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | July 31, April 30, Furniture & Fixtures $ 3,025,516 $ 3,025,516 Equipment 1,011,333 1,011,333 Leasehold Improvement 499,453 486,644 Automobile 37,672 37,672 Total property and equipment 4,573,974 4,561,165 Accumulated depreciation (3,953,413 ) (3,889,702 ) Property and equipment, net $ 620,561 $ 671,463 |
Equity method investment (Table
Equity method investment (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Equity method investment [Abstract] | |
Schedule of Condensed Balance Sheet | The following table shows the condensed balance sheet of HKGF Arcadia as of July 31, 2023. July 31, ASSETS Current Assets Cash and equivalents $ 86,395 Accounts receivable 10,696 Inventories, net 425,133 Total Current Assets 522,224 Property and equipment, net 426,786 Intangible asset, net 6,031 Goodwill 1,680,000 Security deposits 159,589 Total Assets $ 2,794,630 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current Liabilities Accounts payable $ 1,039,292 Accrued expenses and other payables 3,400 Total Current Liabilities 1,042,692 Total Liabilities 1,042,692 Stockholders’ Equity Paid in Capital 3,440,000 Subscription receivable (1,300,000 ) Accumulated deficit (388,062 ) Total Stockholders’ Equity 1,751,938 Total Liabilities and Stockholders’ Equity $ 2,794,630 |
Schedule of Condensed Statement of Operations | The following table shows the condensed statement of operations of HKGF Arcadia for the period from July 1, 2023 to July 31, 2023. For the period from Net Revenues Supermarket $ 577,824 Total Revenues, Net 577,824 Cost of Revenues Supermarket 428,535 Total Cost of Revenues 428,535 Gross Profit 149,289 Operating Expenses 220,430 Total Operating Expenses 220,430 Loss from Operations (71,141 ) Income (Loss) Before Income Taxes (71,141 ) Income Tax Provisions - Net Loss (71,141 ) Net Loss Attributable to Maison Solutions Inc. $ (28,456 ) |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Accrued Expenses and Other Payables [Abstract] | |
Schedule of Accrued Expenses and Other Payables | July 31, April 30, Accrued payroll $ 263,616 $ 301,527 Accrued interest expense 131,388 127,638 Accrued loss for legal matter 237,000 237,000 Other payables 16,342 26,878 Due to third parties 118,703 145,775 Sales tax payable 41,952 28,978 Total accrued expenses and other payables $ 809,001 $ 867,796 |
Loan Payables (Tables)
Loan Payables (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Loan Payables [Abstract] | |
Schedule of Company’s Loans | A summary of the Company’s loans is listed as follows: Lender Due date July 31, April 30, American First National Bank March 2, 2024 $ 227,166 $ 307,798 U.S. Small Business Administration June 15, 2050 2,603,544 2,624,329 Total loan payables 2,830,710 2,932,127 Current portion of loan payables (285,489 ) (370,828 ) Non-current loan payables $ 2,545,221 $ 2,561,299 |
Schedule of Small Business Administration | U.S. Small Business Administration (the “SBA”) Borrower Due date July 31, April 30, Maison Monrovia June 15, 2050 $ 147,419 $ 148,574 Maison San Gabriel June 15, 2050 1,965,117 1,980,725 Maison El Monte June 15, 2050 491,007 495,030 Total SBA loan payables $ 2,603,544 $ 2,624,329 |
Schedule of Future Minimum Principal Amount of Loan Payments | As of July 31, 2023, the future minimum principal amount of loan payments to be paid by year are as follows: Year Ending April 30, Amount 2024 $ 58,323 2025 65,626 2026 67,792 2027 70,041 2028 72,376 Thereafter 2,269,386 Total $ 2,603,544 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Related party transactions Name of Related Party Nature Relationship Three Months ended Three Months ended The United Food, LLC Supermarket product sales John Xu, the Company’s chief executive officer, is one of the United Food LLC’s shareholders $ 2,663 $ 1,152 GF Supermarket of MP, Inc. (the Company acquired all the assets from Hong Kong Supermarket of Monterey Park, Ltd on August 1, 2021) Supermarket product sales Grace Xu, spouse of John Xu, is the major shareholder with 49% ownership, sold this entity to the Company on June 30, 2022 — 54,218 HKGF Market of Arcadia, LLC Supermarket product sales 40% investee of the Company 5,972 — HKGF Market of Alhambra, Inc. Supermarket product sales Grace Xu, spouse of John Xu, controls this entity with 100% ownership 59,883 83,958 Total $ 68,518 $ 139,328 Name of Related Party Nature Relationship Three Months Three Months The United Food, LLC Supermarket product sales John Xu, the Company’s chief executive officer, is one of the United Food LLC’s shareholders $ 674 $ 2,277 HKGF Market of Arcadia, LLC Supermarket product sales 40% investee of the Company 20,587 — GF Supermarket of MP, Inc. (the Company acquired all the assets from Hong Kong Supermarket of Monterey Park, Ltd on August 1, 2021) Supermarket product sales Grace Xu, spouse of John Xu, is the major shareholder with 49% ownership, sold this entity to the Company on June 30, 2022 — 4,257 Dai Cheong Trading Co Inc. Import and wholesales of groceries John Xu, controls this entity with 100% ownership through DC Holding CA, Inc. 37,973 26,606 HKGF Market of Alhambra, Inc. Supermarket product sales Grace Xu, spouse of John Xu, controls this entity with 100% ownership — 809 Total $ 59,234 $ 33,949 Name of Related Party Nature Relationship July 31, April 30, HKGF Supermarket of Arcadia LLC. Supermarket product sales 40% investee of the Company $ 5,965 $ — HKGF Market of Alhambra, Inc. Supermarket product sales Grace Xu, spouse of John Xu, controls this entity with 100% ownership 241,345 283,005 United Food LLC. Supermarket product sales John Xu, is one of the United Food LLC’s shareholders 7,763 6,610 Total $ 255,073 $ 289,615 Name of Related Party Nature Relationship July 31, April 30, Hong Kong Supermarket of Monterey Park, Ltd Due on demand, John Xu, controls this entity $ 438,725 $ 438,725 Dai Cheong Trading Co Inc. Import and wholesales of groceries John Xu, controls this entity with 100% ownership through DC Holding CA, Inc. 31,057 26,585 Total $ 469,782 $ 465,310 Name of Related Party Nature Relationship July 31, April 30, Ideal Investment Due on demand, John Xu, has majority ownership of this entity 3,995 3,995 Ideal City Capital Due on demand, John Xu, has majority ownership of this entity 30,000 30,000 Total $ 33,995 $ 33,995 Name of Related Party Nature Relationship July 31, April 30, John Xu due on demand, The Company’s Chairman and Chief Executive Officer $ 200,810 $ 200,810 Grace Xu due on demand, Spouse of John Xu 40,775 40,775 Total $ 241,585 $ 241,585 |
Schedule of Investment in Equity Securities Purchased from Related Parties | Investment in equity securities purchased from related parties Name of Investment Company Nature of Investment percentage Relationship As of As of Dai Cheong Trading Co Inc. Import and wholesales of groceries 10 % John Xu, the Company’s Chairman and Chief Executive Officer, controls this entity with 100% ownership through DC Holding CA, Inc. $ 162,665 $ 162,665 HKGF Market of Alhambra, Inc. Supermarket product sales 10 % Grace Xu, spouse of John Xu, controls this entity with 100% ownership 40,775 40,775 HKGF Market of Arcadia, LLC Supermarket product sales 40 % 40% investee of the Company 1,411,544 — Total $ 1,614,984 $ 203,440 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Schedule of Store Lease Detail Information | The Company’s leases mainly consist of store rent and copier rent. The store lease detail information is listed below: Store Lease Term Due Maison Monrovia * August 31, 2055 (with extension) Maison San Gabriel November 30, 2030 Maison El Monte July 14, 2028 Maison Monterey Park May 1, 2028 * On April 1, 2023, the Company renewed lease of Maison Monrovia for additional five years with new monthly based rent of $40,000 for first year and 3% increase for each of the next four years. On July 6, 2023, the Company and the lessor entered an amendment to lease and the lessor will provide monthly basic rent abatement of $5,000 from August 1, 2023 through March 31, 2024, $2,500 from April 1, 2024 through March 31, 2025, and $1,000 from April 1, 2025 through March 31, 2026. As a result of increased monthly base rent, the Company remeasured the lease and found the ROU and lease liability of this lease increased by $3.62 million for each. Store Lease Term Due Maison Monrovia January 1, 2028 Maison San Gabriel January 1, 2028 Maison Monterey Park August 1, 2027 |
Schedule of Operating ROU Assets and Lease Liabilities | The Company’s operating ROU assets and lease liabilities were as follows: July 31, April 30, Operating ROU: ROU assets – supermarket leases $ 22,010,209 $ 22,517,925 ROU assets – copier leases 26,328 27,265 Total operating ROU assets $ 22,036,537 $ 22,545,190 July 31, April 30, Operating lease obligations: Current operating lease liabilities $ 1,780,559 $ 1,761,182 Non-current operating lease liabilities 22,251,277 22,711,760 Total lease liabilities $ 24,031,836 $ 24,472,942 |
Schedule of Operating Lease Liabilities Maturity | As of July 31, 2023, the five-year maturity of the Company’s operating lease liabilities is as follow: Years Ending July 31, Operating 2024 $ 2,805,260 2025 2,865,825 2026 2,926,578 2027 2,980,223 2028 2,866,526 Thereafter 24,218,071 Total future undiscounted lease payments 38,662,483 Less: interest (14,630,647 ) Present value of lease liabilities $ 24,031,836 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of Provision for Income Taxes Provisions | The provision for income taxes provisions consists of the following components: Three Months ended Three Months ended Current: Federal income tax expense $ 82,564 $ 7,720 State income tax expense 38,102 10,507 Deferred: Federal income tax benefit (1,320 ) (226 ) State income tax benefit (440 ) (75 ) Total $ 118,906 $ 17,926 |
Schedule of Federal Statutory Rate on Income (Loss) before Income Taxes | The following is a reconciliation of the difference between the actual (benefit) provision for income taxes and the (benefit) provision computed by applying the federal statutory rate on income (loss) before income taxes: Three Months ended Three Months ended Federal statutory rate 21.00 % (21.00 )% State statutory rate, net of effect of state income tax deductible to federal income tax 7.02 % (5.99 )% Permanent difference – penalties, interest, and others (7.62 )% 1.11 % Utilization of net operating losses (“NOL”) (12.89 )% — % Valuation allowance 121.48 % 29.13 % Effective tax rate 129.00 % 3.25 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred taxes are comprised of the following: July 31, April 30, Deferred tax assets: Bad debt expense $ 40,550 $ 70,929 Lease liabilities, net of ROU 524,149 441,997 NOL 730,181 583,490 Valuation allowance (1,283,162 ) (1,085,551 ) Deferred tax assets, net $ 11,718 $ 10,865 Deferred tax liability: Trademark acquired at acquisition of Maison Monterey Park 50,367 51,273 Deferred tax liability, net of deferred tax assets $ 38,648 $ 40,408 |
Acquisition of Subsidiary (Tabl
Acquisition of Subsidiary (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Acquisition of Subsidiary [Abstract] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of Maison Monterey Park is calculated as follows: Total purchase considerations $ 2,500,000 Fair value of tangible assets acquired: Accounts receivable 79,651 Due from related party 25,000 Property and equipment 448,932 Security deposit 161,945 Inventory 872,084 Deferred tax asset 10,545 Operating lease right-of-use assets 4,680,216 Intangible assets (trademark) acquired 194,000 Total identifiable assets acquired 6,472,373 Fair value of liabilities assumed: Bank overdraft (281,940 ) Accounts payable (865,769 ) Contract liabilities (10,369 ) Income tax payable (183,262 ) Accrued liability and other payable (85,789 ) Tenant Security deposit (32,200 ) Operating lease liabilities (4,680,967 ) Deferred tax liability (54,288 ) Total liabilities assumed (6,194,584 ) Net identifiable assets acquired 277,789 Goodwill as a result of the acquisition $ 2,222,211 |
Schedule of Indicative of Future Consolidated Results | The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisitions been completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results. For the (Unaudited) Revenue $ 14,232,869 Operating costs and expenses 14,469,401 Loss from operations (236,532 ) Other income 8,386 Income tax expense (17,926 ) Net loss $ (246,072 ) |
Organization (Details)
Organization (Details) | 1 Months Ended | ||
Jun. 30, 2022 | Oct. 31, 2019 | Jul. 31, 2019 | |
Good Fortune Supermarket San Gabriel, LP [Member] | |||
Organization (Details) [Line Items] | |||
Equity method investment ownership percentage | 91% | ||
Good Fortune Supermarket of Monrovia, LP [Member] | |||
Organization (Details) [Line Items] | |||
Equity method investment ownership percentage | 85.25% | ||
Super HK of El Monte, Inc. [Member] | |||
Organization (Details) [Line Items] | |||
Equity method investment ownership percentage | 91.67% | ||
GF Supermarket of MP, Inc. [Member] | |||
Organization (Details) [Line Items] | |||
Equity method investment ownership percentage | 100% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 27, 2023 | Dec. 31, 2021 | May 31, 2021 | Jul. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2023 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Equity interest | $ 346,162 | $ 267,947 | ||||
Net income | 78,215 | $ 26,653 | ||||
Retained earnings | 417,771 | |||||
Net loss | 104,939 | |||||
Net loss | 597,040 | |||||
Stock value | 1,610,000 | |||||
Working capital | 1,440,000 | |||||
Insurance amount | 250,000 | |||||
Standard insurance amount | 862,081 | 1,819,766 | ||||
Restricted cash | $ 1,101 | 1,101 | ||||
Investments percenatge | 20% | |||||
Equity interest percentage | 10% | |||||
Contract liability | $ 370,836 | $ 449,334 | ||||
Advertising expense | $ 30,637 | $ 10,078 | ||||
Total net sales percentage | 10% | 10% | ||||
Purchase percentage | 10% | 10% | ||||
Tax benefit | 50% | |||||
Maison San Gabriel [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Subsidiary, ownership percentage, noncontrolling owner | 9% | 9% | ||||
Maison Monrovia [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Subsidiary, ownership percentage, noncontrolling owner | 14.75% | 14.75% | ||||
Maison El Monte [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Subsidiary, ownership percentage, noncontrolling owner | 8.33% | 8.33% | ||||
Dai Cheong Trading Inc., [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Equity interest percentage | 10% | |||||
DC Holding [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Trading | $ 162,665 | |||||
Chief Executive Officer [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Investment percent | 100% | |||||
HKGF Market of Alhambra, Inc.[Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Equity interest percentage | 10% | |||||
Ms. Grace Xu [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Shareholder value | $ 40,775 | |||||
HKGF Market of Arcadia, LLC [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Equity interest percentage | 40% | |||||
Invested amount | $ 1,440,000 | |||||
HKGF Market of Arcadia, LLC [Member] | Maximum [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Equity interest percentage | 50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of Certain of Our Asset Alasses | 3 Months Ended |
Jul. 31, 2023 | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Leasehold improvements | Shorter of the lease term or estimated useful life of the assets |
Furniture & fixtures [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment | 5 years |
Furniture & fixtures [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment | 10 years |
Equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment | 5 years |
Equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment | 10 years |
Automobiles [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Revenue from Contracts with Customers - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Revenue from Contracts with Customers [Line Items] | ||
Total revenues | $ 13,752,315 | $ 11,409,688 |
Perishables [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Revenue from Contracts with Customers [Line Items] | ||
Total revenues | 7,723,846 | 6,454,274 |
Non-perishables [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Revenue from Contracts with Customers [Line Items] | ||
Total revenues | $ 6,028,469 | $ 4,955,414 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Table Sets Forth Information as to the Company’s Suppliers | Jul. 31, 2023 | Jul. 31, 2022 |
A [Member] | ||
Revenue from External Customer [Line Items] | ||
Percentage of Total Purchases | 34% | 21% |
B [Member] | ||
Revenue from External Customer [Line Items] | ||
Percentage of Total Purchases | 19% | 20% |
C [Member] | ||
Revenue from External Customer [Line Items] | ||
Percentage of Total Purchases | 9% | 19% |
Inventories, Net (Details) - Sc
Inventories, Net (Details) - Schedule of Inventories, Net - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Schedule of Inventories Net [Abstract] | ||
Perishables | $ 456,925 | $ 487,912 |
Non-perishables | 2,453,637 | 2,533,824 |
Reserve for inventory shrinkage | (39,513) | (42,750) |
Inventories, net | $ 2,871,049 | $ 2,978,986 |
Inventories, Net (Details) - _2
Inventories, Net (Details) - Schedule of Movements of Reserve for Inventory Shrinkage - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Schedule of Movements of Reserve for Inventory Shrinkage [Abstract] | ||
Beginning balance | $ 42,750 | $ 135,122 |
GF Supermarket of MP, Inc. Inventory shrinkage reserve at July 1, 2022 | 37,684 | |
Provision for (Reverse of) inventory shrinkage reserve | (3,237) | 8,306 |
Ending Balance | $ 39,513 | $ 181,112 |
Prepayments (Details)
Prepayments (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Apr. 30, 2023 | Jul. 31, 2023 | |
Vendor [Member] | ||
Prepayments (Details) [Line Items] | ||
Prepayment amount | $ 20,000 | $ 20,000 |
XHJC [Member] | ||
Prepayments (Details) [Line Items] | ||
Prepayment amount | $ 1,527,243 | $ 1,063,820 |
Prepayments (Details) - Schedul
Prepayments (Details) - Schedule of Prepayments - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Schedule of prepayments [Abstract] | ||
Prepayment for inventory purchases | $ 1,083,820 | $ 1,547,243 |
Total prepayments | $ 1,083,820 | $ 1,547,243 |
Loan Receivables (Details)
Loan Receivables (Details) - USD ($) | Nov. 04, 2022 | Oct. 30, 2022 | Oct. 28, 2022 | Oct. 14, 2022 | Sep. 09, 2022 | Jan. 01, 2022 | Apr. 30, 2020 |
Loan Receivables [Abstract] | |||||||
Loan amount | $ 1,000,000 | $ 4,000,000 | |||||
Loan amount interest rate | 6% | 4% | 6% | ||||
Repaid amount | $ 433,136 | $ 215,344 | $ 761,932 | $ 1,200,000 | $ 1,800,000 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Property Plant and Equipment [Abstract] | ||
Depreciation expenses | $ 5,792 | |
General and administrative expenses | $ 15,246 | |
Depreciation expense cost of sales | $ 57,920 | $ 124,962 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of Property and Equipment, Net - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 4,573,974 | $ 4,561,165 |
Accumulated depreciation | (3,953,413) | (3,889,702) |
Property and equipment, net | 620,561 | 671,463 |
Furniture & Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,025,516 | 3,025,516 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,011,333 | 1,011,333 |
Leasehold Improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 499,453 | 486,644 |
Automobile [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 37,672 | $ 37,672 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Intangible Assets (Details) [Line Items] | ||
Amortized acquisition | $ 1,078 | |
Amortization expenses | 292 | $ 212 |
Intangible Assets, Amortization Period [Member] | ||
Intangible Assets (Details) [Line Items] | ||
Amortized acquisition | 12,936 | |
Intangible Assets Amortization Period One [Member] | ||
Intangible Assets (Details) [Line Items] | ||
Amortized acquisition | 12,936 | |
Intangible Assets Amortization Period Two [Member] | ||
Intangible Assets (Details) [Line Items] | ||
Amortized acquisition | 12,936 | |
Intangible Assets Amortization Period Three [Member] | ||
Intangible Assets (Details) [Line Items] | ||
Amortized acquisition | 12,936 | |
Intangible Assets Amortization Period Four [Member] | ||
Intangible Assets (Details) [Line Items] | ||
Amortized acquisition | 12,936 | |
Trademarks and Trade Names [Member] | ||
Intangible Assets (Details) [Line Items] | ||
Amortized acquisition | 194,000 | |
Trademarks [Member] | ||
Intangible Assets (Details) [Line Items] | ||
Amortized acquisition | $ 3,233 |
Equity method investment (Detai
Equity method investment (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Jul. 27, 2023 | Dec. 31, 2021 | Jul. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2023 | |
Equity method investment (Details) [Line Items] | |||||
Equity interest percentage | 10% | ||||
Investment loss | $ (28,456) | ||||
Investment | 1,411,544 | ||||
Equity Method Investment, Amount Sold | 0 | $ 85,387 | |||
HKGF Market of Arcadia, LLC [Member] | |||||
Equity method investment (Details) [Line Items] | |||||
Invested amount | $ 1,440,000 | ||||
Equity interest percentage | 40% | ||||
Investment loss | 28,456 | ||||
Investment | $ 1,411,544 | ||||
HKGF Market of Arcadia, LLC [Member] | Owner [Member] | |||||
Equity method investment (Details) [Line Items] | |||||
Ownership percentage | 60% | ||||
JC Business Guys, Inc. [Member] | |||||
Equity method investment (Details) [Line Items] | |||||
Net accounts receivable | $ 149,989 |
Equity method investment (Det_2
Equity method investment (Details) - Schedule of Condensed Balance Sheet - HKGF Arcadia [Member] | Jul. 31, 2023 USD ($) |
Current Assets | |
Cash and equivalents | $ 86,395 |
Accounts receivable | 10,696 |
Inventories, net | 425,133 |
Total Current Assets | 522,224 |
Property and equipment, net | 426,786 |
Intangible asset, net | 6,031 |
Goodwill | 1,680,000 |
Security deposits | 159,589 |
Total Assets | 2,794,630 |
Current Liabilities | |
Accounts payable | 1,039,292 |
Accrued expenses and other payables | 3,400 |
Total Current Liabilities | 1,042,692 |
Total Liabilities | 1,042,692 |
Stockholders’ Equity | |
Paid in Capital | 3,440,000 |
Subscription receivable | (1,300,000) |
Accumulated deficit | (388,062) |
Total Stockholders’ Equity | 1,751,938 |
Total Liabilities and Stockholders’ Equity | $ 2,794,630 |
Equity method investment (Det_3
Equity method investment (Details) - Schedule of Condensed Statement of Operations - HKGF Arcadia [Member] | 1 Months Ended |
Jul. 31, 2023 USD ($) | |
Net Revenues | |
Total Revenues, Net | $ 577,824 |
Cost of Revenues | |
Total Cost of Revenues | 428,535 |
Gross Profit | 149,289 |
Operating Expenses | 220,430 |
Total Operating Expenses | 220,430 |
Loss from Operations | (71,141) |
Income (Loss) Before Income Taxes | (71,141) |
Income Tax Provisions | |
Net Loss | (71,141) |
Net Loss Attributable to Maison Solutions Inc. | (28,456) |
Supermarket | |
Net Revenues | |
Total Revenues, Net | 577,824 |
Cost of Revenues | |
Total Cost of Revenues | $ 428,535 |
Goodwill (Details)
Goodwill (Details) | Jul. 31, 2023 USD ($) |
Goodwill [Abstract] | |
Goodwill | $ 2,222,211 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - Schedule of Accrued Expenses and Other Payables - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Schedule of accrued expenses and other payables [Abstract] | ||
Accrued payroll | $ 263,616 | $ 301,527 |
Accrued interest expense | 131,388 | 127,638 |
Accrued loss for legal matter | 237,000 | 237,000 |
Other payables | 16,342 | 26,878 |
Due to third parties | 118,703 | 145,775 |
Sales tax payable | 41,952 | 28,978 |
Total accrued expenses and other payables | $ 809,001 | $ 867,796 |
Note Payable (Details)
Note Payable (Details) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Note Payable [Abstract] | ||
Note payable | $ 150,000 | |
Interest rate percentage | 10% | |
Accrued interest | $ 25,000 | $ 21,500 |
Loan Payables (Details)
Loan Payables (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2022 USD ($) | Jan. 12, 2022 USD ($) | Jan. 06, 2022 USD ($) | Mar. 02, 2017 USD ($) | Jun. 15, 2020 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Apr. 30, 2023 USD ($) | |
Loan Payables (Details) [Line Items] | |||||||||
Loan agreement amount | $ 2,624,329 | ||||||||
Maturity date | Mar. 02, 2024 | ||||||||
General liability insurance | $ 1,000,000 | ||||||||
Current loan payable | 285,489 | $ 370,828 | |||||||
Interest expense | 31,255 | ||||||||
Principal amount | $ 281,940 | ||||||||
Principal of interest expense | $ 20,785 | ||||||||
Maximum [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Debt service ratio | 1.3 | ||||||||
Minimum [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Debt service ratio | 1 | ||||||||
American First National Bank [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Loan agreement amount | $ 1,000,000 | ||||||||
Annual interest rate | 4.50% | 5.75% | 4.50% | ||||||
Maturity date | March 2, 2024 | ||||||||
American First National Bank [Member] | Maximum [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Annual interest rate | 7.75% | ||||||||
American First National Bank [Member] | Minimum [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Annual interest rate | 2% | ||||||||
U.S. Small Business Administration [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Interest expense | $ 23,462 | $ 23,953 | |||||||
Maturity date | June 15, 2050 | ||||||||
Principal amount | $ 52,040 | ||||||||
Maison Monrovia [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Loan agreement amount | $ 1,000,000 | $ 150,000 | |||||||
Annual interest rate | 3.75% | ||||||||
Current loan payable | $ 313,278 | $ 313,278 | |||||||
Interest expense | 5,330 | $ 7,635 | |||||||
Maturity date | June 15, 2050 | ||||||||
Maison Monrovia [Member] | Maximum [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Debt service ratio | 2 | ||||||||
Maison Monrovia [Member] | Minimum [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Debt service ratio | 1.01 | ||||||||
Maison San Gabriel [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Loan agreement amount | $ 1,850,000 | $ 150,000 | |||||||
Annual interest rate | 3.75% | 3.75% | |||||||
Maturity date | June 15, 2050 | June 15, 2050 | |||||||
Maison San Gabriel [Member] | Maximum [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Loan agreement amount | $ 2,603,544 | ||||||||
Maison El Monte [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Loan agreement amount | $ 350,000 | $ 150,000 | |||||||
Annual interest rate | 3.75% | 3.75% | |||||||
Maturity date | June 15, 2050 | June 15, 2050 | |||||||
San Gabriel, LP [Member] | |||||||||
Loan Payables (Details) [Line Items] | |||||||||
Annual interest rate | 4.50% |
Loan Payables (Details) - Sched
Loan Payables (Details) - Schedule of Company’s Loans - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Apr. 30, 2023 | |
Loan Payables (Details) - Schedule of Company’s Loans [Line Items] | ||
Total loan payables | $ 2,830,710 | $ 2,932,127 |
Current portion of loan payables | (285,489) | (370,828) |
Non-current loan payables | $ 2,545,221 | 2,561,299 |
American First National Bank [Member] | ||
Loan Payables (Details) - Schedule of Company’s Loans [Line Items] | ||
Total loan payables due date | March 2, 2024 | |
Total loan payables | $ 227,166 | 307,798 |
U.S. Small Business Administration [Member] | ||
Loan Payables (Details) - Schedule of Company’s Loans [Line Items] | ||
Total loan payables due date | June 15, 2050 | |
Total loan payables | $ 2,603,544 | $ 2,624,329 |
Loan Payables (Details) - Sch_2
Loan Payables (Details) - Schedule of Small Business Administration - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Apr. 30, 2023 | |
Maison Monrovia [Member] | ||
Debt Instrument [Line Items] | ||
SBA loan payables due date | June 15, 2050 | |
Total SBA loan payables | $ 147,419 | $ 148,574 |
Maison San Gabriel [Member] | ||
Debt Instrument [Line Items] | ||
SBA loan payables due date | June 15, 2050 | |
Total SBA loan payables | $ 1,965,117 | 1,980,725 |
Maison El Monte [Member] | ||
Debt Instrument [Line Items] | ||
SBA loan payables due date | June 15, 2050 | |
Total SBA loan payables | $ 491,007 | 495,030 |
U.S. Small Business Administration [Member] | ||
Debt Instrument [Line Items] | ||
Total SBA loan payables | $ 2,603,544 | $ 2,624,329 |
Loan Payables (Details) - Sch_3
Loan Payables (Details) - Schedule of Future Minimum Principal Amount of Loan Payments | Apr. 30, 2023 USD ($) |
Schedule of Future Minimum Principal Amount of Loan Payments [Abstract] | |
2024 | $ 58,323 |
2025 | 65,626 |
2026 | 67,792 |
2027 | 70,041 |
2028 | 72,376 |
Thereafter | 2,269,386 |
Total | $ 2,603,544 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jun. 27, 2023 | Dec. 31, 2021 | May 31, 2021 | Jul. 31, 2023 | |
Related Party Balances and Transactions (Details) [Line Items] | ||||
Percentage of equity interest | 10% | |||
Trading amount | $ 162,665 | |||
Related party amount | $ 40,775 | |||
Investment loss | $ 28,456 | |||
HKGF Arcadia [Member] | ||||
Related Party Balances and Transactions (Details) [Line Items] | ||||
Percentage of equity interest | 40% | |||
Invested amount | $ 1,440,000 | |||
Dai Cheong Trading Inc. [Member] | ||||
Related Party Balances and Transactions (Details) [Line Items] | ||||
Percentage of equity interest | 10% |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details) - Schedule of Related Party Transactions - USD ($) | 3 Months Ended | |||
Jul. 31, 2023 | Apr. 30, 2023 | Jul. 31, 2022 | Dec. 13, 2008 | |
Sales to related parties [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total Related party transactions | $ 68,518 | $ 139,328 | ||
Sales to related parties [Member] | The United Food, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Supermarket product sales | |||
Relationship | John Xu, the Company’s chief executive officer, is one of the United Food LLC’s shareholders | |||
Total Related party transactions | 2,663 | 1,152 | ||
Sales to related parties [Member] | GF Supermarket of MP, Inc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Supermarket product sales | |||
Relationship | Grace Xu, spouse of John Xu, is the major shareholder with 49% ownership, sold this entity to the Company on June 30, 2022 | |||
Total Related party transactions | 54,218 | |||
Sales to related parties [Member] | HKGF Market of Arcadia, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Supermarket product sales | |||
Relationship | 40% investee of the Company | |||
Total Related party transactions | 5,972 | |||
Sales to related parties [Member] | HKGF Market of Alhambra, Inc.[Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Supermarket product sales | |||
Relationship | Grace Xu, spouse of John Xu, controls this entity with 100% ownership | |||
Total Related party transactions | 59,883 | 83,958 | ||
Purchases from related parties [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total Related party transactions | 59,234 | 33,949 | ||
Purchases from related parties [Member] | The United Food, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Supermarket product sales | |||
Relationship | John Xu, the Company’s chief executive officer, is one of the United Food LLC’s shareholders | |||
Total Related party transactions | 674 | 2,277 | ||
Purchases from related parties [Member] | GF Supermarket of MP, Inc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Supermarket product sales | |||
Relationship | Grace Xu, spouse of John Xu, is the major shareholder with 49% ownership, sold this entity to the Company on June 30, 2022 | |||
Total Related party transactions | 4,257 | |||
Purchases from related parties [Member] | HKGF Market of Arcadia, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Supermarket product sales | |||
Relationship | 40% investee of the Company | |||
Total Related party transactions | 20,587 | |||
Purchases from related parties [Member] | HKGF Market of Alhambra, Inc.[Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Supermarket product sales | |||
Relationship | Grace Xu, spouse of John Xu, controls this entity with 100% ownership | |||
Total Related party transactions | 809 | |||
Purchases from related parties [Member] | Dai Cheong Trading Co Inc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Import and wholesales of groceries | |||
Relationship | John Xu, controls this entity with 100% ownership through DC Holding CA, Inc. | |||
Total Related party transactions | 37,973 | $ 26,606 | ||
Accounts receivable — sales to related parties [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total Related party transactions | 255,073 | $ 289,615 | ||
Accounts receivable — sales to related parties [Member] | HKGF Market of Alhambra, Inc.[Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Supermarket product sales | |||
Relationship | Grace Xu, spouse of John Xu, controls this entity with 100% ownership | |||
Total Related party transactions | 241,345 | 283,005 | ||
Accounts receivable — sales to related parties [Member] | HKGF Supermarket of Arcadia LLC. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Supermarket product sales | |||
Relationship | 40% investee of the Company | |||
Total Related party transactions | 5,965 | |||
Accounts receivable — sales to related parties [Member] | United Food LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Supermarket product sales | |||
Relationship | John Xu, is one of the United Food LLC’s shareholders | |||
Total Related party transactions | 7,763 | 6,610 | ||
Accounts payable — purchase from related parties [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total Related party transactions | 469,782 | 465,310 | ||
Accounts payable — purchase from related parties [Member] | Dai Cheong Trading Co Inc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Import and wholesales of groceries | |||
Relationship | John Xu, controls this entity with 100% ownership through DC Holding CA, Inc. | |||
Total Related party transactions | 31,057 | 26,585 | ||
Accounts payable — purchase from related parties [Member] | Hong Kong Supermarket of Monterey Park, Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Due on demand, non-interest bearing | |||
Relationship | John Xu, controls this entity | |||
Total Related party transactions | 438,725 | 438,725 | ||
Other Receivables Related Parties [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total Related party transactions | 33,995 | 33,995 | ||
Other Receivables Related Parties [Member] | Ideal Investment [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Due on demand, non-interest bearing | |||
Relationship | John Xu, has majority ownership of this entity | |||
Total Related party transactions | 3,995 | 3,995 | ||
Other Receivables Related Parties [Member] | Ideal City Capital [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | Due on demand, non-interest bearing | |||
Relationship | John Xu, has majority ownership of this entity | |||
Total Related party transactions | 30,000 | 30,000 | ||
Other Payables Related Parties [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total Related party transactions | 241,585 | 241,585 | ||
Other Payables Related Parties [Member] | John Xu [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | due on demand, non-interest bearing | |||
Relationship | The Company’s Chairman and Chief Executive Officer | |||
Total Related party transactions | 200,810 | 200,810 | ||
Other Payables Related Parties [Member] | Grace Xu [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nature | due on demand, non-interest bearing | |||
Relationship | Spouse of John Xu | |||
Total Related party transactions | $ 40,775 | $ 40,775 |
Related Party Balances and Tr_5
Related Party Balances and Transactions (Details) - Schedule of Investment in Equity Securities Purchased from Related Parties - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Apr. 30, 2023 | |
Schedule of Investments [Line Items] | ||
Investment in equity securities purchased from related parties | $ 1,614,984 | $ 203,440 |
Dai Cheong Trading Co Inc [Member] | ||
Schedule of Investments [Line Items] | ||
Nature of Operation | Import and wholesales of groceries | |
Investment percentage | 10% | |
Relationship | John Xu, the Company’s Chairman and Chief Executive Officer, controls this entity with 100% ownership through DC Holding CA, Inc. | |
Investment in equity securities purchased from related parties | $ 162,665 | 162,665 |
HKGF Market of Alhambra, Inc [Member] | ||
Schedule of Investments [Line Items] | ||
Nature of Operation | Supermarket product sales | |
Investment percentage | 10% | |
Relationship | Grace Xu, spouse of John Xu, controls this entity with 100% ownership | |
Investment in equity securities purchased from related parties | $ 40,775 | 40,775 |
HKGF Market of Arcadia, LLC [Member] | ||
Schedule of Investments [Line Items] | ||
Nature of Operation | Supermarket product sales | |
Investment percentage | 40% | |
Relationship | 40% investee of the Company | |
Investment in equity securities purchased from related parties | $ 1,411,544 |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | 8 Months Ended | 12 Months Ended | |||
Apr. 01, 2023 | Jul. 31, 2023 | Jul. 31, 2022 | Mar. 31, 2024 | Mar. 31, 2026 | Mar. 31, 2025 | |
Leases (Details) [Line Items] | ||||||
Lease term | 5 years | |||||
Monthly based rent | $ 40,000 | |||||
Percentage of increase base rent | 3% | |||||
Increased lease term | 4 years | |||||
ROU and lease liability | $ 3,620,000 | |||||
Average remaining term | 4 years 3 months 14 days | |||||
Total lease expenses | $ 780,000 | $ 560,000 | ||||
Minimum [Member] | ||||||
Leases (Details) [Line Items] | ||||||
Effective interest rate | 4.50% | |||||
Maximum [Member] | ||||||
Leases (Details) [Line Items] | ||||||
Effective interest rate | 6.25% | |||||
Forecast [Member] | ||||||
Leases (Details) [Line Items] | ||||||
Monthly based rent | $ 5,000 | $ 1,000 | $ 2,500 | |||
Supermarkets’ Store [Member] | ||||||
Leases (Details) [Line Items] | ||||||
Average remaining term | 9 years 10 months 13 days |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Store Lease Detail Information | 3 Months Ended | |
Jul. 31, 2023 | ||
Maison Monrovia [Member] | ||
Schedule of Store Lease Detail Information [Abstract] | ||
Lease Term Due | August 31, 2055 (with extension) | [1] |
Maison San Gabriel [Member] | ||
Schedule of Store Lease Detail Information [Abstract] | ||
Lease Term Due | November 30, 2030 | |
Maison El Monte [Member] | ||
Schedule of Store Lease Detail Information [Abstract] | ||
Lease Term Due | July 14, 2028 | |
Maison Monterey Park [Member] | ||
Schedule of Store Lease Detail Information [Abstract] | ||
Lease Term Due | May 1, 2028 | |
Maison Monrovia One [Member] | ||
Schedule of Store Lease Detail Information [Abstract] | ||
Lease Term Due | January 1, 2028 | |
Maison San Gabriel One [Member] | ||
Schedule of Store Lease Detail Information [Abstract] | ||
Lease Term Due | January 1, 2028 | |
Maison Monterey Park One [Member] | ||
Schedule of Store Lease Detail Information [Abstract] | ||
Lease Term Due | August 1, 2027 | |
[1] On April 1, 2023, the Company renewed lease of Maison Monrovia for additional five years with new monthly based rent of $40,000 for first year and 3% increase for each of the next four years. On July 6, 2023, the Company and the lessor entered an amendment to lease and the lessor will provide monthly basic rent abatement of $5,000 from August 1, 2023 through March 31, 2024, $2,500 from April 1, 2024 through March 31, 2025, and $1,000 from April 1, 2025 through March 31, 2026. As a result of increased monthly base rent, the Company remeasured the lease and found the ROU and lease liability of this lease increased by $3.62 million for each. |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Operating ROU Assets and Lease Liabilities - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Apr. 30, 2023 | |
Operating ROU: | ||
ROU assets – supermarket leases | $ 22,010,209 | $ 22,517,925 |
ROU assets – copier leases | 26,328 | 27,265 |
Total operating ROU assets | 22,036,537 | 22,545,190 |
Operating lease obligations: | ||
Current operating lease liabilities | 1,780,559 | 1,761,182 |
Non-current operating lease liabilities | 22,251,277 | 22,711,760 |
Total lease liabilities | $ 24,031,836 | $ 24,472,942 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Operating Lease Liabilities Maturity | Jul. 31, 2023 USD ($) |
Schedule of Operating Lease Liabilities Maturity [Abstract] | |
2024 | $ 2,805,260 |
2025 | 2,865,825 |
2026 | 2,926,578 |
2027 | 2,980,223 |
2028 | 2,866,526 |
Thereafter | 24,218,071 |
Total lease payments | 38,662,483 |
Less: interest | (14,630,647) |
Present value of lease liabilities | $ 24,031,836 |
Stockholder_s Equity (Details)
Stockholder’s Equity (Details) - $ / shares | 3 Months Ended | ||
Sep. 08, 2021 | Jul. 31, 2023 | Apr. 30, 2023 | |
Stockholder’s Equity (Details) [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 500,000 | |
Common stock par value | $ 0.0001 | ||
Stock split, descriptions | 200-for-1 stock split | ||
Preferred stock, shares authorized | 5,000,000 | ||
Class A common stock [Member] | |||
Stockholder’s Equity (Details) [Line Items] | |||
Common stock, shares authorized | 92,000,000 | 92,000,000 | 92,000,000 |
Common stock par value | $ 0.0001 | $ 0.0001 | |
Common stock voting rights | one | ||
Class B common stock [Member] | |||
Stockholder’s Equity (Details) [Line Items] | |||
Common stock, shares authorized | 3,000,000 | 3,000,000 | 3,000,000 |
Common stock par value | $ 0.0001 | $ 0.0001 | |
Common stock voting rights | ten | ||
John Xu [Member] | Class A common stock [Member] | |||
Stockholder’s Equity (Details) [Line Items] | |||
Common stock voting rights | one | ||
John Xu [Member] | Class B common stock [Member] | |||
Stockholder’s Equity (Details) [Line Items] | |||
Common stock voting rights | ten |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 | Jul. 31, 2022 |
Income Taxes [Abstract] | |||
Tax amount | $ 2,780,000 | $ 2,250,000 | |
Percentage of income tax utilized | 80% | ||
Net operating loss carry forwards | $ 2,110,000 | 1,580,000 | |
Net operating loss carry forwards expiration date | 20 years | ||
Interest and penalties | $ 11,279 | $ 11,261 | |
Uncertain tax | $ 114,561 | $ 103,282 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Provision for Income Taxes Provisions - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Schedule of provision for income taxes [Abstract] | ||
Federal income tax expense | $ 82,564 | $ 7,720 |
State income tax expense | 38,102 | 10,507 |
Federal income tax benefit | (1,320) | (226) |
State income tax benefit | (440) | (75) |
Total | $ 118,906 | $ 17,926 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Federal Statutory Rate on Income (Loss) before Income Taxes - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Schedule of Federal Statutory Rate on Income (Loss) before Income Taxes [Abstract] | ||
Federal statutory rate (in Dollars) | $ 21,000 | $ (21,000) |
State statutory rate, net of effect of state income tax deductible to federal income tax | 7.02% | (5.99%) |
Permanent difference – penalties, interest, and others | (7.62%) | 1.11% |
Utilization of net operating losses (“NOL”) | (12.89%) | |
Valuation allowance | 121.48% | 29.13% |
Effective tax rate | 129% | 3.25% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Apr. 30, 2023 | |
Deferred tax assets: | ||
Bad debt expense | $ 40,550 | $ 70,929 |
Lease liabilities, net of ROU | 524,149 | 441,997 |
NOL | 730,181 | 583,490 |
Valuation allowance | (1,283,162) | (1,085,551) |
Deferred tax assets, net | 11,718 | 10,865 |
Deferred tax liability: | ||
Trademark acquired at acquisition of Maison Monterey Park | 50,367 | 51,273 |
Deferred tax liability, net of deferred tax assets | $ 38,648 | $ 40,408 |
Other Income (Details)
Other Income (Details) | 3 Months Ended |
Jul. 31, 2023 USD ($) | |
Other Income [Abstract] | |
Other income | $ 380,000 |
Investment loss | $ 28,456 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Apr. 19, 2021 | Jul. 31, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | |
Commitments and Contingencies (Details) [Line Items] | |||||
Litigation payment to plaintiff | $ 98,500 | ||||
Loss contingency | $ 98,500 | ||||
Accrued additional | $ 40,000 | ||||
Consultancy and initialization fee | $ 220,000 | ||||
Consultancy and initialization fee percentage | 40% | ||||
Gross merchandise value rate | 1.20% | ||||
Consultancy and initialization, additional commitment amount | $ 50,000 | ||||
Collaboration agreement initial term descriptions | The Collaboration Agreement has an initial term of 10 years and customary termination and indemnification provisions. Simultaneously with the effectiveness of the Collaboration Agreement, JD US and Maison entered into an Intellectual Property License Agreement (the “IP Agreement”) outlining certain trademarks, logos and designs, and other intellectual property rights used in connection with the retail supermarket operations outlined in the Collaboration Agreement, which includes an initial term of 10 years and customary termination provisions. | ||||
Maximum [Member] | |||||
Commitments and Contingencies (Details) [Line Items] | |||||
Consultancy and initialization fee percentage | 40% | ||||
Minimum [Member] | |||||
Commitments and Contingencies (Details) [Line Items] | |||||
Consultancy and initialization fee percentage | 20% |
Acquisition of Subsidiary (Deta
Acquisition of Subsidiary (Details) - USD ($) $ in Millions | Feb. 21, 2023 | Jun. 30, 2022 |
Acquisition of Subsidiary (Details) [Line Items] | ||
Company purchased equity interest | 100% | |
Purchase consideration (in Dollars) | $ 1.5 | |
Purchase price (in Dollars) | $ 2.5 | |
GF Supermarket of MP Inc [Member] | ||
Acquisition of Subsidiary (Details) [Line Items] | ||
Ownership percentage | 49% | |
DNL Management Inc [Member] | ||
Acquisition of Subsidiary (Details) [Line Items] | ||
Ownership percentage | 51% |
Acquisition of Subsidiary (De_2
Acquisition of Subsidiary (Details) - Schedule of Fair Values of the Assets Acquired and Liabilities Assumed - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Schedule of fair values of the assets acquired and liabilities assumed [Abstract] | ||
Total purchase considerations | $ 2,500,000 | |
Fair value of tangible assets acquired: | ||
Accounts receivable | 79,651 | |
Due from related party | 25,000 | |
Property and equipment | 448,932 | |
Security deposit | 161,945 | |
Inventory | 872,084 | |
Deferred tax asset | 10,545 | |
Operating lease right-of-use assets | 4,680,216 | |
Intangible assets (trademark) acquired | 194,000 | |
Total identifiable assets acquired | 6,472,373 | |
Fair value of liabilities assumed: | ||
Bank overdraft | (281,940) | |
Accounts payable | (865,769) | |
Contract liabilities | (10,369) | |
Income tax payable | (183,262) | |
Accrued liability and other payable | (85,789) | |
Tenant Security deposit | (32,200) | |
Operating lease liabilities | (4,680,967) | |
Deferred tax liability | (54,288) | |
Total liabilities assumed | (6,194,584) | |
Net identifiable assets acquired | 277,789 | |
Goodwill as a result of the acquisition | $ 2,222,211 | $ 2,222,211 |
Acquisition of Subsidiary (De_3
Acquisition of Subsidiary (Details) - Schedule of Indicative of Future Consolidated Results | 3 Months Ended |
Jul. 31, 2022 USD ($) | |
Schedule of indicative of future consolidated results [Abstract] | |
Revenue | $ 14,232,869 |
Operating costs and expenses | 14,469,401 |
Loss from operations | (236,532) |
Other income | 8,386 |
Income tax expense | (17,926) |
Net loss | $ (246,072) |