Analyst Summary
- Maison Solutions Inc. acquired 100% of the outstanding equity interests in Lee Lee Oriental Supermart, Inc. through its subsidiary AZLL, LLC.
- The purchase agreement involved a payment of approximately $22.2 million, including cash and a senior secured note agreement.
- The audited financial statements of Lee Lee for the years ended December 31, 2022 and December 31, 2023, and the unaudited financial statements for the three months ended March 31, 2023 and March 31, 2024 are included in the amendment.
- Lee Lee’s revenue for 2023 was $75,734,198, with a net income of $3,003,776.
- Lee Lee’s revenue for 2022 was $76,745,068, with a net loss of $1,210,307.
- For the three months ended March 31, 2024, Lee Lee’s revenue was $19,879,460, with a net income of $317,756.
- For the three months ended March 31, 2023, Lee Lee’s revenue was $19,602,702, with a net loss of $471,380.
- Lee Lee operates three supermarkets in Arizona, offering a variety of ethnic foods and merchandise.
- The company adopted Accounting Standards Update 2016-13 “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology.