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Maison Solutions Inc. (NASDAQ:MSS), a retail grocery company with annual revenue of $111.74 million and current market capitalization of $17.06 million, announced Wednesday that its previously issued financial statements for the periods ended April 30, 2024, July 31, 2024, October 31, 2024, and January 31, 2025, should no longer be relied upon following the discovery of an accounting error related to an acquisition. InvestingPro analysis shows the company maintains a FAIR financial health score, though its short-term obligations currently exceed liquid assets. The company, which operates in the retail grocery sector and has seen its stock decline over 31% in the past six months, disclosed the information in a statement based on a filing with the Securities and Exchange Commission. For deeper insights into MSS’s financial health and valuation metrics, InvestingPro subscribers have access to over 30 additional financial indicators and expert analysis.
The Audit Committee of the Board of Directors, after discussions with management and independent auditor Kreit & Chiu CPA LLP, determined that financial statements covering the affected periods contained material misstatements. The issue was identified during the preparation of the company’s annual report for the fiscal year ended April 30, 2025.
Maison Solutions stated that it had not properly accounted for certain historical transactions under US GAAP, specifically relating to the acquisition of Lee Lee Oriental Supermart, Inc. in April 2024. As a result, the company restated its financial statements to reflect an increase in cash balance of $2,074,298 acquired in the transaction, with a corresponding decrease in goodwill. The company’s current ratio stands at 0.57, indicating potential liquidity challenges that investors should monitor.
According to the company, the restatement is limited to cash accounting in the consolidated balance sheets and cash flow statements as of April 30, 2024. The company said the restatement does not impact compliance with financial covenants, reported loss from operations, key business metrics, or non-GAAP financial measures such as gross margin, gross profit, adjusted operating expenses, or adjusted EBITDA loss for any affected periods. Compensation plans for management and employees are also unaffected.
The company’s management and Audit Committee concluded that the misstatements were unintentional and not the result of fraud.
The restated financial information has been included in Maison Solutions’ annual report for the period ended April 30, 2025. This article is based on a press release statement filed with the SEC.
In other recent news, Maison Solutions Inc. has received a notification from The Nasdaq Stock Market LLC regarding a minimum bid price deficiency. The company’s common stock has been trading below the $1.00 per share minimum requirement for the past 30 consecutive business days. This requirement is part of the Nasdaq Listing Rule 5550(a)(2) for maintaining a listing on the Nasdaq Capital Market. Maison Solutions has been granted an initial period of 180 calendar days, until January 6, 2026, to meet this requirement. To regain compliance, the company’s stock must close at or above $1.00 per share for at least ten consecutive business days before the deadline. This development was disclosed in a press release and a filing with the Securities and Exchange Commission.
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