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”). The Company recorded $28,456 investment loss for the three months ended July 31, 2023. As of July 31, 2023, the Company had investment of $1,411,544 into 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, 2023 (Unaudited)
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 July 1, 2023 to July 31, 2023
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	)