MSSMEDIUM SIGNALOPERATIONAL10-K

MSS closed its Maison El Monte store in June 2025 as part of a strategic profitability improvement initiative while operating losses were meaningfully reduced.

The store closure represents a rationalization of MSS's retail footprint to focus on more profitable locations, now operating six supermarkets across California and Arizona markets. The company's shift in supplier concentration from 48% to 19% with primary vendors suggests improved diversification of its supply chain, which could reduce operational risk.

Comparing 2025-08-14 vs 2024-08-13View on EDGAR →
FINANCIAL ANALYSIS

MSS showed operational improvement with losses meaningfully reduced, though this came alongside a significant cash position decline from $2.1M to $775K. The company reduced working capital through lower inventory levels and decreased current liabilities, while stockholders' equity grew modestly to $11.7M, suggesting the operational improvements and cost management efforts are beginning to strengthen the balance sheet despite the weaker cash position.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-62.6%
$2.1M$775K

Cash declined 62.6% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Operating Income
P&L
+53.2%
-$2.7M-$1.3M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Current Liabilities
Balance Sheet
-20.9%
$28.8M$22.7M

Current liabilities reduced — improved short-term financial position and working capital health.

Inventory
Balance Sheet
-15.4%
$6.8M$5.8M

Inventory reduced 15.4% — lean inventory management or demand outpacing supply.

Stockholders Equity
Balance Sheet
+11.1%
$10.5M$11.7M

Equity base grew 11.1% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2025-08-14
PRIOR — 2024-08-13
ADDED
The Company shut down the Maison El Monte store in June 2025.
The strategic decision to close Maison El Monte store is part of the Company s ongoing commitment to improve its profitability and support sustainable growth.
In fiscal years 2025 and 2024, our perishable product categories contributed approximately 50% and 54%, respectively, to our total net revenue in alignment with the space occupancy of perishables.
In the fiscal years ended on April 30, 2025 and 2024, the non-perishable grocery category contributed approximately 48.40 and 45.97%, respectively, to our total net sales and realized a markup of 35.13% and 35.09%, on average, respectively.
These primary suppliers accounted for approximately 19.0% and 48.0% of our total purchases in fiscal years 2025 and 2024, respectively.
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REMOVED
Because our acquisition of Lee Lee (as defined below) was completed on April 8, 2024, shortly before our fiscal year-end, the description of our business throughout this Item 1 does not include a description of Lee Lee unless specifically referenced herein.
In fiscal years 2024 and 2023, our perishable product categories contributed approximately 54.0% and 56.5%, respectively, to our total net revenue in alignment with the space occupancy of perishables.
In the fiscal years ended on April 30, 2024 and 2023, the non-perishable grocery category contributed approximately 45.97% and 43.52%, respectively, to our total net sales and realized a markup of 35.13% and 35.09%, on average, respectively.
11 Store Renovation Program From time to time, we conduct maintenance and rennovations on our stores to enhance customer shopping experiences and optimize store designs.
In January 2024, we began renovating our HK Good Fortune supermarket in El Monte, California.
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