UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE
14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE
14A INFORMATION
Proxy
Statement Pursuant to Section 14(a)
of the Securities Exchange Act of 1934
Filed
by the Registrant ☒
Filed
by a Party other than the Registrant ☐
Check
the appropriate box:
☐
|
Preliminary
Proxy Statement
|
☐
|
Confidential,
for the use of the Commission only (as permitted by Rule 14a-6(e)(2))
|
☒
|
Definitive
Proxy Statement
|
☐
|
Definitive
Additional Materials
|
☐
|
Soliciting
Material Pursuant to §240.14a-12
|
IFRESH
INC.
(Name
of Registrant as Specified in its Charter)
(Name
of Person(s) Filing Proxy Statement, if Other Than the Registrant)
Payment
of Filing Fee (Check the appropriate box):
☒
|
No fee required.
|
|
|
☐
|
Fee computed on table below per
Exchange Act Rules 14a-6(i)(1) and 0-11.
|
|
|
|
(1)
|
Title of each class of securities
to which transaction applies:
|
|
(2)
|
Aggregate number of securities to which transaction
applies:
|
|
(3)
|
Per unit price or other underlying value of
transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state
how it was determined):
|
|
(4)
|
Proposed maximum aggregate value of transaction:
|
|
(5)
|
Total fee paid:
|
☐
|
Fee paid previously with preliminary
materials.
|
|
|
☐
|
Check box if any part of the fee
is offset as provided by Exchange Act Rule 0-1l (a)(2) and identify the filing for which the offsetting fee was paid previously.
Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
|
|
|
|
(1)
|
Amount Previously Paid:
|
|
(2)
|
Form, Schedule or Registration Statement No.:
|
|
(3)
|
Filing Party:
|
|
(4)
|
Date Filed:
|
IFRESH
INC.
2-39 54th Avenue
Long
Island City, New York 11101
May 10, 2019
Dear
Stockholder:
On
behalf of the Board of Directors of iFresh Inc. (the “Company” or “we”), I invite you to attend our Annual
Meeting of Stockholders (the “Annual Meeting”). We hope you can join us. The Annual Meeting
will be held:
|
At:
|
2-39
54th Avenue
Long
Island City, New York 11101
|
|
On:
|
June 10, 2019
|
|
Time:
|
10 a.m. local time
|
The
Notice of Annual Meeting of Stockholders, the Proxy Statement and the proxy card accompany this letter and are also available,
together with our Annual Report for the fiscal year ended March 31, 2018, at https://www.cstproxy.com/ifreshmarket/2019.
As
discussed in the enclosed Proxy Statement, the Annual Meeting will be devoted to the election of directors and consideration of
any other business matters properly brought before the Annual Meeting.
At
the Annual Meeting, we will also report on important activities and accomplishments of the Company and review the Company’s
financial performance and business operations. You will have an opportunity to ask questions and gain an up-to-date
perspective on the Company and its activities, and to meet certain directors and key executives of the Company.
We
know that many of our stockholders will be unable to attend the Annual Meeting. We are soliciting proxies so that each
stockholder has an opportunity to vote on all matters that are scheduled to come before the stockholders at the Annual Meeting. Whether
or not you plan to attend, please take the time now to read the Proxy Statement and vote by submitting by mail a paper copy of
your proxy or vote instructions, so that your shares are represented at the meeting. You may also revoke your proxy
or vote instructions and change your vote at any time prior to the Annual Meeting. Regardless of the number of Company
shares you own, your presence in person or by proxy is important for quorum purposes and your vote is important for proper corporate
action.
Thank
you for your continuing interest in iFresh Inc. We look forward to seeing you at the Annual Meeting.
If
you have any questions about the Proxy Statement, please contact us at iFresh Inc., 2-39 54th Avenue Long Island City, New York
11101.
Sincerely,
/s/
Long Deng
|
|
Long Deng
|
|
Chairman and Chief Executive Officer
|
|
IFRESH
INC.
2-39 54th Avenue
Long
Island City, New York 11101
NOTICE
OF ANNUAL MEETING OF STOCKHOLDERS
TO
BE HELD ON JUNE 10, 2019
To
the Stockholders of IFRESH INC.:
NOTICE
IS HEREBY GIVEN that the Annual Meeting of Stockholders of IFRESH INC. (the “Company”), a Delaware corporation, will
be held at the office of iFresh Inc, ., 2-39 54th Avenue Long Island City, New York 11101, Tuesday, June 10, 2019, at 10 a.m.
local time, for the following purposes:
|
1.
|
To elect five directors to
serve until the next Annual Meeting of Stockholders and until their respective successors have been duly elected and
qualified or until his or her earlier resignation, removal or death.
|
|
|
|
|
2.
|
To ratify the appointment of Freidman LLP (“Freidman”)
as our independent auditor to audit the financial statements for the fiscal year ended on March 31, 2019.
|
|
|
|
|
3.
|
To approve, by a non-binding vote, the Company’s
executive compensation.
|
|
|
|
|
4.
|
To approve, by a non-binding, vote the frequency
of future Stockholder advisory votes relating to the Company’s executive compensation.
|
|
|
|
|
5.
|
To act on such other matters as may properly
come before the meeting or any adjournment or adjournments thereof.
|
The
Board has fixed the close of business on May 10, 2019 (“Record Date”) as the record date for the meeting and only
holders of shares of record at that time will be entitled to notice of and to vote at the Annual Meeting or any adjournment or
adjournments thereof.
|
By
Order of the Board of Directors.
|
|
|
|
Long Deng
|
|
Chairman
and Chief Executive Officer
|
Long
Island City, New York
May
10, 2019
IMPORTANT
IF
YOU CANNOT PERSONALLY ATTEND THE ANNUAL MEETING, IT IS REQUESTED THAT YOU INDICATE YOUR VOTE ON THE ISSUES INCLUDED ON THE ENCLOSED
PROXY AND DATE, SIGN AND MAIL IT IN THE ENCLOSED SELF-ADDRESSED ENVELOPE WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES
OF AMERICA.
IMPORTANT
NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON JUNE 10, 2019. THIS
PROXY STATEMENT TO THE STOCKHOLDERS WILL BE AVAILABLE AT HTTP://INVESTORS.IFRESHMARKET.COM/FINANCIAL-INFORMATION/SEC-FILINGS.
IFRESH
INC.
2-39 54th Avenue
Long
Island City, New York 11101
PROXY
STATEMENT
FOR
ANNUAL MEETING OF STOCKHOLDERS
TO
BE HELD JUNE 10, 2019
Date,
Time and Place of the Annual Meeting
The
enclosed proxy is solicited by the Board of Directors (the “Board”) of iFresh Inc. (the “Company”), a
Delaware corporation, in connection with the Annual Meeting of Stockholders to be held at 2-39 54th Avenue, Long Island City,
New York 11101on Monday, June 10, 2019, at 10 a.m. local time, and any adjournments thereof, for the purposes set forth in the
accompanying Notice of Meeting.
The
principal executive office of the Company is 2-39 54th Avenue Long Island City, New York 11101, and its telephone number, including
area code, is (718) 628 6200.
Purpose
of the Annual Meeting
At
the Annual Meeting, you will be asked to consider and vote upon the following matters:
|
1.
|
To elect five directors to
serve until the next Annual Meeting of Stockholders and until their respective successors have been duly elected and
qualified or until his or her earlier resignation, removal or death.
|
|
|
|
|
2.
|
To ratify the appointment of Friedman LLP (“Friedman”)
as our independent auditor to audit the financial statements for the fiscal year ended on March 31, 2019.
|
|
|
|
|
3.
|
To approve, by a non-binding vote, the Company’s
executive compensation.
|
|
|
|
|
4.
|
To approve, by a non-binding, vote the frequency
of future Stockholder advisory votes relating to the Company’s executive compensation.
|
|
|
|
|
5.
|
To act on such other matters as may properly
come before the meeting or any adjournment or adjournments thereof.
|
Voting
Rights and Revocation of Proxies
The
record date with respect to this solicitation is the close of business on May 10, 2019 (the “Record Date”) and only
stockholders of record at that time will be entitled to vote at the Annual Meeting and any adjournment or adjournments thereof.
The
shares of the Company’s common stock (“Common Stock”) represented by all validly executed proxies received in
time to be taken to the meeting and not previously revoked will be voted at the meeting. This proxy may be revoked by the stockholder
at any time prior to its being voted by filing with the Secretary of the Company either a notice of revocation or a duly executed
proxy bearing a later date. We intend to release this Proxy Statement and the enclosed proxy card to our stockholders on or about
May 10, 2019.
Dissenters’
Right of Appraisal
Holders
of shares of our Common Stock do not have appraisal rights under Delaware law or under the governing documents of the Company
in connection with this solicitation.
Outstanding
Shares and Quorum
The
number of outstanding shares of Common Stock entitled to vote at the meeting is 16,737,684. Each share of Common Stock is entitled
to one vote. The presence in person or by proxy at the Annual Meeting of the holders of a majority of the number of outstanding
shares of Common Stock, will constitute a quorum. There is no cumulative voting. Under Delaware law, shares that abstain or for
which the authority to vote is withheld on certain matters (so-called “broker non-votes”) will be treated as present
for quorum purposes on all matters.
Broker
Non-Votes
Holders
of shares of our Common Stock that are held in street name must instruct their bank or brokerage firm that holds their shares
how to vote their shares. If a shareholder does not give instructions to his or her bank or brokerage firm, it will
nevertheless be entitled to vote the shares with respect to “routine” items, but it will not be permitted to vote
the shares with respect to “non-routine” items. In the case of a non-routine item, such shares will be considered
“broker non-votes” on that proposal.
Proposal
No. 1, 3 and 4 is a matter that we believe will be considered “non- routine.”
Banks
or brokerages cannot use discretionary authority to vote shares on Proposal No. 1, 3, and 4, if they have not received instructions
from their clients. Please submit your vote instruction form so your vote is counted.
Required
Votes for Each Proposal to Pass
Assuming
the presence of a quorum at the Annual Meeting:
For
Proposal No. 1 (Election of Directors), directors will be elected by a plurality (meaning, the largest number of votes cast) of
shares of common stock present in person or represented by proxy at the Annual Meeting and entitled to vote on the election of
directors. With respect to Proposal No. 1, broker “non-votes” have no effect and abstentions have the same effect
as negative votes. Proposal No. 2 (Ratification of Appointment of Independent Auditor) will require the affirmative vote of the
majority of the shares entitled to vote. Abstentions and broker non-votes will have no direct effect on the outcome of this proposal.
All votes will be tabulated by the inspector of elections appointed for the Annual Meeting, who will separately tabulate affirmative
and negative votes, abstentions and broker non-votes on each proposal. Proposal No. 3 (Approval on an advisory basis, of the executive
compensation) requires the affirmative vote of a majority of the votes cast at the Annual Meeting by the holders of shares of
common stock entitled to vote. Abstentions and broker non-votes will have no direct effect on the outcome of these proposals.
With respect to Proposal No. 4, for purposes of determining the votes cast with respect to the vote to approve a non-binding advisory
vote recommending the frequency of advisory votes on executive compensation, only those votes cast in favor of having the vote
occur every one, two or three years are included. Abstentions and broker non-votes will have no direct effect on the outcome of
this proposal.
Abstentions
will have no effect on the vote for the election of director.
Voting
Procedures
In
voting by proxy with regard to the election of directors, you may vote in favor of all nominees, withhold your votes as to all
nominees, or withhold your votes as to specific nominees. You should specify your respective choices on the accompanying
proxy card or your vote instruction form.
Solicitation
of Proxies
The
solicitation of proxies is made by the Company. The expenses of solicitation of proxies will be paid by the Company. We may solicit
proxies by mail, and the officers and employees of the Company may solicit proxies personally or by telephone and will receive
no extra compensation from such activities. The Company will reimburse brokerage houses and other nominees for their expenses
incurred in sending proxies and proxy materials to the beneficial owners of shares held by them.
Delivery
of Proxy Materials to Households
Only
one copy of the Company’s 2018 Annual Report and this Proxy Statement will be delivered to an address where two or more
stockholders reside with the same last name or whom otherwise reasonably appear to be members of the same family based on the
stockholders’ prior express or implied consent.
We
will deliver promptly upon written or oral request a separate copy of the 2018 Annual Report and this Proxy Statement upon such
request. If you share an address with at least one other stockholder, currently receive one copy of our Annual Report
and Proxy Statement at your residence, and would like to receive a separate copy of our Annual Report and Proxy Statement for
future stockholder meetings of the Company, please specify such request in writing and send such written request to iFresh Inc.,
2-39 54th Avenue Long Island City, New York 11101; Attention: Secretary.
If
you share an address with at least one other stockholder and currently receive multiple copies of Annual Report and Proxy Statement,
and you would like to receive a single copy of Annual Report and Proxy Statement, please specify such request in writing and send
such written request to iFresh Inc., 2-39 54th Avenue Long Island City, New York 11101; Attention: Secretary.
Interest
of Officers and Directors in Matters to Be Acted Upon
Except
for the election to the Board of the two nominees set forth herein, none of our officers or directors has any interest in any
of the matters to be acted upon at the Annual Meeting.
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The
following table sets forth certain information with respect to the beneficial ownership of our voting securities by (i) any person
or group owning more than 5% of any class of voting securities, (ii) each director, (iii) our Chief Executive Officer and President
and (iv) all executive officers and directors as a group as of the Record Date.
Name and Address of Beneficial Owner
(1)
|
|
Amount and
Nature of
Beneficial
Ownership
|
|
|
Percent of
Class
|
|
Long Deng
|
|
|
1,240,650
|
(3)
|
|
|
7.41
|
%
|
Lilly Deng
|
|
|
1,240,650
|
(2)(3)
|
|
|
7.41
|
%
|
Mei Deng
|
|
|
264,500
|
|
|
|
1.58
|
%
|
Long Yi*
|
|
|
30,000
|
|
|
|
*
|
|
Mark Fang*
|
|
|
6,000
|
|
|
|
*
|
|
Harvey Leibowitz*
|
|
|
6,000
|
|
|
|
*
|
|
Jay Walder*
|
|
|
3,000
|
|
|
|
*
|
|
Xianhai Huang (Director Nominee)
|
|
|
0
|
|
|
|
0
|
|
Xing Xie (Director Nominee)
|
|
|
0
|
|
|
|
0
|
|
All directors and executive officers as a group (eight individuals)
|
|
|
1,550,150
|
|
|
|
9.26
|
%
|
|
|
|
|
|
|
|
|
|
Five Percent or More Holders:
|
|
|
|
|
|
|
|
|
He Xu Ding Co. Limited
|
|
|
8,294,989
|
(4)
|
|
|
49.56
|
%
|
*
|
Ownership less than 1 percent. 16,737,684
|
(1)
|
Unless otherwise indicated, the business address
of each of the individuals is c/o iFresh Inc. at 2-39 54th Avenue Long Island City, NY 11101.
|
(2)
|
Consists of shares beneficially
owned by Long Deng, Mrs. Deng’s husband.
|
(3)
|
Consists of (i) 1,064,650 shares owned by Mr.
Deng, and (ii) 176,000 shares Mr. Deng has the right to vote pursuant to the terms of an Escrow Agreement.
|
(4)
|
Pursuant to a Schedule 13G filed by the beneficial
owner dated February 21, 2019. Pursuant to such schedule, the address of the beneficial owner is C/O Junfeng Liu,
Unit 5, 27/f., Richmond Comm. Bldg., 109 Argyle Street, Mongkok, Kowloon, Hong Kong and Juefeng Liu is the authorized signatory
for the beneficial owner.
|
PROPOSAL
1 - ELECTION OF DIRECTORS
Nominees
for Director
At
the Annual Meeting, five directors are up for election, three of whom are up for re-election, with such directors to serve until
the next Annual Meeting of Stockholders and until their respective successors have been elected and has qualified, or until their
earlier resignation, removal or death. Jay Walder and Mark Fang have determined not to run for re-election to the Board. The Board
has selected Xianhai Huang and Xing Xie to fill the vacancy created by Mark Fang and Jay Walder, respectively.
If
for some unforeseen reason one or more of the nominees is not available as a candidate for director, the proxies may be voted
for such other candidate or candidates as may be nominated by the Board.
The
following table sets forth the positions and offices presently held with the Company by each nominee, their age as of the Record
Date. Proxies not marked to the contrary will be voted in favor of each such nominee’s election.
Name
|
|
Age
|
|
Position
|
Long Deng
|
|
51
|
|
Chief Executive Officer, Chief Operating Officer
and Chairman of the Board
|
Lilly Deng
|
|
51
|
|
Vice President of Legal and Finance, and Director
|
Harvey Leibowitz
|
|
85
|
|
Director
|
Mark Fung
|
|
52
|
|
Director
|
Xing Xie
|
|
57
|
|
Director Nominee
|
The
following is a summary of the biographical information of our director-nominees:
Long
Deng
became our Chief Executive Officer, Chief Operating Officer and a director in February 2017 in connection with
the closing of the transactions (the “Transactions”) pursuant to which iFresh Inc. acquired NYM Holding, Inc. (“NYM”).
Mr. Deng is the founder of NYM and has served as Chief Executive Officer, Chief Operating Officer and Director of NYM for over
20 years since he started the business in 1995. From 1995 to the present, Mr. Deng has been the sole director of NYM, responsible
for the strategy, operation, and financial planning of NYM. Under his leadership, NYM has developed into a well-recognized Chinese
supermarket chain in north eastern U.S. Mr. Deng is the husband of Mrs. Lilly Deng, who is a member of NYM board of directors
effective upon consummation of the Business Combination. Apart from his business activities, Mr. Deng serves as the president
of United States Chinese Chamber of Commerce and Co-Chair of New York State Republican Party’s Finance Committee.
We
believe Mr. Deng, Long’s qualification to sit on our board of directors includes his extensive knowledge of NYM and the
Chinese supermarket industry, his years of management and leadership experience in NYM and his connections in Chinese American
business society.
Lilly
Deng
became our Vice President of Legal and Finance and a directors in February 2017 in connection with the closing
of the Transactions. She joined NYM in 1995 and is Co-founder of Strong America Ltd., the first wholesale facility of NYM. Mrs.
Lilly Deng currently is Vice President of Legal and Finance and oversees iFresh’s finances. Mrs. Lilly Deng is in charge
of supervising financial issues and compliance with regulations. She also led the development of internal logistics management
program. Mrs. Deng attended Cambridge Business College in 1993. Mrs. Lilly Deng is the wife of Mr. Long Deng.
We
believe Mrs. Lilly Deng’s qualification to sit on our board of directors includes her knowledge of NYM, especially its wholesale
business, her extensive expertise in company financial management, and established relationships with service providers.
Harvey
Leibowitz
became our director in April 2018. Mr. Leibowitz has been a director of Yangtze Port and Logistics Limited (YRIV)
since December 2015. From 1994 to 1999, he was an internal auditor at Sterling National Bank in the Commercial Finance Department.
From 1980 to 1994, Mr. Leibowitz worked for a number of companies in connection with their commercial secured loan financing activities,
such as International Paper Company, Century Factors, Inc., and Foothill- Financial Advisors, Inc. From 1963 to 1979, Mr. Leibowitz
worked in various capacities for Sterling National Bank, most recently as a Senior Vice President. From 1955 to 1962, Mr. Leibowitz
worked at a number of accounting firms and, among other things, worked on audits for clients of the accounting firm. Mr. Leibowitz
graduated from the City University of New York Baruch College in 1955 with a bachelor’s degree in Accounting.
We
believe Mr. Leibowitz qualification to sit on our board of directors include is extensive experience in accounting, auditing and
internal controls.
Mark
Fang
became our director in May 2017. Mr. Fang is a New York attorney and the present Director of the Department
of Consumer Protection in Westchester County. He previously served as the executive director of the Westchester County Human Rights
Commission. Mr. Fang is also a former New York State Assistant Attorney General, Assistant District Attorney in Westchester County,
and Counsel to the Consumer Affairs Committee of the New York City Council. Mr. Fang is a commissioned officer in the United States
Army Reserves holding the rank of Lieutenant Colonel and a veteran of the nation’s war on terrorism.
Xing
Xie
has been nominated to be our director. Since 2011, Mr. Xie has served as the general manager of Shaoxing Yuer Trading
Co., Ltd. From 2006 to 2011, he served as the general manager and chairman of Shaoxing Daxing Import & Export Co., Ltd. He
obtained his Graduate Diploma in Finance from Shaoxing College in 1994.
We
believe Mr. Huang’s qualifications to sit on our board of directors include his lengthy experience in international trade
and management.
Term
of Office
If
elected, the director-nominees will serve for a one-year term until the next Annual Meeting of Stockholders and until their respective
successors have been elected and has qualified, or until their earlier resignation, removal or death.
Vote
Required and Board of Directors’ Recommendation
The
nominees receiving a plurality of the votes cast will be elected to the Board of Directors. If your shares are held in street
name, your broker, bank, custodian, or other nominee holder cannot vote your shares on this proposal, unless you direct the holder
how to vote, by marking your proxy card. For purposes of the election of directors, abstentions and broker non-votes will have
no effect on the result of the vote.
The
Board recommends a vote FOR the election of all the above director-nominees (Item 1 for the enclosed proxy card).
PROPOSAL
NO. 2 - RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS
The
Audit Committee has selected Friedman LLP (“Friedman”) to serve as the independent registered public accounting firm
of the Company for the fiscal year ended March 31, 2019.
We
are asking our shareholders to ratify the selection of Friedman as our independent registered public accounting firm. In the event
our shareholders fail to ratify the appointment, the Audit Committee may reconsider this appointment.
We
have been advised by Friedman that neither the firm nor any of its associates had any relationship with our company other than
the usual relationship that exists between independent registered public accountant firms and their clients during the last fiscal
year. Representatives of Friedman are not expected to attend the Annual Meeting in person and therefore are not expected
to be available to respond to any questions. As a result, representatives of Friedman will not make a statement at
the Annual Meeting.
Principal
Accountant Fees and Services
Fees
for audit services include fees associated with the annual audit and the review of documents filed with the SEC including quarterly
reports on Form 10-Q and the Annual Report on Form 10-K.
Fees
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
Audit Fees (1)
|
|
|
|
|
|
|
|
|
Friedman
|
|
$
|
329,000
|
|
|
$
|
300,000
|
|
|
|
|
|
|
|
|
|
|
Audit Related Fees
|
|
|
|
|
|
|
|
|
Friedman
|
|
$
|
10,000
|
|
|
$
|
10,000
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
339,000
|
|
|
$
|
310,000
|
|
|
(1)
|
Audit
Fees consist of fees billed for professional services rendered for the audit of the Company’s consolidated annual financial
statements and review of the interim consolidated financial statements included in quarterly reports and services that are normally
provided by our auditors in connection with statutory and regulatory filings or engagements.
|
Vote
Required and Recommendation
Approval
of this proposal will require the affirmative vote of the holders of a majority of the shares of the Company’s common stock
represented in person or by proxy and entitled to vote at the Annual Meeting.
The
Board recommends a vote “FOR” ratification of the appointment of Friedman LLP as our independent auditors to audit
the financial statements for the fiscal year ended on March 31, 2019 (item 2 on the enclosed proxy card).
PROPOSAL
NO. 3 - ADVISORY VOTE ON EXECUTIVE COMPENSATION
The
SEC has adopted final rules requiring public companies to provide shareholders with periodic advisory (non-binding votes) on executive
compensation, also referred to as “say-on-pay” proposals. We are presenting the following proposal, which gives you
as a shareholder the opportunity to endorse or not endorse the compensation paid to our Principal Executive Officer and Principal
Financial Officer (collectively, the “Named Executive Officers”), as disclosed in this Proxy Statement pursuant to Item
402 of Regulation S-K (including the compensation tables and accompanying narrative discussion).
“RESOLVED,
that the compensation paid to the Company’s Named Executive Officers for the year ended March 31, 2019, as disclosed pursuant
to Item 402 of Regulation S-K, compensation tables and narrative discussion is hereby APPROVED.”
Pursuant
to the Exchange Act and the rules promulgated thereunder, this vote will not be binding on the Board or the Compensation Committee
and may not be construed as overruling a decision by the Board or the Compensation Committee, creating or implying any change
to the fiduciary duties of the Board or the Compensation Committee or any additional fiduciary duty by the Board or the Compensation
Committee or restricting or limiting the ability of shareholders to make proposals for inclusion in proxy materials related to
executive compensation. The Board and the Compensation Committee, however, may in their discretion take into account
the outcome of the vote when considering future executive compensation arrangements.
Vote
Required and Recommendation
Approval
of this proposal will require the affirmative vote of the holders of a majority of the shares of the Company’s common stock
represented in person or by proxy and entitled to vote at the Annual Meeting.
The
Board recommends a vote “FOR” approval of the compensation of the company’s named executive officers as disclosed in
this Proxy Statemen
t.
PROPOSAL
NO. 4 - TO CONDUCT AN ADVISORY VOTE ON THE FREQUENCY OF
FUTURE
ADVISORY VOTES ON EXECUTIVE COMPENSATION
The
SEC has also adopted final rules requiring public companies to hold an advisory (non-binding) vote on the frequency of holding
say-on-pay votes. Accordingly, as required by the SEC’s rules, we are including this proposal to give our shareholders the opportunity
to inform us as to how often they wish the Company to include a say-on-pay proposal, similar to Proposal No. 3, in this Proxy
Statement.
We
are presenting the following proposal, which gives you, as a shareholder, the opportunity to inform us as to whether you wish
us to hold an advisory (non-binding) vote on executive compensation once every (1) one year, (2) two years, or (3) three years,
or you may abstain from voting on the proposal set forth in the following resolution.
“RESOLVED,
that the shareholders determine, on an advisory basis, whether the preferred frequency of an advisory vote on the executive compensation
of the Company’s Named Executive Officers as set forth in the Company’s Proxy Statement for the 2019 Annual Meeting of Stockholders
should be every year, every two years, or every three years.”
The
Board recommends that you vote for every three (3) years as the desired frequency for the Company to hold a non-binding, advisory
vote of the shareholders on executive compensation. We believe this frequency is appropriate for the reasons set forth below:
1.
Our equity compensation program outlined in the Plan for the Named Executive Officers is designed to support long-term value creation,
and a vote every three years will allow the shareholders to better judge the equity compensation program in relation to our long-term
performance. We strive to ensure management’s interests are aligned with shareholders’ interests to support long-term value creation
through our equity compensation program. To that end, we may grant equity awards to vest over multi-year periods of service to
encourage our Named Executive Officers to focus on long-term performance, and recommend a vote every three years, which would
allow the equity compensation to be evaluated over a similar time-frame and in relation to long-term performance.
2.
A vote every three (3) years will provide the Board and the Compensation Committee with the time to thoughtfully consider and
thoroughly respond to shareholders’ sentiments and to implement any necessary changes in light of the timing required therefor.
The Board and the compensation committee will carefully review changes to the executive compensation to maintain the effectiveness
and credibility of the program, which is important for aligning interests and for motivating and retaining our Named Executive
Officers.
3.
We are open to input from shareholders regarding board and governance matters, as well as the equity compensation program. We
believe that the shareholders’ ability to contact us and the Board at any time to express specific views on executive compensation
holds us accountable to shareholders and reduces the need for and value of more frequent advisory votes on executive compensation.
Pursuant
to the Exchange Act and the rules promulgated thereunder, this vote on the frequency of future advisory votes on named executive
officer compensation is non-binding on the Board and its committees. This vote may not be construed as overruling a decision by
the Board or its committees, creating or implying any change to the fiduciary duties of the Board or its committees or any additional
fiduciary duty by the Board or its committees or restricting or limiting the ability of shareholders to make proposals for inclusion
in proxy materials related to executive compensation. Notwithstanding the Board’s recommendation and the outcome of the vote on
this matter, the Board may, in the future, decide to conduct advisory votes on a more or less frequent basis and may vary its
practice based on factors such as discussions with shareholders and the adoption of material changes to compensation programs.
Vote
Required and Recommendation
Approval
of this proposal will require the affirmative vote of the holders of a majority of the shares of the Company’s common stock
represented in person or by proxy and entitled to vote at the Annual Meeting.
THE
BOARD RECOMMENDS THAT STOCKHOLDERS VOTE TO HAVE THE NON-BINDING VOTE ON EXECUTIVE COMPENSATION OCCUR EVERY THREE YEARS.
DIRECTORS
AND OFFICERS
Set
forth below is certain information regarding our current directors and executive officers. The Board is comprised of five
directors.
The
following table sets forth certain information with respect to our current directors and executive officers:
Name
|
|
Age
|
|
Position
|
Long Deng
|
|
51
|
|
Chief Executive Officer,
Chief Operating Officer and Chairman of the Board
|
Long Yi
|
|
42
|
|
Chief Financial Officer
|
Lilly Deng
|
|
51
|
|
Vice President of Legal and Finance, and Director
|
Mei Deng
|
|
46
|
|
Vice President of Human Resources
|
Harvey Leibowitz
|
|
85
|
|
Director
|
Mark Fang
|
|
51
|
|
Director
|
Jay Walder
|
|
58
|
|
Director
|
All
of the directors serve until the next Annual Meeting of Stockholders. Our officers serve at the discretion of the Board.
Set
forth below is biographical information about our current executive officers other than those who are also directors and directors
who will not seek reelection. The biographical information about the directors who are up for votes is set forth above under the
heading “Proposal 1: Election of Directors -- Nominees for Directors”
Long
Yi
became our Chief Executive Officer on January 17, 2019. He has served as the CFO and Secretary of China Bat Group Inc.
(formerly China Commercial Credit, Inc.) a Nasdaq listed company (NASDAQ: GLG) (“GLG”) since January 1, 2013. Mr.
Yi acted as the interim Chief Executive Officer of GLG between August 21, 2014 and December 29, 2014. Mr. Yi was appointed to
serve as a director on the GLG’s Board effective June 12, 2015. Mr. Yi has also been the Chief Executive Officer of another
Nasdaq listed company, Delta Technology Holdings Limited (NASDAQ: DELT) since January 26, 2018. Prior to joining GLG, Mr. Yi was
the senior financial manager in Sutor Technology Group Ltd. (Nasdaq: SUTR) from 2008 to August 2012. He served as an accounting
manager at Forterra Inc. in Canada from 2006 to 2008. He is a Certified Public Accountant in the State of Illinois. Mr. Yi has
a Bachelor’s degree in Accounting from Northeastern University and a Master’s degree in Accounting and Finance from
University of Rotterdam. He also obtained a graduate diploma in accounting from McGill University.
Mei
Deng
became our Vice President of Human Resources in February 2017 in connection with the closing of the Transactions.
She has been the Vice President of Human Resources of NYM since January 2016. She joined Strong America as a Sales Assistant in
1998 primarily in charge of custom applications for the import of goods and materials. Ms. Deng was promoted to General Manager
of Strong America in 2008. She is the sister of Mr. Deng.
Jay
Walder
became our director in March 2018 and has elected not to stand for re-election. He has been the Managing Member
of Walder Worldwide LLC since June 2010. From December 2008 to December 2010, Mr. Walder was a Real-Estate salesperson at Nest
Seekers International. From 1988 to 2008 he worked at Standard & Poor’s, most recently as a Sales Executive. Prior to
that, he worked at ADP, Edward Blank Associates and Telspan. Mr. Walder graduated with a degree in Political Science from the
State University of New York at Stony Brook.
Except
as noted in the biographical information of our officers and directors, there are no family relationships among our directors
or officers.
Legal
Proceedings
There
are no material proceedings to which any director and executive officers of the Company is a party adverse to the Company or has
a material interest adverse to the Company.
TRANSACTIONS
WITH RELATED PERSONS, PROMOTERS AND CERTAIN CONTROL PERSONS
Management
Fees, Advertising Fees and Sale of Non-Perishable and Perishable Products to Related Parties
The
following is a detailed breakdown of significant management fees, advertising fees and sale of products for the nine months ended
December 31, 2018, the years ended March 31, 2018 and 2017 to related parties which are directly or indirectly owned by Mr. Long
Deng, the majority shareholder of iFresh, and not eliminated in the consolidated financial statements.
|
|
Nine months ended December 31, 2018
|
|
Related Parties
|
|
Management
Fees
|
|
|
Advertising
Fees
|
|
|
Non-Perishable & Perishable
Sales
|
|
New York Mart, Inc.
|
|
$
|
11,651
|
|
|
$
|
880
|
|
|
$
|
193,741
|
|
Pacific Supermarket Inc.
|
|
|
77,998
|
|
|
|
14,040
|
|
|
|
1,314,938
|
|
NY Mart MD Inc.
|
|
|
72,119
|
|
|
|
10,920
|
|
|
|
1,622,255
|
|
New York Mart El Monte Inc.
|
|
|
4,944
|
|
|
|
1,600
|
|
|
|
-
|
|
iFresh Harwin Inc.
|
|
|
2,862
|
|
|
|
2,600
|
|
|
|
9,677
|
|
Spring Farm Inc.
|
|
|
3,702
|
|
|
|
-
|
|
|
|
2,708
|
|
Spicy Bubbles, Inc.
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
NYM Tampa Seafood Inc.
|
|
|
550
|
|
|
|
|
|
|
|
-
|
|
Pine Court Sunrise, Inc.
|
|
|
-
|
|
|
|
-
|
|
|
|
43,274
|
|
Elhurst
|
|
|
8,877
|
|
|
|
860
|
|
|
|
-
|
|
|
|
$
|
182,703
|
|
|
$
|
30,900
|
|
|
$
|
3,186,592
|
|
|
|
Year ended March 31, 2018
|
|
Related Parties
|
|
Management Fees
|
|
|
Advertising Fees
|
|
|
Non-Perishable
& Perishable Sales
|
|
New York Mart, Inc.
|
|
$
|
62,357
|
|
|
$
|
29,793
|
|
|
$
|
2,188,562
|
|
Pacific Supermarkets Inc.
|
|
|
89,116
|
|
|
|
32,913
|
|
|
|
3,442,263
|
|
NY Mart MD Inc.
|
|
|
64,053
|
|
|
|
10,501
|
|
|
|
3,588,064
|
|
El Monte
|
|
|
21,751
|
|
|
|
3,400
|
|
|
|
134,870
|
|
iFresh Harwin Inc.
|
|
|
4,240
|
|
|
|
3,405
|
|
|
|
163, 507
|
|
Spring Farm Inc.
|
|
|
-
|
|
|
|
-
|
|
|
|
12,131
|
|
Spicy Bubbles, Inc.
|
|
|
-
|
|
|
|
-
|
|
|
|
95,418
|
|
Tampa Seafood
|
|
|
4,050
|
|
|
|
-
|
|
|
|
6,703
|
|
Pine Court Chinese Bistro
|
|
|
-
|
|
|
|
-
|
|
|
|
182,248
|
|
|
|
$
|
241,327
|
|
|
$
|
80,057
|
|
|
$
|
9,813,766
|
|
|
|
Year ended March 31, 2017
|
|
Related Parties
|
|
Management Fees
|
|
|
Advertising Fees
|
|
|
Non-Perishable
& Perishable Sales
|
|
New York Mart, Inc.
|
|
$
|
46,170
|
|
|
$
|
31,289
|
|
|
$
|
2,832,018
|
|
Pacific Supermarkets Inc.
|
|
|
57,669
|
|
|
|
34,230
|
|
|
|
3,201,198
|
|
NY Mart MD Inc.
|
|
|
45,647
|
|
|
|
-
|
|
|
|
2,634,650
|
|
Spring Farm Inc.
|
|
|
-
|
|
|
|
-
|
|
|
|
6,114
|
|
Spicy Bubbles, Inc.
|
|
|
-
|
|
|
|
-
|
|
|
|
102,580
|
|
NYM Milford, LLC
|
|
|
-
|
|
|
|
-
|
|
|
|
79,320
|
|
Pine Court Chinese Bistro
|
|
|
-
|
|
|
|
-
|
|
|
|
169,813
|
|
|
|
$
|
149,486
|
|
|
$
|
65,519
|
|
|
$
|
9,050,553
|
|
Long-Term
Operating Lease Agreement with a Related Party
The
Company leases warehouse and stores from related parties that are owned directly or indirectly, in whole or in part, by Mr. Long
Deng, the Company’s majority shareholder and Chief Executive Officer. Rent incurred to the related party was $877,381 for
the nine months ended on December 31, 2018. Rent incurred to the related party was $1,208,000 and $698,000 for the fiscal years
ended on March 31, 2018 and 2017, respectively.
Procedures
for Approval of Related Party Transactions
Our
Audit Committee is charged with reviewing and approving all potential related party transactions. We have not adopted
other procedures for review, or standards for approval, of such transactions, but instead review them on a case-by-case basis.
SECTION
16 (a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section
16(a) of the Securities Exchange Act of 1934 requires our officers, directors and persons who own more than ten percent of a registered
class of our equity securities to file reports of ownership and changes in ownership with the Securities and Exchange Commission.
Officers, directors and ten percent shareholders are required by regulation to furnish us with copies of all Section 16(a) forms
they file. We believe that, during the year ended March 31, 2018, all filing requirements applicable to our officers, directors
and greater than ten percent beneficial owners were complied with.
DIRECTOR
INDEPENDENCE
The
Company currently has three independent directors: Mr. Leibowitz, Mr. Fang and Mr. Walder are independent directors. Each is independent
under the Nasdaq Marketplace Rules.
Board
Leadership Structure and Role in Risk Oversight
One
person currently holds the positions of principal executive officer and chairman of the Board of Company. The Board
does not have a policy on whether or not the roles of the Chief Executive Officer and Chairman should be separate. Instead,
the Company’s By-Laws provide that the directors may designate a Chairman of the Board from among any of the directors.
Accordingly, the Board reserves the right to vest the responsibilities of the Chief Executive Officer and Chairman in the same
person or in two different individuals depending on what it believes is in the best interest of the Company. The Board has determined
that the consolidation of these roles is appropriate because it allows Mr. Deng to bring a wider perspective to the deliberations
of the Board on matters of corporate strategy and policy. The Board believes that there is no single Board leadership structure
that would be most effective in all circumstances and therefore retains the authority to modify this structure to best address
the Company’s and the Board’s then current circumstances as and when appropriate.
The
Company’s management is responsible for identifying, assessing and managing the material risks facing the business. The
Board and, in particular, the Audit Committee are responsible for overseeing the Company’s processes for assessing and managing
risk. Each of the Chief Executive Officer and Chief Financial Officer, with input as appropriate from other appropriate
management members, report and provide relevant information directly to either the Board and/or the Audit Committee on various
types of identified material financial, reputational, legal, operational, environmental and business risks to which the Company
is or may be subject, as well as mitigation strategies for certain salient risks. In accordance with NASDAQ Capital Market
requirements and as set forth in its charter, the Audit Committee periodically reviews and discusses the Company’s business
and financial risk management and risk assessment policies and procedures with senior management, the Company’s independent
auditor. The Audit Committee reports its risk assessment function to the Board. The roles of the Board and the Audit
Committee in the risk oversight process have not affected the Board leadership structure. Although the board has not
formally designated a lead independent director, Mr. Leibowitz, the chairman of the audit committee, has led the executive
session of the independent directors.
It
is the policy of the Board of Directors that all directors should attend the annual meeting of stockholders in person or
by teleconference. Last year the Company did not hold an annual meeting as its special meeting of stockholders held to approve
its business combination included a proposal providing for the election of directors.
Audit
Committee
We
established an audit committee of the board of directors, which currently consists of Harvey Leibowitz, Mark Fang and Jay Walder,
each of whom is an independent director under the NASDAQ’s listing standards. The audit committee’s duties, which
are specified in our Audit Committee Charter, include, but are not limited to:
|
●
|
reviewing and discussing
with management and the independent auditor the annual audited financial statements, and recommend to the board whether the
audited financial statements should be included in our Form 10-K;
|
|
|
|
|
●
|
discussing with
management and the independent auditor significant financial reporting issues and judgments made in connection with the preparation
of our financial statements;
|
|
|
|
|
●
|
discussing with
management major risk assessment and risk management policies;
|
|
|
|
|
●
|
monitoring the independence
of the independent auditor;
|
|
|
|
|
●
|
verifying the rotation
of the lead (or coordinating) audit partner having primary responsibility for the audit and the audit partner responsible
for reviewing the audit as required by law;
|
|
|
|
|
●
|
reviewing and approving
all related-party transactions;
|
|
|
|
|
●
|
inquiring and discussing
with management our compliance with applicable laws and regulations;
|
|
●
|
pre-approving all
audit services and permitted non-audit services to be performed by our independent auditor, including the fees and terms of
the services to be performed;
|
|
|
|
|
●
|
appointing or replacing
the independent auditor;
|
|
|
|
|
●
|
determining the
compensation and oversight of the work of the independent auditor (including resolution of disagreements between management
and the independent auditor regarding financial reporting) for the purpose of preparing or issuing an audit report or related
work; and
|
|
|
|
|
●
|
establishing procedures
for the receipt, retention and treatment of complaints received by us regarding accounting, internal accounting controls or
reports which raise material issues regarding our financial statements or accounting policies.
|
A
copy of the audit committee’s current charter is available at our corporate website at http://investors.ifreshmarket.com/static-files/16688175-a363-4f45-af61-5392f9665393.
Financial
Experts on Audit Committee
The
audit committee will at all times be composed exclusively of “independent directors” who are “financially literate”
as defined under NASDAQ listing standards. NASDAQ listing standards define “financially literate” as being able to
read and understand fundamental financial statements, including a company’s balance sheet, income statement and cash flow
statement.
In
addition, we must certify to NASDAQ that the committee has, and will continue to have, at least one member who has past employment
experience in finance or accounting, requisite professional certification in accounting, or other comparable experience or background
that results in the individual’s financial sophistication. The board of directors has determined that Harvey Leibowitz qualifies
as an “audit committee financial expert,” as defined under rules and regulations of the SEC.
Nominating
Committee
We
have established a nominating committee of the board of directors, which currently consists of Harvey Leibowitz, Mark Fang and
Jay Walder, each of whom is an independent director under NASDAQ’s listing standards. The nominating committee is responsible
for overseeing the selection of persons to be nominated to serve on our board of directors. The nominating committee considers
persons identified by its members, management, shareholders, investment bankers and others.
Guidelines
for Selecting Director Nominees
The
guidelines for selecting nominees, which are specified in the Nominating Committee Charter, generally provide that the persons
to be nominated:
|
●
|
should
have demonstrated notable or significant achievements in business, education or public service;
|
|
|
|
|
●
|
should possess the
requisite intelligence, education and experience to make a significant contribution to the board of directors and bring a
range of skills, diverse perspectives and backgrounds to its deliberations; and
|
|
|
|
|
●
|
should have the
highest ethical standards, a strong sense of professionalism and intense dedication to serving the interests of the shareholders.
|
A
copy of the nominating committee’s current charter is available at our corporate website at http://investors.ifreshmarket.com/static-files/0d616b3f-692c-436f-887f-17404a93a1fe.
Stockholders
who wish to recommend individuals for consideration by the Nominating Committee to become nominees for election to the Board at
our next Annual Meeting of Stockholders may do so by submitting a written recommendation to the Nominating Committee, iFresh Inc.,
2-39 54th Avenue Long Island City, New York 11101; Attention: Secretary, in accordance with the procedures set forth below in
this proxy statement under the heading “Stockholder Proposals.” For nominees for election to the Board proposed by
stockholders to be considered, the following information concerning each nominee must be timely submitted in accordance with the
required procedures:
|
●
|
The
candidate’s name, age, business address, residence address, principal occupation or employment, the class and number
of shares of our capital stock the candidate beneficially owns, a brief description of any direct or indirect relationships
with us, and the other information that would be required in a proxy statement soliciting proxies for the election of the
candidate as a director;
|
|
|
|
|
●
|
A
signed consent of the nominee to being named as a nominee, to cooperate with reasonable background checks and personal interviews
and to serve as a director, if elected; and
|
|
|
|
|
●
|
As
to the stockholder proposing such nominee, that stockholder’s name and address, the class and number of shares of our
capital stock the stockholder beneficially owns, a description of all arrangements or understandings between the stockholder
and the candidate and any other person or persons (including their names) pursuant to which the recommendation is being made,
a list of all other companies to which the stockholder has recommended the candidate for election as a director in that fiscal
year, and a representation that the stockholder intends to appear in person or by proxy at the meeting to nominate the person
named in its notice.
|
Compensation
Committee
We
established a compensation committee of the board of directors, which consists of Harvey Leibowitz, Mark Fang and Jay Walder,
each of whom is an independent director under NASDAQ’s listing standards. The compensation committee’s duties, which
are specified in our Compensation Committee Charter, include, but are not limited to:
|
●
|
reviewing
and approving on an annual basis the corporate goals and objectives relevant to our Chief Executive Officer’s compensation,
evaluating our Chief Executive Officer’s performance in light of such goals and objectives and determining and approving
the remuneration (if any) of our Chief Executive Officer’s based on such evaluation;
|
|
|
|
|
●
|
reviewing and approving
the compensation of all of our other executive officers;
|
|
|
|
|
●
|
reviewing our executive
compensation policies and plans;
|
|
|
|
|
●
|
implementing and
administering our incentive compensation equity-based remuneration plans;
|
|
|
|
|
●
|
assisting management
in complying with our proxy statement and annual report disclosure requirements;
|
|
|
|
|
●
|
approving all special
perquisites, special cash payments and other special compensation and benefit arrangements for our executive officers and
employees;
|
|
|
|
|
●
|
if required, producing
a report on executive compensation to be included in our annual proxy statement; and
|
|
|
|
|
●
|
reviewing, evaluating
and recommending changes, if appropriate, to the remuneration for directors.
|
A
copy of the compensation committee’s current charter is available at our corporate website at http://investors.ifreshmarket.com/static-files/f0579d36-ae03-48da-a9e3-187b3da7e250.
Board
Meetings
The
board and its committees held the following number of meetings during the year ended March 31, 2019:
Board of Directors
|
|
|
5
|
|
Audit Committee
|
|
|
3
|
|
Compensation Committee
|
|
|
3
|
|
Nominating Committee
|
|
|
3
|
|
The
meetings include meetings that were held by means of a conference telephone call, but do not include actions taken by unanimous
written consent.
Each
director attended at least 75% of the total number of meetings of the Board of Directors and those committees on which he served
during the year.
STOCKHOLDER
COMMUNICATIONS
Stockholders
who wish to communicate with the Board or with specified members of the Board should do so by sending any communication to iFresh
Inc., 2-39 54th Avenue Long Island City, New York 11101; Attention: Secretary.
Any
such communication should state the number of shares beneficially owned by the shareholder making the communication. Our Secretary
will forward such communication to the full Board or to any individual member or members of the Board to whom the communication
is directed, unless the communication is unduly hostile, threatening, illegal or similarly inappropriate, in which case the Secretary
has the authority to discard the communication or take appropriate legal action regarding the communication.
CODE
OF ETHICS
On
August 12, 2015, our board of directors adopted a code of ethics that applies to our executive officers, directors and employees.
The code of ethics codifies the business and ethical principles that governs aspects of our business. The Code of Ethics is currently
available at our corporate website at http://investors.ifreshmarket.com/static-files/320e7e69-ce4e-4a7e-996b-252fd4fcf62b.
BOARD
OF DIRECTORS COMPENSATION
The
following table represents compensation earned by our non-executive directors as of March 31, 2018.
Name
|
|
Fees earned in cash
($)
|
|
|
Stock
awards*
($)
|
|
|
Option
awards
($)
|
|
|
All other
compensation
($)
|
|
|
Total
($)
|
|
Harvey Leibowitz
|
|
$
|
-
|
|
|
|
6,900
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,900
|
|
Mark Fang
|
|
$
|
-
|
|
|
|
6,900
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,900
|
|
Jay Walder
|
|
$
|
-
|
|
|
|
6,900
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,900
|
|
|
*
|
calculated
based on $1.15 per share at the time of granting the awards
|
REPORT
OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS
The
Audit Committee, on behalf of the Board, serves as an independent and objective party to monitor and provide general oversight
of the integrity of our financial statements, our independent registered public accounting firm’s qualifications and independence,
the performance of our independent registered public accounting firm, our compliance with legal and regulatory requirements and
our standards of business conduct. The Audit Committee performs these oversight responsibilities in accordance with its Audit
Committee Charter.
Our
management is responsible for preparing our financial statements and our financial reporting process. Our independent registered
public accounting firm is responsible for expressing an opinion on the conformity of our audited financial statements to generally
accepted accounting principles in the United States of America. The Audit Committee met with our independent registered public
accounting firm, with and without management present, to discuss the results of their examinations and the overall quality of
our financial reporting.
In
this context, the Audit Committee has reviewed and discussed our audited financial statements for the year ended March 31, 2018
with management and with our independent registered public accounting firm. The Audit Committee has discussed with our independent
registered public accounting firm the matters required to be discussed by Statement on Auditing Standards No. 61, as amended (Communications
with Audit Committees), which includes, among other items, matters related to the conduct of the audit of our annual financial
statements.
The
Audit Committee has received the written disclosures and the letter from the independent registered public accounting firm required
by applicable requirements of the Public Company Accounting Oversight Board regarding such independent registered public accounting
firm’s communications with the Audit Committee concerning independence, and has discussed with the independent registered public
accounting firm its independence from us and our management. In addition, the Audit Committee has considered whether the provision
of non-audit services by our independent registered public accounting firm in 2016 was compatible with maintaining our registered
public accounting firm’s independence and has concluded that it was.
Based
on its review of the audited financial statements and the various discussions noted above, the Audit Committee recommended to
the Board that our audited financial statements be included in our Annual Report on Form 10-K for the year ended March 31, 2018.
Respectfully
submitted by the Audit Committee,
Harvey
Leibowitz
Mark
Fang
Jay
Walder
The
foregoing Audit Committee Report does not constitute soliciting material and shall not be deemed filed or incorporated by reference
into any other filing of our company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange
Act, except to the extent we specifically incorporate this Audit Committee Report by reference therein.
EXECUTIVE
COMPENSATION
The
following Summary Compensation Table summarizes the total compensation accrued for our named executive officers in each of fiscal
2018 and 2017 and should be read in conjunction with the Compensation Discussion and Analysis.
Name and Principal Position
|
|
Fiscal Year
Ended
March 31,
|
|
|
Salary
($)
|
|
|
Bonus
($)
|
|
|
Stock and
Option
Awards
Number
|
|
|
All Other
Compensation
($)
|
|
|
Total
($)
|
|
Long Deng
|
|
2017
|
|
|
|
717,170
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
717,170
|
|
(Director, Chief Executive Officer and Chief Operating Officer)
|
|
2018
|
|
|
|
738,400
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
738,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lilly Deng
|
|
2017
|
|
|
|
100,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
100,000
|
|
(Vice President of Legal and Finance)
|
|
2018
|
|
|
|
115,960
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
115,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mei Deng
|
|
2017
|
|
|
|
83,200
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
83,200
|
|
(Vice President of Human Resources)
|
|
2018
|
|
|
|
83,200
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
83,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long Yi(1)
|
|
2017
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
(Chief Executive Officer)
|
|
2018
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
(1)
|
Long
Yi was appointed to be our Chief Executive Officer on January 17, 2019.
|
Grants
of Plan Based Awards
None
of iFresh’s named executive officers participate in or have account balances in any plan based award programs.
Employment
Agreements
On
January 17, 2019, Long Yi signed an employment agreement with the Company and agreed to receive an annual compensation consisting
of an aggregate 200,000 shares of the Company’s Common Stock (the “Shares”). Mr. Yi shall receive 30,000 Shares
upon execution of this employment agreement, 20,000 Shares upon filing of a proxy statement in connection with a potential acquisition,
100,000 Shares upon closing of the acquisition and 50,000 Shares upon closing of a disposition of the Company’s non-performing
assets.
Outstanding
Equity Awards at Fiscal Year-End; Option Exercises and Stock Vested
As
of March 31, 2018, none of iFresh’s named executive officers has ever held options to purchase interests in it or other
awards with values based on the value of its interest.
Pension
Benefits
None
of iFresh’s named executive officers participate in or have account balances in qualified or nonqualified defined benefit
plans sponsored by it.
Nonqualified
Deferred Compensation
None
of iFresh’s named executive officers participate in or have account balances in nonqualified defined contribution plans
or other deferred compensation plans maintained by it.
ACCOUNTANT
FEES AND SERVICES
Aggregate
fees billed to the Company by Friedman LLP (“Friedman”), the Company’s independent registered public accountants,
during the last two fiscal years were as follows:
Fees
|
|
2017
|
|
|
2018
|
|
|
|
|
|
|
|
|
Audit Fees(1)
|
|
|
|
|
|
|
Friedman
|
|
$
|
300,000
|
|
|
$
|
329,000
|
|
|
|
|
|
|
|
|
|
|
Audit Related Fees
|
|
|
|
|
|
|
|
|
Friedman
|
|
$
|
10,000
|
|
|
$
|
10,000
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
310,000
|
|
|
$
|
339,000
|
|
|
(1)
|
Audit
Fees consist of fees billed for professional services rendered for the audit of the Company’s consolidated annual financial
statements and review of the interim consolidated financial statements included in quarterly reports and services that are normally
provided by our auditors in connection with statutory and regulatory filings or engagements.
|
Representatives
of Friedman have been invited to but are not expected to be present at the Annual Meeting.
Pre-Approval
of Services
In
accordance with the SEC’s auditor independence rules, the Audit Committee has established the following policies and procedures
by which it approves in advance any audit or permissible non-audit services to be provided to the Company by its independent auditor.
Prior
to the engagement of the independent auditor for any fiscal year’s audit, management submits to the Audit Committee for
approval lists of recurring audit, audit-related, tax and other services expected to be provided by the auditor during that fiscal
year. The Audit Committee adopts pre-approval schedules describing the recurring services that it has pre-approved, and is informed
on a timely basis, and in any event by the next scheduled meeting, of any such services rendered by the independent auditor and
the related fees.
The
fees for any services listed in a pre-approval schedule are budgeted, and the Audit Committee requires the independent auditor
and management to report actual fees versus the budget periodically throughout the year. The Audit Committee will require additional
pre-approval if circumstances arise where it becomes necessary to engage the independent auditor for additional services above
the amount of fees originally pre-approved. Any audit or non-audit service not listed in a pre-approval schedule must be separately
pre-approved by the Audit Committee on a case-by-case basis. Every request to adopt or amend a pre-approval schedule or to provide
services that are not listed in a pre-approval schedule must include a statement by the independent auditors as to whether, in
their view, the request is consistent with the SEC’s rules on auditor independence.
The
Audit Committee will not grant approval for:
|
●
|
any
services prohibited by applicable law or by any rule or regulation of the SEC or other regulatory body applicable to
the Company;
|
|
|
|
|
●
|
provision by the
independent auditor to the Company of strategic consulting services of the type typically provided by management consulting
firms; or
|
|
|
|
|
●
|
the retention of
the independent auditor in connection with a transaction initially recommended by the independent auditor, the tax treatment
of which may not be clear under the Internal Revenue Code and related regulations and which it is reasonable to conclude will
be subject to audit procedures during an audit of the Company’s financial statements.
|
Tax
services proposed to be provided by the auditor to any director, officer or employee of the Company who is in an accounting role
or financial reporting oversight role must be approved by the Audit Committee on a case-by-case basis where such services are
to be paid for by the Company, and the Audit Committee will be informed of any services to be provided to such individuals that
are not to be paid for by the Company.
In
determining whether to grant pre-approval of any non-audit services in the “all other” category, the Audit Committee
will consider all relevant facts and circumstances, including the following four basic guidelines
:
|
●
|
whether
the service creates a mutual or conflicting interest between the auditor and the Company;
|
|
|
|
|
●
|
whether the service
places the auditor in the position of auditing his or her own work;
|
|
|
|
|
●
|
whether the service
results in the auditor acting as management or an employee of the Company; and
|
|
|
|
|
●
|
whether the service
places the auditor in a position of being an advocate for the Company.
|
STOCKHOLDER
PROPOSALS
Stockholders
who wish to present proposals for inclusion in the Company’s proxy materials for the next Annual Meeting of Stockholders
may do so by following the procedures prescribed in Rule 14a-8 under the Securities Exchange Act of 1934, as amended. To
be eligible, the shareholder proposals must be received by our Secretary at our principal executive office on or before March
31, 2020. Under SEC rules, you must have continuously held for at least one year prior to the submission of the proposal (and
continue to hold through the date of the meeting) at least $2,000 in market value, or 1%, of our outstanding stock in order to
submit a proposal which you seek to have included in the Company’s proxy materials. We may, subject to SEC review and guidelines,
decline to include any proposal in our proxy materials.
Stockholders
who wish to make a proposal at the next Annual Meeting, other than one that will be included in our proxy materials, must notify
us no later than March 31, 2020. If a shareholder who wishes to present a proposal fails to notify us by March 31, 2020, the proxies
that management solicits for the meeting will confer discretionary authority to vote on the shareholder’s proposal if it
is properly brought before the meeting.
OTHER
BUSINESS
While
the accompanying Notice of Annual Meeting of Stockholders provides for the transaction of such other business as may properly
come before the Annual Meeting, the Company has no knowledge of any matters to be presented at the Annual Meeting other than
those listed as Proposal 1 in the notice. However, the enclosed Proxy gives discretionary authority in the event that any other
matters should be presented.
ANNUAL
REPORT
Upon
written request to Secretary, iFresh Inc., 2-39 54th Avenue Long Island City, New York 11101, we will provide without charge to
each person requesting a copy of our 2018 Annual Report, including the financial statements filed therewith. We will furnish a
requesting stockholder with any exhibit not contained therein upon specific request. In addition, this Proxy Statement, as well
as our 2018 Annual Report, is available on our Internet website at http://investors.ifreshmarket.com/financial-information/sec-filings
|
By Order of the Board of
Directors.
|
|
|
|
/s/
Long Deng
|
|
Long Deng
|
|
Chief Executive Officer
|
Long
Island City, New York
May
10, 2019
iFRESH
INC.
THIS
PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
2019
ANNUAL MEETING OF SHAREHOLDERS
June
10, 2019 (New York Time)
The
shareholders hereby appoint Long Deng and Long Yi, or either of them, as proxies, each with the power to appoint them substitute,
and hereby authorizes them to represent and to vote, as designated on the reverse side of this ballot, all of the shares of Common
Stock of iFresh Inc. that the shareholders are entitled to vote at the 2019 Annual Meeting of Shareholders to be held on June
10, 2019, 10:00 a.m. New York Time, at the iFresh Long Islands City headquarters, 2-39 54th Avenue, Long Island City, New York
11101and any adjournment or postponement thereof.
THIS
PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED AS DIRECTED BY THE SHAREHOLDERS. IF NO SUCH DIRECTIONS ARE MADE, THIS PROXY WILL
BE VOTED FOR THE ELECTION OF THE NOMINEES LISTED ON THE REVERSE SIDE FOR THE BOARD OF DIRECTORS AND FOR EACH PROPOSAL.
PLEASE
MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED REPLY ENVELOPE
CONTINUED
AND TO BE SIGNED ON REVERSE SIDE
THIS
PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.
iFRESH
INC.
THE
BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” ITEMS 1, 2, AND 3 AND A VOTE OF HAVING THE NON-BINDING ADVISORY VOTE ON
EXECUTIVE COMPENSATION TO OCCUR EVERY THREE YEARS ON ITEM 4.
Proposal
No. 1
Nominees:
|
For
|
Withhold
|
|
|
|
Long Deng
|
☐
|
☐
|
Lilly Deng
|
☐
|
☐
|
Harvey Leibowitz
|
☐
|
☐
|
Mark Fang
|
☐
|
☐
|
Xing Xie
|
☐
|
☐
|
Proposal No. 2
|
For
|
Against
|
Abstain
|
|
|
|
|
To ratify the appointment
of Friedman LLP as our independent auditor to audit the financial statements for the fiscal year ended on March 31, 2019.
|
☐
|
☐
|
☐
|
|
|
|
|
Proposal No. 3
|
For
|
Against
|
Abstain
|
|
|
|
|
To approve, by a
non-binding vote, the Company’s executive compensation.
|
☐
|
☐
|
☐
|
Proposal No. 4
|
1
Year
|
2
Years
|
3
Years
|
Abstain
|
|
|
|
|
|
To approve, by a
non-binding vote, the frequency of future Stockholder advisory votes relating to the Company’s executive compensation.
|
☐
|
☐
|
☐
|
☐
|
The
shares represented by this proxy, when properly executed, will be voted in the manner directed herein by the undersigned Shareholder(s).
If
no direction is made, this proxy will be voted FOR each of the nominees on proposal No. 1, FOR each proposal No. 2, and No. 3
voted to have the non-binding advisory votes on the executive compensation occur every THREE years with respect to proposal No.
4.
Please
sign your name exactly as it appears hereon. When signing as Attorney, executor, administrator, trustee or guardian, please add
your title as such. When signing as joint tenants, all parties in the joint tenancy must sign. If a signer is a corporation, please
sign in full corporate name by duly authorized officer.
|
|
|
|
|
|
|
Signature (Please Sign Within Box)
|
|
Date
|
|
Signature (Joint Owners)
|
|
Date
|
THIS
PROXY WILL BE VOTED IN ACCORDANCE WITH THE SPECIFIC INDICATION ABOVE. IN THE ABSENCE OF SUCH INDICATION, THIS PROXY WILL BE VOTED
FOR ALL OF THE BOARD’S NOMINEES FOR ELECTION TO THE BOARD OF DIRECTORS AND, AT THE DISCRETION OF THE PROXY HOLDER, ON ANY
OTHER MATTERS THAT MAY PROPERLY COME BEFORE THE ANNUAL MEETING OR ANY POSTPONEMENT OR ADJOURNMENT THEREOF.
Dated:
_______________________________
|
|
|
Signature of Stockholder
|
|
|
|
|
|
PLEASE PRINT NAME
|
|
|
|
|
|
Certificate Number(s)
|
|
|
|
|
|
Total Number of Shares Owned
|
Sign
exactly as your name(s) appears on your stock certificate(s). A corporation is requested to sign its name by its President or
other authorized officer, with the office held designated. Executors, administrators, trustees, etc., are requested to so indicate
when signing. If a stock certificate is registered in two names or held as joint tenants or as community property, both interested
persons should sign.
PLEASE
COMPLETE THE FOLLOWING:
I
plan to attend the Annual Meeting (Circle one): Yes No
Number
of attendees: ____________
PLEASE
NOTE:
STOCKHOLDER
SHOULD SIGN THE PROXY PROMPTLY AND RETURN IT IN THE ENCLOSED ENVELOPE AS SOON AS POSSIBLE TO ENSURE THAT IT IS RECEIVED BEFORE
THE ANNUAL MEETING. PLEASE INDICATE ANY ADDRESS OR TELEPHONE NUMBER CHANGES IN THE SPACE BELOW.
iFresh (NASDAQ:IFMK)
Historical Stock Chart
From Mar 2024 to Apr 2024
iFresh (NASDAQ:IFMK)
Historical Stock Chart
From Apr 2023 to Apr 2024