v3.26.1
Discontinued Operations And Disposals
 3 Months Ended
Mar. 31, 2026
Discontinued Operations And Disposals [Abstract]  
DISCONTINUED OPERATIONS AND DISPOSALS

NOTE 5 – DISCONTINUED OPERATIONS AND DISPOSALS

 

On February 18, 2026, the Company and Wenzhao Lu, the Company’s chairman of the Board of Directors, entered into an Amended and Restated Membership Interest Purchase Agreement (the “Amended MIPA”), pursuant to which the Company sold to Mr. Lu 100% of the membership interests of Avalon RT 9 for $9,000,000.

 

The subsidiary comprises our real property operations segment. As a result of the planned disposition of the subsidiary, the real property operations segment met the criteria under ASC 205-20 to be classified as discontinued operations. Accordingly, the historical results of operations of the real property operations segment have been reflected as discontinued operations in our condensed consolidated financial statement for all periods prior to the Amended MIPA on February 18, 2026. Details of the net loss from discontinued operations were as follows for the three months ended March 31:

 

   2026   2025 
REAL PROPERTY RENTAL REVENUE  $253,839   $349,800 
REAL PROPERTY OPERATING EXPENSES   (153,903)   (280,390)
REAL PROPERTY OPERATING INCOME   99,936    69,410 
OTHER OPERATING EXPENSES:          
Professional fees   45,617    59,364 
Compensation and related benefits   20,932    31,398 
Total Other Operating Expenses   66,549    90,762 
INCOME (LOSS) FROM OPERATIONS   33,387    (21,352)
OTHER (EXPENSE) INCOME          
Interest expense - amortization of debt discount and debt issuance costs   
-
    (29,807)
Interest expense - other   (136,402)   (164,500)
Other income   
-
    228 
Total Other Expense, net   (136,402)   (194,079)
LOSS BEFORE INCOME TAXES   (103,015)   (215,431)
INCOME TAXES   
-
    
-
 
NET LOSS  $(103,015)  $(215,431)

The following table summarizes the assets and liabilities of the discontinued operations:

 

   March 31,
2026		   December 31,
2025		 
ASSETS        
CURRENT ASSETS        
Cash  $
  -
   $258,999 
Rent receivable   
-
    84,898 
Prepaid expense and other current assets   
-
    12,719 
Total Current Assets   
-
    356,616 
NON-CURRENT ASSETS:          
Property and equipment, net   
-
    3,478 
Investment in real estate, net   
-
    6,925,768 
Deferred leasing costs and other non-current assets   
-
    8,523 
Total Non-current Assets   
-
    6,937,769 
Total Assets  $
-
   $7,294,385 
LIABILITIES          
CURRENT LIABILITIES:          
Accrued liabilities and other payables  $
-
   $261,077 
Note payable, net   
-
    5,800,000 
Total Current Liabilities   
-
    6,061,077 
NON-CURRENT LIABILITIES:          
Deferred rental income   
-
    23,515 
Total Non-current Liabilities   
-
    23,515 
Total Liabilities  $
-
   $6,084,592 

 

The above tables exclude intercompany payables that are eliminated within our condensed consolidated balance sheets.