Note 16. Investment in Joint Venture

As mentioned in Note 1, the Company has an investment in a Joint Venture. VML has 49% ownership and does not have control over the Joint Venture, therefore, the investment has been accounted for using the equity method.

As of March 31, 2026, the Joint Venture had total assets of $291,064, total liabilities of $344,488, and total deficit of $(53,424).

As of March 31, 2025, the Joint Venture had total assets of $287,330, total liabilities of $344,488, and total deficit of $(57,158).

For the fiscal year ended March 31, 2026, the Joint Venture had operating revenue of $0, cost of goods sold of $0, operating costs of $143, and net loss of $143. Under the equity method, net loss attributable to the Company was $0, resulting in a share of loss in joint venture of $70 in the consolidated statement of operations for the fiscal year ended March 31, 2026.

For the fiscal year ended March 31, 2025, the Joint Venture had operating revenue of $54,027, cost of goods sold of $36,801, operating costs of $47,732, and net loss of $30,506. Under the equity method, net loss attributable to the Company was $14,948, resulting in a share of loss in joint venture of $14,948 in the consolidated statement of operations for the fiscal year ended March 31, 2025.

During the years ended March 31, 2026 and 2025, the following related party transaction occurred: the Company’s China subsidiary had sales to Heroix of $0 and $42,754, respectively. As of March 31, 2026 and 2025, respectively, the Company’s China subsidiary had no accounts receivable from Heroix and had no accounts payable to Heroix, and held prepayments from Heroix for unshipped orders of $0 and $7,293.