v3.26.1
ASSETS AND LIABILITIES RECOGNIZED THROUGH COMMON CONTROL AND PRIOR ACQUISITION
 8 Months Ended
Mar. 31, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ASSETS AND LIABILITIES RECOGNIZED THROUGH COMMON CONTROL AND PRIOR ACQUISITION

10. ASSETS AND LIABILITIES RECOGNIZED THROUGH COMMON CONTROL AND PRIOR ACQUISITION

 

On September 2, 2025, the Company completed the acquisition of GW Reader Holding and its wholly owned subsidiary Willing Read. As the Company and GW Reader Holding were under common control prior to the transaction, this acquisition is accounted for as a common-control transaction under ASC 805-50.

 

GW Reader was not acquired under common control. It was previously acquired by Willing Read on October 17, 2024, in a separate transaction accounted for under the purchase method. Accordingly, the assets and liabilities of GW Reader are not included in the common-control recognition amounts below.

 

In accordance with ASC 805-50, the Company recognized the assets and liabilities of GW Reader Holding and Willing Read at their carrying amounts in the financial statements of the transferring entity at the date of transfer. No goodwill, gain, or loss was recognized in connection with the common-control transaction. Any difference between the consideration transferred and the carrying amounts of the net assets received or liabilities assumed was recorded within equity.

 

The following table summarizes the carrying amounts of assets and liabilities recognized through the common-control transfer (excluding GW Reader):

 

Assets     
Investment in subsidiary  $1,285 
Cash and cash equivalents   10,154 
Other current assets   44,280 
Total assets acquired   55,719 
      
Liability     
Due to related parties  $(167,408)
Total liability assumed   (167,408)
Net liability recognized  $(111,689)

 

The following table summarizes the net liabilities recognized through prior acquisition: 

 

      
Pre-acquisition accumulated deficits of GW Reader  $(334,512)
Goodwill from acquisition  293,498
Net liabilities recognized through prior acquisition  $(41,014)

 

Cash acquired from acquisition of subsidiaries     
      
Cash balance at the beginning of the period – Willing Read  $10,154 
Cash balance at the beginning of the period – GW Reader   19,533 
Cash acquired from acquisition of subsidiaries  $29,687