v3.26.1
Discontinued Operations
 12 Months Ended
Apr. 30, 2026
Discontinued Operations [Abstract]  
DISCONTINUED OPERATIONS

NOTE 3 — DISCONTINUED OPERATIONS

 

On October 27, 2025, Marwynn entered into a Securities Purchase Agreement with Reli Home Décor Inc., solely for the purposes of selling all of the shares it owns in its wholly owned subsidiary Grand Forest. Pursuant to the Purchase Agreement, the Company has agreed to sell all 70,000 shares of common stock of Grand Forest that it owns to the Buyer for an aggregate cash purchase price of $550,000. The transaction was closed on December 22, 2025. The Company recorded $226,381 gain on disposal of the subsidiary, which was different between the selling price of $550,000 and the carrying value of the net assets of $323,619 of the disposal entity. As of April 30, 2026, the Company received total payment of $550,000.

 

The Consolidated Balance Sheet and Consolidated Statements of Operations, and the notes to the Consolidated Financial Statements, were retroactively reclassified for all periods presented to reflect the discontinuation of Grand Forest in accordance with FASB ASC 205.

 

The following table summarizes the carrying value of the assets and liabilities of the disposed group as of December 22, 2025 and April 30, 2025.

 

    As of
December 22,
2025
(unaudited)		     As of
April 30,
2025
(unaudited)		  
ASSETS            
Cash and Cash Equivalents   $ 195,324     $ 390,865  
Account receivables, net     858,242       873,431  
Inventories, net     5,332,898       4,784,269  
Prepaid expenses and other current assets     295,338       263,887  
Total current assets     6,681,802       6,312,452  
                 
Deferred tax assets, net     249,769       249,769  
Property and equipment, net     164,379       252,809  
Operating lease right-of-use assets, net     2,841,442       3,753,656  
Finance lease right-of-use assets, net     41,768       54,253  
Total non-current assets     3,297,358       4,310,487  
                 
TOTAL ASSETS   $ 9,979,160     $ 10,622,939  
                 
LIABILITIES                
Short-term loan payable   $ 100,000     $ 100,000  
Account Payable     5,213,167       3,875,088  
Accrued expenses and other current liabilities     679,840       883,369  
Operating lease liabilities – current     997,311       922,247  
Financing lease liability –  current     10,465       12,249  
Income tax payable     74,751       50,019  
Auto loan payable - current     9,581       12,547  
Due to related parties     4,698       683,662  
Total current liabilities     7,089,813       6,539,181  
                 
Operating lease liabilities – non-current     2,500,340       3,107,642  
Finance lease liabilities – non-current     32,368       45,940  
Auto loan payable – non-current     33,020       33,518  
Total non-current liabilities     2,565,728       3,187,100  
                 
TOTAL LIABILITIES   $ 9,655,541     $ 9,726,281  

 

The following table presents the components of discontinued operations reported in the consolidated statements of operations for the periods from May 1, 2025 to December 22, 2025 and for the year ended April 30, 2025 (unaudited):

 

    For the
period from
May 1,
2025
to
December 22,
2025		     For the
year
ended
April 30,
2025		  
Revenue, net   $ 6,702,808     $ 10,301,027  
                 
Cost of revenue     (4,437,066 )     (5,973,905 )
                 
Gross profit     2,265,742       4,327,122  
                 
Operating expenses:                
Selling expenses     (544,246 )     (465,598 )
General & administrative expenses     (2,156,748 )     (3,872,822 )
Total operating expenses     (2,700,994 )     (4,338,420 )
                 
Loss from operations     (435,252 )     (11,298 )
                 
Other income (expenses):                
Other income (expenses)     (1,770 )     1,128  
Impairment loss     (413,512 )     -  
Gain on disposal     226,381       -  
Interest expense     (4,140 )     (31,906 )
Total other expenses, net     (193,040 )     (30,778 )
                 
Loss before income tax expense     (628,293 )     (42,076 )
                 
Income tax provision     (18,363 )     9,103  
                 
Net loss from discontinued operations, net of tax   $ (646,656 )   $ (32,973 )