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Acquisition of Subsidiary | 9 Months Ended
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Jan. 31, 2024
Acquisition of Subsidiary [Abstract] |
Acquisition of subsidiary | 18. Acquisition of subsidiary On June 30, 2022, the Company purchased 100% equity interest in GF Supermarket of MP, Inc. (“Maison Monterey Park”), the legal entity holding a supermarket in Monterey Park. Mrs. Grace Xu (spouse of Mr. John Xu, the Company’s Chief Executive Officer, Chairman and President) was a selling shareholder of GF Supermarket of MP Inc. with 49% ownership percentage. Another selling shareholder of GF Supermarket of MP Inc. was DNL Management Inc. with 51% ownership percentage, who is not a related party of the Company. The purchase consideration was $1.5 million. On February 21, 2023, the Company and such selling shareholders renegotiated and entered into an Amended Stock Purchase Agreement with an effective date on October 31, 2022, to amend the purchase price to $2.5 million, which both parties believed reflected the true fair value of Maison Monterey Park. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of Maison Monterey Park is calculated as follows:
Total purchase considerations |  | $ | 2,500,000 |
Fair value of tangible assets acquired: |  |  |  |
Accounts receivable |  |  | 79,651 |
Due from related party |  |  | 25,000 |
Property and equipment |  |  | 448,932 |
Security deposit |  |  | 161,945 |
Inventory |  |  | 872,084 |
Deferred tax asset |  |  | 10,545 |
Operating lease right-of-use assets |  |  | 4,680,216 |
Intangible assets (trademark) acquired |  |  | 194,000 |
Total identifiable assets acquired |  |  | 6,472,373 |
Fair value of liabilities assumed: |  |  |  |
Bank overdraft |  |  | (281,940 | )
Accounts payable |  |  | (865,769 | )
Contract liabilities |  |  | (10,369 | )
Income tax payable |  |  | (183,262 | )
Accrued liability and other payable |  |  | (85,789 | )
Tenant Security deposit |  |  | (32,200 | )
Operating lease liabilities |  |  | (4,680,967 | )
Deferred tax liability |  |  | (54,288 | )
Total liabilities assumed |  |  | (6,194,584 | )
Net identifiable assets acquired |  |  | 277,789 |
Goodwill as a result of the acquisition |  | $ | 2,222,211 |
The following condensed unaudited pro forma consolidated results of operations for the Company for the nine months ended January 31, 2023 present the results of operations of the Company and Maison Monterey Park as if the acquisitions occurred on May 1, 2022, respectively. The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisitions been completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results.
|  | For the Nine Months Ended January 31, 2023 |
|  | (Unaudited) |
Revenue |  | $ | 44,038,436 |
Operating costs and expenses |  |  | 43,633,975 |
Income from operations |  |  | 404,461 |
Other income |  |  | 1,337,288 |
Income tax expense |  |  | (286,445 | )
Net income |  | $ | 1,455,304 |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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