DISCOUNTINUED OPERATIONS

3 Months Ended

Oct. 31, 2025

DISCOUNTINUED OPERATIONS

DISCOUNTINUED OPERATIONS

NOTE 4 – DISCOUNTINUED OPERATIONS

 On July 8, 2025, the Company and RAC Merger LLC (“RAC Merger”) entered into a share purchase agreement in order to sell 100% issued and outstanding shares of RAC Real Estate Acquisition Corp., to RAC Merger for a total purchase amount of $2,374,896. At the time of the transaction, RAC Merger owned 98.5% of the total issued and outstanding shares of the Company. Therefore, in lieu of any cash distribution to RAC Merger as a shareholder of the Company, RAC Merger agreed that its 98.5% interest in the total purchase amount as a shareholder of the Company was satisfied by the assignment of the 100% issued and outstanding shares of RAC Real Estate Acquisition Corp. The remaining shareholders of the Company, which comprised 1.5% of the Company’s issued and outstanding shares as of the date of the transaction, received a cash distribution in the total amount of $35,623, which equals 1.5% of the total purchase amount.

The following is a summary of the assets and liabilities of the Company’s discontinued operations at October 31, 2024:

	October 31,
	2024
Cash	$	12,710
Accounts receivable		188
Homes inventory for sales		1,684,279
Total current assets from discontinued operations		1,697,177
Property and equipment, net		1,971,677
Total assets from discontinued operations	$	3,668,854
Accounts payable and accrued liabilities		13,044
Loan payable - current portion		25,000
Due to My City Builders, Inc.		2,361,742
Due to related parties		1,298,478
Bank borrowings - current portion, net		431,072
Total current liabilities from discontinued operations		4,129,336
Bank borrowings, net		710,438
Loan payable		25,000
Total liabilities from discontinued operations	$	4,864,774

The following is a summary of discontinued operations for the three ended October 31, 2024:

	October 31,
	2024
Revenues
Rental income	$	25,528
Total revenues from discontinued operations		25,528
Operating expenses:
Cost of rental homes		6,593
Depreciation		14,951
General and administrative		7,211
Professional fees		13,520
Total operating expenses from discontinued operations	$	42,275
Loss from discontinued operations		(16,747	)
Other income and expense:
Interest expense		(19,921	)
Total other expenses from discontinued operations	$	(19,921	)
Loss before income taxes		(36,668	)
Income taxes		-
Loss from discontinued operation, net of tax	$	(36,668	)

The following is a summary of discontinued cash flows for the three months ended October 31, 2024:

	October 31,
	2024
Cash Flows from Discontinued Operating Activities:
Net loss	$	(36,668	)
Adjustments to reconcile net loss to net cash used in discontinued operating activities:
Depreciation		14,951
Amortization of debt discount		744
Accounts receivable		2,419
Accounts payable and accrued liabilities		(49,394	)
Homes inventory cost for sales		(71,275	)
Due to related parties		(20,287	)
Net cash used in discontinued operating activities		(159,510	)
Cash Flows from Discontinued Investing Activities:
Payments for construction		(153,435	)
Net cash used in discontinued investing activities		(153,435	)
Cash Flows from Discontinued Financing Activities:
Proceeds from bank borrowing		99,258
Repayment of bank borrowing		(1,798	)
Repayment of loans payable - related party		(28,500	)
Advances from related parties		239,000
Net cash provided by discontinued financing activities		307,960
Net change in cash		(4,985	)
Cash, beginning of period		17,695
Cash, end of period	$	12,710
Supplemental cash flow information
Cash paid for interest	$	25,290
Cash paid for taxes	$	-