Income Taxes

6 Months Ended

Oct. 31, 2025

Income Taxes [Abstract]

Income Taxes

18. Income taxes

Maison is a Delaware holding company that is subject to the U.S. income tax of 21%. Maison Monrovia and Maison San Gabriel are pass through entities whose income or losses flow through Maison Solution’s income tax return. Maison El Monte and Maison Monterey Park are Subchapter C corporation (“C-Corp”) incorporated in the state of California, are subject to U.S. income tax of 21% and California state income tax of 8.84%. Lee Lee was a Subchapter S corporation (“S-Corp”) incorporated in the state of Arizona prior to the acquisition by Maison, and was converted into a Limited Liability Company (“LLC”) on June 10, 2024. Both the S-Corp and LLC are pass through entities whose income or losses flow through Maison Solution’s income tax return.

The provision for income taxes provisions consisted of the following components:

	Three Months ended October 31, 2025			Three Months ended October 31, 2024
Current:
Federal income tax expense (benefit)	$	(103,835	)	$	460,550
State income tax expense		47,197			124,041
Deferred:
Federal income tax benefit		(29,456	)		(19,175	)
State income tax benefit		(2,582	)		(4,431	)
Total	$	(88,676	)	$	560,985

	Six Months ended October 31, 2025			Six Months ended October 31, 2024
Current:
Federal income tax expense	$	214,535		$	963,661
State income tax expense		132,906			267,168
Deferred:
Federal income tax benefit		(110,149	)		(33,736	)
State income tax benefit		(5,425	)		(7,328	)
Total	$	231,867		$	1,189,765

The following is a reconciliation of the difference between the actual (benefit) provision for income taxes and the (benefit) provision computed by applying the federal statutory rate on income (loss) before income taxes:

	Three Months ended October 31, 2025			Three Months ended October 31, 2024
Federal statutory rate expense (benefit)		(1,113,336	)		104,754
State statutory rate, net of effect of state income tax deductible to federal income tax		(380,340	)		(13,445	)
Permanent difference – penalties, interest, and others		10,584			21,719
Change in valuation allowance *		1,394,416			447,957
Tax expense (benefit) per financial statements		(88,676	)		560,985

* excludes the amount of Maison El Monte due to discontinued operation presentation

	Six Months ended October 31, 2025			Six Months ended October 31, 2024
Federal statutory rate expense (benefit)		(1,220,563	)		460,517
State statutory rate, net of effect of state income tax deductible to federal income tax		(444,954	)		36,260
Permanent difference – penalties, interest, and others		25,162			34,611
Change in valuation allowance *		1,872,222			658,377
Tax expense per financial statements		231,867			1,189,765

* excludes the amount of Maison El Monte due to discontinued operation presentation

Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred taxes were comprised of the following:

	October 31, 2025			April 30, 2025
Deferred tax assets:
Bad debt expense	$	75,141		$	75,141
Inventory impairment loss		134,326			78,988
Investment loss		532,391			294,983
Unrealized loss on digital assets		246,897			-
Loss on note convertible		754,047			-
Lease liabilities, net of ROU		854,163			796,543
NOL		1,385,399			871,411
Valuation allowance		(3,861,995	)		(2,079,374	)
Deferred tax assets, net	$	120,369		$	37,692
Deferred tax liability:
Trademark acquired at acquisition of Maison Monterey Park and Lee Lee	$	1,188,708		$	1,221,606
Deferred tax liability, net of deferred tax assets	$	1,068,339		$	1,183,914

As of October 31, 2025 and April 30, 2025, Maison and Maison El Monte had approximately $5.41 million and $2.05 million, respectively, of U.S. federal NOL carryovers available to offset future taxable income which do not expire but are limited to 80% of income until utilized. As of October 31, 2025 and April 30, 2025, Maison and Maison El Monte had approximately $6.08 million and $3.20 million, respectively, of California state net operating loss which can be carried forward up to 20 years to offset future taxable income. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends upon the Company’s future generation of taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. After consideration of all the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance.

As of October 31, 2025, the Company’s U.S. income tax returns filed for the year ending on December 31, 2021 and thereafter are subject to examination by the relevant taxation authorities.