NOTE 4 - DISCONTINUED OPERATIONS

3 Months Ended

Jul. 31, 2020

Notes

NOTE 4 - DISCONTINUED OPERATIONS

NOTE 4 - DISCONTINUED OPERATIONS

On July 30, 2019, Qufu Natural Green entered into an Asset Transfer Agreement with Na Li, an unaffiliated individual (the "Buyer") for the sale of 100% equity ownership of Qufu Shengwang. Pursuant to the Asset Transfer Agreement, the Buyer shall pay to Qufu Natural Green a total cash consideration of RMB8,000,000 (approximately $1,163,000) based on the estimated net book value as of July 30, 2019. The Buyer assumed all assets and liabilities of Qufu Shengwang including the amount of Qufu Shengwang owes to Qufu Natural Green of approximately RMB26,000,000 (approximately $3,779,000), and Qufu Natural Green shall assist in completing all documents required for the equity transfer after confirming the receipt of the first payment. The Company received the first installment of RMB5,000,000 on July 30, 2019, and received the second installment of RMB3,000,000 on August 20, 2019. The Buyer settled all liabilities of Qufu Shengwang due to Natural Green by assuming the liabilities on behalf of Qufu Shengren in the amount of approximately RMB 26,000,000 (approximately $3,779,000) due to another third party.

The Company did not have assets and liabilities on discontinued operations in the Company's condensed consolidated financial statements as of July 31, 2020 and April 30, 2020. The following table presents the results of discontinued operations in the three months ended July 31, 2020 and 2019:

	For the Three Months Ended July 31,
	2020	2019
Revenues	$0	$733,441
Cost of revenues	0	572,357
Gross profit	0	161,084
Operating expenses	0	172,142
Other income, net	0	8,958
Loss before income taxes	0	20,016
Income tax expense	0	0
Loss from discontinued operations	0	20,016
Loss from disposal, net of taxes	0	233,415
Total loss from discontinued operations	$0	$253,431

For the three months ended July 31, 2020 and 2019, loss from discontinued operations amounted to $0 and $20,016. The Company realized a loss of $233,415 from the disposal of 100% equity of Qufu Shengwang, which was reflected as loss from sale of discontinued operations on the condensed consolidated statement of operations for the three months ended July 31, 2019.