v3.26.1
Income Taxes
 6 Months Ended
Oct. 31, 2025
Income Taxes [Abstract]  
Income taxes

Note 14 – Income taxes

 

(a) Corporate Income Taxes

 

The Company is in Japan and is subject to Japanese national and local income taxes, inhabitant tax, and enterprise tax, which, in the aggregate, represent a statutory income tax rate of approximately 34.6% for the six months ended October 31, 2024 and 2025, respectively.

 

Significant components of the provision for income taxes are as follows:

 

   For the six
months ended
October 31,
2024		   For the six
months ended
October 31,
2025		 
   JPY   JPY   USD 
   (Unaudited)   (Unaudited)   (Unaudited) 
Current income tax expense   
-
    
-
    
-
 
Deferred tax benefit   
-
    
-
    
-
 
Total provision for income taxes   
-
    
-
    
-
 

For the purpose of presentation in the balance sheets, deferred income tax assets and liabilities have been offset. Significant components of deferred tax assets and liabilities are as follows:

 

   As of
April 30,
2025		   As of
October 31,
2025		 
   JPY   JPY   USD 
Deferred tax assets:     

(Unaudited)

  

(Unaudited)

 
Net operating loss carry forward   438,955,724    492,558,887    3,197,396 
Write-off of other receivable   15,005,181    15,005,181    97,405 
Lease liabilities   960,129    5,158,767    33,488 
Write-off of guaranteed money deposited   2,665,941    2,665,941    17,306 
Temporary difference in depreciation   2,555,574    2,606,758    16,922 
Bonus accrual   1,038,980    
-
    
-
 
Deferred government grants   6,226,200    5,534,400    35,926 
Others   1,480,835    385,322    2,501 
Total deferred tax assets   468,888,564    523,915,256    3,400,944 
Less: valuation allowance   (466,899,408)   (518,472,705)   (3,365,614)
Deferred tax assets, net of valuation allowance   1,989,156    5,442,551    35,330 
                
Deferred tax liabilities:               
Right-of-use assets – operating lease   (960,129)   (5,399,600)   (35,051)
Others   (1,029,027)   (42,951)   (279)
Total deferred tax liabilities   (1,989,156)   (5,442,551)   (35,330)
Net deferred tax assets   
-
    
-
    
-
 

 

In assessing the realizability 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 is dependent upon the generation of future taxable income, exclusive of reversing taxable temporary differences, during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment.

 

(b) Consumption tax

 

Consumption tax collected and remitted to tax authorities is excluded from revenue, cost of sales, and expenses in the statements of operations. The Company has been subject to the applicable consumption tax rate of 10%, with an 8% rate applicable to a limited number of exceptions based on the Japanese tax law. For overseas sales, the Company is exempted from paying consumption tax. The Company can deduct its qualified input consumption tax paid when purchasing from suppliers, against the output consumption tax derived from domestic sales. The Company is eligible for consumption tax refund from the tax authorities for excess input consumption tax.