Marwynn Holdings, Inc. Debt Disclosure
NOTE 10 — AUTO LOAN PAYABLES
On August 7, 2019, the Company entered a loan agreement with an auto dealer to purchase a vehicle. The loan has a maturity date on August 21, 2025 and bears interest at a rate of 4.79% per annum, payable monthly from September 21, 2019. During the years ended April 30, 2025 and 2024, the company repaid $7,928 and $9,361 (including principal and interest) for this loan. As of April 30 2025 and 2024, the outstanding balance for this loan was $2,966 and $10,895, respectively.
On October 25, 2022, the Company entered a loan agreement with another auto dealer to purchase a vehicle. The loan has a maturity date on November 9, 2025 and bears interest at a rate of 9.79% per annum, payable monthly from December 9, 2022. During the years ended April 30, 2025 and 2024, the Company repaid $24,970 and $15,190 (including principal and interest) for this loan. At January 27, 2025, the Company repaid this loan in full. As of April 30, 2025 and 2024, the outstanding balance for this loan was and $24,970, respectively.
On October 4, 2024, the Company entered a loan agreement with another auto dealer to purchase a vehicle. The loan has a maturity date on October 10, 2029 and bears interest at a rate of 6.75% per annum, payable monthly from October 10, 2024. During the years ended April 30, 2025 and 2024, the Company repaid $4,791 and (including principal and interest) for this loan. As of April 30, 2025, the outstanding balance for this loan was $43,099.
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.