v3.25.2
NOTE 10 – INCOME TAXES
 12 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
NOTE 10 – INCOME TAXES

NOTE 10 – INCOME TAXES

 

Income tax expense differs from the amount that would result from applying the federal income tax rate to earnings before income taxes. Reconciliations of the U.S. federal statutory rate to the actual tax rate are as follows for the years ended March 31, 2025 and 2024: 

Reconciliation Of The Income Tax Provision

 

2025

2024

Federal tax benefit at statutory rate

21.0%

21.0%

Permanent differences

(1.3)%

(1.3)%

Temporary differences

 

 

Accounts payable and accrued liabilities

(0.1)%

(0.1)%

Other

1.7%

(15.5)%

Change in valuation allowance

(21.3)%

(4.1)%

Total provision

0.0%

0.0%

 

The composition of the Company’s deferred tax assets as of March 31, 2025 and 2024 is as follows: 

Deferred Income Tax Assets And Liabilities

 

 

 

 

 

 

 

 

Asset (Liability)

 

 

2025

 

 

2024

 

Other

$

661,437

 

$

581,500

 

Net operating loss carryforwards

 

       921,217

 

 

464,100

 

Valuation allowance

 

(1,582,654

)

 

(1,045,600

)

Net deferred tax asset

$

—

 

$

—

 

 

The valuation allowance increased by $537,054 and $685,400 during the years ended March 31, 2025 and 2024 respectively.    

 

The Company had a net operating loss carryforward balance of approximately $4,386,748 as of March 31, 2025. The Company’s net operating losses have expiration dates ranging from 2025 to 2039. Net operating loss carryforwards generated in 2018 and later have indefinite carryforward periods. The future utilization of the net operating losses may potentially be impacted by IRS Section 382 limitations as a result of the significant change in ownership resulting from the November 15, 2021 Asset Purchase Agreement discussed in Note 6.

 

The Company’s recognized and unrecognized deferred tax assets related to unused tax losses. A full valuation allowance has been recorded against the potential deferred tax assets associated with all the loss carryforwards as their utilization is not considered “more likely than not” at this time.