v3.25.2
Income Taxes
 12 Months Ended
Mar. 31, 2025
Income Taxes [Abstract]  
INCOME TAXES

NOTE 9 — INCOME TAXES

 

The Company’s provision (benefit) for income taxes consists of the following United States federal and state components:

 

       For the 
       Period from 
       September 21, 
       2023 
   For the   (Inception) 
   Year Ended   Through 
   March 31,
2025		   March 31,
2024		 
Current:        
Federal  $
-
   $
-
 
State   
-
    
-
 
           
Deferred:          
Federal   (69,325)   (30,661)
State   (14,343)   (6,344)
    (83,668)   (37,005)
Change in valuation allowance   83,668    37,005 
Income tax provision (benefit)  $
-
   $
-
 

The deferred tax expense (benefit) is the change in the deferred tax assets and liabilities representing the tax consequences of changes in the amounts of temporary differences, net operating loss carryforwards and changes in tax rates during the year. The Company’s deferred tax assets and liabilities are comprised of the following:

 

   March 31,
2025		   March 31,
2024		 
Deferred tax assets:        
Net operating loss carryforwards  $121,808   $30,003 
Fixed assets and intangible assets   
-
    6,376 
Deferred rent   
-
    626 
Total deferred tax assets   121,808    37,005 
           
Deferred tax liabilities:          
Fixed assets and intangible assets   (1,135)   
-
 
Total deferred tax liabilities   (1,135)   
-
 
           
Valuation allowance   (120,673)   (37,005)
           
Total deferred tax assets (liabilities)  $
-
   $
-
 

 

As of March 31, 2025, the Company had U.S. federal net operating loss carryforwards of $480,602, all of which do not expire and are limited to 80% of taxable income in the year utilized. These net operating loss carryforwards may be used to offset future taxable income and thereby reduce the Company’s U.S. federal income taxes. Section 382 of the Internal Revenue Code of 1986 (the “Code”) imposes an annual limit on the ability of a corporation that undergoes a greater than 50% ownership change to use its net operating loss carry forwards to reduce its tax liability. If in the future the Company issues common stock or additional equity instruments convertible in common shares which result in an ownership change exceeding the 50% limitation threshold imposed by Section 382 of the Code, the Company’s net operating loss carryforwards may be significantly limited as to the amount of use in a particular year.

 

For U.S. purposes, the Company has not completed its evaluation of NOL utilization limitations under Internal Revenue Code, as amended (the “Code”) Section 382/383, change of ownership rules. If the Company has had a change in ownership, the NOL’s would be limited as to the amount that could be utilized each year, based on the Code or might be eliminated.

 

The Company has provided a full valuation allowance against its net deferred tax assets, since in the opinion of management based upon the earnings history of the Company; it is more likely than not that the benefits of these assets will not be realized.

 

The Company complies with the provisions of FASB ASC 740-10 in accounting for its uncertain tax positions. ASC 740-10 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely that not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Management has determined that the Company has no significant uncertain tax positions requiring recognition under ASC 740-10.

 

The Company is subject to income tax in the U.S., and certain state jurisdictions. The Company has not been audited by the U.S. Internal Revenue Service, or any states in connection with income taxes. The Company’s tax years generally remain open to examination for all federal and state tax matters until its net operating loss carryforwards are utilized and the applicable statutes of limitation have expired. The federal and state tax authorities can generally reduce a net operating loss (but not create taxable income) for a period outside the statute of limitations in order to determine the correct amount of net operating loss which may be allowed as a deduction against income for a period within the statute of limitations.

The Company recognizes interest and penalties related to unrecognized tax benefits, if incurred, as a component of income tax expense.

 

The significant elements contributing to the difference between income taxes at the effective United States federal statutory tax rate of 21% and the Company’s effective tax rate are as follows:

 

       For the 
       Period from 
       September 21, 
       2023 
   For the   (Inception) 
   Year Ended   Through 
   March 31,
2025		   March 31,
2024		 
Income taxes expense (benefit) at the US federal statutory rate   (21.0)%   (21.0)%
State tax rate, net of federal benefit   (4.3)%   (4.3)%
Other   0.1%   0.3%
Change in valuation allowance   25.2%   25.0%
           
Income tax provision (benefit)   
-
%   
-
%