v3.25.2
Income Tax
 12 Months Ended
Mar. 31, 2025
Income Tax [Abstract]  
INCOME TAX

NOTE 10. INCOME TAX

 

   March 31,
2025		   March 31,
2024		 
Deferred tax assets:          
Startup/Organization Costs  $206,552   $387,896 
Net operating loss   
-
    
-
 
Total deferred tax assets  $206,552   $387,896 
Valuation allowance  $(206,552)   (387,896)
Deferred tax asset, net of allowance  $
-
   $
-
 

The income tax benefit (provision) consists of the following:

 

   For the year
ended
March 31,
2025		   For the year
ended
March 31,
2024		 
Current        
Federal  $83,453    148,399 
State   39,303    69,890 
Deferred   -    - 
Federal   (154,308)   (289,784)
State   (52,244)   (98,113)
Valuation allowance   206,552    387,896 
Income tax provision  $122,756    218,289 

 

In assessing the realization of the 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 during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. The change in the valuation allowance was $(181,344) and $(142,246) for the year ended March 31, 2025 and 2024, respectively.

 

A reconciliation of the federal income tax rate to the Company’s effective tax rate at March 31, 2025 and 2024 is as follows：

 

   For the year
ended
March 31,
2025		   For the  year
ended
March 31,
2024		 
Statutory federal income tax rate   21.00%   21.00%
New Jersey statutory rate   7.11%   7.11%
Change in fair value of warrant liability   1.26%   0.34%
Change in valuation allowance   (72.38)%   (65.06)%
Income Taxes Provision (Benefit)   (43.02)%   (36.61)%

 

The effective tax rate differs from the federal and state statutory rate of 21% and 9% for the year ended March 31, 2025 and 2024, due to the valuation allowance recorded on the Company’s net operating losses, as well as the change in the fair value of warrant liability, change in valuation allowance and state income taxes net of federal benefit.

 

The Company files income tax returns in the U.S. federal jurisdiction and New Jersey. The Company’s tax returns for the year ended March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022, remain open and subject to examination. The Company has filed tax returns for the calendar years 2024, 2023 and 2022.