Deferred Tax Assets and Income Tax Provision |
12 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Deferred Tax Assets and Income Tax Provision | |
| Deferred Tax Assets and Income Tax Provision | Note 5 – Deferred Tax Assets and Income Tax Provision
At March 31, 2025, no tax benefit has been recorded with respect to the net operating loss in the accompanying consolidated financial statements as the management of the Company believes that the realization of the Company’s net deferred tax assets would be considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by the full valuation allowance.
Deferred tax assets consist primarily of the tax effect of Net Operating Loss (“NOL”) carry-forwards. The Company estimated the expected income tax benefit from NOL carry-forwards of $1,868,000 and $1,706,000 as of March 31, 2025 and 2024, respectively, of which the Company provided a full valuation allowance of $1,868,000 and $1,706,000, respectively, and thus had a deferred tax asset, net of valuation allowance of $nil as of March 31, 2025 and 2024, respectively. The Company’s blended federal statutory income tax rate was 21% of which a NOL carry-forwards blended rate of 21% offset this rate and thus the effective income tax rate was % nil for all periods presented.
The Company’s income tax filings are subject to audit by various taxing authorities. The Company’s open audit periods include from Inception (April 15, 2021) to the current tax year. |