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INCOME TAXES
 12 Months Ended
May 31, 2025
INCOME TAXES  
INCOME TAXES

 NOTE 7 – INCOME TAXES

 

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

 

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of May 31, 2025 and 2024, are as follows:

 

 

 

May 31,

 

 

May 31,

 

 

 

2025

 

 

2024

 

Net operating loss carryforward

 

$(12,170,982)

 

$(9,232,614)

Statutory tax rate

 

 

21%

 

 

21%

Deferred tax asset

 

 

(2,555,906)

 

 

(1,938,849)

Less: Valuation allowance

 

 

2,555,906

 

 

 

1,938,849

 

Net deferred asset

 

$-

 

 

$-

 

 

As of May 31, 2025 and 2024, the Company had approximately 12.2 and $9.20 million in net operating losses (“NOLs”), respectively that may be available to offset future taxable income, which begin to expire between 2038 and 2040. NOLs generated in tax years prior to May 31, 2019 can be carryforward for twenty years, whereas NOLs generated after May 31, 2019 can be carryforward indefinitely. In accordance with Section 382 of the U.S. Internal Revenue Code, the usage of the Company’s net operating loss carry forwards is subject to annual limitations following greater than 50% ownership changes. Tax returns for the years ended 2021 through 2023 are subject to review by the tax authorities.