v3.25.3
Income Taxes
 12 Months Ended
Jul. 31, 2025
Income Taxes  
Income Taxes

Note 5. Income Taxes

 

As of July 31, 2025, the Company has deferred tax assets as a result of the net operating losses incurred from inception and non-current asset impairment loss. The resulting deferred tax assets are reduced by a valuation allowance as discussed in Note 2 equal to the deferred tax asset as it is unlikely, based on current circumstances, that the Company will ever realize a tax benefit. Significant components of the Company’s deferred tax assets and as follows as of July 31:

 

 

 

2025

 

 

2024

 

 

 

$

 

 

$

 

Deferred tax assets:

 

 

 

 

 

 

Impairment of royal interests

 

 

 

 

 

-

 

Net operating loss carryforwards

 

 

2,446,660

 

 

 

2,462,240

 

Total deferred tax assets

 

 

2,446,660

 

 

 

2,462,240

 

Valuation allowance

 

 

(2,446,660 )

 

 

(2,462,240 )

 

Deferred tax assets and the corresponding valuation allowances amounted to approximately $2.45 million and $2.46 million as of July 31, 2025 and 2024, respectively.

 

The income tax provision for the year ended July 31, 2025 and 2024 consists of the following:

 

 

 

2025

 

 

2024

 

Federal

 

 

 

 

 

 

Current

 

$-

 

 

$-

 

Deferred

 

 

3,272

 

 

 

(53,089 )

Change in valuation allowance

 

 

(3,272 )

 

 

53,089

 

Income tax provision

 

$-

 

 

$-

 

 

A reconciliation between expected income taxes, computed at the federal income tax rate of 21% applied to the pretax accounting profit(loss), and the income tax net expense included in the consolidated statements of operations for the years ended July 31, 2025 and 2024 is as follows,

 

 

 

2025

 

 

2024

 

Tax at federal statutory rate

 

 

21%

 

 

21%

Change in valuation allowance

 

 

(21 )%

 

 

(21 )%

Effective tax rate

 

 

0%

 

 

0%