v3.26.1
TAXES
 7 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
TAXES

NOTE 11. TAXES

 

The Company’s net deferred tax assets are as follows:

 

   As of
December 31,		 
   2025 
Deferred tax assets:     
Start up costs  $51,413 
Total deferred tax assets   51,413 
      
Valuation allowance   (51,413)
      
Deferred tax asset  $— 

 

The income tax provision for the period ended December 31, 2025 consists of the following:

 

   For The Period From May 28, 2025 (inception) through December 31, 2025 
Federal     
Current  $192,677 
Deferred   (51,413)
State and local     
Current   39,865 
Deferred   - 
Change in valuation allowance   51,413 
Income tax provision  $232,542 

 

In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of 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. For the period from May 28, 2025 (inception) through December 31, 2025, the change in the valuation allowance was $51,413.

 

A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:

 

   For The Period From May 28, 2025 (inception) through December 31, 2025 
U.S. federal statutory rate   21.0%
State tax, net of federal tax benefit   4.4%
Non-deductible costs   -%
Valuation allowance   7.2%
Income tax provision   32.6%

 

The effective tax rate differs from the statutory tax rate of 21%, due to the valuation allowance recorded on the Company’s start up costs as well as state tax, net of federal tax benefit. The Company files income tax returns in the U.S. federal jurisdiction and is subject to examination by the various taxing authorities. The Company’s tax returns since inception remain open to examination by the taxing authorities. The Company considers Florida to be a significant state tax jurisdiction.