v3.26.1
INCOME TAXES
 3 Months Ended
Feb. 28, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 7 – INCOME TAXES

 

The components of the Company’s provision for federal income tax for the three months ended February 28, 2026 and the year ended November 30, 2025 consists of the following:

        
  

February 28,

2026

  

November 30,

2025

 
Federal income tax benefit attributable to:          
Current operations  $768,009   $564,891 
Less: valuation allowance   (768,009)   (564,891)
Net provision for federal income taxes  $–   $– 

 

The cumulative tax effect at the expected rate of 21% of significant items comprising our net deferred tax amount is as follows:

        
  

February 28,

2026

  

November 30,

2025

 
Deferred tax asset attributable to:          
Net operating loss carryover  $161,282   $118,627 
Less: valuation allowance   (161,282)   (118,627)
Net deferred tax asset  $–   $– 

 

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $768,009 as of February 28, 2026, for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.

 

For the fiscal year ended February 28, 2026, taxable income/loss and accrued income taxes by jurisdiction are as follows:

Schedule of income taxes by jurisdiction  For the year ended February 28, 2026 
Jurisdiction  Taxable Income/Loss (USD)   Accrued Income Taxes (USD) 
Hong Kong (Mei Sheng Corporation Limited)  $16,616   $1,371 
United States (Ankam LLC, Apex Intelligence LLC, Ankam, Inc.)  $(784,625)  $– 
Total  $(768,009)  $1,371 

 

Note: The Hong Kong profits tax for Mei Sheng Corporation Limited is calculated at 8.25% on the first HKD 2,000,000 (equivalent to approximately USD 257,353) of taxable income, resulting in an accrued tax amount of $1,371. As the company’s financial year-end in Hong Kong is March 31, this tax amount has not yet been settled as of the end of the reporting period (February 28, 2026). The company’s taxable income of $16,616 does not exceed HKD 2,000,000, so no additional tax is required. The three U.S. entities generated a combined net operating loss of $784,625, paid no income taxes, and recorded a full valuation allowance.

 

Reconciliation of Effective Income Tax Rate

                    
Item  Domestic
($)		   Foreign
($)		   Total Amount
($)		   % of Income (Loss) Before Income Taxes 
Tax at U.S. federal statutory rate   -2,766    -39,889    -42,655    21.00% 
Foreign tax rate differential   –    24,218    24,218    -11.92% 
Effect of not recognizing deferred tax assets on tax losses   2,766    15,671    18,437    -9.08% 
Effective income tax expense   –    –    –    – 

 

Note: The reconciliation above presents the difference between the U.S. federal statutory income tax rate of 21% and the Company’s effective income tax rate for the three months ended February 28, 2026.

 

The United States (Domestic) column represents the tax positions of Ankam LLC, Apex Intelligence LLC, and Ankam, Inc. The Foreign (Hong Kong) column represents the tax position of Mei Sheng Corporation Limited, which is subject to Hong Kong profits tax at a statutory rate of 8.25% on the first HKD 2,000,000 of taxable income.

 

The foreign income tax rate differential reflects the impact of the lower Hong Kong statutory tax rate relative to the U.S. federal statutory rate. The valuation allowance relates to the full recognition of a valuation allowance against deferred tax assets for net operating losses of the U.S. entities, as management has determined that it is more likely than not that such deferred tax assets will not be realized in future periods.