v3.26.1
Income Taxes
 12 Months Ended
Feb. 28, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
12.
Income Taxes
 
The potential benefit of net operating losses for the Company have not been recognized in the consolidated financial statements because the Company cannot be assured that it is more likely than not that it will utilize the net operating losses carried forward in future years. The Company did not incur any income tax expense to the Internal Revenue Services for the years ended February 28, 2026 and 2025. Rent Pay incurred an income tax expense of $nil for the year ended February 28, 2026 (2025 – $nil). Given the short history of the Company and the uncertainty as to the likelihood of future taxable income, the Company has recorded a 100% valuation reserve against the anticipated recovery from the use of the net operating losses. The Company will evaluate the appropriateness of the valuation allowance on an annual basis and adjust the allowance as considered necessary. The Company’s US net operating loss is approximately $1,392,000 (2025 – $1,210,000) at February 28, 2026, which starts to expire in 2037.
 
The table below reconciles the US federal income tax rate to the effective rate for the years ended February 28, 2026 and 2025.
 
Income Tax at Statutory Rate
 
 
(21
)%
Effect of Operating Losses
 
 
21
%
Foreign Income Tax
 
 
18
%
 
 
 
18
%
 
A reconciliation of the Company’s effective tax rate as a percentage of income before taxes and federal statutory rate for the years ended February 28, 2026 and 2025, is summarized as follows:
 
 
 
2026
$
 
 
 
 
2025
$
 
 
 
 
 
 
 
 
 
Loss before income taxes
 
 
(1,406,623
)
 
 
(540,062
)
 
 
 
 
 
 
 
 
 
Income tax recovery at statutory rates
 
 
(295,000
)
 
 
(114,000
)
Permanent differences
 
 
190,000
 
 
 
–
 
Temporary differences
 
 
1,000
 
 
 
2,000
 
Change in statutory, foreign tax, foreign exchange rates and other
 
 
104,000
 
 
 
112,000
 
 
 
 
 
 
 
 
 
 
Income tax expenses
 
 
–
 
 
 
–
 
 
The unrecognized deferred tax assets include US net operating losses as follows:
 
 
 
2026
$
 
 
 
 
2025
$
 
 
 
 
 
 
 
 
 
Deferred tax assets:
 
 
 
 
 
 
 
 
Non-capital losses available for future periods
 
 
292,000
 
 
 
254,000
 
Valuation allowance
 
 
(292,000
)
 
 
(254,000
)
 
 
 
 
 
 
 
 
 
Deferred income taxes recovered
 
 
–
 
 
 
–
 
 
The Company has US net operating losses available to offset future taxable income as follows:
 
2016
 
$
35,000
 
2017
 
 
78,000
 
2018
 
 
71,000
 
2019
 
 
6,000
 
2020
 
 
5,000
 
2021
 
 
130,000
 
2022
 
 
431,000
 
2023
 
 
109,000
 
2024
 
 
135,000
 
2025
 
 
210,000
 
2026
 
 
182,000
 
 
 
$
1,392,000