v3.26.1
Income Tax
 12 Months Ended
Mar. 31, 2026
Income Tax [Abstract]  
INCOME TAX

NOTE 10. INCOME TAX

 

    March 31,
2026		     March 31,
2025		  
Deferred tax assets:            
Startup/Organization Costs   $ 83,045     $ 206,552  
Net operating loss     -       -  
Total deferred tax assets   $ 83,045     $ 206,552  
Valuation allowance   $ (83,045 )     (206,552 )
Deferred tax asset, net of allowance   $ -     $ -  

 

The income tax benefit (provision) consists of the following:

 

    For the year
ended
March 31,
2026		     For the year
ended
March 31,
2025		  
Current            
Federal   $ 2,076       83,453  
State     978       39,303  
Deferred     -       -  
Federal     (62,040 )     (154,308 )
State     (21,005 )     (52,244 )
Valuation allowance     83,045       206,552  
Penalty and interest     14,268       -  
Income tax provision   $ 17,322       122,756  

 

In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion or 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. The change in the valuation allowance was $(83,045) and $(206,552) for the year ended March 31, 2026 and 2025, respectively.

 

A reconciliation of the federal income tax rate to the Company’s effective tax rate at March 31, 2026 and 2025 is as follows：

 

    For the year
ended
March 31,
2026		     For the  year
ended
March 31,
2025		  
Statutory federal income tax rate     21.00 %     21.00 %
State taxes, net of federal benefit     7.11 %     7.11 %
Change in fair value of warrant liability     0.61 %     1.26 %
Merger costs     (4.29 )%     -  
Change in valuation allowance     (25.36 )%     (72.38 )%
Penalty and interest     (4.36 )%     -  
Income Taxes Provision (Benefit)     (5.29 )%     (43.02 )%

 

The effective tax rate differs from the federal and state statutory rate of 21% and 9% for the year ended March 31, 2026 and 2025, due to the valuation allowance recorded on the Company’s net operating losses, as well as the change in the fair value of warrant liability, change in valuation allowance, penalty and interest, and state income taxes net of federal benefit.

 

The Company files income tax returns in the U.S. federal jurisdiction and New Jersey. The Company’s tax returns for the year ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022, remain open and subject to examination. The Company has filed tax returns for the calendar years 2024, 2023 and 2022.