INCOME TAXES |
3 Months Ended | ||||||||||
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May 31, 2026 | |||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||
| INCOME TAXES | NOTE 6 – INCOME TAXES
The Company accounts for income taxes under ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the periods in which the temporary differences reverse. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized.
For the three months ended May 31, 2026, the Company recorded no income tax expense or benefit. Although the Company incurred a pretax loss during the quarter, no tax benefit was recognized because management continues to maintain a full valuation allowance against its deferred tax assets.
At May 31, 2026, the Company's principal deferred tax asset consisted primarily of federal net operating loss carryforwards. Management believes it remains more likely than not that these deferred tax assets will not be realized and, accordingly, a full valuation allowance has been recorded.
Effective Tax Rate Reconciliation
The Company's effective tax rate differs from the U.S. statutory rate primarily due to the establishment and maintenance of a full valuation allowance against deferred tax assets.
The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. As of May 31, 2026, the Company had no unrecognized tax benefits and had not accrued any interest or penalties related to uncertain tax positions. The Company remains subject to examination by taxing authorities for the applicable statutory periods.
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