v3.26.1
Income Taxes
 6 Months Ended
May 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

Note 4 – Income Taxes

 

The Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted on December 22, 2017. The 2017 Tax Act includes a number of changes to existing U.S. income tax laws that affect the Company, most notably a reduction of the top U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017. The 2017 Tax Act also provides for the acceleration of depreciation for certain assets placed in service after September 27, 2017, as well as changes beginning in 2018, including additional limitations on the deductibility of executive compensation and interest.

 

On May 16, 2019, the Company entered into a share exchange agreement which resulted in Hestia Investments, Inc. becoming a wholly owned subsidiary of the Company and the former shareholders Hestia Investments Inc becoming the new majority shareholders of the Company. Prior to this date the Company and Hestia Investments, Inc., have been taxed as separate C-Corporations for federal income tax purposes.

 

The provision (benefit) for income taxes for six months ended May 31, 2026, consists of the following:

    
   May 31,
2025		 
Current:     
Federal  $           – 
State   – 
Total Current  $– 
Deferred:     
Federal  $– 
State   – 
Change in valuation   – 
Total provision (benefit)  $– 

 

The Company, and its subsidiaries have net deferred tax assets resulting from net operating loss (“NOL”) carry forwards. These NOL carry forwards are subject to limitations on their use and availability. Under the 2017 Tax Act, NOL carry forwards can offset only 80% of taxable income in any given tax year and are significantly or completely reduced whenever there is a substantial change in the ownership of the Corporation.

        
   May 31,
2026		   May 31,
2025		 
Net income (loss) before taxes  $(478,971)  $(644,757)
US federal income tax rate   21%    21% 
           
Computed expected tax provision (benefit)   (100,584)   (135,359)
Permanent differences   –    – 
Timing differences   100,584    106,466 
Valuation allowance on NOL carry forwards   –    28,893 
Federal income tax provision  $–   $– 

 

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and, if necessary, in various state and local jurisdictions. All tax years from 2017 to 2024 are subject to examination.