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

13. Income Taxes

 

PRC

 

The Company’s subsidiaries incorporated in the PRC are subject to a profits tax rate of 25% for income generated and operation in the country.

 

The full realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to generate taxable income during the carry forward period.

 

Income tax expense (benefits)

 

  

For three months

ended

May 31, 2026

  

For three months

ended

May 31, 2025

 
   $   $ 
Loss before tax   (617,240)   (405,324)
Tax credit calculated at statutory tax rate   (154,310)   (101,331)
Effect of different tax rates   42,963    4,267 
Deferred tax asset not recognized during the year   111,347    100,611 
Total income tax expense   -    3,547 

 

As of May 31, 2026 and February 28, 2026, the significant components of the deferred tax assets and deferred tax liabilities are summarized below:

 

   May 31, 2026   February 28, 2026 
   $   $ 
Deferred tax assets:           
Net operating loss carrying forward   5,633,915    5,456,466 
Allowance on doubtful accounts   614,075    606,227 
Deferred tax assets, gross   6,247,990    6,062,693 
Less: valuation allowance   (6,247,990)   (6,062,693)
Deferred tax assets, net   -    - 

 

The Company accounts for income taxes using the asset/liability method prescribed by ASC 740 Income Taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profits will be available against which the Company can utilize the benefits.

 

Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets.