v3.26.1
Note 6 - Income Taxes
 12 Months Ended
Apr. 30, 2026
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

NOTE 6 - INCOME TAXES

 

There was no income tax provision (benefit) for the years ended April 30, 2026 and 2025. The components of the Company’s net deferred tax assets are as follows: 

 

  

April 30, 2026

  

April 30, 2025

 

Deferred tax asset

        

Net operating loss carryforward

 $2,372,500  $2,177,800 

Stock-based compensation

  45,100   38,000 

Mining interests

  122,000   118,200 

Other

  2,800   2,800 

Total deferred tax assets

  2,542,400   2,336,800 

Valuation allowance

  (2,542,400)  (2,336,800)

NET DEFERRED TAX ASSETS

 $-  $- 

 

Deferred income taxes arise from timing differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. A deferred tax asset valuation allowance is recorded when it is more likely than not that deferred tax assets will not be realized. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the net deferred tax assets, a valuation allowance equal to 100% of the deferred tax assets has been recorded at April 30, 2026 and 2025.

 

The income tax expense (benefit) for the years ended April 30, 2026 and 2025 differs from the amount of income tax determined by applying the U.S. federal income tax rate to pre-tax income (loss) due to the following:

 

  

April 30, 2026

  

April 30, 2025

 

Income tax benefit computed at statutory rate

 $(173,100)  (21.0)% $(54,000)  (21.0)%

Idaho state income tax, net of federal income tax effect

  -   0.0%  -   0.0%

Valuation allowance

  171,422   20.8%  47,602   (18.5)%

Nontaxable or nondeductible items

  2,595   0.3%  6,398   (2.5)%
Other adjustments: effect of change in Idaho state tax rate  (917)  (0.1)%  -   0.0%

TOTAL INCOME TAX PROVISION (BENEFIT)

 $-   -% $-   -%

 

At April 30, 2026, the Company had federal and state net operating loss carry forwards of approximately $9,440,000 , of which $4,845,000 expires between 2027 and 2039.  The remaining balance of approximately $4,595,000 will never expire but its utilization is limited to 80% of taxable income in any future year.

 

The Company has evaluated all tax positions for open years and has concluded that they have no material unrecognized tax benefits or penalties. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date. The Company recognizes interest and penalties related to unrecognized tax benefits in interest expense and penalties within operating expenses. The Company’s federal income tax returns for fiscal years 2022 through 2025 remain open and subject to examination. Tax attributes from prior years can be adjusted during an IRS audit.