v3.26.1
INCOME TAXES
 9 Months Ended
Jun. 30, 2026
INCOME TAXES  
INCOME TAXES

NOTE 8. INCOME TAXES

 

Prior to October 2, 2025, the Company was incorporated in the British Virgin Islands and generally was not subject to income taxes. On October 2, 2025, the Company completed its redomiciliation to the United States (Delaware) and became subject to U.S. federal and applicable state income taxes. Dagola Inc. is subject to U.S. federal corporate income tax at a statutory rate of 21%, in addition to applicable state income taxes. Guangzhou Duokanglong Special Medical Nutrition Technology Co., Ltd. is subject to PRC enterprise income tax at a statutory rate of 25%. Verdant Sustainable Fuel Malaysia Sdn. Bhd. is subject to the applicable Malaysian corporate income tax regime; however, no material taxable activity had commenced as of June 30, 2026.

 

For the nine months ended June 30, 2026 and 2025, the Company recorded no provision for income taxes primarily due to operating losses, offsetting tax attributes, and the full valuation allowance recorded against deferred tax assets. The Company’s PRC subsidiary generated limited taxable income during the nine months ended June 30, 2026; however, the related income tax expense was not material to the consolidated financial statements. The reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:

 

 

 

June 30, 2026

 

 

June 30, 2025

 

U.S. federal statutory income tax rate

 

 

21.0%

 

 

21.0%

Foreign tax rate differential

 

 

(1.2 )%

 

 

-

 

Change in valuation allowance

 

 

(19.8 )%

 

 

(21.0 )%

Other permanent differences

 

 

-

 

 

 

-

 

Effective income tax rate

 

 

0.0%

 

 

0.0%

 

The Company recognizes interest and penalties related to uncertain tax positions, if any, as a component of income tax expense. As of June 30, 2026 and September 30, 2025, the Company had no accrued interest or penalties related to uncertain tax positions. The Company files income tax returns in the United States and applicable foreign jurisdictions. Tax years remain subject to examination by taxing authorities in accordance with the respective statutes of limitation.