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INCOME TAXES
 12 Months Ended
May 31, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 12 – INCOME TAXES

 

The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for net operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply when the temporary differences are expected to be recovered or settled. A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized.

 

For the year ended May 31, 2026, the Company had income before income taxes of $14,628, all of which was attributable to domestic operations. The Company recorded no federal, state, or foreign income tax expense for the year ended May 31, 2026.

 

The reconciliation of the U.S. federal statutory income tax rate to the Company's effective income tax rate for the year ended May 31, 2026 is as follows:

 

Reconciliation of income tax provision   Amount   Rate 
U.S. federal income tax at statutory rate  $3,072    21.0% 
Change in valuation allowance   (3,072)   (21.0)%
Income tax provision  $–    0.0% 

 

The Company has net operating loss carryforwards available to offset future taxable income. As of May 31, 2026, the Company has provided a full valuation allowance against its net deferred tax assets because management has determined that it is more likely than not that such deferred tax assets will not be realized.

Income taxes paid, net of refunds received, for the year ended May 31, 2026 were as follows:

 

Components of income tax expense   Amount 
Federal  $– 
State and local   – 
Foreign   – 
Total income taxes paid  $– 

 

The Company recognizes the financial statement effects of uncertain tax positions when it is more likely than not that the position will be sustained upon examination based on the technical merits of the position. As of May 31, 2026, the Company had no material unrecognized tax benefits.