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INCOME TAXES
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 9. INCOME TAXES

 

For the period from inception through June 30, 2026, the Company incurred a net operating loss and, accordingly, no provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets.

 

The effective income tax rate for the years ended June 30, 2026 and 2025 consisted of the following:

        
   June 30,   June 30, 
   2026   2025 
Federal statutory income tax rate   21%    21% 
Change in valuation allowance   (21)%   (21)% 
Net effective income tax rate   –    – 

 

Our reconciliation between the expected federal income tax benefit computed by applying the federal statutory rate to our net loss and the actual benefit for taxes on net loss for 2026 and 2025 is as follows:

        
   June 30, 
   2026   2025 
Expected federal income tax benefit at statutory rate before valuation allowance  $687,776   $980,287 
Less: Valuation allowance   (687,776)   (980,287)
Income tax benefit  $–   $– 

 

The Company has current estimated net operating loss carryforwards of approximately $11,000,000 as of June 30, 2026, to offset future taxable income. Under the Tax Cuts and Jobs Act of 2017, the net operating loss carry forwards can be carried forward indefinitely, however the deductions are limited to 80% of taxable income.

 

The components of the Company’s deferred tax asset are as follows: 

        
   June 30, 
   2026   2025 
Deferred tax assets:          
Net deferred tax assets before valuation allowance  $2,329,637   $1,641,861 
Less: Valuation allowance   (2,329,637)   (1,641,861)
Net deferred tax assets  $–   $– 

 

Based on the available objective evidence, including the Company’s history of its loss, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets at June 30, 2026 and 2025, respectively.

 

In accordance with FASB ASC 740, the Company has evaluated its tax positions and determined there are no uncertain tax positions.