v3.26.3
INCOME TAXES
 12 Months Ended
Jun. 30, 2026
INCOME TAXES  
INCOME TAXES

NOTE 7 INCOME TAXES

 

The Company domiciled in United States of America. Income (loss) before income taxes and income tax expense (benefit) are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable. The Company does not have any foreign tax liability.

 

The Company recorded a pretax loss of $36,862 for the year ending June 30, 2026, compared to a pretax loss of $50,732 for the year ending June 30, 2025.

 

As of June 30, 2026, the Company had gross deferred tax assets of $4,055,232, primarily related to net operating loss carryforwards and other temporary differences. As of June 30, 2025, gross deferred tax assets totaled $4,049,039.

 

Because the Company has incurred cumulative losses in recent years and does not have sufficient objectively verifiable evidence to support the realization of its deferred tax assets, management concluded that it is more likely than not that the deferred tax assets will not be realized. Accordingly, the Company recorded a full valuation allowance against its deferred tax assets for both 2026 and 2025.

 

The resulting net deferred tax asset was zero as of both June 30, 2026 and 2025.

 

 

 

2027 through 2031

 

 

2032 through 2036

 

 

2037 through 2041

 

 

2042 through 2050

 

 

Not subject to expiration

 

 

Valuation allowance

 

United States income tax loss carry forwards

 

 

38,809

 

 

 

18,972,602

 

 

 

-

 

 

 

-

 

 

 

353,345

 

 

 

-

 

United States deferred income tax assets for income tax loss carry forwards

 

 

8,149

 

 

 

3,984,247

 

 

 

-

 

 

 

-

 

 

 

62,836

 

 

 

(4,055,232)

Foreign income tax loss carry forwards

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Foreign deferred income tax assets for income tax loss carry forwards

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Reconciliations of income taxes from the United States statutory rate of 25% to the consolidated effective income tax rate are as follows:

 

 

 

2026

 

 

 

Amount

 

 

Percent

 

Income taxes at the applicable statutory rate

 

$-

 

 

 

21.0%

 

 

 

 

 

 

 

 

 

Other items - net

 

$-

 

 

 

0%

 

 

 

 

 

 

 

 

 

Effective income tax expense rate

 

$-

 

 

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

 

 

 

Income taxes at the applicable statutory rate

 

 

21.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Other items - net

 

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective income tax expense rate

 

 

21.0%

 

 

 

 

 

Because the Company maintains a full valuation allowance, the effective tax rate is 0% for both years.

 

As of June 30, 2026, the Company had federal and state NOL carryforwards that may be used to offset future taxable income. These NOLs are included in the deferred tax assets above.

 

 

·

Federal NOLs: Indefinite‑lived (post‑2017 TCJA rules)

 

 

 

 

·

State NOLs: Vary by jurisdiction; expiration periods range from 5 to 20 years.

 

All NOLs are fully offset by the valuation allowance.

 

The Company is required to file income tax returns in the United States. The Company are no longer subject to examinations for years before 2019.