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

NOTE 12 – PROVISION FOR INCOME TAXES

 

We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. Per the authoritative literature when it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period.

 

The Company has not taken any tax positions that, if challenged, would have a material effect on the consolidated financial statements for the twelve-months ended May 31, 2026 and 2025. The Company’s tax returns for the fiscal years ended May 31, 2018 through 2025 remain subject to examination by the tax authorities.

 

The components of the Company’s deferred tax asset as of May 31, 2026 and 2025 are as follows:

 

 

   2026   2025 
Net operating loss  $3,106,659   $1,777,909 
Stock compensation   791,721    536,041 
Impairment loss   1,157,796    1,112,333 
Deferred compensation   755,729    767,205 
Other   (3,729)   14,386 
Valuation allowance   (5,808,176)   (4,207,874)
Net deferred tax asset  $-   $- 

 

A reconciliation of income taxes computed at the statutory rate to the income tax amount recorded is as follows:

 

   2026   2025 
Tax at statutory rate (21%)  $(1,808,206)  $(668,194)
Effect of non-taxable and non-deductible permanent differences   181,207    - 
Effect of change in statutory tax rate   -    - 
Other   26,697    3,765 
Increase/(decrease) in valuation allowance   1,600,302    664,429 
Net deferred tax asset  $-   $- 

The net federal operating loss carry forward will expire between 2031 and 2045. This carry forward may be limited upon the consummation of a business combination under IRC Section 381.