v3.26.3
INCOME TAXES
 12 Months Ended
Apr. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 15 – INCOME TAXES

 

The Company’s tax expense differs from the “expected” tax expense for the period (computed by applying the blended corporate rate and state tax rates of 21.00% to loss before taxes), are approximately as follows:

                        
   April 30, 2026    April 30, 2025  
Federal  $(3,091,000)     21.00%    $(11,000)     21.05%  
State  $–      0.00%    $–      0.00%  
Non-deductible   $22,000      -0.15%    $–      0.00%  
Subtotal  $(3,069,000)     20.85%    $(11,000)     21.05%  
Valuation allowance  $3,069,000      -20.85%    $11,000      -21.05%  
Income tax benefit  $–      0.00%    $–      0.00%  
                           

Net Loss before provision for taxes from Statement of Operations

  $(14,717,597)          $(52,254)        

 

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at April 30, 2026 and 2025, respectively, are approximately as follows:

        
   April 30, 2026   April 30, 2025 
Share-based payments  $2,796,000   $– 
Amortization   3,000    – 
Impairment expense   22,000    – 
Net operating loss carryforwards   273,000    25,000 
Total deferred tax assets   3,094,000    25,000 
Less: valuation allowance   (3,094,000)   (25,000)
Net deferred tax asset recorded  $–   $– 

 

Deferred tax assets and liabilities are computed by applying the federal and state income tax rates in effect to the gross amounts of temporary differences and other tax attributes, such as net operating loss carryforwards. In assessing if the deferred tax assets will be realized, the Company considers whether it is more likely than not that some or all of these deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which these deductible temporary differences reverse.

 

The Company, after considering all available evidence, fully reserved its deferred tax assets since it is more likely than not that such benefits may be realized in future periods. The Company has not yet established that it can generate taxable income. The Company will continue to evaluate its deferred tax assets to determine whether any changes in circumstances could affect the realization of their future benefit. If it is determined in future periods that portions of the Company’s deferred tax assets satisfy the realization standards, the valuation allowance will be reduced accordingly.

 

During the year ended April 30, 2026, the valuation allowance increased by approximately $3,058,000. The total valuation allowance results from the Company’s estimate of its uncertainty in being unable to recover its net deferred tax assets.

 

At April 30, 2026, the Company has federal and state net operating loss carryforwards, which are available to offset future taxable income, of approximately $3,069,000. The Company is in the process of analyzing their NOL and has not determined if the Company has had any change of control issues that could limit the future use of these NOL’s. NOL carryforwards that were generated after 2017 may only be used to offset 80% of taxable income and are carried forward indefinitely. NOL’s generated prior to April 30, 2017, expire through 2037.

  

The Company files corporate income tax returns in the United States and State of Wyoming jurisdictions. Due to the Company’s net operating loss posture, all tax years are open and subject to income tax examination by tax authorities. The Company’s policy is to recognize interest expense and penalties related to income tax matters as tax expense.

 

At April 30, 2026 and 2025, respectively, there are no unrecognized tax benefits, and there were no significant accruals for interest related to unrecognized tax benefits or tax penalties.