v3.26.3
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Taxes  
Income Taxes

8. Income Taxes

 

The Company is subject to United States federal income taxes at a rate of 21%. The Company is incorporated in Wyoming, which does not impose a corporate income tax. In accordance with ASU 2023-09, the reconciliation of income tax computed at the U.S. federal statutory rate to the Company’s income tax expense, in amounts and percentages, is as follows:

 

 

 

Year ended June 30, 2026

 

 

Year ended June 30, 2025

 

 

 

Amount

 

 

%

 

 

Amount

 

 

%

 

Loss before income taxes

 

 

(71,064)

 

 

 

 

 

(20,118)

 

 

 

Income tax benefit at U.S. federal statutory rate

 

 

(14,923)

 

 

21.0%

 

 

(4,225)

 

 

21.0%

Change in valuation allowance

 

 

14,923

 

 

(21.0

)%

 

 

4,225

 

 

(21.0

)%

Income tax expense / effective tax rate

 

 

-

 

 

 

0.0%

 

 

-

 

 

 

0.0%

 

The significant components of deferred income tax assets and liabilities as at June 30, 2026 and 2025 are as follows:

 

 

 

June 30, 2026

 

 

June 30, 2025

 

Net operating loss carryforwards

 

 

64,192

 

 

 

47,869

 

Intangible asset – excess of tax basis over carrying amount

 

 

16,217

 

 

 

17,617

 

Gross deferred tax asset

 

 

80,409

 

 

 

65,486

 

Valuation allowance

 

 

(80,409)

 

 

(65,486)

Net deferred tax asset

 

 

-

 

 

 

-

 

 

The Company has net operating losses carried forward of $305,679 (June 30, 2025 – $227,948) which may be carried forward to apply against future years’ taxable income, subject to the final determination by taxation authorities. Net operating losses arising in tax years beginning after December 31, 2017 may be carried forward indefinitely, subject to an annual limitation of 80% of taxable income. Net operating losses arising in tax years beginning before January 1, 2018 may be carried forward for 20 years. No income taxes were paid during the years ended June 30, 2026 and 2025.

 

The intangible asset acquired in February 2023 (Note 4) was fully impaired for financial reporting purposes, but is amortized for income tax purposes over 15 years under Section 197 of the Internal Revenue Code. Its remaining tax basis of $77,222 (June 30, 2025 – $83,889) exceeds its carrying amount of $nil and gives rise to a deferred tax asset. Accordingly, the impairment of $100,000 is not included in net operating losses; tax amortization of $22,778 through June 30, 2026 (June 30, 2025 – $16,111) has been deducted in computing net operating losses.

 

The Company has no unrecognized tax benefits as of June 30, 2026 and 2025.