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

NOTE 6 - INCOME TAXES

 

At September 30, 2026, the Company had a net operating loss carryforward of $2,325,693, which begins to expire in fiscal year ending March 31, 2035. Components of net deferred tax asset, including a valuation allowance, are as follows for September 30, 2026 and March 31, 2026:

 

Deferred tax asset:  September 30, 2026   March 31, 2026 
         
Net operating loss carryforward  $488,400   $437,800 
Total deferred tax asset   488,400    437,800 
Less: Valuation allowance   (488,400)   (437,800)
Net deferred tax asset  $-   $- 

 

Valuation allowance for deferred tax asset as of September 30, 2026 and March 31, 2026 was $488,400 and $437,800, respectively. In assessing the recovery of the deferred tax asset, management considers whether it is more likely than not that some or all of the deferred tax asset will not be realized. The realization of the deferred tax asset is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not that our deferred tax asset will not be realized and recorded a 100% valuation allowance for the period.

 

Reconciliation between statutory rate and the effective tax rate for the three-month and six-month periods ending September 30, 2026 and September 30, 2025, respectively:

 

           
Federal statutory rate   (21.0)%   (21.0)%
State taxes, net of federal benefit   (0.00)%   (0.00)%
Change in valuation allowance   21.0%   21.0%
Effective tax rate   0.0%   0.0%

 

The Company accounts for income tax using the liability method prescribed by ASC 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The deferred tax assets on September 30, 2026 and March 31, 2026 consist of net operating loss carryforwards. The net deferred tax asset has been fully offset by a valuation allowance because of the uncertainty of the attainment of future taxable income. For reporting purposes, we previously included state minimum franchise tax as a component of income taxes for the period reported. In accordance with ASC 740 we have included this minimum franchise tax in administrative expense and other in our Statement of Operations.

 

The Company did not identify any material uncertain tax positions. The Company did not recognize any interest or penalties for unrecognized tax benefits. The federal income tax returns of the Company are subject to examination by the IRS generally for three years after filing with the service.