v3.26.3
Income Taxes
 12 Months Ended
Aug. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8 – Income Taxes

At August 31, 2026 and 2025, the Company had net operating loss carryforwards for federal income tax purposes of approximately $212,742 and $93,446, respectively, available to offset future taxable income. Net operating losses arising in tax years beginning after December 31, 2017 may be carried forward indefinitely but may offset no more than 80% of taxable income in any year. Imputed interest on the related party loan (Note 6) is not deductible for income tax purposes and is treated as a permanent difference; cumulative imputed interest through August 31, 2026 was $25,483. Amortization of intangible assets for income tax purposes is the same as for financial reporting purposes, and accordingly no temporary difference arises. Because realization of the related future tax benefits is not considered more likely than not, no benefit has been recognized in these financial statements, and a full valuation allowance has been recorded against the associated deferred tax asset.

The valuation allowance totaled approximately $44,676 at August 31, 2026, reflecting a net increase of $25,052 during the year. Management assesses the realizability of deferred tax assets by evaluating whether it is more likely than not that some or all of the deferred tax assets will not be realized, considering the scheduled reversal of deferred tax liabilities, projected future taxable income, and available tax planning strategies. Based on this assessment, management concluded that sufficient uncertainty exists to warrant a full valuation allowance as of August 31, 2026. All tax years since the Company's inception remain open to examination by taxing authorities.

 

F-14

 

For the years ended August 31, 2026 and 2025, the components of the Company’s deferred tax assets are as follows:

    August 31, 2026   August 31, 2025
Non-current deferred tax assets:        
Net operating loss carryforward $    44,676 $    19,624
Total deferred tax assets   44,676   19,624
Valuation allowance   (44,676)   (19,624)
Net deferred tax assets $                    - $                     -

 

For the years ended August 31, 2026 and 2025, the actual tax benefit differed from the amount computed by applying the expected statutory rate of 21%, as follows:

    August 31, 2026   August 31, 2025
Computed “expected” tax expense (benefit) $           (26,875) $           (14,287)
Nondeductible imputed interest   1,823   2,079
Change in valuation allowance   25,052   12,208
Actual tax expense (benefit) $                     - $                    -

 

Given the uncertainty surrounding realization, the Company has recorded a full valuation allowance against the deferred tax benefit related to these unutilized net operating losses. In accordance with ASC 740, management has reviewed the Company's tax positions and identified no significant uncertain positions beyond those already disclosed.