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INCOME TAXES
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 10 – INCOME TAXES

 

The Company accounts for income taxes under ASC 740, Income Taxes. The following table presents a reconciliation of the Company's effective income tax rate to the U.S. federal statutory income tax rate for the years ended March 31, 2026 and 2025:

 

Reconciliation of income tax expense  March 31, 2026
Amount		   March 31, 2026
%		   March 31, 2025 Amount   March 31, 2025
%		 
Expected income tax benefit at U.S. federal statutory rate of 21%  $(860,629)   21.00%   $(246,865)   21.00% 
State taxes, net of federal benefit   (286,000)   6.98%    (82,000)   6.98% 
Other permanent items   –    –    –    – 
Change in valuation allowance   1,146,629    (27.98)%    328,865    (27.98)% 
Income tax expense (benefit)  $–    –%   $–    –% 

 

The reconciliation above is based on loss before income taxes of $(4,098,234) and $(1,175,546) for the years ended March 31, 2026 and 2025, respectively.

 

The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities as of March 31, 2026 and 2025, are as follows:

          
   March 31, 2026   March 31, 2025 
Deferred tax assets:          
Net operating loss carryforward  $1,835,273   $974,451 
Total gross deferred tax assets   1,835,273    974,451 
Less: valuation allowance   (1,835,273)   (974,451)
Net deferred tax assets  $–   $– 

 

Deferred income taxes are provided for the tax effects of transactions reported in the financial statements and consist of deferred taxes related primarily to differences between the bases of certain assets and liabilities for financial and tax reporting. The deferred taxes represent the future tax return consequences of those differences, which will either be deductible or taxable when the assets and liabilities are recovered or settled.

 

As of March 31, 2026 and 2025, the Company had accumulated net operating loss carryforwards of approximately $6,154,206 and $4,502,000, respectively, for U.S. federal and Nevada income tax purposes available to offset future taxable income. These loss carryforwards are subject to limitations under applicable tax law, including limitations resulting from changes in ownership. Federal net operating losses generated after 2017 generally do not expire.

 

The Company periodically evaluates the likelihood of realization of its deferred tax assets and adjusts the carrying amount of the deferred tax assets by a valuation allowance to the extent that future realization is not considered more likely than not. Based on the weight of available evidence, including cumulative losses in recent years and expectations regarding future taxable income, the Company determined that it was more likely than not that its deferred tax assets would not be realized as of March 31, 2026 and 2025. Accordingly, the Company has recorded a valuation allowance for 100% of its deferred tax assets. The increase in the valuation allowance during fiscal 2026 was $1,835,273.

 

During the years ended March 31, 2026 and 2025, the Company did not make any cash payments for income taxes.

 

In the ordinary course of business, the Company's income tax returns are subject to examination by various taxing authorities. The Company believes it is more likely than not that its tax positions will be sustained upon examination. Accordingly, the Company has not recorded a liability for unrecognized tax benefits. As of March 31, 2026, tax years 2025, 2024, 2023, and 2022 remain open for examination by the Internal Revenue Service and the Nevada Division of Revenue. The Company has received no notice of audit from the Internal Revenue Service or the Nevada Division of Revenue for any open tax years.