PROVISION FOR INCOME TAXES

3 Months Ended

Jun. 30, 2026

Income Tax Disclosure [Abstract]

PROVISION FOR INCOME TAXES

NOTE 8 –PROVISION FOR INCOME TAXES

Prior to fiscal year 2023, the Company offset its potential tax benefit from the operating loss carry-forwards with a valuation allowance in the same amount. As it became clear that the Company will more likely than not use its tax loss carry-forward amounts, the valuation allowance was partially removed for the fiscal year ended March 31, 2023, such that the tax benefit recognized by us in fiscal year 2023 was $1,011,466. The valuation allowance was fully removed as of March 31, 2024, resulting in a tax benefit of $1,529,793 for fiscal year 2024. Once the valuation allowance was fully removed, a provision for income taxes was disclosed. For the fiscal quarter ended June 30, 2026, the Company’s provision for income taxes was $28,252. For the fiscal quarter ended June 30, 2025, the Company’s provision for income taxes was $149,998.

FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of June 30, 2026 or March 31, 2026. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

The Company may be subject to potential examination by federal, state, and city taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with federal, state, and city tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next 12 months.

Although we believe that our tax estimates are reasonable, the ultimate tax determination involves significant judgments that could become subject to examination by tax authorities in the ordinary course of business. We periodically assess the likelihood of adverse outcomes resulting from these examinations to determine the impact on our deferred taxes and income tax liabilities and the adequacy of our provision for income taxes. Changes in income tax legislation, statutory income tax rates or future taxable income levels, among other things, could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods.

The Company files income tax returns in the United States, the State of Idaho and the State of California. The statute of limitations on a Federal tax return is the due date of the tax return plus three (3) years. In the case of NOLs, the year in which the NOL was generated remains open up to the amount of the NOL until the statute of limitations expires on the year it was used. All required tax returns of the Company due since inception have been filed. The Company does not have any unrecognized tax benefits to report in the current period.

Net deferred tax assets and liabilities consist of the following components as of June 30, 2026, and March 31, 2026:

	June 30, 2026			March 31, 2026
Deferred tax assets
Right of use liabilities		261,199			276,702
Goodwill amortization		8,801			9,281
NOL carryover		2,176,582			2,200,040
Total deferred tax assets		2,446,582			2,486,023
Deferred tax liabilities
Right of use assets		(246,194	)		(261,538	)
Depreciation		(1,591	)		(2,071	)
Total deferred tax liabilities		(247,785	)		(263,609	)
Net deferred tax assets		2,198,797			2,222,414
Less valuation allowance		-			-
Net deferred tax assets		2,198,797			2,222,414

The reconciliations of the Company’s net income taxes for the three (3) months ended June 30, 2026, and 2025, are as follows:

	June 30, 2026			June 30, 2025
Current federal		-			-
Current state		4,634			22,325
Deferred federal		20,800			114,928
Deferred state		2,818			12,745
Total income tax provision		28,252			149,998
Net income before tax provision		102,847			595,151
U.S. Federal income tax at statutory rate		22,571			124,963
Non-deductible expenses		759			1,082
Temporary differences		(120	)		1,114
State income taxes, net of federal benefit		5,855			19,184
Return to provision adjustments / other		(813	)		3,655
Total income tax provision		28,252			149,998

The summary of Federal Operating Loss Carryforwards for the three (3) months ended of June 30, 2026 is as follows:

Unused operating loss carryforwards at March 31, 2026	$	7,675,873
Operating loss carryforwards realized	$	101,255
Unused operating loss carryforward at June 30, 2026	$	7,574,618