Income Taxes

12 Months Ended

Aug. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 6 – Income Taxes

Taxes on income included in the consolidated statements of operations represent current taxes due to taxable income of the Company and its Subsidiary.

Corporate taxation in the U.S.

The applicable corporate tax rate for the Company is 21%.

No provision for income tax was made for the period from September 15, 2004 (Inception) to August 31, 2025, as the Company had cumulative operating losses. For the years ended August 31, 2025, and 2024, the Company incurred net losses for tax purposes of $1,903,012 and $1,817,062, respectively. Under U.S. tax laws, subject to certain limitations, carry forward tax losses expire 20 years after the year in which incurred. In the case of the Company, subject to potential limitations in accordance with the relevant law, the net loss carry forward will expire in the years 2032 through 2044.

Corporate taxation in Israel:

The Subsidiary is taxed in accordance with Israeli tax laws. The corporate tax rate applicable is 23%.

As of August 31, 2025, the Subsidiary has an accumulated tax loss carry forward of approximately $13,410,828 (as of August 31, 2024, approximately $13,182,803). Under the Israeli tax laws, carry forward tax losses have no expiration date.

The income tax expense (benefit) differs from the amount computed by applying the United States Statutory corporate income tax rate as follows:

	For the Year Ended August 31,
	2025		2024
United States statutory corporate income tax rate		21.0%		21.0%
Change in valuation allowance on deferred tax assets		-21.0%		-21.0%
Provision for income tax		–%		–%

Deferred income taxes reflect the tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. The components of the net deferred income tax assets are approximately as follows:

	August 31,
	2025			2024
US Deferred income tax assets:
Net operating loss carry forwards benefit	$	399,633		$	381,583
Valuation allowance		(399,633	)		(381,583	)
Net deferred income tax assets	$	–		$	–
Outside US Deferred income tax assets:
Net operating loss carry forwards benefit	$	3,137,477		$	3,085,031
Valuation allowance		(3,137,477	)		(3,085,031	)
	$	–		$	–

	August 31,
	2025			2024
Consolidated Deferred income tax assets:
Net operating loss carry forwards benefit	$	3,537,109		$	3,466,614
Valuation allowance		(3,537,109	)		(3,466,614	)
Net deferred income tax assets	$	–		$	–

The amount taken into income as deferred income tax assets must reflect that portion of the income tax loss carry forwards that is more likely than not to be realized from future operations. The Company has established a full valuation allowance on its net deferred tax assets because of a lack of sufficient positive evidence to support its realization. The valuation allowance increased by $70,495 by and increased $128,850 for the years ended August 31, 2025, and 2024, respectively.

No provision for income taxes has been provided in these financial statements due to the net loss for the years ended August 31, 2025 and 2024. At August 31, 2025, the Company has net operating loss carry forwards of approximately $25,268,376 which expire commencing 2044. The potential tax benefit of these losses may be limited due to certain change in ownership provisions under Section 382 of the Internal Revenue Code (“IRS”) and similar state provisions.

IRS Section 382 places limitations (the “Section 382 Limitation”) on the amount of taxable income which can be offset by net operating loss carry forwards after a change in control (generally greater than 50% change in ownership) of a loss corporation. Generally, after a change in control, a loss corporation cannot deduct operating loss carry forwards in excess of the Section 382 Limitation. Due to these “change in ownership” provisions, utilization of the net operating loss and tax credit carry forwards may be subject to an annual limitation regarding their utilization against taxable income in future periods. The Company has not concluded its analysis of Section 382 through August 31, 2025, but believes the provisions will not limit the availability of losses to offset future income.

The Company is subject to income taxes in the U.S. federal jurisdiction and is subject to examination for a period of three years for current filings and indefinitely for any delinquent filings. The tax regulations within each jurisdiction are subject to interpretation of related tax laws and regulations and require significant judgment to apply. The Company estimates that the amount of penalties, if any, will not have a material effect on the results of operations, cash flows or financial position. No provisions have been made in the financial statements for such penalties, if any.