PROVISION FOR INCOME TAXES

12 Months Ended

May 31, 2022

Income Tax Disclosure [Abstract]

PROVISION FOR INCOME TAXES

NOTE 12 – PROVISION FOR INCOME TAXES

We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. Per the authoritative literature when it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period.

The Company has not taken any tax positions that, if challenged, would have a material effect on the consolidated financial statements for the twelve-months ended May 31, 2022 and 2021. The Company’s tax returns for the fiscal years ended May 31, 2015 through 2021 remain subject to examination by the tax authorities.

The components of the Company’s deferred tax asset as of May 31, 2022 and 2021 are as follows:

	2022			2021
Net operating loss	$	658,225		$	380,696
Stock compensation		348,104			297,710
Deferred compensation		356,648			319,449
Other		(27,123	)		(17,163	)
Valuation allowance		(1,335,854	)		(980,692	)
Net deferred tax asset	$	-		$	-

A reconciliation of income taxes computed at the statutory rate to the income tax amount recorded is as follows:

	2022			2021
Tax at statutory rate (21%)	$	(188,128	)	$	(77,330	)
Effect of non-taxable and non-deductible permanent differences		(263,296	)		-
Effect of change in statutory tax rate		-			-
Other		99,192			2,930
Increase/(decrease) in valuation allowance		352,232			74,400
Net deferred tax asset	$	-		$	-

The net federal operating loss carry forward will expire between 2030 and 2042. This carry forward may be limited upon the consummation of a business combination under IRC Section 381.