INCOME TAXES

12 Months Ended

Jul. 31, 2025

INCOME TAXES

INCOME TAXES

NOTE 7 - INCOME TAXES

The provision for refundable federal income tax at 21% consists of the following for the periods ending:

	Years Ended
	July 31,
	2025			2024
Income (Loss) for the year	$	(498,315	)	$	25,752
Income tax (benefit) at statutory rate	$	(104,646	)	$	5,408
Change in valuation allowance		104,646			(5,408	)
Income tax expense per books	$	-		$	-

The Company assesses the likelihood that deferred tax assets will not be realized. ASC 740, “Income Taxes” requires that a valuation allowance be established when it is “more likely than not” that all, or a portion of, deferred tax assets will not be realized. A review of all available positive and negative evidence needs to be considered, including the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. After consideration of all the information available, management believes that uncertainty exists with respect to future realization of its deferred tax assets and has, therefore, established a full valuation allowance as of July 31, 2025.

Net deferred tax assets consist of the following components as of:

	July 31,			July 31,
	2025			2024
Non-operating loss carryforward	$	528,871		$	424,225
Valuation allowance		(528,871	)		(424,225	)
Net deferred tax asset	$	-		$	-

The Company has not completed its evaluation of NOL utilization limitation under IRC Section 382, change of ownership rules, but believes that it had a change of ownership that would limit the amount of the U.S. NOLs that could be utilized each year based on the provisions of Section 382.