INCOME TAXES

12 Months Ended

Jul. 31, 2025

INCOME TAXES

INCOME TAXES

NOTE 8 - INCOME TAXES

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the consolidated financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

Due to uncertainties surrounding the Company’s ability to generate future taxable income to realize deferred income tax assets arising as a result of net operating losses carried forward, the Company has not recorded any deferred income tax assets as of July 31, 2025. The Company has incurred a net operating loss (NOL) of $23,304,119, the net operating loss carry forwards will begin to expire in varying amounts beginning with the year ended July 31, 2040, subject to its eligibility as determined by respective tax regulating authorities. NOLs generated in tax years prior to December 31, 2018, can be carryforward for twenty years, whereas NOLs generated after December 31, 2018, can be carryforward indefinitely. The Company’s net operating loss carry forwards may be subject to annual limitations, which could eliminate, reduce or defer the utilization of the losses because of an ownership change as defined in Section 382 of the Internal Revenue Code. U.S. Federal tax returns are closed by statute for years through 2015. The status of state and non-U.S. tax examinations varies due to the numerous legal entities and jurisdictions in which the Company operates. Tax returns for the years ended 2017 through 2024 are subject to review by the tax authorities.

Net deferred tax assets consist of the following components as of July 31, 2025, and 2024: 

	July 31, 2025			July 31, 2024
Net operating carryforward	$	(23,304,119	)	$	(22,767,705	)
Effective tax rate		21	%		21	%
Tax benefit of net operating loss carryforward		4,893,865			4,781,218
Valuation allowance		(4,893,865	)		(4,781,218	)
Deferred income tax assets	$	-		$	-