INCOME TAXES

12 Months Ended

Jul. 31, 2025

INCOME TAXES

INCOME TAXES

NOTE 6 – 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 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.

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of July 31, 2025 and 2024, are as follows:

	July 31,			July 31,
	2025			2024
Net operating loss carryforward	$	(5,636,567	)	$	(5,437,298	)
Statutory tax rate		21	%		21	%
Deferred tax asset		(1,183,679	)		(1,141,833	)
Less: Valuation allowance		1,183,679			1,141,833
Net deferred asset	$	-		$	-

As of July 31, 2025 and 2024, the Company had approximately $5.64 million and $5.44 million in net operating losses (“NOLs”), respectively that may be available to offset future taxable income. NOLs generated in tax years prior to July 31, 2019 can be carryforward for twenty years, whereas NOLs generated after July 31, 2019 can be carryforward indefinitely. In accordance with Section 382 of the U.S. Internal Revenue Code, the usage of the Company’s net operating loss carry forwards is subject to annual limitations following greater than 50% ownership changes.