INCOME TAX

3 Months Ended

Mar. 31, 2026

INCOME TAX

INCOME TAX

NOTE 9 - INCOME TAX

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 loss from operation before income tax of the Company for the three months ended March 31, 2026 and March 31, 2025 were comprised of the following:

	For the			For the
	three months ended			three months ended
	March 31,			March 31,
	2026			2025
Tax jurisdiction from:	$			$
- Local		181,214			(77,045	)
- Foreign, representing:
China		92,578			(501	)
Hong Kong		(209,998	)		-
Income (Loss) before income taxes	$	63,794		$	(77,546	)

A reconciliation between expected income taxes and the income tax net expense included in the statements of operations for the three months ended March 31, 2026 and 2025 is as follows:

	For the			For the
	three months ended			three months ended
	March 31, 2026			March 31, 2025
	Total			Total
Net income (loss) before income tax	$	(3,253,813	)	$	(486,397	)
Statutory tax Rate		21	%		21	%
Tax (benefit) expense at the statutory tax rate		(687,998	)		(102,163	)
Tax effect of
Stock-based compensation		696,697			85,859
Changes in valuation allowance		(8,700	)		16,304
Income tax expense (benefit) per book	$	-		$	-

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 March 31, 2026 and December 31, 2025, are as follows:

	March 31,			March 31,			March 31,			December 31,			December 31,			December 31,
	2026			2026			2026			2025			2025			2025
	USA			China/HK			Total			USA			China/HK			Total
Net operating loss carryforward	$	736,101		$	151,116		$	887,217		$	554,887		$	33,696		$	588,583
Statutory tax rate		21	%		25	%		21	%		21	%		25	%		21	%
Deferred tax asset		154,581			37,779			186,316			116,526			8,424			123,602
Less: Valuation allowance		(154,581	)		(37,779	)		(186,316	)		(116,526	)		(8,424	)		(123,602	)
Net deferred asset	$	-		$	-		$	-		$	-		$	-		$	-

The valuation allowance increased by $62,713 during the three months ended March 31, 2026. As of March 31, 2026, the Company had approximately $887,000 in net operating losses (“NOLs”) that may be available to offset future taxable income, which begin to expire between 2028 and 2036. 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. Tax returns for the years ended 2018 through 2025 are subject to review by the tax authorities.