Company: CBLO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001882781-25-000042
Chunk: 6

Company: C2 Blockchain, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 6
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 that raise substantial doubt about the Company's ability to continue as a going concern for one
year following the issuance of these financial statements. These adverse conditions are negative financial trends, specifically operating
loss, working capital deficiency, and other adverse key financial ratios.

The
Company has not established any substantive source of revenue to cover its operating expenses. Revenue generated to date, including staking
rewards, is negligible compared to operating costs. Management intends to fund operations through related-party contributions and the
sale of the Company’s stock. There can be no assurance that these measures will be successful. The accompanying financial statements
do not include any adjustments that might be required if the Company is unable to continue as a going concern, including adjustments
to the recoverability or classification of assets or the amounts and classification of liabilities.

Note
4 - Income Taxes

Potential
benefits of income tax losses are not recognized in the accounts until realization is more likely than not.  In
assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of
the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future
taxable income during the periods in which those temporary differences become deductible. The Company has incurred a net
operating loss carryforward of $2,667,765 which begins expiring in 2041. The Company has adopted ASC 740, “Accounting for
Income Taxes”, as of its inception. Pursuant to ASC 740 the Company is required to compute tax asset benefits for non-capital losses
carried forward. The potential benefit of the net operating loss has not been recognized in these financial statements because the Company
cannot be assured it is more likely than not it will utilize the loss carried forward in future years.

On
December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law. This legislation reduced the federal corporate tax rate from
the previous 35% to 21%.

Due
to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for Federal income tax reporting
purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to
use in future years.

Note
5 - Commitments and Contingencies

The
Company follows ASC 450-20, Loss Contingencies, to report accounting