Company: CBLO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001599916-25-000058
Chunk: 3

Company: C2 Blockchain, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 3
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 highly
liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents
at March 31, 2025, and June 30, 2024 were $20,796 and $0, respectively. 

Comprehensive
income or loss

ASC Topic 220,
“Comprehensive Income”, establishes standards for reporting and display of comprehensive income or loss, its components and
accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated
comprehensive income, as presented in the accompanying consolidated statements of shareholders’ equity consists of changes in unrealized
gains and losses on foreign currency translation.

Revenue recognition

The
Company adopted ASC 606 – Revenue from contracts with Customers: (1) identify the contract with a customer; (2) identify the performance
obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in
the contract; and (5) recognize revenue when each performance obligation is satisfied. 

Income
Taxes

The Company accounts for income taxes
under ASC 740, “Income Taxes.”  Under the asset and liability method of ASC 740, deferred tax assets and liabilities
are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing
assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The
effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs.  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. No deferred tax assets or liabilities were recognized at March 31, 2025 and June 30, 2024.

F-5

Basic Earnings (Loss) Per Share

The Company computes basic and diluted
earnings (loss) per share in accordance with ASC Topic 260, Earnings per Share. Basic earnings (loss) per share is computed
by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted earnings
(loss) per share reflects the potential dilution that could occur if stock options and other commitments to issue