Company: AGGI
Filing Date: 2025-10-31
Form Type: 10-12G
Source: 0001683168-25-007875
Chunk: 96

Company: Allied Energy, Inc.
Filing Date: 2025-10-31
Form: 10-12G
Chunk 96
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5 and 2024,
the Company recognized stock-based compensation expense of nil and $32,072, respectively, in the unaudited consolidated statement of comprehensive
income.

The Company’s subsidiary stock option plan
was terminated in 2024, and all unvested awards were cancelled without replacement, therefore, no additional expense will be recognized
and none are outstanding.

NOTE 9 – INCOME TAXES

The U.S. and non-U.S. components of loss before
income taxes were as follows:

| Six Months Ended           |     |     2025 |   |     |     2024 |   |
| United States              |     |   (5,000 | ) |     |        – |   |
| Canada                     |     | (137,740 | ) |     | (362,485 | ) |
| Net Loss before income tax |     | (142,740 | ) |     | (362,485 | ) |

For the six months ended June 30, 2025 and 2024, the Company recorded
$nil income tax expense.

| F-29 |

United States

The Company is subject to US federal corporate
income tax rate of 21%.

At June 30, 2025, the Company had approximately
$10,000 of U.S. federal net operating losses available to offset future taxable income. These net operating losses may be carried forward
indefinitely and are subject to an annual limitation of 80% of taxable income.

In connection with the reverse acquisition completed
on October 16, 2024, the Company (formerly AGGI Inc.) was determined to be the legal acquirer but the accounting acquiree under ASC 805-40,
Reverse Acquisitions. For accounting purposes, the transaction is treated as a recapitalization of the accounting acquirer, whereby the
net assets of the legal acquirer (AGGI Inc.) are stated at their historical carrying amounts, and no goodwill or intangible assets are
recognized. The historical accumulated deficit of $12,360,713 of the legal acquirer was eliminated against Additional Paid-in Capital
as part of this recapitalization, consistent with ASC 805-40-45-1, since the financial statements subsequent to the transaction represent
a continuation of the accounting acquirer’s operations with a recapitalized capital structure.

The Company evaluated the potential tax benefits
associated with the legal acquirer’s historical NOLs under ASC 740. Because the transaction resulted in a change