Company: AAPI
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001477932-25-002341
Chunk: 262

Company: Apple iSports Group, Inc.
Filing Date: 2025-04-01
Form: 10-K
Item: Item 2
Chunk 262
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Table of Contents

The reconciliation of the statutory federal, state, and foreign rate to the Company’s effective income tax rate is as follows:   December 31, 2024  December 31, 2023 U.S. federal income tax benefit      Federal statutory rate  25%  25%State tax, net of federal tax effect  6.9%  6.9%Foreign tax, net of federal tax effect  19.8%  19.8%Change valuation allowance  (51.7 )%  (51.7 )%Net  0.0%  0.0% The primary components of the Company’s December 31, 2024 and 2023 deferred tax assets and related valuation allowances are as follows:   December 31, 2024  December 31, 2023 Net operating loss – United States $450,090  $659,338 Net operating loss - Australia  793,506   1,014,065 Valuation allowance  (1,243,596 )  (1,673,403 )Deferred tax assets $-  $-  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 not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the net operating losses and temporary differences become deductible. Management considered projected future taxable income and tax planning strategies in making this assessment. The value of the deferred tax assets was offset by a valuation allowance due to the current uncertainty of the future realization of the deferred tax assets. The timing and manner in which the Company can utilize operating loss carryforwards in any year may be limited by provisions of the Internal Revenue Code regarding changes in ownership of corporations. Such limitation may have an impact on the ultimate realization of its carryforwards and future tax deductions. The Company follows FASB ASC 740.10, which provides guidance for the recognition and measurement of certain tax positions in an enterprise’s financial statements. Recognition involves a determination of whether it is more likely than not that a tax position will be sustained upon examination with the presumption that the tax position will be examined by the appropriate taxing authority having full knowledge of all relevant information. The Company’s policy is to record interest and penalties associated with unrecognized tax