Company: CSDX
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001214659-25-014817
Chunk: 4

Company: CS DIAGNOSTICS CORP.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 4
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 credit carry forwards, and
deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported
amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and
liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The U. S. federal income tax rate of
21% is being used.

Net deferred tax assets consist of the following
components as of:

                                                   June          December  
                                                   30, 2025      31, 2024  
 ───────────────────────────────────────────────────────────────────────────
  Federal income tax benefit attributable to:                              
  Current Operations                               —             —         
  Less: valuation allowance                        —             —         
  Net provision for Federal income taxes           —             —         

The income tax provision differs from the amount of income tax determined
by applying the U. S. federal income tax rate to pretax income from continuing operations for the fiscal years ending, due to the following:

                                           June          December  
                                           30, 2025      31, 2024  
 ───────────────────────────────────────────────────────────────────
  Deferred tax asset attributable to:                              
  Net operating loss carryover             —             —         
  Less: valuation allowance                —             —         
  Net deferred tax asset                   —             —         

On June 30, 2025, the Company had net operating
loss carry forwards of approximately $(4,735,665) that may be offset against future taxable income from the year 2022 to 2040. No tax
benefit has been reported in the June 30 2025, financial statements since the potential tax benefit is offset by a valuation allowance
of the same amount.

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 carry forwards may be limited as to use in future years. With few exceptions, the
Company is no longer subject to U. S. federal, state and local income tax examinations by tax authorities for years before 2015.

NOTE 5 - SUBSEQUENT EVENTS

In accordance with SFAS 165 (ASC 855-