Company: CBLO
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001882781-25-000034
Chunk: 517

Company: C2 Blockchain, Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 517
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 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 June 30, 2025, and June 30, 2024.

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 common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings
of the Company.

The
Company does not have any potentially dilutive instruments as of June 30, 2025, and, thus, anti-dilution issues are not applicable.

Fair
Value of Financial Instruments 

The
Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities
approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected
realization.

ASC
820, Fair Value Measurements and Disclosures, defines fair value as