Company: CBLO
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001882781-25-000034
Chunk: 34

Company: C2 Blockchain, Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 34
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                                                                    21.0%

    21.0
    % 
  
    Increase
    in valuation allowance                                                                                      (21.0%)

    (21.0
    %)
  
    Effective
    income tax rate                                                                                                    0.0%

    0.0
    %

On
December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law. This legislation reduced the federal corporate tax rate from
the previous 35% to 21%.

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 carryforwards may be limited as to
use in future years.

Note
5 - Commitments and Contingencies

The
Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies.  Liabilities
for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable
that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no commitments or contingencies
as of June 30, 2025, and June 30, 2024 except for the following: on February 1, 2025, the Company entered into an employment agreement
with our sole officer and director, Levi Jacobson, which details base salary to be paid as well as bonus payments based on benchmarks.

As
of June 30, 2025, the Company is in dispute with a vendor regarding services to the Company totaling $12,500. Based on the Company’s
analysis pursuant to ASC 450-20, Loss Contingencies, the payment of this disputed amount is considered uncertain at the time of filing
this report. No liability was recorded as of June 30, 2025 for this disputed amount.

Note
                                            6 - Prepaid Expenses

During
the year ended June 30, 2025, the Company prepaid a one-year invoice for OTC Markets news & disclosure service totaling $7,500 and
prepaid a 66-day invoice for advertising totaling $7,500. These were expensed through June 30, 202