Company: RGBP
Filing Date: 2025-05-28
Form Type: 10-Q
Source: 0001641172-25-012619
Chunk: 7

Company: Regen BioPharma Inc
Filing Date: 2025-05-28
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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, including grants of employee stock options, to be recognized in the consolidated
financial statements based on their fair values. The fair value of stock options is calculated by using the Black-Scholes option pricing
formula that requires estimates for expected volatility, expected dividends, the risk-free interest rate and the term of the option.
If any of the assumptions used in the Black-Scholes model change significantly, share-based compensation expense may differ materially
in the future from that recorded in the current period.

M. SEGMENT REPORTING

FASB
ASC Topic 280, Segment Reporting, requires public companies to report financial and descriptive information about their reportable operating
segments. The Company’s management identifies operating segments based on how the Company’s management internally evaluate
separate financial information, business activities and management responsibility. At the current time, the Company has only one reportable
segment, primarily in the development of regenerative medical applications

N. INCOME TAXES

The
Company uses the asset and liability method of accounting for income taxes in accordance with ASU 740, “ Income Taxes”. Under
this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future
tax consequences attributable to differences between the consolidated 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 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 the results of operations in the period that includes the enactment date. A valuation
allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than
not that some portion or all of the deferred tax assets will not be realized. The Company is subject to Income tax filings requirements
in U. S. federal and various state jurisdictions. The Company’s tax returns for all years are subject to U. S. federal, state, and
local income tax examinations by tax authorities. The Company reports income tax related interest and penalties within the income tax
line item on the consolidated statements of operations. The Company likewise reports the reversal of income tax-related interest and
penalties within such line item to the extent the Company resolves the liabilities for uncertain tax positions in a manner favorable
to the accruals.

O. RECENT ACCOUNTING PRONOUNCEMENTS