Company: CBLO
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001882781-25-000034
Chunk: 107

Company: C2 Blockchain, Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1C
Chunk 107
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 more likely than not that some portion or all of
the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future
taxable income during the periods in which those temporary differences become deductible. The Company has incurred a net
operating loss carryforward of $297,784 which begins expiring in 2041. The Company has adopted ASC 740, “Accounting for Income
Taxes”, as of its inception. Pursuant to ASC 740 the Company is required to compute tax asset benefits for non-capital losses carried
forward. The potential benefit of the net operating loss has not been recognized in these financial statements because the Company cannot
be assured it is more likely than not it will utilize the loss carried forward in future years.

Significant
components of the Company’s deferred tax assets are as follows:

    June 30, 2025
     
    June 30, 2024

    Deferred tax asset, generated from net operating loss
     
     $
    62,535
     $
    13,129
  
    Valuation allowance

    (62,535)
     
    (13,129)

     $
    - 
     $
    -

The
reconciliation of the effective income tax rate to the federal statutory rate is as follows:

    Federal
    income tax rate                                                                                                    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