Aether Holdings, Inc. Income Taxes Disclosure

NOTE 13 — INCOME TAXES

 

The Company is subjected to a combined effective tax rate for federal and state income taxes of 30.8% and state minimum fee.

 

The deferred tax assets and liabilities were estimated for further tax consequences attributable to differences between the financial statement carrying amounts of the Company’s existing assets and liabilities and their respective tax bases. The deferred tax assets and liabilities were measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

 

For the year ended September 30, 2025, the Company incurred $5,298 in tax expenses. No amounts were incurred for income tax uncertainties or interest and penalties during these years. As of September 30, 2025 the Company did not have an accrued liability for uncertain tax positions and does not anticipate recognition of any significant liabilities for uncertain tax positions during the next 12 months. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company’s tax years since its formation remain subject to possible income tax examination by its major taxing authorities for all periods.

 

No provision for income tax was made for the year ended September 30, 2025 and 2024.

 

The following table reconciles income taxes based on the U.S. statutory tax rate to the Company’s income tax expense:

 

SCHEDULE OF RECONCILES INCOME TAXES

		For the Year ended
		September 30, 2025				September 30, 2024
Loss before income tax		$	(3,136,013	)		$	(939,436	)
Statutory tax rate			30.80	%			30.80	%
Tax at the domestic income tax rate			(965,892	)			(289,346	)
State Minimum fee			240				240
State Franchise Tax			5,298				-
Tax effect of tax losses not recognized			931,755				275,735
Non-deductible expenses			(49	)			1,387
Difference in state tax rate			33,946				11,984
Total income tax expense			5,298				-

 

Significant components of deferred income tax assets and liabilities were as follows:

 

SCHEDULE OF DEFERRED INCOME TAX ASSETS AND LIABILITIES

		September 30, 2025				September 30, 2024
Tax Loss Carry forward			1,299,283				367,528
Valuation allowance for deferred tax assets			(1,299,283	)			(367,528	)
Total deferred income tax assets (liabilities)		$	-			$	-

 

As of September 30, 2025 and 2024, there was net operating loss (“NOL”) carry forward of $4,380,306 and $1,244,454 respectively and they can be carried forward indefinitely. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of September 30, 2025 and 2024.