IB Acquisition Corp. Income Taxes Disclosure

NOTE 8. INCOME TAX

 

The Company did not have any significant deferred tax assets or liabilities at September 30, 2025 and 2024.

 

The Company’s net deferred tax asset (liabilities) are as follows:

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 

		2025				2024
		September 30
		2025				2024
Deferred tax assets
Net operating loss carryforward		$	—			$	—
Startup Costs			153,540				111,674
Total deferred tax assets			153,540				111,674
Valuation allowance			(153,540	)			(111,674	)
Deferred tax assets, net of allowance		$	—			$	—

 

The income tax provision for the year ended September 30, 2025 and 2024 consists of the following:

 SCHEDULE OF INCOME TAX PROVISION

		2025				2024
		September 30,
		2025				2024
Federal
Current		$	965,635			$	635,512
Deferred			(41,866	)			(109,903	)
State
Current		$	—			$	—
Deferred			—				—
Change in valuation allowance			41,866				109,903
Income tax provision		$	965,635			$	635,512

 

As of September 30, 2025 and 2024, the Company had a total of $0 and $0, respectively, of U.S. federal net operating loss carryovers available to offset future taxable income. The federal net operating loss can be carried forward indefinitely. As of September 30, 2025 and 2024, the Company did not have any state net operating loss carryovers available to offset future taxable income.

 

In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the year ended September 30, 2024, the change in the valuation allowance was $109,903. For the year ended September 30, 2025, the change in the valuation allowance was $41,866.

 

 

A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:

SCHEDULE OF RECONCILIATION OF FEDERAL INCOME TAX RATE 

		2025				2024
		September 30,
		2025				2024
Statutory federal income tax rate			21.00	%			21.00	%
Interest and penalties			0.08	%			0.00	%
True up - Startup Costs and Net Operating Loss per 2024 filed tax return			(2.55	)%			0.00	%
Change in valuation allowance			3.51	%			4.39	%
Income tax provision			22.04	%			25.39	%

 

The Company’s effective tax rates for the periods presented differ from the expected (statutory) rates due to changes in fair value in warrants, transaction costs associated with warrants and the recording of full valuation allowances on deferred tax assets.

 

The Company files income tax returns in the U.S. federal jurisdiction in various state and local jurisdictions and is subject to examination by the various taxing authorities.