{"url_path":"/sec/pcsv/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 Financial Statements**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-26","source_url":"https://www.sec.gov/Archives/edgar/data/1122020/0001493152-26-030242-index.html","accession_number":"0001493152-26-030242","cik":"0001122020","ticker":"PCSV","issuer_name":"PCS Edventures!, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1122020/0001493152-26-030242-index.html","primary_entity_key":"0001122020","primary_entity_name":"PCS Edventures!, Inc."},"word_count":7110,"has_tables":true,"body_markdown":"** **\n\n**Item\n8. Financial Statements**\n\n \n\n \n[Report of Independent Registered Public Accounting Firm](#F_006)\n 19\n\n \n[Balance Sheets as of March 31, 2026, and March 31, 2025](#F_001)\n 20\n\n \n[Statements of Operations for the years ended March 31, 2026, and 2025](#F_002)\n 21\n\n \n[Statements of Stockholders’ Equity for the years ended March 31, 2026, and 2025](#F_003)\n 22\n\n \n[Statements of Cash Flows for the years ended March 31, 2026, and 2025](#F_004)\n 23\n\n \n[Notes to Financial Statements](#F_005)\n 24\n\n \n\n18\n\n \n\n \n\n \n\nREPORT\nOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\n\n \n\nTo\nthe Board of Directors and\n\nStockholders of PCS Edventures!, Inc.\n\n \n\n**Opinion\non the Financial Statements**\n\n** **\n\nWe\nhave audited the accompanying balance sheets of PCS Edventures!, Inc. (the Company) as of March 31, 2026 and 2025, and the related statements\nof operations, stockholders’ equity, and cash flows for each of the years in the two-year period ended March 31, 2026, and the\nrelated notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all\nmaterial respects, the financial position of the Company as of March 31, 2026 and 2025, and the results of its operations and its cash\nflows for each of the years in the two-year period ended March 31, 2026, in conformity with accounting principles generally accepted\nin the United States of America.\n\n \n\n**Basis\nfor Opinion**\n\n** **\n\nThese\nfinancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s\nfinancial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board\n(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities\nlaws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe\nconducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company\nis not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,\nwe are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion\non the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur\naudits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error\nor fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding\nthe amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant\nestimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits\nprovide a reasonable basis for our opinion.\n\n \n\n**Critical\nAudit Matters**\n\n** **\n\nCritical\naudit matters are matters arising from the current period audit of the financial statements that were communicated or required to be\ncommunicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and\n(2) involve especially challenging, subjective, or complex auditor judgments. We determined that there are no critical audit matters.\n\n* *\n\n*/s/\nHaynie*\n\n \n\nHaynie\n\nSalt Lake City, Utah\nJune 26, 2026\n\nPCAOB #457   We have served as the Company’s auditor since 2019.\n\n \n\n** **\n\n19\n\n \n\n** **\n\n**PCS\nEDVENTURES!, INC.**\n\n**Balance\nSheets**\n\n**(Audited)**\n\n \n\n  \nMarch 31, 2026  \nMarch 31, 2025 \n\nCURRENT ASSETS \n    \n   \n\nCash \n$2,674,538  \n$3,223,147 \n\nAccounts receivable, net of allowance for credit losses of $41,889 and $38,027, respectively \n 719,380  \n 383,826 \n\nAccounts receivable, other receivables \n 3,227  \n 55 \n\nPrepaid expenses \n 179,869  \n 247,422 \n\nInventory, net \n 2,054,008  \n 2,064,534 \n\nTotal Current Assets \n 5,631,022  \n 5,918,984 \n\n  \n    \n   \n\nNONCURRENT ASSETS \n    \n   \n\nLease right-of-use asset \n 934,064  \n 1,140,217 \n\nDeposits \n 29,747  \n 29,747 \n\nProperty and equipment, net \n 84,873  \n 97,213 \n\nDeferred tax asset \n 2,222,414  \n 2,276,861 \n\nTotal Noncurrent Assets \n 3,271,098  \n 3,544,038 \n\n  \n    \n   \n\nTOTAL ASSETS \n$8,902,120  \n$9,463,022 \n\n  \n    \n   \n\nCURRENT LIABILITIES \n    \n   \n\nAccounts payable \n$84,316  \n$24,991 \n\nPayroll liabilities and accrued expenses \n 115,582  \n 171,398 \n\nDeferred revenue \n 21,240  \n 20,026 \n\nLease liability, current portion \n 227,718  \n 110,024 \n\nTotal Current Liabilities \n 448,856  \n 326,439 \n\n  \n    \n   \n\nLease liability, net of current portion \n 760,504  \n 1,081,614 \n\nTOTAL LIABILITIES \n 1,209,360  \n 1,408,053 \n\n  \n    \n   \n\nSTOCKHOLDERS’ EQUITY (DEFICIT) \n    \n   \n\nPreferred stock, no par value, 20,000,000 authorized shares,\nno shares issued and outstanding \n -  \n - \n\nCommon stock, no par value, 12,000,000 authorized shares,\n9,781,828 issued and 9,707,960 outstanding\n10,182,853 shares issued and outstanding, respectively \n -  \n - \n\nAdditional Paid-in Capital \n 39,521,588  \n 40,022,746 \n\nTreasury stock, 73,868 shares and 0 shares, respectively \n (114,233) \n - \n\nAccumulated deficit \n (31,714,595) \n (31,967,777)\n\nTotal Stockholders’ Equity \n 7,692,760  \n 8,054,969 \n\nTOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY \n$8,902,120  \n$9,463,022 \n\n** **\n\nThe\naccompanying notes are an integral part of these financial statements.\n\n \n\n20\n\n \n\n** **\n\n**PCS\nEDVENTURES!, INC.**\n\n**Statements\nof Operations**\n\n**(Audited)**\n\n** **\n\n  \n2026  \n2025 \n\n  \nFor the Years ended March 31, \n\n  \n2026  \n2025 \n\nREVENUE \n$6,349,761  \n$7,421,228 \n\n  \n    \n   \n\nCOST OF SALES \n 2,509,692  \n 2,983,940 \n\n  \n    \n   \n\nGROSS PROFIT \n 3,840,069  \n 4,437,288 \n\n  \n    \n   \n\nOPERATING EXPENSES \n    \n   \n\nSalaries and wages \n 2,205,008  \n 1,914,941 \n\nGeneral and administrative expenses \n 1,418,083  \n 1,386,177 \n\nTotal Operating Expenses \n 3,623,091  \n 3,301,118 \n\n  \n    \n   \n\nINCOME FROM OPERATIONS \n 216,978  \n 1,136,170 \n\n  \n    \n   \n\nOTHER INCOME AND EXPENSES \n    \n   \n\nNet interest income \n 104,477  \n 127,930 \n\n  \n    \n   \n\nNET INCOME BEFORE INCOME TAX PROVISION \n 321,455  \n 1,264,100 \n\n  \n    \n   \n\nIncome Tax Benefit (Provision) \n (68,273) \n (317,235)\n\n  \n    \n   \n\nNET INCOME \n$253,182  \n$946,865 \n\n  \n    \n   \n\nNet income per common share: \n    \n   \n\nBasic \n 0.03  \n 0.09 \n\nDiluted \n 0.03  \n 0.09 \n\nWeighted Average Common Shares Outstanding \n    \n   \n\nBasic \n 9,914,691  \n 10,320,469 \n\nDiluted \n 9,914,691  \n 10,320,469 \n\n \n\nThe\naccompanying notes are an integral part of these financial statements.\n\n \n\n21\n\n \n\n** **\n\n**PCS\nEDVENTURES!, INC.**\n\n**Statements\nof Stockholders’ Equity**\n\n**(Audited)**\n\n \n\n  \nShares O/S  \nStock  \nShares  \nCapital  \nCapital  \nDeficit  \nEquity \n\n  \n   \n   \n   \nTreasury  \n   \n   \n  \n\n  \n  \n   \n   \nStock  \n  \n   \n  \n\n  \n\n# of\n\nCommon\n  \nCommon  \nTreasury  \n\nAdditional\n\nPaid-in\n  \n\nAdditional\n\nPaid-in\n  \nAccumulated  \nStockholders’ \n\n  \nShares O/S  \nStock  \nShares  \nCapital  \nCapital  \nDeficit  \nEquity \n\n**Balance at 3/31/2024**\n \n 10,394,830  \n -  \n -  \n$-  \n$40,570,459  \n$(32,914,642) \n$7,655,817 \n\nNet Income \n -  \n -  \n -  \n -  \n -  \n 946,865  \n 946,865 \n\nPrivate shares purchased and cancelled \n (211,977) \n -  \n -  \n -  \n (547,713) \n -  \n (547,713)\n\nBalance at 3/31/2025 \n 10,182,853  \n -  \n -  \n$-  \n$40,022,746  \n$(31,967,777) \n$8,054,969 \n\nBalance \n 10,182,853  \n -  \n -  \n$-  \n$40,022,746  \n$(31,967,777) \n$8,054,969 \n\nNet income \n -  \n -  \n -  \n -  \n -  \n 253,182  \n 253,182 \n\nTreasury shares purchased \n (393,549) \n -  \n 393,549  \n (498,271) \n -  \n -  \n (498,271)\n\nTreasury shares cancelled \n -  \n -  \n (319,681) \n 384,038  \n (384,038) \n -  \n - \n\nPrivate shares purchased and cancelled \n (88,012) \n -  \n -  \n -  \n (128,048) \n -  \n (128,048)\n\nShares issued for Board comp \n 6,668  \n -  \n -  \n -  \n 10,928  \n -  \n 10,928 \n\nBalance at 3/31/2026 \n 9,707,960  \n -  \n 73,868  \n$(114,233) \n$39,521,588  \n$(31,714,595) \n$7,692,760 \n\nBalance \n 9,707,960  \n -  \n 73,868  \n$(114,233) \n$39,521,588  \n$(31,714,595) \n$7,692,760 \n\n** **\n\nThe\naccompanying notes are an integral part of these financial statements.\n\n \n\n22\n\n \n\n** **\n\n**PCS\nEDVENTURES!, INC**.\n\n**Statements\nof Cash Flows**\n\n**(Audited)**\n\n \n\n  \n2026  \n2025 \n\n  \nFor the years ended March 31, \n\n  \n2026  \n2025 \n\nCASH FLOWS FROM OPERATING ACTIVITIES \n    \n   \n\nNet Income \n$253,182  \n$946,865 \n\nDepreciation and amortization \n 31,069  \n 26,339 \n\nAmortization of right of use asset \n 206,153  \n 157,391 \n\nProvision for income tax \n 68,273  \n 317,235 \n\nStock based compensation for board member \n 10,928  \n - \n\nBad debt expense \n 3,862  \n - \n\nChanges in operating assets and liabilities \n    \n   \n\n(Increase) decrease in accounts receivable \n (342,588) \n 1,291,978 \n\n(Increase) decrease in prepaid expenses \n 67,554  \n 146,669 \n\n(Increase) decrease in inventories \n 10,526  \n (39,051)\n\n(Decrease) increase in accounts payable and accrued liabilities \n (10,317) \n (187,271)\n\nIncrease (decrease) in lease liability \n (203,416) \n (121,220)\n\nIncrease (decrease) in unearned revenue \n 1,214  \n 5,477 \n\n(Increase) decrease in deposits \n -  \n (23,446)\n\nNet Cash Provided by Operating Activities \n 96,440  \n 2,520,966 \n\n  \n    \n   \n\nCASH FLOWS FROM INVESTING ACTIVITIES \n    \n   \n\nCash paid for purchase of fixed assets \n (18,730) \n (79,814)\n\nNet Cash Used by Investing Activities \n (18,730) \n (79,814)\n\n  \n    \n   \n\nCASH FLOWS FROM FINANCING ACTIVITIES \n    \n   \n\nCash paid for private purchases of common stock \n (128,048) \n (547,713)\n\nCash paid for purchase of Treasures shares in open market \n (498,271) \n - \n\nNet Cash Used by Financing Activities \n (626,319) \n (547,713)\n\n  \n    \n   \n\nNet Increase (Decrease) in Cash \n (548,609) \n 1,893,439 \n\nCash at Beginning of Period \n 3,223,147  \n 1,329,708 \n\nCash at End of Period \n$2,674,538  \n$3,223,147 \n\n  \n    \n   \n\nCash paid for taxes \n$191,506  \n$125,861 \n\nCash paid for interest \n$-  \n$999 \n\n  \n    \n   \n\n \n\nThe\naccompanying notes are an integral part of these financial statements.\n\n \n\n23\n\n \n\n** **\n\n**PCS\nEDVENTURES!, INC.**\n\n**Notes\nto the Financial Statements**\n\n**March\n31, 2026**\n\n**(Audited)**\n\n \n\n**NOTE\n1 - DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES**\n\n \n\n*Description\nof Business*\n\n \n\nThe\nfinancial statements presented are those of PCS Edventures!, Inc., an Idaho corporation (the “Company,” “PCS,”\n“PCSV,” “we,” “our,” “us” or similar words), incorporated in 1994, in the State of Idaho.\nPCS specializes in experiential, hands-on, TK12 education and drone technology. PCS has extensive experience and intellectual property\n(“IP”) that includes drone hardware, product designs, and TK-12 curriculum content. PCS continually develops new educational\nproducts based upon market needs that the Company identifies through its sales and customer networks.\n\n \n\nOur\nproducts facilitate STEM (“Science, Technology, Engineering, and Math”) education by providing engaging activities that demonstrate\nSTEM concepts and inspire further STEM studies, with the goal of ultimately leading students to pursue STEM career pathways. Due to our\nexceptionally detailed curriculum, our products are easy to teach and do not require a teaching degree or experience to administer.\n\n \n\nOur\neducational products are developed from both in-house efforts and contracted services. They are marketed through reseller channels, direct\nsales efforts, partner networks, and web-based channels.\n\n \n\nPCS\nhas developed and sells a variety of STEM education products into the K12 market, which can be categorized as follows:\n\n \n\n \n1.\nEnrichment\nPrograms\n\n \n\nThese\ncamps are for the informal learning market and are designed to be highly engaging for students while easily administered by the instructor.\nThe Company offers approximately 36 different enrichment programs and typically develops at least two (2) new programs each year. Some\nof the more popular programs include *Rockin’ Robots; Ready, Set, Drone!; Cubelets BOT Builder; Simple Machines; Drone Designers;\nCoding with Drones; Pirate Camp; Dirt Camp; and Claymation.*\n\n \n\n \n2.\nDiscover\nSeries Products\n\n \n\nThese\nproducts are designed for the makerspace environment and include engaging STEM activities that motivate students to pursue educational\npathways toward STEM careers. The Discover Series includes *Discover Podcasting; Discover STEM Dynamic Duo; and Discover Digital Video\nLab.*\n\n \n\n \n3.\nBrickLAB\nProducts\n\n \n\nThese\nproducts are designed for the grade school market and use the Company’s proprietary bricks (which are Lego compatible) and curriculum\nto engage students to explore, imagine and create within a STEM education framework. The Company offers a variety of grade-specific BrickLAB\nproducts.\n\n \n\n \n4.\nDiscover\nDrones, Add-on Drone Packages and Ala Carte Drone Items\n\n \n\nThese\nproducts are designed around using drones as a platform for STEM education and career exploration. These titles include the *Discover\nDrones* series of Products; *Discover Drones Indoor Coding Bundle; Discover Drones Indoor Racing Add-On; Discover Drones Outdoor\nPractice Add-on*; and all the spare parts and ala carte drone items offered in the Company’s comprehensive drone packages.\n\n \n\n24\n\n \n\n \n\n \n5.\nSTEAMventures\nBUILD Activity Book\n\n \n\nThese\nseries of activity books are designed for the TK-3 market. The series includes 12 different issues. Instructor guides and/or family engagement\nguides are included. The Company also provides the necessary bricks for the builds in the activity books as a separate, but related product.\n\n \n\n \n6.\nProfessional\nDevelopment Training\n\n \n\nThe\nCompany offers professional development trainings, for a fee, to educators who are implementing the Company’s products in their\nclassroom.\n\n \n\nThe\nCompany intends to continue developing STEM education products that address demand from large markets.\n\n \n\nAccounting\nMethod\n\n \n\nThe\nCompany’s financial statements are prepared using the accrual method of accounting. The Company has elected a March 31st\nfiscal year end.\n\n \n\n*Cash\nand Cash Equivalents*\n\n \n\nCash\nand cash equivalents, totalling $2,674,538 and $3,223,147 at March 31, 2026, and March 31, 2025, respectively, consist of operating and\nsavings accounts. For purposes of the statements of cash flows, the Company considers all highly-liquid investments with original maturities\nof three (3) months or less at date of purchase to be cash equivalents.\n\n \n\n*Use\nof Estimates*\n\n \n\nThe\npreparation of these financial statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management\nto make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities\nat the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results\ncould differ from those estimates. The Company’s significant estimates include reserves related to accounts receivable and inventory,\nand the valuation allowance related to deferred tax assets.\n\n \n\n*Concentration\nof Credit Risks and Significant Customers*\n\n \n\nThe\nCompany extends credit to customers and is therefore subject to credit risk. Financial instruments that potentially subject the Company\nto concentration of credit risk consist primarily of trade receivables. In the normal course of business, the Company provides credit\nterms to its customers. Accordingly, the Company performs ongoing credit evaluations of its customers and maintains allowances for possible\nlosses which, when realized, have been within the range of management’s expectations. An allowance for credit losses is recorded\nto account for potential bad debts. Estimates are used in determining the allowance for credit losses and are based upon an assessment\nof selected accounts, historic averages, and as a percentage of remaining accounts receivable by aging category. In determining these\npercentages, the Company evaluates historical write-offs, and current trends in customer credit quality, as well as changes in credit\npolicies. The Company generally does not require collateral from its customers. The Company has established an allowance for credit losses\nof $41,889 as of March 31, 2026, and $38,027 as of March 31, 2025.\n\n \n\nThe\nfollowing Table shows the Company’s concentration of credit risk, sorted by accounts receivable as of March 31, 2026, and 2025.\n\nSCHEDULE\nOF CONCENTRATION OF CREDIT RISK \n\n  \n2026 % of  \n3/31/2026  \n2025 % of  \n3/31/2025 \n\n  \nRevenue  \n% of A/R  \nRevenue  \n% of A/R \n\nCustomer A \n 2.8% \n 24.8% \n 0.0% \n 0.0%\n\nCustomer B \n 5.8% \n 15.9% \n 8.7% \n 24.5%\n\nCustomer C \n 1.5% \n 14.6% \n 1.8% \n 22.2%\n\nCustomer D \n 5.2% \n 11.6% \n 7.9% \n 0.0%\n\nCustomer E \n 2.3% \n 3.9% \n 0.1% \n 0.0%\n\n \n\n25\n\n \n\n \n\nThe\nfollowing Table shows the Company’s concentration of credit risk, sorted by revenue for fiscal years 2026 and 2025.\n\n \n\n  \n2026 % of  \n3/31/2026  \n2025 % of  \n3/31/2025 \n\n  \nRevenue  \n% of A/R  \nRevenue  \n% of A/R \n\nCustomer F \n 6.1% \n 2.4% \n 3.3% \n 0.0%\n\nCustomer B \n 5.8% \n 15.9% \n 8.7% \n 24.5%\n\nCustomer G \n 5.3% \n 3.8% \n 4.6% \n 2.8%\n\nCustomer D \n 5.2% \n 0.0% \n 7.9% \n 0.0%\n\nCustomer H \n 3.4% \n 0.0% \n 0.0% \n 0.0%\n\n \n\n*Concentration\nof Credit Risk of Cash Deposits*\n\n \n\nWe\nhave three (3) operating accounts at two (2) different banks. We have a checking and depository account at one bank and a checking account\nat another bank. From time to time, cash balances in these accounts exceed the $250,000 FDIC insurance limit. However, these instances\noccur infrequently as we strive to maintain balances below the $250,000 limit in each of these accounts. We also have a Vanguard money\nmarket account where we invest our cash assets that are in excess of our working capital needs. The Vanguard money market account is\nnot subject to FDIC insurance and invests exclusively in repurchase agreements and short-term U.S. government securities. We also have\na Schwab account that is used to make open market purchases of our common stock from time to time. This account holds cash, that is invested\nin a government money market fund, which is used to fund these purchases.\n\n \n\n*Inventory*\n\n \n\nFinished\ngoods inventory is composed of items produced in-house, as well as items from outside suppliers. These items include, but are not limited\nto, Fischertechnik® manipulatives, Brick manipulatives, drone components, robotics components, school supplies, curriculum, and other\nmiscellaneous items used in our various labs. Our inventory is carried at the lower of cost or net realizable value and valued using\nthe average cost method for each item.\n\n \n\nWhen\nindicators of inventory impairment exist, the Company measures the carrying value of the inventory against its market value, and if the\ncarrying value exceeds the market value, the inventory value is adjusted accordingly. The Company has established a provision for excess\nand obsolete inventory reserve of $2,646 as of March 31, 2026, and $3,981 as of March 31, 2025.\n\n \n\n*Property,\nPlant and Equipment*\n\n \n\nDepreciation\non property and equipment is computed using the straight-line method over the estimated useful life of the asset. The Company had fully\ndepreciated property and equipment prior to March 31, 2018. Beginning in fiscal year 2022 through the current reporting period, the Company\npurchased various warehouse and office equipment for $160,562 and recognized $75,689 in depreciation of that equipment for a total property\nand equipment of $84,873 as of March 31, 2026. As of March 31, 2025, property and equipment was $97,213, which was net of $44,619 in\ndepreciation recognized.\n\n \n\nSoftware\nhas been fully depreciated as of March 31, 2026, and March 31, 2025.\n\n \n\n*Impairment\nof Long-Lived Assets*\n\n \n\nLong-lived\nassets are reviewed for impairment annually, or when events or circumstances arise that indicate the existence of impairment for patents\nand other intangibles. There was no impairment recorded during the years ended March 31, 2026, and 2025.\n\n \n\n26\n\n \n\n \n\n*Income\nTaxes*\n\n \n\nIncome\ntaxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences\nattributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective\ntax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates\nexpected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect\non deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date.\n\n \n\nIn\nNovember 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-17, “Income Taxes (“Topic 740”)-Balance\nSheet Classification of Deferred Taxes” (“ASU 2015-17”), which requires reporting the net amount of deferred tax assets and liabilities\nas a single noncurrent item on the classified balance sheet. Before this change, the net amounts of current and noncurrent deferred tax\nassets and liabilities were reported separately.\n\n \n\nWe\naccount for income taxes in accordance with ASC 740. ASC 740 prescribes the use of the asset and\nliability method to compute the differences between the tax bases of assets and liabilities and the related financial amounts, using\ncurrently enacted tax laws. If necessary, a valuation allowance is established, based on the weight of available evidence, to reduce\ndeferred tax assets to the amount that is more likely than not to be realized. Realization of the deferred tax assets, net of deferred\ntax liabilities, is principally dependent upon achievement of sufficient future taxable income. We exercise significant judgment in determining\nour provisions for income taxes, our deferred tax assets and liabilities and our future taxable income for purposes of assessing our\nability to utilize any future tax benefit from our deferred tax assets.\n\n \n\nIn\naccordance with GAAP, the Company has analysed its filing positions in all jurisdictions where it is required to file income tax returns\nfor the open tax years in such jurisdictions. The Company currently believes that all significant filing positions are highly certain\nand that all of its significant income tax filing positions and deductions would be sustained upon audit. Therefore, the Company has\nno significant reserves for uncertain tax positions, and no adjustment to such reserves was required by GAAP. No interest or penalties\nhave been levied against the Company and none are anticipated; therefore, no interest or penalty has been included in the provision for\nincome taxes in the consolidated statements of operations. The Internal Revenue Code contains provisions which reduce or limit the availability\nand utilization of net operating loss (“NOL”) carry forwards in the event of a more than a 50-percentage point change in\nownership. If such an ownership change occurs with the Company, the use of these net operating losses could be limited.\n\n \n\nThe\ntable below details the years that remain open to tax examinations:\n\nSCHEDULE\nOF INCOME TAX EXAMINATION \n\nTax Year \nFiscal Year End \nFiled Date \nOpen Through\n\n2024 \n3/31/2025 \n11/24/2025 \n11/24/2028\n\n2023 \n3/31/2024 \n8/26/2024 \n8/26/2027\n\n2022 \n3/31/2023 \n8/23/2023 \n8/23/2026\n\n \n\n*Revenue\nRecognition*\n\n \n\nThe\nCompany accounts for revenue in accordance with FASB ASC 606, *Revenue from Contracts with Customers*, which we adopted on April\n1, 2018. Revenue amounts presented in our financial statements are recognized net of sales tax, value-added taxes, and other taxes. Amounts\nreceived as prepayment on future products or services are recorded as unearned revenues and recognized as income when the product is\nshipped, or service performed.\n\n \n\nThe\nCompany had deferred revenue of $21,240 as of March 31 2026, related to contractual commitments with customers where the performance\nobligation will be satisfied within the fiscal year ending March 31, 2027. The revenue associated with these performance obligations\nis recognized as the obligation is satisfied. The Company had $20,026 of deferred revenue as of March 31, 2025.\n\n \n\n27\n\n \n\n \n\nThe\nfollowing table presents the changes in the Company’s deferred revenue balance for the years ended March 31, 2026, and 2025.\n\nSCHEDULE\nOF DEFERRED REVENUE \n\n  \nMarch 31, 2026  \nMarch 31, 2025 \n\nDeferred revenue beginning balance \n$20,026  \n$14,549 \n\nConsideration received from customers \n 27,415  \n (20,724)\n\nRevenue recognized during the period \n (26,201) \n 26,201 \n\nDeferred revenue ending balance \n$21,240  \n$20,026 \n\n \n\nMost\nof our contracts with customers contain transaction prices with fixed consideration; however, some contracts may contain variable consideration\nin the form of discounts, rebates, refunds, credits, price concessions, incentives, penalties and other similar items. When a contract\nincludes variable consideration, we evaluate the estimate of variable consideration to determine whether the estimate needs to be constrained;\ntherefore, we include the variable consideration in the transaction price only to the extent that it is probable that a significant reversal\nof the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently\nresolved. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer.\nThis can result in recognition of revenue over time as we perform services or at a point in time when the deliverable is transferred\nto the customer, depending on an evaluation of the criteria for over time recognition in FASB ASC 606. For certain fixed-fee per transaction\ncontracts, such as delivering training courses or conducting workshops, revenue is recognized during the period in which services are\ndelivered in accordance with the pricing outlined in the contracts.\n\n \n\n*Stock-Based\nCompensation*\n\n \n\nWe\nrecognize stock-based compensation expense under the provisions of ASC 718, Compensation—Stock Compensation (“ASC 718”).\nWe use the Black-Scholes option pricing model to calculate the fair value of stock options at their respective grant date. The use of\noption valuation models requires the input of highly subjective assumptions, including the expected stock price volatility and the expected\nterm of the option. The fair value of restricted stock awards is the fair market value on the date of grant. We recognize these compensation\ncosts on a straight-line basis over the requisite service period, which is generally the vesting period of the award.\n\n \n\nDuring\nfiscal years 2026 and 2025, no performance options were issued or exercised.\n\n \n\nAs\nof March 31, 2026, and March 31, 2025, the Company had no outstanding warrants or options.\n\n \n\n*Business\nSegments and Related Information*\n\n \n\nGAAP\nestablishes standards for the way public business enterprises are to report information about operating segments in annual financial\nstatements and requires enterprises to report selected information about operating segments in interim financial reports issued to shareholders.\nIt also establishes standards for related disclosure about products and services, geographic areas and major customers. The Company currently\noperates as one (1) business segment.\n\n \n\n*Recently\nAdopted Accounting Pronouncements*\n\n \n\nBeginning\nin fiscal year 2025 annual reporting, we adopted Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (“Topic 280”): Improvements\nto Reportable Segment Disclosures (“ASU 2023-07”) that was issued by the FASB. This new standard requires an enhanced disclosure of significant\nsegment expenses on an annual basis.\n\n \n\nBeginning\nin fiscal year 2026 annual reporting, we adopted Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements\nto Income Tax Disclosures. This new standard requires enhanced annual disclosures primarily through greater disaggregation in our effective\ntax rate reconciliation and expanded tabular information regarding income taxes paid. We adopted the amendments on a prospective basis.\nThe adoption of this standard only resulted in modified financial statement disclosures and did not have a material impact on our consolidated\nfinancial position, results of operations, or cash flows.\n\n \n\n28\n\n \n\n \n\n*Reclassifications*\n\n \n\nCertain\nreclassifications of tax expenses and tax provisions have been made to the financial statements for the year ended March 31, 2025, to\nconform to the financial presentation for the year ended March 31, 2026. These reclassifications had no effect on the net income or cash\nflows as previously reported.\n\n \n\n*Operating\nSegments and Related Disclosures*\n\n \n\nWe\nmanage our Company as one (1) reportable operating segment, STEM Supplies and Curriculum. The segment information aligns with how the\nCompany’s Chief Operating Decision Maker (“CODM”) reviews and manages our business. The Company’s CODM is the\nCompany’s President.\n\n \n\nFinancial\ninformation and annual operating plans and forecasts are prepared and reviewed by the CODM at a consolidated level. The CODM assesses\nperformance for the STEM Supplies and Curriculum segment and decides how to better allocate resources based on net income reported on\nthe Statements of Operations. The Company’s objective in making resource allocation decisions is to optimize the financial results.\nThe accounting policies of our STEM Supplies and Curriculum segment are the same as those described in the summary of significant account\npolicies herein.\n\n \n\nFor\nsingle reportable segment-level financial information, total assets, and significant non-cash transactions, see our Financial Statements.\n\n \n\n*Net\nEarnings (Loss) Per Share of Common Stock*\n\n \n\nThe\nCompany calculates net income (loss) per share in accordance with ASC 260, Earnings Per Share (“ASC 260”). Under ASC 260,\nbasic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares\noutstanding during the reporting period. The weighted average number of shares of common stock outstanding includes vested restricted\nstock awards. Diluted net income (loss) per share (“EPS”) reflects the potential dilution that could occur assuming exercise\nof all dilutive unexercised stock options and warrants. The dilutive effect of these instruments was determined using the treasury stock\nmethod. Under the treasury stock method, the proceeds received from the exercise of stock options and restricted stock awards, the amount\nof compensation cost for future service not yet recognized by the Company and the amount of tax benefits that would be recorded as income\ntax expense when the stock options become deductible for income tax purposes are all assumed to be used to repurchase shares of the Company’s\ncommon stock.\n\n \n\nCommon\nstock outstanding reflected in the Company’s balance sheets includes “restricted” stock awards outstanding. Securities\nthat may participate in undistributed net income with common stock are considered participating securities. The computation of diluted\nearnings per share does not assume exercise or conversion of securities that would have an anti-dilutive effect. The following schedule\npresents the calculation of basic and diluted net income per share:\n\nSCHEDULE\nOF BASIC AND DILUTED NET INCOME \n\n  \n2026  \n2025 \n\n  \nFor the Years Ended March 31, \n\n  \n2026  \n2025 \n\nNet Income per common Share: \n    \n   \n\nBasic \n$0.03  \n$0.09 \n\nDiluted \n$0.03  \n$0.09 \n\n  \n    \n   \n\nWeighted average number of common shares outstanding Basic \n 9,914,691  \n 10,320,469 \n\n  \n    \n   \n\nWeighted average number of common shares outstanding Fully Diluted \n 9,914,691  \n 10,320,469 \n\n \n\nNet\nIncome for the years ended March 31, 2026, and 2025, was $253,182 and $946,865, respectively.\n\n \n\nAs\nof March 31, 2026, and March 31, 2025, the Company had no outstanding dilutive instruments.\n\n \n\n29\n\n \n\n \n\n*Recently\nIssued Accounting Pronouncements*\n\n \n\nThe\nCompany has reviewed recent accounting pronouncements and has determined that they will not significantly impact the Company’s\nresults of operations or financial position.\n\n \n\n**NOTE\n2 – BUSINESS CONDITION**\n\n \n\nAs\nof March 31, 2026, the Company had $2.7 million in cash, $2.1 million in inventory, and $0.7 million in accounts receivable, with no\ndebt. Management strongly believes that the Company can sustain its operations over the course of the next 12 months with the cash it\nhas on hand, and with the revenue and associated profit generated from the sales expected over the course of the next 12 months, especially\ngiven the Company’s large cash, inventory, and accounts receivable balances.\n\n \n\n**NOTE\n3 – ACCOUNTS RECEIVABLE**\n\n \n\nIn\nthe Company’s normal course of business, the Company provides credit terms to its customers, which generally range from net 15\nto 45 days. The Company performs ongoing credit evaluations of its customers. The Company established an allowance for credit losses\nof $41,889 at March 31, 2026, and $38,027 as of March 31, 2025.\n\n \n\n**NOTE\n4 – ACCOUNTS RECEIVABLE, OTHER RECEIVABLES**\n\n \n\nOther\nReceivables include receivables due to the Company derived from activities outside of its typical business transactions. As of March\n31, 2026, the Company had $3,227 of other receivables outstanding. As of March 31, 2025, the Company had $55 of other receivables outstanding.\n\n \n\n**NOTE\n5 - PREPAID EXPENSES**\n\n \n\nPrepaid\nexpenses for the periods are as follows:\n\n \n\nSCHEDULE OF PREPAID EXPENSES\n\n  \nMarch 31, 2026  \nMarch 31, 2025 \n\nPrepaid insurance \n$13,922  \n$11,960 \n\nPrepaid tradeshows \n 4,800  \n 13,362 \n\nPrepaid inventory \n 79,808  \n 178,660 \n\nPrepaid software \n 42,359  \n 31,612 \n\nPrepaid other \n 38,980  \n 11,828 \n\nTotal Prepaid Expenses \n$179,869  \n$247,422 \n\n \n\n \n\n**NOTE\n6 - COMMON AND PREFERRED STOCK TRANSACTIONS**\n\n \n\n \na.\nCommon\nStock\n\n \n\nThe\nCompany has 12,000,000 authorized shares of common stock, no par value. At March 31, 2026, the total common shares issued was 9,781,828\nand the total common shares outstanding was 9,707,960. As of March 31, 2025, the total common shares issued and outstanding was 10,182,853.\n\n \n\nDuring\nthe years ended March 31, 2026, and 2025, the Company had no option expense.\n\n \n\nDuring\nthe year ended March 31, 2026, the Company issued 6,668 shares of Rule 144 “restricted” common stock to Sean P. Iddings,\nour independent Board member as compensation for his services. During the year ended March 31, 2025, no common stock was issued for Board\nservices or any other reason.\n\n \n\n30\n\n \n\n \n\nDuring\nthe year ended March 31, 2026, the Company made the following repurchase transactions:\n\n \n\nSCHEDULE\nOF COMMON STOCK REPURCHASE TRANSACTIONS\n\nDate \nShares  \nPrice  \nTotal Consideration \n\n5/20/2025 \n 23,747  \n$1.68  \n$39,894 \n\n5/22/2025 \n 8,333  \n$1.63  \n$13,607 \n\n7/7/2025 \n 83,333  \n$1.44  \n$120,007 \n\n7/16/2025 \n 16,666  \n$1.32  \n$22,007 \n\n7/21/2025 \n 1,583  \n$1.14  \n$1,802 \n\n7/22/2025 \n 1,917  \n$1.19  \n$2,284 \n\n7/23/2025 \n 2,000  \n$1.13  \n$2,263 \n\n7/24/2025 \n 2,167  \n$1.08  \n$2,347 \n\n7/25/2025 \n 2,167  \n$1.07  \n$2,321 \n\n7/28/2025 \n 201,514  \n$1.08  \n$217,400 \n\n7/29/2025 \n 988  \n$1.32  \n$1,303 \n\n8/22/2025 \n 5,458  \n$1.56  \n$8,516 \n\n9/19/2025 \n 4,167  \n$1.56  \n$6,507 \n\n9/30/2025 \n 8,647  \n$1.38  \n$11,933 \n\n10/28/2025 \n 250  \n$1.50  \n$383 \n\n12/1/2025 \n 10,873  \n$1.34  \n$14,620 \n\n12/4/2025 \n 417  \n$1.44  \n$600 \n\n12/8/2025 \n 2,031  \n$1.50  \n$3,046 \n\n12/10/2025 \n 14,123  \n$1.32  \n$18,643 \n\n12/10/2025 \n 133  \n$1.32  \n$176 \n\n12/12/2025 \n 458  \n$1.47  \n$676 \n\n12/19/2025 \n 2,500  \n$1.44  \n$3,607 \n\n12/23/2025 \n 917  \n$1.56  \n$1,431 \n\n12/29/2025 \n 1,571  \n$1.56  \n$2,458 \n\n1/9/2026 \n 1,667  \n$1.59  \n$2,647 \n\n1/26/2026 \n 35,566  \n$1.38  \n$49,081 \n\n2/2/2026 \n 1,110  \n$1.62  \n$1,797 \n\n2/11/2026 \n 1,250  \n$1.26  \n$1,575 \n\n2/19/2026 \n 1,667  \n$1.50  \n$2,505 \n\n2/26/2026 \n 16,667  \n$1.44  \n$24,007 \n\n3/13/2026 \n 8,134  \n$1.61  \n$13,135 \n\n3/27/2026 \n 11,207  \n$1.68  \n$18,834 \n\n3/31/2026 \n 8,333  \n$1.79  \n$14,907 \n\n  \n    \n    \n   \n\nTotal \n 481,561  \n    \n$626,319 \n\n \n\nDuring\nthe year ended March 31, 2026, the Company cancelled 319,681 shares of Treasury stock.\n\n \n\nDuring\nthe year ended March 31, 2025, the Company repurchased 211,977 shares common stock for total consideration of $547,713.\n\n \n\n \nb.\nPreferred\nStock\n\n \n\nThe\nCompany has 20,000,000 authorized shares of preferred stock. As of March 31, 2026, and March 31, 2025, there were no preferred shares\nissued or outstanding.\n\n \n\nAs\nof March 31, 2026, and 2025, the Company had no dilutive instruments outstanding.\n\n \n\n**NOTE\n7 – NOTES PAYABLE**\n\n \n\nThe\nCompany had no notes payable outstanding as of March 31, 2026, and March 31, 2025.\n\n** **\n\n31\n\n \n\n** **\n\n**NOTE\n8 – COMMITMENTS AND CONTINGENCIES**\n\n \n\nLeases\n\n \n\nThe\nCompany adopted ASC 842 as of November 9, 2019, using a modified retrospective transition approach for all leases existing at December\n31, 2019, the date of the initial application. Consequently, financial information will not be updated, and disclosures required under\nASC 842, will not be provided for dates and periods before January 1, 2020.\n\n \n\nThe\nCompany determines if a contract is a lease or contains a lease at inception. Right of use assets related to operating type leases are\nreported in other noncurrent assets and the present value of remaining lease obligations is reported in accrued and other liabilities\nand other noncurrent liabilities on the Balance Sheets. The Company does not currently have any financing type leases.\n\n \n\nOperating\nlease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement\ndate. The Company’s leases do not provide an implicit rate. The Company determines the incremental borrowing rates applicable to\nthe economic environment based on the information available at commencement date, in determining the present value of future payments.\nThe right of use asset for operating leases\n\n \n\nis\nmeasured using the lease liability adjusted for the impact of lease payments made prior to commencement, lease incentives received, initial\ndirect costs incurred and any asset impairments. Lease terms may include options to extend or terminate the lease when it is reasonably\ncertain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the term\nof the lease.\n\n \n\nThe\nCompany re-measures and reallocates the consideration in a lease when there is a modification of the lease that is not accounted for\nas a separate contract. The lease liability is re-measured when there is a change in the lease term or a change in the assessment of\nwhether the Company will exercise a lease option. The Company assesses right of use assets for impairment in accordance with its long-lived\nasset impairment policy.\n\n \n\nThe\nCompany accounts for lease agreements with contractually required lease and non-lease components on a combined basis. Lease payments\nmade for cancellable leases, variable amounts that are not based on an observable index and lease agreements with an original duration\nof less than twelve months are recorded directly to lease expense.\n\n \n\n \na.\nWarehouse\n\n \n\nThe\nCompany leases a 20,880 square foot warehouse facility located at 1135 N. Hickory Ave, Suite 130, Meridian, ID 83642, under a non-cancelable\nlease agreement, which commenced on October 1, 2024, and expires November 30, 2029. The first two (2) payments were deferred. This lease\nis accounted for as an operating lease. Monthly lease rates excluding triple net expenses started at $15,660 and increase by 3% from\nthe previous amount in the month of December each year.\n\n \n\n \nb.\nOffice\n\n \n\nThe\nCompany leases a 5,016 square foot office facility located at 941 S. Industry Way, Meridian, Idaho, 83642 under a non-cancelable lease\nagreement, which commenced on October 21, 2024, and expires November 30, 2029. The first payment was deferred. The lease is accounted\nfor as an operating lease. Monthly lease rates excluding triple net expenses started at $5,225 and increase by 3% from the previous amount\nin the month of December each year.\n\n \n\n \nc.\nEquipment\n\n \n\nThe\nCompany leased a production printer for 63 months commencing on November 3, 2023. The first three (3) payments were deferred, with the\nfirst payment due February 3, 2024. Equipment lease expense was $57,215 for the years ended March 31, 2026, and 2025.\n\n \n\n32\n\n \n\n \n\nAs\nof March 31, 2026, accounted for and presented under ASC 842 guidance, the future minimum lease payments on operating leases, were as\nfollows:\n\n \n\nTotal\nminimum lease obligation over the next five (5) years\n\n SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS\n\nFiscal Year \nAmount \n\n2027 \n$315,803 \n\n2028 \n 315,802 \n\n2029 \n 315,802 \n\n2030 \n 224,730 \n\n2031 \n 0 \n\nLess: imputed interest / present value discount \n 193,915 \n\nTotal \n$988,222 \n\n \n\nSCHEDULE OF LEASE PAYABLE\n\n  \nBalance Sheet Location \nMarch 31, 2026 \n\nRight of use assets \nOther noncurrent assets \n$934,064 \n\n  \n  \n   \n\nLease payable \nCurrent liabilities \n$227,718 \n\nLease payable, Current liabilities \nCurrent liabilities \n$227,718 \n\nLease payable \nLong-term liabilities \n 760,504 \n\nLease payable, Long-term liabilities \nLong-term liabilities \n 760,504 \n\nTotal lease payable \n  \n$988,222 \n\n \n\nSupplemental\ncash flow information related to operating leases:\n\n SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES\n\n  \nMarch 31, 2026 \n\nOperating cash paid to settle lease liabilities \n$313,066 \n\nRight of use asset additions in exchange for lease liabilities \n 0 \n\n \n\n  \nMarch 31, 2026  \nMarch 31, 2025 \n\nWeighted average remaining lease term (in years) \n 3.5  \n 4.6 \n\nWeighted average discount rate \n 10% \n 10%\n\n \n\n**NOTE\n9 – ACCOUNTS PAYABLE**\n\n \n\nAccounts\npayable for the periods are as follows:\n\n SCHEDULE OF ACCOUNTS PAYABLE\n\n  \nMarch 31, 2026  \nMarch 31, 2025 \n\nAccounts payable \n$86,097  \n$24,286 \n\nCredit cards payable \n (1,781) \n 705 \n\nTotal \n$84,316  \n$24,991 \n\n \n\n**NOTE\n10 – PAYROLL LIABILITIES & ACCRUED EXPENSES**\n\n \n\nAccrued\nexpenses for the periods are as follows:\n\n SCHEDULE OF ACCRUED EXPENSES\n\n  \nMarch 31, 2026  \nMarch 31, 2025 \n\nPayroll liabilities \n$81,507  \n$128,655 \n\nSales tax payable \n 45,086  \n 32,502 \n\nState income tax payable \n (25,996) \n (4,744)\n\nAccrued expenses \n 14,985  \n 14,985 \n\nTotal \n$115,582  \n$171,398 \n\n \n\n**NOTE\n11 – INCOME TAXES**\n\n \n\nPrior\nto fiscal year 2023, the Company offset its potential tax benefit from the operating loss carry-forwards with a valuation allowance in\nthe same amount. As it became clear that the Company will more likely than not use its tax loss carry-forward amounts, the valuation\nallowance was partially removed for the fiscal year ending March 31, 2023, such that the tax benefit recognized by us in fiscal year\n2023 was $1,011,466. The valuation allowance was fully removed as of March 31, 2024, resulting in a tax benefit of $1,529,793 for fiscal\nyear 2024. Once the valuation allowance was fully removed, a provision for income taxes was disclosed. For the fiscal year ending March\n31, 2026, the Company’s provision for income taxes was ($68,273). For the fiscal year ending March 31, 2025, the Company’s\nprovision for income taxes was ($317,235).\n\n \n\n33\n\n \n\n \n\nFASB\nASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax\npositions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than\nnot to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized\ntax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of March 31, 2026. The Company\nis currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its\nposition. The Company is subject to income tax examinations by major taxing authorities since inception.\n\n \n\nThe\nCompany may be subject to potential examination by federal, state, and city taxing authorities in the areas of income taxes. These potential\nexaminations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance\nwith federal, state, and city tax laws. Management does not expect that the total amount of unrecognized tax benefits will materially\nchange over the next 12 months.\n\n \n\nAlthough\nwe believe that our tax estimates are reasonable, the ultimate tax determination involves significant judgments that could become subject\nto examination by tax authorities in the ordinary course of business. We periodically assess the likelihood of adverse outcomes resulting\nfrom these examinations to determine the impact on\n\nour\ndeferred taxes and income tax liabilities and the adequacy of our provision for income taxes. Changes in income tax legislation, statutory\nincome tax rates or future taxable income levels, among other things, could materially impact our valuation of income tax assets and\nliabilities and could cause our income tax provision to vary significantly among financial reporting periods.\n\n \n\nThe\nCompany files income tax returns in the United States, the State of Idaho and the State of California. The statute of limitations on\na Federal tax return is the due date of the tax return plus three (3) years. In the case of NOLs, the year in which the NOL was generated\nremains open up to the amount of the NOL until the statute of limitations expires on the year it was used. All required tax returns of\nthe Company due since inception have been filed. The Company does not have any unrecognized tax benefits to report in the current period.\n\n \n\nNet\ndeferred tax assets and liabilities consist of the following components as of March 31, 2026, and 2025:\n\n SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES\n\n  \n   \n  \n\n  \nMarch 31, \n\n  \n2026  \n2025 \n\nDeferred tax assets \n    \n   \n\nRight of use liabilities \n$276,702  \n$333,659 \n\nGoodwill amortization \n 9,281  \n 11,201 \n\nCharitable Contribution carryover \n -  \n 700 \n\nNOL carryover \n 2,200,040  \n 2,253,412 \n\nTotal deferred tax assets \n 2,486,023  \n 2,598,972 \n\n  \n    \n   \n\nDeferred tax liabilities \n    \n   \n\nRight of use assets \n (261,538) \n (319,261)\n\nDepreciation \n (2,071) \n (2,850)\n\nTotal deferred tax liabilities \n (263,609) \n (322,111)\n\n  \n    \n   \n\nNet deferred tax assets \n$2,222,414  \n$2,276,861 \n\n \n\n34\n\n \n\n \n\nThe\nreconciliation of the Company’s net income taxes for fiscal years 2026, and 2025 are as follows:\n\n SCHEDULE\nOF RECONCILIATION NET INCOME TAXES\n\n  \n    \n    \n    \n   \n\n  \nMarch 31, 2026  \nMarch 31, 2025 \n\nCurrent federal \n$-  \n    \n$-  \n   \n\nCurrent state \n 13,827  \n    \n 52,837  \n   \n\nDeferred federal \n 49,151  \n    \n 243,564  \n   \n\nDeferred state \n 5,295  \n    \n 20,834  \n   \n\nTotal tax provision \n$68,273  \n    \n$317,235  \n   \n\n  \n    \n    \n    \n   \n\nNet income before tax provision \n 321,455  \n    \n 1,264,100  \n   \n\n  \n    \n    \n    \n   \n\nTax at federal statutory rate \n 67,467  \n 21.00% \n 265,461  \n 21.00%\n\nNon-deductible expenses \n 3,857  \n 1.20% \n 6,295  \n 0.50%\n\nTemporary differences \n (281) \n -0.09% \n 16,028  \n 1.27%\n\nState income taxes, net of federal benefit \n 19,184  \n 5.97% \n 80,675  \n 6.38%\n\nReturn-to-provision adjustments/other \n (21,954) \n -6.83% \n (51,224) \n -4.05%\n\nTotal income tax provision \n 68,273  \n 21.25% \n 317,235  \n 25.10%\n\n \n\nThe\nCompany files income tax returns in the United States, the State of Idaho, and the State of California. The statute of limitations on\na Federal tax return is the due date of the tax return plus three (3) years. In the case of NOLs, the year in which the NOL was generated\nremains open up to the amount of the NOL until the statute of limitations expires on the year it was used. All required tax returns of\nthe Company due since inception have been filed.\n\n \n\nSummary\nof Federal Operating Loss Carryforwards\n\n SCHEDULE OF FEDERAL OPERATING LOSS CARRYFORWARDS\n\n  \n   \n\nUnused operating loss carryforward March 31, 2025 \n$7,911,114 \n\nReturn to Provision \n$89,419 \n\nTotal \n$8,000,533 \n\nOperating loss carryforwards realized \n$324,660 \n\nUnused operating loss carryforward March 31, 2026 \n$7,675,873 \n\n \n\n**NOTE\n12 - SUBSEQUENT EVENTS**\n\n \n\nOn\nApril 1, 2026, the Company issued 20,000 shares of Rule 144 “restricted” common stock to Sean Iddings, our Independent board\nmember, for services rendered in that capacity for the quarter ended March 31, 2026. Accounting for the effects of the reverse stock\nsplit, the number of shares issued to Mr. Iddings was 1,667.\n\n \n\nOn\nApril 6, 2026, we purchased 219,106 shares of our common stock in the open market at $0.125 per share. The total amount of the transaction\nwas $27,395, which included a $7 commission. Accounting for the effects of the reverse stock split, the number of shares purchased in\nthis transaction was 18,259.\n\n \n\nOn\nApril 15, 2026, we purchased 167,999 shares of our common stock in the open market at $0.125 per share. The total amount of the transaction\nwas $21,007, which included a $7 commission. Accounting for the effects of the reverse stock split, the number of shares purchased in\nthis transaction was 14,000.\n\n \n\nOn\nApril 21, 2026, we purchased 67 shares of our common stock in the open market at $0.1355 per share. The total amount of the transaction\nwas $16, which included a $7 commission. Accounting for the effects of the reverse stock split, the number of shares purchased in this\ntransaction was 6.\n\n \n\nOn\nMay 4, 2026, the one (1) for 12 reverse split of our outstanding common stock, which was approved at our Special Meeting of Shareholders\non April 20, 2026, became effective.\n\n \n\nOn\nMay 15, 2026, we purchased 291 shares of our common stock in the open market at $1.35 per share. The total amount of the transaction\nwas $400 which included a $7 commission.\n\n \n\n35"}