| Schedule of Deferred Tax Assets and Liabilities |
The Company has incurred losses
since inception, so no current income tax provision or benefit has been recorded. Significant components of the Company’s net deferred
tax assets are shown in the table below.
| |
|
Year Ended June 30, |
|
| |
|
2021 |
|
|
2020 |
|
| Deferred Tax Assets: |
|
|
|
|
|
|
|
|
| Net operating loss carryforwards |
|
$ |
16,111,000 |
|
|
$ |
12,865,000 |
|
| Research & development credit carryforward |
|
|
27,000 |
|
|
|
- |
|
| Stock compensation |
|
|
1,696,000 |
|
|
|
1,652,000 |
|
| Interest expense Sec. 163 |
|
|
366.000 |
|
|
|
261,000 |
|
| Lease liability |
|
|
924,000 |
|
|
|
1,004,000 |
|
| Other, net |
|
|
564,000 |
|
|
|
353,000 |
|
| Net deferred tax assets |
|
|
19,688,000 |
|
|
|
16,135,000 |
|
| Valuation allowance for deferred tax assets |
|
|
(18,839,000 |
) |
|
|
(15,174,000 |
) |
| Total deferred tax assets |
|
$ |
849,000 |
|
|
$ |
961,000 |
|
| |
|
|
|
|
|
|
|
|
| Deferred Tax Liabilities: |
|
|
|
|
|
|
|
|
| Right of use asset |
|
$ |
(849,000 |
) |
|
$ |
(961,000 |
) |
| Total deferred tax liabilities |
|
|
(849,000 |
) |
|
|
(961,000 |
) |
| Net deferred tax liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The provision for income taxes
on earnings subject to income taxes differs from the statutory federal rate at June 30, 2021 and 2020, due to the following:
| |
|
Year Ended June 30, |
|
| |
|
2021 |
|
|
2020 |
|
| Federal income taxes at 21% |
|
$ |
(2,686,000 |
) |
|
$ |
(3,011,000 |
) |
| State income taxes, net |
|
|
(894,000 |
) |
|
|
(1,001,000 |
) |
| Permanent differences and other |
|
|
(58,000 |
) |
|
|
474,000 |
|
| Other true ups, if any |
|
|
(27,000 |
) |
|
|
- |
|
| Change in federal tax rate |
|
|
- |
|
|
|
- |
|
| Change in valuation allowance |
|
|
(3,665,000 |
) |
|
|
(3,538,000 |
) |
| Provision for income taxes |
|
$ |
- |
|
|
$ |
- |
|
|