Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The Company has incurred losses since inception. A current state income tax provision of $2,000 has been recorded for state minimum and net worth taxes. Significant components of the Company’s net deferred tax assets are shown in the table below.

 

                 
    Year Ended June 30,  
    2023     2022  
Deferred Tax Assets:                
Net operating loss carryforwards   $ 20,673,000     $ 20,654,000  
Research & development credit carryforward     27,000       27,000  
Capitalized research and development expenses     1,405,000       -  
Stock compensation     971,000       1,636,000  
Lease liability     736,000       802,000  
Other, net     776,000       559,000  
Gross deferred tax assets     24,588,000       23,678,000  
Less Valuation allowance     (23,923,000 )     (22,951,000 )
Total deferred tax assets     665,000       727,000  
                 
Deferred Tax Liabilities:                
Right of use asset     (665,000 )     (727,000 )
Total deferred tax liabilities     (665,000 )     (727,000 )
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, 2023 and 2022, due to the following:

 

                 
    Year Ended June 30,  
    2023     2022  
Federal income taxes at 21%   $ (1,415,000 )   $ (3,278,000 )
State income taxes, net     (422,000 )     (1,090,000 )
Permanent differences and other     152,000       102,000  
Other true ups, if any     715,000       154,000  
Change in valuation allowance     972,000       4,112,000  
Provision for income taxes   $ 2,000     $ -