| SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES |
The
Company has incurred losses since inception. A current state income tax provision of $3,000 has been recorded for state minimum and net
worth taxes. Significant components of the Company’s net deferred tax assets and liabilities are shown in the table below.
SCHEDULE
OF DEFERRED TAX ASSETS AND LIABILITIES
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2022 |
|
| |
|
|
|
|
Restated |
|
|
Restated |
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net operating loss carryforwards |
|
$ |
21,553,000 |
|
|
$ |
20,941,000 |
|
|
$ |
20,780,000 |
|
| Research and development credit carryforward |
|
|
27,000 |
|
|
|
27,000 |
|
|
|
27,000 |
|
| Capitalized research and development expenses |
|
|
1,987,000 |
|
|
|
1,320,000 |
|
|
|
– |
|
| Stock compensation |
|
|
638,000 |
|
|
|
971,000 |
|
|
|
1,636,000 |
|
| Disallowed interest expense |
|
|
431,000 |
|
|
|
– |
|
|
|
– |
|
| Lease liability |
|
|
567,000 |
|
|
|
736,000 |
|
|
|
802,000 |
|
| Other, net |
|
|
1,785,000 |
|
|
|
1,366,000 |
|
|
|
943,000 |
|
| Gross deferred tax assets |
|
|
26,988,000 |
|
|
|
25,361,000 |
|
|
|
24,188,000 |
|
| Less valuation allowance |
|
|
(26,483,000 |
) |
|
|
(24,696,000 |
) |
|
|
(23,461,000 |
) |
| Total deferred tax assets |
|
|
505,000 |
|
|
|
665,000 |
|
|
|
727,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Right of use asset |
|
|
(505,000 |
) |
|
|
(665,000 |
) |
|
|
(727,000 |
) |
| Total deferred tax liabilities |
|
|
(505,000 |
) |
|
|
(665,000 |
) |
|
|
(727,000 |
) |
| Total 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, 2024 and 2023, due
to the following:
SCHEDULE
OF EFFECTIVE INCOME TAX RATE RECONCILIATION
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2022 |
|
| |
|
|
|
|
Restated |
|
|
Restated |
|
| Federal income taxes at 21% |
|
$ |
(1,749,000 |
) |
|
$ |
(1,625,000 |
) |
|
$ |
(3,459,000 |
) |
| State income taxes, net |
|
|
(546,000 |
) |
|
|
(485,000 |
) |
|
|
(1,151,000 |
) |
| Permanent differences and other |
|
|
241,000 |
|
|
|
152,000 |
|
|
|
102,000 |
|
| Other true ups |
|
|
270,000 |
|
|
|
725,000 |
|
|
|
(113,000 |
) |
| Change in valuation allowance |
|
|
1,787,000 |
|
|
|
1,235,000 |
|
|
|
4,621,000 |
|
| Provision for income taxes |
|
$ |
3,000 |
|
|
$ |
2,000 |
|
|
$ |
- |
|
|