INCOME TAXES (Tables)
|
12 Months Ended |
Jun. 30, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) |
The
Company has incurred losses since inception. A state income tax provision of $1,000 has been recorded for the year ended June 30, 2026
for state minimum and net worth taxes. The provision for the previous year was $4,000, as follows:
SCHEDULE
OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT)
| |
|
2026 |
|
|
2025 |
|
| |
|
Fiscal
year ended June 30, |
|
| |
|
2026 |
|
|
2025 |
|
| Current provision: |
|
|
|
|
|
|
|
|
| Federal |
|
$ |
- |
|
|
$ |
- |
|
| State |
|
|
1,000 |
|
|
|
4,000 |
|
| Total current |
|
|
1,000 |
|
|
|
4,000 |
|
| Deferred income tax provision: |
|
|
|
|
|
|
|
|
| Federal |
|
|
|
|
|
|
|
|
| State |
|
|
- |
|
|
|
- |
|
| Total
deferred |
|
|
- |
|
|
|
- |
|
| Total income tax provision |
|
$ |
1,000 |
|
|
$ |
4,000 |
|
|
| SCHEDULE OF PROVISION FOR INCOME TAXES |
The
provision for income taxes on earnings subject to income taxes differs from the statutory federal rate at June 30, 2026, due to the following:
SCHEDULE OF PROVISION FOR INCOME TAXES
| |
|
Amount |
|
|
% of net loss
before income taxes
|
|
| |
|
Fiscal
year ended June 30, 2026 |
|
| |
|
Amount |
|
|
% of net loss
before income taxes
|
|
| |
|
|
|
|
|
|
|
|
| U.S. federal statutory tax rate |
|
$ |
(1,564,000 |
) |
|
|
21.00 |
% |
| State income taxes, net of
federal benefit(1) |
|
|
1,000 |
|
|
|
(0.01 |
)% |
| Permanent differences and other |
|
|
|
|
|
|
|
|
| Other true ups |
|
|
|
|
|
|
|
|
| Non-taxable or non-deductible items |
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
|
105,000 |
|
|
|
(1.41 |
)% |
| Other adjustments |
|
|
17,000 |
|
|
|
(0.23 |
)% |
| Changes in valuation allowance |
|
|
317,000 |
|
|
|
(4.26 |
)% |
| Other |
|
|
-
|
|
|
|
-
|
|
| Prior period adjustments |
|
|
1,125,000 |
|
|
|
(15.11 |
)% |
| Provision for income
taxes |
|
$ |
1,000 |
|
|
|
(0.01 |
)% |
| (1) |
|
State
taxes in California make up the majority of the tax effect in this category. |
As
previously disclosed for the year ended June 30, 2025, prior to the adoption of ASU 2023-09, the provision for income taxes on earnings
subject to income taxes differs from the statutory federal rate, due to the following:
| |
|
Fiscal
year ended
June 30, 2025 |
|
| Federal income taxes at 21% |
|
$ |
(1,401,000 |
) |
| U.S. federal statutory tax rate |
|
$ |
(1,401,000 |
) |
| State income taxes, net |
|
|
(223,000 |
) |
| State income taxes, net of
federal benefit |
|
|
(223,000 |
) |
| Permanent differences and other |
|
|
178,000 |
|
| Other true ups |
|
|
425,000 |
|
| Change in valuation allowance |
|
|
1,025,000 |
|
| Changes in valuation allowance |
|
|
1,025,000 |
|
| Provision
for income taxes |
|
$ |
4,000 |
|
|
| SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES |
Significant
components of the Company’s net deferred tax assets are shown in the table below.
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
| |
|
2026 |
|
|
2025 |
|
| |
|
Fiscal
year ended June 30, |
|
| |
|
2026 |
|
|
2025 |
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
| Net operating
loss carryforwards |
|
$ |
23,674,000 |
|
|
$ |
22,222,000 |
|
| Research and development
credit carryforward |
|
|
27,000 |
|
|
|
27,000 |
|
| Capitalized research and
development expenses |
|
|
1,405,000 |
|
|
|
2,323,000 |
|
| Stock compensation |
|
|
68,000 |
|
|
|
20,000 |
|
| Disallowed interest expense |
|
|
879,000 |
|
|
|
740,000 |
|
| Lease liability |
|
|
516,000 |
|
|
|
322,000 |
|
| Other,
net |
|
|
1,610,000 |
|
|
|
2,138,000 |
|
| Gross deferred tax assets |
|
|
28,179,000 |
|
|
|
27,792,000 |
|
| Less:
valuation allowance |
|
|
(27,656,000 |
) |
|
|
(27,508,000 |
) |
| Total
deferred tax assets |
|
|
523,000 |
|
|
|
284,000 |
|
| |
|
|
|
|
|
|
|
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| Capital lease asset |
|
|
(22,000 |
) |
|
|
- |
|
| Right
of use asset |
|
|
(501,000 |
) |
|
|
(284,000 |
) |
| Total
deferred tax liabilities |
|
|
(523,000 |
) |
|
|
(284,000 |
) |
| Total net deferred tax
liabilities |
|
$ |
- |
|
|
$ |
- |
|
|