Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.2
Income Taxes (Tables)
12 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
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,  
    2020     2019  
Deferred Tax Assets:                
Net operating loss carryforwards   $ 12,865,000     $ 10,028,000  
Stock compensation     1,652,000       1,407,000  
Interest expense Sec. 163     261.000       55,000  
Lease liability     1,004,000       -  
Other, net     353,000       146,000  
Net deferred tax assets     16,135,000       11,636,000  
Valuation allowance for deferred tax assets     (15,174,000 )     (11,636,000 )
Total deferred tax assets   $ 961,000      $ -  
                 
Deferred Tax Liabilities:                
Right of use asset   $ (961,000 )   $  -  
Total deferred tax liabilities     (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, 2020 and 2019, due to the following:

 

    Year Ended June 30,  
    2020     2019  
Federal income taxes at 21%   $ (3,011,000 )   $ (2,607,000 )
State income taxes, net     (1,001,000 )     (867,000 )
Permanent differences and other     474,000       450,000  
Other true ups, if any     -       (23,000 )
Change in federal tax rate     -       -  
Change in valuation allowance     (3,538,000 )     (3,047,000 )
Provision for income taxes   $ -     $ -