| 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.
SCHEDULE
OF DEFERRED TAX ASSETS AND LIABILITIES
| |
|
|
|
|
|
|
|
|
| |
|
Year
Ended June 30, |
|
| |
|
2022 |
|
|
2021 |
|
| Deferred
Tax Assets: |
|
|
|
|
|
|
|
|
| Net
operating loss carryforwards |
|
$ |
20,654,000 |
|
|
$ |
16,111,000 |
|
| Research
& development credit carryforward |
|
|
27,000 |
|
|
|
27,000 |
|
| Stock
compensation |
|
|
1,636,000 |
|
|
|
1,696,000 |
|
| Interest
expense Sec. 163 |
|
|
- |
|
|
|
366,000 |
|
| Lease
liability |
|
|
802,000 |
|
|
|
924,000 |
|
| Other,
net |
|
|
559,000 |
|
|
|
564,000 |
|
| Gross
deferred tax assets |
|
|
23,678,000 |
|
|
|
19,688,000 |
|
| Valuation
allowance for deferred tax assets |
|
|
(22,951,000 |
) |
|
|
(18,839,000 |
) |
| Total
deferred tax assets |
|
$ |
727,000 |
|
|
$ |
849,000 |
|
| |
|
|
|
|
|
|
|
|
| Deferred
Tax Liabilities: |
|
|
|
|
|
|
|
|
| Right
of use asset |
|
$ |
(727,000 |
) |
|
$ |
(849,000 |
) |
| Total
deferred tax liabilities |
|
|
(727,000 |
) |
|
|
(849,000 |
) |
| 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, 2022 and 2021, due
to the following:
SCHEDULE
OF EFFECTIVE INCOME TAX RATE RECONCILIATION
| |
|
|
|
|
|
|
|
|
| |
|
Year
Ended June 30, |
|
| |
|
2022 |
|
|
2021 |
|
| Federal
income taxes at 21% |
|
$ |
(3,278,000 |
) |
|
$ |
(2,686,000 |
) |
| State
income taxes, net |
|
|
(1,090,000 |
) |
|
|
(894,000 |
) |
| Permanent
differences and other |
|
|
102,000 |
|
|
|
(58,000 |
) |
| Other
true ups, if any |
|
|
154,000 |
|
|
|
(27,000 |
) |
| Change
in valuation allowance |
|
|
(4,112,000 |
) |
|
|
(3,665,000 |
) |
| Provision
for income taxes |
|
$ |
- |
|
|
$ |
- |
|
|