v3.22.2.2
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
SCHEDULE OF PROVISION FOR INCOME TAX (EXPENSE) BENEFIT

The provision for income tax (expense) benefit consists of the following:

 

For the years ended June 30,  2022   2021 
Federal          
Current tax expense  $-   $- 
Deferred tax (expense) benefit   (310,000)   1,606,000 
Federal income tax benefit   (310,000)   1,606,000 
State          
Current tax (expense)benefit   (1,000)   65,000 
Deferred tax benefit   169,000    475,000 
State and local income tax benefit   168,000    540,000 
Total income tax (expense) benefit  $(142,000)  $2,146,000 
SCHEDULE OF STATUTORY FEDERAL INCOME TAX RATE

A reconciliation of the statutory federal income tax rate to the effective tax rate is as follows:

 

For the years ended June 30,  2022   2021 
         
Statutory federal tax rate   21.0%   21.0%
State income taxes, net of federal tax benefit   2.0%   5.8%
Non-taxable PPP loan   21.7%   - 
Provision to return adjustment   8.3%   2.9%
Valuation allowance   -236.7%   -4.3%
Deferral True-Up – Justice Basis Diff in FA   180.9%   - 
Other   0.6%   3.6%
Effective income tax rate reconciliation percentage   -2.2%   29.0%
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The components of the Company’s deferred tax assets and (liabilities) as of June 30, 2022 and 2021 are as follows:

 

   2022   2021 
Deferred tax assets          
Net operating loss carryforward  $10,925,000   $9,802,000 
Investment reserve   -    671,000 
Interest expense   2,231,000    2,684,000 
Accruals and reserves   587,000    - 
Depreciation   15,646,000    - 
Other   1,800,000    1,423,000 
Deferred tax assets before valuation allowance   31,189,000    14,580,000 
Less Valuation allowance   (22,775,000)   (951,000)
Deferred tax assets after valuation allowance   8,414,000    13,629,000 
           
Deferred tax liabilities          
Basis difference in Justice   -    (5,092,000)
State taxes   (503,000)   (482,000)
Deferred Tax Liabilities   (503,000)   (5,574,000)
Net deferred tax assets  $7,911,000   $8,055,000