v3.25.2
Income Tax
 12 Months Ended
Jun. 30, 2025
Income Tax [Abstarct]  
Income Tax

Note 14 - Income Tax

 

The prima facie income tax benefit on pre-tax accounting loss from operations reconciles to the income tax benefit in the financial statements as follows:

 

   June 30,
2025		   June 30,
2024		 
   (in thousands) 
Accounting loss before tax   (46,885)   (18,415)
Income tax benefit at the applicable tax rate of 30%   (14,066)   (5,525)
Non-deductible expenses   4,511    6,545 
Non-assessable income   (1,527)   (3,431)
Deferred tax assets not recognized   1,143    927 
Income tax benefit   
-
    (30)
Unrecognized Deferred Tax Asset          
Deferred tax asset not recognized in the financial statements:          
Unused tax losses   10,648    6,887 
Net unrecognized tax benefit at 25%   11,790    7,813 

 

ASC 740 requires that the tax benefit of net operating losses, temporary differences and credit carry forwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carry forward period. Because of the Company’s recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance. As of June 30, 2025 and 2024, the Company established a valuation allowance against its deferred tax assets due to the uncertainty surrounding the realization of such assets.