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INCOME TAXES
 12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

9.       INCOME TAXES:

 

The reconciliation between the expected federal income tax benefit computed by applying the Federal statutory rate to loss before income taxes and the actual benefit for taxes on loss for the years ended June 30, 2025 and 2024 is as follows:

 

        
   2025   2024 
Expected income tax benefit at statutory rate  $(500,000)  $(2,455,000)
State taxes, net of federal benefit   (87,000)   (428,000)
Permanent differences and other   —    4,000 
Expiration of net operating allowances   170,000    371,000 
Change in valuation allowance   417,000    2,508,000)
Income tax benefit  $—   $— 

 

The Company has net operating loss carry-forwards (“NOLs”) for tax purposes of approximately $32,879,000 as of June 30, 2025. These NOLs expire on various dates through 2043.

The utilization of the NOLs may be limited under Section 382 of the Internal Revenue Code.

 

The Company’s deferred tax assets for the years ended June 30, 2025 and 2024 are estimated as follows:

 

        
   2025   2024 
NOL carryforwards (Federal and State)  $6,905,000   $8,936,000 
Stock-based compensation   5,659,000    5,451,000 
Impairment   3,673,000    3,673,000 
Business interest   454,000    377,000 
Deferred compensation   (719,000)   (641,000)
Capitalized research and development   49,000    49,000 
Gross deferred tax assets   16,021,000    17,845,000 
Valuation allowance   (16,021,000)   (17,845,000)
Net deferred tax assets  $—   $— 

 

 

The Company has provided a valuation allowance of 100% of its net deferred tax asset due to the uncertainty of generating future profits that would allow for the realization of such deferred tax assets