| SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES |
The
components of net deferred taxes are as follows:
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
| |
|
June 30, 2026 |
|
|
June 30, 2025 |
|
| |
|
June 30, 2026 |
|
|
June 30, 2025 |
|
| Deferred Tax Assets: |
|
|
|
|
|
|
|
|
| Net Operating Loss - U.S. |
|
$ |
5,698,243 |
|
|
$ |
5,206,430 |
|
| Net Operating Loss - Foreign |
|
|
8,810,502 |
|
|
|
7,293,562 |
|
| Operating lease liabilities |
|
|
353,631 |
|
|
|
18,342 |
|
| Employee benefits |
|
|
274,972 |
|
|
|
275,950 |
|
| Foreign exchange |
|
|
322,294 |
|
|
|
(80,599 |
) |
| Total deferred tax assets |
|
|
15,459,642 |
|
|
|
12,713,685 |
|
| Less: valuation allowance |
|
|
(15,119,454 |
) |
|
|
(12,698,469 |
) |
| Deferred tax assets after valuation allowance |
|
|
340,188 |
|
|
|
15,216 |
|
| |
|
|
|
|
|
|
|
|
| Deferred Tax Liabilities: |
|
|
|
|
|
|
|
|
| Operating leases, Right-of-use assets |
|
|
(340,188 |
) |
|
|
(15,216 |
) |
| Total deferred tax liabilities |
|
|
(340,188 |
) |
|
|
(15,216 |
) |
| Net deferred tax assets |
|
$ |
- |
|
|
$ |
- |
|
|
| SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION |
For
the year ended June 30, 2026, the Company adopted ASU 2023-09 on a retrospective basis. The following table depicts the significant
components of our deferred tax assets and liabilities and a reconciliation of statutory tax rates to effective tax rates for the
years ended June 30, 2026 and 2025:
SCHEDULE
OF EFFECTIVE INCOME TAX RATE RECONCILIATION
| | |
Amount | | |
Percentage | | |
Amount | | |
Percentage | |
| | |
Year Ended June 30, | |
| | |
2026 | | |
2025 | |
| | |
Amount | | |
Percentage | | |
Amount | | |
Percentage | |
| U.S. federal statutory rate applies to pretax income (loss) | |
$ | (2,664,252 | ) | |
| 21.0 | % | |
$ | (2,227,026 | ) | |
| 21.0 | % |
| Different tax rate of subsidiary | |
| (315,441 | ) | |
| 2.5 | % | |
| (82,675 | ) | |
| 0.8 | % |
| Permanent differences | |
| 848,942 | | |
| (6.7 | )% | |
| 444,887 | | |
| (4.2 | )% |
| Cumulative adjustment to deferred taxes | |
| 449,514 | | |
| (3.5 | )% | |
| (444,694 | ) | |
| 4.2 | % |
| Return to provision | |
| (327,516 | ) | |
| 2.6 | % | |
| 74,111 | | |
| (0.7 | )% |
| Change in state tax rates and other | |
| (412,232 | ) | |
| 3.2 | % | |
| (41,504 | ) | |
| 0.4 | % |
| Change in valuation allowance | |
| 2,420,985 | | |
| (19.1 | )% | |
| 2,276,901 | | |
| (21.5 | )% |
| Total income tax provision (benefit) and effective income tax rate | |
$ | - | | |
| - | % | |
$ | - | | |
| - | % |
|