INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2026

Income Tax Disclosure [Abstract]

SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT)

The Company has incurred losses since inception. A state income tax provision of $1,000 has been recorded for the year ended June 30, 2026 for state minimum and net worth taxes. The provision for the previous year was $4,000, as follows:

		2026				2025
		Fiscal year ended June 30,
		2026				2025
Current provision:
Federal		$	-			$	-
State			1,000				4,000
Total current			1,000				4,000
Deferred income tax provision:
Federal
State			-				-
Total deferred			-				-
Total income tax provision		$	1,000			$	4,000

SCHEDULE OF PROVISION FOR INCOME TAXES

The provision for income taxes on earnings subject to income taxes differs from the statutory federal rate at June 30, 2026, due to the following:

SCHEDULE OF PROVISION FOR INCOME TAXES

		Amount				% of net loss before income taxes
		Fiscal year ended June 30, 2026
		Amount				% of net loss before income taxes
Net loss before income taxes			7,448,000

U.S. federal statutory tax rate		$	(1,564,000	)			21.00	%
State income taxes, net of federal benefit⁽¹⁾			1,000				(0.01	)%
Permanent differences and other
Other true ups
Non-taxable or non-deductible items
Stock-based compensation			105,000				(1.41	)%
Other adjustments			17,000				(0.23	)%
Changes in valuation allowance			317,000				(4.26	)%
Other			-				-
Prior period adjustments			1,125,000				(15.11	)%
Provision for income taxes		$	1,000				(0.01	)%

⁽¹⁾

State taxes in California make up the majority of the tax effect in this category.

As previously disclosed for the year ended June 30, 2025, prior to the adoption of ASU 2023-09, the provision for income taxes on earnings subject to income taxes differs from the statutory federal rate, due to the following:

		Fiscal year ended June 30, 2025
Federal income taxes at 21%		$	(1,401,000	)
U.S. federal statutory tax rate		$	(1,401,000	)
State income taxes, net			(223,000	)
State income taxes, net of federal benefit			(223,000	)
Permanent differences and other			178,000
Other true ups			425,000
Change in valuation allowance			1,025,000
Changes in valuation allowance			1,025,000
Provision for income taxes		$	4,000

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

Significant components of the Company’s net deferred tax assets are shown in the table below.

		2026				2025
		Fiscal year ended June 30,
		2026				2025
Deferred tax assets:
Net operating loss carryforwards		$	23,674,000			$	22,222,000
Research and development credit carryforward			27,000				27,000
Capitalized research and development expenses			1,405,000				2,323,000
Stock compensation			68,000				20,000
Disallowed interest expense			879,000				740,000
Lease liability			516,000				322,000
Other, net			1,610,000				2,138,000
Gross deferred tax assets			28,179,000				27,792,000
Less: valuation allowance			(27,656,000	)			(27,508,000	)
Total deferred tax assets			523,000				284,000

Deferred tax liabilities:
Capital lease asset			(22,000	)			-
Right of use asset			(501,000	)			(284,000	)
Total deferred tax liabilities			(523,000	)			(284,000	)
Total net deferred tax liabilities		$	-			$	-