Income Taxes (Tables)
|
12 Months Ended |
Jun. 30, 2026 |
|---|
| Income Taxes [Abstract] |
|
| Schedule of Reconciliation of Income Taxes |
For the years ended June 30, 2025 and 2026, income (loss) before income taxes includes the following components:
|
|
|
|
|
|
|
|
|
| |
|
2026 |
|
|
2025 |
|
| |
|
$ |
|
|
$ |
|
United States |
|
|
(2,208,930 |
) |
|
|
423,063 |
|
Canada |
|
|
(10,351,920 |
) |
|
|
(8,585,196 |
) |
|
|
|
|
|
|
|
|
|
Net income (loss) before taxes |
|
|
(12,560,850 |
) |
|
|
(8,162,133 |
) |
|
|
|
|
|
|
|
|
| The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal income tax rate for the year ended June 30, 2026, in accordance with ASU 2023-09.
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| |
|
2026 |
|
| |
|
$ |
|
|
% |
|
Canadian Federal/Provincial statutory tax rate |
|
|
(3,391,429 |
) |
|
|
27 |
% |
State and local taxes, net of federal |
|
|
(89,602 |
) |
|
|
1 |
% |
|
|
|
Foreign Tax Effects |
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
Statutory rate difference between United States and Canada |
|
|
132,536 |
|
|
|
(1 |
)% |
Changes in valuation allowance |
|
|
658,569 |
|
|
|
(5 |
)% |
Other |
|
|
(105,092 |
) |
|
|
1 |
% |
Change in valuation allowance |
|
|
2,667,196 |
|
|
|
(21 |
)% |
Nontaxable or nondeductible items |
|
|
29,061 |
|
|
|
— |
% |
Other |
|
|
98,761 |
|
|
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
Total |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
| The following is a reconciliation of income taxes calculated at the combined Canadian federal and provincial income statutory corporate tax rate of 27.0% to the tax expense:
|
|
|
|
|
| |
|
2025 |
|
| |
|
$ |
|
Net income (loss) before taxes |
|
|
(8,162,133 |
) |
|
|
|
|
|
Income tax expense (recovery) at the statutory rate |
|
|
(2,229,159 |
) |
Increase (reduction) in income taxes resulting from: |
|
|
|
|
Change in valuation allowance |
|
|
4,167,827 |
|
State taxes |
|
|
76,974 |
|
Permanent differences |
|
|
34,335 |
|
True up to the return |
|
|
2,982 |
|
State Rate Change |
|
|
8,086 |
|
Foreign exchange differences |
|
|
(1,589,832 |
) |
Share issuance cost capitalized in equity |
|
|
(492,446 |
) |
Other |
|
|
21,233 |
|
|
|
|
|
|
Income tax expense |
|
|
— |
|
|
|
|
|
|
|
| Schedule of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities are as follows:
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|
|
|
|
|
|
|
|
| |
|
2026 |
|
|
2025 |
|
| |
|
$ |
|
|
$ |
|
Non-capital losses |
|
|
29,207,964 |
|
|
|
25,463,223 |
|
Financing costs |
|
|
349,129 |
|
|
|
733,014 |
|
Accrued expenses |
|
|
4,421 |
|
|
|
61,845 |
|
Intangible assets, net |
|
|
403,432 |
|
|
|
496,440 |
|
Tax credits |
|
|
241,270 |
|
|
|
221,406 |
|
Lease liability |
|
|
7,009 |
|
|
|
108,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
30,213,224 |
|
|
|
27,084,453 |
|
|
|
|
|
|
|
|
|
|
Intangible assets, net |
|
|
— |
|
|
|
(57,977 |
) |
Property and equipment, net |
|
|
(2,954 |
) |
|
|
(98,627 |
) |
Lease obligations |
|
|
(62,686 |
) |
|
|
(106,029 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(65,640 |
) |
|
|
(262,633 |
) |
|
|
|
|
|
|
|
|
|
Net deferred tax asset |
|
|
30,147,584 |
|
|
|
26,821,820 |
|
Valuation allowance |
|
|
(30,147,584 |
) |
|
|
(26,821,820 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
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|
|
|
|
| Schedule of Valuation Allowance |
For the years ended June 30, 2025 and 2026, the following table reflects the activity in the Company’s valuation allowance on deferred tax assets:
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|
|
|
|
|
|
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| |
|
Year ended June 30, |
|
| |
|
2025 |
|
|
2026 |
|
Beginning Balance |
|
|
22,653,993 |
|
|
|
26,821,820 |
|
Increase in valuation allowance |
|
|
4,167,827 |
|
|
|
3,325,765 |
|
|
|
|
|
|
|
|
|
|
Total valuation allowance on deferred tax assets |
|
|
26,821,820 |
|
|
|
30,147,584 |
|
|
|
|
|
|
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|
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|