The Company has not recognized any income tax provisions for the fiscal years ended June 30, 2026 and 2025.

Domestic and foreign pretax loss from continuing operations for the fiscal years ended June 30:

 Schedule of Income (loss) Before Provision for Income Taxes

The components of the provision (benefit) for income taxes for the fiscal years ended June 30:

 Schedule of Provision for Income Taxes

Tax Rate Reconciliation

The reconciliation from the statutory federal income tax rate to the Company’s effective income tax rate, applying ASU 2023-09 prospectively, follows:

 Schedule of Statutory Federal Income Tax Rate

The reconciliation from the statutory federal income tax rate to our effective income tax rate, applying ASC 740 prior to the adoption of ASU 2023-09, follows:

Income Taxes Paid

The cash paid for taxes relates to state minimum taxes, the majority of which relates to California. The amount of income taxes paid during the year does not meet the five percent disaggregation threshold. Cash paid for income taxes (net of refunds) consisted of the following:

 Schedule of Cash Paid for Income Taxes

The significant components of deferred income tax assets and liabilities at June 30, after applying the statutory corporate income tax rate, are as follows for the fiscal years ended June 30:

 Schedule of Deferred Tax Assets and Liabilities

We believe that it is more likely than not that the benefit from our net deferred tax assets will not be realized. At June 30, 2026 and 2025, respectively, we have provided a valuation allowance of $53.8 and $41.7 million against our deferred tax assets, respectively. If our assumptions change and we determine that we will be able to realize these NOL carryforward amounts, the Company will adjust its disclosures appropriately.

As of June 30, 2026, the Company has accumulated federal and state net operating loss carryforwards of approximately $179.2, and $21.2 million, respectively. If unused, $2.5 million of our federal net operating loss carryforwards will expire in 2032, and $176.7 million will carryforward indefinitely. $2.6 million of our state net operating loss carryforwards will begin to expire in 2041 and $18.6 million will carryforward indefinitely. In addition, under the Tax Cuts and Jobs Act (Tax Act) the amount of federal net operating losses generated in taxable periods beginning after December 31, 2017, that we are permitted to deduct in any taxable year is limited to 80% of our taxable income in such year, where taxable income is determined without regard to the net operating loss deduction itself. The Tax Act generally eliminates the ability to carry back any net operating loss to prior taxable years, while allowing post-2017 unused net operating losses to be carried forward indefinitely. The Company also has $0.3 million of federal Research and Development Credit carryforwards that will expire in 2045.

Utilization of net operating losses, credit carryforwards, and certain deductions may be subject to a substantial annual limitation due to ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The tax benefits related to future utilization of federal and state net operating losses, tax credit carryforwards, and other deferred tax assets may be limited or lost if cumulative changes in ownership exceeds 50% within any three-year period. Additional limitations on the use of these tax attributes could occur in the event of possible disputes arising in examinations from various taxing authorities. Any net operating loss or credit carryforwards that will expire prior to utilization as a result of such limitations will be removed from deferred tax assets.

Unrecognized Tax Benefits

The unrecognized tax benefits for the Company are as follows as of June 30:

 Schedule of Unrecognized Tax Benefits

The Company files U.S. income tax returns with varying statutes of limitations. The tax returns for fiscal years ended September 30, 2012, to June 30, 2026, remain open to examination due to the carryover of unused NOL carryforwards and tax credits. The Company is not under examination by any tax authority as of June 30, 2026.