v3.26.3
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

Note 13. Income Taxes

For the years ended June 30, 2026 and June 30, 2025, the Company's net loss before income taxes was as follows:

Loss from continuing operations before income taxes

 

2026

 

 

2025

 

United States

 

$

(15,555,370

)

 

$

(9,031,174

)

Foreign

 

 

—

 

 

 

—

 

Total

 

$

(15,555,370

)

 

$

(9,031,174

)

For the years ended June 30, 2026 and June 30, 2025, the Company's income tax expense from continuing operations were:

Income tax expense

 

2026

 

 

2025

 

Federal

 

$

4,853

 

 

$

19,249

 

State

 

 

—

 

 

 

—

 

Foreign

 

 

—

 

 

 

—

 

Total income tax expense

 

$

4,853

 

 

$

19,249

 

During the years ended June 30, 2026 and June 30, 2025, the Company paid no federal, state and foreign income taxes, net of refunds.

The following table presents a reconciliation of income tax benefit calculated at the U.S. federal statutory income tax rate to the Company's income tax expense for the years ended June 30, 2026 and June 30, 2025:

 

 

 

 

2026

 

 

 

 

 

 

2025

 

 

 

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 U.S. federal statutory income tax benefit

 

$

(3,266,628

)

 

 

21.00

%

 

$

(1,896,547

)

 

 

21.00

%

State and local income tax, net of federal effect

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign tax effects

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Changes in tax laws or rates enacted in the current period

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Effect of cross-border tax laws

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Tax credits

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Change in valuation allowances

 

 

2,905,021

 

 

 

-18.68

%

 

 

1,906,164

 

 

 

-21.11

%

Nontaxable or nondeductible items:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

549,709

 

 

 

-3.53

%

 

 

—

 

 

 

—

 

Other nondeductible items

 

 

(183,249

)

 

 

1.18

%

 

 

482

 

 

 

-0.01

%

Change in estimates

 

 

—

 

 

 

—

 

 

 

9,150

 

 

 

-0.10

%

Changes in unrecognized tax benefits

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other adjustments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Income tax expense

 

$

4,853

 

 

 

-0.03

%

 

$

19,249

 

 

 

-0.22

%

 

 

At June 30, 2026, the Company has net operating loss carry forwards of $38,173,708 (2025- $38,200,235) expiring between the years 2027 and 2038 which are available to reduce future taxable income. Tax losses incurred after June 30, 2018 of $56,350,320 (2025 - $45,427,872) may be carried forward indefinitely. The tax effects of the significant components within the Company’s deferred tax asset (liability) at June 30, 2026 and 2025 are as follows:

United States

 

2026

 

 

2025

 

Mineral properties

 

$

7,182

 

 

$

71,353

 

Asset retirement obligation

 

 

497,956

 

 

 

481,691

 

Fixed assets

 

 

(385

)

 

 

(257

)

Derivatives

 

 

1,299,026

 

 

 

276,686

 

Warrants

 

 

175,120

 

 

 

 

Stock options

 

 

88,651

 

 

 

626,052

 

Other

 

 

2,100

 

 

 

2,100

 

Net operating losses

 

 

19,850,046

 

 

 

17,565,333

 

 

 

$

21,919,696

 

 

$

19,022,958

 

Valuation allowance

 

 

(22,217,248

)

 

 

(19,315,657

)

Mineral properties

 

$

(297,552

)

 

$

(292,699

)

Net deferred tax asset

 

$

—

 

 

$

—

 

 

The potential tax benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

Accounting for uncertainty for Income Tax

Income taxes are determined using asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized.

As of June 30, 2026 and 2025, the Company’s consolidated balance sheets did not reflect a liability for uncertain tax positions, nor any accrued penalties or interest associated with income tax uncertainties. The Company is subject to income taxation at the federal and state levels. The Company is currently subject to US federal tax examinations for the tax years 2022 through 2024. Loss carryforwards generated or utilized in years earlier than 2019 are also subject to examination and adjustment. The Company has no income tax examinations in process.