v3.26.3
INCOME TAXES
 12 Months Ended
Jun. 30, 2026
INCOME TAXES  
INCOME TAXES

NOTE 7 - INCOME TAXES:

 

As of June 30, 2026, the Company had federal and state net operating loss carryforwards of approximately $20,639,368 of which approximately $683,303 may be utilized to offset future taxable income. Section 382 of the Internal Revenue Code imposes substantial restrictions on the utilization of net operating loss and tax credit carryforwards when a change in ownership occurs. No deferred tax assets have been recorded because it is considered unlikely that they will be realized. 

 

The overall effective tax rate differs from the federal statutory tax rate of 21% due to operating losses and other deferred assets not providing benefit for income tax purposes.

 

A reconciliation of income tax expense at the federal statutory rate to income tax expense at the Company’s effective rate is as follows at June 30, 2026 and 2025:

 

 

 

2025

 

 

2024

 

United States Statutory Income Tax Rate

 

 

21%

 

 

21%

Increase (Decrease) in rate on income subject to Danish income tax rates

 

 

1%

 

 

1%

Decrease in rate resulting from Non-Deductible expenses

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Effective Income Tax Rate

 

 

22%

 

 

22%

 

The components of income tax expense (benefit) from continuing operations for the years ended June 30, 2026 and 2025 consisted of the following:

 

Current Tax Expense

 

2026

 

 

2025

 

Danish Income Tax Expense (Benefit)

 

$(86,618 )

 

$9,985

 

Federal US Income Tax Expense (Benefit)

 

 

 

 

 

 

 

 

Current

 

 

-

 

 

 

-

 

Deferred

 

 

-

 

 

 

-

 

Total Income Tax Expense

 

$(86,618 )

 

$9,985

 

 

Deferred income tax expense/ (benefit) results primarily from the reversal of temporary timing differences between tax and financial statement income.

 

The Company had deferred tax income tax assets as of June 30, 2026 and 2025 as follows:

 

 

 

2026

 

 

2025

 

Net operating loss carryforwards

 

$4,340,515

 

 

$4,357,467

 

 

 

 

 

 

 

 

 

 

Valuation allowance

 

 

(4,340,515 )

 

 

(4,357,467 )

Total net deferred tax assets

 

$-

 

 

$-

 

 

The Company has maintained a full valuation allowance against the total deferred tax assets for all period due to the uncertainty of future utilization.