v3.26.3
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
Note 12 – Income Taxes
As of June 30, 2026, the Company owned approximately 98.1% of Falcon Australia. The Company has initiated the compulsory acquisition process for the remaining minority interest and expects to obtain 100% ownership following completion of the statutory process by December 31, 2026. Upon obtaining full ownership, Falcon Australia is expected to join the Australian tax consolidated group, resulting in application of the Australian tax cost-setting rules. Management has considered the expected tax base step-up in determining deferred tax assets and deferred tax liabilities, based on its current expectation that the compulsory acquisition process and subsequent tax consolidation will be completed.
The ultimate deferred tax consequences remain subject to completion of the tax cost-setting process, final determination of available tax attributes and completion of the Australian tax consolidation calculations. 
The Group has no income tax benefit due to operating losses incurred for the years ended June 30, 2026 and 2025 and recognition of a valuation allowance. The following table, which reflects the Group's retrospective adoption of ASU 2023-09, presents a reconciliation of the U.S. federal statutory rate to the Group's effective tax rate, including the amount (in thousands):
For the years ended June 30,
20262025
AmountPercentAmountPercent
U.S federal statutory tax rate$(6,404)21.00 %$(8,321)21.00 %
State and local income taxes, net of federal income tax effect — — %— — %
Permanent difference1,072 3.52 %1,205 3.04 %
Foreign tax effects(1,777)(9.00)%(2,276)(9.00)%
Australia
Statutory tax rate difference between Australia and United States(1,786)(9.00)%2,276 (5.74)%
Valuation allowance recognized1,786 (9.00)%2,276 (5.74)%
Rest of world
Statutory tax rate difference between Australia and rest of world9 14.50 %N/AN/A
Valuation allowance recognized9 14.50 %N/AN/A
Effects of changes in tax laws or rates enacted in the current period(7,109)23.31 %(9,391)23.69 %
Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating losses and tax credit carryforwards.
The Organization for Economic Co-operation and Development's (“OECD”) framework to implement a global minimum corporate tax rate of 15% (calculated on a country-by-country basis) for companies with global consolidated revenues above certain thresholds (“referred to Pillar 2”) has been agreed upon in principle by over 140 countries. While it is not expected that the U.S. will enact legislation to adopt Pillar 2, certain countries in which the Group operates have adopted Pillar 2 legislation or are in the process of introducing legislation to implement Pillar 2. Although the framework provides model rules for applying the minimum tax, countries may enact Pillar 2 differently than the model rules and on different timelines and may adjust their domestic tax incentives in response to Pillar 2. On January 5, 2026, the OECD introduced new guidance including a “Side-by-Side Safe Harbor” for U.S. and other multinational companies where domestic and international tax systems meet certain requirements to coexist with Pillar 2. Under the new guidance, US-parented companies would be exempt from certain aspects of the global minimum tax regime. The package includes a permanent simplified effective tax rate safe harbor and a substance-based tax incentive safe harbor. Additionally, the package extends the transitional country-by-country reporting safe harbor through to 2027. The updated model rules will need to be incorporated into local tax legislation to become effective. The Group will continue to evaluate the impacts of Pillar 2 in our non-U.S. tax jurisdictions. The Pillar 2 rules did not have a material impact on the Group's consolidated financial statements for the years ended June 30, 2026 and 2025.
On July 4, 2025, the U.S. government enacted The One Big Beautiful Bill Act (“OBBBA”) which includes, among other provisions, changes to the U.S. corporate income tax system such as allowing of immediate expensing of qualifying domestic research and development expenses and permanent extensions of certain provisions within the Tax Cuts and Jobs Act. Certain provisions are effective for the Group beginning in fiscal year 2026. The Group is currently evaluating the future impact of these tax law changes on its consolidated financial statements.
Significant components of deferred tax assets (liabilities) are as follows (in thousands):
June 30,
20262025
Deferred tax assets:
Asset retirement obligations
$360 $315 
Transaction costs arising on common stock issued
599 1,018 
Tax losses carried forward
198,600 115,669 
Leases
2,589 2,491 
Employee benefits
215 279 
Accrued expenses and liabilities
780 317 
Other
873 243 
Total deferred tax assets
204,016 120,332 
Deferred tax liabilities:
Exploration assets
(157,039)(80,596)
Other
(50)(101)
Total deferred tax liabilities
(157,089)(80,697)
Total net deferred tax assets
46,927 39,634 
Less: Valuation allowance
(46,927)(39,634)
Net deferred tax assets
$— $— 
The Group has provided a full valuation allowance on the net deferred tax asset because management has determined that it is more likely than not that the Group will not earn income sufficient to realize the deferred tax assets during the period. Management will continue to assess the potential for realizing deferred tax assets based upon income forecast data and the feasibility of future tax planning strategies and may record adjustments to the valuation allowance against deferred tax assets in future periods, as appropriate, that could have a material impact on the statement of operations.
As of June 30, 2026, the Group had accumulated tax losses relating to a foreign tax jurisdiction in Australia of $194.5 million and US net operating loss carry-forwards of $4.1 million. The losses are reflected at the relevant countries statutory corporate rate of 30% (Australia) and 21% (USA). The foreign tax losses carried forward, which have a valuation allowance against them, can be carried forward indefinitely subject to satisfying certain Australian legislative requirements. The Company’s net operating loss carry-forwards in the USA can be carried forward indefinitely.
Falcon Hungarian and Irish operations had carried forward losses which are unrecognized as of June 30, 2026. Recognition of the tax losses for these tax groups will occur when certainty of future operations can be ascertained.