v3.26.3
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
SCHEDULE OF PROVISION FOR INCOME TAX (EXPENSE) BENEFIT

The provision for income tax (expense) benefit consists of the following:

 

For the years ended June 30,  2026   2025 
Federal          
Current tax expense  $-   $- 
Deferred tax expense   -    - 
Federal income tax benefit   -    - 
State          
Current tax expense   (1,000)   (1,000)
Deferred tax expense   -    - 
State and local income tax benefit   (1,000)   (1,000)
Income tax expense  $(1,000)  $(1,000)
SCHEDULE OF STATUTORY FEDERAL INCOME TAX RATE

A reconciliation of the statutory federal income tax rate to the effective tax rate is as follows:

 

For the years ended June 30,  2026   2025 
         
Statutory federal tax rate   21.0%   21.0%
State income taxes, net of federal tax benefit   7.0%   8.8%
Provision to return adjustment   3.3%   4.3%
Valuation allowance   -32.1%   -31.1%
Other   -0.8%   -3.0%
Effective income tax rate reconciliation percentage   0.0%   0.0%
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The components of the Company’s deferred tax assets and (liabilities) as of June 30, 2026 and 2025 are as follows:

 

   2026   2025 
Deferred tax assets          
Net operating loss carryforward  $15,149,000   $14,822,000 
Interest expense   7,110,000    6,385,000 
Accruals and reserves   714,000    622,000 
Depreciation   13,679,000    13,877,000 
Related party interest   3,269,000    2,243,000 
State tax credits   -    165,000 
Capital loss carryforward   975,000    1,054,000 
Other   38,000    1,000 
Deferred tax assets before valuation allowance   40,934,000    39,169,000 
Less Valuation allowance   (40,908,000)   (39,169,000)
Deferred tax assets after valuation allowance   26,000    - 
           
Deferred tax liabilities          
Unrealized loss   (26,000)   - 
Deferred tax liabilities   (26,000)   - 
Net deferred tax assets  $-   $- 
SCHEDULE OF UNRECOGNIZED TAX BENEFIT

 

      
Unrecognized Tax Benefits at June 30, 2025  $1,665,000 
Increase in tax positions taken   - 
Decrease in tax positions taken   - 
Unrecognized Tax Benefits at June 30, 2026  $1,665,000