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

 

The Company files income tax returns in the U.S. federal and applicable foreign and state jurisdictions.

 

Management of CleanCore is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes federal and certain states. The fiscal year ended June 30, 2023 was the entity’s initial year of existence, and is not subject to federal or state tax examinations prior to this period. The tax impact of the Irish subsidiary in the current tax year did not have a material impact on the company’s tax provision. On July 4, 2025, the United States enacted tax reform legislation through the One Big Beautiful Bill Act, which changes existing U.S. tax laws, including extending or making permanent certain provisions of the Tax Cuts and Jobs Act, repealing certain clean energy initiatives, in addition to other changes. The Company analyzed this information and there is not significant impact.

 

The Company’s provision for income taxes is comprised of the following components:

 

    Years Ended June 30,  
    2026     2025  
Current Tax Expense (Benefit)                
Federal       -         -  
State     -       -  
Current Tax Expense (Benefit)   $ -     $ -  
                 
Deferred Tax Expense (Benefit)                
Federal     -       -  
State     -       -  
Deferred Tax Expense (Benefit)     -       -  
                 
Total Income Tax Expense (Benefit)   $ -     $ -  

 

The Company’s income tax expense from continuing operations for the year ended June 30, 2026 differed from the statutory federal rate of 21% as follows:

 

 Pre-Tax Book Net Loss   $ (174,074,701 )

 

    Years Ended June 30,  
    2026     2025  
Rate Reconciliation   Amount     Percent     Amount     Percent  
Federal tax (benefit) at a statutory rate   $ (36,167,988 )     21.00 %   $ (1,415,877 )     21.00 %
State tax expense (benefit)                   (399,524 )     5.52 %
Federal effect of State tax expense (benefit)                   83,900       (1.24 )%
Effect of rate change     140,188       (0.08 )%     72,965       (1.08 )%
True-up of deferred taxes     215,399       (0.13 )%     (208,366 )     3.09 %
Other permanent differences     1,020,461       (0.59 )%     (512,813 )     (7.61 )%
Other items     85,856       (0.05 )%     459       (0.01 )%
Increase (decrease) in valuation allowance related to current period profit and loss activity     34,706,085       (20.15 )%     2,379,256       (35.29 )%
Total tax expense   $ -       -     $ -       -  

 

Deferred tax assets and liabilities consist of the following:

 

    Years Ended June 30,  
    2026     2025  
Deferred Tax Assets            
Intangible Assets   $ 768,446     $ -  
Accrued expenses     42,236       76,058  
Equity compensation     129,547       291,281  
Lease liabilities     68,570       106,233  
Unrealized Gain / Loss     19,425,547       -  
Capital Loss Limitation     9,779,667       -  
NOL carryforwards     16,223,695       3,961,538  
Valuation allowance     (46,280,720 )     (4,315,623 )
Total Deferred Tax Assets   $ 156,989     $ 119,487  
                 
Deferred Tax Liabilities                
Property and equipment   $ (202 )   $ 450  
Intangible assets     -       (5,851 )
Prepaid expenses     (92,769 )     (25,574 )
ASC 842 right of use asset     (64,018 )     (100,214 )
Valuation allowance             -  
Total Deferred Tax Liabilities   $ (156,989 )   $ (119,487 )
                 
Net Deferred Tax Asset (Liability)   $ -     $ -  

 

In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some portion of the deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

 

As of June 30, 2026 the Company recognized a full valuation allowance on its net deferred tax asset to reflect the fact it is not more-likely-than-not to realize any portion of the asset.

 

    Years Ended June 30,  
Other Items – All Gross   2026     2025  
Federal NOL Carryovers   $ 61,922,502     $ 14,216,453  
State NOL Carryovers   $ 61,922,502     $ 14,216,453  

 

At June 30, 2026 and June 30, 2025, the Company had net operating loss carryforwards for Federal income tax purposes of $61,922,502 and $14,114,900, respectively which would be available to offset future federal taxable income, if any, and would not be subject to expiration. At June 30, 2026 and June 30, 2025, the Company has net operating loss carryforwards for state income tax purposes of $61,922,502 and $14,114,900 which are available to offset future state taxable income, which is subject to expiration beginning in 2043.