v3.26.3
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Pre-tax loss before provision for income taxes

Pre-tax loss before provision for income taxes consists of the following jurisdictions, in thousands:

 

 

For the Fiscal Year Ended June 30,

 

 

 

2026

 

 

2025

 

Domestic

 

$

(71,150

)

 

$

(15,945

)

Foreign

 

 

—

 

 

 

—

 

Pre-tax loss

 

$

(71,150

)

 

$

(15,945

)
Reconciliation of Provision for Income Taxes Computed at U.S Federal Statutory Tax Rates to Income Before Income Taxes

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows, in thousands:

 

 

 

 

 

 

 

 

 

For the Fiscal Year Ended June 30, 2026

 

 

 

$

 

 

%

 

Tax (benefit) expense at U.S. statutory rates

 

$

(14,941

)

 

 

21

%

State and local income taxes(1)

 

 

—

 

 

 

0

%

Change in valuation allowance

 

 

13,305

 

 

 

(18

)%

Nontaxable and nondeductible items

 

 

 

 

 

 

Equity compensation

 

 

1,445

 

 

 

(3

)%

Section 162(m) limitation

 

 

191

 

 

 

0

%

Others

 

 

1

 

 

 

0

%

Other adjustments

 

 

(1

)

 

 

0

%

Effective tax rate

 

$

—

 

 

 

0

%

________

(1) The state tax expense is zero due to losses. We are only subject to taxes in California.

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:

 

 

For the Fiscal Year Ended June 30, 2025

 

 

 

$

 

 

%

 

Tax (benefit) expense at U.S. statutory rates

 

$

(3,349

)

 

 

21

%

State tax (benefit) expense

 

 

(2,733

)

 

 

17

%

Equity compensation

 

 

1,671

 

 

 

(10

)%

Change in valuation allowance

 

 

3,782

 

 

 

(24

)%

Section 162(m) limitation

 

 

507

 

 

 

(3

)%

Other

 

 

122

 

 

 

(1

)%

 

 

$

—

 

 

 

0

%

 
Schedule of Income Taxes Paid Net of Refunds Received

The following table presents income taxes paid (net of refunds received) for the fiscal year ended June 30, 2026, in thousands:

 

 

Income Taxes Paid

 

Jurisdictions

 

$

 

Federal Taxes

 

 

 

U.S.

 

$

—

 

State Taxes

 

 

 

California

 

 

—

 

Foreign Taxes

 

 

—

 

Total

 

$

—

 
Deferred Tax Liabilities and Assets

Deferred tax liabilities and assets are comprised of the following, in thousands:

 

 

June 30,

 

 

 

2026

 

 

2025

 

Deferred tax assets (liabilities):

 

 

 

 

 

 

Tax losses carried forward

 

$

63,831

 

 

$

53,346

 

Capitalization of R&D costs

 

 

6,739

 

 

 

9,398

 

Fixed and intangible assets

 

 

5,597

 

 

 

7,881

 

Share-based payments

 

 

636

 

 

 

2,375

 

Change in fair value of digital assets and digital assets receivables

 

 

13,335

 

 

 

—

 

Other

 

 

1,292

 

 

 

700

 

Total deferred tax assets

 

 

91,430

 

 

 

73,700

 

Valuation allowance for deferred tax assets

 

 

(91,430

)

 

 

(73,700

)

Net deferred tax assets and liabilities

 

$

—

 

 

$

—