INCOME TAXES – DEFERRED TAX ASSET |
12 Months Ended | ||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||
| INCOME TAXES – DEFERRED TAX ASSET | 11. INCOME TAXES – DEFERRED TAX ASSET
Income Tax Expense
For the fiscal year ended June 30, 2026, the Company recorded no current or deferred income tax expense.
As of June 30, 2026, the Company had net operating loss (“NOL”) carryforwards of approximately $14,368,692, which are available to offset future taxable income, subject to applicable limitations under the Internal Revenue Code. The related gross deferred tax asset is approximately $3,017,425, calculated using a U.S. federal tax rate of 21%.
In accordance with ASC 740, Accounting for Income Taxes, deferred tax assets are recognized only to the extent that realization of such assets is more likely than not. In evaluating the realizability of its deferred tax assets, the Company considered both positive and negative evidence, including cumulative historical losses and the absence of objectively verifiable sources of future taxable income. Based on this evaluation, management concluded that it is not more likely than not that the deferred tax assets will be realized at this time.
Accordingly, the Company has recorded a full valuation allowance against its deferred tax assets, resulting in no net deferred tax asset recognized in the consolidated financial statements for the fiscal year ended June 30, 2026.
The Company will continue to assess the realizability of its deferred tax assets at each reporting date and will adjust the valuation allowance in future periods if evidence becomes available that indicates it is more likely than not that some portion of the deferred tax assets will be realized.
Valuation Allowance Roll forward
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