| Income taxes |
A
reconciliation of the effective tax rate to the statutory rate is shown below:
Schedule of reconciliation of provision of income tax
| | |
June 30, 2026 | | |
June 30, 2025 | |
| | |
| | |
| |
| | |
| | | |
| | |
| Expected income tax credit at statutory rate of 25% (2025: 25%) | |
$ | (4,318,955 | ) | |
$ | (87,307 | ) |
| Increase (decrease) in income taxes resulting from: | |
| | | |
| | |
| Change in fair value of warrants | |
| - | | |
| (506,236 | ) |
| Loss on extinguishment of warrants | |
| - | | |
| 71,337 | |
| Valuation allowance for deferred tax asset | |
| - | | |
| 388,969 | |
| Financing cost | |
| 200,000 | | |
| 150,000 | |
| Unrealiszed loss on investments in fund | |
| 9,978 | | |
| - | |
| Realized gain in investments | |
| - | | |
| (12,669 | ) |
| Unrealized loss on digital assets | |
| 704,788 | | |
| - | |
| Realized loss on digital assets | |
| 743,522 | | |
| - | |
| Loss on issuance of derivative and common stock | |
| 377,577 | | |
| | |
| Loss on extinguishment of debts | |
| 1,204,733 | | |
| | |
| Gain on fair value of convertible notes | |
| (920,285 | ) | |
| - | |
| Gain on change in fair value of derivative liabiliity | |
| (16,689 | ) | |
| | |
| Staking reward income | |
| (23,658 | ) | |
| - | |
| Consignment inventory reserve allowance | |
| 414,717 | | |
| | |
| Non-taxable other income | |
| (2,188 | ) | |
| - | |
| Non-taxable interest income | |
| (42,674 | ) | |
| (53,171 | ) |
| Non-tax deductible personnel expenses | |
| 39,738 | | |
| 42,578 | |
| Non-tax deductible consulting fees | |
| 803,613 | | |
| 154,777 | |
| Non-tax deductible general and administrative expenses | |
| 379,011 | | |
| 201,924 | |
| Non-tax deductible interest expenses | |
| 292,855 | | |
| | |
| Income tax credit not recognized due to continuous loss making | |
| 175,589 | | |
| - | |
| Other items, net | |
| (21,672 | ) | |
| (16,705 | ) |
| Income tax expense (credit) | |
$ | - | | |
$ | 333,497 | |
The
tax effects temporary differences that gave rise to the deferred tax assets and liabilities are as follows:
Schedule of components of deferred tax assets
| | |
June 30, 2026 | | |
June 30, 2025 | |
| Deferred tax assets: | |
| | | |
| | |
| Accrued employee benefits | |
$ | 50,244 | | |
$ | 41,582 | |
| Unrealized foreign exchange (gain) loss | |
| 2,148 | | |
| (1,264 | ) |
| Depreciation | |
| - | | |
| (5,031 | ) |
| Operating right of use assets and lease liabilities | |
| - | | |
| 5,692 | |
| Accumulated tax loss | |
| 514,166 | | |
| 347,990 | |
| Provision for bad debt | |
| - | | |
| - | |
| Valuation allowance for deferred tax asset | |
| (566,558 | ) | |
| (388,969 | ) |
| Net deferred tax asset | |
$ | - | | |
$ | - | |
As
of June 30, 2026 and 2025, the Company had no provision for uncertain tax positions and no provisions for penalties or interest due to the net operating losses. In
addition, the Company does not believe that there are any uncertain tax benefits that could be recognized in the near future that
would impact the Company’s effective tax rate. The Company’s accumulated tax losses in Australia can be carried forward indefinitely.
GMEX
ROBOTICS CORPORATION
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
|