| Schedule of reconciliation of provision of income tax |
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 | |
|
| Schedule of components of deferred tax assets |
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 | |
$ | - | | |
$ | - | |
|