Note 7 - Income Taxes

12 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 7 – INCOME TAXES

The provision for income taxes consists of the following at June 30:

	2023			2022
Current expense		-			-
Deferred expense/(Benefit)		464,000			360,000
Inc/ (Dec) in valuation expense		(464,000	)		(360,000	)
Total provision for income tax	$	-		$	-

The total provision differs from the amount computed by applying federal rates to loss before income taxes due to the following at June 30:

	2023			2022
Provision for income tax at the statutory rate of 21%		(343,000	)		(290,000	)
Increase (Decrease) in taxes due to:
Change in valuation allowance		(464,000	)		(360,000	)
Expiration of net operating loss carry forwards		526,000			427,000
Disallowed expense		281,000			223,000
Total provision for income tax	$	-		$	-

The Company has used a federal statutory rate of 21%. The Company has no material state tax liabilities, so no provision for state income tax is needed.

Deferred tax assets and liabilities reflect the tax effects of the temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. The Company has net deferred income tax assets which have been reduced to zero through a valuation allowance because of uncertainties relating to utilization of future tax benefits. The increase/(decrease) in the valuation allowance for the years ended June 30, 2023, and June 30, 2022, are respectively ($464,000) and ($360,000).

The components of the net deferred income tax assets, calculated at an effective rate of 21%, are as follows at June 30:

	2023			2022
Noncurrent deferred tax assets		-			-
Net operating loss carry forwards		8,926,000			9,390,000
Valuation allowance		(8,926,000	)		(9,390,000	)
Net deferred tax asset/ (liability)	$	-		$	-

For tax purposes, the Company has unused net operating losses available for carry forwards to future tax years. At June 30, 2023, the Company has net operating loss carry forwards of approximately $42,000,000 which expire 2024 – 2038 and $3,000,000 that can be carried forward indefinitely.

Current federal tax laws include substantial restrictions on the utilization of net operating losses and tax credits in the event of an ownership change of a corporation. Accordingly, the Company's ability to utilize net operating loss and tax credit carryforwards may be limited as a result of such ownership changes. Such a limitation could result in the expiration of carryforwards before they are utilized.