INCOME TAXES

12 Months Ended

Jun. 30, 2025

INCOME TAXES

INCOME TAXES

NOTE 6     INCOME TAXES

Management believes the income tax positions taken for open years are appropriately stated and supported for all open years. The Company’s federal tax returns for the years ended June 30, 2024, 2023, and 2022 are subject to examination by the Internal Revenue Service taxing authority.

The sources of deferred income tax assets and liabilities at June 30, 2025 and 2024 are as follows:

	June 30,		June 30,
	2025		2024
Deferred tax assets:
Allowance for Credit Losses		458		500
Deferred Income		—		235
Contribution Carryover		3,126		2,329
Net operating loss carryforwards		61,571		47,014
		65,155		50,078
Deferred tax liabilities:
Book/Tax Difference on Property and Equipment		(23,332)		(28,839)
		(23,332)		(28,839)
Net deferred tax asset before valuation allowance		41,823		21,239
Valuation allowance:
Beginning balance		—		—
Decrease/(Increase) during the period		(41,823)		—
Ending balance		(41,823)		—
Net deferred tax asset	$	—	$	21,239

The income tax provision differs from the amount of income tax determined by applying the statutory federal income tax rate to pretax loss for the years ended June 30, 2025 and 2024 due to the following:

	For the Years Ended
	June 30,
	2025		2024
Computed at statutory rate	$	(17,913)	$	(23,462)
Increase (decrease) resulting from:
State income taxes - net of federal tax benefit		(2,692)		(2,588)
Change in valuation allowance		41,823		—
Other		21		6,403
Actual tax (provision) benefit	$	21,239	$	(19,647)

The Company has available at June 30, 2025, $254,847 of net unused operating losses that may be carried forward and applied against future taxable income. These net operating loss carryforwards do not expire but are subject to an 80% of taxable income utilization.