Income Taxes

9 Months Ended

Mar. 31, 2024

Income Taxes

Income Taxes

Note 6: Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires the use of the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are also recognized for net operating losses (NOLs) and tax credit carryforwards.

Provision for Income Taxes

The components of the provision for income taxes are as follows:

	Years Ended
	March 31, 2024		June 30, 2023
Current
Federal		-		-
State		-		-
Total current	$	-	$	-
Deferred
Federal		-		-
State		-		-
Total deferred	$	-	$	-
Total	$	-	$	-

Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of March 31, 2024, and June 30, 2023 are as follows:

	Period Ended
	March 31, 2024			June 30, 2023
Deferred tax assets:
Net operating loss carryforwards	$	10,728,983		$	10,728,983
Other temporary differences		2,306,450			2,306,450
Total deferred tax assets		13,035,433			13,035,433
Change in valuation allowance		(13,035,433	)		(13,035,433	)
Effective income tax rate	$	-		$	-

Valuation Allowance

The Company has established a full valuation allowance against its net deferred tax assets as of March 31, 2024, and June 30, 2023. The valuation allowance was recorded because it is more likely than not that the Company will not realize its deferred tax assets, primarily due to cumulative losses incurred in recent years.

Unrecognized Tax Benefits

The Company has no unrecognized tax benefits as of March 31, 2024, and June 30, 2023.

The Company files income tax returns in the U.S. federal jurisdiction and is subject to income tax examinations by federal tax authorities for tax years ended 2019 and later. The Company currently is not under examination by any tax authority. The Company’s policy is to record interest and penalties on uncertain tax positions as income tax expense.

As of March 31, 2024 and June 30, 2023, the Company has no accrued interest or penalties related to uncertain tax positions.