Income taxes

12 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income taxes

10. Income taxes

A reconciliation of the effective tax rate to the statutory rate is shown below:

	June 30, 2024			June 30, 2023
Loss before taxes	$	(9,521,488	)	$	(1,619,155	)
Expected income tax credit at statutory rate of 25% (2023: 25%)	$	(2,380,372	)	$	(404,789	)
Increase (decrease) in income taxes resulting from:
Stock issued for services		-			140,000
IPO related expenses		12,622			27,601
Provision for bad debt		144,816			106,742
Unrealized loss on investments		88,695			131,613
Government Subsidy Tech Boost		-			(6,721	)
Debt discount		277,022			-
Non-taxable other income		(30,472	)		-
-Non-tax deductible personnel expenses		29,544			-
Non-tax deductible consulting fees		1,367,032			-
Non-tax deductible general and administrative expenses		308,512			-
Other items, net		(26,742	)		(20,207	)
Income tax credit	$	(209,343	)	$	(25,761	)

The tax effects temporary differences that gave rise to the deferred tax assets and liabilities are as follows:

	June 30, 2024			June 30, 2023
Deferred tax assets:
Accrued employee benefits	$	37,199		$	1,877
Unrealized loss on investments		-			22,082
Unrealized foreign exchange gain		10,294			(1,394	)
Depreciation		(6,783	)		3,049
Operating right of use assets and lease liabilities		5,639			-
Accumulated tax loss		238,989			-
Provision for bad debt		56,784			106,740
Net deferred tax asset	$	342,122		$	132,354

As of June 30, 2024 and 2023, the Company had no material net operating loss or tax credit carryforwards. As of June 30, 2024 and 2023, the Company had no provision for uncertain tax positions and no provisions for penalties or interest. 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.