4. Taxes on Income

6 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Taxes on Income

The Company has provided a full valuation allowance against its net deferred tax assets as it believes that it is more likely than not that it will not realize these tax attributes. As of December 31, 2015 the Company had approximately $1,090,000 and $134,000 of federal and state net deferred tax assets respectively, primarily arising from net operating loss carry-forwards, expiring beginning in 2017.  In the six month period ended December 31, 2015 these federal and state net deferred tax assets increased by approximately $43,000 and $8,000, respectively, as a result of a net loss for the period.