INCOME TAXES AND AVAILABLE CARRYFORWARD

3 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES AND AVAILABLE CARRYFORWARD

NOTE D - INCOME TAXES AND AVAILABLE CARRYFORWARD

As of September 30, 2016, the Company had consolidated income tax net operating loss ("NOL") carryforward for federal income tax purposes of approximately $1,739,000. The NOL will expire in various years ending through the year 2035. The utilization of certain of the loss carryforwards are limited under Section 382 of the Internal Revenue Code.

The components of the provision for income tax benefits (expense) attributable to continued operations are as follows:

	Three Months 9/30/2016		Three Months 9/30/2015
Current
Federal	$	0	$	0
State		0		0
	$	0	$	0
Deferred
Federal	$	16,260	$	22,278
State		2,784		3,813
	$	19,044	$	26,091
Total Income Tax Benefit (Expense)	$	19,044	$	26,091

Deferred income taxes reflect the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	Current		Non-Current
Deferred tax assets
NOL and contribution carryforwards	$	156,110	$	498,325
PTO Accounts		8,355		—
Excess of tax over book depreciation		—		(2,479	)
Allowance for doubtful accounts		991		—
Net deferred tax asset	$	165,456	$	495,846

Management believes it is more likely than not that it will realize the benefit of the NOL carryforward, because of its previous trend of earnings. Therefore, a valuation allowance is not considered necessary at this time.

      Income taxes for the periods ended September 30, 2016 and 2015 differ from the amounts computed by applying the effective income tax rates of 37.63%, to income taxes as a result of the following:

	Three Months Sep. 30, 2016		Three Months Sep. 30, 2015
Expected benefit (provision) at US statutory rate	$	16,295	$	21,856
State income tax net of federal benefit (provision)		1,740		2,333
Nondeductible Expense		1,009		1,902
Income Tax Benefit (Expense)	$	19,044	$	26,091

The earliest tax year still subject to examination by a major taxing jurisdiction is fiscal year end June 30, 2013.

The Company made a review of its uncertain tax positions in accordance with applicable standards of the Financial Accounting Standards Board ("FASB"). In this regard, an uncertain tax position represents the Company's expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. As a result of this review, the Company concluded that at this time there are no uncertain tax positions, and there has been no cumulative effect on retained earnings.