INCOME TAXES AND AVAILABLE CARRYFORWARD

6 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES AND AVAILABLE CARRYFORWARD

NOTE D - INCOME TAXES AND AVAILABLE CARRYFORWARD

As of December 31, 2016, the Company had consolidated income tax net operating loss ("NOL") carryforward for federal income tax purposes of approximately $1,656,500. 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:

	Six Months 12/31/2016		Six Months 12/31/2015
Current
Federal	$	0	$	0
State		0		0
	$	0	$	0
Deferred
Federal	$	29,610	$	85,960
State		5,068		30,119
	$	34,678	$	116,079
Total Income Tax Benefit (Expense)	$	34,678	$	116,079

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	$	162,889	$	462,413
PTO Accounts		9,704		—
Bonus Accrual		12,512		—
Excess of tax over book depreciation		—		(2,236	)
Allowance for doubtful accounts		385		—
Net deferred tax asset	$	185,490	$	460,177

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 December 31, 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:

	Six Months Dec. 31, 2016		Six Months Dec. 31, 2015
Expected benefit (provision) at US statutory rate	$	29,202	$	101,829
State income tax net of federal benefit (provision)		3,118		10,872
Nondeductible Expense		2,358		3,378
Income Tax Benefit (Expense)	$	34,678	$	116,079

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.