5. INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of tax rate reconciliation

A reconciliation of the federal statutory rate to the Company’s effective tax rate for the fiscal years ended June 30, 2020 and 2019 is as follows:

	2020		2019
Income tax expense (benefit) at federal statutory rate		(21.0)%		(21.0)%
Increase (decrease) in tax resulting from:
State taxes, net of federal benefit		(7.1)%		(6.3)%
Change in valuation allowance		17.9%		5.0%
Stock based compensation		9.6%		21.0%
Nondeductible items		0.4%		1.1%
Effective tax rate		(0.2)%		(0.2)%

Schedule of deferred tax assets and liabilities

The components of deferred tax assets and liabilities at June 30, 2020 and 2019 are approximately as follows:

	2020			2019
Deferred tax assets:
Net operating loss carry forwards	$	2,328,000		$	2,121,000
Tax credit carry forwards		259,000			298,000
Reserves and accruals not yet deducted for tax purposes		612,000			563,000
Total deferred tax assets		3,199,000			2,982,000
Valuation allowance		(3,199,000	)		(2,982,000	)
Net deferred tax asset	$	–		$	–