INCOME TAXES

12 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE K - INCOME TAXES

The Company accounts for income taxes using the asset and liability method described in SFAS No. 109, “Accounting For Income Taxes”, the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting and the tax basis of the Company’s assets and liabilities at the enacted tax rates expected to be in effect when such amounts are realized or settled. A valuation allowance related to deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In recognition of the uncertainty regarding the ultimate amount of income tax benefits to be derived, the Company has recorded a full valuation allowance on June 30, 2025 and 2024.

The provision (benefit) for income taxes includes income taxes currently payable and those deferred because of temporary differences between the financial statement and tax bases of assets and liabilities.

Significant components of the Company’s deferred tax assets and liabilities are calculated at an estimated effective tax rate of 21%.

The provision for (benefit from) income taxes differ from the amount computed by applying the statutory United States federal income tax rate for the periods presented to income (loss) before income taxes. The income tax rate was 21% for the years ended June 30, 2025 and 2024. The sources of the difference are as follows:

	Year Ended
	June 30, 2025			June 30, 2024 (Restated – See Note N)
Expected tax at 21% and 21%, respectively	$	(71,963	)	$	55,738
Non-deductible stock-based compensation		26,250			63,525
Non-deductible loss (non-taxable income) from derivative liability		59,220			(143,363	)
Increase (decrease) in Valuation allowance		(13,507	)		24,100
Provision for (benefit from) income taxes	$	-		$	-

All tax years remain subject to examination by the Internal Revenue Service.

Significant components of the Company’s deferred income tax are as follows:

	June 30, 2025			June 30, 2024 (Restated – See Note N)
Unpaid accrued officer and director compensation	$	3,570		$	12,250
Net operating loss carry-forwards		749,141			762,648
Valuation allowance		(752,711	)		(774,898	)
Net non-current deferred tax asset	$	-		$	-

Based on management’s present assessment, the Company has not yet determined it to be more likely than not that a deferred tax asset of $752,711 attributable to the net operating loss carry forward and other timing differences as of June 30, 2025 will be realized. Accordingly, the Company has provided a 100% allowance against the deferred tax asset in the financial statements at June 30, 2025. The Company will continue to review this valuation allowance and make adjustments as appropriate. $3,211,181 of the $3,567,340 net operating loss carry forward at June 30, 2025 expires in varying amounts from year 2025 to year 2045.

Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited.

GLOBAL TECHNOLOGIES, LTD

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended June 30, 2025 and 2024