Income Taxes

12 Months Ended

Jun. 30, 2023

Income Taxes

Income Taxes

13. Income Taxes

The components of the provision for income taxes are as follows:

	2023			2022
Current tax provision	$	349,260		$	80,769
Deferred tax provision		(3,601,298	)		(599,167	)
Provision for income taxes (benefit)	$	(3,049,293	)	$	(518,398	)

The differences between income taxes calculated at the statutory US federal income tax rate and the Company’s provision for income taxes are as follows:

	2023			2022
Income tax provision at statutory federal and state tax rate		21.00	%		21.00	%
State taxes, net of federal benefit		5.04	%		(2.70	)%
Nondeductible expense		(0.24	)%		2.79	%
Tax return to provision		(2.67	)%	-%
State tax rate change		1.81	%	%
Other, net		0.90	%		0.72	%
Valuation allowance	-		%	-		%
Provision for income taxes		25.83	%		20.37	%

The net deferred income tax asset balance related to the following:

	2023		2022
Net operating losses carry forward	$	752,863	$	296,352
Reward points		-		1,536
Inventory write off		-		11,965
Impairment loss – Interactive Offers		1,015,997
Intangible assets		1,714,8701		691,411
Stock Options		1,999,688		887,550
Allowance for doubtful accounts		56,112		13,760
Accrued compensation		19,323		19,970
Deferred revenue		18,196		80,215
Other, net		7		-
Valuation allowances		-		-
Deferred tax asset	$	5,604,056	$	2,002,759

There were approximately $3,097,791 and $1,411,198 of losses available to reduce federal taxable income in future years and can be carried forward indefinitely as of June 30, 2023 and June 30, 2022 respectively.

Future realization of the tax benefits of existing temporary differences and net operating loss carryforwards ultimately depends on the existence of sufficient taxable income within the carryforward period. As of June 30, 2023 and 2022, the Company performed an evaluation to determine whether a valuation allowance was needed. The Company considered all available evidence, both positive and negative, which included the results of operations for the current and preceding years. The Company also considered whether there was any currently available information about future years. The Company determined that it is more likely than not that the Company will have future taxable income. The Company used $2,506,514 of the federal net operating loss carryover during the year ended June 30, 2022.

We file federal and state income tax returns in jurisdictions with varying statutes of limitations. Income tax returns generally remain subject to examination by federal and most state tax authorities. We are not currently under examination in any federal or state jurisdiction.