4. INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2021

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, 2021 and 2020 is as follows:

	2021	2020
Income tax expense (benefit) at federal statutory rate	(21.0)%	(21.0)%
Increase (decrease) in tax resulting from:
State taxes, net of federal benefit	(145.8)%	(7.1)%
Change in valuation allowance	182.8%	17.9%
Stock based compensation	195.0%	9.6%
Forgiveness of bank note	(214.9)%	–
Nondeductible items	3.0%	0.4%
Effective tax rate	(0.9)%	(0.2)%

Schedule of deferred tax assets and liabilities

The components of deferred tax assets and liabilities at June 30, 2021 and 2020 are approximately as follows:

	2021			2020
Deferred tax assets:
Net operating loss carry forwards	$	2,403,000		$	2,328,000
Tax credit carry forwards		186,000			259,000
Reserves and accruals not yet deducted for tax purposes		668,000			612,000
Total deferred tax assets		3,257,000			3,199,000
Valuation allowance		(3,257,000	)		(3,199,000	)
Net deferred tax asset	$	–		$	–