Note 12 - Income Taxes

12 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

12. INCOME TAXES:

The reconciliation between the expected federal income tax benefit computed by applying the Federal statutory rate to loss before income taxes and the actual benefit for taxes on loss for the years ended

June 30, 2021

and

2020

is as follows:

	2021			2020
Expected income tax benefit at statutory rate	$	(724,000	)	$	(955,000	)
State taxes, net of federal benefit		(126,000	)		(166,000	)
RTP – Excess Business Interest		115,000			(103,000	)
Permanent differences and other		8,000			9,000
Expiration of net operating allowances		802,000			71,000
Change in valuation allowance		(75,000	)		1,144,000
Income tax benefit	$	-		$	-

The Company has net operating loss carry-forwards (“NOLs”) for tax purposes of approximately

$47,321,000

as of

June 30, 2021.

These NOLs expire on various dates through

2041.

The utilization of the NOLs

may

be limited under Section

382

of the Internal Revenue Code.

The Company's deferred tax assets for the years ended

June 30, 2021

and

2020

are estimated as follows:

	2021			2020
NOL Carryforwards (Federal and State)	$	11,784,000		$	11,975,000
Stock-based compensation		5,350,000			5,073,000
Impairment		1,340,000			1,340,000
Business interest		264,000			217,000
Deferred compensation		986,000			1,194,000
Gross deferred tax assets		19,724,000			19,799,000
Valuation allowance		(19,724,000	)		(19,799,000	)
Net deferred tax assets	$	-		$	-

The Company has provided a valuation allowance of

100%

of its net deferred tax asset due to the uncertainty of generating future profits that would allow for the realization of such deferred tax assets.