INCOME TAXES

12 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

10.       INCOME TAXES:

The reconciliation between the expected federal income tax expense (benefit) computed by applying the Federal statutory rate to income (loss) before income taxes and the actual expense (benefit) for taxes on income (loss) for the years ended June 30, 2022 and 2021 is as follows:

	2022			2021
Expected income tax expense (benefit) at statutory rate	$	1,741,000		$	(724,000	)
State taxes, net of federal benefit		303,000			(126,000	)
RTP – Excess Business Interest		—			115,000
Permanent differences and other		8,000			8,000
Expiration of net operating allowances		1,229,000			802,000
Change in valuation allowance		(3,281,000	)		(75,000	)
Income tax expense (benefit)	$	—		$	—

The Company has net operating loss carry-forwards (“NOLs”) for tax purposes of approximately $8,274,000 as of June 30, 2022. 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 as of June 30, 2022 and 2021 are estimated as follows:

	2022			2021
NOL carryforwards (Federal and State)	$	8,274,000		$	11,784,000
Stock-based compensation		5,436,000			5,350,000
Impairment		1,340,000			1,340,000
Business interest		339,000			264,000
Deferred compensation		1,054,000			986,000
Gross deferred tax assets		16,443,000			19,724,000
Valuation allowance		(16,443,000	)		(19,724,000	)
Net deferred tax assets	$	—		$	—

The Company has provided a valuation allowance of 100% of its net deferred tax assets due to the uncertainty of generating future profits that would allow for the realization of such deferred tax assets.