INCOME TAXES

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

10.       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, 2023 and 2022 is as follows:

	2023			2022
Expected income tax benefit at statutory rate	$	(670,000	)	$	1,741,000
State taxes, net of federal benefit		(117,000	)		303,000
Permanent differences and other		9,000			8,000
Expiration of net operating allowances		733,000			1,229,000
Change in valuation allowance		(45,000	)		(3,281,000	)
Income tax benefit	$	—		$	—

The Company has net operating loss carry-forwards (“NOLs”) for tax purposes of approximately $39,500,000 as of June 30, 2023. These NOLs expire on various dates through 2042.

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, 2023 and 2022 are estimated as follows:

	2023			2022
NOL carryforwards (Federal and State)	$	8,299,000		$	8,274,000
Stock-based compensation		5,459,000			5,436,000
Impairment		1,340,000			1,340,000
Business interest		338,000			339,000
Deferred compensation		1,054,000			1,054,000
Capitalized research and development		66,000			—
Gross deferred tax assets		16,148,000			16,443,000
Valuation allowance		(16,148,000	)		(16,443,000	)
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.