Income taxes

9 Months Ended

Mar. 31, 2012

Income taxes [Abstract]

Income taxes

5.

Income taxes

We currently estimate our Company's book net operating loss carryforwards ("NOL") and deferred tax asset balance to total approximately $6,800,000 and $2,700,000, respectively, as of March 31, 2012.  We have recorded a valuation allowance against our entire deferred tax asset balance due to our lack of a history of earnings, the limitations on the use of our NOL as a result of the Sugarmade-CA acquisition and the future expiration of the NOL.  These factors give rise to substantial uncertainty as to whether our net deferred tax assets will be realized.  As a result of these factors, our utilization of the NOL will likely be severely limited and a substantial portion of the NOL will likely expire unused.