XML 34 R19.htm IDEA: XBRL DOCUMENT
v3.25.2

INCOME TAXES | 12 Months Ended
--- | ---
Jun. 30, 2025
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 10 - INCOME TAXES Income tax expense is computed using an asset and liability method using expected annual effective tax rates. Under this method, deferred income tax assets and liabilities result from temporary differences in the financial reporting basis and the income tax basis of assets and liabilities. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefit that, based on available evidence, is not expected to be realized. When it appears more than likely than not that deferred taxes will not be realized, a valuation allowance is recorded to reduce the deferred tax asset to its realizable value. For net deferred tax assets we consider estimates of future taxable income in determining whether or net deferred tax assets are more likely than not to be realized. The Company has recorded a deferred tax asset of $6,349,194 and a deferred tax liability of $321,159 as of June 30, 2025, primarily relating to its allowance for credit losses of $4,366,000, non deductible accruals of $759,000 and capitalized research and development costs of approximately $960,000. During fiscal 2025, the Company utilized all tax credits pertaining to research and development costs. In addition the Company has state operating loss carryforwards of approximately $3,694,000. The Company has also fully recorded a valuation allowance against all of the state operating losses since the Company doesn’t anticipate being able to utilize them. The Company files corporate income tax returns in the United States (federal) and in various state and local jurisdictions. In most instances, the Company is no longer subject to federal, state and local income tax examinations by tax authorities for years prior to 2021. Future ownership changes as determined under Section 382 of the Internal Revenue code could further limit the utilization of net operating loss carryforwards. As of June 30, 2025, no such changes in ownership have occurred. On July 4, 2025, the One Big Beautiful Act (“OBBBA) was signed into law, which enacts significant changes to the U.S. tax and related laws. Some of the provisions of the new tax law that affect corporations include but are not limited to expensing of domestic specified research or experimental expenditures, increasing the limit of the deduction to thirty percent of EBITDA, and one hundred percent bonus depreciation on eligible property acquired after January 19, 2025. The Company is currently evaluating the impact that the new tax law will have on its financial condition and results of operations. The valuation allowance for deferred tax assets decreased during the year ended June 30, 2025, by approximately $67,000. The valuation allowance decreased by approximately $171,000 during the year ended June 30, 2024. Components of the provision for income taxes are as follows:
Schedule of Components of the provision for income taxes |  |  |  |  |  |  |  |
Components Of The Provision For Income Taxes |  |  |  |
|  | Years Ended June 30,
Current: |  | 2025 |  | 2024
Federal |  | $ | 1,374,724 |  |  | $ | 429,873 |
State |  |  | 908,421 |  |  |  | 1,943,588 |
Subtotal |  |  | 2,283,145 |  |  |  | 2,373,461 |
Deferred: |  |  |  |  |  |  |  |
Federal deferred taxes |  |  | 838,154 |  |  |  | 2,585,515 |
State deferred taxes |  |  | (14,494 | ) |  |  | 209,992 |
Subtotal |  |  | 823,660 |  |  |  | 2,795,507 |
Provision (Benefit) for Income Taxes - Net |  | $ | 3,106,805 |  |  | $ | 5,168,968 |
A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate as reported is as follows:
Schedule of reconciliation of federal statutory income tax rate to company’s effective tax rate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | For the Year Ended June 30, 2025 |  | For the Year Ended June 30, 2024
|  | Amount |  | Percent |  | Amount |  | Percent
Taxes at federal statutory rate |  | $ | 2,893,850 |  |  |  | 21 | % |  | $ | 4,169,123 |  |  |  | 21 | %
State and local income taxes |  | $ | 978,397 |  |  |  | 7.1 | % |  | $ | 1,409,561 |  |  |  | 7.1 | %
Noncontrolling interests |  | ($ | 657,307 | ) |  |  | (4.6 | %) |  | ($ | 1,049,294 | ) |  |  | (5.3 | %)
Valuation Allowance |  | ($ | 218,390 | ) |  |  | (1.6 | %) |  | ($ | 48,179 | ) |  |  | (0.2 | %)
Permanent items – Meals and Entertainment |  | $ | 131,956 |  |  |  | 1.0 | % |  | $ | 126,719 |  |  |  | 1.5 | %
Other |  | ($ | 21,701 | ) |  |  | (0.8 | %) |  | $ | 561,038 |  |  |  | 2.7 | %
Provision for income taxes |  | ($ | 3,106,805 | ) |  |  | 22.8 | % |  | $ | 5,168,968 |  |  |  | 26.8 | %
The Company has, for federal income tax purposes, research and development tax credits and investments tax credits carryforwards aggregating $1,323,000 as of June 30, 2024. The Company will utilize the full amount for the tax return for the year ended June 30, 2025. These credits can only be applied after all net operating losses have been used. Significant components of the Company’s deferred tax assets and liabilities at June 30, 2025 and 2024 are as follows:
Schedule of deferred tax assets and liabilities |  |  |  |  |  |  |  |
|  | June 30,
|  | 2025 |  | 2024
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for credit losses |  | $ | 4,366,361 |  |  | $ | 3,969,819 |
Non-deductible accruals |  |  | 758,700 |  |  |  | 758,700 |
Net operating carryforwards |  |  | 259,319 |  |  |  | 396,092 |
Tax credits |  |  | — |  |  |  | 1,323,018 |
Capitalized research and development |  |  | 960,343 |  |  |  | 747,407 |
Right of use assets and lease liabilities |  |  | 146,934 |  |  |  | 114,116 |
Inventories |  |  | 116,856 |  |  |  | 106,879 |
Deferred Tax Assets - gross |  |  | 6,608,513 |  |  |  | 7,416,031 |
Valuation allowance |  |  | (259,319 | ) |  |  | (192,776 | )
Total deferred tax assets |  |  | 6,349,194 |  |  |  | 7,223,255 |
Property and equipment and depreciation |  |  | 165,532 | ) |  |  | (267,124 | )
Intangibles |  |  | (155,627 | ) |  |  | (104,436 | )
Total deferred tax liabilities |  |  | (321,159 | ) |  |  | (371,560 | )
Net deferred tax asset |  | $ | 6,028,035 |  |  | $ | 6,851,695 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration