XML 55 R17.htm IDEA: XBRL DOCUMENT
v3.20.1

Income Taxes | 6 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 11 - INCOME TAXES No provision or benefit for federal or state income taxes has been recorded because the Company has incurred net losses for all periods presented and has recorded a valuation allowance against its deferred tax assets. The components of the Company's deferred tax assets are as follows at:
|  | December 31, 2019 |  |  | June 30, 2019 |  |  | June 30, 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |  |
Federal net operating loss |  | $ | 13,022,000 |  |  | $ | 13,555,000 |  |  | $ | 11,123,000 |
State net operating loss |  |  | 7,912,000 |  |  |  | 8,252,000 |  |  |  | 6,678,000 |
Research and development tax credits |  |  | 1,499,000 |  |  |  | 1,230,000 |  |  |  | 1,081,000 |
Capitalized R&D |  |  | 3,168,000 |  |  |  | - |  |  |  | - |
Nonqualified Stock Options |  |  | 172,000 |  |  |  | - |  |  |  | - |
Accruals |  |  | 133,000 |  |  |  | 206,000 |  |  |  | 13,000 |
Other |  |  | 45,000 |  |  |  | 46,000 |  |  |  | 37,000 |
Less: valuation allowance |  |  | (25,951,000 | ) |  |  | (23,289,000 | ) |  |  | (18,932,000 | )
Total |  | $ | - |  |  | $ | - |  |  | $ | - |
The Company has maintained a full valuation allowance against its deferred tax assets at December 31, 2019, June 30, 2019 and 2018. A valuation allowance is required to be recorded when it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Since the Company cannot be assured of realizing the net deferred tax asset, a full valuation allowance has been provided. The valuation allowance increased/(decreased) for the six months ended December 31, 2019, and the years ended June 30, 2019 and 2018, by approximately $2,662,000, $4,357,000, and $(235,000), respectively. Deferred tax asset for net operating loss carryforwards at December 31, 2019 was adjusted with the corresponding offset to valuation allowance. At December 31, 2019, the Company had federal, New York State and New York City net operating loss (NOL) carryforwards of approximately $62,010,000, $58,357,000 and $57,937,000, respectively, which begin expiring in 2027, 2032 and 2032 respectively. Approximately $16,540,000 federal NOL can be carried forward indefinitely but it is limited to 80% of future taxable income. The Company also has federal research and development tax credit carryforwards of approximately $1,499,000 that will begin to expire in 2028. The Company's ability to use its NOL carryforwards may be limited if it experiences an "ownership change" as defined in Section 382("Section 382") of the Internal Revenue Code of 1986, as amended. An ownership change generally occurs if certain stockholders increase their aggregate percentage ownership of a corporation's stock by more than 50 percentage points over their lowest percentage ownership at any time during the testing period, which is generally the three-year period preceding any potential ownership change. The Company has not completed an analysis to determine whether any such limitations have been triggered as of December 31, 2019. A reconciliation of the statutory tax rate to the effective tax rate is as follows:
|  | Six Months Ended December 31, 2019 |  |  | (Unaudited) Six Months Ended December 31, 2018 |  |  | Year Ended June 30, 2019 |  |  | Year Ended June 30, 2018 |
Statutory federal income tax rate |  |  | 21 | % |  |  | 21 | % |  |  | 21 | % |  |  | 27.5 | %
State (net of federal benefit) |  |  | 11.96 | % |  |  | 8.4 | % |  |  | 9.5 | % |  |  | 6 | %
Non-deductible expenses |  |  | (5.75 | )% |  |  | (8.5 | )% |  |  | (6.3 | )% |  |  | (6.0 | )%
Impact of Tax Cuts and Jobs Act |  |  | - | % |  |  | - | % |  |  | - | % |  |  | (71.6 | )%
Other |  |  | 5.27 | % |  |  | 1.7 | % |  |  | 1 | % |  |  | - | %
Change in valuation allowance |  |  | (32.48 | )% |  |  | (22.6 | )% |  |  | (25.2 | )% |  |  | 44.1 | %
Effective income tax rate |  |  | 0 | % |  |  | 0 | % |  |  | 0 | % |  |  | 0 | %
The Company does not have any uncertain tax positions at December 31, 2019, June 30, 2019 and 2018 that would affect its effective tax rate. The Company does not anticipate a significant change in the amount of unrecognized tax benefits over the next twelve months. Because the Company is in a loss carryforward position, the Company is generally subject to US federal and state income tax examinations by tax authorities for all years for which a loss carryforward is available. If and when applicable, the Company will recognize interest and penalties as part of income tax expense.

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 taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration