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PROVISION FOR INCOME TAXES | 12 Months Ended
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Jun. 30, 2023
Income Tax Disclosure [Abstract] |
PROVISION FOR INCOME TAXES | NOTE 12. PROVISION FOR INCOME TAXES There was no current or deferred income tax provision for the years ended June 30, 2023 and 2022. The Company’s deferred tax assets as of June 30, 2023 and 2022 consist of the following: SCHEDULE OF DEFERRED TAX ASSETS
|  | As of June 30, |  |  | As of June 30, |
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Net-operating loss carryforward |  | $ | 11,557,098 |  |  | $ | 7,795,509 |
Goodwill and intangible asset impairment |  |  | 5,305,044 |  |  |  | - |
Stock-based compensation |  |  | 368,831 |  |  |  | 392,174 |
Other |  |  | 564,531 |  |  |  | 180,297 |
Total Deferred Tax Assets |  |  | 17,795,504 |  |  |  | 8,367,980 |
Valuation allowance |  |  | (17,795,504 | ) |  |  | (8,367,980 | )
Deferred Tax Asset, Net |  | $ | - |  |  | $ | - |
The Company maintains a valuation allowance on deferred tax assets due to the uncertainty regarding the ability to utilize these deferred tax assets in the future. At June 30, 2023, the Company had aggregate net operating loss carryforwards (“NOLs”) of approximately $33.44 million. NOLs for the periods ending June 30, 2018 and prior ($2.88 million) begin to expire in 2037. NOLs for the years ending June 30, 2019 through 2023 ($30.46 million), in accordance with changes to the U.S. Internal Revenue Code, have no expiration. Section 382 of the U.S. Internal Revenue Code generally imposes an annual limitation on the amount of net operating loss carryforwards that might be used to offset taxable income when a corporation has undergone significant changes in stock ownership. The Company has not completed a Section 382 analysis of the NOL carryforwards. Consequently, the Company’s NOL carryforwards may be subject to annual limitations under Section 382. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and taxing strategies in making this assessment. As a result of the uncertainty in the realization of the Company’s deferred tax assets, the Company has provided a valuation allowance for the full amount of the deferred tax assets at June 30, 2023 and June 30, 2022. The Company’s valuation allowance during the years ended June 30, 2023 and 2022 increased by approximately $9.43 million and $3.91 million, respectively. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 The expected tax expense (benefit) based on the U.S. federal statutory rate is reconciled with actual tax expense (benefit) as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION STATUTORY RATE
|  | For the year ended June 30, 2023 |  |  | For the year ended June 30, 2022 |
Statutory Federal Income Tax Rate |  |  | (21.00 | )% |  |  | (21.00 | )%
State and Local Taxes, Net of Federal Tax Benefit |  |  | (13.56 | )% |  |  | (13.56 | )%
Stock Based Compensation Expense (ISO) |  |  | 3.21 | % |  |  | 12.78 | %
Change in Contingent Consideration |  |  | (1.55 | )% |  |  | (14.08 | )%
Goodwill Amortization |  |  | (0.82 | )% |  |  | (2.21 | )%
Valuation Allowance |  |  | 33.72 | % |  |  | 38.07 | %
Income Taxes Provision (Benefit) |  |  | 0.00 |  |  |  | 0.00 |
Upon completion of its 2023 U.S. income tax return, the Company may identify additional remeasurement adjustments. The Company will continue to assess its provision for income taxes as future guidance is issued, but does not currently anticipate significant revisions will be necessary.

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- 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://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 2: 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 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: 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 5: 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 6: 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//1943274/2147482526/740-270-50-1 Reference 7: 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 8: 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 9: 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 10: 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
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