XML 34 R19.htm IDEA: XBRL DOCUMENT v3.23.3
PROVISION FOR INCOME TAXES
 12 Months Ended
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:

 

   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.