XML 21 R13.htm IDEA: XBRL DOCUMENT
v3.21.4

INCOME TAXES | 12 Months Ended
--- | ---
Jun. 30, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 7 – INCOME TAXES The Company follows ASC 740-10-10, under which an entity recognizes deferred tax assets and liabilities for future tax consequences or for events that were previously recognized in the Company’s financial statements or tax returns. The measurement of deferred tax assets and liabilities is based on enacted tax law provisions. The effects of future changes in tax laws or rates are not anticipated. Through June 30, 2010, the Company operated exclusively in Australia. The Company was wholly subject to Australian income tax laws and regulations, which are administered by the Australian Taxation Office for the years ended June 30, 2010 and all prior years. On November 23, 2010, the Company was incorporated in the state of Delaware. In January 2011, the Company acquired all of the outstanding shares of Propanc PTY LTD on a one-for-one basis with Propanc PTY LTD becoming a wholly owned subsidiary of the Company. As a result of these transactions, the Company is subject to the income tax laws of both the United States and Australia for the years ended June 30, 2013 through June 30, 2021. The reconciliation of income tax expense computed at the U.S. federal statutory rate of 21% to the income tax provision for the years ended June 30, 2021 and 2020 is as follows: SCHEDULE OF INCOME TAX PROVISION
US |  | June 30, 2021 |  |  | June 30, 2020 |
|  | Year Ended |
US |  | June 30, 2021 |  |  | June 30, 2020 |
Loss before Income taxes |  | $ | (2,025,947 | ) |  | $ | (4,740,723 | )
Taxes under statutory US tax rates |  | $ | (425,449 | ) |  | $ | (995,552 | )
Increase (decrease) in valuation allowance |  |  | 1,146,001 |  |  |  | 1,137,716 |
Prior period adjustment |  |  | (1,063,710 | ) |  |  | (14,624 |
Foreign tax rate differential |  |  | (51,169 | ) |  |  | (128,492 | )
Income tax rate change |  |  | 392,767 |  |  |  | - |
Other |  |  | 1,559 |  |  |  | 952 |
Income tax (expense) benefit |  | $ | - |  |  | $ | - |
The Company reflects a tax benefit on its consolidated statement of operations and comprehensive income (loss) in 2021 and 2020 of $113,415 and $134,728, respectively. These amounts are research and development tax credits and are not considered income tax. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company is currently evaluating the impact of the CARES Act, but due to sustained losses, the NOL carryback provision of the CARES Act would not yield a benefit to us. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities consist of the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
|  | June 30, 2021 |  |  | June 30, 2020 |
|  | Year Ended |
|  | June 30, 2021 |  |  | June 30, 2020 |
Deferred tax assets |  |  |  |  |  |  |  |
Warrant Derivative Liability |  | $ | 7,403 |  |  | $ | 7,403 |
Accrued Expenses |  |  | 342,464 |  |  |  | 297,086 |
Prepaid Investor Services |  |  | 444,411 |  |  |  | 470,050 |
Non-cash interest |  |  | 687,529 |  |  |  | 596,004 |
Intangibles (Intellectual Property and Patent Cost) |  |  | 259,743 |  |  |  | 240,428 |
Deferred Rent |  |  | 4,262 |  |  |  | 1,969 |
Formation Expense |  |  | 6,815 |  |  |  | 7,208 |
Net Operating Loss CF |  |  | 8,546,920 |  |  |  | 7,438,911 |
Foreign Exchange Loss (OCI) |  |  | (39,379 | ) |  |  | (39,379 | )
Revalue of derivative liability |  |  | 439,958 |  |  |  | 438,239 |
Stock Based Compensation |  |  | 51,481 |  |  |  | 51,481 |
Total Deferred tax assets |  | $ | 10,751,607 |  |  | $ | 9,509,400 |
Deferred tax liabilities |  |  |  |  |  |  |  |
R&D |  | $ | (197,604 | ) |  | $ | (177,702 | )
Gain on extinguishment of debt |  |  | (277,614 | ) |  |  | 266,987 |
Capital Raising Costs |  |  | (321,291 | ) |  |  | (255,614 | )
Total deferred tax liabilities |  | $ | (796,509 | ) |  | $ | (700,303 | )
Net deferred tax assets (liabilities) |  | $ | 9,955,098 |  |  | $ | 8,809,097 |
Valuation allowance |  |  | (9,955,098 | ) |  |  | (8,809,097 | )
Net deferred tax assets (liabilities) |  | $ | - |  |  | $ | - |
PROPANC BIOPHARMA, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 and 2020 At June 30, 2021, the Company had U.S. net operating loss carry forwards of approximately $9,588,164 that may be offset against future taxable income, subject to limitation under IRC Section 382. Of the approximately $9.6 million of net operating loss carryforwards, $7.2 million will begin to expire in 2024 and the remaining $2.4 million will not expire. The Australian tax rate changed from 27.5% in 2020 to 26% in 2021. At June 30, 2021, the Company had Australia net operating loss carry forwards of approximately $25,128,485 million which can be carried forward without expiration. No tax benefit has been reported in the June 30, 2021 and 2020 consolidated financial statements due to the uncertainty surrounding the realizability of the benefit, based on a more likely than not criteria and in consideration of available positive and negative evidence. The Company applied the “more-likely-than-not” recognition threshold to all tax positions taken or expected to be taken in a tax return, which resulted in no unrecognized tax benefits as of June 30, 2021 and 2020, respectively. Management has determined that the realization of the net deferred tax asset is not assured and has created a valuation allowance for the entire amount of such benefits. The Company follows ASC 740-10, which provides guidance for the recognition and measurement of certain tax positions in an enterprise’s financial statements. Recognition involves a determination whether it is more likely than not that a tax position will be sustained upon examination with the presumption that the tax position will be examined by the appropriate taxing authority having full knowledge of all relevant information. The Company applied the “more-likely-than-not” recognition threshold to all tax positions taken or expected to be taken in a tax return, which resulted in no unrecognized tax benefits as of June 30, 2021 and 2020, respectively. The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the consolidated statement of operations. As of June 30, 2021, the Company had no unrecognized tax benefits. There were no changes in the Company’s unrecognized tax benefits during the years ended June 30, 2021 and 2020. The Company did not recognize any interest or penalties during fiscal 2021 or 2020 related to unrecognized tax benefits. The income tax returns filed for the tax years from inception will be subject to examination by the relevant taxing authorities.

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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration