XML 29 R17.htm IDEA: XBRL DOCUMENT v3.25.2
Income Tax Provision
 12 Months Ended
Jun. 30, 2025
Income Tax Provision  
Income Tax Provision

Note 10 – Income Tax Provision

The Company has no current tax expense due to its losses.

The income tax expense for the years ended June 30, 2025 and 2024 differed from the amounts computed by applying the U.S. federal income tax rate of 21% and 21% respectively as follows:

​

​

​

​

​

​

​

​

​

For the Year Ended

 

​

    

June 30, 

    

June 30, 

 

​

​

2025

​

2024

 

Federal statutory rate

 

(21.00)

%  

(21.00)

%

Research and development credit

 

4.71

%  

3.45

%

State tax rate

 

(5.93)

%  

(5.93)

%

Nondeductible tax rate

​

(0.01)

%

—

​

Other

 

(0.75)

%  

(0.86)

%

Valuation allowance

 

22.98

%  

24.43

%

Effective tax rate

 

—

 

—

​

​

The significant components of the Company’s deferred tax assets at June 30, 2025 and 2024 are as follows:

​

​

​

​

​

​

​

​

​

    

June 30, 

    

June 30, 

​

​

2025

​

2024

Net operating loss

​

$

31,115,532

​

$

29,351,534

Research and development credit

​

 

8,600,732

​

 

8,154,686

IRC Sec.174 R&E capitalization

​

 

2,748,509

​

 

2,243,662

Other

​

 

27,271

​

 

22,087

​

​

​

​

​

​

​

Total gross deferred tax assets

​

 

42,492,044

​

 

39,771,969

Less: valuation allowance

​

 

(42,492,044)

​

 

(39,771,969)

Net deferred tax asset

​

$

—

​

$

—

​

At June 30, 2025 and 2024, the Company has recorded a full valuation allowance against its net deferred tax assets of $42,492,044 and $39,771,969, respectively, since in the judgment of management, these assets are not more than likely than not to be realized. The Total gross deferred assets increased $2,720,075 from $39,771,969 at June 30, 2024 to $42,492,044 at June 30, 2025.

As of June 30, 2025, the Company has approximately $116 million of gross net operating loss carryforwards available to reduce future taxable income, if any for federal and state tax purposes. The aggregate federal net operating losses generated for the years ended June 30, 2025 and 2024 of approximately $11 million can be carried forward indefinitely. However, the deduction for net operating losses incurred in tax years beginning after January 1, 2018 is limited to 80% of annual taxable income. Net operating losses generated in years ended June 30, 2018 and prior have a 20-year carryforward and will begin expiring in 2025. As of June 30, 2025 and 2024, research and development credit carryforwards for federal and state purposes are $8,600,732, and $8,154,686, respectively. The state net operating loss and credit carryforwards begin to expire in 2025.

Due to the change in ownership provisions of the Internal Revenue Code, the availability of the Company’s net operating loss carry-forwards could be subject to annual limitations against taxable income in future periods, which could substantially limit the eventual utilization of such carryforwards. The Company has not analyzed the historical or potential impact of its equity financings on beneficial ownership and therefore no determination has been made whether the net operating loss carryforward is subject to any Internal Revenue Code Section 382 limitation. To the extent there is a limitation, there could be a reduction in the deferred tax asset with an offsetting reduction in the valuation allowance.

The Company does not have any uncertain tax positions at June 30, 2025 and June 30, 2024 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.