XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Income Taxes | 12 Months Ended
--- | ---
Jun. 30, 2022
IncomeTaxDisclosure [Abstract] |
Income Taxes | Note 7 - Income Taxes For the year ended June 30, 2022 and prior periods since inception, the Company’s activities have not generated taxable income. A valuation allowance has been recorded on tax loss carryforwards and other deferred tax assets. Accordingly, the Company has not recognized any current or deferred income tax expense or benefit for the years ended June 30, 2022 and 2021. A reconciliation of the provision for income taxes to income taxes computed by applying the statutory United States federal rate to income before taxes is as follows:
|  | For the Years Ended June 30, |
|  | 2022 |  |  | 2021 |
Income tax, at applicable federal tax rate |  | $ | (1,894,858 | ) |  | $ | (2,433,121 | )
State income tax |  |  | (451,344 | ) |  |  | (374,728 | )
Change in valuation allowance |  |  | 2,440,991 |  |  |  | 2,070,288 |
Permanent differences |  |  | 125,216 |  |  |  | - |
Non-deductible interest |  |  | - |  |  |  | 710,560 |
Prior period adjustment |  |  | (220,005 | ) |  |  | - |
Other |  |  | - |  |  |  | 27,001 |
|  | $ | - |  |  | $ | - |
The details of the net deferred tax asset are as follows:
|  | For the Years Ended June 30, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 6,000,166 |  |  | $ | 3,863,935 |
Stock-based compensation |  |  | 771,816 |  |  |  | 522,836 |
Capitalization of start-up costs for tax purposes |  |  | 114,800 |  |  |  | 125,004 |
Depreciation |  |  | 3,560 |  |  |  | 5,148 |
Accrued payroll |  |  | 35,559 |  |  |  | 42,214 |
Deferred revenues |  |  | 17,255 |  |  |  | 149 |
Charitable contributions |  |  | 3,913 |  |  |  | 3,777 |
Gross deferred tax assets |  |  | 6,947,069 |  |  |  | 4,563,063 |
Valuation allowance recognized for deferred tax assets |  |  | (6,666,179 | ) |  |  | (4,225,188 | )
Net deferred tax assets |  |  | 280,890 |  |  |  | 337,875 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Capitalized software |  |  | (280,890 | ) |  |  | (337,875 | )
Gross deferred tax liabilities |  |  | (280,890 | ) |  |  | (337,875 | )
Net deferred tax assets |  |  | - |  |  |  | - |
The Company has approximately $23.3 million of net operating loss carryforwards for federal and $23.3 million for state, available to reduce future income taxes. Of the $23.3 million of federal net operating losses, approximately $17,000 will expire in 2037 and the balance can be utilized indefinitely but will be limited to 80% utilization. The state net operating losses will begin to expire in 2027. Due to uncertainty as to the realization of the net operating loss carryforwards and other deferred tax assets as a result of the Company’s limited operating history and operating losses since inception, a full valuation allowance has been recorded against the Company’s deferred tax assets. The Company does not have any uncertain tax positions. The net operating loss carryforwards may be subject to an annual limitation as a result of a change of ownership as defined under Internal Revenue Code Section 382. Tax years 2019-2022 remain open to examination for federal income tax purposes and by other major taxing jurisdictions to which the Company is subject.

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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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