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INCOME TAX (Tables)

12 Months Ended

Jun. 30, 2025

INCOME TAX

Schedule of income tax benefit (provision)

​

​	​	​	​	​	​	​
​		June 30, 2025			June 30, 2024
Current Tax:	​		​	​		​
Federal	​	$	—	​	$	—
State	​		1,556	​		3,170
Total current	​		1,556	​		3,170
​	​	​	​	​	​	​
Deferred Tax:	​		​	​		​
Federal	​		(209,219)	​		(546,276)
State	​		(51,718)	​		(26,630)
Total deferred	​		(260,937)	​		(572,906)
​	​	​	​	​	​	​
Total benefit on income taxes	​	$	(259,381)	​	$	(569,736)
​	​	​	​	​	​	​

Schedule of federal income tax rate to the company's effective tax rate

​

​	​	​	​	​	​	​
​		June 30, 2025			Rate
Tax at Statutory rate (21%)	​	$	1,153,091	​	21.00	%
​	​	​	​	​	​	​
Permanent Differences:	​		​	​	​	​
Change in fair value of warrant liability	​	$	(38,765)	​	(0.71)	%
Meals	​		2,836	​	0.05	%
Entertainment	​		34	​	0.00	%
Chane in fair value of convertible note	​		(837,981)	​	(15.26)	%
Change in fair value of Long-Term and Short-Term Investor Notes	​		(2,597,515)	​	(47.31)	%
Change in fair value of Earnout Liability	​		(195,090)	​	(3.55)	%
Change in fair value of Subscription Agreement	​		13,503	​	0.25	%
Change in fair value of Stock Payable	​		(48,887)	​	(0.89)	%
Change in fair value of Tau Agreement	​		85,597	​	1.56	%
Change in fair value of Tau commitment fee	​		(10,536)	​	(0.19)	%
Change in fair value of WDCO sellers convertible note	​		(10,363)	​	(0.19)	%
Change in fair value of WDCO Share payable	​		176,353	​	3.21	%
Change in statutory rate	​		13,123	​	0.24	%
Return To Provision	​		(1,477,734)		(26.91)	%
State Tax – Net of Federal Benefit	​		(400,312)	​	(7.29)	%
State Minimum Tax – Net of Federal Benefit	​		1,229	​	0.02	%
Chang in Valuation Allowance – State	​		441,782	​	8.05	%
Chang in Valuation Allowance - Federal	​		1,752,730	​	31.92	%
Net adjustments - Federal	​	​	181,158	​	3.30	%
–Goodwill intangible DTA recognized as part of acquisition	​		1,536,366	​	27.98	%
Income tax benefit	​	$	(259,381)	​	(4.72)	%

​

​	​	​	​	​	​	​
​		June 30, 2024			Rate
Tax at Statutory rate (21%)		$	(25,376,496)	​	21.00	%
​	​	​	​	​	​	​
Permanent Differences:		​	​	​	​	​
Change in fair value of NRA liability		$	34,571	​	(0.03)	%
Meals		​	1,769	​	0.00	%
Entertainment		​	161	​	0.00	%
Nondeductible transaction costs	​	​	1,891,691	​	(1.57)	%
Change in fair value of Long-Term and Short-Term Investor Notes	​	​	2,353,692	​	(1.95)	%
Change in fair value of Secured Convertible Note	​	​	753,039	​	(0.62)	%
Change in fair value of Earnout Liability	​	​	280,350	​	(0.23)	%
Change in fair value of Subscription Agreement	​	​	8,147	​	(0.01)	%
Change in fair value of Stock Payable	​	​	(206,865)	​	0.17	%
Loss on AtlasClear acquisition	​	​	18,142,481	​	(15.01)	%
Stock Compensation Expense	​	​	307,157	​	(0.25)	%
Extinguishment of Accrued Liabilities	​	​	(184,689)	​	0.15	%
Change in fair value of WDCO Share payable	​	​	683,941	​	(0.57)	%
Return To Provision	​	​	(477,461)	​	0.40	%
State Tax – Net of Federal Benefit	​	​	(220,234)	​	0.18	%
State Minimum Tax – Net of Federal Benefit	​	​	2,504	​	0.00	%
Chang in Valuation Allowance – State		​	499,331	​	(0.41)	%
Chang in Valuation Allowance - Federal		​	937,175	​	(0.78)	%
Income tax benefit		$	(569,736)	​	0.47	%

Schedule of net deferred tax assets (liability)

​

​	​	​	​	​	​	​
​		June 30, 2025			June 30, 2024
Deferred Tax Assets:		​			​
Fixed Assets	​	$	3,881	​	$	261
Business Combination Expenses	​		533,602	​		530,560
IRC Sec. 195 Start-Up Costs	​		896,917	​		956,768
Allowance for Bad Debt	​		102,733	​		3,820
Accrued Contingent Liability	​		25,611	​		25,465
Lease Liability (ASC 842)	​		46,799	​		84,602
IRC Sec. 1231 Losses	​		1,775	​		1,774
Net Operating Loss	​		3,612,862	​		1,361,541
Total Deferred Tax Asset	​		5,224,180	​		2,964,791
​	​	​	​	​	​	​
Deferred Tax Liabilities:	​		​	​		​
Intangible Assets	​		3,312,054	​		5,167,729
ROU Lease Asset (ASC 842)	​		45,912	​		83,102
State Tax - Current	​		526	​		526
State Tax - Deferred	​		89,732	​		110,452
Total Deferred Tax Liability	​		3,448,224	​		5,361,809
Net Deferred Tax Asset/(Liability) before Valuation allowance	​		1,775,956	​		(2,397,018)
Valuation Allowance	​		(5,043,381)	​		(2,848,868)
Net Deferred Tax Asset/(Liability)	​	$	(3,267,425)	​	$	(5,245,886)

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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