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Income taxes
 12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income taxes

 

12. Income taxes

 

A reconciliation of the effective tax rate to the statutory rate is shown below:

 

   June 30, 2025   June 30, 2024 
         
Loss before taxes  $(349,227)  $(9,521,488)
           
Expected income tax credit at statutory rate of 25%
(2024: 25%)		  $(87,307)  $(2,380,372)
Increase (decrease) in income taxes resulting from:          
Change in fair value of warrants   (506,236)     
Loss on extinguishment of warrants   71,337      
Valuation allowance for deferred tax asset   388,969    - 
IPO related expenses   150,000    12,622 
Provision for bad debt   -    144,816 
Realized gain in investments   (12,669)   - 
Unrealized loss on investments   -    88,695 
Debt discount   -    277,022 
Non-taxable other income   (53,171)   (30,472)
-Non-tax deductible personnel expenses   42,578    29,544 
Non-tax deductible consulting fees   154,777    1,367,032 
Non-tax deductible general and administrative expenses   201,924    308,512 
Other items, net   (16,705)   (26,742)
Income tax expense (credit)  $333,497   $(209,343)

 

The tax effects temporary differences that gave rise to the deferred tax assets and liabilities are as follows:

 

   June 30, 2025   June 30, 2024 
Deferred tax assets:          
Accrued employee benefits  $41,582   $37,199 
Unrealized foreign exchange (gain) loss   (1,264)   10,294 
Depreciation   (5,031)   (6,783)
Operating right of use assets and lease liabilities   5,692    5,639 
Accumulated tax loss   347,990    238,989 
Provision for bad debt   -    56,784 
Valuation allowance for deferred tax asset   (388,969)   - 
Net deferred tax asset  $-   $342,122 

 

As of June 30, 2025 and 2024, the Company had no provision for uncertain tax positions and no provisions for penalties or interest. In addition, the Company does not believe that there are any uncertain tax benefits that could be recognized in the near future that would impact the Company’s effective tax rate.