Annual report pursuant to Section 13 and 15(d)

Income Taxes

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Income Taxes
12 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
10. Income Taxes

 

No provision for federal and state income taxes has been recognized for the years ended June 30, 2017 and 2016, as the Company incurred a net operating loss for income tax purposes in each period and has no carryback potential.

 

The Company had net operating loss carry-forwards for income tax reporting purposes of approximately $10,700,000 as of June 30, 2017, which may be offset against future taxable income. These net operating loss carry-forwards may be carried forward in varying amounts until the time when they expire in 2037. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs or a change in the nature of the business, both of which occurred on February 7, 2014. Therefore, the amount available to offset future taxable income has been limited.

 

Deferred tax assets consisted of the following as of June 30, 2017 and 2016:

 

    June 30, 2017     June 30, 2016  
Net operating loss carry-forwards   $ 3,600,000     $ 2,873,000  
Valuation allowance     (3,600,000 )     (2,873,000 )
Net deferred tax asset   $     $