| SCHEDULE OF INCOME TAX PROVISION |
The
reconciliation of income tax expense computed at the U.S. federal statutory rate of 21% to the income tax provision for the years ended
June 30, 2026 and 2025 is as follows:
SCHEDULE OF INCOME TAX PROVISION
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended |
|
|
|
|
| |
|
June 30, 2026 |
|
|
% |
|
|
June 30, 2025 |
|
|
% |
|
| Loss before Income taxes |
|
$ |
(18,862,710 |
) |
|
|
|
|
|
$ |
(58,923,300 |
) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Taxes under statutory US tax rates |
|
$ |
(3,961,170 |
) |
|
|
21 |
% |
|
$ |
(12,373,893 |
) |
|
|
21 |
% |
| Increase (decrease) in valuation allowance |
|
|
3,668,330 |
|
|
|
(19.4 |
)% |
|
|
12,383,827 |
|
|
|
(21 |
)% |
| Foreign tax rate differential |
|
|
(72,125 |
) |
|
|
0.4 |
% |
|
|
(54,939 |
) |
|
|
0.1 |
% |
| Settlement expenses |
|
|
67,200 |
|
|
|
(0.4 |
)% |
|
|
- |
|
|
|
- |
|
| Foreign exchange revaluation of foreign NOLs |
|
|
307,160 |
|
|
|
(1.7 |
)% |
|
|
- |
|
|
|
- |
|
| Other |
|
|
(17,630 |
) |
|
|
0.1 |
% |
|
|
92,571 |
|
|
|
(0.2 |
)% |
| Prior period adjustment |
|
|
- |
|
|
|
- |
|
|
|
(47,566 |
) |
|
|
0.1 |
% |
| Other adjustments |
|
|
8,235 |
|
|
|
0.0 |
% |
|
|
- |
|
|
|
- |
|
| Income tax (expense) benefit |
|
$ |
- |
|
|
|
0 |
% |
|
$ |
- |
|
|
|
0 |
% |
|
| SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES |
Deferred
income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial
reporting purposes and amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities
consist of the following:
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
| |
|
|
|
|
|
|
| |
|
Year Ended |
|
| |
|
June 30, 2026 |
|
|
June 30, 2025 |
|
| Deferred tax assets |
|
|
|
|
|
|
|
|
| Warrant Derivative Liability |
|
$ |
486,514 |
|
|
$ |
468,457 |
|
| Accrued Expenses |
|
|
624,997 |
|
|
|
614,493 |
|
| Prepaid Investor Services |
|
|
582,409 |
|
|
|
582,409 |
|
| Non-cash interest |
|
|
817,536 |
|
|
|
817,536 |
|
| Intangibles (Intellectual Property and Patent Cost) |
|
|
417,441 |
|
|
|
367,347 |
|
| Deferred Rent |
|
|
5,084 |
|
|
|
4,114 |
|
| Formation Expense |
|
|
6,553 |
|
|
|
6,553 |
|
| Net Operating Loss carryforward |
|
|
27,614,180 |
|
|
|
25,483,996 |
|
| Gain on extinguishment of debt |
|
|
11,440 |
|
|
|
102,604 |
|
| Total Deferred tax assets |
|
$ |
30,566,154 |
|
|
$ |
28,447,509 |
|
| |
|
|
|
|
|
|
|
|
| Deferred tax liabilities |
|
|
|
|
|
|
|
|
| Research and Development |
|
$ |
(202,718 |
) |
|
$ |
(202,718 |
) |
| Stock Based Compensation |
|
|
(2,396,363 |
) |
|
|
(3,960,547 |
) |
| Foreign Exchange Loss (OCI) |
|
|
(39,379 |
) |
|
|
(39,379 |
) |
| Capital Raising Costs |
|
|
(413,245 |
) |
|
|
(398,746 |
) |
| Total deferred tax liabilities |
|
$ |
(3,051,705 |
) |
|
$ |
(4,601,390 |
) |
| |
|
|
|
|
|
|
|
|
| Net deferred tax assets |
|
$ |
27,514,449 |
|
|
$ |
23,846,119 |
|
| Valuation allowance |
|
|
(27,514,449 |
) |
|
|
(23,846,119 |
) |
| Net deferred tax assets |
|
$ |
- |
|
|
$ |
- |
|
|