| 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, 2020 and 2019 is as follows:
| |
|
Year Ended |
|
| |
|
June 30, 2020 |
|
|
June 30, 2019 |
|
| |
|
|
|
|
|
|
|
|
| Taxes under statutory US tax rates |
|
$ |
(995,552 |
) |
|
$ |
(1,209,258 |
) |
| Increase (decrease) in valuation allowance |
|
|
1,137,716 |
|
|
|
1,394,444 |
|
| Prior period adjustment |
|
|
(14,624 |
) |
|
|
- |
|
| Foreign tax rate differential |
|
|
(128,492 |
) |
|
|
(186,286 |
) |
| Other |
|
|
952 |
|
|
|
1,100 |
|
| Income tax (expense) benefit |
|
$ |
- |
|
|
$ |
- |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
Significant components of the Company’s
deferred tax assets and liabilities consist of the following:
| |
|
Year Ended |
|
| |
|
June 30, 2020 |
|
|
June 30, 2019 |
|
| Deferred tax assets |
|
|
|
|
|
|
|
|
| Warrant Derivative Liability |
|
$ |
7,403 |
|
|
$ |
7,403 |
|
| Accrued Expenses |
|
|
297,086 |
|
|
|
198,193 |
|
| Prepaid Investor Services |
|
|
470,050 |
|
|
|
414,396 |
|
| Non-cash interest |
|
|
596,004 |
|
|
|
- |
|
| Intangibles (Intellectual Property and Patent Cost) |
|
|
240,428 |
|
|
|
212,881 |
|
| Deferred Rent |
|
|
1,969 |
|
|
|
- |
|
| Formation Expense |
|
|
7,208 |
|
|
|
7,208 |
|
| Net Operating Loss carry forward |
|
|
7,438,911 |
|
|
|
6,573,215 |
|
| Foreign Exchange Loss (OCI) |
|
|
(39,379 |
) |
|
|
(39,379 |
) |
| Revalue of derivative liability |
|
|
438,239 |
|
|
|
519,151 |
|
| Stock Based Compensation |
|
|
51,481 |
|
|
|
51,481 |
|
| Total Deferred tax assets |
|
$ |
9,509,400 |
|
|
$ |
7,944,549 |
|
| |
|
|
|
|
|
|
|
|
| Deferred tax liabilities |
|
|
|
|
|
|
|
|
| R&D |
|
$ |
(177,702 |
) |
|
$ |
(139,833 |
) |
| Gain on extinguishment of debt |
|
|
(266,987 |
) |
|
|
- |
|
| Capital Raising Costs |
|
|
(255,614 |
) |
|
|
(133,335 |
) |
| Total deferred tax liabilities |
|
$ |
(700,303 |
) |
|
$ |
(273,168 |
) |
| |
|
|
|
|
|
|
|
|
| Net deferred tax assets |
|
$ |
8,809,097 |
|
|
$ |
7,671,381 |
|
| Valuation allowance |
|
|
(8,809,097 |
) |
|
|
(7,671,381 |
) |
| Net deferred taxes |
|
$ |
- |
|
|
$ |
- |
|
|