INCOME TAX (Tables)

12 Months Ended

Jun. 30, 2025

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)