Annual report pursuant to Section 13 and 15(d)

13. INCOME TAXES

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13. INCOME TAXES
 12 Months Ended
Jun. 30, 2014
Income Taxes  
Income taxes

The Company has incurred net losses since inception. At June 30, 2014 and 2013, the Company had federal net operating loss carry-forwards of approximately $46,000,000 and $45,000,000, respectively, which at the latter date may be carried forward for tax years ending through June 30, 2034. Utilization of NOL carry-forwards may be limited under various sections of the Internal Revenue Code depending on the nature of the Company’s operations. The Company’s income tax returns are subject to examination by the Internal Revenue Service and applicable state taxing authorities, generally for a period of three years from the date of filing.

 

Deferred tax assets comprise the following at June 30, 2014 and June 30, 2013, respectively:

 

    June 30,  
    2014     2013  
Deferred Income Tax Assets   $ 15,213,128     $ 15,879,453  
Valuation Allowance     (15,213,128)       (15,879,453)  
Net Deferred Tax Asset   $ -0-     $ -0-  

  

Reconciliation of the effective income tax rate to the federal statutory rate:            
Federal income tax rate     34.0 %     34.0 %
Change in valuation allowance on net operating loss carry-     forwards     (34.0 %)     (34.0 %)
Effective income tax rate     0.0 %     0.0 %

 

The valuation allowance decreased by approximately $666,000 for the year ended June 30, 2014 and increased by approximately $3,600,000 for the year ended June 30, 2013.