EnSync (ESNC) 10-Q 13 Nov 18 2019 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Sep. 30, 2018	Nov. 13, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Entity Registrant Name	EnSync, Inc.
Entity Central Index Key	1,140,310
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Trading Symbol	ESNC
Entity Common Stock, Shares Outstanding		68,088,055
Entity Emerging Growth Company	false
Entity Small Business	true

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 2,981,785	$ 2,984,532
Accounts receivable, net	17,504	215,009
Inventories, net	1,487,477	1,220,448
Costs and estimated earnings in excess of billings	863,841	528,266
Prepaid expenses and other current assets	482,129	929,379
Total current assets	5,832,736	5,877,634
Long-term assets:
Property and equipment, net	812,886	775,545
Investment in investee company	1,624,108	1,640,054
Goodwill	809,363	809,363
Right of use assets-operating leases	1,011,620	1,087,249
Other assets	91,087	91,087
Total assets	10,181,800	10,280,932
Current liabilities:
Accounts payable	877,913	1,142,256
Billings in excess of costs and estimated earnings	258,257	176,294
Accrued expenses	1,027,702	1,236,680
Total current liabilities	2,163,872	2,555,230
Long-term liabilities:
Long-term debt	331,827	331,827
Deferred revenue	711,359	538,937
Other long-term liabilities	1,029,766	1,072,120
Total liabilities	4,236,824	4,498,114
Commitments and contingencies
Equity
Series B redeemable convertible preferred stock ($0.01 par value, $1,000 face value), 3,000 shares authorized and issued, 2,300 shares outstanding	23	23
Series C convertible preferred stock ($0.01 par value, $1,000 face value), 28,048 shares authorized, issued, and outstanding	280	280
Common stock ($0.01 par value), 300,000,000 authorized, 68,014,385 and 56,609,115 shares issued and outstanding as of September 30, 2018 and June 30, 2018, respectively	1,388,458	1,274,406
Additional paid-in capital	145,911,154	143,008,995
Accumulated deficit	(140,381,353)	(137,609,659)
Accumulated other comprehensive loss	(1,587,702)	(1,587,702)
Total EnSync, Inc. equity	5,330,860	5,086,343
Noncontrolling interest	614,116	696,475
Total equity	5,944,976	5,782,818
Total liabilities and equity	$ 10,181,800	$ 10,280,932

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Common stock, par value	$ 0.01	$ 0.01
Common stock, Authorized	300,000,000	300,000,000
Common stock, Issued	68,014,385	56,609,115
Common stock, outstanding	68,014,385	56,609,115
Series B Redeemable Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, face value	$ 1,000	$ 1,000
Preferred stock, authorized shares	3,000	3,000
Preferred stock, issued shares	3,000	3,000
Preferred stock, outstanding shares	2,300	2,300
Series C Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, face value	$ 1,000	$ 1,000
Preferred stock, authorized shares	28,048	28,048
Preferred stock, issued shares	28,048	28,048
Preferred stock, outstanding shares	28,048	28,048

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Revenues	$ 2,738,206	$ 2,362,048
Costs and expenses
Cost of sales	2,377,268	2,066,910
Advanced engineering and development	1,242,446	1,447,947
Selling, general and administrative	1,927,308	2,303,671
Depreciation and amortization	38,344	97,392
Impairment of long-lived assets	0	447,000
Total costs and expenses	5,585,366	6,362,920
Loss from operations	(2,847,160)	(4,000,872)
Other income (expense)
Equity in loss of investee company	(15,946)	(50,025)
Interest income	483	7,133
Interest expense	(2,559)	(11,258)
Other income	11,129	69,998
Total other income (expense)	(6,893)	15,848
Loss before benefit for income taxes	(2,854,053)	(3,985,024)
Benefit for income taxes	0	0
Net loss	(2,854,053)	(3,985,024)
Net loss attributable to noncontrolling interest	82,359	93,230
Net loss attributable to EnSync, Inc.	(2,771,694)	(3,891,794)
Preferred stock dividend	(91,922)	(83,277)
Net loss attributable to common shareholders	$ (2,863,616)	$ (3,975,071)
Net loss per share
Basic and diluted	$ (0.05)	$ (0.07)
Weighted average shares - basic and diluted	59,758,292	55,550,492

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Net loss	$ (2,854,053)	$ (3,985,024)
Foreign exchange translation adjustments	0	632
Comprehensive loss	(2,854,053)	(3,984,392)
Net loss attributable to noncontrolling interest	82,359	93,230
Comprehensive loss attributable to EnSync, Inc.	$ (2,771,694)	$ (3,891,162)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Equity - USD ($)	Total	Series B Preferred Stock [Member]	Series C Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Noncontrolling Interest [Member]
Balance at Jun. 30, 2017		$ 23	$ 280	$ 1,260,324	$ 141,822,317	$ (124,639,644)	$ (1,584,578)	$ 1,049,045
Balance (Shares) at Jun. 30, 2017		2,300	28,048	55,200,963
Net loss		$ 0	$ 0	$ 0	0	(12,970,015)	0	(354,526)
Net currency translation adjustment		0	0	0	0	0	(3,124)	0
Issuance of common stock, net of costs		$ 0	$ 0	$ 3,670	93,004	0	0	0
Issuance of common stock, net of costs (Shares)		0	0	367,000
Contribution of capital from noncontrolling interest		$ 0	$ 0	$ 0	0	0	0	1,956
Stock-based compensation		$ 0	$ 0	$ 10,412	1,093,674	0	0	0
Stock-based compensation (Shares)		0	0	1,041,152
Balance at Jun. 30, 2018	$ 5,086,343	$ 23	$ 280	$ 1,274,406	143,008,995	(137,609,659)	(1,587,702)	696,475
Balance (Shares) at Jun. 30, 2018		2,300	28,048	56,609,115
Net loss	(2,771,694)	$ 0	$ 0	$ 0	0	(2,771,694)	0	(82,359)
Issuance of common stock, net of costs		$ 0	$ 0	$ 113,346	2,588,223	0	0	0
Issuance of common stock, net of costs (Shares)		0	0	11,334,616
Contribution of capital from noncontrolling interest	0
Stock-based compensation		$ 0	$ 0	$ 706	313,936	0	0	0
Stock-based compensation (Shares)		0	0	70,654
Balance at Sep. 30, 2018	$ 5,330,860	$ 23	$ 280	$ 1,388,458	$ 145,911,154	$ (140,381,353)	$ (1,587,702)	$ 614,116
Balance (Shares) at Sep. 30, 2018		2,300	28,048	68,014,385

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities
Net loss	$ (2,854,053)	$ (3,985,024)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property, plant and equipment	38,344	97,392
Stock-based compensation, net	314,642	435,608
Equity in loss of investee company	15,946	50,025
Provision for inventory reserve	57,265	54,928
Gain on sale of property, plant and equipment	(11,124)	(70,000)
Interest accreted on note receivable	0	(3,024)
Impairment of long-lived assets	0	447,000
Changes in assets and liabilities
Accounts receivable	197,505	265,250
Inventories	(324,294)	84,523
Costs and estimated earnings in excess of billings	(335,575)	(504,873)
Prepaids and other current assets	447,250	(151,826)
Accounts payable	(264,343)	1,003,940
Billings in excess of costs and estimated earnings	81,963	(331,603)
Accrued expenses	(175,958)	(184,366)
Deferred revenue	172,422	0
Net cash used in operating activities	(2,640,010)	(2,792,050)
Cash flows from investing activities
Expenditures for property and equipment	(75,430)	0
Proceeds from sale of property, plant and equipment	11,124	70,000
Payments from note receivable	0	6,000
Net cash provided by (used in) investing activities	(64,306)	76,000
Cash flows from financing activities
Repayments of long term debt	0	(84,348)
Net proceeds from issuance of common stock	2,701,569	119,459
Contribution of capital from noncontrolling interest	0	1,956
Net cash provided by financing activities	2,701,569	37,067
Net decrease in cash and cash equivalents	(2,747)	(2,678,983)
Cash and cash equivalents - beginning of period	2,984,532	11,782,962
Cash and cash equivalents - end of period	2,981,785	9,103,979
Supplemental disclosures of cash flow information:
Cash paid for interest	2,559	11,452
Supplemental noncash information:
Right of use asset obtained in exchange for new operating lease	$ (75,629)	$ (19,467)

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business EnSync, Inc. and its subsidiaries (“EnSync Energy,” “EnSync”, “we,” “us,” “our,” or the “Company”) is a renewable energy systems and services company whose innovative and differentiated technologies and capabilities are designed to deliver the least expensive, highest value and most reliable electricity. With the Company’s May 2018 announcement of the EnSync Home Energy System, the Company now serves all three major markets in the renewable energy space: Residential Energy Systems, Commercial Energy Systems and Independent Utility Energy Systems. The Company’s systems utilize highly configurable modules that, together with the Auto-Sync DC Bus and DER Flex TM Incorporated in 1998, the Company is headquartered in Menomonee Falls, Wisconsin, USA, with offices in Madison, Wisconsin, Petaluma, California, Honolulu, Hawaii and Shanghai, China. Interim Financial Data The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial data and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for fair presentation of the results of operations have been included. Operating results for the three months ended September 30, 2018 are not necessarily indicative of the results that might be expected for the year ending June 30, 2019. The condensed consolidated balance sheet at June 30, 2018 has been derived from audited financial statements at that date, but does not include all of the information and disclosures required by US GAAP. For a more complete discussion of accounting policies and certain other information, refer to the Company’s Annual Report filed on Form 10-K for the fiscal year ended June 30, 2018 filed with the Securities and Exchange Commission (“SEC”) on September 25, 2018. Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly and majority-owned subsidiaries and have been prepared in accordance with US GAAP and are reported in U.S. dollars. For subsidiaries in which the Company’s ownership interest is less than 100%, the noncontrolling interests are reported in stockholders’ equity in the condensed consolidated balance sheets. The noncontrolling interests in net income (loss), net of tax, are classified separately in the condensed consolidated statements of operations. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company’s fiscal year end is June 30. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. It is reasonably possible that the estimates we have made may change in the near future. Significant estimates underlying the accompanying condensed consolidated financial statements include those related to:  going concern assessment;  the timing of revenue recognition;  the allowance for doubtful accounts;  provisions for excess and obsolete inventory;  the lives and recoverability of property, plant and equipment and other long-lived assets, including the testing for impairment;  testing of goodwill for impairment;  contract costs, losses and reserves;  warranty obligations;  income tax valuation allowances;  discount rates for finance and operating lease liabilities;  stock-based compensation; and  valuation of equity instruments and warrants. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, a note receivable, accounts payable, bank loans, notes payable, equipment financing, equity instruments and warrants. The carrying amounts of the Company’s financial instruments approximate their respective fair values due to the relatively short-term nature of these instruments, except for the bank loans, notes payable, equipment financing, equity instruments and warrants. The carrying amounts of the bank loans and notes payable approximate fair value due to the interest rate and terms approximating those available to the Company for similar obligations. The interest rate on the equipment financing obligation was imputed based on the requirements described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 842-40-30-6. The Company accounts for the fair value of financial instruments in accordance with FASB ASC Topic 820 – Fair Value Measurements and Disclosures. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment utilized in measuring the fair value of assets and liabilities generally correlate to the level or pricing observability. FASB ASC Topic 820 describes a fair value hierarchy based on the following three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, for similar assets or liabilities in active markets. Level 3 inputs are unobservable inputs for the asset or liability. As such, the prices or valuation techniques require inputs that are both significant to the fair value measurement and are unobservable. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less to be cash equivalents. The Company maintains its cash deposits at financial institutions predominately in the U.S., Philippines, Hong Kong and China. The Company has not experienced any material losses in such accounts. Accounts Receivable Credit is extended based on an evaluation of a customer’s financial condition. Accounts receivable are stated at the amount the Company expects to collect from outstanding balances. The Company records allowances for doubtful accounts based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. The Company writes off accounts receivable against the allowance when they become uncollectible. Inventories Inventories are stated at the lower of cost or net realizable value, defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The Company provides inventory write-downs on excess and obsolete inventories based on historical usage. The write-down is measured as the difference between the cost of the inventory and net realizable value based upon assumptions about usage and charged to the provision for inventory, which is a component of cost of sales. Costs and Estimated Earnings in Excess of Billings/Billings in Excess of Costs and Estimated Earnings Costs and estimated earnings in excess of billings represent amounts earned and reimbursable under contracts accounted for under the percentage of completion method. The timing of when the Company bills its customers is generally dependent upon advance billing terms, milestone billings based on the completion of certain phases of the work, or when services are provided. Based on the Company’s historical experience, the Company generally considers the collection risk related to these amounts to be low. When events or conditions indicate that the amounts outstanding may become uncollectible, an allowance is estimated and recorded. The Company anticipates that substantially all of such amounts will be billed and collected over the next twelve months. Billings in excess of costs and estimated earnings represents amounts billed to customers in advance of being earned under contracts accounted for under the percentage of completion method. The Company anticipates that substantially all such amounts will be earned over the next twelve months. Property, Plant and Equipment Land, building, equipment, computers, furniture and fixtures are recorded at cost. Maintenance, repairs and betterments are charged to expense as incurred. Depreciation is provided for all plant and equipment on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives used for each class of depreciable asset are: Estimated Useful Lives Manufacturing equipment 3 - 7 years Office equipment 3 - 7 years Building and improvements 7 - 40 years The Company completed a review of the estimated useful lives of specific assets for the three months ended September 30, 2018 and determined that there were no changes in the estimated useful lives of assets. Impairment of Long-Lived Assets In accordance with FASB ASC Topic 360 – Impairment or Disposal of Long-Lived Assets, the Company assesses potential impairments to its long-lived assets including property, plant and equipment and intangible assets when there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable. If such an indication exists, the recoverable amount of the asset is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed in the condensed consolidated statements of operations. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate. On October 12, 2017, the Company accepted an offer to sell its corporate headquarters for $2,340,000, less commissions and other customary closing costs. As a result, the Company recorded an impairment charge of $447,000 on the building and land in its condensed consolidated statements of operations during the three months ended September 30, 2017. The sale of the Company’s corporate headquarters closed on January 31, 2018, pursuant to which the Company received net proceeds of $2,187,317 and recorded a gain on sale of $61,129. Investment in Investee Company Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the investee company. Under the equity method of accounting, an investee company’s accounts are not reported in the Company’s condensed consolidated balance sheets and statements of operations; however, the Company’s share of the earnings or losses of the investee company is reflected in the caption ‘‘Equity in loss of investee company” in the condensed consolidated statements of operations. The Company’s carrying value in an equity method investee company is reported in the caption ‘‘Investment in investee company’’ in the Company’s condensed consolidated balance sheets. When the Company’s carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company’s condensed consolidated financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals or exceeds the amount of its share of losses not previously recognized. Goodwill Goodwill is recognized as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. Goodwill is not amortized but reviewed for impairment annually as of June 30 or more frequently if events or changes in circumstances indicate that its carrying value may be impaired. These conditions could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Company has one reporting unit. The first step of the impairment test requires comparing a reporting unit’s fair value to its carrying value. If the carrying value is less than the fair value, no impairment exists and the second step is not performed. If the carrying value is higher than the fair value, there is an indication that impairment may exist and the second step must be performed to compute the amount of the impairment. In the second step, the impairment is computed by estimating the fair values of all recognized and unrecognized assets and liabilities of the reporting unit and comparing the implied fair value of reporting unit goodwill with the carrying amount of that unit’s goodwill. The Company determined fair value as evidenced by market capitalization, and concluded that there was no need for an impairment charge as of September 30, 2018 and June 30, 2018. Warranty Obligations The Company typically warrants its products for the shorter of twelve months after installation or eighteen months after date of shipment. Warranty costs are provided for estimated claims and charged to cost of sales as revenue is recognized. Warranty obligations are also evaluated quarterly to determine a reasonable estimate for the replacement of potentially defective materials of all energy storage systems that have been shipped to customers within the warranty period. While the Company actively engages in monitoring and improving its technologies, there is only a limited product history and relatively short time frame available to test and evaluate the rate of product failure. Should actual product failure rates differ from the Company’s estimates, revisions are made to the estimated rate of product failures and resulting changes to the liability for warranty obligations. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. The following is a summary of accrued warranty activity: Three months ended September 30, 2018 2017 Beginning balance $ 121,699 $ 239,173 Accruals for warranties - 852 Net settlements (113,825 ) (34,610 ) Adjustments relating to preexisting warranties 93,449 (8,724 ) Ending balance $ 101,323 $ 196,691 The Company offers extended warranty contracts to its customers. These contracts typically cover a period up to twenty years and include advance payments that are recorded initially as long-term deferred revenue. Revenue is recognized in the same manner as the costs incurred to perform under the extended warranty contracts. Costs associated with these extended warranty contracts are expensed to cost of sales as incurred. A summary of changes to long-term deferred revenue for extended warranty contracts is as follows: Three months ended September 30, 2018 2017 Beginning balance $ 544,249 $ 431,700 Deferred revenue for new extended warranty contracts 172,422 - Deferred revenue recognized (938 ) (938 ) Ending balance 715,733 430,762 Less: current portion of deferred revenue for extended warranty contracts 4,374 8,124 Long-term deferred revenue for extended warranty contracts $ 711,359 $ 422,638 Revenue Recognition Revenues are recognized when persuasive evidence of a contractual arrangement exists, delivery has occurred or services have been rendered, the seller’s price to buyer is fixed and determinable and collectability is reasonably assured. The portion of revenue related to installation and final acceptance, is deferred until such installation and final customer acceptance are completed. From time to time, the Company may enter into separate agreements at or near the same time with the same customer. The Company evaluates such agreements to determine whether they should be accounted for individually as distinct arrangements or whether the separate agreements are, in substance, a single multiple element arrangement. The Company evaluates whether the negotiations are conducted jointly as part of a single negotiation, whether the deliverables are interrelated or interdependent, whether the fees in one arrangement are tied to performance in another arrangement, and whether elements in one arrangement are essential to another arrangement. The Company’s evaluation involves significant judgment to determine whether a group of agreements might be so closely related that they are, in effect, part of a single arrangement. For arrangements containing multiple elements, revenue from time and materials based service arrangements is recognized as the service is performed. Revenue relating to undelivered elements is deferred at the estimated fair value until delivery of the deferred elements. If the arrangement does not meet all criteria above, the entire amount of the transaction is deferred until all elements are delivered. For PPA projects with an identified buyer, the Company recognizes revenue for the sales of PPA projects using the percentage of completion method for recording revenues on long term contracts under FASB ASC Topic 606 – Revenue from Contracts with Customers, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term. The Company charges shipping and handling fees when products are shipped or delivered to a customer, and includes such amounts in product revenues and shipping costs in cost of product sales. The Company reports its revenues net of estimated returns and allowances. Revenues for the three months ended September 30, 2018 were comprised of four significant customers ( 87 90 The Company had two significant customers with an outstanding receivable balance of $173,849 ( 81 Advanced Engineering and Development Expenses In accordance with FASB ASC Topic 730 – Research and Development, the Company expenses advanced engineering and development costs as incurred. These costs consist primarily of materials, labor and allocable indirect costs incurred to design, build and test prototype units, as well as the development of manufacturing processes for these units. Advanced engineering and development costs also include consulting fees and other costs. To the extent these costs are separately identifiable, incurred and funded by advanced engineering and development type agreements with outside parties, they are shown separately on the condensed consolidated statements of operations as a “Cost of engineering and development.” Stock-Based Compensation The Company measures all “Share-Based Payments," including grants of stock options, restricted shares and restricted stock units (“RSUs”) in its condensed consolidated statements of operations based on their fair values on the grant date, which is consistent with FASB ASC Topic 718 – Stock Compensation guidelines. Accordingly, the Company measures share-based compensation cost for all share-based awards at the fair value on the grant date and recognizes share-based compensation over the service period for awards that are expected to vest, net of estimated forfeitures. The fair value of stock options is determined based on the number of shares granted and the price of the shares at grant, and calculated based on the Black-Scholes valuation model. The Company compensates its outside directors with RSUs and cash. The grant date fair value of the RSU awards is determined using the closing stock price of the Company’s common stock (the “Common Stock”) on the day prior to the date of the grant, with the compensation expense amortized over the vesting period of RSU awards, net of estimated forfeitures. The Company only recognizes expense for those options or shares that are expected ultimately to vest, using two attribution methods to record expense, the straight-line method for grants with only service-based vesting or the graded-vesting method, which considers each performance period, for all other awards. Income Taxes The Company records deferred income taxes in accordance with FASB ASC Topic 740 – Accounting for Income Taxes. FASB ASC Topic 740 requires recognition of deferred income tax assets and liabilities for temporary differences between the tax basis of assets and liabilities and the amounts at which they are carried in the consolidated financial statements, based upon the enacted tax rates in effect for the year in which the differences are expected to reverse. In addition, a valuation allowance is recognized if it is more likely than not that some or all of the deferred income tax assets will not be realized in the foreseeable future. Deferred income tax assets are reviewed for recoverability based on historical taxable income, the expected reversals of existing temporary differences, tax planning strategies and projections of future taxable income. As a result of this analysis, the Company has provided for a full valuation allowance against its net deferred income tax assets as of September 30, 2018 and June 30, 2018. The Company applies a more-likely-than-not recognition threshold for all tax uncertainties as required under FASB ASC Topic 740, which only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. The Company’s U.S. federal income tax returns for the years ended June 30, 2014 through June 30, 2017 and the Company’s Wisconsin income tax returns for the years ended June 30, 2013 through June 30, 2017 are subject to examination by taxing authorities. As of September 30, 2018, there were no examinations in progress. Foreign Currency The Company uses the U.S. dollar as its functional and reporting currency, while the Philippines peso and Hong Kong dollar are the functional currencies of its foreign subsidiaries. Assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates that are in effect at the balance sheet date while equity accounts are translated at historical exchange rates. Income and expense items are translated at average exchange rates which were applicable during the reporting period. Translation adjustments are recorded in accumulated other comprehensive loss as a separate component of equity in the condensed consolidated balance sheets. Loss per Share The Company follows the FASB ASC Topic 260 – Earnings per Share provisions which require the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (net loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with the FASB ASC Topic 260, any anti-dilutive effects on net income (loss) per share are excluded. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, accounts receivable and costs and estimated earnings in excess of billings. The Company maintains significant cash deposits primarily with one financial institution. The Company has not previously experienced any material losses on such deposits. Additionally, the Company performs periodic evaluations of the relative credit rating of the institution as part of its banking strategy. Concentrations of credit risk with respect to accounts receivable and costs and estimated earnings in excess of billings are limited due to accelerated payment terms in current customer contracts and creditworthiness of the current customer base. Segment Information The Company has determined that it operates as one reportable segment. Reclassifications Certain amounts previously reported have been reclassified to conform to the current presentation. The reclassifications did not impact prior period results of operations, cash flows, total assets, total liabilities, or total equity. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective and not included below will not have a material impact on the Company’s financial position or results of operations upon adoption. In August 2018, the FASB issued Accounting Standard Update (“ASU”) 2018-13 – Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement: This amendment modifies the disclosure requirements used in the fair value measurement of financial instruments in assets and liabilities held as of the balance sheet date which are categorized within Level 3 of the fair value hierarchy. ASU 2018-13 also imposes additional disclosure requirement relating to changes in unrealized gain and losses as a result of level input transfer. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. The Company does not expect adoption of this guidance to have a significant impact on its condensed consolidated financial statements. In July 2018, the FASB issued ASU 2018-10 – Codification improvements to Topic 842, Leases. The amendment in ASU 2018-10 replace existing lease guidance under ASU 2016-02 – Leases (Topic 842), which the Company early adopted effective January 1, 2016. ASU 2018-10 is effective on issuance for early adopters of ASU 2016-02. The Company was required to adopt this standard beginning July 1, 2018. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 – Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Under the new guidance, entities will have the option to reclassify tax effects within other comprehensive income (referred to as stranded tax effects) to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) is recorded. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods. The Company does not expect adoption of this guidance to have a significant impact on its condensed consolidated financial statements. In May 2017, the FASB issued ASU 2017-09 – Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective prospectively for all companies for annual periods beginning on or after December 15, 2017, including interim periods within those annual periods. The Company was required to adopt this standard beginning July 1, 2018. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 – Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test, under which in computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under the amendments in ASU 2017-04, the annual or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The guidance is effective prospectively for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect adoption of this guidance to have a significant impact on its condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15 – Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The amendments in ASU 2016-15 addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The Company was required to adopt this standard beginning July 1, 2018. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In May 2016, the FASB issued ASU 2016-11 – Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update). ASU 2016-11 rescinds the certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities – Oil and Gas, effective upon the adoption of Topic 606. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: (a) Revenue and Expense Recognition for Freight Services in Process, (b) Accounting for Shipping and Handling Fees and Costs, (c) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor’s Products), (d) Accounting for Gas-Balancing Arrangements (that is, use of the “entitlements method”). In addition, as a result of the amendments in Update 2014-16, the SEC staff is rescinding its SEC Staff Announcement, “Determining the Nature of a Host Contract Related to a Hybrid Instrument Issued in the Form of a Share under Topic 815,” effective concurrently with ASU 2014-16. The effective dates in ASU 2016-11 coincide with the effective dates of Topic 606 (ASU 2014-09) and ASU 2014-16. The Company previously reviewed ASU 2014-16 and determined that it is not applicable. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606). The amendment outlines a singl

MANAGEMENT'S PLANS AND FUTURE O

MANAGEMENT'S PLANS AND FUTURE OPERATIONS	3 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
MANAGEMENT'S PLANS AND FUTURE OPERATIONS	NOTE 2 - MANAGEMENT'S PLANS AND FUTURE OPERATIONS The accompanying condensed consolidated financial statements have been prepared on the basis of a going concern which contemplates that the Company will be able to realize assets and discharge its liabilities in the normal course of business. Accordingly, they do not give effect to any adjustments that would be necessary should the Company be required to liquidate its assets. The Company incurred a net loss of $2,771,694 attributable to EnSync, Inc. for the three months ended September 30, 2018, and as of September 30, 2018 has an accumulated deficit of $140,381,353 and total equity of $5,944,976. The ability of the Company to settle its total liabilities of $4,236,824 and to continue as a going concern is dependent upon raising additional investment capital to fund the Company’s business plan, increasing revenues and achieving profitability. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. The Company believes that cash and cash equivalents on hand at September 30, 2018, and other potential sources of cash, including net cash it generates from closing projects in backlog and pipeline, and potential financing options, will be sufficient to fund the Company’s current operations through the second quarter of fiscal 2020. While the Company believes its pipeline of projects is deep, there can be no assurances that projects will close in a timely manner to meet the Company’s cash requirements. The Company is also working to improve operations and enhance cash balances by continuing to drive cost improvements and reducing its spend on research and development. Also, the Company is currently exploring potential financing options that may be available to the Company, including strategic partnership transactions, PPA project financing facilities, working capital lines of credit, and additional sales of Common Stock or other debt or equity securities. However, the Company has no commitments to obtain any additional funds, and there can be no assurance such funds will be available on acceptable terms or at all. If the Company is unable to increase revenues and achieve profitability in a timely fashion or obtain additional required funding, the Company’s financial condition and results of operations may be materially adversely affected and the Company may not be able to continue operations, execute its growth plan, take advantage of future opportunities or respond to customers and competition.

CHINA JOINT VENTURE

CHINA JOINT VENTURE	3 Months Ended
	Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
CHINA JOINT VENTURE	NOTE 3 - CHINA JOINT VENTURE On August 30, 2011, the Company entered into agreements providing for the establishment of a joint venture to develop, produce, sell, distribute and service advanced storage batteries and power electronics in China (the “China Joint Venture”). The China Joint Venture was established upon receipt of certain governmental approvals from China which were received in November 2011. China Joint Venture partners include the Company’s sixty percent owned subsidiary, ZBB PowerSav Holdings Limited (“Holdco”), AnHui XinLong Electrical Co., Wuhu Huarui Power Transmission and Transformation Engineering Co. and Wuhu Fuhai-Haoyan Venture Investment, L.P., a branch of Shenzhen Oriental Fortune Capital Co., Ltd. The China Joint Venture operates through a jointly-owned Chinese company located in Wuhu City, Anhui Province named Anhui Meineng Store Energy Co., Ltd. (“Meineng Energy”). Meineng Energy manufactures certain products for the Company pursuant to a supply agreement under which the Company pays Meineng Energy 120% of its direct costs incurred in manufacturing such products. In addition, pursuant to a License Agreement (as amended on July 1, 2014) between Holdco and Meineng Energy, Meineng Energy assembles and manufactures certain of the Company’s products for sale in the power management industry on an exclusive, royalty-free basis in mainland China and on a non-exclusive, royalty-free basis in Hong Kong and Taiwan. Pursuant to a Research and Development Agreement with Meineng Energy, Meineng Energy may request the Company to provide research and development services upon commercially reasonable terms and conditions. Meineng Energy would pay the Company’s fully-loaded costs and expenses incurred in providing such services. The Company has the right to appoint a majority of the members of the Board of Directors of Holdco and Holdco has the right to appoint a majority of the members of the Board of Directors of Meineng Energy. Pursuant to a Joint Venture Agreement between Holdco and Anhui Xinrui Investment Co., Ltd, a Chinese limited liability company, and subsequent investment agreements, Meineng Energy has been capitalized with approximately $14.8 million of equity capital as of September 30, 2018 and June 30, 2018. The Company’s investment in Meineng Energy was made through Holdco. Pursuant to a Limited Liability Company Agreement of Holdco between ZBB Cayman Corporation, the Company’s wholly-owned subsidiary, and PowerSav New Energy Holdings Limited (“PowerSav”), the Company contributed technology to Holdco via a license agreement with an agreed upon value of approximately $4.1 million and $200,000 in cash in exchange for a 60% equity interest. The Company’s basis in the technology contributed to Holdco was $0 due to US GAAP requirements related to research and development expenditures. The difference between the Company’s basis in this technology and the valuation of the technology by Meineng Energy of approximately $4.1 million is accounted for by the Company through the elimination of the amortization expense recognized by Meineng Energy related to the technology. PowerSav agreed to contribute to Holdco $3.3 million in cash in exchange for a 40% equity interest. For financial reporting purposes, Holdco’s assets and liabilities are consolidated with those of the Company and PowerSav’s 40% interest in Holdco is included in the Company’s condensed consolidated financial statements as a noncontrolling interest. As of September 30, 2018 and June 30, 2018, the Company’s indirect investment in Meineng Energy, after accounting for the Company’s share of the earnings or losses, was $870,001 and $831,433, respectively. As of September 30, 2018 and June 30, 2018, the Company’s indirect investment percentage in Meineng Energy equals approximately 30 The Company’s President and Chief Executive Officer (“President and CEO”) has served as the Chief Executive Officer of Meineng Energy since December 2011. The President and CEO owns an indirect 6% equity interest in Meineng Energy. Pursuant to a Management Services Agreement between Holdco and Meineng Energy (the “Management Services Agreement”), Holdco will provide certain management services to Meineng Energy in exchange for a management services fee equal to five percent of Meineng Energy’s net sales for the five year period beginning on the first day of the first quarter in which the Meineng Energy achieves operational breakeven results, and three percent of Meineng Energy’s net sales for the subsequent three years, provided the payment of such fees will terminate upon Meineng Energy completing an initial public offering on a nationally recognized securities exchange. To date, no management service fee revenues have been recognized by Holdco under the Management Services Agreement. Activity with Meineng Energy is summarized as follows: Three months ended September 30, 2018 2017 Product sales to Meineng Energy $ - $ 13,008 Cost of product sales to Meineng Energy - 11,211 Product purchases from Meineng Energy 54,561 12,900 The total amount due to Meineng Energy is as follows: September 30, 2018 June 30, 2018 Net amount due to Meineng Energy $ (19,527 ) $ (33,822 ) The operating results for Meineng Energy are summarized as follows: Three months ended September 30, 2018 2017 Revenues $ 3,170 $ 4,646 Gross loss (1,116 ) (1,086 ) Loss from operations (277,767 ) (373,926 ) Net loss (273,663 ) (346,905 )

INVENTORIES

INVENTORIES	3 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 4 - INVENTORIES Net inventories are comprised of the following as of: September 30, 2018 June 30, 2018 Raw materials and subassemblies $ 1,904,486 $ 1,587,454 Less: inventory reserve (417,009 ) (367,006 ) Total $ 1,487,477 $ 1,220,448

PROPERTY & EQUIPMENT

PROPERTY & EQUIPMENT	3 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
PROPERTY & EQUIPMENT	NOTE 5 - PROPERTY & EQUIPMENT Property and equipment are comprised of the following: September 30, 2018 June 30, 2018 Leasehold improvements $ 44,975 $ 44,975 Manufacturing equipment 2,977,107 2,977,579 Office equipment 470,730 470,731 Construction in process 303,604 227,702 Total, at cost 3,796,416 3,720,987 Less: accumulated depreciation (2,983,530 ) (2,945,442 ) Property and equipment, net $ 812,886 $ 775,545 The Company recorded depreciation expense of $38,344 and $97,392 for the three months ended September 30, 2018 and September 30, 2017, respectively. See Impairment of Long-Lived Assets under Note 1 of the Notes to Condensed Consolidated Financial Statements for a discussion of the impairment charge related to the sale of the Company’s corporate headquarters.

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Sep. 30, 2018
Payables and Accruals [Abstract]
ACCRUED EXPENSES	NOTE 6 - ACCRUED EXPENSES Accrued expenses are comprised of the following as of: September 30, 2018 June 30, 2018 Accrued compensation and benefits $ 350,305 $ 441,222 Accrued warranty 101,323 121,699 Right of use liability-operating leases 164,597 197,616 Customer deposits 63,386 104,724 Other 348,091 371,419 Total $ 1,027,702 $ 1,236,680

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
LONG-TERM DEBT	NOTE 7 - LONG-TERM DEBT During the year ended June 30, 2016, the Company entered into a sales-leaseback transaction with a non-related party, the net consideration received was $331,827 with interest payable in quarterly installments ranging between $1,510 and $2,555 at an imputed interest rate of approximately 2.44% over 20 years ending March 31, 2036.

EMPLOYEE AND DIRECTOR EQUITY IN

EMPLOYEE AND DIRECTOR EQUITY INCENTIVE PLANS	3 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EMPLOYEE AND DIRECTOR EQUITY INCENTIVE PLANS	NOTE 8 - EMPLOYEE AND DIRECTOR EQUITY INCENTIVE PLANS The Company previously adopted the 2007 Equity Incentive Plan (“2007 Plan”) that authorized the board of directors or a committee to grant up to 300,000 shares to employees and directors of the Company. Unless defined in an employment agreement or otherwise determined, the stock options vest ratably over a three-year period. Stock options expire 10 years after the date of grant. No shares are available to be issued for future awards under the 2007 Plan. In November 2010, the Company adopted the 2010 Omnibus Long-Term Incentive Plan (“2010 Omnibus Plan”), which authorizes a committee of the board of directors to grant stock options, stock appreciation rights, restricted stock, RSUs, unrestricted stock, other stock-based awards and cash awards. The 2010 Omnibus Plan, as amended, authorizes up to 13,950,000 shares plus shares of Common Stock underlying any outstanding stock option of other awards granted by any predecessor employee stock plan of the Company that is forfeited, terminated, or cancelled without issuance of shares, to employees, officers, non-employee members of the board of directors, consultants and advisors. Unless otherwise determined, options vest ratably over a three-year period and expire eight years after the date of grant. At the annual meeting of shareholders held on December 19, 2017, the Company’s shareholders approved an amendment of the 2010 Omnibus Plan which increased the number of shares of the Company’s Common Stock available for issuance pursuant to awards under the 2010 Omnibus Plan by 2,000,000 to 13,950,000. In November 2012, the Company adopted the 2012 Non-Employee Director Equity Compensation Plan, as amended (“2012 Director Equity Plan”), under which the Company may issue up to 4,400,000 RSUs and other equity awards to our non-employee directors pursuant to the Company’s director compensation policy. At the annual meeting of shareholders held on November 14, 2016, the Company’s shareholders approved an amendment of the 2012 Director Equity Plan which increased the number of shares of the Company’s Common Stock available for issuance pursuant to awards under the 2012 Director Equity Plan by 1,200,000 to 4,400,000. As of September 30, 2018, there were a total of 1,350,217 shares available to be issued for future awards under the 2010 Omnibus Plan and 298,375 shares available to be issued for future awards under the 2012 Director Equity Plan. Stock Options The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing method. The Company uses historical data to estimate the expected price volatility, the expected option life and the expected forfeiture rate. The Company has not made any dividend payments nor does it have plans to pay dividends in the foreseeable future. The following assumptions were used to estimate the fair value of stock options granted during the three months ended September 30, 2018 and September 30, 2017 using the Black-Scholes option-pricing model: Three months ended September 30, 2018 2017 Expected life of option (years) N/A 4 Risk-free interest rate N/A 1.66 - 1.69% Assumed volatility N/A 113.62 - 113.75% Expected dividend rate N/A 0.00% Expected forfeiture rate N/A 6.15 - 6.72% Time-vested and performance-based stock options are accounted for at fair value at date of grant. Total fair values of stock options granted for the three months ended September 30, 2018 and September 30, 2017 were $0 and $9,319 respectively. Compensation expense is recognized over the requisite service and performance periods. The amounts recognized in the condensed consolidated financial statements related to stock options were $11,300 and $188,439, based on the amortized grant date fair value of stock options granted under its various equity incentive plans, during the three months ended September 30, 2018 and September 30, 2017, respectively. At September 30, 2018, there was $314,235 in unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of 1.3 years. Information with respect to stock option activity is as follows: Number of Options Weighted Average Exercise Price Average Remaining Contractual Life (in years) Balance at June 30, 2017 8,249,298 $ 0.71 6.50 Options granted 1,407,000 0.40 Options forfeited (2,781,483 ) 0.71 Balance at June 30, 2018 6,874,815 0.65 5.87 Options forfeited (677,217 ) 0.54 Balance at September 30, 2018 6,197,598 0.66 5.66 The following table summarizes information relating to the stock options outstanding as of September 30, 2018: Outstanding Exercisable Range of Exercise Prices Number of Options Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number of Options Average Remaining Contractual Life (in years) Weighted Average Exercise Price $0.28 to $0.50 3,313,815 6.08 $ 0.39 1,596,616 5.32 $ 0.40 $0.51 to $1.00 2,222,983 5.64 0.68 1,437,584 5.26 0.71 $1.01 to $1.50 170,000 5.41 1.02 130,000 5.23 1.02 $1.51 to $2.00 400,950 3.51 1.73 400,950 3.51 1.73 $2.01 to $5.80 89,850 1.06 4.90 89,850 1.06 4.90 Balance at September 30, 2018 6,197,598 5.66 0.66 3,655,000 4.99 0.80 During the three months ended September 30, 2017, stock options to purchase 27,000 shares were granted to employees exercisable at $0.39 to $0.48 per share based on various service-based vesting terms from July 2017 through September 2020 and exercisable at various dates through September 2025. There is no aggregate intrinsic value of outstanding stock options based on the Company’s adjusted closing stock price of $0.26 as of September 30, 2018. Information with respect to unvested employee stock option activity is as follows: Number of Options Weighted Average Grant Date Fair Value Per Share Average Remaining Contractual Life (in years) Balance at June 30, 2017 5,197,098 $ 0.54 6.93 Options granted 1,407,000 0.40 Options vested (1,581,266 ) 0.56 Options forfeited (1,840,499 ) 0.48 Balance at June 30, 2018 3,182,333 0.51 6.57 Options vested (362,835 ) 0.71 Options forfeited (276,900 ) 0.65 Balance at September 30, 2018 2,542,598 0.47 6.63 RSUs The Company compensates its directors with time-vested RSUs and cash. On September 24, 2018 and June 26, 2018, 148,276 and 119,444 RSUs were granted under the 2012 Director Equity Plan to the Company’s directors in lieu of cash based director’s fee payments of $43,000 for services rendered during each of the first quarter of fiscal 2019 and fourth quarter of fiscal 2018, respectively. The RSUs vested immediately on the date of grant. On November 14, 2017, 1,163,075 RSUs were granted to the Company’s directors in partial payment of director’s fees through November 2018 under the 2012 Director Equity Plan. As of September 30, 2018, all of the RSUs from the November 14, 2017 grant had vested. On November 14, 2016, 581,816 RSUs were granted to the Company’s directors in partial payment of director’s fees through November 2017 under the 2012 Director Equity Plan. As of September 30, 2017, 563,635 of the RSUs from the November 14, 2016 grant had vested and 18,181 had forfeited. The Company also compensates its key employees with time-vested and performance-based RSUs. No RSUs were granted to the Company’s employees under the 2010 Omnibus Plan and inducement awards during the three months ended September 30, 2018 and September 30, 2017. Time-vested and performance-based RSUs are accounted for at fair value at date of grant. Total fair value of RSUs granted for the three months ended September 30, 2018 and September 30, 2017 was $43,000 and $0, respectively. Compensation expense is recognized over the requisite service and performance periods. The amount recognized in the condensed consolidated financial statements related to RSUs was $303,342 and $247,169, based on the amortized grant date fair value of RSUs granted under its various equity incentive plans, during the three months ended September 30, 2018 and September 30, 2017, respectively. As of September 30, 2018, there were 3,855,000 of unvested RSUs and $1,487,901 in unrecognized compensation cost. Generally, shares of Common Stock related to vested RSUs are to be issued six months after the holder’s separation from service with the Company. Information with respect to RSU activity is as follows: Number of Restricted Stock Units Weighted Average Valuation Price Per Unit Balance at June 30, 2017 5,556,332 $ 1.07 RSUs granted 4,342,519 0.41 RSUs forfeited (1,147,231 ) 0.75 Shares issued (1,041,152 ) 1.42 Balance at June 30, 2018 7,710,468 0.70 RSUs granted 148,276 0.29 Shares issued (70,654 ) 0.40 Balance at September 30, 2018 7,788,090 0.69

WARRANTS

WARRANTS	3 Months Ended
	Sep. 30, 2018
Stockholders' Equity Note [Abstract]
WARRANTS	NOTE 9 - WARRANTS On August 7, 2017, 220,000 warrants were issued in connection with a professional services agreement. The warrants are exercisable at $0.40 per share and vest upon the satisfaction of certain performance targets prior to March 31, 2018. As of March 31, 2018, 40,000 warrants vested and expire in March 2021, and the remaining 180,000 warrants did not vest as the result of not achieving certain performance targets, and therefore expired in March 2018. On June 22, 2017, 357,500 warrants were issued in connection with the Underwriting Agreement entered into with Roth Capital Partners, LLC as part of underwriting compensation which provided for the sale of $2.5 million of Common Stock on June 22, 2017. The warrants are exercisable at $0.42 per share and expire in June 2022. Information with respect to warrant activity is as follows: Number of Warrants Weighted Average Exercise Price Per Share Balance at June 30, 2017 357,500 $ 0.42 Warrants granted 220,000 0.40 Warrants expired (180,000 ) 0.40 Balance at June 30, 2018 and September 30, 2018 397,500 0.42

BASIC AND DILUTED NET LOSS PER

BASIC AND DILUTED NET LOSS PER SHARE	3 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
BASIC AND DILUTED NET LOSS PER SHARE	NOTE 10 - BASIC AND DILUTED NET LOSS PER SHARE Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period reported. Diluted net loss per common share is computed giving effect to all dilutive potential common shares that were outstanding for the period reported. Diluted potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of preferred stock and RSUs. In computing diluted net loss per share for the three months ended September 30, 2018 and September 30, 2017, no adjustment has been made to the weighted average outstanding common shares as the assumed exercise of outstanding stock options, RSUs and warrants and conversion of preferred stock is anti-dilutive. Potential common shares not included in calculating diluted net loss per share are as follows: September 30, 2018 September 30, 2017 Stock options and RSUs 13,985,688 13,551,752 Stock warrants 397,500 577,500 Series B preferred shares 3,967,176 3,594,065 Total 18,350,364 17,723,317

EQUITY

EQUITY	3 Months Ended
	Sep. 30, 2018
Equity [Abstract]
EQUITY	NOTE 11 - EQUITY Series B Convertible Preferred Stock On September 26, 2013, the Company entered into a Securities Purchase Agreement with certain investors providing for the sale of 3,000 shares of Series B Convertible Preferred Stock (the “Series B Preferred Stock”). Certain Directors of the Company purchased 500 shares. Shares of Series B Preferred Stock have a $1,000 per share stated value (the “Stated Value”) and accrue dividends on the Stated Value at an annual rate of 10%. At September 30, 2018, 2,300 shares of Series B Preferred Stock remain outstanding and were convertible, along with accrued and unpaid dividends, into 3,967,176 shares of Common Stock of the Company at a conversion price equal to $0.95. Upon any liquidation, dissolution or winding up of the Company, holders of the Series B Preferred Stock are entitled to receive out of the assets of the Company an amount equal to two times the Stated Value, plus any accrued and unpaid dividends thereon. At September 30, 2018 and June 30, 2018, the liquidation preference of the Series B Preferred Stock was $6,068,818 and $5,976,896, respectively. Series C Convertible Preferred Stock On July 13, 2015, the Company entered into a Securities Purchase Agreement with SPI Energy Co., LTD. (“SPI”) in connection with entering into a global strategic partnership, which included a Securities Purchase Agreement, a Supply Agreement and a Governance Agreement. Pursuant to the Securities Purchase Agreement, the Company sold to SPI for an aggregate purchase price of $33,390,000 a total of (i) 8,000,000 shares of Common Stock based on a purchase price per share of $0.6678 and (ii) 28,048 shares Series C convertible preferred stock (the “Series C Preferred Stock”) based on a price of $0.6678 per common equivalent. At the closing of the SPI transaction, the Company recognized the fair value of (i) $6,800,000 for the Common Stock (determined by reference to the closing price of the Company’s Common Stock on the NYSE American) as an increase to equity; (ii) $13,300,000 for the Series C Preferred Stock, ignoring the contingent convertibility on the closing date, as an increase to equity; and (iii) $13,290,000 as deferred revenue for the cash received by the Company in excess of the fair value of the Common Stock and the nonconvertible attribute of the Series C Preferred Stock, which was allocated to the Supply Agreement. As the result of SPI’s failure to perform any of its purchase obligations under the Supply Agreement, on May 4, 2017, the Company terminated the Supply Agreement. As a result of the termination of the Supply Agreement, it is no longer possible for SPI to satisfy the conditions that would have enabled it to convert the Series C Preferred Stock into a total of up to 42,000,600 shares of Common Stock or exercise the warrant to purchase 50,000,000 shares of Common Stock issued pursuant to the Securities Purchase Agreement, and for the Company to recognize revenue as sales occurred under the Supply Agreement. Additionally, on May 8, 2018, the Company filed a lawsuit against SPI in the Circuit Court for Waukesha County in the State of Wisconsin seeking a declaratory judgment releasing the Company from its obligations under the Governance Agreement between the Company and SPI dated July 13, 2015 (the “SPI Dispute”). The Company’s complaint in the SPI Dispute asserted, among other things, that the Company should be released from its obligations under the Governance Agreement due to the Doctrine of Frustration of Purpose. As detailed in the complaint, the basis for this claim was that the Company’s principle purpose for entering into the Governance Agreement was as a condition and inducement to SPI to enter into the Supply Agreement between the Company and SPI dated July 13, 2015, and that due to SPI’s failure to perform its obligations under the Supply Agreement, that purpose was frustrated. On June 19, 2018, the Circuit Court for Waukesha County in the State of Wisconsin granted the Company’s motion for a default judgment in the SPI Dispute. Pursuant to this default judgment, the Court ordered that the Governance Agreement was terminated and unenforceable, and the Company was completely and fully released from its obligations, covenants and agreements thereunder. The Series C Preferred Stock are non-voting, are perpetual, are not eligible for dividends, and are not redeemable. While the Series C Preferred Stock is outstanding, the Company may not pay dividends on its Common Stock and may not redeem more than $100,000 in Common Stock per year. Upon any liquidation, dissolution, or winding up of the Company (a “Liquidation”) or a Fundamental Transaction (as defined in the Certificate of Designation for the Series C Preferred Stock), holders of the Series C Preferred Stock are entitled to receive out of the assets of the Company an amount equal to the higher of (1) the stated value, which was $28,048,000 as of September 30, 2018 and (2) the amount payable to the holder if it had converted the shares into Common Stock immediately prior to the Liquidation or Fundamental Transaction, for each share of the Series C Preferred Stock after any distribution or payment to the holders of the Series B Preferred Stock and before any distribution or payment shall be made to the holders of the Company’s existing Common Stock, and if the assets of the Company shall be insufficient to pay in full such amounts, then the entire assets to be distributed shall be ratably distributed in accordance with respective amount that would be payable on such shares if all amounts payable thereon were paid in full. At September 30, 2018 and June 30, 2018, the liquidation preference of the Series C Preferred Stock was $0. Common Stock September 5, 2018 Registered Direct Offering On September 5, 2018, the Company completed a registered direct offering, pursuant to a Registration Statement on Form S-3, of 11,334,616 shares of Common Stock at a price of $0.26 per share for net proceeds of $2,701,569, after deducting customary expenses.

COMMITMENTS

COMMITMENTS	3 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	NOTE 12 - COMMITMENTS Leasing Activities Operating Leases Operating lease expense recognized during the three months ended September 30, 2018 and September 30, 2017 was $52,670 and $21,264, respectively. Operating lease expense is included in operating expenses in the condensed consolidated statements of operations. In December 2017, the Company entered into a seven-year office lease agreement to replace the Company’s former headquarters, which was sold on January 31, 2018. Monthly rent for the first twelve months of the lease is $13,845 and increases by approximately 1.5% for each succeeding 12-month period. Refer to Note 1 of the Notes to Condensed Consolidated Financial Statements for further detail related to the sale of the Company’s headquarters. As of September 30, 2018, and June 30, 2018, the carrying value of the right of use asset was $1,011,620 and $1,087,249, respectively, and is separately stated on the condensed consolidated balance sheets. The related short-term and long-term liabilities as of September 30, 2018 were $164,597 and $847,023 and as of June 30, 2018 were $197,616 and $889,633, respectively. The short-term and long-term liabilities are included in “Accrued expenses” and “Other long-term liabilities,” respectively, in the condensed consolidated balance sheets. Information regarding the weighted-average remaining lease term and the weighted-average discount rate for operating leases are summarized below: September 30, 2018 June 30, 2018 Weighted-average remaining lease term (in years) 6.01 6.05 Weighted-average discount rate 5.0 % 5.0 % The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the condensed consolidated balance sheet as of September 30, 2018: 2019 $ 157,677 2020 210,260 2021 172,317 2022 174,873 2023 177,429 Thereafter 285,846 Total undiscounted lease payments 1,178,402 Present value adjustment (166,782 ) Net operating lease liabilities $ 1,011,620 Short-term Leases The Company leases facilities in Honolulu, Hawaii, Milwaukee and Madison, Wisconsin, Petaluma, California and Shanghai, China from unrelated parties under lease terms that will expire over the next twelve months. Monthly rent for the twelve-month rental periods is between $400 and $3,150 per month. Rent expense of $23,864 and $8,922 was recognized during the three months ended September 30, 2018 and September 30, 2017, respectively. Short-term rent expense is included in operating expenses in the condensed consolidated statements of operations.

RETIREMENT PLANS

RETIREMENT PLANS	3 Months Ended
	Sep. 30, 2018
Retirement Benefits [Abstract]
RETIREMENT PLANS	NOTE 13 – RETIREMENT PLANS The Company sponsors a defined contribution retirement plan under Section 401(k) of the Internal Revenue Code, the EnSync, Inc. 401(k) Savings Plan. Employees may elect to contribute up to the Internal Revenue Service annual contribution limit. The Company matches employees’ contributions up to 4% of eligible compensation and Company contributions are limited in any year to the amount allowable by government tax authorities. Eligible employees are 100% immediately vested. Total employer contributions recognized in the condensed consolidated statements of operations under this plan were $49,589 and $51,753 for the three months ended September 30, 2018 and September 30, 2017, respectively.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 14 – INCOME TAXES The Company had no current or deferred provision (benefit) for income taxes for the three months ended September 30, 2018 and September 30, 2017. The income tax provision for the three months ended September 30, 2018 and September 30, 2017 was determined by applying an estimated annual effective tax rate of 0.0% to the loss before income taxes. The estimated effective income tax rate was determined by applying statutory tax rates to pretax loss adjusted for certain permanent book to tax differences and tax credits, and the continuing assessment of a valuation allowance against all of the deferred income tax assets that will not be realized in the foreseeable future. Deferred income tax assets are reviewed for recoverability based on historical taxable income, the expected reversals of existing temporary differences, tax planning strategies and projections of future taxable income. As a result of this analysis, the Company has provided for a valuation allowance against all of its net deferred income tax assets as of September 30, 2018 and June 30, 2018. On December 22, 2017, the President of the U.S. signed the Tax Act into law. The Tax Act includes several changes to existing tax law, including a permanent reduction in the U.S. federal statutory tax rate from 35% to 21%, further limitations on the deductibility of interest expense and certain executive compensation, repeal of the corporate Alternative Minimum Tax and imposition of a territorial tax system. While some of the new provisions of the Tax Act will impact the Company in fiscal 2019 and beyond, the change in the U.S. federal statutory tax rate was effective January 1, 2018. During the second quarter of fiscal 2018, the Company was required to revalue its U.S. federal deferred tax assets and liabilities at the new U.S. federal statutory tax rate in the period of enactment, and as the Company has provided for a full valuation allowance against all of its net deferred income taxes, the revaluation resulted in no charge to income tax expense.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Description of Business	Description of Business EnSync, Inc. and its subsidiaries (“EnSync Energy,” “EnSync”, “we,” “us,” “our,” or the “Company”) is a renewable energy systems and services company whose innovative and differentiated technologies and capabilities are designed to deliver the least expensive, highest value and most reliable electricity. With the Company’s May 2018 announcement of the EnSync Home Energy System, the Company now serves all three major markets in the renewable energy space: Residential Energy Systems, Commercial Energy Systems and Independent Utility Energy Systems. The Company’s systems utilize highly configurable modules that, together with the Auto-Sync DC Bus and DER Flex TM Incorporated in 1998, the Company is headquartered in Menomonee Falls, Wisconsin, USA, with offices in Madison, Wisconsin, Petaluma, California, Honolulu, Hawaii and Shanghai, China.
Interim Financial Data	Interim Financial Data The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial data and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for fair presentation of the results of operations have been included. Operating results for the three months ended September 30, 2018 are not necessarily indicative of the results that might be expected for the year ending June 30, 2019. The condensed consolidated balance sheet at June 30, 2018 has been derived from audited financial statements at that date, but does not include all of the information and disclosures required by US GAAP. For a more complete discussion of accounting policies and certain other information, refer to the Company’s Annual Report filed on Form 10-K for the fiscal year ended June 30, 2018 filed with the Securities and Exchange Commission (“SEC”) on September 25, 2018.
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly and majority-owned subsidiaries and have been prepared in accordance with US GAAP and are reported in U.S. dollars. For subsidiaries in which the Company’s ownership interest is less than 100%, the noncontrolling interests are reported in stockholders’ equity in the condensed consolidated balance sheets. The noncontrolling interests in net income (loss), net of tax, are classified separately in the condensed consolidated statements of operations. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company’s fiscal year end is June 30.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. It is reasonably possible that the estimates we have made may change in the near future. Significant estimates underlying the accompanying condensed consolidated financial statements include those related to:  going concern assessment;  the timing of revenue recognition;  the allowance for doubtful accounts;  provisions for excess and obsolete inventory;  the lives and recoverability of property, plant and equipment and other long-lived assets, including the testing for impairment;  testing of goodwill for impairment;  contract costs, losses and reserves;  warranty obligations;  income tax valuation allowances;  discount rates for finance and operating lease liabilities;  stock-based compensation; and  valuation of equity instruments and warrants.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, a note receivable, accounts payable, bank loans, notes payable, equipment financing, equity instruments and warrants. The carrying amounts of the Company’s financial instruments approximate their respective fair values due to the relatively short-term nature of these instruments, except for the bank loans, notes payable, equipment financing, equity instruments and warrants. The carrying amounts of the bank loans and notes payable approximate fair value due to the interest rate and terms approximating those available to the Company for similar obligations. The interest rate on the equipment financing obligation was imputed based on the requirements described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 842-40-30-6. The Company accounts for the fair value of financial instruments in accordance with FASB ASC Topic 820 – Fair Value Measurements and Disclosures. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment utilized in measuring the fair value of assets and liabilities generally correlate to the level or pricing observability. FASB ASC Topic 820 describes a fair value hierarchy based on the following three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, for similar assets or liabilities in active markets. Level 3 inputs are unobservable inputs for the asset or liability. As such, the prices or valuation techniques require inputs that are both significant to the fair value measurement and are unobservable.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less to be cash equivalents. The Company maintains its cash deposits at financial institutions predominately in the U.S., Philippines, Hong Kong and China. The Company has not experienced any material losses in such accounts.
Accounts Receivable	Accounts Receivable Credit is extended based on an evaluation of a customer’s financial condition. Accounts receivable are stated at the amount the Company expects to collect from outstanding balances. The Company records allowances for doubtful accounts based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. The Company writes off accounts receivable against the allowance when they become uncollectible.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value, defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The Company provides inventory write-downs on excess and obsolete inventories based on historical usage. The write-down is measured as the difference between the cost of the inventory and net realizable value based upon assumptions about usage and charged to the provision for inventory, which is a component of cost of sales.
Costs and Estimated Earnings in Excess of Billings/Billings in Excess of Costs and Estimated Earnings	Costs and Estimated Earnings in Excess of Billings/Billings in Excess of Costs and Estimated Earnings Costs and estimated earnings in excess of billings represent amounts earned and reimbursable under contracts accounted for under the percentage of completion method. The timing of when the Company bills its customers is generally dependent upon advance billing terms, milestone billings based on the completion of certain phases of the work, or when services are provided. Based on the Company’s historical experience, the Company generally considers the collection risk related to these amounts to be low. When events or conditions indicate that the amounts outstanding may become uncollectible, an allowance is estimated and recorded. The Company anticipates that substantially all of such amounts will be billed and collected over the next twelve months. Billings in excess of costs and estimated earnings represents amounts billed to customers in advance of being earned under contracts accounted for under the percentage of completion method. The Company anticipates that substantially all such amounts will be earned over the next twelve months.
Property, Plant and Equipment	Property, Plant and Equipment Land, building, equipment, computers, furniture and fixtures are recorded at cost. Maintenance, repairs and betterments are charged to expense as incurred. Depreciation is provided for all plant and equipment on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives used for each class of depreciable asset are: Estimated Useful Lives Manufacturing equipment 3 - 7 years Office equipment 3 - 7 years Building and improvements 7 - 40 years The Company completed a review of the estimated useful lives of specific assets for the three months ended September 30, 2018 and determined that there were no changes in the estimated useful lives of assets.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets In accordance with FASB ASC Topic 360 – Impairment or Disposal of Long-Lived Assets, the Company assesses potential impairments to its long-lived assets including property, plant and equipment and intangible assets when there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable. If such an indication exists, the recoverable amount of the asset is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed in the condensed consolidated statements of operations. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate. On October 12, 2017, the Company accepted an offer to sell its corporate headquarters for $2,340,000, less commissions and other customary closing costs. As a result, the Company recorded an impairment charge of $447,000 on the building and land in its condensed consolidated statements of operations during the three months ended September 30, 2017. The sale of the Company’s corporate headquarters closed on January 31, 2018, pursuant to which the Company received net proceeds of $2,187,317 and recorded a gain on sale of $61,129.
Investment in Investee Company	Investment in Investee Company Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the investee company. Under the equity method of accounting, an investee company’s accounts are not reported in the Company’s condensed consolidated balance sheets and statements of operations; however, the Company’s share of the earnings or losses of the investee company is reflected in the caption ‘‘Equity in loss of investee company” in the condensed consolidated statements of operations. The Company’s carrying value in an equity method investee company is reported in the caption ‘‘Investment in investee company’’ in the Company’s condensed consolidated balance sheets. When the Company’s carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company’s condensed consolidated financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals or exceeds the amount of its share of losses not previously recognized.
Goodwill	Goodwill Goodwill is recognized as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. Goodwill is not amortized but reviewed for impairment annually as of June 30 or more frequently if events or changes in circumstances indicate that its carrying value may be impaired. These conditions could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Company has one reporting unit. The first step of the impairment test requires comparing a reporting unit’s fair value to its carrying value. If the carrying value is less than the fair value, no impairment exists and the second step is not performed. If the carrying value is higher than the fair value, there is an indication that impairment may exist and the second step must be performed to compute the amount of the impairment. In the second step, the impairment is computed by estimating the fair values of all recognized and unrecognized assets and liabilities of the reporting unit and comparing the implied fair value of reporting unit goodwill with the carrying amount of that unit’s goodwill. The Company determined fair value as evidenced by market capitalization, and concluded that there was no need for an impairment charge as of September 30, 2018 and June 30, 2018.
Warranty Obligations	Warranty Obligations The Company typically warrants its products for the shorter of twelve months after installation or eighteen months after date of shipment. Warranty costs are provided for estimated claims and charged to cost of sales as revenue is recognized. Warranty obligations are also evaluated quarterly to determine a reasonable estimate for the replacement of potentially defective materials of all energy storage systems that have been shipped to customers within the warranty period. While the Company actively engages in monitoring and improving its technologies, there is only a limited product history and relatively short time frame available to test and evaluate the rate of product failure. Should actual product failure rates differ from the Company’s estimates, revisions are made to the estimated rate of product failures and resulting changes to the liability for warranty obligations. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. The following is a summary of accrued warranty activity: Three months ended September 30, 2018 2017 Beginning balance $ 121,699 $ 239,173 Accruals for warranties - 852 Net settlements (113,825 ) (34,610 ) Adjustments relating to preexisting warranties 93,449 (8,724 ) Ending balance $ 101,323 $ 196,691 The Company offers extended warranty contracts to its customers. These contracts typically cover a period up to twenty years and include advance payments that are recorded initially as long-term deferred revenue. Revenue is recognized in the same manner as the costs incurred to perform under the extended warranty contracts. Costs associated with these extended warranty contracts are expensed to cost of sales as incurred. A summary of changes to long-term deferred revenue for extended warranty contracts is as follows: Three months ended September 30, 2018 2017 Beginning balance $ 544,249 $ 431,700 Deferred revenue for new extended warranty contracts 172,422 - Deferred revenue recognized (938 ) (938 ) Ending balance 715,733 430,762 Less: current portion of deferred revenue for extended warranty contracts 4,374 8,124 Long-term deferred revenue for extended warranty contracts $ 711,359 $ 422,638
Revenue Recognition	Revenue Recognition Revenues are recognized when persuasive evidence of a contractual arrangement exists, delivery has occurred or services have been rendered, the seller’s price to buyer is fixed and determinable and collectability is reasonably assured. The portion of revenue related to installation and final acceptance, is deferred until such installation and final customer acceptance are completed. From time to time, the Company may enter into separate agreements at or near the same time with the same customer. The Company evaluates such agreements to determine whether they should be accounted for individually as distinct arrangements or whether the separate agreements are, in substance, a single multiple element arrangement. The Company evaluates whether the negotiations are conducted jointly as part of a single negotiation, whether the deliverables are interrelated or interdependent, whether the fees in one arrangement are tied to performance in another arrangement, and whether elements in one arrangement are essential to another arrangement. The Company’s evaluation involves significant judgment to determine whether a group of agreements might be so closely related that they are, in effect, part of a single arrangement. For arrangements containing multiple elements, revenue from time and materials based service arrangements is recognized as the service is performed. Revenue relating to undelivered elements is deferred at the estimated fair value until delivery of the deferred elements. If the arrangement does not meet all criteria above, the entire amount of the transaction is deferred until all elements are delivered. For PPA projects with an identified buyer, the Company recognizes revenue for the sales of PPA projects using the percentage of completion method for recording revenues on long term contracts under FASB ASC Topic 606 – Revenue from Contracts with Customers, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term. The Company charges shipping and handling fees when products are shipped or delivered to a customer, and includes such amounts in product revenues and shipping costs in cost of product sales. The Company reports its revenues net of estimated returns and allowances. Revenues for the three months ended September 30, 2018 were comprised of four significant customers ( 87 90 The Company had two significant customers with an outstanding receivable balance of $173,849 ( 81
Advanced Engineering and Development Expenses	Advanced Engineering and Development Expenses In accordance with FASB ASC Topic 730 – Research and Development, the Company expenses advanced engineering and development costs as incurred. These costs consist primarily of materials, labor and allocable indirect costs incurred to design, build and test prototype units, as well as the development of manufacturing processes for these units. Advanced engineering and development costs also include consulting fees and other costs. To the extent these costs are separately identifiable, incurred and funded by advanced engineering and development type agreements with outside parties, they are shown separately on the condensed consolidated statements of operations as a “Cost of engineering and development.”
Stock-Based Compensation	Stock-Based Compensation The Company measures all “Share-Based Payments," including grants of stock options, restricted shares and restricted stock units (“RSUs”) in its condensed consolidated statements of operations based on their fair values on the grant date, which is consistent with FASB ASC Topic 718 – Stock Compensation guidelines. Accordingly, the Company measures share-based compensation cost for all share-based awards at the fair value on the grant date and recognizes share-based compensation over the service period for awards that are expected to vest, net of estimated forfeitures. The fair value of stock options is determined based on the number of shares granted and the price of the shares at grant, and calculated based on the Black-Scholes valuation model. The Company compensates its outside directors with RSUs and cash. The grant date fair value of the RSU awards is determined using the closing stock price of the Company’s common stock (the “Common Stock”) on the day prior to the date of the grant, with the compensation expense amortized over the vesting period of RSU awards, net of estimated forfeitures. The Company only recognizes expense for those options or shares that are expected ultimately to vest, using two attribution methods to record expense, the straight-line method for grants with only service-based vesting or the graded-vesting method, which considers each performance period, for all other awards.
Income Taxes	Income Taxes The Company records deferred income taxes in accordance with FASB ASC Topic 740 – Accounting for Income Taxes. FASB ASC Topic 740 requires recognition of deferred income tax assets and liabilities for temporary differences between the tax basis of assets and liabilities and the amounts at which they are carried in the consolidated financial statements, based upon the enacted tax rates in effect for the year in which the differences are expected to reverse. In addition, a valuation allowance is recognized if it is more likely than not that some or all of the deferred income tax assets will not be realized in the foreseeable future. Deferred income tax assets are reviewed for recoverability based on historical taxable income, the expected reversals of existing temporary differences, tax planning strategies and projections of future taxable income. As a result of this analysis, the Company has provided for a full valuation allowance against its net deferred income tax assets as of September 30, 2018 and June 30, 2018. The Company applies a more-likely-than-not recognition threshold for all tax uncertainties as required under FASB ASC Topic 740, which only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. The Company’s U.S. federal income tax returns for the years ended June 30, 2014 through June 30, 2017 and the Company’s Wisconsin income tax returns for the years ended June 30, 2013 through June 30, 2017 are subject to examination by taxing authorities. As of September 30, 2018, there were no examinations in progress.
Foreign Currency	Foreign Currency The Company uses the U.S. dollar as its functional and reporting currency, while the Philippines peso and Hong Kong dollar are the functional currencies of its foreign subsidiaries. Assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates that are in effect at the balance sheet date while equity accounts are translated at historical exchange rates. Income and expense items are translated at average exchange rates which were applicable during the reporting period. Translation adjustments are recorded in accumulated other comprehensive loss as a separate component of equity in the condensed consolidated balance sheets.
Loss per Share	Loss per Share The Company follows the FASB ASC Topic 260 – Earnings per Share provisions which require the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (net loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with the FASB ASC Topic 260, any anti-dilutive effects on net income (loss) per share are excluded.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, accounts receivable and costs and estimated earnings in excess of billings. The Company maintains significant cash deposits primarily with one financial institution. The Company has not previously experienced any material losses on such deposits. Additionally, the Company performs periodic evaluations of the relative credit rating of the institution as part of its banking strategy. Concentrations of credit risk with respect to accounts receivable and costs and estimated earnings in excess of billings are limited due to accelerated payment terms in current customer contracts and creditworthiness of the current customer base.
Segment Information	Segment Information The Company has determined that it operates as one reportable segment.
Reclassifications	Reclassifications Certain amounts previously reported have been reclassified to conform to the current presentation. The reclassifications did not impact prior period results of operations, cash flows, total assets, total liabilities, or total equity.
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective and not included below will not have a material impact on the Company’s financial position or results of operations upon adoption. In August 2018, the FASB issued Accounting Standard Update (“ASU”) 2018-13 – Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement: This amendment modifies the disclosure requirements used in the fair value measurement of financial instruments in assets and liabilities held as of the balance sheet date which are categorized within Level 3 of the fair value hierarchy. ASU 2018-13 also imposes additional disclosure requirement relating to changes in unrealized gain and losses as a result of level input transfer. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. The Company does not expect adoption of this guidance to have a significant impact on its condensed consolidated financial statements. In July 2018, the FASB issued ASU 2018-10 – Codification improvements to Topic 842, Leases. The amendment in ASU 2018-10 replace existing lease guidance under ASU 2016-02 – Leases (Topic 842), which the Company early adopted effective January 1, 2016. ASU 2018-10 is effective on issuance for early adopters of ASU 2016-02. The Company was required to adopt this standard beginning July 1, 2018. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 – Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Under the new guidance, entities will have the option to reclassify tax effects within other comprehensive income (referred to as stranded tax effects) to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) is recorded. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods. The Company does not expect adoption of this guidance to have a significant impact on its condensed consolidated financial statements. In May 2017, the FASB issued ASU 2017-09 – Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective prospectively for all companies for annual periods beginning on or after December 15, 2017, including interim periods within those annual periods. The Company was required to adopt this standard beginning July 1, 2018. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 – Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test, under which in computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under the amendments in ASU 2017-04, the annual or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The guidance is effective prospectively for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect adoption of this guidance to have a significant impact on its condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15 – Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The amendments in ASU 2016-15 addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The Company was required to adopt this standard beginning July 1, 2018. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In May 2016, the FASB issued ASU 2016-11 – Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update). ASU 2016-11 rescinds the certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities – Oil and Gas, effective upon the adoption of Topic 606. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: (a) Revenue and Expense Recognition for Freight Services in Process, (b) Accounting for Shipping and Handling Fees and Costs, (c) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor’s Products), (d) Accounting for Gas-Balancing Arrangements (that is, use of the “entitlements method”). In addition, as a result of the amendments in Update 2014-16, the SEC staff is rescinding its SEC Staff Announcement, “Determining the Nature of a Host Contract Related to a Hybrid Instrument Issued in the Form of a Share under Topic 815,” effective concurrently with ASU 2014-16. The effective dates in ASU 2016-11 coincide with the effective dates of Topic 606 (ASU 2014-09) and ASU 2014-16. The Company previously reviewed ASU 2014-16 and determined that it is not applicable. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606). The amendment outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. Additional ASUs have also been issued as part of the overall new revenue guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the revenue model to contracts within its scope, an entity identifies the contract(s) with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to the performance obligations in the contract and recognizes revenue when the entity satisfies a performance obligation. The guidance also requires expanded disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company was required to adopt this standard beginning July 1, 2018, and elected the full retrospective approach. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. The effect was not significant because the Company’s analysis of contracts under the new revenue standard supports the recognition of revenue over time for the majority of contracts, which is consistent with the Company’s historical revenue recognition model. Where a performance obligation is satisfied over time, the related revenue is also recognized over time.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Estimated Useful Lives Used For Each Class of Depreciable Assets	The estimated useful lives used for each class of depreciable asset are: Estimated Useful Lives Manufacturing equipment 3 - 7 years Office equipment 3 - 7 years Building and improvements 7 - 40 years
Schedule Of Accrued Warranty Liability	The following is a summary of accrued warranty activity: Three months ended September 30, 2018 2017 Beginning balance $ 121,699 $ 239,173 Accruals for warranties - 852 Net settlements (113,825 ) (34,610 ) Adjustments relating to preexisting warranties 93,449 (8,724 ) Ending balance $ 101,323 $ 196,691
Deferred Revenue, by Arrangement, Disclosure	A summary of changes to long-term deferred revenue for extended warranty contracts is as follows: Three months ended September 30, 2018 2017 Beginning balance $ 544,249 $ 431,700 Deferred revenue for new extended warranty contracts 172,422 - Deferred revenue recognized (938 ) (938 ) Ending balance 715,733 430,762 Less: current portion of deferred revenue for extended warranty contracts 4,374 8,124 Long-term deferred revenue for extended warranty contracts $ 711,359 $ 422,638

CHINA JOINT VENTURE (Tables)

CHINA JOINT VENTURE (Tables)	3 Months Ended
	Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Related Party Sales and Purchase Activity	Activity with Meineng Energy is summarized as follows: Three months ended September 30, 2018 2017 Product sales to Meineng Energy $ - $ 13,008 Cost of product sales to Meineng Energy - 11,211 Product purchases from Meineng Energy 54,561 12,900
Schedule of Related Party Transactions	The total amount due to Meineng Energy is as follows: September 30, 2018 June 30, 2018 Net amount due to Meineng Energy $ (19,527 ) $ (33,822 )
Equity Method Investments	The operating results for Meineng Energy are summarized as follows: Three months ended September 30, 2018 2017 Revenues $ 3,170 $ 4,646 Gross loss (1,116 ) (1,086 ) Loss from operations (277,767 ) (373,926 ) Net loss (273,663 ) (346,905 )

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventories	Net inventories are comprised of the following as of: September 30, 2018 June 30, 2018 Raw materials and subassemblies $ 1,904,486 $ 1,587,454 Less: inventory reserve (417,009 ) (367,006 ) Total $ 1,487,477 $ 1,220,448

PROPERTY & EQUIPMENT (Tables)

PROPERTY & EQUIPMENT (Tables)	3 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment are comprised of the following: September 30, 2018 June 30, 2018 Leasehold improvements $ 44,975 $ 44,975 Manufacturing equipment 2,977,107 2,977,579 Office equipment 470,730 470,731 Construction in process 303,604 227,702 Total, at cost 3,796,416 3,720,987 Less: accumulated depreciation (2,983,530 ) (2,945,442 ) Property and equipment, net $ 812,886 $ 775,545

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
	Sep. 30, 2018
Payables and Accruals [Abstract]
ACCRUED EXPENSES	Accrued expenses are comprised of the following as of: September 30, 2018 June 30, 2018 Accrued compensation and benefits $ 350,305 $ 441,222 Accrued warranty 101,323 121,699 Right of use liability-operating leases 164,597 197,616 Customer deposits 63,386 104,724 Other 348,091 371,419 Total $ 1,027,702 $ 1,236,680

EMPLOYEE AND DIRECTOR EQUITY _2

EMPLOYEE AND DIRECTOR EQUITY INCENTIVE PLANS (Tables)	3 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions	The following assumptions were used to estimate the fair value of stock options granted during the three months ended September 30, 2018 and September 30, 2017 using the Black-Scholes option-pricing model: Three months ended September 30, 2018 2017 Expected life of option (years) N/A 4 Risk-free interest rate N/A 1.66 - 1.69% Assumed volatility N/A 113.62 - 113.75% Expected dividend rate N/A 0.00% Expected forfeiture rate N/A 6.15 - 6.72%
Schedule Of Share Based Compensation Stock Options Activity	Information with respect to stock option activity is as follows: Number of Options Weighted Average Exercise Price Average Remaining Contractual Life (in years) Balance at June 30, 2017 8,249,298 $ 0.71 6.50 Options granted 1,407,000 0.40 Options forfeited (2,781,483 ) 0.71 Balance at June 30, 2018 6,874,815 0.65 5.87 Options forfeited (677,217 ) 0.54 Balance at September 30, 2018 6,197,598 0.66 5.66
Disclosure Of Share Based Compensation Arrangements By Share Based Payment Award	The following table summarizes information relating to the stock options outstanding as of September 30, 2018: Outstanding Exercisable Range of Exercise Prices Number of Options Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number of Options Average Remaining Contractual Life (in years) Weighted Average Exercise Price $0.28 to $0.50 3,313,815 6.08 $ 0.39 1,596,616 5.32 $ 0.40 $0.51 to $1.00 2,222,983 5.64 0.68 1,437,584 5.26 0.71 $1.01 to $1.50 170,000 5.41 1.02 130,000 5.23 1.02 $1.51 to $2.00 400,950 3.51 1.73 400,950 3.51 1.73 $2.01 to $5.80 89,850 1.06 4.90 89,850 1.06 4.90 Balance at September 30, 2018 6,197,598 5.66 0.66 3,655,000 4.99 0.80
Schedule Of Unrecognized Compensation Cost Nonvested Awards	Information with respect to unvested employee stock option activity is as follows: Number of Options Weighted Average Grant Date Fair Value Per Share Average Remaining Contractual Life (in years) Balance at June 30, 2017 5,197,098 $ 0.54 6.93 Options granted 1,407,000 0.40 Options vested (1,581,266 ) 0.56 Options forfeited (1,840,499 ) 0.48 Balance at June 30, 2018 3,182,333 0.51 6.57 Options vested (362,835 ) 0.71 Options forfeited (276,900 ) 0.65 Balance at September 30, 2018 2,542,598 0.47 6.63
Schedule Of Share Based Compensation Restricted Stock Units Award Activity	Information with respect to RSU activity is as follows: Number of Restricted Stock Units Weighted Average Valuation Price Per Unit Balance at June 30, 2017 5,556,332 $ 1.07 RSUs granted 4,342,519 0.41 RSUs forfeited (1,147,231 ) 0.75 Shares issued (1,041,152 ) 1.42 Balance at June 30, 2018 7,710,468 0.70 RSUs granted 148,276 0.29 Shares issued (70,654 ) 0.40 Balance at September 30, 2018 7,788,090 0.69

WARRANTS (Tables)

WARRANTS (Tables)	3 Months Ended
	Sep. 30, 2018
WARRANTS [Abstract]
Schedule of Stockholders' Equity Note, Warrants or Rights	Information with respect to warrant activity is as follows: Number of Warrants Weighted Average Exercise Price Per Share Balance at June 30, 2017 357,500 $ 0.42 Warrants granted 220,000 0.40 Warrants expired (180,000 ) 0.40 Balance at June 30, 2018 and September 30, 2018 397,500 0.42

BASIC AND DILUTED NET LOSS PE_2

BASIC AND DILUTED NET LOSS PER SHARE (Tables)	3 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Potential common shares not included in calculating diluted net loss per share are as follows: September 30, 2018 September 30, 2017 Stock options and RSUs 13,985,688 13,551,752 Stock warrants 397,500 577,500 Series B preferred shares 3,967,176 3,594,065 Total 18,350,364 17,723,317

COMMITMENTS (Tables)

COMMITMENTS (Tables)	3 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Summary Of Weighted average Discount Rate For Finance And Operating Leases	Information regarding the weighted-average remaining lease term and the weighted-average discount rate for operating leases are summarized below: September 30, 2018 June 30, 2018 Weighted-average remaining lease term (in years) 6.01 6.05 Weighted-average discount rate 5.0 % 5.0 %
Schedule Of Future Minimum Rental Payments For Operating Leases	The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the condensed consolidated balance sheet as of September 30, 2018: 2019 $ 157,677 2020 210,260 2021 172,317 2022 174,873 2023 177,429 Thereafter 285,846 Total undiscounted lease payments 1,178,402 Present value adjustment (166,782 ) Net operating lease liabilities $ 1,011,620

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Sep. 30, 2018
Manufacturing Equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	7 years
Manufacturing Equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Office Equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	7 years
Office Equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Building and improvements [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	40 years
Building and improvements [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	7 years

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Beginning balance	$ 121,699	$ 239,173
Accruals for warranties	0	852
Net settlements	(113,825)	(34,610)
Adjustments relating to preexisting warranties	93,449	(8,724)
Ending balance	$ 101,323	$ 196,691

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Jul. 13, 2015
Deferred Revenue Arrangement [Line Items]
Deferred revenue for new extended warranty contracts	$ 172,422	$ 0
Long-term deferred revenue for extended warranty contracts	711,359		$ 538,937	$ 13,290,000
Extended Warranty Contracts [Member]
Deferred Revenue Arrangement [Line Items]
Beginning balance	544,249	431,700
Deferred revenue for new extended warranty contracts	172,422	0
Deferred revenue recognized	(938)	(938)
Ending balance	715,733	430,762
Less: current portion of deferred revenue for extended warranty contracts	4,374	8,124
Long-term deferred revenue for extended warranty contracts	$ 711,359	$ 422,638

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($)	Oct. 12, 2017	Jan. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2017
Accounts Receivable, Net, Current			$ 17,504	$ 215,009
Proceeds from Sale of Property, Plant, and Equipment	$ 2,340,000		11,124		$ 70,000
Impairment of Long-Lived Assets to be Disposed of			$ 0		$ 447,000
Proceeds from Sale of Buildings		$ 2,187,317
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property		$ 61,129
Investee Company's [Member] | Maximum [Member]
Equity Method Investment, Ownership Percentage			50.00%
Investee Company's [Member] | Minimum [Member]
Equity Method Investment, Ownership Percentage			20.00%
Customer One Concentration Risk [Member]
Accounts Receivable, Net, Current				$ 173,849
Sales Revenue, Net [Member]
Concentration Risk, Percentage			87.00%	81.00%	90.00%

MANAGEMENT'S PLANS AND FUTURE_2

MANAGEMENT'S PLANS AND FUTURE OPERATIONS (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Net Loss	$ (2,771,694)	$ (3,891,794)
Retained Earnings (Accumulated Deficit)	(140,381,353)		$ (137,609,659)
Total equity	5,944,976		5,782,818
Liabilities	$ 4,236,824		$ 4,498,114

CHINA JOINT VENTURE (Details)

CHINA JOINT VENTURE (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Net amount due to Meineng Energy	$ (19,527)		$ (33,822)
Meineng Energy [Member]
Product sales to Meineng Energy	0	$ 13,008
Cost of product sales to Meineng Energy	0	11,211
Product purchases from Meineng Energy	$ 54,561	$ 12,900

CHINA JOINT VENTURE (Details 1)

CHINA JOINT VENTURE (Details 1) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Revenues	$ 3,170	$ 4,646
Gross profit (loss)	(1,116)	(1,086)
Loss from operations	(277,767)	(373,926)
Net loss	$ (273,663)	$ (346,905)

CHINA JOINT VENTURE (Details Te

CHINA JOINT VENTURE (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Gain (Loss) on Investments	$ 870,001	$ 831,433
Chief Executive Officer [Member]
Equity Method Investment, Ownership Percentage	6.00%
Power Sav [Member]
Equity Method Investment, Ownership Percentage	40.00%
Payments to Acquire Interest in Joint Venture	$ 3,300,000
Ensync Inc [Member]
Equity Method Investment, Ownership Percentage	60.00%
Payments to Acquire Interest in Joint Venture	$ 200,000
Anhui Meineng Store Energy Co Ltd [Member]
Capitalization, Amount of Equity	14,800,000		$ 14,800,000
Holdco [Member]
Contribution Of Technology Upon License Agreement	4,100,000
Basis In The Technology Contributed Related To Research And Development Expenditures	$ 0
Meineng Energy [Member]
Equity Method Investment, Ownership Percentage	30.00%		30.00%

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Raw materials and subassemblies	$ 1,904,486	$ 1,587,454
Less: inventory reserve	(417,009)	(367,006)
Total	$ 1,487,477	$ 1,220,448

PROPERTY & EQUIPMENT (Details)

PROPERTY & EQUIPMENT (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Leasehold improvements	$ 44,975	$ 44,975
Manufacturing equipment	2,977,107	2,977,579
Office equipment	470,730	470,731
Construction in process	303,604	227,702
Total, at cost	3,796,416	3,720,987
Less: accumulated depreciation	(2,983,530)	(2,945,442)
Property and equipment, net	$ 812,886	$ 775,545

PROPERTY & EQUIPMENT (Details T

PROPERTY & EQUIPMENT (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Depreciation of property, plant and equipment	$ 38,344	$ 97,392

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Accrued compensation and benefits	$ 350,305	$ 441,222
Accrued warranty	101,323	121,699
Right of use liability-operating leases	164,597	197,616
Customer deposits	63,386	104,724
Other	348,091	371,419
Total	$ 1,027,702	$ 1,236,680

LONG-TERM DEBT (Details Textual

LONG-TERM DEBT (Details Textual)	1 Months Ended
	Jun. 30, 2016USD ($)
Sale Leaseback Transaction, Net Proceeds, Investing Activities	$ 331,827
Sale Leaseback Transaction, Imputed Interest Rate	2.44%
Sale Leaseback Transaction, Lease Terms In Years	20 years
Debt Instrument, Maturity Date	Mar. 31, 2036
Maximum [Member]
Sale Leaseback Transaction, Quarterly Rental Payments	$ 2,555
Minimum [Member]
Sale Leaseback Transaction, Quarterly Rental Payments	$ 1,510

EMPLOYEE AND DIRECTOR EQUITY _3

EMPLOYEE AND DIRECTOR EQUITY INCENTIVE PLANS (Details)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Expected life of option (years)		4 years
Risk-free interest rate, minimum		1.66%
Risk-free interest rate, maximum		1.69%
Assumed volatility, minimum		113.62%
Assumed volatility, maximum		113.75%
Expected dividend rate		0.00%
Expected forfeiture rate, minimum		6.15%
Expected forfeiture rate, maximum		6.72%

EMPLOYEE AND DIRECTOR EQUITY _4

EMPLOYEE AND DIRECTOR EQUITY INCENTIVE PLANS (Details 1) - $ / shares	3 Months Ended	12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Number of Options outstanding, Beginning	6,874,815	8,249,298
Number of Options granted		1,407,000
Number of Options forfeited	(677,217)	(2,781,483)
Number of Options outstanding, Ending	6,197,598	6,874,815	8,249,298
Outstanding beginning, Weighted-Average Exercise Price	$ 0.65	$ 0.71
Options granted, Weighted-Average Exercise Price		0.40
Options forfeited, Weighted-Average Exercise Price	0.54	0.71
Outstanding ending, Weighted-Average Exercise Price	$ 0.66	$ 0.65	$ 0.71
Average Remaining Contractual Life (in years)	5 years 7 months 28 days	5 years 10 months 13 days	6 years 6 months

EMPLOYEE AND DIRECTOR EQUITY _5

EMPLOYEE AND DIRECTOR EQUITY INCENTIVE PLANS (Details 2) - $ / shares	3 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Outstanding Number of Options	6,197,598	6,874,815	8,249,298
Outstanding Average Remaining Contractual Life (in years)	5 years 7 months 28 days
Outstanding Weighted Average Exercise Price	$ 0.66	$ 0.65	$ 0.71
Exercisable Number of Options	3,655,000
Exercisable Average Remaining Contractual Life (in years)	4 years 11 months 26 days
Exercisable Weighted Average Exercise Price	$ 0.80
Range 0.28 to 0.50 [Member]
Outstanding Number of Options	3,313,815
Outstanding Average Remaining Contractual Life (in years)	6 years 29 days
Outstanding Weighted Average Exercise Price	$ 0.39
Exercisable Number of Options	1,596,616
Exercisable Average Remaining Contractual Life (in years)	5 years 3 months 25 days
Exercisable Weighted Average Exercise Price	$ 0.40
Range 0.51 to 1.00 [Member]
Outstanding Number of Options	2,222,983
Outstanding Average Remaining Contractual Life (in years)	5 years 7 months 20 days
Outstanding Weighted Average Exercise Price	$ 0.68
Exercisable Number of Options	1,437,584
Exercisable Average Remaining Contractual Life (in years)	5 years 3 months 4 days
Exercisable Weighted Average Exercise Price	$ 0.71
Range 1.01 to 1.50 [Member]
Outstanding Number of Options	170,000
Outstanding Average Remaining Contractual Life (in years)	5 years 4 months 28 days
Outstanding Weighted Average Exercise Price	$ 1.02
Exercisable Number of Options	130,000
Exercisable Average Remaining Contractual Life (in years)	5 years 2 months 23 days
Exercisable Weighted Average Exercise Price	$ 1.02
Range 1.51 to 2.00 [Member]
Outstanding Number of Options	400,950
Outstanding Average Remaining Contractual Life (in years)	3 years 6 months 4 days
Outstanding Weighted Average Exercise Price	$ 1.73
Exercisable Number of Options	400,950
Exercisable Average Remaining Contractual Life (in years)	3 years 6 months 4 days
Exercisable Weighted Average Exercise Price	$ 1.73
Range 2.01 to 5.80 [Member]
Outstanding Number of Options	89,850
Outstanding Average Remaining Contractual Life (in years)	1 year 22 days
Outstanding Weighted Average Exercise Price	$ 4.90
Exercisable Number of Options	89,850
Exercisable Average Remaining Contractual Life (in years)	1 year 22 days
Exercisable Weighted Average Exercise Price	$ 4.90

EMPLOYEE AND DIRECTOR EQUITY _6

EMPLOYEE AND DIRECTOR EQUITY INCENTIVE PLANS (Details 3) - $ / shares	3 Months Ended	12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Number of Options
Beginning Balance, Number of Options	3,182,333	5,197,098
Granted		1,407,000
Vested	(362,835)	(1,581,266)
Forfeited	(276,900)	(1,840,499)
Ending Balance, number of options	2,542,598	3,182,333	5,197,098
Weighted Average Grant Date Fair Value Per Share
Beginning Balance, grant date fair value	$ 0.51	$ 0.54
Granted		0.40
Vested	0.71	0.56
Forfeited	0.65	0.48
Ending Balance, grant date fair value	$ 0.47	$ 0.51	$ 0.54
Average Remaining Contractual Life (in years)	6 years 7 months 17 days	6 years 6 months 25 days	6 years 11 months 5 days

EMPLOYEE AND DIRECTOR EQUITY _7

EMPLOYEE AND DIRECTOR EQUITY INCENTIVE PLANS (Details 4) - Restricted Stock Unit [Member] - $ / shares	3 Months Ended
	Sep. 30, 2018	Jun. 30, 2018
Number of Restricted Stock Units, Beginning Balance	7,710,468	5,556,332
Number of Restricted Stock Units, RSUs granted	148,276	4,342,519
Number of Restricted Stock Units, RSUs forfeited		(1,147,231)
Number of Restricted Stock Units, Shares issued	(70,654)	(1,041,152)
Number of Restricted Stock Units, Ending balance	7,788,090	7,710,468
Weighted Average Valuation Price Per Unit, Outstanding Beginning	$ 0.70	$ 1.07
Weighted Average Valuation Price Per Unit, RSUs granted	0.29	0.41
Weighted Average Valuation Price Per Unit, RSUs forfeited		0.75
Weighted Average Valuation Price Per Unit, Shares issued	0.40	1.42
Weighted Average Valuation Price Per Unit, Outstanding Ending	$ 0.69	$ 0.70

EMPLOYEE AND DIRECTOR EQUITY _8

EMPLOYEE AND DIRECTOR EQUITY INCENTIVE PLANS (Details Textual) - USD ($)	Nov. 14, 2017	Nov. 14, 2016	Sep. 24, 2018	Jun. 26, 2018	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Nov. 30, 2012	Nov. 30, 2010
Share-based Compensation					$ 314,642	$ 435,608
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						27,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit						$ 0.39
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit						$ 0.48
Share Price					$ 0.26
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition					1 year 3 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period					362,835		1,581,266
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period					276,900		1,840,499
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options					$ 314,235
Sharebased Compensation Arrangement by Sharebased Payment Award Options Granted in Period Fair Value					0	$ 9,319
Restricted Stock or Unit Expense					303,342	247,169
Stock Option [Member]
Share-based Compensation					$ 11,300	188,439
Restricted Stock Units (RSUs) [Member]
Unvested Rsus Outstanding					3,855,000
Unrecognized compensation cost related to unvested RSUs					$ 1,487,901
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized								4,400,000
Sharebased Compensation Arrangement by Sharebased Payment Award Options Granted in Period Fair Value					$ 43,000	$ 0
2007 Stock Option Plan [Member] | Key Employees Or Non Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized					300,000
2010 Omnibus Long-Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized					13,950,000
Common Stock, Capital Shares Reserved for Future Issuance					1,350,217
2010 Omnibus Long-Term Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized									13,950,000
2010 Omnibus Long-Term Incentive Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized									2,000,000
2012 Director Equity Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance					298,375
2012 Director Equity Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized								4,400,000
2012 Director Equity Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized								1,200,000
2012 Director Equity Plan [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period						563,635
2012 Director Equity Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross				119,444
2012 Director Equity Plan [Member] | Director [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	1,163,075	581,816
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			148,276
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period						18,181
2012 Director Equity Plan [Member] | Director [Member] | Restricted Stock [Member]
Stock Granted, Value, Share-based Compensation, Gross	$ 43,000

WARRANTS (Details)

WARRANTS (Details) - $ / shares	3 Months Ended	12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018
Warrants Beginning Balance	397,500	357,500
Warrants granted	0	220,000
Warrants expired		(180,000)
Ending balance	397,500	397,500
Warrants outstanding beginning weighted average exercise price	$ 0.42	$ 0.42
Warrants granted weighted average exercise price	0	0.40
Warrants expired weighted average exercise price		0.40
Warrants outstanding ending weighted average exercise price	$ 0.42	$ 0.42

WARRANTS (Details Textual)

WARRANTS (Details Textual) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 22, 2017	Sep. 30, 2018	Jun. 30, 2018	Aug. 07, 2017
WARRANTS [Line Items]
Warrants expired				180,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			362,835	1,581,266
Professional Services Agreement [Member]
WARRANTS [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights					220,000
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 0.40
Class Of Warrant Or Rights Date From Which Warrants Or Rights Expired	Mar. 31, 2021
Warrants expired	180,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	40,000
Roth Capital Partners Lic [Member]
WARRANTS [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		357,500
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.42
Stock Issued During Period, Value, New Issues		$ 2.5
Class Of Warrant Or Rights Date From Which Warrants Or Rights Expired		Jun. 30, 2022

BASIC AND DILUTED NET LOSS PE_3

BASIC AND DILUTED NET LOSS PER SHARE (Details) - shares	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Stock options and RSUs	13,985,688	13,551,752
Stock warrants	397,500	577,500
Series B preferred shares	3,967,176	3,594,065
Total	18,350,364	17,723,317

EQUITY (Details Textual)

EQUITY (Details Textual) - USD ($)	Jul. 13, 2015	Sep. 05, 2018	Sep. 26, 2013	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	May 04, 2017
Proceeds from Issuance of Common Stock				$ 2,701,569	$ 119,459
Deferred Revenue, Noncurrent	$ 13,290,000			711,359		$ 538,937
Common Stock Subject to Mandatory Redemption [Member] | Maximum [Member]
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Fair Value of Shares				100,000
Investor [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			3,000
SPI Energy Co., Ltd Securities Purchase Agreement [Member]
Stock Issued During Period, Value, New Issues	$ 33,390,000
Shares Issued, Price Per Share	$ 0.6678
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							50,000,000
Stock Issued During Period, Shares, New Issues	8,000,000
Registered Direct Offering [Member]
Shares Issued, Price Per Share		$ 0.26
Proceeds from Issuance of Common Stock		$ 2,701,569
Stock Issued During Period, Shares, New Issues		11,334,616
Common Stock [Member]
Stock Issued During Period, Value, New Issues				$ 113,346		$ 3,670
Convertible Preferred Stock, Shares Issued upon Conversion							42,000,600
Stock Issued During Period, Shares, New Issues	6,800,000			11,334,616		367,000
Series C Preferred Stock [Member]
Stock Issued During Period, Value, New Issues				$ 0		$ 0
Shares Issued, Price Per Share	$ 0.6678
Stock Issued During Period, Shares, New Issues	28,048			0		0
Preferred Stock, Liquidation Preference, Value				$ 28,048,000		$ 0
Preferred Stock, Shares Issued				28,048		28,048
Series C Preferred Stock [Member] | Common Stock [Member]
Stock Issued During Period, Shares, New Issues	13,300,000
Series B Convertible Preferred Stock [Member]
Preferred Stock, Conversion Price Per Share				$ 0.95
Preferred Stock, Dividend Rate, Percentage			10.00%
Conversion of Stock, Shares Converted				2,300
Conversion of Stock, Shares Issued				3,967,176
Preferred Stock, Liquidation Preference, Value				$ 6,068,818		$ 5,976,896
Sale of Stock, Price Per Share			$ 1,000
Series B Convertible Preferred Stock [Member] | Director [Member]
Preferred Stock, Shares Issued			500

COMMITMENTS (Details)

COMMITMENTS (Details)	3 Months Ended
	Sep. 30, 2018	Jun. 30, 2018
Weighted-average remaining lease term (in years)	6 years 4 days	6 years 18 days
Weighted-average discount rate	5.00%	5.00%

COMMITMENTS (Details 1)

COMMITMENTS (Details 1)	Sep. 30, 2018USD ($)
2,019	$ 157,677
2,020	210,260
2,021	172,317
2,022	174,873
2,023	177,429
Thereafter	285,846
Total undiscounted lease payments	1,178,402
Present value adjustment	(166,782)
Net operating lease liabilities	$ 1,011,620

COMMITMENTS (Details Textual)

COMMITMENTS (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Operating Leases, Rent Expense, Minimum Rentals	$ 13,845
Carrying Value Of Right Of Use Asset	1,011,620		$ 1,087,249
Short-term lease Rent Expense	$ 23,864	$ 8,922
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate	1.50%
Operating Leases, Rent Expense	$ 52,670	$ 21,264
Short Term Lease Monthly Rent Expense Description	rent for the twelve-month rental periods is between $400 and $3,150 per month.
Accrued Liabilities [Member]
Operating Lease Liability Short Term	$ 164,597		197,616
Other Noncurrent Liabilities [Member]
Operating Lease Liability Long Term	$ 847,023		$ 889,633

RETIREMENT PLANS (Details Textu

RETIREMENT PLANS (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Pension And Other Postretirement Benefit, Vested Percentage Of Eligible Employees	100.00%
Pension and Other Postretirement Benefits Cost (Reversal of Cost)	$ 49,589	$ 51,753
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	4.00%

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual)	1 Months Ended	3 Months Ended
	Dec. 22, 2017	Sep. 30, 2018	Sep. 30, 2017
Effective Income Tax Rate Reconciliation, Percent		0.00%	0.00%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%	21.00%