Synthesis Energy Systems (SYNE) 10-Q14 Nov 162017 Q1 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Sep. 30, 2016	Oct. 31, 2016
Document Information [Line Items]
Entity Registrant Name	SYNTHESIS ENERGY SYSTEMS INC
Entity Central Index Key	1,375,063
Trading Symbol	symx
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		87,044,085
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 11,048,000	$ 13,807,000
Accounts receivable, net	26,000	27,000
Prepaid expenses and other currents assets	1,132,000	828,000
Inventory	42,000	43,000
Assets of discontinued operations	12,003,000	12,662,000
Total current assets	24,251,000	27,367,000
Property, plant and equipment, net	111,000	54,000
Intangible asset, net	884,000	898,000
Investment in joint ventures	26,201,000	26,201,000
Other long-term assets	625,000	661,000
Total assets	52,072,000	55,181,000
Current liabilities:
Accrued expenses and accounts payable	1,588,000	1,655,000
Liabilities of discontinued operations	12,997,000	13,337,000
Total current liabilities	14,585,000	14,992,000
Commitment and contingencies (Note 9)
Preferred stock, $0.01 par value- 20,000 shares authorized – no shares issued and outstanding	0	0
Common stock, $0.01 par value: 200,000 shares authorized: 87,044 and 86,984 shares issued and outstanding, respectively	870,000	870,000
Additional paid-in capital	261,508,000	261,225,000
Accumulated deficit	(229,885,000)	(226,938,000)
Accumulated other comprehensive income	6,640,000	6,586,000
Total shareholder’s equity	39,133,000	41,743,000
Noncontrolling interests in subsidiaries	(1,646,000)	(1,554,000)
Total equity	37,487,000	40,189,000
Total liabilities and equity	$ 52,072,000	$ 55,181,000

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2016	Jun. 30, 2016
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	20,000,000	20,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	200,000,000	200,000,000
Common stock, issued (in shares)	87,044,000	86,984,000
Common stock, outstanding (in shares)	87,044,000	86,984,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Revenue:
Technology licensing and related services		$ 247
Total revenue		247
Costs and Expenses:
Costs of sales and plant operating		177
General and administrative expenses	2,332	1,965
Stock-based expense	257	1,131
Depreciation and amortization	39	57
Total costs and expenses	2,628	3,330
Operating loss	(2,628)	(3,083)
Non-operating (income) expense:
Foreign currency losses, net	26	119
Interest income	(5)	(10)
Loss from continuing operations	(2,649)	(3,192)
Loss from discontinued operations	(389)	(1,584)
Net Loss	(3,038)	(4,776)
Less: net loss attributable to noncontrolling interests	(91)	(194)
Net loss attributable to SES stockholders	(2,947)	(4,582)
Net loss attributable to SES stockholders:
From continuing operations	(2,567)	(3,003)
From discontinued operations	(380)	(1,579)
Net loss attributable to SES stockholders	$ (2,947)	$ (4,582)
Net loss per share (Basic and diluted):
From continuing operations (in dollars per share)	$ (0.03)	$ (0.03)
From discontinued operations (in dollars per share)	0	(0.02)
Net loss attributable to SES stockholders (in dollars per share)	$ (0.03)	$ (0.05)
Weighted average common shares outstanding:
Basic and diluted (in shares)	86,988	86,346

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Net loss	$ (3,038)	$ (4,776)
Currency translation adjustment	53	(620)
Comprehensive loss	(2,985)	(5,396)
Less comprehensive loss attributable to noncontrolling interests	(92)	(211)
Comprehensive loss attributable to the Company	$ (2,893)	$ (5,185)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
Consolidated Statements of Cash Flows (Unaudited) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (3,038,000)	$ (4,776,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based expense	257,000	1,131,000
Loss on disposal of property, plant and equipment	93,000
Depreciation and amortization	196,000	225,000
Foreign currency losses		246,000
Changes in operating assets and liabilities:
Accounts receivable		561,000
Prepaid expenses and other current assets	(15,000)	(284,000)
Inventory	26,000	(920,000)
Other long-term assets	(16,000)	(14,000)
Accrued expenses and payables	(285,000)	1,966,000
Net cash used in operating activities	(2,782,000)	(1,865,000)
Cash flows from investing activities:
Capital expenditures	(4,000)	(9,000)
Net cash used in investing activities	(4,000)	(9,000)
Cash flows from financing activities:
Payments on long-term bank loan
Proceeds from exercise of stock options	26,000	279,000
Proceeds from issuance of common stock		1,000,000
Net cash provided by financing activities	26,000	1,279,000
Net decrease in cash	(2,760,000)	(595,000)
Cash and cash equivalents, beginning of period	13,807,000	22,217,000
Effect of exchange rates on cash	(11,000)	(150,000)
Cash and cash equivalents, end of period	$ 11,048,000	$ 21,472,000

Consolidated Statement of Equit

Consolidated Statement of Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
Balance (in shares) at Jun. 30, 2015	85,476
Balance at Jun. 30, 2015	$ 855	$ 256,643	$ (203,866)	$ 6,179	$ (1,038)	$ 58,773
Net loss			(4,582)		(194)	(4,776)
Currency translation adjustment				(603)	(17)	(620)
Net proceeds from issuance of common stock (in shares)	1,000
Net proceeds from issuance of common stock	$ 10	990				1,000
Exercise of stock options (in shares)	372
Stock-based expense		1,131				1,131
Balance (in shares) at Sep. 30, 2015	86,848
Balance at Sep. 30, 2015	$ 868	259,040	(208,448)	5,576	(1,249)	55,787
Exercise of stock options	$ 3	276				279
Balance (in shares) at Jun. 30, 2016	86,984
Balance at Jun. 30, 2016	$ 870	261,225	(226,938)	6,586	(1,554)	40,189
Net loss			(2,947)		(91)	(3,038)
Currency translation adjustment				54	(1)	53
Exercise of stock options (in shares)	40
Stock-based expense		257				257
Balance (in shares) at Sep. 30, 2016	87,044
Balance at Sep. 30, 2016	$ 870	261,508	$ (229,885)	$ 6,640	$ (1,646)	37,487
Stock-based expense (in shares)	20
Exercise of stock options		$ 26				$ 26

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	3 Months Ended
Note 1 - Summary of Significant Accounting Policies	Sep. 30, 2016
Notes to Financial Statements
Significant Accounting Policies [Text Block]	Note 1 — Summary of Significant Accounting Policies (a) Organization and description of business Synthesis Energy Systems, Inc. (“SES”), together with its wholly-owned and majority-owned controlled subsidiaries (collectively, the “Company”) is a global clean energy and gasification technology company that provides proprietary gasification technology systems and solutions to the energy and chemical industries. Our gasification technology is a flexible, efficient and economic technology for the production of synthesis gas, or syngas, a mixture of primarily hydrogen, carbon monoxide and methane. Syngas is a clean and versatile source of energy. Our technology is uniquely capable of manufacturing clean syngas from a wide variety of energy resources including most all existing forms of coal, biomass, municipal wastes and refuse derived fuels and petroleum coke. In doing so, our technology produces syngas which allows us to unlock the energy from these resources and transform the syngas into electric power as well as a natural gas substitute. Furthermore, our syngas can be used to produce a variety of chemical products, fertilizers and transportation fuels. Our proprietary fluidized bed technology is built on decades of research, development, demonstration and commercialization. At the present time, we have commercialized seven gasification units. In addition, we are in the process of commissioning five units and have two additional units under development. The Company’s headquarters is located in Houston, Texas and it has an additional administrative location for Chinese operations in Shanghai, China. As noted in Note 2, in August 2016, the Company announced that it and Shandong Hai Hua Xecheng Energy (“Xuecheng Energy”) entered into a Definitive Agreement to restructure the ZZ Joint Venture. The agreement took full effect when the registration with the government was completed on October 31, 2016. During the second quarter of fiscal 2017, the Company will deconsolidate the ZZ Joint Venture and will account for our investment under the cost method. For purposes of these financials, the Company has classified all operations related to the ZZ Joint Venture as discontinued operations and have classified all assets and liabilities related to the ZZ Joint Venture as assets/liabilities of discontinued operations. Prior period results have been adjusted to reflect the current presentation. (b) Basis of presentation and principles of consolidation The consolidated financial statements for the periods presented are unaudited. Operating results for the three month period ended September 30, 2016 are not necessarily indicative of results to be expected for the fiscal year ending June 30, 2017. The consolidated financial statements are in U.S. dollars. Non-controlling interests in consolidated subsidiaries in the consolidated balance sheets represents minority stockholders’ proportionate share of the equity in such subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto reported in the Company’s Annual Report on Form 10-K for the year ended June 30, 2016. Significant accounting policies that are new or updated from those presented in the Company’s Annual Report on Form 10-K for the year ended June 30, 2016 are included below. The consolidated financial statements have been prepared in accordance with the rules of the United States Securities and Exchange Commission (“SEC”) for interim financial statements and do not include all annual disclosures required by generally accepted accounting principles in the United States. (c) Accounting for Variable Interest Entities (“VIEs”) and Financial Statement Consolidation Criteria The joint ventures which the Company enters into may be considered VIEs. The Company consolidates all VIEs where it is the primary beneficiary. This determination is made at the inception of the Company’s involvement with the VIE and is continuously assessed. The Company considers qualitative factors and forms a conclusion that the Company, or another interest holder, has a controlling financial interest in the VIE and, if so, whether it is the primary beneficiary. In order to determine the primary beneficiary, the Company considers who has the power to direct activities of the VIE that most significantly impacts the VIE’s performance and has an obligation to absorb losses from or the right to receive benefits of the VIE that could be significant to the VIE. The Company does not consolidate VIEs where it is not the primary beneficiary. The Company accounts for these unconsolidated VIEs using either the equity method of accounting if the Company has significant influence but not control, or the cost method of accounting and includes its net investment on its consolidated balance sheets. Under the equity method, the Company’s equity interest in the net income or loss from its unconsolidated VIEs is recorded in non-operating income (expense) on a net basis on its consolidated statements of operations. In the event of a change in ownership, any gain or loss resulting from an investee share issuance is recorded in earnings. Controlling interest is determined by majority ownership interest and the ability to unilaterally direct or cause the direction of management and policies of an entity after considering any third-party participatory rights. The Company has determined that the ZZ Joint Venture is a VIE and has determined that the Company is the primary beneficiary. In making the initial determination, the Company considered, among other items, the change in profit distribution between the Company and Xuejiao (as defined in Note 2 – Current Projects) after 20 years. The expected negative variability in the fair value of the ZZ Joint Venture’s net assets was considered to be greater during the first 20 years of the ZZ Joint Venture’s life, which coincided with our original 95% profit/loss allocation, versus the latter 30 years in which the Company’s profit/loss allocation would be reduced to 10%. As the result of an amendment to the ZZ Joint Venture agreement in 2010, the profit distribution percentages will remain in place after the first 20 years, providing further support to the determination that the Company is the primary beneficiary. As noted in Note 2, in August 2016, the Compoany announced that it and Shandong Hai Hua Xecheng Energy (“Xuecheng Energy”) entered into a Definitive Agreement to restructure the ZZ Joint Venture. The agreement took full effect when the registration with the government was completed on October 31, 2016. During the second quarter of fiscal 2017, the Company will deconsolidate the ZZ Joint Venture and will account for our investment under the cost method. For purposes of these financial statement, the Company has classified all operations related to the ZZ Joint Venture as discontinued operations and have classified all assets and liabilities related to the ZZ Joint Venture as assets/liabilities from discontinued operations. Prior period results have been adjusted to reflect the current presentation. The Company has determined that the Yima Joint Ventures are VIEs and that Yima, the joint venture partner, is the primary beneficiary since Yima has a 75% ownership interest in the Yima Joint Ventures and has the power to direct the activities of the VIE that most significantly influence the VIE’s performance. The carrying value of our investment in the Yima Joint Ventures at both September 30, 2016 and June 30, 2016 was approximately $26.2 million. The Company has determined that the Tianwo-SES Joint Venture (as defined in Note 2 – Current Projects – Tianwo-SES Joint Venture) is a VIE and that STT, the joint venture partner, is the primary beneficiary since SST has a 65% ownership interest in the Tianwo-SES Joint Venture and has the power to direct the activities of the Tianwo-SES Joint Venture that most significantly influence its performance. Because of losses sustained by the Tianwo-SES Joint Venture, the carrying value of this joint venture is zero at both September 30, 2016 and June 30, 2016. (d) Investment in joint ventures We have equity investments in various privately held entities. We account for these investments either under the equity method or cost method of accounting depending on our ownership interest and level of influence. Investments accounted for under the equity method are recorded based upon the amount of our investment and adjusted each period for our share of the investee's income or loss. Investments are reviewed for changes in circumstance or the occurrence of events that suggest an other than temporary event where our investment may not be recoverable. (e) Revenue Recognition Revenue from sales of products, which has included the capacity fee and energy fee earned at the ZZ Joint Venture plant includes sale of methanol under the ZZ Cooperation Agreement, and sales of equipment are recognized when the following elements are satisfied: (i) there are no uncertainties regarding customer acceptance; (ii) there is persuasive evidence that an agreement exists; (iii) delivery has occurred; (iv) the sales price is fixed or determinable; and (v) collectability is reasonably assured. The Company records revenue net of any applicable value-added taxes. Technology licensing revenue is typically received over the course of a project’s development as milestones are met. The Company may receive upfront licensing fee payments when a license agreement is entered into. Typically, the majority of a license fee is due once project financing and equipment installation occur. The Company recognizes license fees for the use of its gasification systems as revenue when the license fees become due and payable under the license agreement, subject to the deferral of the amount of the performance guarantee. Fees earned for engineering services, such as services that relate to integrating our technology to a customer’s project, are recognized using the percentage-of-completion method. (f) Fair value measurements Accounting standards require that fair value measurements be classified and disclosed in one of the following categories: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The Company’s financial assets and liabilities are classified based on the lowest level of input that is significant for the fair value measurement. The following table summarizes the assets of the Company measured at fair value on a recurring basis as of September 30, 2016 and June 30, 2016 (in thousands): September 30, 2016 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Certificates of Deposit- Restricted — 2,248 (2) — 2,248 Money Market Funds 10,509 (3) — — 10,509 June 30, 2016 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Certificates of Deposit- Restricted — 2,262 (2) — 2,262 Money Market Funds 12,654 (3) — — 12,654 (1) Amount included in current assets on the Company’s consolidated balance sheets. (2) Amount included in assets of discontinued operations on the Company’s consolidated balance sheets. (3) Amount included in cash and cash equivalents on the Company’s consolidated balance sheets. The carrying values of the certificates of deposit and money market funds approximate fair value, which was estimated using quoted market prices for those or similar investments. The carrying value of the Company’s other financial instruments, including accounts receivable, accounts payable and short-term debt approximate their fair values due to the short maturities on those instruments. (g) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, which creates Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers,” and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, ASU No. 2014-09 supersedes the cost guidance in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts,” and creates new Subtopic 340-40, “Other Assets and Deferred Costs—Contracts with Customers.” In summary, the core principle of Topic 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Companies are allowed to select between two transition methods: (1) a full retrospective transition method with the application of the new guidance to each prior reporting period presented, or (2) a retrospective transition method that recognizes the cumulative effect on prior periods at the date of adoption together with additional footnote disclosures. The amendments in ASU No. 2014-09 are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and early application is not permitted. In March 2016 and April 2016, the FASB issued ASU No. 2016-08 and ASU No. 2016-10, respectively. The amendments in ASU No. 2016-08 and ASU No. 2016-10 do not change the core principle of ASU No. 2014-09, but instead clarify the implementation guidance on principle versus agent considerations and identify performance obligations and the licensing implementation guidance, respectively. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements and have not made any decision on the method of adoption. In November 2015, the FASB issued ASU No. 2015-17, which amends ASC Topic 740, “Income Taxes.” This amendment aligns the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards. International Accounting Standard 1, Presentation of Financial Statements In February 2016, the FASB issued ASU No. 2016-02, which creates ASC Topic 842, “Leases.” This update increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In March 2016, the FASB issued ASU No. 2016-09, which amends ASC Topic 718, “Compensation – Stock Compensation.” This amendment simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In August 2016, the FASB issued an accounting standards update which provides additional clarity on the classification of specific events on the statement of cash flows. These events include: debt prepayment and extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from settlement of insurance claims, distributions received from equity method investees, and beneficial interests in securitization transactions. The update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods, with early application permitted.

Note 2 - Current Projects

Note 2 - Current Projects	3 Months Ended
Note 2 - Current Projects	Sep. 30, 2016
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	Note 2 – Current Projects Synthesis Energy Systems (Zao Zhuang) New Gas Company Ltd. (“ZZ Joint Venture”) In July 2006, we entered into a cooperative joint venture contract Xuecheng Energy which established the ZZ Joint Venture, a joint venture company that has the primary purposes of: • developing, constructing and operating a syngas production plant utilizing SGT in Zao Zhuang City, Shandong Province, China and • producing and selling syngas and the various byproducts of the plant. We initially owned 97.6% of the ZZ Joint Venture and Xuecheng Energy owned the remaining 2.4%. In June 2015, we entered into a Share Purchase and Investment Agreement (the “SPA”) with Rui Feng Enterprises Limited (“Rui Feng”), whereby Rui Feng will acquire a controlling interest in Synthesis Energy Systems Investments Inc. (“SESI”), and a wholly owned subsidiary, which owns our interest in the ZZ Joint Venture. Under the terms of the SPA, SESI originally agreed to sell an approximately 61% equity interest to Rui Feng in exchange for $10 million. This amount was to be paid in four installments through December 2016, with the first installment of approximately $1.6 million paid on June 26, 2015. Rui Feng’s second installment payment was due in December 2015 and the third installment was due on May 1, 2016, and neither of these installment payments has been made. With the restructuring of the ZZ Joint Venture discussed below, we do not anticipate that Rui Feng will make any additional installment payments under the SPA. If Rui Feng does not make the required installment payments, we would be entitled to terminate the agreement and Rui Feng would lose future rights to acquire additional interest in SESI and additional positions on the board of SESI. Because Rui Feng has not made additional installment payments, as of September 30, 2016, we owned approximately 88.1% of the ZZ Joint Venture as of September 30, 2016. ZZ Joint Venture Debt Agreements In October 2014, the ZZ Joint Venture entered into a working capital loan agreement (the “ZZ Working Capital Loan”) with Zaozhuang Bank Co., Ltd. (“ZZ Bank”), and received approximately $3.3 million of loan proceeds, with a maturity of September 23, 2015. In September 2015, the Company refinanced the ZZ Working Capital Loan through August 2016 for approximately $3.0 million. This amount was refinanced again in August 2016 through November 2016. In October 2014, the ZZ Joint Venture entered two lines of credit with the ZZ Bank for a total of $3.3 million (collectively, the “ZZ Line of Credit Agreement”). In April 2015, the Company repaid the ZZ Line of Credit Agreement and renewed the agreement for $3.3 million under the same terms for an additional six months. In November 2015, the Company repaid $3.3 million of the ZZ Line of Credit Agreement, and refinanced the ZZ Line of Credit Agreement with the ZZ Bank for $3.7 million which matures in November 2016. Agreement with Xuecheng Energy In August 2016, we announced that we and Xuecheng Energy have entered into a definitive agreement to restructure the ZZ Joint Venture. Additionally, to dovetail with the Chinese government’s widespread initiative to move industry into larger scale, commercial and environmentally beneficial industrial parks, the partners intend to evaluate a new ZZ syngas facility in the Zouwu Industrial Park in Shandong Province. We will retain an approximate nine percent ownership in the ZZ Joint Venture asset, and Xuecheng Energy has agreed to assume all outstanding liabilities of the ZZ Joint Venture, including payables related to the Cooperation Agreement with Xuecheng Energy signed in 2013. The definitive agreement took full effect when the registration with the government was completed on October 31, 2016. During the second quarter of fiscal 2017 we will deconsolidate the ZZ Joint Venture and will account for our investment under the cost method. For purposes of these financial statements, the Company has classified all operations related to the ZZ Joint Venture as discontinued operations and have classified all assets and liabilities related to the ZZ Joint Venture as assets/liabilities of discontinued operations. Prior period results have been adjusted to reflect the current presentation. Yima Joint Ventures In August 2009, we entered into amended joint venture contracts with the Yima Coal Industry Group Company (“Yima”), replacing the prior joint venture contracts entered into in October 2008 and April 2009. The joint ventures were formed for each of the gasification, methanol/methanol protein production, and utility island components of the plant (collectively the “Yima Joint Ventures”). The amended joint venture contracts provide that: • We and Yima contribute equity of 25% and 75%, respectively, to the Yima Joint Ventures; • Yima will guarantee the repayment of loans from third party lenders for 50% of the project’s cost and, if debt financing is not available, Yima is obligated to provide debt financing via shareholder loans to the project until the project is able to secure third-party debt financing; and • Yima will supply coal to the project from a mine located in close proximity to the project at a preferential price. We own a 25% interest in each joint venture and Yima owns a 75% interest. Notwithstanding this, in connection with an expansion of the project, we have the option to contribute a greater percentage of capital for the expansion, such that as a result, we could expand through contributions, at our election, up to a 49% ownership interest in the Yima Joint Ventures. The remaining capital for the project has been funded with project debt obtained by the Yima Joint Ventures. Yima agreed to guarantee the project debt in order to secure debt financing from domestic Chinese banking sources. We have agreed to pledge to Yima our ownership interests in the joint ventures as security for our obligations under any project guarantee. In the event that the necessary additional debt financing is not obtained, Yima has agreed to provide a loan to the joint ventures to satisfy the remaining capital needs of the project with terms comparable to current market rates at the time of the loan. Under the terms of the joint venture agreements, the Yima Joint Ventures are to be governed by a board of directors consisting of eight directors, two of whom were appointed by us and six of whom were appointed by Yima. The joint ventures also have officers that are nominated by us, Yima and/or the board of directors pursuant to the terms of the joint venture contracts. We and Yima shall share the profits, and bear the risks and losses, of the joint ventures in proportion to our respective ownership interests. The term of the joint venture shall commence upon each joint venture company obtaining its business operating license and shall end 30 years after commercial operation of the plant. We believe there is a consistent pattern of the Yima Joint Venture management not demonstrating an understanding of the methanol facility operations and not sourcing available expertise in China to improve the overall operations. We have witnessed operation of the gasifier systems at Yima with design and operating parameter deviations from our existing technology recommendations. We continue to experience a limited ability to influence the Yima Joint Ventures’ operating performance. As a result of the issues noted above, Yima restructured the management of the Yima Joint Ventures under the direction of the Henan Coal Gasification Company (“Henan”), which is an affiliated company reporting directly to Henan Coal and Energy Group Companies. The ownership of the Yima Joint Ventures is unchanged. Henan currently has full authority of day to day operational and personnel decisions at the Yima Joint Venture. Since 2014, we have accounted for this joint venture under the cost method of accounting. Our conclusion to account for this joint venture under this methodology is based upon our lack of significant influence in the Yima Joint Venture. The lack of significant influence is determined based upon our interactions with the Yima Joint Ventures related to the start-up and operations and due to various other circumstances including limited participation in operating and financial policymaking processes and our limited ability to influence decisions which contribute to the financial success of the Yima Joint Ventures. Current Yima Operating Description Despite initiating methanol production in December 2012, the Yima Joint Ventures’ plant continued its construction through the beginning of 2016. In March 2016, the Yima Joint Ventures completed the required performance testing of the SGT systems and successfully issued its Performance Test Certificate. Because of the extended construction period, the plant recently faced increasing regulatory scrutiny from the environmental and safety bureaus. In June 2016, the local environmental bureau requested that the plant temporarily halt operations to address certain issues identified by the environmental bureau. After the plant shut down operations, the Yima plant experienced an accident during maintenance activities that were unrelated to the gasification units. The Yima Joint Ventures have been working with both the environmental and safety bureaus and is anticipated to return to operations in November 2016. In 2009, the project was approved as three separate joint ventures. The approval for the original joint ventures was for the production of methanol protein, and methanol by-product. This has impacted the ability of the plant to sell pure methanol on the open market and has been an impediment to receive the permanent safety operating permit. To resolve these issues, during the quarter ended June 30, 2016, the Yima Joint Ventures commenced an organizational restructuring to better streamline the operations of the Joint Ventures. This restructuring effort was a multi-step process, including first obtaining the operating license to sell methanol by combining the three joint ventures into a single operating entity, and finally obtaining the permanent safety and environmental permits. The Yima Joint Ventures received the operating permit in July 2016, and have made continued progress in completing the remaining items. The Yima Joint Ventures also are experiencing certain liquidity concerns with a series of third party bank notes due prior to the end of December 2016. Yima, the 75% shareholder of the Yima Joint Ventures, has been routinely providing liquidity to the Yima Joint Ventures in the form of shareholder loans and during the first quarter Yima successfully refinanced, for one full year through October 2017, certain amounts which were to become due in October 2016. The Yima Joint Ventures are currently in discussion with the impacted third party lenders to seek additional extensions, refinancing or other alternative arrangements to avoid a default by the Yima Joint Ventures. While we believe Yima will continue to provide additional liquidity to the Yima Joint Ventures until the project is operating and producing income, we can make no assurances that Yima will continue to do this or on the outcome of the above mentioned negotiations. Because of the situations detailed above, our management evaluated the current conditions of the Yima Joint Ventures to determine whether an other than temporary decrease in value had occurred for the year ended June 30, 2016. Management determined that the decrease in value due to the shutdown and liquidity situation were other than temporary in nature and therefore management conducted an impairment analysis utilizing a discounted cash flow fair market valuation with the assistance of a third party valuation expert. In this valuation, significant unobservable inputs were used to calculate the fair value of the investment. The valuation led to the conclusion that the investment in the Yima Joint Ventures was impaired as of June 30, 2016, and accordingly, we recorded an $8.6 million impairment for the fiscal year ended June 30, 2016. Management determined that there was not an other than temporary impairment of value of our Yima investment during the quarter ended September 30, 2016. The carrying value of our Yima investment was approximately $26.2 million as of both September 30, 2016 and June 30, 2016. We continue to monitor the Yima Joint Ventures and could take an additional impairment in the future if operating conditions do not meet our current expectations, or if the liquidity situation worsens. Tianwo-SES Clean Energy Technologies Limited (the “Tianwo-SES Joint Venture”) Joint Venture Contract In February 2014, SES Asia Technologies Limited, one of our wholly owned subsidiaries, entered into a Joint Venture Contract (the “JV Contract”) with Zhangjiagang Chemical Machinery Co., Ltd., which subsequently changed its legal name to Suzhou Thvow Technology Co. Ltd. (“STT”), to form the Tianwo-SES Joint Venture. The purpose of the Tianwo-SES Joint Venture is to establish the Company’s gasification technology as the leading gasification technology in the Tianwo-SES Joint Venture territory (which is China, Indonesia, the Philippines, Vietnam, Mongolia and Malaysia) by becoming a leading provider of proprietary equipment and engineering services for the technology. The scope of the Tianwo-SES Joint Venture is to market and license our gasification technology via project sublicenses; procurement and sale of proprietary equipment and services; coal testing; and engineering, procurement and research and development related to the technology. STT contributed 53.8 million yuan in April 2014 and was required to contribute an additional 46.2 million yuan within two years of such date for a total contribution of 100 million yuan (approximately $15.0 million) in cash to the Tianwo-SES Joint Venture, and owns 65% of the Tianwo-SES Joint Venture. We have contributed certain exclusive technology sub-licensing rights into the Tianwo-SES Joint Venture for the territory pursuant to the terms of a Technology Usage and Contribution Agreement (the “TUCA”) entered into among the Tianwo-SES Joint Venture, STT and us on the same date and further described in more detail below. We own 35% of the Tianwo-SES Joint Venture. Under the JV Contract, neither party may transfer their interests in the Tianwo-SES Joint Venture without first offering such interests to the other party. The JV Contract also includes a non-competition provision which requires that the Tianwo-SES Joint Venture be the exclusive legal entity within the Tianwo-SES Joint Venture territory for the marketing and sale of any gasification technology or related equipment that utilizes low quality coal feedstock. Notwithstanding this, STT has the right to manufacture and sell gasification equipment outside the scope of the Tianwo-SES Joint Venture within the Tianwo-SES Joint Venture territory. In addition, we have the right to develop and invest equity in projects outside of the Tianwo-SES Joint Venture within the Tianwo-SES Joint Venture territory. After the termination of the Tianwo-SES Joint Venture, STT must obtain written consent from us to market development of any gasification technology that utilizes low quality coal feedstock in the Tianwo-SES Joint Venture territory. The JV Contract may be terminated upon, among other things: (i) a material breach of the JV Contract which is not cured, (ii) a violation of the TUCA, (iii) the failure to obtain positive net income within 24 months of establishing the Tianwo-SES Joint Venture or (iv) mutual agreement of the parties. TUCA Pursuant to the TUCA, we have contributed to the Tianwo-SES Joint Venture certain exclusive rights to our gasification technology in the Tianwo-SES Joint Venture territory, including the right to: (i) grant site specific project sub-licenses to third parties; (ii) use our marks for proprietary equipment and services; (iii) engineer and/or design processes that utilize our technology or our other intellectual property; (iv) provide engineering and design services for joint venture projects and (v) take over the development of projects in the Tianwo-SES Joint Venture territory that have previously been developed by us and our affiliates. The Tianwo-SES Joint Venture will be the exclusive operational entity for business relating to our technology in the Tianwo-SES Joint Venture territory. If the Tianwo-SES Joint Venture loses exclusivity due to a breach by us, STT is to be compensated for direct losses and all lost project profits. We will also provide training for technical personnel of the Tianwo-SES Joint Venture through the second anniversary of the establishment of the Tianwo-SES Joint Venture. We will also provide a review of engineering works for the Tianwo-SES Joint Venture. If modifications are suggested by us and not made, the Tianwo-SES Joint Venture bears the liability resulting from such failure. If we suggest modifications and there is still liability resulting from the engineering work, it is our liability. Any party making, whether patentable or not, improvements relating to our technology after the establishment of the Tianwo-SES Joint Venture, grants to the other party an irrevocable, non-exclusive, royalty free right to use or license such improvements and agrees to make such improvements available to us free of charge. All such improvements shall become part of our technology and both parties shall have the same rights, licenses and obligations with respect to the improvement as contemplated by the TUCA. The Tianwo-SES Joint Venture is required to establish an Intellectual Property Committee, with two representatives from the Tianwo-SES Joint Venture and two from SES This Committee shall review all improvements and protection measures and recommend actions to be taken by the Tianwo-SES Joint Venture in furtherance thereof. Notwithstanding this, each party is entitled to take actions on its own to protect intellectual property rights. As of September 30, 2016 that committee was still yet to be formed. Any breach of or default under the TUCA which is not cured on notice entitles the non-breaching party to terminate. The Tianwo-SES Joint Venture indemnifies us for misuse of our technology or infringement of our technology upon rights of any third party. Current relationship with STT The second capital contribution from STT of 46.2 million yuan (approximately $6.9 million) was not paid in April 2016 as required by our initial JV Contract and currently remains outstanding. We notified STT in writing to determine the status of the payment, and other contractual breaches related to the TUCA, and the JV Contract, and have continued to follow up on this issue. Should the payment or the other breaches of the TUCA not be cured, we will consider any and all legal actions to resolve these issues. Tianwo-SES Joint Venture unaudited financial data The following table presents summarized financial information for the Tianwo-SES Joint Venture (in thousands): Income Statement data: Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Revenue $ 2,370 $ 4,098 Operating loss (1,558 ) (551 ) Net loss (1,558 ) (551 ) Balance sheet data: As of September 30, 2016 As of June 30, 2016 Current assets $ 10,859 $ 9,856 Noncurrent assets 7,112 7,366 Current liabilities 7,114 4,719 Noncurrent liabilities — — Equity 10,857 12,503 The Tianwo-SES Joint Venture is accounted for under the equity method. The Company’s capital contribution in the formation of the venture was the TUCA, which is an intangible asset. As such, the Company did not record a carrying value at the inception of the venture. Under the equity method of accounting, losses in the venture are not recorded if the losses cause the carrying value to be negative and there is no requirement of the Company to contribute additional capital. As the Company is not required to contribute additional capital, the Company is not recognizing losses in the venture, as this would cause the carrying value to be negative. Had the Company recognized its share of the losses related to the venture, the Company would have recognized losses of approximately $0.5 million and $0.2 million for the three months ended September 30, 2016 and 2015, respectively, and $1.9 million from inception to date. CESI-SES Investment Platforms In March 2016, we entered a strategic Joint Project Development and Investment Agreement with China Environment State Investment Co., Ltd. (“CESI”). CESI is a state-owned enterprise established in Beijing under the China Ministry of Environmental Protection that is charged with, and funded to, develop and invest in the energy conservation and environmental protection industry. We and CESI have agreed to develop, jointly invest, and build a total of no less than 20 projects using our gasification technology over the next five years. Further, we and CESI are targeting to bring a minimum of two projects through development within 12 months. Equity in the projects for investment by us and CESI is expected to be owned 51% by CESI, and 49% by us through our wholly owned Hong Kong subsidiary, SES Clean Energy Investment Holdings Limited. We and CESI have initially identified a pipeline of potential projects. In July 2016, CESI’s executive management changed related to a restructuring agreement and the entrance of a new shareholders. We have been in contact with the new management team and we have been told that CESI will evaluate the economics of the projects discussed above and will make its decision to continue in the projects based upon their views of the projects’ economics. If CESI were to not continue to participate in these projects, it could cause delays as we seek replacement partners and alternative funding sources. We can provide no assurances as to the level of involvement which CESI will have in the projects in the future but we believe that we will be able to find a replacement partner should CESI decide to not participate. Dongying Projects In May 2016, we announced the first of our projects on the platform discussed above. The project will use SGT to produce lower-cost hydrogen in the Lijin County Binhai New District industrial park in Dongying, Shandong Province. The build-out consists of three projects completed in phases with an estimated preliminary total investment to be approximately 2 billion yuan ($299.5 million). In June 2016, the Company signed an investment and cooperation agreement with Shandong Dongying Hekou District Government. The project will use SGT to produce lower-cost hydrogen needed for clean fuels production by refineries at the Hekou Blue Economy Industrial Park Project in Dongying City, Shandong Province. The build-out consists of multiple phases with an estimated preliminary total investment to be approximately 550 million yuan ($82.4 million). Australian Future Energy Pty Ltd ("AFE”) & Batchfire Resources Pty Ltd ("Batchfire”) In May 2015, we established AFE together with Australian company Ambre Investments PTY Limited (“Ambre”). AFE is a development stage Australian company which is seeking to deploy SGT into projects in Australia where AFE or its affiliates would own equity and to secure ownership positions in low quality, low cost, coal resources such as unmarketable coal generally produced from coal mining operations in order to secure a long-term source of feedstock for the projects that would utilize SGT. In forming AFE, we contributed conditional exclusive access to SGT limited to Australia through a master technology agreement in return for an ownership interest in AFE. In addition, we contributed certain early stage engineering support for AFE’s business development through an engineering consulting agreement while Ambre contributed cash for the early stage business development. In connection with this agreement, in fiscal year 2016, we recognized approximately $0.2 million in Related party consulting services. At September 30, 2016, we owned approximately 37% of AFE. Because of the early stage business development expenses incurred by AFE, the carrying value of AFE was zero as of both September 30, 2016 and June 30, 2016. Under the equity method of accounting, losses in the venture are not recorded if the losses cause the carrying value to be negative and there is no requirement of the Company to contribute additional capital. Had the Company recognized its share of the losses related to the venture, the Company would have recognized additional losses of approximately $84,000 from inception to date. Because of its early stage business development efforts associated with the Callide coal mine in Central Queensland, Australia, AFE created Batchfire. Batchfire was a spin-off company which was distributed to the shareholders of AFE in December 2015. Batchfire is registered in Australia and was formed for the purpose of purchasing the Callide thermal coal mine from Anglo-American plc (“Anglo-American”). On October 31, 2016, Batchfire announced that it had completed its acquisition of the Callide thermal coal mine from Anglo American. The Callide mine is a mature and significantly sized coal producer with substantial recoverable thermal coal reserves. After the transaction on October 31, 2016 the Company owns an approximately 11% interest in Batchfire. Because of the nature of our contribution, our carrying value of Batchfire was zero as of both September 30, 2016 and June 30, 2016. Batchfire intends to operate the Callide mine and implement its planned improvements to increase output from the mine and lower the mining costs. AFE is currently evaluating project opportunities that would use SGT and utilize the unmarketable coal from the Callide mine to responsibly manufacture energy or chemical products.

Note 3 - Discontinued Operation

Note 3 - Discontinued Operation	3 Months Ended
Note 3 - Discontinued Operation	Sep. 30, 2016
Notes to Financial Statements
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]	Note 3- Discontinued Operation As discussed in Note 2 above, in August 2016, the Company reached a definitive agreement with Xuecheng Energy to reduce its ownership in the ZZ Joint Venture to approximately 9%. The definitive agreement took full effect in October 2016, when the government approved our transfer. The ZZ Joint Venture will be deconsolidated during the second quarter of fiscal 2017. The Company reported the operations of the ZZ Joint Venture as discontinued operation on the Company’s consolidated financial statements and classified the related assets and liabilities as assets/liabilities of discontinued operations. The following table provides the results of operations from discontinued operations, the ZZ Joint Venture, for the three months ended September 30, 2016, and 2015. Three Months Ended September 30, 2016 2015 Revenue: Product sales and other –related parties $ — 3,075 Related party consulting services 168 77 Total revenue from discontinued operation 168 3,152 Net loss from discontinued operations to SES stockholders (380 ) (1,579 ) Net comprehensive loss from discontinued operations to SES stockholders (355 ) (2,092 ) The carry value of the major categories of assets and liabilities of the ZZ Joint Venture classified as assets/liabilities of discontinued operations on the Company’s balance sheet as of September 30, 2016 and June 30, 2016 were as follows: As of September 30, 2016 As of June 30, 2016 ASSETS Current assets: Cash and cash equivalents $ 10 $ 12 Certificate of deposit- restricted 2,248 2,262 Prepaid expenses and other currents assets 26 329 Inventory 53 79 Total current assets of discontinued operation 2,337 2,682 Property, plant and equipment, net 8,611 8,948 Other long-term assets 1,055 1,032 Total assets of discontinued operations 12,003 12,662 LIABILITIES AND EQUITY Current liabilities: Accrued expenses and accounts payable 1,314 1,698 Accrued expenses and accounts payable- related party 4,942 4,853 Line of credit 3,746 3,770 Short-term bank loan 2,995 3,016 Total Current liabilities of discontinued operations 12,997 13,337 The following table provides the major categories of cash flows from discontinued operations, our ZZ Joint Venture, for the three months ended September 30, 2016 and 2015. Three Months Ended September 30, 2016 2015 Cash flows from operating activities: Depreciation 155 166 Amortization 2 2 Cash flows from investing activities: Capital expenditures (4 ) (9 ) There are no significant non cash transactions related to discontinued operations for both the three months ended September 30, 2016 and 2015.

Note 4 - GTI License Agreement

Note 4 - GTI License Agreement	3 Months Ended
Note 4 - GTI License Agreement	Sep. 30, 2016
Notes to Financial Statements
Amended and Restated License Agreement Disclosure [Text Block]	Note 4 – GTI License Agreement In November 2009, we entered into an Amended and Restated License Agreement, or the GTI Agreement, with GTI, replacing the Amended and Restated License Agreement between us and GTI dated August 31, 2006, as amended. Under the GTI Agreement, we maintain our exclusive worldwide right to license the U-GAS ® ® In order to sublicense any U-GAS ® For each U-GAS ® We are required to make an annual payment to GTI for each year of the term, with such annual payment due by the last day of January of the following year; provided, however, that we are entitled to deduct all royalties paid to GTI in a given year under the GTI Agreement from this amount, and if such royalties exceed the annual payment amount in a given year, we are not required to make the annual payment. We must also provide GTI with a copy of each contract that we enter into relating to a U-GAS ® For a period of ten years, we and GTI are restricted from disclosing any confidential information (as defined in the GTI Agreement) to any person other than employees of affiliates or contractors who are required to deal with such information, and such persons will be bound by the confidentiality provisions of the GTI Agreement. We have further indemnified GTI and its affiliates from any liability or loss resulting from unauthorized disclosure or use of any confidential information that we receive. While the core of our technology is the U-GAS ®

Note 5 - Equity

Note 5 - Equity	3 Months Ended
Note 5 - Equity	Sep. 30, 2016
Notes to Financial Statements
Shareholders' Equity and Share-based Payments [Text Block]	Note 5 – Equity Preferred Stock At the Annual Meeting of Stockholders of the Company on June 30, 2015, the Company’s stockholders approved an amendment to the Company’s certificate of incorporation to authorize a class of preferred stock, consisting of 20.0 million authorized shares, which may be issued in one or more series, with such rights, preferences, privileges and restrictions as shall be fixed by the Company’s board of directors. No shares of preferred stock have been issued or outstanding since approved by the stockholders. Stock-Based Compensation As of September 30, 2016, the Company has outstanding stock option and restricted stock awards granted under the Company’s 2015 Long Term Incentive Plan (the “2015 Incentive Plan”) and Amended and Restated 2005 Incentive Plan (the “2005 Incentive Plan”), under which the Company’s stockholders have authorized a total of 21.0 million shares of common stock for awards under the 2015 and 2005 Incentive Plan. The 2005 Incentive Plan expired as of November 7, 2015 and no future awards will be made thereunder. As of September 30, 2016, there were approximately 7.3 million shares authorized for future issuance pursuant to the 2015 Incentive Plan. Under the 2015 Incentive Plan, the Company may grant incentive and non-qualified stock options, stock appreciation rights, restricted stock units and other stock-based awards to officers, directors, employees and non-employees. Stock option awards generally vest ratably over a one to four year period and expire ten years after the date of grant. Restricted stock activity during the three months ended September 30, 2016 was as follows: Restricted stock Outstanding at June 30, 2016 275,096 Granted — Vested (20,089 ) Forfeited — Outstanding at September 30, 2016 255,007 Stock option activity during the three months ended September 30, 2016 was as follows: Shares of Common Stock Options Outstanding at June 30, 2016 10,215,447 Granted — Exercised (40,000 ) Forfeited — Outstanding at September 30, 2016 10,175,447 Exercisable at September 30, 2016 9,431,510 Stock warrants activity during the three months ended September 30, 2016 were as follows: Shares of Common Warrants Outstanding at June 30, 2016 9,914,832 Granted — Exercised — Forfeited — Outstanding at September 30, 2016 9,914,832 Exercisable at September 30, 2016 9,539,832 The Company recognizes the stock-based expense related to the 2005 and 2015 Incentive Plan awards and warrants over the requisite service period. The following table presents stock based compensation expense attributable to stock option awards issued under the 2005 and 2015 Incentive Plan and attributable to warrants issued to investors and consulting firms as compensation (in thousands): Three Months Ended September 30, 2016 2015 2005 and 2015 Incentive Plans $ 199 $ 172 Warrants 58 959 Total stock-based expense $ 257 $ 1,131

Note 6 - Net Loss Per Share

Note 6 - Net Loss Per Share	3 Months Ended
Note 6 - Net Loss Per Share	Sep. 30, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 6 – Net Loss Per Share Historical net loss per share of common stock is computed using the weighted average number of shares of common stock outstanding. Basic loss per share, for both continuing and discontinuing operations, excludes dilution and is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding for the period. Stock options, warrants and unvested restricted stock are the only potential dilutive share equivalents the Company had outstanding for the periods presented. For the three months ended September 30, 2016 and 2015, options and warrants to purchase common stock excluded from the computation of diluted earnings per share, for both continuing and discontinuing operations, as their effect would have been anti-dilutive as the Company incurred net losses during those periods, amounted to 20.3 million and 17. 9 million, respectively.

Note 7 - Risks and Uncertaintie

Note 7 - Risks and Uncertainties	3 Months Ended
Note 7 - Risks and Uncertainties	Sep. 30, 2016
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	Note 7 – Risks and Uncertainties As of September 30, 2016, we had $11.1 million in cash and cash equivalents. We currently plan to use our available cash for: (i) commercializing our technology and securing orders and associated tasks with developing our business with a prime focus on the markets of syngas for direct replacement of natural gas, syngas for producing substitute natural gas and power; (ii) securing new partners for our technology business; (iii) technology product advancement for power applications and industrial syngas; (iv) general and administrative expenses; and (v) working capital and other general corporate purposes. The actual allocation and timing of these expenditures will be dependent on various factors, including changes in our strategic relationships, commodity prices and industry conditions, and other factors that the Company cannot currently predict. In particular, any future decrease in economic activity in China or in other regions of the world in which the Company may in the future do business could significantly and adversely affect the Company’s results of operations and financial condition. Operating cash flows from the Company’s joint venture operating projects can be positively or negatively impacted by changes in coal and methanol prices. These are commodities where market pricing is often volatile in nature. Any future decrease in economic activity in China, or in other regions of the world, in which the Company may in the future do business, could significantly and adversely affect its results of operations and financial condition in a number of other ways. Any decline in economic conditions may reduce the demand for prices from the products from our plants, thus the Company’s ability to finance and develop its existing projects, commence any new projects and sell its products could be adversely impacted. The Company’s future success will depend on its relationships with its joint venture partners and any other strategic relationships that the Company may enter into. The Company can provide no assurances that it will satisfy the conditions required to maintain these relationships under existing agreements or that it can prevent the termination of these agreements. The Company also cannot provide assurances that it will be able to enter into relationships with future strategic partners on acceptable terms, including partnering its technology vertical. Further, the Company cannot provide assurances that its joint venture partners, including in the Yima Joint Ventures and the Tianwo-SES Joint Venture, will grow the joint venture or effectively meet their development objectives. Joint ventures typically involve a number of risks and present financial, managerial and operational challenges, including the existence of unknown potential disputes, liabilities or contingencies that arise after entering into the joint venture related to the counterparties to such joint ventures, with whom the Company shares control. The Company could experience financial or other setbacks if transactions encounter unanticipated problems due to challenges, including problems related to execution or integration. Continued economic uncertainty in China could also cause delays or make financing of operations more difficult. The Company does not currently have all of the financial and human resources to fully develop and execute on all of its other business opportunities; however, the Company intends to finance their development through paid services, technology access fees, equity and debt financings and by securing financial and strategic partners focused on development of these opportunities. The Company can make no assurances that its business operations will provide it with sufficient cash flows to continue its operations. The Company may need to raise additional capital through equity and debt financing for any new ventures that are developed, to support its existing projects and possible expansions thereof and for its corporate general and administrative expenses. The Company is considering a full range of financing options in order to create the most value in the context of the increasing interest the Company is witnessing in its proprietary technology. The Company cannot provide any assurance that any financing will be available to it in the future on acceptable terms or at all. Any such financing could be dilutive to its existing stockholders. If the Company cannot raise required funds on acceptable terms, it may not be able to, among other things, (i) maintain its general and administrative expenses at current levels including retention of key personnel and consultants; (ii) successfully develop its licensing and related service businesses; (iii) negotiate and enter into new gasification plant development contracts and licensing agreements; (iv) make additional capital contributions to its joint ventures; (v) fund certain obligations as they become due; (vi) respond to competitive pressures or unanticipated capital requirements; or (vii) repay its indebtedness. Fluctuations in exchange rates can have a material impact on the Company’s costs of construction, operating expenses and the realization of revenue from the sale of commodities. The Company cannot be assured that it will be able to offset any such fluctuations and any failure to do so could have a material adverse effect on the Company’s business, financial condition and results of operations. In addition, the Company’s financial statements are expressed in U.S. dollars and will be negatively affected if foreign currencies depreciate relative to the U.S. dollar as has happened recently with the yuan. In addition, the Company’s currency exchange losses may be magnified by exchange control regulations in China or other countries that restrict our ability to convert into U.S. dollars. We own a 25% interest in the Yima Joint Ventures, however, as discussed in Note 2, we account for our investment at cost. While the Yima Joint Ventures commenced initial production in December 2012, the Yima Joint Ventures completed the required performance testing of the plants and received its Performance Test Certificate in March 2016 due to on-going modifications and construction delays. The formal acceptance of the test results was an important step for the plant. In June 2016, the local environmental bureau requested that the plant halt operations due to certain issues identified by the bureau. The Yima Joint Ventures have been working with the bureau to resolve the issues, complete its internal restructuring, and recommence operations during November 2016. The Yima Joint Ventures have also commenced an organizational restructuring to better streamline operations and allow the Yima Joint Ventures to obtain permanent safety and environmental permits. In July 2016 the Yima Joint Ventures obtained its own business license. Prior to this point the Yima Joint Ventures operated under a business license from its parent company. The Yima Joint Ventures are experiencing certain liquidity concerns related to a series of third party notes which are due prior to December 31, 2016 and are currently in discussions with the lenders to seek extensions, refinancing or other alternative arrangements to avoid default. The Company can make no assurances that the plants will recommence operations as expected, that they will be able to successfully complete the organizational restructuring required to obtain the permanent safety and environmental permits for the plants or that they will be able to resolve its liquidity concerns. We continue to monitor the Yima Joint Ventures and could take an additional impairment in the future if operating conditions do not meet our current expectations, or if the liquidity situation worsens. The Company is subject to concentration of credit risk with respect to our cash and cash equivalents, which it attempts to minimize by maintaining cash and cash equivalents with major high credit quality financial institutions. At times, the Company’s cash balances in a particular financial institution exceed limits that are insured by the U.S. Federal Deposit Insurance Corporation or equivalent agencies in foreign countries and jurisdictions such as Hong Kong. As of September 30, 2016 the Company had $11.0 million in cash and cash equivalents (of which $10.6 million is located in the United States), and $2.3 million in a restricted certificate of deposit in Chinese based bank accounts as part of our assets of discontinued operations. While the Company is generally able to pay intercompany obligations from these bank accounts, there are more stringent requirements on the distribution of earnings.

Note 8 - Segment Information

Note 8 - Segment Information	3 Months Ended
Note 8 - Segment Information	Sep. 30, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 8 – Segment Information The Company’s reportable operating segments have been determined in accordance with the Company’s internal management reporting structure and include SES China, Technology Licensing and Related Services, and Corporate. The SES China reporting segment includes all of the assets and operations and related administrative costs for China including initial closing costs relating to our joint ventures. The Technology Licensing and Related Services reporting segment includes all of the Company’s current operating activities outside of China. The Corporate reporting segment includes the executive and administrative expenses of the corporate office in Houston. The Company evaluates performance based upon several factors, of which a primary financial measure is segment operating income or loss. The following table presents statements of continuing operations data and assets by segment (in thousands): Three Months Ended September 30, 2016 2015 Revenue: SES China $ — $ — Technology licensing and related services — 247 Corporate & other — — Total revenue $ — $ 247 Depreciation and amortization: SES China $ — $ 6 Technology licensing and related services 39 51 Corporate & other — — Total depreciation and amortization $ 39 $ 57 Operating loss: SES China $ (486 ) $ (571 ) Technology licensing and related services (649 ) (244 ) Corporate & other (1,493 ) (2,268 ) Total operating loss $ (2,628 ) $ (3,083 ) As of 2016 As of June 30, 2016 Assets: SES China $ 36,423 $ 37,188 Technology licensing and related services 830 892 Corporate & other 14,819 17,101 Total assets $ 52,072 $ 55,181

Note 9 - Commitments and Contin

Note 9 - Commitments and Contingencies	3 Months Ended
Note 9 - Commitments and Contingencies	Sep. 30, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 9 — Commitments and Contingencies Litigation The Company is currently not a party to any legal proceedings. Operating leases In February 2016, the Company extended its corporate office lease term for an additional 18 months ending December 31, 2017 with rental payments of approximately $12,000 per month (monthly rent changes depending on actual utility usage each month). Governmental and Environmental Regulation The Company’s operations are subject to stringent federal, state and local laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection. Numerous governmental agencies, such as the U.S. Environmental Protection Agency, and various Chinese authorities, issue regulations to implement and enforce such laws, which often require difficult and costly compliance measures that carry substantial administrative, civil and criminal penalties or may result in injunctive relief for failure to comply. These laws and regulations may require the acquisition of a permit before operations at a facility commence, restrict the types, quantities and concentrations of various substances that can be released into the environment in connection with such activities, limit or prohibit construction activities on certain lands lying within wilderness, wetlands, ecologically sensitive and other protected areas, and impose substantial liabilities for pollution resulting from our operations. The Company believes that it is in substantial compliance with current applicable environmental laws and regulations and it has not experienced any material adverse effect from non-compliance with these environmental requirements.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	(b) Basis of presentation and principles of consolidation The consolidated financial statements for the periods presented are unaudited. Operating results for the three month period ended September 30, 2016 are not necessarily indicative of results to be expected for the fiscal year ending June 30, 2017. The consolidated financial statements are in U.S. dollars. Non-controlling interests in consolidated subsidiaries in the consolidated balance sheets represents minority stockholders’ proportionate share of the equity in such subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto reported in the Company’s Annual Report on Form 10-K for the year ended June 30, 2016. Significant accounting policies that are new or updated from those presented in the Company’s Annual Report on Form 10-K for the year ended June 30, 2016 are included below. The consolidated financial statements have been prepared in accordance with the rules of the United States Securities and Exchange Commission (“SEC”) for interim financial statements and do not include all annual disclosures required by generally accepted accounting principles in the United States.
Consolidation, Variable Interest Entity, Policy [Policy Text Block]	(c) Accounting for Variable Interest Entities (“VIEs”) and Financial Statement Consolidation Criteria The joint ventures which the Company enters into may be considered VIEs. The Company consolidates all VIEs where it is the primary beneficiary. This determination is made at the inception of the Company’s involvement with the VIE and is continuously assessed. The Company considers qualitative factors and forms a conclusion that the Company, or another interest holder, has a controlling financial interest in the VIE and, if so, whether it is the primary beneficiary. In order to determine the primary beneficiary, the Company considers who has the power to direct activities of the VIE that most significantly impacts the VIE’s performance and has an obligation to absorb losses from or the right to receive benefits of the VIE that could be significant to the VIE. The Company does not consolidate VIEs where it is not the primary beneficiary. The Company accounts for these unconsolidated VIEs using either the equity method of accounting if the Company has significant influence but not control, or the cost method of accounting and includes its net investment on its consolidated balance sheets. Under the equity method, the Company’s equity interest in the net income or loss from its unconsolidated VIEs is recorded in non-operating income (expense) on a net basis on its consolidated statements of operations. In the event of a change in ownership, any gain or loss resulting from an investee share issuance is recorded in earnings. Controlling interest is determined by majority ownership interest and the ability to unilaterally direct or cause the direction of management and policies of an entity after considering any third-party participatory rights. The Company has determined that the ZZ Joint Venture is a VIE and has determined that the Company is the primary beneficiary. In making the initial determination, the Company considered, among other items, the change in profit distribution between the Company and Xuejiao (as defined in Note 2 – Current Projects) after 20 years. The expected negative variability in the fair value of the ZZ Joint Venture’s net assets was considered to be greater during the first 20 years of the ZZ Joint Venture’s life, which coincided with our original 95% profit/loss allocation, versus the latter 30 years in which the Company’s profit/loss allocation would be reduced to 10%. As the result of an amendment to the ZZ Joint Venture agreement in 2010, the profit distribution percentages will remain in place after the first 20 years, providing further support to the determination that the Company is the primary beneficiary. As noted in Note 2, in August 2016, the Compoany announced that it and Shandong Hai Hua Xecheng Energy (“Xuecheng Energy”) entered into a Definitive Agreement to restructure the ZZ Joint Venture. The agreement took full effect when the registration with the government was completed on October 31, 2016. During the second quarter of fiscal 2017, the Company will deconsolidate the ZZ Joint Venture and will account for our investment under the cost method. For purposes of these financial statement, the Company has classified all operations related to the ZZ Joint Venture as discontinued operations and have classified all assets and liabilities related to the ZZ Joint Venture as assets/liabilities from discontinued operations. Prior period results have been adjusted to reflect the current presentation. The Company has determined that the Yima Joint Ventures are VIEs and that Yima, the joint venture partner, is the primary beneficiary since Yima has a 75% ownership interest in the Yima Joint Ventures and has the power to direct the activities of the VIE that most significantly influence the VIE’s performance. The carrying value of our investment in the Yima Joint Ventures at both September 30, 2016 and June 30, 2016 was approximately $26.2 million. The Company has determined that the Tianwo-SES Joint Venture (as defined in Note 2 – Current Projects – Tianwo-SES Joint Venture) is a VIE and that STT, the joint venture partner, is the primary beneficiary since SST has a 65% ownership interest in the Tianwo-SES Joint Venture and has the power to direct the activities of the Tianwo-SES Joint Venture that most significantly influence its performance. Because of losses sustained by the Tianwo-SES Joint Venture, the carrying value of this joint venture is zero at both September 30, 2016 and June 30, 2016.
Interest in Unincorporated Joint Ventures or Partnerships, Policy [Policy Text Block]	(d) Investment in joint ventures We have equity investments in various privately held entities. We account for these investments either under the equity method or cost method of accounting depending on our ownership interest and level of influence. Investments accounted for under the equity method are recorded based upon the amount of our investment and adjusted each period for our share of the investee's income or loss. Investments are reviewed for changes in circumstance or the occurrence of events that suggest an other than temporary event where our investment may not be recoverable.
Revenue Recognition, Policy [Policy Text Block]	(e) Revenue Recognition Revenue from sales of products, which has included the capacity fee and energy fee earned at the ZZ Joint Venture plant includes sale of methanol under the ZZ Cooperation Agreement, and sales of equipment are recognized when the following elements are satisfied: (i) there are no uncertainties regarding customer acceptance; (ii) there is persuasive evidence that an agreement exists; (iii) delivery has occurred; (iv) the sales price is fixed or determinable; and (v) collectability is reasonably assured. The Company records revenue net of any applicable value-added taxes. Technology licensing revenue is typically received over the course of a project’s development as milestones are met. The Company may receive upfront licensing fee payments when a license agreement is entered into. Typically, the majority of a license fee is due once project financing and equipment installation occur. The Company recognizes license fees for the use of its gasification systems as revenue when the license fees become due and payable under the license agreement, subject to the deferral of the amount of the performance guarantee. Fees earned for engineering services, such as services that relate to integrating our technology to a customer’s project, are recognized using the percentage-of-completion method.
Fair Value of Financial Instruments, Policy [Policy Text Block]	(f) Fair value measurements Accounting standards require that fair value measurements be classified and disclosed in one of the following categories: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The Company’s financial assets and liabilities are classified based on the lowest level of input that is significant for the fair value measurement. The following table summarizes the assets of the Company measured at fair value on a recurring basis as of September 30, 2016 and June 30, 2016 (in thousands): September 30, 2016 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Certificates of Deposit- Restricted — 2,248 (2) — 2,248 Money Market Funds 10,509 (3) — — 10,509 June 30, 2016 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Certificates of Deposit- Restricted — 2,262 (2) — 2,262 Money Market Funds 12,654 (3) — — 12,654 (1) Amount included in current assets on the Company’s consolidated balance sheets. (2) Amount included in assets of discontinued operations on the Company’s consolidated balance sheets. (3) Amount included in cash and cash equivalents on the Company’s consolidated balance sheets. The carrying values of the certificates of deposit and money market funds approximate fair value, which was estimated using quoted market prices for those or similar investments. The carrying value of the Company’s other financial instruments, including accounts receivable, accounts payable and short-term debt approximate their fair values due to the short maturities on those instruments.
New Accounting Pronouncements, Policy [Policy Text Block]	(g) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, which creates Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers,” and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, ASU No. 2014-09 supersedes the cost guidance in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts,” and creates new Subtopic 340-40, “Other Assets and Deferred Costs—Contracts with Customers.” In summary, the core principle of Topic 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Companies are allowed to select between two transition methods: (1) a full retrospective transition method with the application of the new guidance to each prior reporting period presented, or (2) a retrospective transition method that recognizes the cumulative effect on prior periods at the date of adoption together with additional footnote disclosures. The amendments in ASU No. 2014-09 are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and early application is not permitted. In March 2016 and April 2016, the FASB issued ASU No. 2016-08 and ASU No. 2016-10, respectively. The amendments in ASU No. 2016-08 and ASU No. 2016-10 do not change the core principle of ASU No. 2014-09, but instead clarify the implementation guidance on principle versus agent considerations and identify performance obligations and the licensing implementation guidance, respectively. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements and have not made any decision on the method of adoption. In November 2015, the FASB issued ASU No. 2015-17, which amends ASC Topic 740, “Income Taxes.” This amendment aligns the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards. International Accounting Standard 1, Presentation of Financial Statements In February 2016, the FASB issued ASU No. 2016-02, which creates ASC Topic 842, “Leases.” This update increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In March 2016, the FASB issued ASU No. 2016-09, which amends ASC Topic 718, “Compensation – Stock Compensation.” This amendment simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In August 2016, the FASB issued an accounting standards update which provides additional clarity on the classification of specific events on the statement of cash flows. These events include: debt prepayment and extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from settlement of insurance claims, distributions received from equity method investees, and beneficial interests in securitization transactions. The update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods, with early application permitted.

Note 1 - Summary of Significa18

Note 1 - Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Sep. 30, 2016
Notes Tables
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]	September 30, 2016 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Certificates of Deposit- Restricted — 2,248 (2) — 2,248 Money Market Funds 10,509 (3) — — 10,509 June 30, 2016 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Certificates of Deposit- Restricted — 2,262 (2) — 2,262 Money Market Funds 12,654 (3) — — 12,654

Note 2 - Current Projects (Tabl

Note 2 - Current Projects (Tables)	3 Months Ended
Note 2 - Current Projects (Tables)	Sep. 30, 2016
Notes Tables
Equity Method Investment Summarized Financial Information Income Statement [Table Text Block]	Income Statement data: Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Revenue $ 2,370 $ 4,098 Operating loss (1,558 ) (551 ) Net loss (1,558 ) (551 )
Equity Method Investment Summarized Financial Information Balance Sheet [Table Text Block]	Balance sheet data: As of September 30, 2016 As of June 30, 2016 Current assets $ 10,859 $ 9,856 Noncurrent assets 7,112 7,366 Current liabilities 7,114 4,719 Noncurrent liabilities — — Equity 10,857 12,503

Note 3 - Discontinued Operati20

Note 3 - Discontinued Operation (Tables)	3 Months Ended
Note 3 - Discontinued Operation (Tables)	Sep. 30, 2016
Notes Tables
Disposal Groups, Including Discontinued Operations [Table Text Block]	Three Months Ended September 30, 2016 2015 Revenue: Product sales and other –related parties $ — 3,075 Related party consulting services 168 77 Total revenue from discontinued operation 168 3,152 Net loss from discontinued operations to SES stockholders (380 ) (1,579 ) Net comprehensive loss from discontinued operations to SES stockholders (355 ) (2,092 ) As of September 30, 2016 As of June 30, 2016 ASSETS Current assets: Cash and cash equivalents $ 10 $ 12 Certificate of deposit- restricted 2,248 2,262 Prepaid expenses and other currents assets 26 329 Inventory 53 79 Total current assets of discontinued operation 2,337 2,682 Property, plant and equipment, net 8,611 8,948 Other long-term assets 1,055 1,032 Total assets of discontinued operations 12,003 12,662 LIABILITIES AND EQUITY Current liabilities: Accrued expenses and accounts payable 1,314 1,698 Accrued expenses and accounts payable- related party 4,942 4,853 Line of credit 3,746 3,770 Short-term bank loan 2,995 3,016 Total Current liabilities of discontinued operations 12,997 13,337 Three Months Ended September 30, 2016 2015 Cash flows from operating activities: Depreciation 155 166 Amortization 2 2 Cash flows from investing activities: Capital expenditures (4 ) (9 )

Note 5 - Equity (Tables)

Note 5 - Equity (Tables)	3 Months Ended
Note 5 - Equity (Tables)	Sep. 30, 2016
Notes Tables
Nonvested Restricted Stock Shares Activity [Table Text Block]	Restricted stock Outstanding at June 30, 2016 275,096 Granted — Vested (20,089 ) Forfeited — Outstanding at September 30, 2016 255,007
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Shares of Common Stock Options Outstanding at June 30, 2016 10,215,447 Granted — Exercised (40,000 ) Forfeited — Outstanding at September 30, 2016 10,175,447 Exercisable at September 30, 2016 9,431,510
Stock Warrants Activity [Table Text Block]	Shares of Common Warrants Outstanding at June 30, 2016 9,914,832 Granted — Exercised — Forfeited — Outstanding at September 30, 2016 9,914,832 Exercisable at September 30, 2016 9,539,832
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]	Three Months Ended September 30, 2016 2015 2005 and 2015 Incentive Plans $ 199 $ 172 Warrants 58 959 Total stock-based expense $ 257 $ 1,131

Note 8 - Segment Information (T

Note 8 - Segment Information (Tables)	3 Months Ended
Note 8 - Segment Information (Tables)	Sep. 30, 2016
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended September 30, 2016 2015 Revenue: SES China $ — $ — Technology licensing and related services — 247 Corporate & other — — Total revenue $ — $ 247 Depreciation and amortization: SES China $ — $ 6 Technology licensing and related services 39 51 Corporate & other — — Total depreciation and amortization $ 39 $ 57 Operating loss: SES China $ (486 ) $ (571 ) Technology licensing and related services (649 ) (244 ) Corporate & other (1,493 ) (2,268 ) Total operating loss $ (2,628 ) $ (3,083 )
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	As of 2016 As of June 30, 2016 Assets: SES China $ 36,423 $ 37,188 Technology licensing and related services 830 892 Corporate & other 14,819 17,101 Total assets $ 52,072 $ 55,181

Note 1 - Summary of Significa23

Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016
Yima Joint Venture [Member] \| Yima [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	75.00%
Yima Joint Venture [Member]
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures	$ 26,200,000	$ 26,200,000
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	25.00%
TSEC Joint Venture [Member] \| TST [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	65.00%
TSEC Joint Venture [Member]
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures	$ 0	0
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures	$ 26,201,000	$ 26,201,000
Variable Interest Entity Determination Time Period for Evaluating Profit Distribution	20 years
Variable Interest Entity Determination Time Period for Expected Negative Variability	20 years
Variable Interest Entity Intitial Profit Loss Allocation Percent	95.00%
Variable Interest Entity Comparable Time Period for Profit Allocation	30 years
Variable Interest Entity Profit Loss Reduction for Comparable Period Percentage	10.00%

Note 1 - Summary of Significa24

Note 1 - Summary of Significant Accounting Policies - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands		Sep. 30, 2016	Jun. 30, 2016
Fair Value, Inputs, Level 1 [Member] \| Certificates of Deposit [Member]
Assets, fair value
Fair Value, Inputs, Level 1 [Member] \| Certificates of Deposit Restricted [Member]
Assets, fair value
Fair Value, Inputs, Level 1 [Member] \| Money Market Funds [Member]
Assets, fair value	[1]	10,509	12,654
Fair Value, Inputs, Level 2 [Member] \| Certificates of Deposit [Member]
Assets, fair value	[2]	50	50
Fair Value, Inputs, Level 2 [Member] \| Certificates of Deposit Restricted [Member]
Assets, fair value	[3]	2,248	2,262
Fair Value, Inputs, Level 2 [Member] \| Money Market Funds [Member]
Assets, fair value
Fair Value, Inputs, Level 3 [Member] \| Certificates of Deposit [Member]
Assets, fair value
Fair Value, Inputs, Level 3 [Member] \| Certificates of Deposit Restricted [Member]
Assets, fair value
Fair Value, Inputs, Level 3 [Member] \| Money Market Funds [Member]
Assets, fair value
Certificates of Deposit [Member]
Assets, fair value		50	50
Certificates of Deposit Restricted [Member]
Assets, fair value		2,248	2,262
Money Market Funds [Member]
Assets, fair value		$ 10,509	$ 12,654

[1]	Amount included in cash and cash equivalents on the Company's consolidated balance sheets.
[2]	Amount included in current assets on the Company's consolidated balance sheets.
[3]	Amount included in assets held for sale on the Company's consolidated balance sheets.

Note 2 - Current Projects (Deta

Note 2 - Current Projects (Details Textual) ¥ in Millions	Oct. 31, 2016	Jun. 26, 2015USD ($)	Nov. 30, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Apr. 30, 2015USD ($)	Oct. 31, 2014USD ($)	Apr. 30, 2014CNY (¥)	Aug. 31, 2009	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2016CNY (¥)	May 31, 2016USD ($)	May 31, 2016CNY (¥)	Mar. 31, 2016	Apr. 30, 2014USD ($)	Apr. 30, 2014CNY (¥)	Jul. 31, 2006
ZZ Joint Venture [Member] \| Xuecheng Energy [Member]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners																						2.40%
ZZ Joint Venture [Member] \| ZZ Working Capital Loan [Member]
Proceeds from Short-term Debt				$ 3,000,000			$ 3,300,000
ZZ Joint Venture [Member] \| Subsequent Event [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	9.00%
ZZ Joint Venture [Member]
Equity Method Investment, Ownership Percentage										88.10%		88.10%		88.10%	88.10%	88.10%						97.60%
Batchfire [Member] \| Subsequent Event [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	11.00%
Batchfire [Member]
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures										$ 0		$ 0	$ 0	$ 0	$ 0
Synthesis Energy Systems Inc. British Virgin Islands [Member] \| Rui Feng Enterprises Limited [Member] \| Equity Interest in SESI [Member]
Equity Interest Percentage to Be Sold					61.00%
Amount to Be Received for Sale of Equity					$ 10,000,000
Number of Installment Payments					4
Sale of Stock, Consideration Received on Transaction		$ 1,600,000
Yima [Member] \| Yima Joint Venture [Member]
Equity Method Investment, Ownership Percentage									75.00%
Percentage of Third Party Loan Repayment Guaranteed									50.00%
Yima Joint Venture [Member]
Duration of Business License									30 years
China Environment State Investment Co., Ltd. [Member] \| CESI-SES Joint Venture Projects [Member]
Equity Method Investment, Ownership Percentage																			51.00%
Lijin County Binhai New District Industrial Park [Member] \| CESI-SES Joint Venture Projects [Member]
Estimated Preliminary Total Investment																	$ 299,500,000	¥ 2,000
Hekou Blue Economy Industrial Park [Member] \| CESI-SES Joint Venture Projects [Member]
Estimated Preliminary Total Investment										$ 82,400,000		$ 82,400,000		82,400,000	$ 82,400,000	¥ 550
AFE [Member] \| Pro Forma [Member]
Income (Loss) from Equity Method Investments														$ (84,000)
AFE [Member]
Equity Method Investment, Ownership Percentage										37.00%		37.00%		37.00%	37.00%	37.00%
Equity Method Investments										$ 0		$ 0	0	$ 0	$ 0
Yima Joint Venture [Member]
Equity Method Investment, Ownership Percentage									25.00%
Maximum Future Ownership Interest Percentage									49.00%
Cost-method Investments, Other than Temporary Impairment													8,600,000
Cost Method Investments										26,200,000		26,200,000	26,200,000	26,200,000	26,200,000
TSEC Joint Venture [Member] \| Suzhou Tianwo Science and Technology Co Ltd [Member]
Equity Method Investment, Ownership Percentage																				65.00%	65.00%
Capital Contributions to Joint Venture \| ¥								¥ 53.8
Additional Amount Entity is Required to Contribute Within Two Years \| ¥																					¥ 46.2
Total Amount Contributed and to be Contributed to Joint Venture																				$ 15,000,000	¥ 100
Capital Contributions to Joint Venture, Receivable, Past Due Amounts										6,900,000		6,900,000		6,900,000	6,900,000	¥ 46.2
TSEC Joint Venture [Member] \| Pro Forma [Member]
Income (Loss) from Equity Method Investments										(500,000)	$ (200,000)				(1,900,000)
TSEC Joint Venture [Member]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners																				35.00%	35.00%
CESI-SES Joint Venture Projects [Member]
Equity Method Investment, Ownership Percentage																			49.00%
ZZ Line of Credit Agreement [Member]
Number of Lines of Credit							2
Proceeds from Lines of Credit			$ 3,700,000				$ 3,300,000
Repayments of Lines of Credit			$ 3,300,000			$ 3,300,000
Debt Instrument, Term								180 days
Engineering Consulting Agreement with Ambre [Member]
Revenue from Related Parties												200,000
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures										26,201,000		$ 26,201,000	$ 26,201,000	$ 26,201,000	$ 26,201,000
Revenue from Related Parties											$ 247,000

Note 2 - Current Projects - Equ

Note 2 - Current Projects - Equity Method Investment, Summarized Financial Information, Income Statement (Details) - TSEC Joint Venture [Member] - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Revenue	$ 2,370	$ 4,098
Operating loss	(1,558)	(551)
Net loss	$ (1,558)	$ (551)

Note 2 - Current Projects - E27

Note 2 - Current Projects - Equity Method Investment, Summarized Financial Information, Balance Sheet (Details) - TSEC Joint Venture [Member] - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Current assets	$ 10,859	$ 9,856
Noncurrent assets	7,112	7,366
Current liabilities	7,114	4,719
Noncurrent liabilities
Equity	$ 10,857	$ 12,503

Note 3 - Discontinued Operati28

Note 3 - Discontinued Operation (Details Textual)	Oct. 31, 2016
ZZ Joint Venture [Member] \| Subsequent Event [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	9.00%

Note 3 - Discontinued Operati29

Note 3 - Discontinued Operation - Results of Operations, Assets and Liabilities, and Cash Flows from Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016
ZZ Joint Venture [Member]
Product sales and other –related parties		$ 3,075
Related party consulting services	168	77
Total revenue from discontinued operation	168	3,152
Net loss from discontinued operations to SES stockholders	(380)	(1,579)
Net comprehensive loss from discontinued operations to SES stockholders	(355)	(2,092)
Cash and cash equivalents	10		$ 12
Certificate of deposit- restricted	2,248		2,262
Prepaid expenses and other currents assets	26		329
Inventory	53		79
Total current assets of discontinued operation	2,337		2,682
Property, plant and equipment, net	8,611		8,948
Other long-term assets	1,055		1,032
Total assets of discontinued operations	12,003		12,662
Accrued expenses and accounts payable	1,314		1,698
Accrued expenses and accounts payable- related party	4,942		4,853
Line of credit	3,746		3,770
Short-term bank loan	2,995		3,016
Total Current liabilities of discontinued operations	12,997		$ 13,337
Depreciation	155	166
Amortization	2	2
Capital expenditures	(4)	(9)
Net loss from discontinued operations to SES stockholders	$ (380)	$ (1,579)

Note 4 - GTI License Agreement

Note 4 - GTI License Agreement (Details Textual) - GTI License Agreement [Member]	1 Months Ended	3 Months Ended
	Nov. 30, 2009	Sep. 30, 2016
Percentage of Coal Content in Biomass Mixture	60.00%
Percentage of Biomass	100.00%
Percentage of Coal Biomass Blends	40.00%
Number of Business Days to Provide Approval Or Nonapproval Notice Regarding Sublicense		10 days
Period of Updates On Any Potential Subsidiaries		90 days
Period of Restriction from Disclosing Confidential Information		10 years

Note 5 - Equity (Details Textua

Note 5 - Equity (Details Textual) - shares	3 Months Ended
Note 5 - Equity (Details Textual) - shares	Sep. 30, 2016	Jun. 30, 2016	Jun. 30, 2015
The 2015 and 2005 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	21,000,000
The 2015 Plan [Member] \| Minimum [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
The 2015 Plan [Member] \| Maximum [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
The 2015 Plan [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
The 2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	7,300,000
Preferred Stock, Shares Authorized	20,000,000	20,000,000	20,000,000
Preferred Stock, Shares Outstanding	0	0	0
Preferred Stock, Shares Issued	0	0	0

Note 4 - Equity - Restricted St

Note 4 - Equity - Restricted Stock Activity (Details) - Restricted Stock [Member]	3 Months Ended
	Sep. 30, 2016shares
Outstanding, beginning balance (in shares)	275,096
Granted (in shares)
Vested (in shares)	(20,089)
Forfeited (in shares)
Outstanding, ending balance (in shares)	255,007

Note 4 - Equity - Stock Option

Note 4 - Equity - Stock Option Activity (Details)	3 Months Ended
Note 4 - Equity - Stock Option Activity (Details)	Sep. 30, 2016shares
Outstanding, beginning balance (in shares)	10,215,447
Granted (in shares)
Exercised (in shares)	(40,000)
Forfeited (in shares)
Outstanding, ending balance (in shares)	10,175,447
Exercisable (in shares)	9,431,510

Note 4 - Equity - Stock Warrant

Note 4 - Equity - Stock Warrants Activity (Details)	3 Months Ended
Note 4 - Equity - Stock Warrants Activity (Details)	Sep. 30, 2016shares
Outstanding, beginning balance (in shares)	9,914,832
Granted (in shares)
Exercised (in shares)
Forfeited (in shares)
Outstanding, ending balance (in shares)	9,914,832
Exercisable (in shares)	9,539,832

Note 4 - Equity - Stock-based C

Note 4 - Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Incentive Plan [Member]
Allocated Share-based Compensation Expense	$ 199	$ 172
Stock Warrants [Member]
Allocated Share-based Compensation Expense	58	959
Allocated Share-based Compensation Expense	$ 257	$ 1,131

Note 6 - Net Loss Per Share (De

Note 6 - Net Loss Per Share (Details Textual) - shares shares in Millions	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	20.3	17.9

Note 7 - Risks and Uncertaint37

Note 7 - Risks and Uncertainties (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015
Yima Joint Venture [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	25.00%
UNITED STATES
Cash and Cash Equivalents, at Carrying Value	$ 10,600,000
CHINA \| Certificates of Deposit [Member]
Restricted Cash and Cash Equivalents, Current	2,300,000
Cash and Cash Equivalents, at Carrying Value	11,048,000	$ 13,807,000	$ 21,472,000	$ 22,217,000
Restricted Cash and Cash Equivalents, Current	$ 26,000	$ 27,000

Note 8 - Segment Information -

Note 8 - Segment Information - Statement of Operations Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
SES China [Member]
Revenue
Depreciation and amortization		6
Operating Loss	(486)	(571)
Technology Licensing and Related Services [Member]
Revenue		247
Depreciation and amortization	39	51
Operating Loss	(649)	(244)
Corporate and Other [Member]
Revenue
Depreciation and amortization
Operating Loss	(1,493)	(2,268)
Revenue		247
Depreciation and amortization	39	57
Operating Loss	$ (2,628)	$ (3,083)

Note 8 - Segment Information 39

Note 8 - Segment Information - Assets Data by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
SES China [Member]
Assets	$ 36,423	$ 37,188
Technology Licensing and Related Services [Member]
Assets	830	892
Corporate and Other [Member]
Assets	14,819	17,101
Assets	$ 52,072	$ 55,181

Note 9 - Commitments and Cont40

Note 9 - Commitments and Contingencies (Details Textual) - Corporate Office [Member]	1 Months Ended
	Feb. 28, 2016USD ($)
Lessee Leasing Arrangements, Operating Leases, Term of Contract	1 year 180 days
Operating Leases, Rent Expense, Minimum Rentals	$ 12,000