Synthesis Energy Systems (SYNE) 10-Q 10 Jan 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2019	Jan. 02, 2020
Document And Entity Information
Entity Registrant Name	SYNTHESIS ENERGY SYSTEMS INC
Entity Central Index Key	0001375063
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,576,500
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 382	$ 871
Prepaid expenses	676	768
Other currents assets	199	199
Total current assets	1,257	1,838
Property, plant and equipment, net
Intangible asset, net	785	794
Investment in joint ventures	19	19
Other long-term assets	2	5
Total assets	2,063	2,656
Current liabilities:
Accrued expenses and accounts payable	736	834
Accrued interest payable	440	220
Accrued royalty expenses	875	750
Total current liabilities	2,051	1,804
Senior secured debenture principal	8,000	8,000
Less unamortized discount and debt issuance costs	(2,041)	(2,165)
Total senior secured debenture	5,959	5,835
Derivative liabilities	53	87
Total long-term liabilities	6,012	5,922
Total liabilities	8,063	7,726
Commitment and contingencies (Note 11)
Stockholders' equity:
Preferred stock, $0.01 par value- 20,000 shares authorized - no shares issued and outstanding
Common stock, $0.01 par value: 200,000 shares authorized: 1,395 and 1,395 shares issued and outstanding, respectively	14	14
Additional paid-in capital	265,534	265,533
Accumulated deficit	(271,715)	(270,784)
Accumulated other comprehensive income	244	244
Total stockholders' equity to SES stockholders	(5,923)	(4,993)
Noncontrolling interests in subsidiaries	(77)	(77)
Total stockholders' equity	(6,000)	(5,070)
Total liabilities and equity	$ 2,063	$ 2,656

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Jun. 30, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	1,395,000	1,395,000
Common stock, shares outstanding	1,395,000	1,395,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenue:
Total revenue
Costs and Expenses:
Costs of sales
General and administrative expenses	598	1,463
Stock-based expense	1	214
Depreciation and amortization	13	11
Total costs and expenses	612	1,688
Operating loss	(612)	(1,688)
Non-operating income (expense):
Equity in gain of joint ventures		75
Gain on fair value adjustments of derivative liabilities	34	808
Foreign currency losses, net	(11)	(122)
Interest expense	(344)	(324)
Interest income	2	17
Net loss	(931)	(1,234)
Net loss attributable to SES stockholders	$ (931)	$ (1,234)
Net loss per share (Basic and diluted):
Net loss per share attributable to SES stockholders	$ (0.67)	$ (0.90)
Weighted average common shares outstanding:
Basic and diluted	1,395,000	1,377,000
Related Party Consulting Services [Member]
Revenue:
Total revenue

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (931)	$ (1,234)
Currency translation adjustment		27
Comprehensive loss	(931)	(1,207)
Less comprehensive loss attributable to noncontrolling interests
Comprehensive loss attributable to the Company	$ (931)	$ (1,207)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Cash flows from operating activities:
Net loss	$ (931)	$ (1,234)
Adjustments to reconcile net loss to net cash flow from operating activities:
Stock-based expense	1	214
Depreciation of property, plant and equipment		3
Amortization of debenture issuance cost	126	104
Amortization of intangible and other assets	13	8
Gain on fair value adjustment of derivative	(34)	(808)	$ (1,877)
Equity in (income) losses of joint ventures		(75)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	92	90
Other long-term assets	(3)	(17)
Accrued expenses and accounts payable	247	77
Net cash used in operating activities	(489)	(1,638)
Cash flows from investing activities:
Loan to AFE		(260)
Repayment of loan from AFE		260
Equity investment in joint ventures		(11)
Net cash provided by or (used in) investing activities		(11)
Cash flows from financing activities:
Net cash provided by (used in) financing activities
Net increase (decrease) in cash	(489)	(1,649)
Cash and cash equivalents, beginning of period	871	7,071	7,071
Effect of exchange rates on cash		(74)
Cash and cash equivalents, end of period	382	5,348	$ 871
Supplemental Disclosures:
Cash paid for interest expense during the quarter:		$ 220

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]	Non-controlling Interest [Member]	Total
Balance at Jun. 30, 2018	$ 14	$ 265,162	$ (260,068)	$ 244	$ (73)	$ 5,279
Balance, shares at Jun. 30, 2018	1,377,000
Net loss			(1,234)			(1,234)
Currency translation adjustment				27		27
Stock-based expense		214				214
Stock-based expense, shares	3,000
Balance at Sep. 30, 2018	$ 14	265,376	(261,302)	271	(73)	4,286
Balance, shares at Sep. 30, 2018	1,380,000
Balance at Jun. 30, 2019	$ 14	265,533	(270,784)	244	(77)	(5,070)
Balance, shares at Jun. 30, 2019	1,395,000
Net loss			(931)			(931)
Currency translation adjustment
Stock-based expense		1				1
Balance at Sep. 30, 2019	$ 14	$ 265,534	$ (271,715)	$ 244	$ (77)	$ (6,000)
Balance, shares at Sep. 30, 2019	1,395,000

Business and Liquidity

Business and Liquidity	3 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Liquidity	Note 1 — Business and Liquidity (a) Organization and description of business Synthesis Energy Systems, Inc. (referred to herein as “we”, “us”, and “our”), together with its wholly-owned and majority-owned controlled subsidiaries, is a global clean energy company that owns proprietary technology, SES Gasification Technology (“SGT”), for the low-cost and environmentally responsible production of synthesis gas (referred to as “syngas”). Syngas is used to produce a wide variety of high-value clean energy and chemical products, such as synthetic natural gas, power, methanol, and fertilizer. Our focus has been on commercializing SGT both in China and globally through the regional business platforms we have created with partners in Australia, via Australia Future Energy Pty Ltd (“AFE”), in Poland, via SES EnCoal Energy sp. z o.o (“SEE”) and in China, via Tianwo-SES Clean Energy Technologies Limited (“TSEC Joint Venture”). Over the past twelve years, we have successfully commercialized SGT primarily through our efforts in China where, between 2006 and 2016, we invested in and built two commercial scale gasification projects together with Chinese partners and sub-licensed the SGT into three additional projects in China. In the aggregate, we have completed five commercial scale industrial projects in China over a ten-year period, in which the projects utilize twelve SES proprietary SGT systems. We believe the completion of these projects in China propelled SGT into a globally recognized gasification technology. In 2014, we undertook efforts to expand into other regions of the world and created AFE, a joint venture with partners Ambre Investments PTY Limited (“Ambre”) in Australia, and in 2017, created SEE in Poland, with its partners from EnInvestments sp. z o.o. These regions are ideal locations for industrial projects utilizing the SGT due to high energy prices and limited access to affordable natural gas, combined with an abundance of low-quality, low-cost coal resources, renewable biomass and municipal solid wastes. Australia’s lack of both domestic gas and a uniform energy policy has created a shortage of reliable energy supply and rising consumer prices, creating a need and demand for more environmentally friendly and cleaner energy solutions. AFE was established for the purpose of building large-scale vertically integrated projects using SGT to produce syngas used in manufacturing fuel gas, synthetic natural gas, agricultural and other chemicals, transportation fuels, explosives and for power generation and also to secure ownership positions in local resources, such as coal and biomass. AFE is able to leverage the unique flexible feedstock capability of SGT to build industrial projects with low production costs that can also reduce carbon dioxide emissions and support Australian industry and regional growth. Since its formation, AFE has made significant commercial progress, creating Batchfire Resources Pty Ltd (“BFR”), which acquired one of the largest operating coal mines in Queensland, acquiring a coal resource mine development lease near Pentland, Queensland, and advancing the development of its flagship Gladstone Energy and Ammonia Project (the “Gladstone Project”). The AFE business underpins the future value of the Company and, to that end, on October 10, 2019, we and AFE entered into a definitive agreement to merge the two entities, among other transactions, as described further in Note 13 – Subsequent Events The Proposed Merger with AFE. We operate our business from our headquarters located in Houston, Texas and our offices in Shanghai, China. (b) Liquidity, Management’s Plan and Going Concern As of September 30, 2019, we had $0.4 million in cash and cash equivalents and negative $0.8 million in working capital. As of January 10, 2020, we had $0.4 million in cash and cash equivalents. Of the $0.4 million in cash and cash equivalents, $347,000 resides in the United States or easily accessed foreign countries and approximately $40,000 resides in China. We have determined that we do not have adequate cash to continue the commercialization of SGT due primarily to our inability to realize financial results from our two investments into projects in China as well as our inability to quickly develop alternative technology income sources in Australia, Poland or other global regions. As a result, we suspended our global SGT commercialization efforts, we ceased providing funds for project developments and we continue to explore the divesting of assets such as our Yima and TSEC Joint Ventures and we formed a special committee of the board of directors to evaluate financing and restructuring alternatives. On October 10, 2019, we announced the proposed merger with AFE described above and the acquisition of additional ownership in BFR. As a result of our efforts evaluating financing and strategic options, on October 10, 2019 we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with AFE as described further in Note 13 – Subsequent Events The Proposed Merger with AFE. In connection with the entry into the Merger Agreement, we entered into a securities purchase and exchange agreements (each, a “New Purchase Agreements”) with each of the existing holders of its 11% senior secured debentures issued in October 2017 (the “Debentures”), whereby each of the holders agreed to exchange their Debentures and accompanying warrants (the “Debenture Warrants”) for new debentures (the “New Debentures”) and warrants (the “New Warrants”), and certain of the holders agreed to provide $2,000,000 of additional debt financing (the “Interim Financing”). Pursuant to the New Purchase Agreements, the Company also issued $2,000,000 of 11% senior secured debentures (the “Merger Debentures”) to certain accredited investors, along with warrants to purchase $4,000,000 of shares of Common Stock, half of which were Series A Common Stock Purchase Warrants (the “Series A Merger Warrants”) and half of which were Series B Common Stock Purchase Warrants (the “Series B Merger Warrants” and, together with the Series A Merger Warrants, the “Merger Warrants”), as part of the Interim Financing. The Company shall receive the $2,000,000 pursuant to the Merger Debentures according to the following schedule: (i) $1,000,000 on or before October 14, 2019, (ii) $500,000 upon the filing of the proxy statement for the Company stockholder approval of the Merger, and (iii) $500,000 within two business days of Company stockholder approval of the Merger. The terms of the Merger Debentures are the same as the New Debentures. The Merger Debentures are intended to assist the Company in financing its business through the closing of the Merger. As compensation for its services, the Company will pay to T.R. Winston & Company, LLC (the “Placement Agent”): (i) a cash fee of $140,000 (representing an aggregate fee equal to 7% of the face amount of the Merger Debentures, as defined below); and (ii) a warrant to purchase 100,000 shares of Common Stock (the “New Placement Agent Warrants”). We have also agreed to reimburse certain expenses of the Placement Agent. The $1,000,000 scheduled payment on or before October 14, 2019 was subsequently received less certain legal costs and escrow fees in the amount of $966,000. The Company has also agreed to loan $350,000 of the proceeds from the Merger Debentures to AFE to assist AFE in financing its business through the closing of the Merger. The loan is subject to interest at the rate of 11% per annum payable in full on the repayment date in conjunction with the repayment of the principal amount. The repayment date is the earlier of five days after completion of the Merger transaction or the later of March 31, 2020 or three months following the vote of the shareholders on the Merger. On October 24, 2019 we entered into a loan agreement with AFE whereby we loaned a portion of the $2.0 million proceeds received under the New Purchase Agreements. Under the loan agreement, we loaned $350,000 to AFE, which is due in full on the later of March 31, 2020 or within five days following the closing of the Merger. If the Merger does not close, the loan will mature on March 31, 2020 or three months following the special stockholder meeting called to approve the merger transactions. The loan accrues interest at 11% per annum and is also due in full upon repayment, subject to an increased default interest in certain limited circumstances. We can make no assurances that the proposed merger transaction will be completed on a timely basis or at all. We may also need to raise additional capital through equity and debt financing to complete the Merger or to otherwise strengthen our balance for our corporate general and administrative expenses. We cannot provide any assurance that any financing will be available to us in the future on acceptable terms or at all. Any such financing could be dilutive to our existing stockholders. In addition, we may be forced to seek relief to avoid or end insolvency through other proceedings including bankruptcy. Based on the historical negative cash flows and the continued limited cash inflows in the period subsequent to year end there is substantial doubt about the Company’s ability to continue as a going concern.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 — Summary of Significant Accounting Policies (a) Reverse Stock Split On July 22, 2019, we enacted a 1 for 8 reverse stock split as approved by the shareholders at the Annual Meeting of Stockholders held in June 2019. All share and per share amounts in the condensed consolidated financial statements have been retroactively restated to reflect the reverse stock split. (b) Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements for the periods presented are unaudited. Operating results for the three month period ending September 30, 2019 are not necessarily indicative of results to be expected for the fiscal year ending June 30, 2020. The condensed 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 including any contractual relationships in such subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These condensed 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, 2019. 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, 2019 are included below. The condensed 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. The accompanying condensed consolidated interim financial statements have been prepared on the basis of a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As such, conditions exist the may raise substantial doubt regarding the Company’s ability to continue as a going concern. These condensed consolidated interim financial statements do no give effect to any adjustment that would be necessary should the Company be unable to continue as a going concern and therefore need to realize its assets and liquidate its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying condensed consolidated interim financial statements. In the opinion of management, all adjustments which are necessary for fair statements of the results for interim periods have been included. (c) Accounting for Variable Interest Entities (“VIEs”) and Financial Statement Consolidation Criteria 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 the level of our influence in each joint venture. 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. Cost method investments are recorded at cost less any impairments. All 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. The joint ventures which we have entered into may be considered a variable interest entity (“VIE”). We consolidate all VIEs where we are the primary beneficiary. This determination is made at the inception of our involvement with the VIE and is continuously re-assessed. We consider qualitative factors and form a conclusion that we, or another interest holder, has a controlling financial interest in the VIE and, if so, whether it is the primary beneficiary. To determine the primary beneficiary, we consider who has the power to direct activities of the VIE that most significantly impacts the VIE’s performance and has the obligation to absorb losses from or the right to receive benefits of the VIE that could be significant to the VIE. We do not consolidate VIEs where we are not the primary beneficiary. As noted above, we account for these unconsolidated VIEs using either the equity method if we have significant influence but not control, or the cost method and include our net investment on our condensed consolidated balance sheet. Under the equity method, our equity interest in the net income or loss from our investments are recorded in non-operating income/expense on a net basis on our condensed 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. (d) Revenue Recognition Technology licensing revenue is typically received over the course of a project’s development as milestones are met. We 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. We recognize license fees 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 or as services are provided. There were no license fee revenues was recorded in the quarter ending September 30, 2019 or 2018. There were no revenues related to the sales of services or equipment in the quarter ending September 30, 2019 or 2018. (e) Use of estimates The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Management considers many factors in selecting appropriate operational and financial accounting policies and controls, and in developing the assumptions that are used in the preparation of these consolidated financial statements. Management must apply significant judgment in this process. Among the factors, but not fully inclusive of all factors that may be considered by management in these processes are: the range of accounting policies permitted by accounting principles generally accepted in the United States; management’s understanding of the Company’s business for both historical results and expected future results; the extent to which operational controls exist that provide high degrees of assurance that all desired information to assist in the estimation is available and reliable or whether there is greater uncertainty in the information that is available upon which to base the estimate; expectations of the future performance of the economy, both domestically, and globally, within various areas that serve the Company’s principal customers and suppliers of goods and services; expected rates of exchange, sensitivity and volatility associated with the assumptions used in developing estimates; and whether historical trends are expected to be representative of future trends. The estimation process often times may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that lies within that range of reasonable estimates based upon the risks associated with the variability that might be expected from the future outcome and the factors considered in developing the estimate. Management attempts to use its business and financial accounting judgment in selecting the most appropriate estimate, however, actual amounts could and will differ from those estimates. (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 Company measures equity investments without readily determinable fair value on a non-recurring basis. The following table summarizes the assets of the Company measured at fair value as of September 30, 2019 and June 30, 2019 (in thousands): September 30, 2019 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Money Market Funds 220 (2) — — 220 Liabilities: Derivative Liabilities $ — $ — $ 53 $ 53 June 30, 2019 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Money Market Funds 369 (2) — — 369 Liabilities: Derivative Liabilities $ — $ — $ 87 $ 87 (1) Amount included in current assets on the Company’s consolidated balance sheets. (2) Amount included in cash and cash equivalents on the Company’s consolidated balance sheets. The following table sets forth the changes in the estimated fair value for our Level 3 classified derivative liabilities (in thousands): Derivative liabilities balance - June 30, 2019 $ 87 Change in fair value (34 ) Derivative liabilities balance – September 30, 2019 $ 53 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 other financial instruments, including accounts receivable and accounts payable, approximate their fair values due to the short maturities on those instruments. Our Debentures are recorded at face value of $8.0 million and fair value is unable to be determined due to lack of third-party quotes and the Company’s distressed financial position. The derivative liabilities are measured at fair value using a Monte Carlo simulation valuation methodology. (See also Note 6 – Derivative Liabilities

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Note 3 – Recently Issued Accounting Standards 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 adopted ASC Topic 842. “Leases” beginning July 1, 2019. We currently do not have any leases for which this standard applies using the election to exclude leases for less than one year and therefore the standard had no effect on our financial condition, results of operations, cash flows or financial disclosures. In June 2018, the FASB issued ASU No. 2018-07, which expands the scope of Topic 718, “Compensation – Stock Compensation”, to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of Topic 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. This amendment specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. This amendment also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We adopted ASC 718, “Compensation – Stock Compensation” beginning July 1, 2019. The adoption of the standard had no material effect on our financial condition, results of operations, cash flows or financial disclosures.

Current Projects

Current Projects	3 Months Ended
	Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Current Projects	Note 4 – Current Projects Australian Future Energy Pty Ltd In February 2014, we established AFE together with an Australian company, Ambre. AFE is an independently managed Australian business platform established for the purpose of building a large-scale, vertically integrated business in Australia based on developing, building and owning equity interests in financially attractive and environmentally responsible projects that produce low-cost syngas as a competitive alternative to expensive local natural gas and LNG. On May 10, 2017, we entered into a project technology license agreement with AFE in connection with a project being developed by AFE in Queensland, Australia. AFE intends to form a subsidiary project company and assign the project technology license agreement to that company which will assume all of the obligations of AFE thereunder. Pursuant to the project technology license agreement, we granted a non-exclusive license to use our technology at the project to manufacture syngas and to use our technology in the design of the facility. In consideration, the project technology license agreement calls for a license fee to be finalized based on the designed plant capacity and a separate fee of $2.0 million for the delivery of a process design package. License fees shall be paid as project milestones are reached throughout the planning, construction and first five years of plant operations. The success and timing of the project being developed by AFE will affect if and/or when we will be able to receive all the payments related to this technology license agreement. However, there can be no assurance that AFE will be successful in developing this or any other project. In September 2018, AFE’s Gladstone Project was formally announced in Queensland Parliament by Minister for State Development, Manufacturing, Innovation and Planning, Mr. Cameron Dick and was declared by the Queensland Co-Ordinator General as a Co-Ordinated Project. On April 4, 2019, we entered into a Technology Purchase Option Agreement (the “Option Agreement”) with AFE providing AFE has an exclusive option through July 31, 2019 to purchase 100% ownership of Synthesis Energy Systems Technology, LLC, our wholly-owned subsidiary which owns our interest in the SGT. In addition, ownership rights to SGT are carved out of the transaction and retained by us for China and we have a three-year option period post-closing to monetize SGT for India, Brazil, Poland and for the DRI technology market segment. On July 31, 2019, we entered into an Amendment to the Option Agreement with AFE extending the exclusive option provided in the Option Agreement through August 31, 2019. On August 31, 2019, we mutually agreed with AFE to allow the Option Agreement to terminate pursuant to its terms and no penalties or payments were due as a result of the termination of the agreement. AFE issued one million shares to us in connection with the execution of the Option Agreement. AFE would also pay (i) an additional $2.0 million in three equal installments, with the first installment paid at closing and the remainder over the subsequent twelve months, and (ii) $3.8 million on the earlier of the closing of a construction financing by AFE or five years from closing. The closing of the transaction was subject to the negotiation of definitive agreements and other conditions specified in the Option Agreement. In addition to the payment schedule above, AFE issued an additional one million shares with the execution of the Option Agreement and would also pay an additional $100,000 with the first installment paid at closing as full and final settlement of outstanding invoices owing AFE to us at the date of this Option Agreement. As a result of the termination of the Option Agreement, we retained the two million shares AFE issued in connection with the Option Agreement. We accounted for the first million shares as an additional investment in AFE for $70,000 and a reduction of receivable amounts due from AFE with a fair value of $100,000 with a write-off for the remaining $30,000. The second million shares were accounted for as an additional investment in AFE and a deferred liability in the amount of $70,000 as a down payment on the purchase of our subsidiary. In the quarter ending September 30, 2019, we recognized the $70,000 down payment as an other gain due to the termination of the Option Agreement. For our ownership interest in AFE, we have been contributing cash and engineering support for AFE’s business development while Ambre contributed cash and services. Additional ownership in AFE has been granted to the AFE management team and staff individuals providing services to AFE. In April 2019, we were issued two million shares in connection with the Option Agreement and its subsequent termination. We account for our investment in AFE under the equity method. Our ownership interest of approximately 35% makes us the second largest shareholder. We also maintain a seat on the board of directors which allows us to have significant influence on the operations and financial decisions, but not control, of AFE. Our carrying value of our AFE investment as of both September 30, 2019 and June 30, 2019 was zero. The following summarizes unaudited condensed financial information of AFE for the three months ended September 30, 2019 and 2018 and as of September 30, 2019 and June 30, 2019 (in thousands): September 30, 2019 September 30, 2018 Income Statement data: Net Income (Loss) $ (293 ) $ 313 September 30, 2019 June 30, 2019 Balance sheet data: Total assets $ 1,322 $ 1,555 Total Equity 610 324 For more on the Merger and related transactions, see Note 13 – Subsequent Events The Proposed Merger with AFE Cape River Resources Pty Ltd In October 2018, AFE formed a separate unrelated company, Cape River Resources Pty Ltd (“CRR”) for the purpose of developing the Pentland resource into an operating thermal coal mine. Ownership in CRR was distributed proportionately to the shareholders of AFE with additional shares issued to the management team. Our ownership in CRR was approximately 38% upon the formation of CRR through our ownership interest in AFE. GNE sold its 100% ownership interest in the Pentland Coal Mine to CRR. We account for our investment in CRR under the equity method. Our ownership interest of approximately 38% makes us the second largest shareholder. We may appoint one board director for each 15% ownership interest we hold in CRR which allows us to have significant influence on the operations and financial decisions, but not control, of CRR. Our carrying value of our CRR investment as of June 30, 2019 was zero. Batchfire Resources Pty Ltd As a result of AFE’s early stage business development efforts associated with the Callide coal mine in Central Queensland, Australia, AFE created BFR. BFR was a spin-off company for which ownership interest was distributed to the existing shareholders of AFE and to the new BFR management team in December 2015. BFR is registered in Australia and was formed for the purpose of purchasing the Callide thermal coal mine from Anglo-American plc (“Anglo-American”). The Callide mine is one of the largest thermal coal mines in Australia and has been in operation for more than 40 years. In October 2016, BFR stated that it had received investment support for the acquisition from Singapore-based Lindenfels Pte, Ltd, a subsidiary of commodity traders Avra Commodities, and as a result the acquisition of the Callide thermal coal mine from Anglo-American was completed in October 2016. On April 29, 2019, BFR issued additional shares as part of a rights offering. We did not execute our rights in this offering and therefore after the completion of the offering process and the issuance of the additional shares, our ownership interest was diluted from approximately 11% to approximately 7%. We account for our investment in BFR under the cost method. Our limited ownership interest in BFR was approximately 7% and we do not have significant influence over the operation or financial decisions made by the company. At the time of the spin-off, the carrying amount of our investment in AFE was reduced to zero through equity losses. As such, the value of the investment in BFR post spin-off was also zero. As of September 30, 2019, our ownership interest in BFR was approximately 7% and the carrying value of our investment in BFR as of both September 30, 2019 and June 30, 2019 was zero. Townsville Metals Infrastructure Pty Ltd In August 2018, AFE formed a separate unrelated company, Townsville Metals Infrastructure Pty Ltd (“TMI”) for the purpose of completing the development of the required infrastructure such as rail and port modifications related to the transport of mined products including coal from the Pentland resource to the Townsville port. Ownership in TMI was distributed proportionately to the shareholders of AFE. Our ownership in TMI is approximately 38% upon the formation of TMI through our ownership interest in AFE. We account for our investment in TMI under the equity method. Our ownership interest of approximately 38% makes us the second largest shareholder. We may appoint one board director for each 15% ownership interest we hold in TMI which allows us to have significant influence on the operations and financial decisions, but not control, of TMI. Our carrying value of our TMI investment as of both September 30, 2019 and June 30, 2019 was zero. SES EnCoal Energy sp. z o. o. In October 2017, we entered into agreements with Warsaw-based EnInvestments sp. z o.o. Under the terms of the agreements, we and EnInvestments are equal shareholders of SEE and SEE will exclusively market, develop, and commercialize projects in Poland which utilize our technology, services and proprietary equipment and we share with SEE a portion of the technology license payments, net of fees, we receive from Poland. The goal of SEE is to establish efficient clean energy projects that provide Polish industries superior economic benefits as compared to the use of expensive, imported natural gas and LNG, while providing energy independence through our technological capabilities to convert the wide range of Poland’s indigenous coals, coal waste, biomass and municipal waste to valuable syngas products. SEE has developed a pipeline of projects and together we are actively working with Polish customers and partners to complete necessary project feasibility, permitting, and SGT technology agreement steps required prior to starting construction on the projects. For our ownership interest in SEE, we have been contributing cash and assisting in the development of SEE. In August 2018 we contributed additional cash of approximately $11,000. We account for our investment in SEE under the equity method. Our ownership interest of 50% makes us an equal shareholder and we also maintain two of the four seats on the board of directors which allows us to have significant influence on the operations and financial decisions, but not control, of SEE. On September 30, 2019, as an equal shareholder, our ownership was 50% of SEE and our carrying value of our investment in SEE as of both September 30, 2019 and June 30, 2019 was approximately $19,000. Midrex Technologies In July 2015, we entered into a Project Alliance Agreement that expands our exclusive relationship with Midrex Technologies for integration and optimization of DRI technology using coal gasification. Midrex has taken the lead in marketing, sales, proposal development, and project execution for coal gasification DRI projects as part of the new project alliance. Midrex may also lead the construction of the fully integrated solution for customers who desire such an execution strategy. We will provide the DRI gasification technology for each project including engineering, key equipment, and technical services. The agreement includes finalization of an engineering package for the optimized coal gasification DRI solution. Prior to the Project Alliance Agreement, we also entered into an exclusive agreement with the TSEC Joint Venture and Midrex for the joint marketing of coal gasification-based DRI facilities in China. These facilities will combine our gasification technology with the Direct Reduction Process of Midrex to create syngas from low quality coals in order to convert iron ore into high-purity DRI. The TSEC Joint Venture will aid in the marketing of these DRI facilities in China and will supply the gasification equipment and licensing of the technology. Yima Joint Venture In August 2009, we entered into joint venture contracts and related agreements with Yima Coal Industry Group Company (“Yima”). We continue to own a 25% interest in the Yima Joint Venture and Yima owns a 75% interest. In December 2017 and January 2018, on-going development cooperation and discussions with the Yima Joint Venture management resulted in the joint venture agreeing to pay various costs incurred by us during the construction and commissioning period of the facility in the amount of approximately 16 million Chinese Renminbi yuan, (“RMB”), (approximately $2.5 million). As of June 30, 2018, we had received 6.15 million RMB (approximately $0.9 million) of payments from the Yima Joint Venture related to these costs. Since June 2018, no additional payments have been received. Due to uncertainty, revenues will be recorded upon receipt of payment. Despite our continuous efforts, we have not received any further payments from 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 historical lack of significant influence in the Yima Joint Venture. The lack of significant influence was determined based upon our interactions with the Yima Joint Venture related to our limited participation in operating and financial policymaking processes coupled with our limited ability to influence decisions which contribute to the financial success of the Yima Joint Venture. We continue to evaluate our level of influence over the Yima Joint Venture. The carrying value of our Yima Joint Venture investment as of both September 30, 2019 and June 30, 2019 was zero. Tianwo-SES Clean Energy Technologies Limited 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 TSEC Joint Venture. In August 2017, we entered into a restructuring agreement which changed the share ownership in the TSEC Joint Venture, reduced the registered capital and brought an additional party, The Innovative Coal Chemical Design Institute (“ICCDI”), into the JV Contract. Current ownership interests of the TSEC Joint Venture are STT owning 50%, ICCDI owning 25% and we own the remaining 25%. The purpose of the TSEC Joint Venture is to establish SGT as the leading gasification technology in the TSEC 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 TSEC Joint Venture is to market and license SGT via project sublicenses; procurement and sale of proprietary equipment and services; coal testing; and engineering, procurement and research and development related to SGT. TSEC Joint Venture financial data The following summarizes unaudited condensed financial information of TSEC Joint Venture for the three months ended September 30, 2019 and 2018 and as of September 30, 2019 and June 30, 2019 (in thousands): Income Statement data: September 30, 2019 September 30, 2018 Revenue $ — $ — Operating loss (287 ) (207 ) Net loss (287 ) (207 ) Balance sheet data: September 30, 2019 June 30, 2019 Current assets $ 3,393 $ 3,491 Noncurrent assets 83 86 Current liabilities 3,841 3,661 Noncurrent liabilities — — Equity (365 ) (84 ) The TSEC Joint Venture is accounted for under the equity method. Our initial capital contribution in the formation of the venture was the Technology Usage and Contribution Agreement (“TUCA”), which is an intangible asset. As such, we did not record a carrying value at the inception of the venture. The carrying value of our investment in the TSEC Joint Venture as of both September 30, 2019 and June 30, 2019 was zero. 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 to contribute additional capital. As we are not required to contribute additional capital, we have not recognized losses in the venture, as this would cause the carrying value to be negative TUCA Pursuant to the TUCA, we have contributed to the TSEC Joint Venture certain exclusive rights to our SGT in the TSEC 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 TSEC Joint Venture territory that have previously been developed by us and our affiliates. As a result of the Restructuring Agreement, ICCDI was added as a party to the TUCA, but all other material terms remained the same.

Senior Secured Debentures

Senior Secured Debentures	3 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Senior Secured Debentures	Note 5 — Senior Secured Debentures On October 24, 2017, we entered into a securities purchase agreement (the “Purchase Agreement”) with certain accredited investors (the “Purchasers”) for the purchase of $8.0 million in principal amount of Debentures. The Debentures have a term of 5 years with an interest rate of 11% that adjusts to 18% in the event the Company defaults on an interest payment. The Debentures require that dividends received from BFR are used to pay down the principal amounts of outstanding Debentures. Additionally, we issued Debenture Warrants to purchase 125,000 shares of common stock at $32.00 per common share. The Purchase Agreement and the Debentures contain certain customary representations, warranties and covenants. There are no financial metric covenants related to the Debentures. The transaction was approved by a special committee of our board of directors due to the fact that certain board members were Purchasers. Interest on the outstanding balance of Debentures is payable quarterly and commenced on January 2, 2018. All unpaid principal and interests on the Debentures will be due on October 23, 2022. The net offering proceeds to us from the sale of the Debentures and the Debenture Warrants, after deducting the Placement Agent’s fee and associated costs and expenses, was approximately $7.4 million, not including the proceeds, if any, from the exercise of the warrants issued in this offering. As compensation for their services, we paid the Placement Agent: (i) a cash fee of $0.56 million (representing an aggregate fee equal to 7% of the face amount of the Debentures); and (ii) a warrant to purchase 8,750 shares of common stock , representing 7% of the Debenture Warrants issued to the Purchasers (the “Placement Agent Warrant”). We also reimbursed certain expenses of the Placement Agent. The fair market value of the warrants was approximately $137,000 at the time of issuance and recorded as debt issuance cost. A total of approximately $1.0 million debt issuance cost was recorded as a result and is being amortized to interest expense over the term of the Debentures by using effective interest method beginning in October 2017. The Debenture Warrants and Placement Agent Warrant contain provisions providing for the adjustment of the purchase price and number of shares into which the securities are exercisable in certain events. Also, under certain events, we shall, at the holder’s option, purchase the warrants from the holder by paying the holder an amount in cash based on a Black Scholes Option Pricing Model for remaining unexercised warrants. Under U.S. GAAP, this potential cash transaction requires us to record the fair market value of the warrants as a liability as opposed to equity. Management used a Monte Carlo Simulation method to value the warrants with Anti-Dilution Protection with the assistance of a third-party valuation expert. To execute the model and value the warrants, certain assumptions were needed as noted below: Valuation Date: October 24, 2017 Warrant Expiration Date: October 31, 2022 Total Number of Warrants Issued: 133,750 Contracted Conversion Ratio: 1:1 Warrant Exercise Price (USD) 32.00 Next Capital Raise Date: October 31, 2018 Threshold exercise price post Capital raise: 20.08 Spot Price (USD): 26.53 Expected Life (Years): 5.0 Volatility: 66.0% Volatility (Per-period Equivalent): 19.1% Risk Free Interest Rate: 2.04% Risk Free Rate (Per-period Equivalent): 0.17% Nominal Value (USD Mn): 4.0 No of Shares on conversion (Mn): 0.1 The results of the valuation exercise valued the Debenture Warrants and the Placement Agent Warrant issued at $15.62 per share, or approximately $2.0 million in total. The total proceeds received are first allocated to the fair value of all the derivative instruments, and the remaining proceeds are then allocated to the Debentures, resulting in the Debentures being recorded at a discount from the face value. The Company recorded $8.0 million as the face value of the Debentures and a total of $2.0 million as discount of Debentures and $0.1 million as debt issuance cost for warrants issued to the Purchasers and Placement Agent, which is be amortized to interest expense over the term of the Debenture which resulted in a charge to interest expense of $0.3 million for both the quarters ended September 30, 2019 and 2018. The effective annual interest rate of the Debentures is approximately 18% after considering this $2.0 million discount related to the Debentures. The Debentures are guaranteed by the U.S. subsidiaries of the Company, as well as the Company’s British Virgin Islands subsidiary, pursuant to a Subsidiary Guarantee, in favor of the holders of the Debentures by the subsidiary guarantors, party thereto, as well as any future subsidiaries which the Company forms or acquires. The Debentures are secured by a lien on substantially all of the assets of the Company and the subsidiary guarantors, other than their equity ownership interest in the Company’s foreign subsidiaries, pursuant to the terms of the Purchase Agreement among the Company, the subsidiary guarantors and the holders of the Debentures. For more on the Debentures, see Note 13 – Subsequent Events The Proposed Merger with AFE.

Derivative Liabilities

Derivative Liabilities	3 Months Ended
	Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liabilities	Note 6 — Derivative Liabilities The warrants issued to the Purchasers and the Placement Agent contain provisions providing for the adjustment of the purchase price and number of shares into which the securities are exercisable under certain events. Under certain events, the Company shall, at the holder’s option, purchase the warrants from the holder by paying the holder an amount in cash based on a Black Scholes Option Pricing Model for remaining unexercised warrants. ASC 815, which establishes accounting and reporting standards for derivative instruments including certain derivative instruments embedded in other financial instruments or contracts and requires recognition of all derivatives on the balance sheet at fair value. Management used a Monte Carlo Simulation method to value the warrants with Anti-Dilution Protection with the assistance of a third-party valuation expert to initially record the fair value of these derivatives. The third-party valuation expert also assisted management in valuing the derivatives as of the year ended June 30, 2019 and the quarter ended September 30, 2019 with the changes in the fair value reported as non-operating income or expense. To execute the model and value the derivatives, certain assumptions were needed as noted below: Assumptions Year Ended June 30, 2019 Quarter Ended September 30, 2019 Warrant Issue Date: October 24, 2017 October 24, 2017 Valuation Date: June 30, 2019 September 30, 2019 Warrant Expiration Date: October 31, 2022 October 31, 2022 Total Number of Warrants Issued: 133,750 133,750 Warrant Exercise Price (USD): 32.00 32.00 Next Capital Raise Date: (1) February 29, 2020 February 29, 2020 Threshold Exercise Price Post Capital Raise: 6.40 6.40 Spot Price (USD): 2.48 1.75 Expected Life (Years): 3.3 3.1 Volatility: 75.0 % 80.0 % Volatility (Per-period Equivalent): 21.7 % 23.1 % Risk Free Interest Rate: 1.73 % 1.56 % Risk Free Rate (Per-period Equivalent): 0.14 % 0.13 % Nominal Value (USD Mn): 4.3 4.3 No. of Shares on Conversion (Mn): 0.1 0.1 Contracted Conversion Ratio: 1:1 1:1 Fair Values (in thousands) Fair Value without Anti-Dilution Protection: $ 15 $ 9 Fair Value of Embedded Derivative: 72 44 Fair Value of the Warrants Issued: $ 87 $ 53 Gain/(Loss) on Fair Value Adjustments to Derivative Liabilities $ 1,877 $ 34 (1) Next Capital Raise Date was assumed to be within a year of the debt offering and each valuation date The change in the derivative liability was mostly due to the Company’s stock price movements. Other changes in assumptions are listed above, some change with the passage time, interest rate fluctuations and stock market volatility. In addition, a change of control scenario was added to the valuation calculation due to the status of the proposed merger transaction. The change of value due to the addition was immaterial. For more on the Debentures, Debenture Warrants and Placement Agent Warrant, see Note 13 – Subsequent Events The Proposed Merger with AFE

Risks and Uncertainties

Risks and Uncertainties	3 Months Ended
	Sep. 30, 2019
Risks and Uncertainties [Abstract]
Risks and Uncertainties	Note 7 — Risks and Uncertainties As discussed in Note 1 – Business and Liquidity (b) Liquidity, Management’s Plan and Going Concern, Note 13 – Subsequent Events In connection with the entry into the Merger Agreement, the Company entered into New Purchase Agreements with each of the Purchasers of its Debentures, whereby each of the Purchasers agreed to exchange their Debentures and Debenture Warrants for New Debentures and New Warrants, and certain of the Purchasers agreed to provide $2,000,000 of Interim Financing. Pursuant to the New Purchase Agreements, the Company also issued Merger Debentures to certain accredited investors, along with Merger Warrants as part of the Interim Financing. The Company shall receive the $2,000,000 pursuant to the Merger Debentures according to the following schedule: (i) $1,000,000 on or before October 14, 2019, (ii) $500,000 upon the filing of the proxy statement for the Company stockholder approval of the Merger, and (iii) $500,000 within two business days of Company stockholder approval of the Merger. The terms of the Merger Debentures are the same as the New Debentures. The Merger Debentures are intended to assist the Company in financing its business through the closing of the Merger. As compensation for its services, the Company paid to the Placement Agent: (i) a cash fee of $140,000 (representing an aggregate fee equal to 7% of the face amount of the Merger Debentures, as defined below); and (ii) a New Placement Agent Warrant. We have also agreed to reimburse certain expenses of the Placement Agent. The $1,000,000 scheduled payment on or before October 14, 2019 was subsequently received less certain legal costs and escrow fees in the amount of $966,000. The Company has also agreed to loan $350,000 of the proceeds from the Merger Debentures to AFE to assist AFE in financing its business through the closing of the Merger. The loan is subject to interest at the rate of 11% per annum payable in full on the repayment date in conjunction with the repayment of the principal amount. The repayment date is the earlier of five days after completion of the Merger transaction or the later of March 31, 2020 or three months following the vote of the shareholders on the Merger. On October 24, 2019 we entered into a loan agreement with AFE whereby we loaned a portion of the $2.0 million proceeds received under the New Purchase Agreements. Under the loan agreement, we loaned $350,000 to AFE, which is due in full on the later of March 31, 2020 or within five days following the closing of the Merger. If the Merger does not close, the loan will mature on March 31, 2020 or three months following the special stockholder meeting called to approve the merger transactions. The loan accrues interest at 11% per annum and is also due in full upon repayment, subject to an increased default interest in certain limited circumstances. We can make no assurances that the proposed Merger will be completed on a timely basis or at all. In addition, we may be forced to seek relief to avoid or end insolvency through other proceedings including bankruptcy. Based on the historical negative cash flows and the continued limited cash inflows in the period subsequent to year end there is substantial doubt about the Company’s ability to continue as a going concern. On May 16, 2019, SES received a notice of noncompliance (the “Notice”) from the Listing Qualifications Staff (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company was not compliant with the minimum stockholders’ equity requirement under Nasdaq Listing Rule 5550(b)(1) for continued listing on The Nasdaq Capital Market because the Company’s stockholders’ equity, as reported in SES’s Quarterly Report on Form 10-Q for the period ended March 31, 2019, was below the required minimum of $2.5 million. Based on materials provided to Nasdaq by SES, the Staff granted SES an extension through November 12, 2019 to complete the Merger. On November 13, 2019, SES received notification from the Staff that it did not meet the terms of the previously granted extension and, as a result, the Staff has determined that that the securities of SES would be subject to delisting unless SES timely requested a hearing before a Nasdaq Hearings Panel (the “Panel”). Additionally, on October 17, 2019, the Staff notified SES that since it failed to timely file its Annual Report on Form 10-K for the year ended June 30, 2019, it no longer complied with Nasdaq Listing Rule 5250(c)(1). SES was given until December 16, 2019, to submit a plan of compliance for consideration by the Staff. However, pursuant to Nasdaq Listing Rule 5810(c)(2)(A), the Staff has informed SES that it can no longer consider the Company’s plan, and, as a result, the failure to file the Form 10-K serves as an additional and separate basis for delisting. On November 21, 2019, SES received an additional delinquency notification letter from the Staff due to SES’s continued non-compliance with Nasdaq Listing Rule 5250(c)(1) as a result of the Company’s failure to timely file this Quarterly Report on Form 10-Q. SES has requested a hearing before the Panel. The hearing request automatically stayed any suspension/delisting action through December 5, 2019. On December 13, 2019, we received notification from the Panel that it had determined to extend the stay of suspension through the completion of the hearings process which will take place on December 19, 2019. At the hearing, the Company will request the stay be extended through the closing of the previously announced Merger with AFE. However, there can be no assurance that the Panel will grant a further extension to enable the Company to demonstrate compliance that it has regained compliance with all applicable requirements.

GTI License Agreement

GTI License Agreement	3 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GTI License Agreement	Note 8 — GTI License Agreement In November 2009, we entered into an Amended and Restated License Agreement, (the “GTI Agreement”), with the Gas Technology Institute (“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, beginning in May 2016, 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. We continue to innovate and modify the SGT process to a point where we maintain certain intellectual property rights over SGT. Since the original licensing in 2004, we have maintained a strong relationship with GTI and continue to benefit from the resources and collaborative work environment that GTI provides us. In relation to the Merger with AFE, AFE and GTI have agreed upon new terms which, subject to a definitive agreement being completed prior to the Merger closing, would replace the current GTI Agreement.

Equity

Equity	3 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Equity	Note 9 – 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 20,000,000 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. Common Stock On July 12, 2018, the Company issued 2,862 shares of common stock to ILL-Sino Development Inc. (“ILL-Sino”), the Company’s business development advisor, pursuant to the term of the consulting agreement, as amended on July 1, 2018, between the Company and ILL-Sino. The shares are fully vested and non-forfeitable at the time of issuance. The fair value of the common stock was $24.64 per share on the date of issuance, and the Company recorded approximately $71,000 of expense for the quarter ended September 30, 2018 relating to the issuance of these shares. Stock-Based Compensation As of September 30, 2019, the Company has outstanding stock option 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 328,125 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, 2019, there were 41,880 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. There were no unvested restricted stock outstanding for the three months ended September 30, 2019 and the year ended June 30, 2019. Stock option activity during the three months ended September 30, 2019 was as follows: Number of Underlying Stock Options Outstanding at June 30, 2019 166,477 Granted — Exercised — Forfeited (14,784 ) Outstanding at September 30, 2019 151,693 Exercisable at September 30, 2019 151,343 Stock warrants activity during the three months ended September 30, 2019 were as follows: Number of Underlying Warrants Outstanding at June 30, 2019 212,638 Granted — Exercised — Forfeited — Outstanding at September 30, 2019 212,638 Exercisable at September 30, 2019 212,638 The Company recognizes the stock-based expense related to the 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 2015 Incentive Plan and attributable to warrants and common stock issued to consulting firms as compensation (in thousands): Three Months Ended September 30, 2019 2018 Incentive Plans $ 1 $ 143 Common stock — 71 Total stock-based expense $ 1 $ 214

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Net Loss Per Share	Note 10 – Net Loss Per Share All share amounts and number of shares used in the calculation of earnings per share have been adjusted for the 1 for 8 reverse stock split which became effective on July 22, 2019. 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 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, 2019 and 2018, options, restricted shares and warrants to purchase common stock were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive as the Company incurred net losses during those periods, amounted to 0.4 million.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11 — Commitments and Contingencies Litigation The Company is currently not a party to any legal proceedings. Contractual Obligations On December 31, 2019, we extended the office lease agreement through March 31, 2020 with rental related payments of approximately $3,900 per month, subject to additions based on additional services and usages each month. In November 2018, the Company entered into a new office lease agreement for 12 months ending December 31, 2019 with rental related payment of approximately $3,300 per month, subject to additions based on additional services and usages each month. The Debentures have a term of 5 years and will mature in October 2022. 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.

Segment Information

Segment Information	3 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment Information	Note 12 – Segment Information The Company’s reportable operating segments have been determined in accordance with internal management reporting structure and include SES Foreign Operating, Technology Licensing and Related Services, and Corporate. The SES Foreign Operating reporting segment includes all of the assets, operations and related administrative costs for China and our equity positions and earnings related to our joint ventures including AFE, BFR, the Yima Joint Venture and the TSEC Joint Venture. The Technology Licensing and Related Services reporting segment includes all operating activities related to our technology group. 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, 2019 2018 Depreciation and amortization: SES Foreign Operating $ — $ 2 Technology licensing and related services — — Corporate 13 9 Total depreciation and amortization $ 13 $ 11 Operating loss: SES Foreign Operating $ (70 ) $ (106 ) Technology licensing and related services (125 ) (495 ) Corporate (417 ) (1,087 ) Total operating loss $ (612 ) $ (1,688 ) Equity income of joint ventures: SES Foreign Operating $ — $ 75 Technology licensing and related services — — Corporate — — Total equity income (losses) of joint ventures $ — $ 75 Interest expense SES Foreign Operating $ — $ — Technology licensing and related services — — Corporate 344 324 Total interest expense $ 344 $ 324 September 30, 2019 June 30, 2019 Assets: SES Foreign Operating $ 103 $ 215 Technology licensing and related services 1,015 1,018 Corporate 945 1,423 Total assets $ 2,063 $ 2,656

Subsequent Events

Subsequent Events	3 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Note 13 — Subsequent Events The Proposed Merger with AFE On October 10, 2019, we, SES Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of us (“Merger Subsidiary”), and AFE, entered into the Merger Agreement pursuant to which, among other things, AFE will, subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, merge with and into Merger Subsidiary (the “Merger”), the separate corporate existence of Merger Subsidiary shall cease and AFE shall be the successor or surviving corporation of the Merger and a wholly owned subsidiary of us. The Merger is intended to qualify for federal income tax purposes as a tax-free reorganization under the provisions of Section 368(a) of the Internal Revenue Code of 1986, as amended. Upon the consummation of the Merger, it is contemplated that we will also change our name. Upon consummation of the Merger, and subject to the terms and conditions of the Merger Agreement, holders of AFE ordinary shares will receive, in exchange for such ordinary shares, 3,875,000 shares of our common stock. All outstanding stock options and restricted stock will remain outstanding post-Merger on the same terms and conditions as currently applicable to such awards, provided that outstanding awards for departing directors shall be amended to extend exercisability for the term of the award. The respective boards of directors of the Company, Merger Subsidiary and AFE have determined that the Merger Agreement and the transactions contemplated by the Merger Agreement are fair to, advisable and in the best interests of their respective stockholders and have approved the Merger and the Merger Agreement. The transactions contemplated by the Merger Agreement are subject to the approval of the Company’s and AFE’s respective shareholders at shareholders’ meetings to be called and held by the Company and AFE, respectively, and other closing conditions, including, among other things, the filing and effectiveness of a registration statement on Form S-4 with the Securities and Exchange Commission (the “SEC”), and the consummation of the transactions contemplated by the Share Exchange Agreements and the Purchase Agreements. The Merger Agreement contains representations and warranties by the Company and Merger Subsidiary, on the one hand, and by AFE, on the other hand, made solely for the benefit of the other. The assertions embodied in those representations and warranties are qualified by information in confidential disclosure schedules that the parties have exchanged in connection with signing the Merger Agreement. The disclosure schedules contain information that modifies, qualifies and creates exceptions to the representations and warranties set forth in the Merger Agreement. Moreover, certain representations and warranties in the Merger Agreement were made as of a specified date, may be subject to a contractual standard of materiality different from what might be viewed as material to shareholders, or may have been used for the purpose of allocating risk between the Company and Merger Subsidiary, on the one hand, and AFE, on the other hand. Accordingly, the representations and warranties and other disclosures in the Merger Agreement should not be relied on by any persons as characterizations of the actual state of facts about the Company, Merger Subsidiary or AFE at the time they were made or otherwise. The Merger Agreement contains certain termination rights for both the Company and AFE, including, among other things, if the Merger is not consummated on or before April 15, 2020. In connection with the entry into the Merger Agreement, the Company entered into Share Exchange Agreements (each, a “Share Exchange Agreement”) with certain of the shareholders of BFR, whereby such shareholders will exchange their shares of BFR for shares of the common stock at a ratio of 10 BFR shares for one share of common stock. As a result of these exchanges, the Company would own 25% of the outstanding shares of BFR. The closing of the exchange is subject to certain conditions specified in the Share Exchange Agreements, including, without limitation, the consummation of the transactions contemplated by the Merger Agreement. In addition, the Company is making an offer to the remaining shareholders of BFR such that the Company would acquire 100% of the shares if the offers are all accepted. In connection with the entry into the Merger Agreement, the Company entered into New Purchase Agreements with each of the Purchasers of the Debentures, whereby each of the Purchasers agreed to exchange their Debentures and Debenture Warrants for New Debentures and New Debenture Warrants, and certain of the Purchasers agreed to provide $2,000,000 of Interim Financing. As compensation for its services, the Company paid to the Placement Agent: (i) a cash fee of $140,000 (representing an aggregate fee equal to 7% of the face amount of the Merger Debentures; and (ii) New Placement Agent Warrants”). We have also agreed to reimburse certain expenses of the Placement Agent. The New Debenture Warrants and the New Placement Agent Warrants are exercisable into shares of common stock at any time from and after the closing date at an exercise price of $6.00 per common share (subject to adjustment). The New Debenture Warrants and the New Placement Agent Warrants will terminate five years after they become exercisable. The New Debenture Warrants and the New Placement Agent Warrant contain provisions providing for the adjustment of the purchase price and number of shares into which the securities are exercisable. The New Debentures and the New Debenture Warrants have substantially similar terms to the Debentures and Debenture Warrants, including as to maturity and security, except that the New Debentures, among other differences, (i) provide for the payment to certain Purchasers, at their election, of interest payments in shares of the common stock or in kind, and (ii) provide for certain optional conversion features. The New Debenture Warrants change the exercise price to $6.00 per share and makes certain other modifications to the Debenture Warrants. The New Debentures and New Debenture Warrants will be issued at the closing of the transactions contemplated by the Merger Agreement. Pursuant to the New Purchase Agreements, each of the Purchasers (i) waived the events of default resulting from the failure by the Company to timely file its Annual Report on Form 10-K for the fiscal year ended June 30, 2018, its Annual Report on Form 10-K for the fiscal year ended June 30, 2019 and for this Quarterly Report, (ii) waived the event of default resulting from the failure by the Company to make interest payments due on July 1, 2019, October 1, 2019 and January 1, 2020, and (iii) consented to the consummation of the Merger and the issuance of the Merger Debentures and the Merger Warrants, notwithstanding any limitations in the Debentures to the contrary. As mentioned above, pursuant to the New Purchase Agreements, the Company also issued Merger Debentures to certain accredited investors, along Series A Merger Warrants and half of which were Series B Merger Warrants and, together with the Series A Merger Warrants, the Merger Warrants, as part of the Interim Financing. The Company shall receive the $2,000,000 pursuant to the Merger Debentures according to the following schedule: (i) $1,000,000 on or before October 14, 2019, (ii) $500,000 upon the filing of the proxy statement for the Company stockholder approval of the Merger, and (iii) $500,000 within two business days of Company stockholder approval of the Merger. The terms of the Merger Debentures are the same as the New Debentures. The Merger Debentures are intended to assist the Company in financing its business through the closing of the Merger. The $1,000,000 scheduled payment on or before October 14, 2019 was subsequently received less certain legal costs and escrow fees in the amount of $966,000. Interest on the Merger Debentures is payable quarterly in arrears, at the option of the holder, in the form of shares of common stock, to be issued at a price of the lower of $3.00 per share and the 10-day trailing VWAP for the period immediately prior to the due date of the interest payment, or in kind. The Merger Debentures are convertible at any time by the holders into shares of common stock at a price of $3.00 per share, and the Company can require conversion into shares of common stock at a price of $3.00 per share if the common stock trades at or above $10.00 per share for ten consecutive trading days. The Merger Warrants are exercisable into shares of common stock at any time from and after the issue date at an exercise price of $3.00 per share of common stock, in the case of the Series A Merger Warrants, or $6.00 per share of common stock, in the case of the Series B Merger Warrants. The Merger Warrants will terminate five years after they become exercisable. The Merger Warrants contain provisions providing for the adjustment of the purchase price and number of shares into which the securities are exercisable. The terms of the Merger Warrants are the same as the New Warrants. The New Placement Agent Warrants have the same terms as the Merger Warrants with an exercise price of $3.00 per share. In connection with entering into the New Purchase Agreements, the Company also entered into a Registration Rights Agreement with the investors whereby the Company agreed to register the shares of common stock underlying the New Debentures, the New Debenture Warrants, the New Purchase Agent Warrants, the Merger Debentures and the Merger Warrants. The Company has also agreed to loan $350,000 of the proceeds from the Merger Debentures to AFE to assist AFE in financing its business through the closing of the Merger. The loan is subject to interest at the rate of 11% per annum payable in full on the repayment date in conjunction with the repayment of the principal amount. The repayment date is the earlier of five days after completion of the Merger transaction or the later of March 31, 2020 or three months following the vote of the shareholders on the Merger. On October 24, 2019 we entered into a loan agreement with AFE whereby we loaned a portion of the $2.0 million proceeds received under the New Purchase Agreements. Under the loan agreement, we loaned $350,000 to AFE, which is due in full on the later of March 31, 2020 or within five days following the closing of the Merger. If the Merger does not close, the loan will mature on March 31, 2020 or three months following the special stockholder meeting called to approve the Merger. The loan accrues interest at 11% per annum and is also due in full upon repayment, subject to an increased default interest in certain limited circumstances. Other Subsequent Events On October 17, 2019, we received a notification letter from the Staff indicating that, as a result of our delay in filing the Annual Report on Form 10-K for the year ending June 30, 2019, we are not in compliance with the timely filing requirements for continued listing under Nasdaq Listing Rule 5250(c)(1). The notification letter stated that under Nasdaq rules, we had until December 16, 2019 to submit a plan to regain compliance with Nasdaq’s continued listing requirements. We regained compliance with this continued listing requirement by filing the Annual Report with the SEC. On November 13, 2019, we received a notification from the Staff that we did not meet the terms of the previously granted extension and as a result, the Staff determined that the Company’s securities would be subject to delisting unless we timely request a hearing before the Nasdaq Hearings Panel. As noted above, the Company was given until December 16, 2019 to submit a plan of compliance for consideration by the Staff, however, pursuant to Nasdaq Listing Rule 5810(c)(2)(A), the Staff informed us that it can longer consider our plan, and as a result, the failure to file the Form 10-K serves as an additional and separate basis for delisting. On November 21, 2019, we received an additional delinquency notification from the Listing Qualifications Staff of The Nasdaq Stock Market LLC due to the continued noncompliance with Nasdaq Listing Rule 5250(c)(1) as a result of the failure to timely file the Quarterly Report on Form 10-Q for the quarter ended September 30, 2019. We have requested a hearing before the Nasdaq Hearings Panel. The hearing request automatically stayed any suspension/delisting action through December 5, 2019. On December 13, 2019, we received notification from the Panel that it had determined to extend the stay of suspension through the completion of the hearings process, which will take place on December 19, 2019. At the hearing, the Company will request the stay be extended through the closing of the previously announced Merger with AFE. However, there can be no assurance that the Panel will grant a further extension to enable the Company to demonstrate compliance that it has regained compliance with all applicable requirements.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Reverse Stock Split	(a) Reverse Stock Split On July 22, 2019, we enacted a 1 for 8 reverse stock split as approved by the shareholders at the Annual Meeting of Stockholders held in June 2019. All share and per share amounts in the condensed consolidated financial statements have been retroactively restated to reflect the reverse stock split.
Basis of Presentation and Principles of Consolidation	(b) Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements for the periods presented are unaudited. Operating results for the three month period ending September 30, 2019 are not necessarily indicative of results to be expected for the fiscal year ending June 30, 2020. The condensed 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 including any contractual relationships in such subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These condensed 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, 2019. 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, 2019 are included below. The condensed 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. The accompanying condensed consolidated interim financial statements have been prepared on the basis of a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As such, conditions exist the may raise substantial doubt regarding the Company’s ability to continue as a going concern. These condensed consolidated interim financial statements do no give effect to any adjustment that would be necessary should the Company be unable to continue as a going concern and therefore need to realize its assets and liquidate its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying condensed consolidated interim financial statements. In the opinion of management, all adjustments which are necessary for fair statements of the results for interim periods have been included.
Accounting for Variable Interest Entities ("VIEs") and Financial Statement Consolidation Criteria	(c) Accounting for Variable Interest Entities (“VIEs”) and Financial Statement Consolidation Criteria 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 the level of our influence in each joint venture. 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. Cost method investments are recorded at cost less any impairments. All 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. The joint ventures which we have entered into may be considered a variable interest entity (“VIE”). We consolidate all VIEs where we are the primary beneficiary. This determination is made at the inception of our involvement with the VIE and is continuously re-assessed. We consider qualitative factors and form a conclusion that we, or another interest holder, has a controlling financial interest in the VIE and, if so, whether it is the primary beneficiary. To determine the primary beneficiary, we consider who has the power to direct activities of the VIE that most significantly impacts the VIE’s performance and has the obligation to absorb losses from or the right to receive benefits of the VIE that could be significant to the VIE. We do not consolidate VIEs where we are not the primary beneficiary. As noted above, we account for these unconsolidated VIEs using either the equity method if we have significant influence but not control, or the cost method and include our net investment on our condensed consolidated balance sheet. Under the equity method, our equity interest in the net income or loss from our investments are recorded in non-operating income/expense on a net basis on our condensed 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.
Revenue Recognition	(d) Revenue Recognition Technology licensing revenue is typically received over the course of a project’s development as milestones are met. We 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. We recognize license fees 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 or as services are provided. There were no license fee revenues was recorded in the quarter ending September 30, 2019 or 2018. There were no revenues related to the sales of services or equipment in the quarter ending September 30, 2019 or 2018.
Use of Estimates	(e) Use of estimates The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Management considers many factors in selecting appropriate operational and financial accounting policies and controls, and in developing the assumptions that are used in the preparation of these consolidated financial statements. Management must apply significant judgment in this process. Among the factors, but not fully inclusive of all factors that may be considered by management in these processes are: the range of accounting policies permitted by accounting principles generally accepted in the United States; management’s understanding of the Company’s business for both historical results and expected future results; the extent to which operational controls exist that provide high degrees of assurance that all desired information to assist in the estimation is available and reliable or whether there is greater uncertainty in the information that is available upon which to base the estimate; expectations of the future performance of the economy, both domestically, and globally, within various areas that serve the Company’s principal customers and suppliers of goods and services; expected rates of exchange, sensitivity and volatility associated with the assumptions used in developing estimates; and whether historical trends are expected to be representative of future trends. The estimation process often times may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that lies within that range of reasonable estimates based upon the risks associated with the variability that might be expected from the future outcome and the factors considered in developing the estimate. Management attempts to use its business and financial accounting judgment in selecting the most appropriate estimate, however, actual amounts could and will differ from those estimates.
Fair Value Measurements	(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 Company measures equity investments without readily determinable fair value on a non-recurring basis. The following table summarizes the assets of the Company measured at fair value as of September 30, 2019 and June 30, 2019 (in thousands): September 30, 2019 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Money Market Funds 220 (2) — — 220 Liabilities: Derivative Liabilities $ — $ — $ 53 $ 53 June 30, 2019 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Money Market Funds 369 (2) — — 369 Liabilities: Derivative Liabilities $ — $ — $ 87 $ 87 (1) Amount included in current assets on the Company’s consolidated balance sheets. (2) Amount included in cash and cash equivalents on the Company’s consolidated balance sheets. The following table sets forth the changes in the estimated fair value for our Level 3 classified derivative liabilities (in thousands): Derivative liabilities balance - June 30, 2019 $ 87 Change in fair value (34 ) Derivative liabilities balance – September 30, 2019 $ 53 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 other financial instruments, including accounts receivable and accounts payable, approximate their fair values due to the short maturities on those instruments. Our Debentures are recorded at face value of $8.0 million and fair value is unable to be determined due to lack of third-party quotes and the Company’s distressed financial position. The derivative liabilities are measured at fair value using a Monte Carlo simulation valuation methodology. (See also Note 6 – Derivative Liabilities

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Schedule of Assets and Liabilities Measured on Recurring and Nonrecurring Basis	The following table summarizes the assets of the Company measured at fair value as of September 30, 2019 and June 30, 2019 (in thousands): September 30, 2019 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Money Market Funds 220 (2) — — 220 Liabilities: Derivative Liabilities $ — $ — $ 53 $ 53 June 30, 2019 Level 1 Level 2 Level 3 Total Assets: Certificates of Deposit $ — $ 50 (1) $ — $ 50 Money Market Funds 369 (2) — — 369 Liabilities: Derivative Liabilities $ — $ — $ 87 $ 87 (1) Amount included in current assets on the Company’s consolidated balance sheets. (2) Amount included in cash and cash equivalents on the Company’s consolidated balance sheets.
Summary of Changes in Estimated Fair Value of Derivative Liabilities	The following table sets forth the changes in the estimated fair value for our Level 3 classified derivative liabilities (in thousands): Derivative liabilities balance - June 30, 2019 $ 87 Change in fair value (34 ) Derivative liabilities balance – September 30, 2019 $ 53

Current Projects (Tables)

Current Projects (Tables)	3 Months Ended
	Sep. 30, 2019
Australian Future Energy Pty Ltd [Member]
Schedule of Condensed Financial Information	The following summarizes unaudited condensed financial information of AFE for the three months ended September 30, 2019 and 2018 and as of September 30, 2019 and June 30, 2019 (in thousands): September 30, 2019 September 30, 2018 Income Statement data: Net Income (Loss) $ (293 ) $ 313 September 30, 2019 June 30, 2019 Balance sheet data: Total assets $ 1,322 $ 1,555 Total Equity 610 324
TSEC Joint Venture [Member]
Schedule of Condensed Financial Information	The following summarizes unaudited condensed financial information of TSEC Joint Venture for the three months ended September 30, 2019 and 2018 and as of September 30, 2019 and June 30, 2019 (in thousands): Income Statement data: September 30, 2019 September 30, 2018 Revenue $ — $ — Operating loss (287 ) (207 ) Net loss (287 ) (207 ) Balance sheet data: September 30, 2019 June 30, 2019 Current assets $ 3,393 $ 3,491 Noncurrent assets 83 86 Current liabilities 3,841 3,661 Noncurrent liabilities — — Equity (365 ) (84 )

Senior Secured Debentures (Tabl

Senior Secured Debentures (Tables)	3 Months Ended
	Sep. 30, 2019
Warrant [Member]
Schedule of Fair Value Assumptions Used	To execute the model and value the warrants, certain assumptions were needed as noted below: Valuation Date: October 24, 2017 Warrant Expiration Date: October 31, 2022 Total Number of Warrants Issued: 133,750 Contracted Conversion Ratio: 1:1 Warrant Exercise Price (USD) 32.00 Next Capital Raise Date: October 31, 2018 Threshold exercise price post Capital raise: 20.08 Spot Price (USD): 26.53 Expected Life (Years): 5.0 Volatility: 66.0% Volatility (Per-period Equivalent): 19.1% Risk Free Interest Rate: 2.04% Risk Free Rate (Per-period Equivalent): 0.17% Nominal Value (USD Mn): 4.0 No of Shares on conversion (Mn): 0.1

Derivative Liabilities (Tables)

Derivative Liabilities (Tables)	3 Months Ended
	Sep. 30, 2019
Derivative [Member]
Summary of Fair Value Measurement Inputs and Valuation Techniques	To execute the model and value the derivatives, certain assumptions were needed as noted below: Assumptions Year Ended June 30, 2019 Quarter Ended September 30, 2019 Warrant Issue Date: October 24, 2017 October 24, 2017 Valuation Date: June 30, 2019 September 30, 2019 Warrant Expiration Date: October 31, 2022 October 31, 2022 Total Number of Warrants Issued: 133,750 133,750 Warrant Exercise Price (USD): 32.00 32.00 Next Capital Raise Date: (1) February 29, 2020 February 29, 2020 Threshold Exercise Price Post Capital Raise: 6.40 6.40 Spot Price (USD): 2.48 1.75 Expected Life (Years): 3.3 3.1 Volatility: 75.0 % 80.0 % Volatility (Per-period Equivalent): 21.7 % 23.1 % Risk Free Interest Rate: 1.73 % 1.56 % Risk Free Rate (Per-period Equivalent): 0.14 % 0.13 % Nominal Value (USD Mn): 4.3 4.3 No. of Shares on Conversion (Mn): 0.1 0.1 Contracted Conversion Ratio: 1:1 1:1 Fair Values (in thousands) Fair Value without Anti-Dilution Protection: $ 15 $ 9 Fair Value of Embedded Derivative: 72 44 Fair Value of the Warrants Issued: $ 87 $ 53 Gain/(Loss) on Fair Value Adjustments to Derivative Liabilities $ 1,877 $ 34 (1) Next Capital Raise Date was assumed to be within a year of the debt offering and each valuation date

Equity (Tables)

Equity (Tables)	3 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Summary of Stock Option Activity	Stock option activity during the three months ended September 30, 2019 was as follows: Number of Underlying Stock Options Outstanding at June 30, 2019 166,477 Granted — Exercised — Forfeited (14,784 ) Outstanding at September 30, 2019 151,693 Exercisable at September 30, 2019 151,343
Summary of Stock Warrants Activity	Stock warrants activity during the three months ended September 30, 2019 were as follows: Number of Underlying Warrants Outstanding at June 30, 2019 212,638 Granted — Exercised — Forfeited — Outstanding at September 30, 2019 212,638 Exercisable at September 30, 2019 212,638
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation	The following table presents stock based compensation expense attributable to stock option awards issued under the 2015 Incentive Plan and attributable to warrants and common stock issued to consulting firms as compensation (in thousands): Three Months Ended September 30, 2019 2018 Incentive Plans $ 1 $ 143 Common stock — 71 Total stock-based expense $ 1 $ 214

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of Reconciliation of Revenue from Segments to Consolidated	The following table presents statements of continuing operations data and assets by segment (in thousands): Three Months Ended September 30, 2019 2018 Depreciation and amortization: SES Foreign Operating $ — $ 2 Technology licensing and related services — — Corporate 13 9 Total depreciation and amortization $ 13 $ 11 Operating loss: SES Foreign Operating $ (70 ) $ (106 ) Technology licensing and related services (125 ) (495 ) Corporate (417 ) (1,087 ) Total operating loss $ (612 ) $ (1,688 ) Equity income of joint ventures: SES Foreign Operating $ — $ 75 Technology licensing and related services — — Corporate — — Total equity income (losses) of joint ventures $ — $ 75 Interest expense SES Foreign Operating $ — $ — Technology licensing and related services — — Corporate 344 324 Total interest expense $ 344 $ 324
Schedule of Reconciliation of Assets from Segment to Consolidated	September 30, 2019 June 30, 2019 Assets: SES Foreign Operating $ 103 $ 215 Technology licensing and related services 1,015 1,018 Corporate 945 1,423 Total assets $ 2,063 $ 2,656

Business and Liquidity (Details

Business and Liquidity (Details Narrative) - USD ($) $ in Thousands	Oct. 24, 2019	Oct. 14, 2019	Oct. 10, 2019	Dec. 16, 2019	Sep. 30, 2019	Jun. 30, 2019
Cash and cash equivalents					$ 382	$ 871
Negative working capital					800
Debt instrument, face amount					$ 8,000
Subsequent Event [Member]
Cash and cash equivalents				$ 400
Subsequent Event [Member] | T.R. Winston and Company, LLC [Member]
Proceeds from private placement			$ 140
Percentage of cash fee			7.00%
Purchase of warrants, shares			100,000
Subsequent Event [Member] | Merger Debentures [Member] | AFE [Member]
Proceeds from debt			$ 350
Debt rate, percentage			11.00%
Debt maturities repayment terms, description			The repayment date is the earlier of five days after completion of the Merger transaction or the later of March 31, 2020 or three months following the vote of the shareholders on the Merger.
Subsequent Event [Member] | Securities Purchase and Exchange Agreements [Member] | Common Stock [Member]
Purchase of warrants			$ 4,000
Subsequent Event [Member] | Securities Purchase and Exchange Agreements [Member] | 11% Senior Secured Debentures [Member]
Additional debt financing			2,000
Debt instrument, face amount			2,000
Subsequent Event [Member] | Securities Purchase and Exchange Agreements [Member] | Merger Debentures [Member]
Debt instrument, face amount			2,000
Subsequent Event [Member] | Securities Purchase and Exchange Agreements [Member] | Merger Debentures One [Member]
Debt instrument, face amount		$ 1,000
Proceeds from agreement		1,000
Legal costs and escrow fees		$ 966
Subsequent Event [Member] | Securities Purchase and Exchange Agreements [Member] | Merger Debentures Two [Member]
Debt instrument, face amount			500
Subsequent Event [Member] | Securities Purchase and Exchange Agreements [Member] | Merger Debentures Three [Member]
Debt instrument, face amount			$ 500
Subsequent Event [Member] | Loan Agreement [Member] | AFE [Member]
Loans payable	$ 350
Subsequent Event [Member] | Loan Agreement [Member] | Merger Debentures [Member] | AFE [Member]
Proceeds from debt	$ 2,000
Debt rate, percentage	11.00%
Debt maturities repayment terms, description	Under the loan agreement, we loaned $350,000 to AFE, which is due in full on the later of March 31, 2020 or within five days following the closing of the Merger. If the Merger does not close, the loan will mature on March 31, 2020 or three months following the special stockholder meeting called to approve the Merger.
Subsequent Event [Member] | United States [Member]
Cash and cash equivalents				347
Subsequent Event [Member] | CHINA [Member]
Cash and cash equivalents				$ 40

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	Jul. 22, 2019	Sep. 30, 2019	Sep. 30, 2018
Reverse stock split	1 for 8 reverse stock split
Revenue
Debentures face value		8,000
License Fee [Member]
Revenue
Service and Equipment [Member]
Revenue

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands		Sep. 30, 2019	Jun. 30, 2019
Derivative Liabilities		$ 53	$ 87
Fair Value, Inputs, Level 1 [Member]
Derivative Liabilities
Fair Value, Inputs, Level 2 [Member]
Derivative Liabilities
Fair Value, Inputs, Level 3 [Member]
Derivative Liabilities		53	87
Certificates of Deposit [Member]
Assets, fair value		50	50
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, fair value
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, fair value	[1]	50	50
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, fair value
Money Market Funds [Member]
Assets, fair value		220	369
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, fair value	[2]	220	369
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, fair value
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, fair value
[1]	Amount included in current assets on the Company's consolidated balance sheets.
[2]	Amount included in cash and cash equivalents on the Company's consolidated balance sheets.

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Summary of Changes in Estimated Fair Value of Derivative Liabilities (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Accounting Policies [Abstract]
Derivative liabilities balance	$ 87
Change in fair value	(34)
Derivative liabilities balance	$ 53

Current Projects (Details Narra

Current Projects (Details Narrative) ¥ in Thousands, $ in Thousands

Apr. 04, 2019USD ($)shares

May 10, 2017USD ($)

Aug. 31, 2018USD ($)

Sep. 30, 2019USD ($)

Jun. 30, 2018USD ($)

Jun. 30, 2018CNY (¥)

Jun. 30, 2019USD ($)

Apr. 29, 2019

Oct. 31, 2018

Jan. 31, 2018USD ($)

Jan. 31, 2018CNY (¥)

Dec. 31, 2017USD ($)

Dec. 31, 2017CNY (¥)

Aug. 31, 2017

Aug. 31, 2009

Gain on termination of option

$ 70

Australian Future Energy Pty Ltd [Member]

Services revenue, delivery of a process design package

$ 2,000

Equity method investments

$ 0

$ 0

Australian Future Energy Pty Ltd [Member] | Second Largest Shareholder [Member]

Ownership percentage purchased

35.00%

Australian Future Energy Pty Ltd [Member] | Synthesis Energy Systems Technology, LLC [Member]

Ownership percentage purchased

100.00%

Consideration payable in acquisition to parent company, description

(i) an additional $2.0 million in three equal installments, with the first installment paid at closing and the remainder over the subsequent twelve months, and (ii) $3.8 million on the earlier of the closing of a construction financing by AFE or five years from closing.

Shares issued in settlement of invoices | shares

1,000,000

Amount paid in settlement of invoices

$ 100

Stock issued during termination | shares

2,000,000

Australian Future Energy Pty Ltd [Member] | Synthesis Energy Systems Technology, LLC [Member] | First Installment Paid [Member]

Payments for installments

$ 2,000

Australian Future Energy Pty Ltd [Member] | Synthesis Energy Systems Technology, LLC [Member] | Earlier of The Closing [Member]

Payments for installments

3,800

Australian Future Energy Pty Ltd [Member] | Synthesis Energy Systems Technology, LLC [Member] | First Million [Member]

Additional investment

70

Accounts receivable with the fair value

100

Accounts receivable write-off

30

Australian Future Energy Pty Ltd [Member] | Synthesis Energy Systems Technology, LLC [Member] | Second Million [Member]

Deferred liability of down payment on purchase of subsidiary

$ 70

Cape River Resources Pty Ltd [Member]

Ownership percentage purchased

38.00%

Equity method investments

0

Cape River Resources Pty Ltd [Member] | One Board Director [Member]

Ownership percentage purchased

15.00%

Cape River Resources Pty Ltd [Member] | Second Largest Shareholder [Member]

Ownership percentage purchased

38.00%

Pentland Coal Mine [Member] | GNE [Member]

Ownership percentage purchased

100.00%

Batchfire Resources Pty Ltd [Member]

Ownership percentage purchased

7.00%

Cost method investments

$ 0

0

Batchfire Resources Pty Ltd [Member] | Maximum [Member]

Ownership percentage purchased

11.00%

Batchfire Resources Pty Ltd [Member] | Minimum [Member]

Ownership percentage purchased

7.00%

Townsville Metals Infrastructure Pty Ltd [Member]

Equity method investments

$ 0

0

Townsville Metals Infrastructure Pty Ltd [Member] | One Board Director [Member]

Ownership percentage purchased

15.00%

Townsville Metals Infrastructure Pty Ltd [Member] | Second Largest Shareholder [Member]

Ownership percentage purchased

38.00%

SES EnCoal Energy [Member]

Ownership percentage purchased

50.00%

Equity method investments

$ 19

19

Payments to acquire equity method investments

$ 11

Yima Joint Venture [Member]

Ownership percentage purchased

25.00%

Yima Coal Industry Group [Member]

Ownership percentage purchased

75.00%

Cost method investments

0

0

Due from joint ventures

$ 2,500

$ 2,500

Proceeds from reimbursement of construction costs by joint venture

$ 900

Yima Coal Industry Group [Member] | Chinese Renminbi Yuan [Member]

Due from joint ventures | ¥

¥ 16,000

¥ 16,000

Proceeds from reimbursement of construction costs by joint venture | ¥

¥ 6,150

TSEC Joint Venture [Member]

Ownership percentage purchased

25.00%

Equity method investments

$ 0

$ 0

TSEC Joint Venture [Member] | Suzhou Thvow Technology Co. Ltd. [Member]

Ownership percentage purchased

50.00%

TSEC Joint Venture [Member] | Invovative Coal Chemical Design Institute [Member]

Ownership percentage purchased

25.00%

Current Projects - Schedule of

Current Projects - Schedule of Condensed Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
AFE [Member]
Net Income (Loss)	$ (293)	$ 313
Total assets	1,322		$ 1,555
Total Equity	610		324
TSEC Joint Venture [Member]
Revenue
Operating loss	(287)	(207)
Net Income (Loss)	(287)	$ (207)
Current assets	3,393		3,491
Noncurrent assets	83		86
Current liabilities	3,841		3,661
Noncurrent liabilities
Total Equity	$ (365)		$ (84)

Senior Secured Debentures (Deta

Senior Secured Debentures (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Oct. 24, 2017	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018
Debt instrument, face amount		$ 8,000
Debt instrument, term		5 years
Class of warrant or right, number of securities called by warrants or rights	125,000	133,750	133,750
Class of warrant or right, exercise price of warrants or rights	$ 32	$ 32	$ 32
Interest expense		$ 344		$ 324
Debenture Warrants and Placement Agent Warrant [Member]
Fair value of warrants outstanding	$ 8,000
Debt issuance costs	100
Discount of debentures	2,000
Placement Agent Warrant [Member]
Interest expense		$ 300	$ 300
T.R. Winston and Company, LLC [Member]
Net offering proceeds from the sale of the debentures and warrants	7,400
Cash fee paid	$ 560
Percentage of face amount of debentures	7.00%
Shares of warrants	8,750
Percentage of shares to purchaser	7.00%
Fair value of warrants outstanding	$ 137
Senior Secured Debentures [Member]
Debt instrument, face amount	$ 8,000
Debt instrument, term	5 years
Debt Instrument, interest rate, stated percentage	11.00%
Debt Instrument, interest rate, in the event of default	18.00%
Debt instrument maturity date	Oct. 23, 2022
Warrants value after valuation exercise, per share	$ 15.62
Warrants value after valuation exercise	$ 2,000
Discount of debentures	$ 2,000
Debt instrument, interest rate, effective percentage		18.00%

Senior Secured Debentures - Sch

Senior Secured Debentures - Schedule of Fair Value Assumptions Used (Details) $ / shares in Units, $ in Thousands		3 Months Ended	12 Months Ended
		Sep. 30, 2019USD ($)$ / sharesshares	Jun. 30, 2019USD ($)$ / sharesshares	Oct. 24, 2017$ / sharesshares
Valuation Date		Sep. 30, 2019	Jun. 30, 2019
Warrant Expiration Date		Oct. 31, 2022	Oct. 31, 2022
Total Number of Warrants Issued | shares		133,750	133,750	125,000
Contracted Conversion Ratio		1	1
Class of warrant or right, exercise price of warrants or rights		$ 32	$ 32	$ 32
Next Capital Raise Date	[1]	Feb. 29, 2020	Feb. 29, 2020
Nominal Value (USD Mn) | $		$ 4,300	$ 4,300
No. of Shares on Conversion (Mn) | shares		100,000	100,000
Measurement Input, Threshold Exercise Price Post Capital Raise [Member]
Derivative liability, measurement input		6.40	6.40
Measurement Input, Spot Price [Member]
Derivative liability, measurement input		1.75	2.48
Warrant [Member]
Valuation Date		Oct. 24, 2017
Warrant Expiration Date		Oct. 31, 2022
Total Number of Warrants Issued | shares		133,750
Contracted Conversion Ratio		1
Class of warrant or right, exercise price of warrants or rights		$ 32
Next Capital Raise Date		Oct. 31, 2018
Nominal Value (USD Mn) | $		$ 4,000
No. of Shares on Conversion (Mn) | shares		100,000
Warrant [Member] | Measurement Input, Threshold Exercise Price Post Capital Raise [Member]
Derivative liability, measurement input		20.08
Warrant [Member] | Measurement Input, Spot Price [Member]
Derivative liability, measurement input		26.53
Warrant [Member] | Expected Life of Award [Member]
Fair value assumptions, Expected Life (Years)		5 years
Warrant [Member] | Measurement Input, Price Volatility [Member]
Fair value assumptions, percentage		66
Warrant [Member] | Measurement Input, Price Volatility (Per-period Equivalent) [Member]
Fair value assumptions, percentage		19.1
Warrant [Member] | Risk Free Rate of Return [Member]
Fair value assumptions, percentage		2.04
Warrant [Member] | Measurement Input, Risk Free Interest Rate (Per-period Equivalent) [Member]
Fair value assumptions, percentage		0.17
[1]	Next Capital Raise Date was assumed to be within a year of the debt offering and each valuation date

Derivative Liabilities - Summar

Derivative Liabilities - Summary of Fair Value Measurement Inputs and Valuation Techniques (Details) $ / shares in Units, $ in Thousands		3 Months Ended		12 Months Ended
		Sep. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2018USD ($)	Jun. 30, 2019USD ($)$ / sharesshares	Oct. 24, 2017$ / sharesshares
Warrant Issue Date		Oct. 24, 2017		Oct. 24, 2017
Valuation Date		Sep. 30, 2019		Jun. 30, 2019
Warrant Expiration Date		Oct. 31, 2022		Oct. 31, 2022
Total Number of Warrants Issued | shares		133,750		133,750	125,000
Class of warrant or right, exercise price of warrants or rights | $ / shares		$ 32		$ 32	$ 32
Next Capital Raise Date	[1]	Feb. 29, 2020		Feb. 29, 2020
Nominal Value (USD Mn)		$ 4,300		$ 4,300
No. of Shares on Conversion (Mn) | shares		100,000		100,000
Contracted Conversion Ratio		1		1
Fair Value without Anti-Dilution Protection		$ 9		$ 15
Fair Value of Embedded Derivative		44		72
Fair Value of the Warrants Issued		53		87
Gain/(Loss) on Fair Value Adjustments to Derivative Liabilities		$ 34	$ 808	$ 1,877
Measurement Input, Threshold Exercise Price Post Capital Raise [Member]
Threshold Exercise Price Post Capital Raise | $ / shares		6.40		6.40
Measurement Input, Spot Price [Member]
Threshold Exercise Price Post Capital Raise | $ / shares		1.75		2.48
Expected Life of Award [Member]
Fair value assumptions, Expected Life (Years)		3 years 1 month 6 days		3 years 3 months 19 days
Measurement Input, Price Volatility [Member]
Fair value assumptions, percentage		8000.00%		7500.00%
Measurement Input, Price Volatility (Per-period Equivalent) [Member]
Fair value assumptions, percentage		2310.00%		2170.00%
Risk Free Rate of Return [Member]
Fair value assumptions, percentage		156.00%		173.00%
Measurement Input, Risk Free Interest Rate (Per-period Equivalent) [Member]
Fair value assumptions, percentage		13.00%		14.00%
[1]	Next Capital Raise Date was assumed to be within a year of the debt offering and each valuation date

Risks and Uncertainties (Detail

Risks and Uncertainties (Details Narrative) - USD ($) $ in Thousands	Oct. 24, 2019	Oct. 14, 2019	Oct. 10, 2019	Mar. 31, 2019	Sep. 30, 2019
Debt instrument, face amount					$ 8,000
Nasdaq Stock Market LLC [Member]
Minimum capital requirement, amount				$ 2,500
Subsequent Event [Member] | T.R. Winston and Company, LLC [Member]
Proceeds from private placement			$ 140
Percentage of cash fee			7.00%
Subsequent Event [Member] | Merger Debentures [Member] | AFE [Member]
Proceeds from debt			$ 350
Debt rate, percentage			11.00%
Debt maturities repayment terms, description			The repayment date is the earlier of five days after completion of the Merger transaction or the later of March 31, 2020 or three months following the vote of the shareholders on the Merger.
Subsequent Event [Member] | Securities Purchase and Exchange Agreements [Member] | Merger Debentures [Member]
Purchase of warrants			$ 2,000
Debt instrument, face amount			2,000
Subsequent Event [Member] | Securities Purchase and Exchange Agreements [Member] | Merger Debentures One [Member]
Debt instrument, face amount		$ 1,000
Proceeds from agreement		1,000
Legal costs and escrow fees		$ 966
Subsequent Event [Member] | Securities Purchase and Exchange Agreements [Member] | Merger Debentures Two [Member]
Debt instrument, face amount			500
Subsequent Event [Member] | Securities Purchase and Exchange Agreements [Member] | Merger Debentures Three [Member]
Debt instrument, face amount			$ 500
Subsequent Event [Member] | Loan Agreement [Member] | AFE [Member]
Loans payable	$ 350
Subsequent Event [Member] | Loan Agreement [Member] | Merger Debentures [Member] | AFE [Member]
Proceeds from debt	$ 2,000
Debt rate, percentage	11.00%
Debt maturities repayment terms, description	Under the loan agreement, we loaned $350,000 to AFE, which is due in full on the later of March 31, 2020 or within five days following the closing of the Merger. If the Merger does not close, the loan will mature on March 31, 2020 or three months following the special stockholder meeting called to approve the Merger.

GTI License Agreement (Details

GTI License Agreement (Details Narrative) - GTI License Agreement [Member]	Nov. 01, 2009
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 non-approval notice regarding sublicense	10 days
Period of updates on any potential subsidiaries	90 days
Period of restriction from disclosing confidential information	10 years

Equity (Details Narrative)

Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 12, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Jun. 30, 2015
Preferred stock, shares authorized		20,000,000		20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Stock option awards vesting period, description		Stock option awards generally vest ratably over a one to four year period and expire ten years after the date of grant.
Vesting period		10 years
Restricted stock outstanding
2015 and 2005 Incentive Plans [Member]
Share-based compensation arrangement by share-based payment award, number of shares authorized		328,125
2015 Incentive Plan [Member]
Share-based compensation arrangement by share-based payment award, shares available for future issuance				41,880
ILL-Sino Development Inc [Member]
Stock issued during period, shares issued for services	2,862
Shares issued, price per share	$ 24.64
Stock issuance expense			$ 71

Equity - Summary of Stock Optio

Equity - Summary of Stock Option Activity (Details)	3 Months Ended
	Sep. 30, 2019shares
Equity [Abstract]
Number of Underlying Stock Options, Outstanding, Beginning balance	166,477
Number of Underlying Stock Options, Granted
Number of Underlying Stock Options, Exercised
Number of Underlying Stock Options, Forfeited	(14,784)
Number of Underlying Stock Options, Outstanding, Ending balance	151,693
Number of Underlying Stock Options, Exercisable, Ending balance	151,343

Equity - Summary of Stock Warra

Equity - Summary of Stock Warrants Activity (Details)	3 Months Ended
	Sep. 30, 2019shares
Equity [Abstract]
Number of Underlying Warrants, Outstanding, Beginning balance	212,638
Number of Underlying Warrants, Granted
Number of Underlying Warrants, Exercised
Number of Underlying Warrants, Forfeited
Number of Underlying Warrants, Outstanding, Ending balance	212,638
Number of Underlying Warrants, Exercisable, Ending balance	212,638

Equity - Schedule of Compensati

Equity - Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Total stock-based expense	$ 1	$ 214
Common Stock [Member]
Total stock-based expense		71
Incentive Plans [Member]
Total stock-based expense	$ 1	$ 143

Net Loss Per Share (Details Nar

Net Loss Per Share (Details Narrative) - shares shares in Thousands	Jul. 22, 2019	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Reverse stock split	1 for 8 reverse stock split
Antidilutive securities excluded from computation of earnings per share		400	400

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2019	Nov. 30, 2018	Sep. 30, 2019
Debt instrument, term			5 years
Debt instrument maturity date			October 2022
New Office Lease Agreement [Member]
Operating leases, rent expense per month		$ 3,300
Lessee, operating lease term		12 months
Subsequent Event [Member] | Office Lease Agreement [Member]
Extended lease term description	We extended the office lease agreement through March 31, 2020 with rental related payments of approximately $3,900 per month, subject to additions based on additional services and usages each month.
Operating leases, rent expense per month	$ 3,900

Segment Information - Schedule

Segment Information - Schedule of Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Depreciation and amortization	$ 13	$ 11
Operating loss	(612)	(1,688)
Equity income (losses) of joint ventures		75
Interest expense	344	324
SES Foreign Operating [Member]
Depreciation and amortization		2
Operating loss	(70)	(106)
Equity income (losses) of joint ventures		75
Interest expense
Technology Licensing and Related Services [Member]
Depreciation and amortization
Operating loss	(125)	(495)
Equity income (losses) of joint ventures
Interest expense
Corporate [Member]
Depreciation and amortization	13	9
Operating loss	(417)	(1,087)
Equity income (losses) of joint ventures
Interest expense	$ 344	$ 324

Segment Information - Schedul_2

Segment Information - Schedule of Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Assets	$ 2,063	$ 2,656
SES Foreign Operating [Member]
Assets	103	215
Technology Licensing and Related Services [Member]
Assets	1,015	1,018
Corporate [Member]
Assets	$ 945	$ 1,423

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) $ / shares in Units, shares in Thousands, $ in Thousands	Oct. 24, 2019USD ($)	Oct. 10, 2019USD ($)Days$ / sharesshares	Sep. 30, 2019$ / shares	Jun. 30, 2019$ / shares	Oct. 24, 2017$ / shares
Exercise price of warrants | $ / shares			$ 32	$ 32	$ 32
Subsequent Event [Member]
Legal costs and escrow fees		$ 966
Subsequent Event [Member] | On or Before October 14, 2019 [Member]
Repayment of debt		$ 1,000
Subsequent Event [Member] | Debenture Warrants [Member] | Purchasers [Member]
Exercise price of warrants | $ / shares		$ 6
Subsequent Event [Member] | Merger Debentures [Member]
Share issued price per share, description		Interest on the Merger Debentures is payable quarterly in arrears, at the option of the holder, in the form of shares of common stock, to be issued at a price of the lower of $3.00 per share and the 10-day trailing VWAP for the period immediately prior to the due date of the interest payment, or in kind. The Merger Debentures are convertible at any time by the holders into shares of common stock at a price of $3.00 per share, and the Company can require conversion into shares of common stock at a price of $3.00 per share if the common stock trades at or above $10.00 per share for ten consecutive trading days.
Share issued price per share | $ / shares		$ 3
Conversion price per share | $ / shares		$ 3
Trading days | Days		10
Subsequent Event [Member] | Merger Debentures [Member] | Common Stock Trades or Above [Member]
Conversion price per share | $ / shares		$ 10
Subsequent Event [Member] | Merger Debentures [Member] | New Placement Agent Warrant [Member]
Exercise price of warrants | $ / shares		$ 3
Warrants exercisable term		5 years
Subsequent Event [Member] | Merger Debentures [Member] | Series A Merger Warrants [Member]
Exercise price of warrants | $ / shares		$ 3
Warrants exercisable term		5 years
Subsequent Event [Member] | Merger Debentures [Member] | Series B Merger Warrants [Member]
Exercise price of warrants | $ / shares		$ 6
Warrants exercisable term		5 years
Subsequent Event [Member] | AFE [Member] | Merger Debentures [Member]
Proceeds from debt		$ 350
Debt rate, percentage		11.00%
Debt maturities repayment terms, description		The repayment date is the earlier of five days after completion of the Merger transaction or the later of March 31, 2020 or three months following the vote of the shareholders on the Merger.
Subsequent Event [Member] | Merger Agreement [Member] | AFE [Member]
Shares issued in acquisition to parent company | shares		3,875
Subsequent Event [Member] | Share Exchange Agreement [Member]
Ownership percentage purchased		100.00%
Subsequent Event [Member] | Share Exchange Agreement [Member] | Batchfire Resources Pty Ltd [Member]
Ownership percentage purchased		25.00%
Subsequent Event [Member] | Merger Agreement [Member] | New Placement Agent Warrant [Member]
Exercise price of warrants | $ / shares		$ 6
Subsequent Event [Member] | Merger Agreement [Member] | Merger Warrants [Member] | On or Before October 14, 2019 [Member]
Proceeds from issuance of senior secured debt		$ 1,000
Subsequent Event [Member] | Merger Agreement [Member] | Merger Warrants [Member] | Upon the filing of the proxy statement [Member]
Proceeds from issuance of senior secured debt		500
Subsequent Event [Member] | Merger Agreement [Member] | Merger Warrants [Member] | Within Two Business Days of Stockholder's Approval [Member]
Proceeds from issuance of senior secured debt		500
Subsequent Event [Member] | Merger Agreement [Member] | Placement Agent [Member]
Cash fee paid as compensation		$ 140
Aggregate fee, percentage		7.00%
Subsequent Event [Member] | Merger Agreement [Member] | Merger Debentures [Member] | New Placement Agent Warrant [Member]
Proceeds from issuance of senior secured debt		$ 2,000
Subsequent Event [Member] | Merger Agreement [Member] | New Debentures [Member] | Purchasers [Member]
Proceeds from debt		$ 2,000
Subsequent Event [Member] | Loan Agreement [Member] | AFE [Member]
Loans payable	$ 350
Subsequent Event [Member] | Loan Agreement [Member] | AFE [Member] | Merger Debentures [Member]
Proceeds from debt	$ 2,000
Debt rate, percentage	11.00%
Debt maturities repayment terms, description	Under the loan agreement, we loaned $350,000 to AFE, which is due in full on the later of March 31, 2020 or within five days following the closing of the Merger. If the Merger does not close, the loan will mature on March 31, 2020 or three months following the special stockholder meeting called to approve the Merger.