Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Sep. 18, 2015 | Dec. 31, 2014 | |
Document And Entity Information | |||
Entity Registrant Name | ALANCO TECHNOLOGIES INC | ||
Entity Central Index Key | 98,618 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 1,065,900 | ||
Entity Common Stock, Shares Outstanding | 4,982,400 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 788,900 | $ 1,215,600 |
Accounts receivable - trade, net | 45,900 | 96,800 |
Other receivables - related party | 4,200 | 9,200 |
Note receivable, current - related party | 60,000 | 300,000 |
Marketable securities | 0 | 560,100 |
Prepaid expenses and other current assets | 164,500 | 212,700 |
Total current assets | 1,063,500 | 2,394,400 |
LAND, PROPERTY AND EQUIPMENT, NET | 3,938,600 | 4,163,000 |
OTHER ASSETS | ||
Note receivable, long-term - related party | 262,800 | 109,000 |
Trust account-Asset retirement obligation | 67,400 | 48,700 |
Prepaid royalties, long-term | 0 | 50,000 |
TOTAL ASSETS | 5,332,300 | 6,765,100 |
CURRENT LIABILITIES | ||
Accounts payable | 151,100 | 88,400 |
Accrued expenses | 191,800 | 189,600 |
Contingent payments, current | 50,000 | 50,000 |
Total current liabilities | 392,900 | 328,000 |
LONG-TERM LIABILITIES | ||
Contingent payments, long-term | 603,900 | 1,138,300 |
Asset retirement obligation, long-term | 429,700 | 423,700 |
TOTAL LIABILITIES | $ 1,426,500 | $ 1,890,000 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Preferred Stock | $ 0 | $ 0 |
Class A - 75,000,000 no par shares authorized, 4,982,400 and 4,962,500 shares issued and outstanding at June 30, 2015 and 2014, respectively | 109,159,300 | 109,106,800 |
Accumulated Other Comprehensive Income | 0 | 121,200 |
Accumulated Deficit | (105,253,500) | (104,352,900) |
Total shareholders' equity | 3,905,800 | 4,875,100 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ 5,332,300 | $ 6,765,100 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jun. 30, 2015 | Jun. 30, 2014 |
Consolidated Balance Sheets | ||
Class A Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Class A Common Stock, Shares Issued | 4,982,400 | 4,962,500 |
Class A Common Stock, Shares Outstanding | 4,982,400 | 4,962,500 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Consolidated Statements Of Operations | ||
NET REVENUES | $ 785,700 | $ 638,500 |
Cost of revenues | (925,700) | (437,200) |
GROSS PROFIT (LOSS) | (140,000) | 201,300 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | ||
Corporate expenses | 226,500 | 307,800 |
Alanco Energy Services | 734,000 | 810,200 |
Stock-based compensation | 73,300 | 0 |
Impairment charge | 0 | 160,500 |
Selling general and administrative expenses | 1,033,800 | 1,278,500 |
OPERATING LOSS | (1,173,800) | (1,077,200) |
OTHER INCOME & EXPENSES | ||
Interest income | 41,500 | 37,500 |
Gain on sale of StarTrak | 0 | 121,700 |
Gain on sale of marketable securities | 103,200 | 913,800 |
Other income (expense), net | 128,500 | (102,000) |
NET LOSS | $ (900,600) | $ (106,200) |
NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED | ||
NET LOSS PER SHARE - BASIC AND DILUTED | $ (0.18) | $ (0.02) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 4,986,400 | 4,944,600 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net Loss | $ (900,600) | $ (106,200) |
Reclassification adjustment for gain included in net loss | (103,200) | (913,800) |
Net unrealized loss on marketable securities held at June 30, | 0 | (65,600) |
Net unrealized gain (loss) on marketable securities sold during the year | (18,000) | 550,700 |
Comprehensive Loss | $ (1,021,800) | $ (534,900) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Common Stock | Treasury Stock | Accumulated Other Comprehensive Income / Loss | Accumulated Deficit | Total |
Beginning Balance, Shares at Jun. 30, 2013 | 4,989,300 | 0 | |||
Beginning Balance, Amount at Jun. 30, 2013 | $ 109,121,200 | $ 0 | $ 549,900 | $ (104,246,700) | $ 5,424,400 |
Shares issued for services, Shares | 30,000 | 0 | |||
Shares issued for services, Amount | $ 11,700 | $ 0 | 0 | 0 | 11,700 |
Treasury Shares retired, Shares | (56,800) | (56,800) | |||
Treasury Shares retired, Amount | $ (26,100) | $ (26,100) | 0 | 0 | (52,200) |
Shares of Alanco common stock repurchased, Shares | 0 | 56,800 | |||
Shares of Alanco common stock repurchased, Amount | $ 0 | $ 26,100 | 0 | 0 | 26,100 |
Other comprehensive income adjustment | 0 | 0 | (428,700) | 0 | (428,700) |
Net loss | $ 0 | $ 0 | 0 | (106,200) | (106,200) |
Ending Balance, Shares at Jun. 30, 2014 | 4,962,500 | 0 | |||
Ending Balance, Amount at Jun. 30, 2014 | $ 109,106,800 | $ 0 | 121,200 | (104,352,900) | 4,875,100 |
Shares issued for services, Shares | 75,000 | 0 | |||
Shares issued for services, Amount | $ 31,500 | $ 0 | 0 | 0 | 31,500 |
Value of stock - based compensation | $ 41,800 | $ 0 | 0 | 0 | 41,800 |
Treasury Shares retired, Shares | (55,100) | (55,100) | |||
Treasury Shares retired, Amount | $ (20,800) | $ (20,800) | 0 | 0 | (41,600) |
Shares of Alanco common stock repurchased, Shares | 0 | 55,100 | |||
Shares of Alanco common stock repurchased, Amount | $ 0 | $ 20,800 | 0 | 0 | 20,800 |
Other comprehensive income adjustment | 0 | 0 | (121,200) | 0 | (121,200) |
Net loss | $ 0 | $ 0 | 0 | (900,600) | (900,600) |
Ending Balance, Shares at Jun. 30, 2015 | 4,982,400 | 0 | |||
Ending Balance, Amount at Jun. 30, 2015 | $ 109,159,300 | $ 0 | $ 0 | $ (105,253,500) | $ 3,905,800 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (900,600) | $ (106,200) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 194,000 | 181,600 |
Accretion of fair value - contingent payments and asset retirement obligation | 39,800 | 40,000 |
Adjustment of accretion and depreciation for reversal of contingent liability | (117,000) | 0 |
Gain on sale of StarTrak, excluding shares for services valued at $7,800 | 0 | (129,500) |
Gain on sale of marketable securities | (103,200) | (913,800) |
Stock issued for services | 31,500 | 11,700 |
Note receivable issued for ACC amendment and accounting fees | 0 | (34,000) |
Stock-based compensation for options | 41,800 | 0 |
Impairment charge | 0 | 160,500 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 50,900 | (87,200) |
Other receivables - related party | 5,000 | 23,600 |
Prepaid expenses and other current assets | 98,200 | (109,900) |
Trust account-asset retirement obligation | (18,700) | (18,700) |
Accounts payable and accrued expenses | 35,900 | 212,200 |
Contingent land payment | (25,100) | 0 |
Net cash used in operating activities | (667,500) | (769,700) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Issuance of note receivable to American Citizenship Center, LLC | 0 | (25,000) |
Proceeds from repayment of American Citizenship Center, LLC note receivable | 115,200 | 25,000 |
Purchase of land, property, and equipment | (395,700) | (165,200) |
Proceeds from sale of marketable securities | 542,100 | 2,124,000 |
Payments pursuant to StarTrak sale | 0 | (643,800) |
Net cash provided by investing activities | 261,600 | 1,315,000 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Purchase of treasury shares | (20,800) | (26,100) |
Net cash used in financing activities | (20,800) | (26,100) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (426,700) | 519,200 |
CASH AND CASH EQUIVALENTS, beginning of period | 1,215,600 | 696,400 |
CASH AND CASH EQUIVALENTS, end of period | 788,900 | 1,215,600 |
SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION | ||
Net cash paid during the period for interest | 0 | 0 |
Net cash paid during the year for income taxes | 0 | 0 |
Non-Cash Activities: | ||
Unrealized gain (loss) on marketable securities | 121,200 | (428,700) |
Value of stock-based compensation | 41,800 | 0 |
Value of shares issued in payment of services | 31,500 | 11,700 |
Note receivable issued for ACC amendment and accounting fees | 29,000 | 0 |
ORBCOMM preferred stock converted to common stock | 0 | 18,200 |
Reversal of contingent purchase price liability and related fixed asset | $ 500,000 | $ 0 |
1. NATURE OF OPERATIONS AND SIG
1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Significant Accounting Polices | Nature of Operations Principles of Consolidation Reclassifications Cash and Cash Equivalents Revenue Recognition · Persuasive evidence of an arrangement exists; · The service has been performed or product delivered; · The customer’s fee is deemed to be determinable and free of contingencies or significant uncertainties; and · Collectability is probable. Any sales tax for which the Company is responsible is recorded as a reduction of the associated revenue. Accounts Receivable - Trade and Other Notes Receivable Marketable Securities – The fair value of substantially all securities is determined by quoted market prices. The estimated fair value of securities for which there are no quoted market prices is based on similar types of securities that are traded in the market. Fair Value of Assets and Liabilities The following are the classes of assets and liabilities measured at fair value on a recurring basis at June 30, 2015 and 2014, using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3): Fair Value at June 30, 2015 Level 1: Quoted Prices Level 2: in active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable June 30, Assets Inputs Inputs 2015 Asset Retirement Obligation $ - $ - $ 429,700 $ 429,700 Contingent Land Payment - - 653,900 653,900 $ - $ - $ 1,083,600 $ 1,083,600 Fair Value at June 30, 2014 Level 1: Quoted Prices Level 2: in active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable June 30, Assets Inputs Inputs 2014 Marketable Securities $ 560,100 $ - $ - $ 560,100 Asset Retirement Obligation - - 423,700 423,700 Contingent Land Payment - - 660,200 660,200 Contingent Purchase Price - - 528,100 528,100 $ 560,100 $ - $ 1,612,000 $ 2,172,100 The following is a reconciliation of the opening and closing balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the fiscal year ended June 30, 2015. Asset Contingent Contingent Retirement Land Purchase Obligation Payment Price Total Opening balance $ 423,700 $ 660,200 $ 528,100 $ 1,612,000 Inflation adjustment 6,000 - - 6,000 Accretion expense - 18,800 - 18,800 Payments - (25,100) - (25,100) Reversals - - (528,100) (528,100) Closing balance $ 429,700 $ 653,900 $ - $ 1,083,600 Fair Value of Marketable Securities Fair Value of Asset Retirement Obligation Fair Value of Contingent Payments Fair Value of Financial Instruments Land, Property and Equipment Trust Account – Asset Retirement Obligation Income Taxes Use of Estimates The Company makes significant estimates and assumptions concerning the classification and valuation of investments, the estimated fair value of stock-based compensation, realization of deferred tax assets, collectability of accounts and note receivable, estimated useful lives and carrying values of fixed assets, the recorded values of accruals and contingencies including the estimated fair values of the Company’s asset retirement obligation and the contingent land and purchase price liability, and the Company’s ability to continue as a going concern. Due to the uncertainties inherent in the estimation process and the significance of these items, it is at least reasonably possible that the estimates in connection with these items could be materially revised within the next year. Impairment of Long-Lived Assets Income (Loss) Per Share Stock options representing 1,203,200 shares of Class A Common Stock were outstanding at June 30, 2015 with exercise prices ranging between $0.50 and $1.50. The weighted average exercise price for all outstanding options was $0.58. Stock options representing 823,400 shares of Class A Common Stock were outstanding at June 30, 2014 with exercise prices ranging between $0.50 and $1.50. The weighted average exercise price for all outstanding options was $0.63. Stock Options Plans The Company estimates the fair value of stock-based awards using the Black-Scholes valuation model. Assumptions used to estimate compensation expense are determined as follows: · Expected term is determined under the simplified method using an average of the contractual term and vesting period of the award as appropriate statistical data required to properly estimate the expected term was not available; · Expected volatility of award grants made under the Company’s plans is measured using the historical daily changes in the market price of the Company’s common stock over the expected term of the award, and contemplation of future activity; · Risk-free interest rate is to approximate the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and, · Forfeitures are based on the history of cancellations of awards granted by the Company and management’s analysis of potential forfeitures. Concentrations Approximately 85.1% of AES revenues were generated by four customers during the fiscal year 2015 and all four customer accounts were current or paid in full as of June 30, 2015. During fiscal year 2014, 87.9% of AES revenues were generated by four customers and all amounts billed to those customers were current or paid in full as of June 30, 2014. The significant customers represented $14,900, or 32.4% of the accounts receivable balance at June 30, 2015, while the significant customers for fiscal 2014 represented $77,700, or 79.5% of the accounts receivable balance at June 30, 2014. Recent Accounting Pronouncements In May 2014, the FASB issued guidance regarding revenue from contracts with customers. The guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance. In August 2015, this accounting pronouncement was deferred for one year, and is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of reporting periods beginning after December 15, 2016. The Company is currently assessing the impact on its financial position and results of operations. In April 2015, the FASB issued guidance regarding the imputation of interest and simplifying the presentation of debt issuance costs. The guidance is effective for annual reporting periods beginning after December 15, 2015 and early adoption is permitted. The Company has adopted the guidance, which had no material impact on its financial position and results of operations. In June 2015, the FASB issued guidance regarding technical corrections and improvements related to various topics as part of the FASB effort to clarify, simplify and improve guidance. The guidance is effective for annual reporting periods beginning after December 15, 2015 and early adoption is permitted. The Company has adopted the guidance, which had no material impact on its financial position and results of operations. There have been no other recent accounting pronouncements or changes in accounting pronouncements that are of significance, or potential significance, to us. |
2. STOCK-BASED COMPENSATION
2. STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
STOCK-BASED COMPENSATION | The Company has several employee stock option and officer and director stock option plans that have been approved by the shareholders of the Company. The plans require that options be granted at a price not less than market on the date of grant. The Company uses the Black-Scholes option pricing model to estimate fair value of stock-based awards. No options were granted during the year ended June 30, 2014. Assumptions for the award of options granted during the year ended June 30, 2015 were: Awards Granted in the Year Ended Assumption June 30, 2015 Dividend yield 0 % Expected volatility 62 % Risk-free interest rate 2 % Expected life of options (in years) 3.75 Weighted average grant-date Black Scholes calculated fair value $ 0.18 The following table summarizes the CompanyÂ’s stock option activity during fiscal year 2015 and 2014: Weighted Average Weighted Average Remaining Aggregate Aggregate Number of Exercise Price Contractual Fair Instrinsic Options Per Share Term (1) Value (3) Value (2) Outstanding July 1, 2013 1,084,100 $ 0.67 4.18 $ 296,100 $ - Granted - - - - - Exercised - - - - - Forfeited, expired or cancelled (260,700) 0.78 - (83,500) - Outstanding June 30, 2014 823,400 $ 0.63 3.35 $ 212,600 $ - Exercisable June 30, 2014 823,400 $ 0.63 3.35 $ 212,600 $ - Outstanding July 1, 2014 823,400 $ 0.63 3.35 $ 212,600 $ - Granted 390,000 0.50 4.35 69,500 - Exercised - - - - - Forfeited, expired or cancelled (10,200) 1.50 - (6,300) - Outstanding June 30, 2015 1,203,200 $ 0.58 3.03 $ 275,800 $ - Exercisable June 30, 2015 1,047,200 $ 0.59 2.83 $ 248,100 $ - (1) Remaining contractual term presented in years. (2) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing price of the Company's common stock as of June 30, 2015 and 2014, for those awards that have an exercise price currently below the closing price as of June 30, 2015 of $0.28 and as of June 30, 2014 of $0.48. (3) Aggregate Fair Value is calculated using the Black Scholes option pricing model to estimate fair value of stock-based compensation. The Company recognized approximately $73,300 of stock-based compensation expense during the fiscal year ended June 30, 2015, which included $41,800 of stock-based compensation expense for options granted during the fiscal year ended June 30, 2015 and $31,500 for stock issued for services as described in Note 13. There is $27,700 of unamortized stock-based compensation expense related to these options which is scheduled to be recognized in the first two quarters of fiscal 2016. All options granted had an exercise price of not less than the market price on date of grant, as stipulated in the stock option plans, of the CompanyÂ’s common stock. As of June 30, 2015, 156,000 of the 390,000 stock options granted during fiscal 2015 to management and the Board of Directors were unvested and all options had a weighted average grant date fair value of $0.18 per share. These unvested options will vest equally over the next two fiscal quarters. There were no other unvested options at June 30, 2015. If not previously exercised, options outstanding at June 30, 2015 will expire as follows: Calendar Year Number of Weighted Average of Expiration Shares Exercise Price 2016 3,200 $ 1.50 2017 385,000 0.75 2018 425,000 0.50 2019 390,000 0.50 1,203,200 $ 0.58 Additional information about outstanding options to purchase the CompanyÂ’s Common Stock as of June 30, 2015 is as follows: Options Outstanding Options Exercisable Weighted Avg. Weighted Weighted Number Remaining Average Number Average Exercise of Contractual Exercise of Exercise Price Shares Life (in years) Price Shares Price $0.50 815,000 3.63 $0.50 659,000 $0.50 $0.75 385,000 1.78 $0.75 385,000 $0.75 $1.50 3,200 0.21 $1.50 3,200 $1.50 Totals 1,203,200 3.03 $0.58 1,047,200 $0.59 The CompanyÂ’s Stock Option Plans are administered by the Compensation/Administration Committee, currently comprised of two independent members of the CompanyÂ’s Board of Directors. Company stock options are issued to employees and directors at an exercise price of not less than the fair market value, as determined under the option plan on the date of grant and must be granted within 10 years from the effective date of the Plan, with the term of the option not exceeding 10 years. Options granted to employees under the Stock Option Plans, which are terminated prior to exercise, are considered to be available for grant to subsequent employees. Total issued stock options for any plan may exceed those authorized due to termination of prior non-exercised grants. Under the Employee Incentive Stock Option Plans, incentive and non-qualified stock options may be granted with the incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended. Stock options issued during the fiscal year ended June 30, 2015 vested 20% on December 31, 2014 and 20% each quarter thereafter and there were no options issued during the fiscal year ended June 30, 2014. Alanco Stock Option Summary (1) as of June 30, 2015 Options Issued and Options Options Balance Exercise Plan Authorized Granted Exercised Cancelled Outstanding to Issue (6) Price Range (5) 2002 (2) 75,000 156,000 27,000 94,200 34,800 -- $0.75 2002 D&O (3) 25,000 40,800 5,200 16,600 19,000 -- $0.75 2004 (2) 100,000 188,500 67,600 88,500 32,400 -- $0.75 2004 D&O (3) 50,000 83,100 13,200 33,100 36,800 -- $0.75 - $1.50 2005 (2) 150,000 310,108 81,971 160,108 68,029 -- $0.50 - $0.75 2005 D&O (3) 50,000 142,000 4,000 92,000 46,000 -- $0.50 2006 (2) 375,000 851,769 82,003 476,769 292,997 -- $0.50 - $0.75 2006 D&O (3) 125,000 261,924 23,750 136,924 101,250 -- $0.50 2011 (4) 750,000 777,948 291,024 30,000 456,924 2,052 $0.50 - $0.75 2014 (7) 500,000 115,000 0 0 115,000 385,000 $0.50 Totals 2,200,000 2,927,149 595,748 1,128,201 1,203,200 387,052 (1) Only includes plans with options currently outstanding or having a balance available to issue. (2) Employee Incentive Stock Option Plan. (3) Directors and Officers Stock Option Plan. (4) Employee Incentive Stock Option Plan which permits granting of stock or stock options. Grants include 291,000 Common Shares issued under the plan as payment of deferred employee compensation. (5) Range of exercise prices for outstanding options only. (6) Any options not issued under the 2002 or 2002 D&O Plans and the 2004 and 2004 D&O Plans are no longer available for issue as those plans were 10 year plans and have expired. (7) Stock Incentive Plan which permits granting of stock options and awards. All grants are stock options. |
3. Notes Receivable
3. Notes Receivable | 12 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
NOTES RECEIVABLE | Note receivable at June 30, 2015 and 2014 represents a note due from American Citizenship Center, LLC (“ACC”), a related party. Note receivable activity for fiscal years ended June 30, 2015 and 2014 consist of the following: 2015 2014 Note receivable - beginning of year $ 409,000 $ 375,000 Advances - 25,000 Payments (115,200) (25,000) Accounting and loan fees added to note 29,000 34,000 Total 322,800 409,000 Less long-term (262,800) (109,000) Notes receivable - current $ 60,000 $ 300,000 The $322,800 balance at June 30, 2015 represents the outstanding amount drawn by ACC on a $322,800 credit line provided by the Company at June 30, 2015. The note is secured by all assets of ACC and at June 30, 2015 bears interest at the rate of 9.5% per annum. The note was modified multiple times during the fiscal year 2015 with a total of $29,000 of fees being added, which includes $9,000 of accounting fees and $20,000 of loan fees. In addition, the interest rate was increased to 9.5% per annum effective October 1, 2014 and effective January 31, 2015, the minimum monthly payments were changed to the greater of $5,000 or 10% of ACC’s gross monthly revenues. The modification dated January 29, 2015 modified the maturity date to August 31, 2015. In August 2015, ACC and the Company again modified the loan agreement by extending the maturity date to August 31, 2017. All other terms of the note, including the interest rate of 9.5% and the minimum monthly required payments of the greater of $5,000 or 10% of ACC’s gross monthly revenues remained the same. The Company has reviewed ACC’s current projections which are based on the Executive Action issued by President Obama in November 2014. The action is designed to expand the original deferred action program to eligible parents and spouses of U.S. citizens and agricultural workers with a demonstrated history. In February 2015, twenty-six states filed a lawsuit to stop the program and the court granted an injunction meaning that the U.S. Government cannot proceed with rolling out the program. The U.S. government has appealed the lawsuit which is now pending in the 5 th th |
4. Marketable Securities
4. Marketable Securities | 12 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | At June 30, 2015, the Company had no Marketable Securities on hand. At June 30, 2014, the Company had Marketable Securities, which are classified as available for sale, in the amount of $560,100 representing the June 30, 2014 market value ($6.59 per share) of 85,000 ORBCOMM Common Shares ( NASDAQ: ORBC The shares held are revalued at the end of each reporting period with per share market value fluctuations reported as Comprehensive Income (Loss) for the period. The Company recorded an unrealized loss on marketable securities sold during the twelve months ended June 30, 2015 of ($18,000), plus an adjustment of ($103,200) for unrealized gains previously recorded related to securities sold during the period. The actual gain on securities sold is reported in the Statement of Operations. All shares were sold as of December 31, 2014. At June 30, 2015 and 2014, the Accumulated Other Comprehensive Income of $0 and $121,200, respectively, net of tax of nil, was presented in the ShareholdersÂ’ Equity section of the Consolidated Balance Sheets. During the fiscal year ended June 30, 2015, the Company sold a total of 85,000 shares of ORBCOMM, Inc. Common Stock for total proceeds of $542,100, and an average selling price of approximately $6.38 per share, resulting in realized gains totaling $103,200. The following table summarizes the activities related to investment in Marketable Securities for the year ended June 30, 2015. Marketable Securities Accumulated Net Cost Basis Market Value Unrealized Shares Per Share Cost Basis Per Share Total Value Gain (Loss) June 30, 2014 85,000 $ 5.16 $ 439,100 $ 6.59 $ 560,100 $ 121,200 $ - Shares sold (45,000) 5.16 (232,600) September 30, 2014 40,000 $ 5.16 $ 206,500 $ 5.75 $ 230,000 $ 23,500 $ - Shares sold (40,000) 5.16 (206,500) December 31, 2014, March 31, 2015 and June 30, 2015 - $ - $ - $ - $ - $ - $ - |
5. ALANCO ENERGY SERVICES
5. ALANCO ENERGY SERVICES | 12 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
ALANCO ENERGY SERVICES | During fiscal 2012, the Company formed Alanco Energy Services, Inc. (“AES”), a wholly-owned subsidiary, and in April 2012 executed an agreement with TC Operating, LLC ("TCO") of Grand Junction, CO to transfer a land lease for approximately 24 acres near Grand Junction, CO and all related assets to AES with the intent for AES to construct facilities for the treatment and disposal of large quantities of produced water generated by oil and natural gas producers in Western Colorado. The site was chosen due to its unique ability to meet stringent government requirements for disposal of the high saline water produced as a by-product of oil and gas production, and termed "produced water". The agreement included the transfer of all related tangible and intangible assets as well as Federal, State and County permits (issued or in process) required to construct the facilities. The lease terms payable to the landlord include a minimum monthly lease payment of $100 per acre ($2,400 per month) during the initial ten year term of the lease, plus approximately $.25 per barrel of produced water received at the site. The design and construction of the Deer Creek water disposal facility required certain changes to the Goodwin Solid Waste facility (“Goodwin”) resulting in extra costs to the landlord, who also owned Goodwin. As incentive for the landlord to approve the facility design, AES agreed to limit landlord construction improvement costs related to the leased land to $200,000. Included in the $200,000 limited amount was $100,000 of landlord improvement costs to be paid by AES and reimbursed through a 50% credit against the $.25 per barrel royalty payments due landlord discussed above. AES recorded the $100,000 payment as prepaid royalties and under the current terms of the agreement, expired on August 31, 2015. The remaining prepaid balances at June 30, 2015 and 2014 were $5,100 and $58,700, respectively. The June 30, 2015 balance of $5,100, which is included in “Prepaid expenses and other current assets” on the balance sheet, is net of a $20,000 write down of the prepaid which is based on an estimate that the Company plans to recoup under the current agreement. TCO can also earn additional purchase price payments based upon a percentage of the net cumulative EBITDA (net of all related AES capital investments) over a period of approximately 10 years (contingent deferred payment), approximately the initial term of the lease. Under certain circumstances, the acreage covered by the lease may be expanded by up to 50 acres to allow for additional expansion at the site. See Note 8 - Contingent Payments for additional discussion of the contingent deferred payment. During April 2012, AES also entered into a definitive agreement with Deer Creek Disposal, LLC ("DCD") whereby AES acquired a 160 acre site near Grand Junction, CO, for additional expansion to the proposed water treatment and disposal facility. As consideration for the land purchase, AES paid $500,000 at the April 13, 2012 closing and assumed a non-interest bearing, secured, $200,000 note due November 15, 2012, which was repaid upon maturity. AES has also agreed to potential additional quarterly earn-out payments to DCD up to a maximum total of $800,000, generally determined as 10% of quarterly revenues in excess of operating expenses up to $200,000 per quarter (contingent land payment). See Note 8 - Contingent Payments for additional discussion of the contingent land payment. The land, known as Indian Mesa, is currently undeveloped. In June 2014 AES received final construction approval from the Colorado Department of Public Health and Environment (CDPHE) for twelve produced water disposal ponds, which if developed as planned, would be located on the north 80 acres of the Indian Mesa site. The Company is in the permitting process for the remaining 80 acres. Related to the treatment and disposal facilities, in fiscal year 2012 AES entered into a management agreement with TCO to manage the project for a monthly management fee of $10,000 initially and $20,000 after final permits for the Deer Creek operation were obtained in May 2012. The management agreement expired in January 2013 and continued on a month to month basis through March 31, 2015, at which time the Company elected not to continue the month to month arrangement. During the fiscal year ended June 30, 2015, the Company paid TCO approximately $185,000 under the management agreement. Effective April 1, 2015, the Company entered into an agreement for operations management services for the Deer Creek facility with a separate management company. The agreement is cancellable by either party at any time. |
6. SALE OF OPERATING SEGMENT
6. SALE OF OPERATING SEGMENT | 12 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
SALE OF STARTRAK SYSTEMS, LLC | The assets of StarTrak Systems, LLC (“StarTrak”), a subsidiary comprising the Company’s Wireless Asset Management segment, were sold to ORBCOMM Inc. (“ORBCOMM”) effective in May 2011. The transaction was structured as an asset purchase whereby ORBCOMM acquired substantially all of StarTrak’s assets and liabilities. The transaction closing date was May 16, 2011. Consideration Received - 1. Cash consideration in an amount equal to two million dollars ($2,000,000) less any amount due under the secured loan referred to in 3 below; 2. ORBCOMM’s acquisition and discharge of the Anderson Trust secured debt in the principal amount of $3,900,000; 3. Cancellation and termination of all outstanding obligations of Alanco and StarTrak to ORBCOMM under the Secured Promissory Note, including the then outstanding principal amount of $300,000 plus interest and fees, if any, due thereunder as of the closing date; 4. Delivery to Alanco of 500,000 shares of Series E Convertible Preferred Stock of Alanco having a face value amount of $2,250,000; 5. Delivery to Alanco of 1,212,748 shares of Alanco Class A Common Stock with a closing value of $1.03 per share; 6. Issuance and delivery to Mellon Investor Services LLC, as escrow agent, (“Mellon”) of 249,917 shares of ORBCOMM common stock (“ORBCOMM Stock”) registered in the name of Alanco and valued at closing at $2.91 per share, which escrowed shares will be available to pay for half of the out of pocket costs incurred as a result of certain litigation against StarTrak; 7. The issuance and delivery to Mellon, as escrow agent of 166,611 shares of ORBCOMM Stock, valued at closing at $2.91 per share, registered in the name of Alanco, which escrowed shares will be available to pay for a portion of certain product warranty costs; 8. The issuance and delivery to Alanco of 1,820,583 shares of ORBCOMM Stock, valued at closing at $2.91 per share; 9. The issuance and delivery to Alanco of 183,550 shares of Series A Perpetual Convertible Preferred ORBCOMM stock (“ORBCOMM Series A”) with a face value of $10 per share, entitled to a 4% annual paid-in-kind dividend and each such share convertible into 1.666 shares of ORBCOMM Stock; and 10. Assumption by ORBCOMM of certain specified liabilities, generally consisting of liabilities arising after the closing date and liabilities reflected in the closing Working Capital Adjustment (“WCA”). Product Warranty Escrow The second escrow account in the amount of 166,611 shares of ORBCOMM common stock, established under item 7 above, provided for the availability of ORBCOMM shares to pay for half of certain product warranty costs incurred during the period March 1, 2011 to April 30, 2012, but only to the extent total warranty costs during the period exceed $600,000 (“fuel sensor escrow”). Under the escrow agreement, shares returned to ORBCOMM in payment of those warranty costs would again be valued at $3.001 per share. Upon distribution of the required shares to ORBCOMM, if any, from the escrow account, the remaining shares would be distributed to Alanco. Working Capital Adjustment ORBCOMM delivered to Alanco on August 12, 2011, a written statement of the Current Assets, Current Liabilities and Net Working Capital Amount pursuant to the terms of the Agreement reflecting a working capital adjustment in favor of ORBCOMM of approximately $700,000. Under terms of the Agreement, Alanco submitted a “Notice of Disagreement” of the Net Working Capital Amount submitted by ORBCOMM. Settlement of Working Capital Adjustment and Product Warranty Escrow – |
7. Land, Property and Equipment
7. Land, Property and Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
LAND, PROPERTY AND EQUIPMENT | At June 30, 2015 and 2014, Land, Property and Equipment consist of the following: 2015 2014 Office furniture and equipment $ 51,300 $ 51,300 Water disposal facility 2,219,200 2,714,600 Production equipment 514,400 232,000 2,784,900 2,997,900 Less accumulated depreciation (491,900) (371,800) Land and permit costs 1,645,600 1,536,900 Net book value $ 3,938,600 $ 4,163,000 Land and permit costs at June 30, 2015 represent costs related to the acquisition and permitting of 160 acres known as Indian Mesa. Costs include the initial payment at closing of $500,000, a $200,000 assumed note payable due and paid in November 2012, $625,000 present value of future contingent land payments, $307,700 in permit costs and $12,900 in legal expenses. Water disposal facility assets at June 30, 2015 consist of $1,809,200 in costs related to the construction and permitting of the evaporation ponds and $410,000 in asset retirement cost. The prior year included $500,000 for the fair value of the contingent purchase price liability and related accumulated depreciation of $48,900. In addition, $25,000 of deprecation was recorded in the current year for a total accumulated depreciation of $73,900, all of which has been reversed against cost of goods sold in the current year based on the parameters of the contingency and the estimated present value. Production equipment at June 30, 2015 of $514,400 represents the cost of equipment required to support the Deer Creek facility. Related depreciation expense for the years ended June 30, 2015 and 2014 was $120,100 and $181,600, respectively. |
8. Contingent Payments
8. Contingent Payments | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT PAYMENTS | Contingent payments at June 30, 2015 and 2014 are as follows: 2015 2014 Contingent land payment $ 653,900 $ 660,200 Contingent purchase price - 528,100 653,900 1,188,300 Less current portion (50,000) (50,000) Contingent payments, long-term $ 603,900 $ 1,138,300 Contingent land payment Contingent purchase price The significant unobservable inputs used in the fair value measurement of the Company’s fair value calculation for the contingent land payment and contingent purchase price is the probability of the contingent payments being realized, the timing of when the payments are paid and the discount rate applied. Significant changes in any of those inputs in isolation would result in a significantly different fair value measurement. See Note 5 – Alanco Energy Services for additional discussion on AES operations. |
9. Asset Retirement Obligation
9. Asset Retirement Obligation | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
ASSET RETIRMENT OBLIGATIONS | The Company initially recognized estimated asset retirement obligations (closure cost) at June 30, 2012 of $410,000 to remove leasehold improvements, remediate any pollution issues and return the Deer Creek water disposal property to its natural state at the conclusion of the Company’s lease. The closure process is a requirement of both the Deer Creek lease and the State of Colorado, a permitting authority for such facilities. The initial closure cost estimate, in then current dollars, was completed by an approved independent consultant experienced in estimating closure costs for water disposal operations and the estimated amount was approved by the State of Colorado. The Company reviews the contingent asset retirement obligation on a recurring basis and records changes in the period incurred. At June 30, 2015, the estimated closure costs were again reviewed and the only adjustment was a 1.014% inflation adjustment as required under agreement with the Colorado Department of Public Health and Environment, increasing the asset retirement obligation to $429,700, AES’s approximate 75% share of the $566,000 estimated closure costs for both the Deer Creek facility and the adjacent Goodwin Solid Waste facility (Goodwin is not owned by AES). At June 30, 2014, the only adjustment was a 1.015% inflation adjustment, increasing the asset retirement obligation to $423,700. The significant unobservable inputs used in the fair value measurement of the Company’s fair value calculation for the asset retirement obligation include the estimated cost to close the Deer Creek facility in accordance with state approved closure plans, the projected timing of the closure and the discount rate applied. Significant changes in any of those inputs in isolation would result in a significantly different fair value measurement. See Note 5 – Alanco Energy Services for additional discussion on AES operations. The laws of the State of Colorado require companies to meet environmental and asset retirement obligations by selecting an approved payment method. The Company has elected to meet its obligation by making an initial payment of approximately $25,300 and quarterly payments of approximately $4,700 into a trust that over the expected lease period will build liquid assets to meet the asset retirement obligation. For the fiscal years ended June 30, 2015 and 2014, the trust account balance was $67,400 and $48,700, respectively. |
10. INCOME TAXES
10. INCOME TAXES | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | A reconciliation of anticipated statutory rates is as follows: 2015 2014 Statutory rate 34.0% 34.0% State income taxes, net of federal income tax benefit 5.0% 5.0% Change in valuation allowance related to net operating loss carry-forwards and change in temporary differences -39.0% -39.0% 0.0% 0.0% The components of the net deferred tax asset (liability) recognized as of June 30, 2015 and 2014 are as follows: 2015 2014 Deferred tax asset $ 11,800,000 $ 13,200,000 Less: estimated Section 382 adjustment (4,000,000) (4,000,000) Net operating loss and capital loss carryforwards 7,800,000 9,200,000 Less: Valuation allowance (7,800,000) (9,200,000) Net deferred tax $ - $ - A valuation allowance is recognized if it is more likely than not that some or all of the deferred income tax assets will not be realized. A valuation allowance is used to offset the related income tax assets due to uncertainties of realizing the benefits of certain net operating loss and tax credits. The valuation allowance, which reflects a 100% reserve for all years reported above, decreased $1,400,000 from June 30, 2014 to June 30, 2015 primarily due to the expiration of state operating loss carryforwards. At June 30, 2015, the Company had net operating loss carry-forwards for federal tax purposes of approximately $33,500,000. The loss carry-forwards, unless utilized, will expire from 2017 through 2034. With few exceptions, the Company is no longer subject to U.S. federal, state and local examinations by tax authorities for years before 2010. Internal Revenue Code Section 382 limits the ability to utilize net operating losses if a 50% change in ownership occurs over a three year period. Such limitation of the net operating losses may have occurred which the Company has not fully analyzed at this time as the deferred tax asset is fully reserved, however, the Company has estimated a limitation effect on deferred tax assets of approximately $4 million at June 30, 2015 and 2014. |
11. Related Party Transactions
11. Related Party Transactions | 12 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | American Citizenship Center, LLC At June 30, 2015 and 2014 the Company had a note due from American Citizenship Center, LLC (“ACC”), a related party, with balances of $322,800 and $409,000, respectively. Refer to Note 3 – Note Receivable for further discussion. During the fiscal years 2015 and 2014, the Company billed ACC a total of $46,300 and $73,100, respectively, which includes amounts for accounting services, legal services related to note modifications, and interest on the note. At June 30, 2015, the Company had unpaid receivables from ACC in the amount of $4,200, consisting of $2,500 representing one month of interest plus $1,700 of legal services. Subsequent to year end, ACC made payments bringing these balances current. At June 30, 2014, the Company had unpaid receivables from ACC in the amount of $9,200, consisting of $6,000 in billings for accounting services and $3,200 representing one month of interest. Board of Directors The Company made cash payments of $7,500 to each of the Company’s three independent members of the Board of Directors and issued each 25,000 stock grants for a total of 75,000 shares valued at $31,500. The Company recorded $16,500 of expense related to the stock grants during the current fiscal year and had accrued $15,000 at June 30, 2014. In addition, each independent director received 80,000 stock options during fiscal year 2015. Each independent director received cash payments of $2,250 during fiscal 2014. In November 2014, the Company’s Board of Directors approved a change to the independent director compensation. Effective January 1, 2015, the three independent directors were paid cash compensation of $1,000 each per month (included in the above totals). |
12. Commitments and Contingenci
12. Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Employment agreements Leases – The ten year land lease related to Deer Creek, was effective May 1, 2012 and has two additional ten year option periods that may be activated by AES. The initial terms of the lease requires minimum monthly lease payments of $100 per acre (increasing to $150 and $200 per acre for the second and third ten year option periods, respectively) plus additional royalty payments based upon quantities of produced water received (approximately $.25 per barrel) at the site. The design and construction of the Deer Creek water disposal facility required certain changes to the Goodwin Solid Waste facility resulting in extra costs to the landlord (owner of Goodwin Solid Waste). As incentive for the landlord to approve the facility design, AES agreed to limit landlord construction improvement costs related to the leased land to $200,000. Included in the $200,000 limited amount was $100,000 of landlord improvement costs to be paid by AES and reimbursed through a 50% credit against the $.25 per barrel royalty payments due to the landlord discussed above. Under certain circumstances, the acreage covered by the lease may be expanded by up to 50 acres to allow for additional expansion at the site. In May 2015, AES signed a one year lease for an approximately 700 square foot office space located at 138 S. Park Square, Suite 201, Fruita, Colorado 81521 with monthly rental payments of $700 (including rental tax). Rent expense for the fiscal years ended June 30, 2015 and 2014 were $53,300 and $50,200, respectively. Future minimum non-contingent payments as of June 30, 2015 are as follows: FUTURE MINIMUM PAYMENTS FOR THE YEAR ENDED JUNE 30, 2016 $ 35,600 2017 28,600 2018 28,600 2019 28,600 2020 28,600 Thereafter 52,400 TOTAL $ 202,400 Legal Proceedings The Company may from time to time be involved in litigation arising from the normal course of business. As of June 30, 2015, other than the litigation discussed above, there was no such litigation pending deemed material by the Company. |
13. SHAREHOLDERS' EQUITY
13. SHAREHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | Preferred Shares Common Shares During fiscal year ended June 30, 2015, the Company issued 75,000 shares of Class A Common Stock for services valued at $31,500. During the same period, the Company repurchased and retired 55,100 shares for $20,800 resulting in a 55,100 reduction in outstanding shares of Common Stock. The value of stock-based compensation recognized during fiscal year ended June 30, 2015 was $41,800. During fiscal year ended June 30, 2014, the Company issued 30,000 shares of Class A Common Stock for services valued at $11,700. During the same period, the Company repurchased and retired 56,800 shares for $26,100 resulting in a 56,800 reduction in outstanding shares of Common Stock. There was no stock-based compensation recognized during the fiscal year ended June 30, 2014. During the year ended June 30, 2015, the Company recognized a comprehensive income adjustment in the amount of ($121,200), reported in the Consolidated Statement of Changes in Shareholders’ Equity. During the year ended June 30, 2014, the Company recognized a comprehensive income adjustment in the amount of ($428,700), reported in the Consolidated Statement of Changes in Shareholders’ Equity. See Note 4 – Marketable Securities, for additional discussion of fair value of financial instruments and marketable securities. On December 12, 2011 the Company announced that its board of directors had authorized a stock repurchase program whereby the Company could repurchase up to 2 million shares of its outstanding common stock over the next 12 months. The stock repurchase program was extended, under the same limitation, through December 31, 2013. During the quarter ended March 31, 2014, the board of directors renewed the stock repurchase program, extending it through December 31, 2014 and establishing an aggregate future amount of shares that may be purchased under the program to 2 million shares. During the quarter ended December 31, 2014, the board of directors again renewed the stock purchase program, extending it through December 31, 2015. For the year ended June 30, 2015, the Company had repurchases under the program for a total of 55,100 shares at a cost of approximately $20,800, or $0.38 per share. |
14. RETIREMENT PLAN
14. RETIREMENT PLAN | 12 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT PLAN | The Company provides a 401(k) retirement plan for its employees. Employees are eligible to participate in the plan on the first of the month following 90 days of continuous employment. Employee salary deferral rates are not restricted by the Company, however, IRS limits and limitations imposed by discrimination tests may affect the allowed salary deferral rate. Through the quarter ended December 31, 2013, the Company had a matching program equivalent to 25% of the amount deferred by employees, matching up to 4% of an employeeÂ’s annual compensation. Effective January 1, 2014 and due to regulations for top heavy compliance, the Company adopted Safe Harbor provision in the 401(k) retirement plan which requires all employees receive a 3% match based on gross wages. The CompanyÂ’s matching contributions totaled $12,000 and $7,900 for the years ended June 30, 2015 and 2014, respectively. |
15. LIQUIDITY AND GOING CONCERN
15. LIQUIDITY AND GOING CONCERN | 12 Months Ended |
Jun. 30, 2015 | |
Liquidity And Going Concern | |
LIQUIDITY AND GOING CONCERN | During the fiscal years ended June 30, 2015 and 2014, the Company reported a net loss of ($900,600) and ($106,200), respectively and operating loss of ($1,173,800) and ($1,077,200), respectively. Historically, the Company had relied on the liquidation of its investment in Marketable Securities to fund working capital needs. The Company sold all remaining marketable securities during fiscal 2015. These factors raise doubt about the CompanyÂ’s ability to continue as a going concern for the next year. The CompanyÂ’s fiscal 2016 operating plan contemplates development of the AES Indian Mesa site. In order to develop the Indian Mesa site, the Company will need additional financing which may be in the form of public or private debt or equity financing, or both. Management cannot assure that it will secure additional financing in order to achieve projections. If adequate funds are not available or are not available on acceptable terms, the CompanyÂ’s business, operating results, financial condition and ability to continue operations may be materially adversely affected. Management has historically been successful in obtaining financing and has demonstrated the ability to implement a number of cost-cutting initiatives to reduce working capital needs or the Company may seek to sell assets. Accordingly, the accompanying consolidated financial statements have been prepared assuming the Company will continue to operate and do not include any adjustment that might be necessary if the Company is unable to continue as a going concern. As a result, the CompanyÂ’s independent registered public accounting firm has included an explanatory paragraph in their audit opinion on the consolidated financial statements of the Company for the fiscal year ended June 30, 2015 discussing the substantial doubt of the CompanyÂ’s ability to continue as a going concern. |
16. SUBSEQUENT EVENTS
16. SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Subsequent to June 30, 2015 ACC paid $17,200 in principal payments and brought all amounts due current. In August 2015, ACC and the Company amended the loan agreement by extending the maturity date to August 31, 2017. All other terms of the note, including the interest rate of 9.5% and the minimum monthly required payments of the greater of $5,000 or 10% of ACCÂ’s gross monthly revenues remained the same. Based on the minimum required payments, the Company has classified $60,000 of the note as current, and $262,800 of the note as long-term as of June 30, 2015. |
1. NATURE OF OPERATIONS AND S24
1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations |
Principles of Consolidation | Principles of Consolidation |
Reclassifications | Reclassifications |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Revenue Recognition | Revenue Recognition · Persuasive evidence of an arrangement exists; · The service has been performed or product delivered; · The customer’s fee is deemed to be determinable and free of contingencies or significant uncertainties; and · Collectability is probable. Any sales tax for which the Company is responsible is recorded as a reduction of the associated revenue. |
Accounts Receivable - Trade and Other | Accounts Receivable - Trade and Other |
Notes Receivable | Notes Receivable |
Marketable Securities | Marketable Securities – The fair value of substantially all securities is determined by quoted market prices. The estimated fair value of securities for which there are no quoted market prices is based on similar types of securities that are traded in the market. |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The following are the classes of assets and liabilities measured at fair value on a recurring basis at June 30, 2015 and 2014, using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3): Fair Value at June 30, 2015 Level 1: Quoted Prices Level 2: in active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable June 30, Assets Inputs Inputs 2015 Asset Retirement Obligation $ - $ - $ 429,700 $ 429,700 Contingent Land Payment - - 653,900 653,900 $ - $ - $ 1,083,600 $ 1,083,600 Fair Value at June 30, 2014 Level 1: Quoted Prices Level 2: in active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable June 30, Assets Inputs Inputs 2014 Marketable Securities $ 560,100 $ - $ - $ 560,100 Asset Retirement Obligation - - 423,700 423,700 Contingent Land Payment - - 660,200 660,200 Contingent Purchase Price - - 528,100 528,100 $ 560,100 $ - $ 1,612,000 $ 2,172,100 The following is a reconciliation of the opening and closing balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the fiscal year ended June 30, 2015. Asset Contingent Contingent Retirement Land Purchase Obligation Payment Price Total Opening balance $ 423,700 $ 660,200 $ 528,100 $ 1,612,000 Inflation adjustment 6,000 - - 6,000 Accretion expense - 18,800 - 18,800 Payments - (25,100) - (25,100) Reversals - - (528,100) (528,100) Closing balance $ 429,700 $ 653,900 $ - $ 1,083,600 |
Fair Value of Marketable Securities | Fair Value of Marketable Securities |
Fair Value of Asset Retirement Obligation | Fair Value of Asset Retirement Obligation |
Fair Value of Contingent Payments | Fair Value of Contingent Payments |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Land, Property and Equipment | Land, Property and Equipment |
Trust Account - Asset Retirement Obligation | Trust Account – Asset Retirement Obligation |
Income Taxes | Income Taxes |
Use of Estimates | Use of Estimates The Company makes significant estimates and assumptions concerning the classification and valuation of investments, the estimated fair value of stock-based compensation, realization of deferred tax assets, collectability of accounts and note receivable, estimated useful lives and carrying values of fixed assets, the recorded values of accruals and contingencies including the estimated fair values of the CompanyÂ’s asset retirement obligation and the contingent land and purchase price liability, and the CompanyÂ’s ability to continue as a going concern. Due to the uncertainties inherent in the estimation process and the significance of these items, it is at least reasonably possible that the estimates in connection with these items could be materially revised within the next year. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Income (Loss) Per Share | Income (Loss) Per Share Stock options representing 1,203,200 shares of Class A Common Stock were outstanding at June 30, 2015 with exercise prices ranging between $0.50 and $1.50. The weighted average exercise price for all outstanding options was $0.58. Stock options representing 823,400 shares of Class A Common Stock were outstanding at June 30, 2014 with exercise prices ranging between $0.50 and $1.50. The weighted average exercise price for all outstanding options was $0.63. |
Stock Options Plans | Stock Options Plans The Company estimates the fair value of stock-based awards using the Black-Scholes valuation model. Assumptions used to estimate compensation expense are determined as follows: · Expected term is determined under the simplified method using an average of the contractual term and vesting period of the award as appropriate statistical data required to properly estimate the expected term was not available; · Expected volatility of award grants made under the Company’s plans is measured using the historical daily changes in the market price of the Company’s common stock over the expected term of the award, and contemplation of future activity; · Risk-free interest rate is to approximate the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and, · Forfeitures are based on the history of cancellations of awards granted by the Company and management’s analysis of potential forfeitures. |
Concentrations | Concentrations Approximately 85.1% of AES revenues were generated by four customers during the fiscal year 2015 and all four customer accounts were current or paid in full as of June 30, 2015. During fiscal year 2014, 87.9% of AES revenues were generated by four customers and all amounts billed to those customers were current or paid in full as of June 30, 2014. The significant customers represented $14,900, or 32.4% of the accounts receivable balance at June 30, 2015, while the significant customers for fiscal 2014 represented $77,700, or 79.5% of the accounts receivable balance at June 30, 2014. |
Recent Accounting Pronouncements | In May 2014, the FASB issued guidance regarding revenue from contracts with customers. The guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance. In August 2015, this accounting pronouncement was deferred for one year, and is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of reporting periods beginning after December 15, 2016. The Company is currently assessing the impact on its financial position and results of operations. In April 2015, the FASB issued guidance regarding the imputation of interest and simplifying the presentation of debt issuance costs. The guidance is effective for annual reporting periods beginning after December 15, 2015 and early adoption is permitted. The Company has adopted the guidance, which had no material impact on its financial position and results of operations. In June 2015, the FASB issued guidance regarding technical corrections and improvements related to various topics as part of the FASB effort to clarify, simplify and improve guidance. The guidance is effective for annual reporting periods beginning after December 15, 2015 and early adoption is permitted. The Company has adopted the guidance, which had no material impact on its financial position and results of operations. There have been no other recent accounting pronouncements or changes in accounting pronouncements that are of significance, or potential significance, to us. |
1. NATURE OF OPERATIONS AND S25
1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | Fair Value at June 30, 2015 Level 1: Quoted Prices Level 2: in active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable June 30, Assets Inputs Inputs 2015 Asset Retirement Obligation $ - $ - $ 429,700 $ 429,700 Contingent Land Payment - - 653,900 653,900 $ - $ - $ 1,083,600 $ 1,083,600 Fair Value at June 30, 2014 Level 1: Quoted Prices Level 2: in active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable June 30, Assets Inputs Inputs 2014 Marketable Securities $ 560,100 $ - $ - $ 560,100 Asset Retirement Obligation - - 423,700 423,700 Contingent Land Payment - - 660,200 660,200 Contingent Purchase Price - - 528,100 528,100 $ 560,100 $ - $ 1,612,000 $ 2,172,100 |
Reconciliation of Assets and liabilities measured at fair value on a recurring basis | Asset Contingent Contingent Retirement Land Purchase Obligation Payment Price Total Opening balance $ 423,700 $ 660,200 $ 528,100 $ 1,612,000 Inflation adjustment 6,000 - - 6,000 Accretion expense - 18,800 - 18,800 Payments - (25,100) - (25,100) Reversals - - (528,100) (528,100) Closing balance $ 429,700 $ 653,900 $ - $ 1,083,600 |
2. STOCK-BASED COMPENSATION (Ta
2. STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Assumptions for awards of options granted | Awards Granted in the Year Ended Assumption June 30, 2015 Dividend yield 0 % Expected volatility 62 % Risk-free interest rate 2 % Expected life of options (in years) 3.75 Weighted average grant-date Black Scholes calculated fair value $ 0.18 |
Stock option activity | Weighted Average Weighted Average Remaining Aggregate Aggregate Number of Exercise Price Contractual Fair Instrinsic Options Per Share Term (1) Value (3) Value (2) Outstanding July 1, 2013 1,084,100 $ 0.67 4.18 $ 296,100 $ - Granted - - - - - Exercised - - - - - Forfeited, expired or cancelled (260,700) 0.78 - (83,500) - Outstanding June 30, 2014 823,400 $ 0.63 3.35 $ 212,600 $ - Exercisable June 30, 2014 823,400 $ 0.63 3.35 $ 212,600 $ - Outstanding July 1, 2014 823,400 $ 0.63 3.35 $ 212,600 $ - Granted 390,000 0.50 4.35 69,500 - Exercised - - - - - Forfeited, expired or cancelled (10,200) 1.50 - (6,300) - Outstanding June 30, 2015 1,203,200 $ 0.58 3.03 $ 275,800 $ - Exercisable June 30, 2015 1,047,200 $ 0.59 2.83 $ 248,100 $ - (1) Remaining contractual term presented in years. (2) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing price of the Company's common stock as of June 30, 2015 and 2014, for those awards that have an exercise price currently below the closing price as of June 30, 2015 of $0.28 and as of June 30, 2014 of $0.48. (3) Aggregate Fair Value is calculated using the Black Scholes option pricing model to estimate fair value of stock-based compensation. |
Option expiration dates | Calendar Year Number of Weighted Average of Expiration Shares Exercise Price 2016 3,200 $ 1.50 2017 385,000 0.75 2018 425,000 0.50 2019 390,000 0.50 1,203,200 $ 0.58 |
Options by exercise price | Options Outstanding Options Exercisable Weighted Avg. Weighted Weighted Number Remaining Average Number Average Exercise of Contractual Exercise of Exercise Price Shares Life (in years) Price Shares Price $0.50 815,000 3.63 $0.50 659,000 $0.50 $0.75 385,000 1.78 $0.75 385,000 $0.75 $1.50 3,200 0.21 $1.50 3,200 $1.50 Totals 1,203,200 3.03 $0.58 1,047,200 $0.59 |
Stock option summary | Alanco Stock Option Summary (1) as of June 30, 2015 Options Issued and Options Options Balance Exercise Plan Authorized Granted Exercised Cancelled Outstanding to Issue (6) Price Range (5) 2002 (2) 75,000 156,000 27,000 94,200 34,800 -- $0.75 2002 D&O (3) 25,000 40,800 5,200 16,600 19,000 -- $0.75 2004 (2) 100,000 188,500 67,600 88,500 32,400 -- $0.75 2004 D&O (3) 50,000 83,100 13,200 33,100 36,800 -- $0.75 - $1.50 2005 (2) 150,000 310,108 81,971 160,108 68,029 -- $0.50 - $0.75 2005 D&O (3) 50,000 142,000 4,000 92,000 46,000 -- $0.50 2006 (2) 375,000 851,769 82,003 476,769 292,997 -- $0.50 - $0.75 2006 D&O (3) 125,000 261,924 23,750 136,924 101,250 -- $0.50 2011 (4) 750,000 777,948 291,024 30,000 456,924 2,052 $0.50 - $0.75 2014 (7) 500,000 115,000 0 0 115,000 385,000 $0.50 Totals 2,200,000 2,927,149 595,748 1,128,201 1,203,200 387,052 (1) Only includes plans with options currently outstanding or having a balance available to issue. (2) Employee Incentive Stock Option Plan. (3) Directors and Officers Stock Option Plan. (4) Employee Incentive Stock Option Plan which permits granting of stock or stock options. Grants include 291,000 Common Shares issued under the plan as payment of deferred employee compensation. (5) Range of exercise prices for outstanding options only. (6) Any options not issued under the 2002 or 2002 D&O Plans and the 2004 and 2004 D&O Plans are no longer available for issue as those plans were 10 year plans and have expired. (7) Stock Incentive Plan which permits granting of stock options and awards. All grants are stock options. |
3. NOTES RECEIVABLE (Tables)
3. NOTES RECEIVABLE (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Notes receivable | 2015 2014 Note receivable - beginning of year $ 409,000 $ 375,000 Advances - 25,000 Payments (115,200) (25,000) Accounting and loan fees added to note 29,000 34,000 Total 322,800 409,000 Less long-term (262,800) (109,000) Notes receivable - current $ 60,000 $ 300,000 |
4. MARKETABLE SECURITIES (Table
4. MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities Accumulated Net Cost Basis Market Value Unrealized Shares Per Share Cost Basis Per Share Total Value Gain (Loss) June 30, 2014 85,000 $ 5.16 $ 439,100 $ 6.59 $ 560,100 $ 121,200 $ - Shares sold (45,000) 5.16 (232,600) September 30, 2014 40,000 $ 5.16 $ 206,500 $ 5.75 $ 230,000 $ 23,500 $ - Shares sold (40,000) 5.16 (206,500) December 31, 2014, March 31, 2015 and June 30, 2015 - $ - $ - $ - $ - $ - $ - |
7. LAND, PROPERTY AND EQUIPME29
7. LAND, PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Land Property And Equipment Tables | |
Land, Property and Equipment | 2015 2014 Office furniture and equipment $ 51,300 $ 51,300 Water disposal facility 2,219,200 2,714,600 Production equipment 514,400 232,000 2,784,900 2,997,900 Less accumulated depreciation (491,900) (371,800) Land and permit costs 1,645,600 1,536,900 Net book value $ 3,938,600 $ 4,163,000 |
8. CONTINGENT PAYMENTS (Tables)
8. CONTINGENT PAYMENTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent payments | 2015 2014 Contingent land payment $ 653,900 $ 660,200 Contingent purchase price - 528,100 653,900 1,188,300 Less current portion (50,000) (50,000) Contingent payments, long-term $ 603,900 $ 1,138,300 |
10. INCOME TAXES (Tables)
10. INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income tax reconciliation | 2015 2014 Statutory rate 34.0% 34.0% State income taxes, net of federal income tax benefit 5.0% 5.0% Change in valuation allowance related to net operating loss carry-forwards and change in temporary differences -39.0% -39.0% 0.0% 0.0% |
Schedule of deferred tax asset | 2015 2014 Deferred tax asset $ 11,800,000 $ 13,200,000 Less: estimated Section 382 adjustment (4,000,000) (4,000,000) Net operating loss and capital loss carryforwards 7,800,000 9,200,000 Less: Valuation allowance (7,800,000) (9,200,000) Net deferred tax $ - $ - |
12. COMMITMENTS AND CONTINGEN32
12. COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Tables | |
Future minimum non-contingent payments | FUTURE MINIMUM PAYMENTS FOR THE YEAR ENDED JUNE 30, 2016 $ 35,600 2017 28,600 2018 28,600 2019 28,600 2020 28,600 Thereafter 52,400 TOTAL $ 202,400 |
1. NATURE OF OPERATIONS AND S33
1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Marketable securities | $ 560,100 | |
Asset retirement obligation | $ 429,700 | 423,700 |
Contingent land payment | 653,900 | 660,200 |
Contingent purchase price | 528,100 | |
Total | 1,083,600 | 2,172,100 |
Level 1 | ||
Marketable securities | 560,100 | |
Asset retirement obligation | 0 | 0 |
Contingent land payment | 0 | 0 |
Contingent purchase price | 0 | |
Total | 0 | 560,100 |
Level 2 | ||
Marketable securities | 0 | |
Asset retirement obligation | 0 | 0 |
Contingent land payment | 0 | 0 |
Contingent purchase price | 0 | |
Total | 0 | 0 |
Level 3 | ||
Marketable securities | 0 | |
Asset retirement obligation | 429,700 | 423,700 |
Contingent land payment | 653,900 | 660,200 |
Contingent purchase price | 528,100 | |
Total | $ 1,083,600 | $ 1,612,000 |
1. NATURE OF OPERATIONS AND S34
1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details 1) | Jun. 30, 2015USD ($) |
Opening balance | $ 1,612,000 |
Inflation adjustment | 6,000 |
Accretion expense | 18,800 |
Payments | (25,100) |
Reversals | (528,100) |
Closing balance | 1,083,600 |
Asset Retirement Obligation | |
Opening balance | 423,700 |
Inflation adjustment | 6,000 |
Accretion expense | 0 |
Payments | 0 |
Reversals | 0 |
Closing balance | 429,700 |
Contingent Land Payment | |
Opening balance | 660,200 |
Inflation adjustment | 0 |
Accretion expense | 18,800 |
Payments | (25,100) |
Reversals | 0 |
Closing balance | 653,900 |
Contingent Purchase Price | |
Opening balance | 528,100 |
Inflation adjustment | 0 |
Accretion expense | 0 |
Payments | 0 |
Reversals | (528,100) |
Closing balance | $ 0 |
2. STOCK-BASED COMPENSATION (De
2. STOCK-BASED COMPENSATION (Details) | 12 Months Ended |
Jun. 30, 2015$ / shares | |
Equity [Abstract] | |
Dividend yield | 0.00% |
Expected volatility | 62.00% |
Risk-free interest rate | 2.00% |
Expected life of options (in years) | 3 years 9 months |
Weighted average grant-date Black Scholes calculated fair value | $ 0.18 |
2. Stock-Based Compensation (36
2. Stock-Based Compensation (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Options Outstanding, Ending | 1,203,200 | |
Number of Options Exercisable | 1,047,200 | |
Weighted Average Exercise Price, Options Outstanding Ending | $ .58 | |
Weighted Average Exercise Price Exercisable | $ .59 | |
Option | ||
Options Outstanding, Beginning | 823,400 | 1,084,100 |
Shares Granted | 390,000 | 0 |
Shares Exercised | 0 | 0 |
Shares Forfeited or expired or cancelled | (10,200) | (260,700) |
Options Outstanding, Ending | 1,203,200 | 823,400 |
Number of Options Exercisable | 1,047,200 | 823,400 |
Weighted Average Exercise Price, Options Outstanding Beginning | $ 0.63 | $ 0.67 |
Weighted average exercise price per share Granted | .50 | 0 |
Weighted average exercise price per share Exercised | 0 | 0 |
Weighted average exercise price per share Forfeited or expired or cancelled | 1.50 | 0.78 |
Weighted Average Exercise Price, Options Outstanding Ending | .58 | 0.63 |
Weighted Average Exercise Price Exercisable | $ .59 | $ 0.63 |
Weighted average remaining contractual term Outstanding Beginning | 3 years 4 months 6 days | 4 years 2 months 5 days |
Weighted average remaining contractual term Granted | 4 years 4 months 6 days | |
Weighted average remaining contractual term Outstanding Ending | 3 years 11 days | 3 years 4 months 6 days |
Weighted average remaining contractual term Exercisable | 2 years 9 months 29 days | 3 years 4 months 6 days |
Aggregate fair value outstanding Beginning | $ 212,600 | $ 296,100 |
Aggregate fair value Granted | 69,500 | 0 |
Aggregate fair value Exercised | 0 | 0 |
Aggregate fair value Forfeited or expired | (6,300) | (83,500) |
Aggregate fair value Outstanding Ending | 275,800 | 212,600 |
Aggregate fair value Exercisable | 248,100 | 212,600 |
Aggregate Intrinsic Value Outstanding Beginning | 0 | 0 |
Aggregate Intrinsic Value Granted | 0 | 0 |
Aggregate Intrinsic Value Exercised | 0 | 0 |
Aggregate Intrinsic Value Forfeited or expired | 0 | 0 |
Aggregate Intrinsic Value Outstanding Ending | 0 | 0 |
Aggregate Intrinsic Value Exercisable | $ 0 | $ 0 |
2. Stock-Based Compensation (37
2. Stock-Based Compensation (Details 2) | 12 Months Ended |
Jun. 30, 2015$ / sharesshares | |
Options Outstanding, Ending | shares | 1,203,200 |
Weighted Average Exercise Price, Options Outstanding Ending | $ .58 |
Expiration Group 1 | |
Expiration | Jan. 1, 2016 |
Options Outstanding, Ending | shares | 3,200 |
Weighted Average Exercise Price, Options Outstanding Ending | $ 1.50 |
Expiration Group 2 | |
Expiration | Jan. 1, 2017 |
Options Outstanding, Ending | shares | 385,000 |
Weighted Average Exercise Price, Options Outstanding Ending | $ .75 |
Expiration Group 3 | |
Expiration | Jan. 1, 2018 |
Options Outstanding, Ending | shares | 425,000 |
Weighted Average Exercise Price, Options Outstanding Ending | $ .50 |
Expiration Group 4 | |
Expiration | Jan. 1, 2019 |
Options Outstanding, Ending | shares | 390,000 |
Weighted Average Exercise Price, Options Outstanding Ending | $ .50 |
2. Stock-Based Compensation (38
2. Stock-Based Compensation (Details 3) | 12 Months Ended |
Jun. 30, 2015$ / sharesshares | |
Options Outstanding, Ending | shares | 1,203,200 |
Weighted Average Remaining Contractual Life (in years) Outstanding | 3 years 11 days |
Weighted Average Exercise Price, Options Outstanding Ending | $ .58 |
Number of Options Exercisable | shares | 1,047,200 |
Weighted Average Exercise Price Exercisable | $ .59 |
Exercise Price $0.50 | |
Options Outstanding, Ending | shares | 815,000 |
Weighted Average Remaining Contractual Life (in years) Outstanding | 3 years 7 months 17 days |
Weighted Average Exercise Price, Options Outstanding Ending | $ 0.50 |
Number of Options Exercisable | shares | 659,000 |
Weighted Average Exercise Price Exercisable | $ 0.50 |
Exercise Price $0.75 | |
Options Outstanding, Ending | shares | 385,000 |
Weighted Average Remaining Contractual Life (in years) Outstanding | 1 year 9 months 11 days |
Weighted Average Exercise Price, Options Outstanding Ending | $ 0.75 |
Number of Options Exercisable | shares | 385,000 |
Weighted Average Exercise Price Exercisable | $ 0.75 |
Exercise Price $1.50 | |
Options Outstanding, Ending | shares | 3,200 |
Weighted Average Remaining Contractual Life (in years) Outstanding | 2 months 16 days |
Weighted Average Exercise Price, Options Outstanding Ending | $ 1.50 |
Number of Options Exercisable | shares | 3,200 |
Weighted Average Exercise Price Exercisable | $ 1.50 |
2. Stock-Based Compensation (39
2. Stock-Based Compensation (Details 4) | 12 Months Ended |
Jun. 30, 2015$ / sharesshares | |
Authorized | 2,200,000 |
Options Granted | 2,927,149 |
Options Issued and Exercised | 595,748 |
Options Cancelled | 1,128,201 |
Options Outstanding, Ending | 1,203,200 |
Balance to Issue | 387,052 |
2,002 | |
Authorized | 75,000 |
Options Granted | 156,000 |
Options Issued and Exercised | 27,000 |
Options Cancelled | 94,200 |
Options Outstanding, Ending | 34,800 |
Balance to Issue | 0 |
Exercise Price Range, Minimum | $ / shares | $ .75 |
2002 D&O | |
Authorized | 25,000 |
Options Granted | 40,800 |
Options Issued and Exercised | 5,200 |
Options Cancelled | 16,600 |
Options Outstanding, Ending | 19,000 |
Balance to Issue | 0 |
Exercise Price Range, Minimum | $ / shares | $ .75 |
2,004 | |
Authorized | 100,000 |
Options Granted | 188,500 |
Options Issued and Exercised | 67,600 |
Options Cancelled | 88,500 |
Options Outstanding, Ending | 32,400 |
Balance to Issue | 0 |
Exercise Price Range, Minimum | $ / shares | $ .75 |
2004 D&O | |
Authorized | 50,000 |
Options Granted | 83,100 |
Options Issued and Exercised | 13,200 |
Options Cancelled | 33,100 |
Options Outstanding, Ending | 36,800 |
Balance to Issue | 0 |
Exercise Price Range, Minimum | $ / shares | $ .75 |
Exercise Price Range, Maximum | $ / shares | $ 1.50 |
2,005 | |
Authorized | 150,000 |
Options Granted | 310,108 |
Options Issued and Exercised | 81,971 |
Options Cancelled | 160,108 |
Options Outstanding, Ending | 68,029 |
Balance to Issue | 0 |
Exercise Price Range, Minimum | $ / shares | $ .50 |
Exercise Price Range, Maximum | $ / shares | $ .75 |
2005 D&O | |
Authorized | 50,000 |
Options Granted | 142,000 |
Options Issued and Exercised | 4,000 |
Options Cancelled | 92,000 |
Options Outstanding, Ending | 46,000 |
Balance to Issue | 0 |
Exercise Price Range, Minimum | $ / shares | $ .50 |
2,006 | |
Authorized | 375,000 |
Options Granted | 851,769 |
Options Issued and Exercised | 82,003 |
Options Cancelled | 476,769 |
Options Outstanding, Ending | 292,997 |
Balance to Issue | 0 |
Exercise Price Range, Minimum | $ / shares | $ .50 |
Exercise Price Range, Maximum | $ / shares | $ .75 |
2006 D&O | |
Authorized | 125,000 |
Options Granted | 261,924 |
Options Issued and Exercised | 23,750 |
Options Cancelled | 136,924 |
Options Outstanding, Ending | 101,250 |
Balance to Issue | 0 |
Exercise Price Range, Minimum | $ / shares | $ .50 |
2,011 | |
Authorized | 750,000 |
Options Granted | 777,948 |
Options Issued and Exercised | 291,024 |
Options Cancelled | 30,000 |
Options Outstanding, Ending | 456,924 |
Balance to Issue | 2,052 |
Exercise Price Range, Minimum | $ / shares | $ .50 |
Exercise Price Range, Maximum | $ / shares | $ .75 |
2,014 | |
Authorized | 500,000 |
Options Granted | 115,000 |
Options Issued and Exercised | 0 |
Options Cancelled | 0 |
Options Outstanding, Ending | 115,000 |
Balance to Issue | 385,000 |
Exercise Price Range, Minimum | $ / shares | $ .50 |
3. NOTES RECEIVABLE (Details)
3. NOTES RECEIVABLE (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Notes Receivable Details | ||
Note receivable - beginning of year | $ 300,000 | |
Advances | 0 | $ 25,000 |
Payments | (115,200) | (25,000) |
Accounting and loan fees added to note | 29,000 | 34,000 |
Total Notes receivable | 322,800 | 409,000 |
Less long-term | (262,800) | (109,000) |
Notes receivable - current | $ 60,000 | $ 300,000 |
4. MARKETABLE SECURITIES (Detai
4. MARKETABLE SECURITIES (Details) | 3 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Net Shares | ||||
Beginning balance | 0 | 0 | 40,000 | 85,000 |
Shares sold | (40,000) | (45,000) | ||
Ending balance | 0 | 0 | 0 | 40,000 |
Cost Basis Per Share | ||||
Beginning balance | 0 | 0 | 5.16 | 5.16 |
Shares sold | 5.16 | 5.16 | ||
Ending balance | 0 | 0 | 0 | 5.16 |
Cost Basis Total Cost | ||||
Beginning balance | 0 | 0 | 206,500 | 439,100 |
Shares sold | (206,500) | (232,600) | ||
Ending balance | 0 | 0 | 0 | 206,500 |
Market Value Per Share | ||||
Beginning balance | 0 | 0 | 5.75 | 6.59 |
Ending balance | 0 | 0 | 0 | 5.75 |
Market Value Total Value | ||||
Beginning balance | 0 | 0 | 230,000 | 560,100 |
Ending balance | 0 | 0 | 0 | 230,000 |
Accumulated Unrealized Gain | ||||
Beginning balance | 0 | 0 | 23,500 | 121,200 |
Ending balance | 0 | 0 | 0 | 23,500 |
Accumulated Unrealized Loss | ||||
Beginning balance | 0 | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 | 0 |
7. Land, Property and Equipme42
7. Land, Property and Equipment (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Land Property And Equipment Details | ||
Office furniture and equipment | $ 51,300 | $ 51,300 |
Water disposal facility | 2,219,200 | 2,714,600 |
Production equipment | 514,400 | 232,000 |
Land, property and equipment | 2,784,900 | 2,997,900 |
Less accumulation depreciation | (491,900) | (371,800) |
Land and permit costs | 1,645,600 | 1,536,900 |
Net book value | $ 3,938,600 | $ 4,163,000 |
7. LAND, PROPERTY AND EQUIPME43
7. LAND, PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Land Property And Equipment Details Narrative | ||
Depreciation and amortization | $ 194,000 | $ 181,600 |
Impairment charge | $ 0 | $ 160,500 |
8. CONTINGENT PAYMENTS (Details
8. CONTINGENT PAYMENTS (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Contingent Payments Details | ||
Contingent land payment | $ 653,900 | $ 660,200 |
Contingent purchase price | 0 | 528,100 |
Contingent payment | 653,900 | 1,188,300 |
Less current portion | (50,000) | (50,000) |
Contingent payments, long-term | $ 603,900 | $ 1,138,300 |
9. Asset Retirement Obligation
9. Asset Retirement Obligation (Details Narrative) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Asset Retirement Obligation Details Narrative | ||
Asset Retirement Obligation | $ 429,700 | $ 423,700 |
Trust account-Asset retirement obligation | $ 67,400 | $ 48,700 |
10. INCOME TAXES (Details)
10. INCOME TAXES (Details) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Statutory rate | 34.00% | 34.00% |
State income taxes, net of federal income tax benefit | 5.00% | 5.00% |
Reduction in valuation allowance related to net operating loss carry-forwards and change in temporary differences | (39.00%) | (39.00%) |
Income taxes | 0.00% | 0.00% |
10. INCOME TAXES (Details 1)
10. INCOME TAXES (Details 1) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred tax assets (liabilities): | ||
Deferred tax asset | $ 11,800,000 | $ 13,200,000 |
Less: estimated Section 382 adjustment | (4,000,000) | (4,000,000) |
Net operating loss and capital loss carryforwards | 7,800,000 | 9,200,000 |
Less: Valuation allowance | (7,800,000) | (9,200,000) |
Net deferred tax | $ 0 | $ 0 |
10. INCOME TAXES (Details Narra
10. INCOME TAXES (Details Narrative) | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Income Taxes Details Narrative | |
Operating loss carry-forward | $ 33,500,000 |
Expiration of carryforward | 2017-2034 |
12. COMMITMENTS AND CONTINGEN49
12. COMMITMENTS AND CONTINGENCIES (Details) | Jun. 30, 2015USD ($) |
FUTURE MINIMUM PAYMENTS FOR THE YEAR ENDED JUNE 30, | |
2,016 | $ 35,600 |
2,017 | 28,600 |
2,018 | 28,600 |
2,019 | 28,600 |
2,020 | 28,600 |
Thereafter | 52,400 |
TOTAL | $ 202,400 |
12. COMMITMENTS AND CONTINGEN50
12. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Commitments And Contingencies Details Narrative | ||
Rent expense | $ 53,300 | $ 50,200 |
14. RETIREMENT PLAN (Details Na
14. RETIREMENT PLAN (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Retirement Plan Details Narrative | ||
Company's matching contributions | $ 12,000 | $ 7,900 |
15. LIQUIDITY AND GOING CONCE52
15. LIQUIDITY AND GOING CONCERN (Details Narrative) (USD $) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Liquidity And Going Concern Details Narrative Usd | ||
Net income (loss) | $ (900,600) | $ (106,200) |