Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May. 09, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | ALANCO TECHNOLOGIES INC | |
Entity Central Index Key | 98,618 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
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 Common Stock, Shares Outstanding | 4,982,400 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 105,500 | $ 788,900 |
Accounts receivable - trade, net | 8,100 | 45,900 |
Other receivables - related party | 5,100 | 4,200 |
Note receivable, current - related party | 60,000 | 60,000 |
Assets held for sale | 1,650,800 | 0 |
Prepaid expenses and other current assets | 28,900 | 164,500 |
Total current assets | 1,858,400 | 1,063,500 |
LAND, PROPERTY AND EQUIPMENT, NET | 2,156,900 | 3,938,600 |
OTHER ASSETS | ||
Note receivable, long-term - related party | 185,400 | 262,800 |
Trust account - asset retirement obligation | 81,500 | 67,400 |
TOTAL ASSETS | 4,282,200 | 5,332,300 |
CURRENT LIABILITIES | ||
Accounts payable | 167,000 | 151,100 |
Accrued expenses | 154,000 | 191,800 |
Contingent payments, current | 25,000 | 50,000 |
Total current liabilities | 346,000 | 392,900 |
LONG-TERM LIABILITIES | ||
Contingent payments, long-term | 643,000 | 603,900 |
Asset retirement obligation | 429,700 | 429,700 |
TOTAL LIABILITIES | 1,418,700 | 1,426,500 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock - no shares issued or outstanding | 0 | 0 |
Common Stock Class A - 75,000,000 no par shares authorized, 4,982,400 shares issued and outstanding at March 31, 2016 and June 30, 2015 | 109,187,100 | 109,159,300 |
Accumulated Deficit | (106,323,600) | (105,253,500) |
Total shareholders' equity | 2,863,500 | 3,905,800 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 4,282,200 | $ 5,332,300 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - shares | Mar. 31, 2016 | Jun. 30, 2015 |
Condensed Consolidated Balance Sheets | ||
Class A Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Class A Common Stock, Shares Issued | 4,982,400 | 4,982,400 |
Class A Common Stock, Shares Outstanding | 4,982,400 | 4,982,400 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Consolidated Statements Of Operations | ||||
NET REVENUES | $ 13,800 | $ 231,200 | $ 185,900 | $ 674,800 |
Cost of revenues | 114,800 | 211,800 | 507,400 | 590,400 |
GROSS PROFIT (LOSS) | (101,000) | 19,400 | (321,500) | 84,400 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | ||||
Corporate expenses | 73,500 | 68,300 | 274,700 | 175,100 |
Alanco Energy Services | 154,600 | 191,600 | 467,900 | 585,800 |
Stock-based compensation | 0 | 13,900 | 27,800 | 59,300 |
Selling general and administrative expenses | 228,100 | 273,800 | 770,400 | 820,200 |
OPERATING LOSS | (329,100) | (254,400) | (1,091,900) | (735,800) |
OTHER INCOME | ||||
Interest income | 7,100 | 10,400 | 21,800 | 33,500 |
Gain on sale of marketable securities | 0 | 0 | 0 | 103,200 |
Other income | 0 | 0 | 0 | 200 |
NET LOSS | $ (322,000) | $ (244,000) | $ (1,070,100) | $ (598,900) |
NET LOSS PER SHARE - BASIC AND DILUTED | $ (0.06) | $ (0.05) | $ (0.21) | $ (0.12) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 4,982,400 | 4,971,900 | 4,982,400 | 4,987,700 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - 9 months ended Mar. 31, 2016 - USD ($) | COMMON STOCK | ACCUMULATED DEFICIT | Total |
Beginning balance, Amount at Jun. 30, 2015 | $ 109,159,300 | $ (105,253,500) | $ 3,905,800 |
Beginning balance, Shares at Jun. 30, 2015 | 4,982,400 | ||
Value of stock-based compensation | $ 27,800 | 27,800 | |
Net loss | (1,070,100) | (1,070,100) | |
Ending balance, Amount at Mar. 31, 2016 | $ 109,187,100 | $ (106,323,600) | $ 2,863,500 |
Ending balance, Shares at Mar. 31, 2016 | 4,982,400 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (1,070,100) | $ (598,900) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 137,700 | 141,300 |
Accretion of fair value - contingent payments | 14,100 | 25,300 |
Gain on sale of marketable securities | 0 | (103,200) |
Stock issued for services | 0 | 31,500 |
Stock-based compensation | 27,800 | 27,800 |
Reserve recorded for American Citizenship Center, LLC note receivable | 50,000 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 37,800 | (31,400) |
Other receivables - related party | (900) | 4,700 |
Prepaid expenses and other current assets | 135,600 | 50,100 |
Trust account - asset retirement obligation | (14,100) | (14,000) |
Accounts payable and accrued expenses | (21,900) | (8,900) |
Contingent land payment | 0 | (21,700) |
Net cash used in operating activities | (704,000) | (497,400) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from repayment of American Citizenship Center, LLC note receivable | 27,400 | 92,300 |
Purchase of land, property, and equipment | (6,800) | (371,200) |
Proceeds from sale of marketable securities | 0 | 542,100 |
Net cash provided by investing activities | 20,600 | 263,200 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Purchase of treasury shares | 0 | (20,800) |
Net cash used in financing activities | 0 | (20,800) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (683,400) | (255,000) |
CASH AND CASH EQUIVALENTS, beginning of period | 788,900 | 1,215,600 |
CASH AND CASH EQUIVALENTS, end of period | 105,500 | 960,600 |
Non-cash investing & financing activities: | ||
Value of stock-based compensation for options | 27,800 | 27,800 |
Other comprehensive income adjustment | 0 | 121,200 |
Note receivable issued for ACC amendment and accounting fees | $ 0 | $ 29,000 |
A. Basis of Presentation, Accou
A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements | 9 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements | Nature of Operations Alanco Technologies, Inc. (Stock Symbol: ALAN) was incorporated in 1969 under the laws of the State of Arizona. Unless otherwise noted, the Company or Alanco refers to Alanco Technologies, Inc. and its wholly-owned subsidiaries. During the fiscal year ended June 30, 2012, the Company formed Alanco Energy Services, Inc. (AES), for the purpose of obtaining property to establish a water disposal facility near Grand Junction, CO to receive produced water generated as a byproduct from oil and natural gas production in Western Colorado. The new Deer Creek facility started to receive produced water in August 2012. During the quarter ended March 31, 2016, the Company implemented a plan to divest of its 160 acre owned and undeveloped land and associated permits located in Whitewater, Colorado and known as Indian Mesa. Refer to Note D Assets Held for Sale for further discussion. Basis of Presentation The unaudited condensed consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In our opinion, the accompanying condensed consolidated financial statements include all adjustments necessary for a fair presentation of such condensed consolidated financial statements. Such necessary adjustments consist of normal recurring items and the elimination of all significant intercompany balances and transactions. The condensed consolidated balance sheet as of June 30, 2015 was derived from audited financial statements, but does not include all disclosures required by GAAP. These interim condensed consolidated financial statements should be read in conjunction with the Companys June 30, 2015 Annual Report filed on Form 10-K. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Fair Value of Assets and Liabilities The estimated fair value for assets and liabilities are determined at discrete points in time based on relevant information. The Accounting Standards Codification (ASC) prioritizes inputs used in measuring fair value into a hierarchy of three levels: Level 1 unadjusted quoted prices for identical assets or liabilities traded in active markets, Level 2 observable inputs other than quoted prices included within Level 1 such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and Level 3 unobservable inputs in which little or no market activity exists that are significant to the fair value of the assets or liabilities, therefore requiring an entity to develop its own assumptions that market participants would use in pricing. These estimates involve uncertainties and cannot be determined with precision. The Companys policy is to recognize transfers into and out of Level 1, 2 and 3 categories as of the date of the event or change in circumstances occurs. The carrying amounts of receivables, prepaid expenses, accounts payable, and accrued liabilities approximate fair value given their short-term nature or their effective interest rates, which represent Level 3 input levels. The following are the classes of assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and June 30, 2015, 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 March 31, 2016 Level 1: Quoted Prices Level 2: in Active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable March 31, Assets Inputs Inputs 2016 Asset Retirement Obligation $ - $ - $ 429,700 $ 429,700 Contingent Land Payment - - 668,000 668,000 $ - $ - $ 1,097,700 $ 1,097,700 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 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 nine months ended March 31, 2016. Asset Contingent Retirement Land Obligation Payment Total Opening balance $ 429,700 $ 653,900 $ 1,083,600 Accretion expense - 14,100 14,100 Closing balance $ 429,700 $ 668,000 $ 1,097,700 Fair Value of Asset Retirement Obligation Fair Value of Contingent Payments Assets Held for Sale 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 operation but does not anticipate the adoption of the guidance to have a material impact on its financial position and results of operations. In January 2016, the FASB issued guidance regarding the enhancement of reporting financial instruments including aspects of recognition, measurement, presentation and disclosure. The guidance is effective for periods beginning after December 15, 2017 including interim periods within those fiscal years. While a portion of the guidance allows for early application, it does not permit complete early adoption. The Company is currently assessing the impact on its financial position and results of operations. In February 2016, the FASB issued guidance regarding lease reporting. The guidance requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with terms of more than 12 months. The guidance is effective for periods beginning after December 15, 2018 including interim periods within those fiscal years and early adoption is permitted. The Company is currently assessing the impact on its financial position and results of operations. In March 2016, the FASB issued guidance under the simplification initiative regarding stock compensation. The guidance is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted provided that all amendments are adopted in the same period. The Company is currently assessing the 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. |
B. Stock-Based Compensation
B. Stock-Based Compensation | 9 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stock-Based Compensation | The Company has stock-based compensation plans and reports stock-based compensation expense for all stock-based compensation awards based on the estimated grant date fair value. The value of the compensation cost is amortized on a straight-line basis over the requisite service periods of the award (generally the option vesting term). The Company estimates fair value 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 Companys plans is measured using the historical daily changes in the market price of the Companys common stock over the expected term of the award and contemplation of future activity; · Risk-free interest rate is 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 managements analysis of potential future forfeitures. 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 and are more fully discussed in our Form 10-K for the year ended June 30, 2015. The following table summarizes the Companys stock option activity during the first nine months of fiscal 2016: Weighted Weighted Average Average Remaining Aggregate Aggregate Exercise Price Contractual Instrinsic Fair Shares Per Share Term (1) Value (2) Value (3) Outstanding July 1, 2015 1,203,200 $0.58 3.03 $ - $ 275,800 Granted - - - - - Exercised - - - - - Forfeited or expired (3,200) $1.50 - - (2,300) Outstanding March 31, 2016 1,200,000 $0.58 2.28 $ - $ 273,500 Exercisable March 31, 2016 1,200,000 $0.58 2.28 $ - $ 273,500 (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 March 31, 2016, for those awards that have an exercise price below the closing price as of March 31, 2016 of $0.17. (3) Aggregate Fair Value is calculated using the Black Scholes option pricing model to estimate fair value of stock-based compensation. As of March 31, 2016, there was no unamortized Black Scholes value remaining to be recognized as stock-based compensation expense. |
C. Note Receivable - Related Pa
C. Note Receivable - Related Party | 9 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Note Receivable - Related Party | Note receivable at March 31, 2016 and June 30, 2015 consists of the following: March 31, June 30, 2016 2015 Note receivable $ 295,400 $ 322,800 Less current portion (60,000) (60,000) Less reserve (50,000) - Note receivable, long-term, net $ 185,400 $ 262,800 Note receivable, net of reserve, of $245,400 and $322,800 at March 31, 2016 and June 30, 2015, respectively, represents a note due from American Citizenship Center, LLC (ACC), a related party. The Company has recorded a reserve of $50,000 as of March 31, 2016. At March 31, 2016, interest payments totaling approximately $2,300 were in arrears and have subsequently been paid. In January 2016, ACC and the Company modified the loan agreement by deferring any principal payments to August 31, 2016, at which time minimum monthly payments of $10,000 are payable and continue through November 30, 2016. The minimum monthly payments are increased to $20,000 on December 31, 2016 and January 31, 2017 and to $30,000 starting February 28, 2017 with the balance due on the unchanged maturity date of August 31, 2017. All other terms of the note, including the interest rate of 9.5% per annum remained the same. Based on the most recent payment history, the Company has classified $60,000 of the note as current and $185,400 of the note as long-term as of March 31, 2016. ACCs business plan is based on the Executive Action, known as DAPA, issued by President Obama in November 2014. 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 until the court case is resolved. In January 2016, after a series of legal actions more fully described in the Companys Form 10-K for the fiscal year ended June 30, 2015, the Supreme Court granted an oral hearing which was held in April 2016 with a ruling to be made in June 2016. The delay in the DAPA program resulting from the court case has negatively impacted ACCs operations and consequently its ability to make the minimum required payments under the previous loan terms. ACC is implementing other immigration and citizenship services to improve operations while the DAPA case is pending in the Supreme Court. However, a positive DAPA ruling or other immigration reform is significant to ACCs ability to meet its financial obligations. |
D. Assets Held for Sale
D. Assets Held for Sale | 9 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
D. Assets Held for Sale | During the quarter ended March 31, 2016, the Company implemented a plan to divest of its 160 acre owned and undeveloped land and associated permits located in Whitewater, Colorado and known as Indian Mesa. The Company is utilizing the services of an investment banker to represent the Company in the sale of these assets. During the quarter ended March 31, 2016, the Company executed a letter of intent to sell the Indian Mesa land and associated permits. Accordingly, the Assets Held for Sale presented in the attached balance sheet as of March 31, 2016 represents the Indian Mesa land and associated permits. The reclassification of the assets to Assets Held for Sale does not affect the Condensed Consolidated Statements of Operations as the Indian Mesa land is undeveloped and has no associated operations. |
E. Land, Property and Equipment
E. Land, Property and Equipment | 9 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Land, Property and Equipment | Land, Property and Equipment at March 31, 2016 and June 30, 2015 consist of the following: June 30, 2015 Additions March 31, 2016 Office furniture and equipment $ 51,300 $ - $ 51,300 Water disposal facility 2,219,200 1,600 2,220,800 Production equipment 514,400 - 514,400 2,784,900 1,600 2,786,500 Less accumulation depreciation (491,900) (137,700) (629,600) Land and permit costs 1,645,600 - Net book value $ 3,938,600 $ (136,100) $ 2,156,900 |
F. Earnings Per Share
F. Earnings Per Share | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic and diluted income (loss) per share of common stock was computed by dividing net loss by the weighted average number of shares of common stock outstanding. Diluted earnings per share are computed based on the weighted average number of shares of common stock and dilutive securities outstanding during the period. Dilutive securities are any options, warrants, convertible debt, and preferred stock that are freely exercisable into common stock at less than the prevailing market price. Dilutive securities are not included in the weighted average number of shares when inclusion would increase the earnings per share or decrease the loss per share. For the nine months ended March 31, 2016 and 2015, there were no dilutive securities included in the loss per share calculation as the effect would be antidilutive. Considering all holders rights, total common stock equivalents issuable under these potentially dilutive securities are approximately 1,200,000 and 1,203,200 at March 31, 2016 and 2015, respectively |
G. Equity
G. Equity | 9 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Equity | The Company did not issue any shares of Common Stock during the nine months ended March 31, 2016. During the nine months ended March 31, 2016, the Company recognized the value of stock-based compensation in the amount of $27,800. The Company has authorized 25,000,000 shares of Preferred Stock of which 5,000,000 shares have been allocated to Series A, 500,000 have been allocated to Series B, 400,000 have been allocated to Series C Junior Participating, 500,000 have been allocated to Series D, and 750,000 have been allocated to Series E. At March 31, 2016 and June 30, 2015, no Preferred Stock of any series was issued or outstanding. |
H. Contingent Payments
H. Contingent Payments | 9 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Payments | Contingent payments March 31, June 30, 2016 2015 Contingent land payment $ 668,000 $ 653,900 Less: current portion (25,000) (50,000) Contingent payments, long-term $ 643,000 $ 603,900 Contingent land payment |
I. Asset Retirement Obligation
I. Asset Retirement Obligation | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Asset Retirement Obligation | The Company has recognized estimated asset retirement obligations (closure cost) of $429,700 at March 31, 2016 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 Companys 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 closure cost estimate, in 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. A present value discount has not been taken as the estimated closure costs, excluding regulatory changes and inflation adjustments, are anticipated to remain fairly consistent over the operational life of the facility. The Company reviews the asset retirement obligation quarterly and performs a formal annual assessment of its estimates to determine if an adjustment to the value of the asset retirement obligation is required. 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 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. During the nine months ended March 31, 2016, the Company made the required quarterly payments. The balances in the trust account for the asset retirement obligation as of March 31, 2016 and June 30, 2015 were $81,500 and $67,400, respectively. |
J. Commitments and Contingencie
J. Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Legal Proceedings The Company is a defendant and counterclaimant in litigation involving its former subsidiary, TSI Dissolution Corp. (formerly known as Alanco/TSI Prism Inc. (TSI)) and the purchaser of TSIs assets, Black Creek Integrated Systems Corp. (Black Creek). Black Creek filed a complaint in the Maricopa County Superior Court against TSI and the Company, being Civil Case NO. CV2011-014175, claiming various offsets from the purchase price, primarily concerning inventory adjustments, and TSI counterclaimed for monies due from Black Creek under the purchase agreement. Following a trial during fiscal 2014, the court awarded a net judgment in favor of Black Creek in the amount of $16,800, plus attorneys fees and accrued interest, resulting in a total judgment in the amount of $128,300 for which the Company recorded an accrued liability at June 30, 2014. In addition, the Company posted a bond with the court in conjunction with the Companys appeal of the judgment. In May 2015, the State of Arizona Division One Court of Appeals vacated the trial courts damages award and remanded to the trial court to direct the parties to follow dispute guidelines defined in the asset purchase agreement. In addition, the appellate courts decision vacated the trial courts attorneys fee award and stated that TSI is entitled to an award of fees on appeal. As a result, at June 30, 2015, the Company reversed the accrual of $128,300 for the prior judgment. The Company is currently following the courts direction and working under the dispute guidelines defined in the asset purchase agreement. The Company believes that the lower courts judgment failed to address, among other matters, inventory reserves established for the specific items of inventory which were the subject of Black Creeks concerns, which if properly addressed would result in a net judgment in favor of the Company, with an attendant award of attorneys fees in favor of the Company. Therefore, no accrual for the loss contingency was deemed necessary at March 31, 2016. The Company may from time to time be involved in litigation arising from the normal course of business. As of March 31, 2016, there was no other such litigation pending deemed material by the Company. |
K. Related Party Transactions
K. Related Party Transactions | 9 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Effective as of February 25, 2016, the Companys Board of Directors appointed, elected and confirmed Joshua Silverman to serve as a Director on the Companys Board of Directors. Mr. Silverman will have all the duties, privileges and responsibilities inherent therein and will receive the same compensation as current board members. Mr. Silverman, as reported on Schedule 13D filed on May 7, 2014, is a joint filer sharing ownership and voting rights with Iroquois Capital Management, LLC, Iroquois Master Fund Ltd., and Mr. Richard Abbe of 474,398 shares of the Companys Class A Common Stock. At March 31, 2016 and June 30, 2015 the Company had a note due from American Citizenship Center, LLC (ACC), a related party, with balances, net of reserve, of $245,400 and $322,800, respectively. Refer to Note C Note Receivable for further discussion. During the nine months ended March 31, 2016 the Company billed ACC a total of approximately $22,100 which includes approximately $21,600 for interest on the note and $500 of legal fees associated with the last amendment to the note. At March 31, 2016, the Company had unpaid other receivables from ACC in the amount of $5,100, representing two months of interest and legal fees. All amounts due have been subsequently received. |
L. Liquidity and Going Concern
L. Liquidity and Going Concern | 9 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity and Going Concern | During the nine months ended March 31, 2016, the Company reported a net loss of ($1,070,100) and for fiscal year ended June 30, 2015, the Company reported a net loss of ($900,600). 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 Companys ability to continue as a going concern for the next year. Management cannot assure that it will achieve projections. If adequate funds are not available or are not available on acceptable terms, the Companys 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. The Company has implemented a plan to divest of its 160 acre owned and undeveloped land and associated permits located in Whitewater, Colorado and known as Indian Mesa. Refer to Note D - Assets Held for Sale for further discussion. Accordingly, the accompanying condensed 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 Companys independent registered public accounting firm 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 Companys ability to continue as a going concern. |
A. Basis of Presentation, Acc19
A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Alanco Technologies, Inc. (Stock Symbol: ALAN) was incorporated in 1969 under the laws of the State of Arizona. Unless otherwise noted, the Company or Alanco refers to Alanco Technologies, Inc. and its wholly-owned subsidiaries. During the fiscal year ended June 30, 2012, the Company formed Alanco Energy Services, Inc. (AES), for the purpose of obtaining property to establish a water disposal facility near Grand Junction, CO to receive produced water generated as a byproduct from oil and natural gas production in Western Colorado. The new Deer Creek facility started to receive produced water in August 2012. During the quarter ended March 31, 2016, the Company implemented a plan to divest of its 160 acre owned and undeveloped land and associated permits located in Whitewater, Colorado and known as Indian Mesa. Refer to Note D Assets Held for Sale for further discussion. |
Basis of Presentation | The unaudited condensed consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In our opinion, the accompanying condensed consolidated financial statements include all adjustments necessary for a fair presentation of such condensed consolidated financial statements. Such necessary adjustments consist of normal recurring items and the elimination of all significant intercompany balances and transactions. The condensed consolidated balance sheet as of June 30, 2015 was derived from audited financial statements, but does not include all disclosures required by GAAP. These interim condensed consolidated financial statements should be read in conjunction with the Companys June 30, 2015 Annual Report filed on Form 10-K. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The estimated fair value for assets and liabilities are determined at discrete points in time based on relevant information. The Accounting Standards Codification (ASC) prioritizes inputs used in measuring fair value into a hierarchy of three levels: Level 1 unadjusted quoted prices for identical assets or liabilities traded in active markets, Level 2 observable inputs other than quoted prices included within Level 1 such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and Level 3 unobservable inputs in which little or no market activity exists that are significant to the fair value of the assets or liabilities, therefore requiring an entity to develop its own assumptions that market participants would use in pricing. These estimates involve uncertainties and cannot be determined with precision. The Companys policy is to recognize transfers into and out of Level 1, 2 and 3 categories as of the date of the event or change in circumstances occurs. The carrying amounts of receivables, prepaid expenses, accounts payable, and accrued liabilities approximate fair value given their short-term nature or their effective interest rates, which represent Level 3 input levels. The following are the classes of assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and June 30, 2015, 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 March 31, 2016 Level 1: Quoted Prices Level 2: in Active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable March 31, Assets Inputs Inputs 2016 Asset Retirement Obligation $ - $ - $ 429,700 $ 429,700 Contingent Land Payment - - 668,000 668,000 $ - $ - $ 1,097,700 $ 1,097,700 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 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 nine months ended March 31, 2016. Asset Contingent Retirement Land Obligation Payment Total Opening balance $ 429,700 $ 653,900 $ 1,083,600 Accretion expense - 14,100 14,100 Closing balance $ 429,700 $ 668,000 $ 1,097,700 |
Fair Value of Asset Retirement Obligation | The Deer Creek asset retirement obligation is the estimated cost to close the Deer Creek facility under terms of the lease, meeting environmental and State of Colorado regulatory requirements. The estimate is determined at discrete points in time based upon significant unobservable inputs in which little or no market activity exists that is significant to the fair value of the liability, therefore requiring the Company to develop its own assumptions. Managements estimate of the asset retirement obligation is based upon a cost estimate developed by a consultant knowledgeable of government closure requirements and costs incurred at similar water disposal facility operations. A present value discount has not been taken as the estimated closure costs, excluding regulatory changes and inflation adjustments, are anticipated to remain fairly consistent over the operational life of the facility. The lack of an active market to validate the estimated asset retirement obligation results in the fair value of the asset retirement obligation to be a Level 3 fair value measurement. ASC Topic 410-20: Asset Retirement Obligations requires the Company to review the asset retirement obligation on a recurring basis and record changes in the period incurred. |
Fair Value of Contingent Payments | The contingent land payment and contingent purchase price liabilities are also determined at discrete points in time based upon unobservable inputs in which little or no market activity exists that is significant to the fair value of the liability, therefore requiring the Company to develop its own assumptions. In calculating the estimate of fair value for both of the contingent payments, management completed an estimate of the present value of each identified contingent liability based upon projected income, cash flows and capital expenditures for the Deer Creek facility developed under plans currently approved by the Companys board of directors. Different assumptions relative to the expansion or alternative uses of the Deer Creek and Indian Mesa facilities could result in significantly different valuations. The projected payments have been discounted at a rate of 3% per annum to determine net present value. The lack of an active market to validate the estimated contingent land liability results in the fair value of the contingent land liability to be a Level 3 fair value measurement. ASC Topic 820: Fair Value Measurement requires the Company to review the contingent land liability on a recurring basis and record changes in the period incurred. The contingent purchase price liability is estimated to be zero as of March 31, 2016 and June 30, 2015. |
Assets Held for Sale | The Company has implemented a plan to divest of its 160 acre owned and undeveloped land and associated permits located in Whitewater, Colorado and known as Indian Mesa. As a result, the value of the land and associated permits has been reclassified as Assets Held for Sale at March 31, 2016. A long-lived asset classified as held for sale shall be measured at the lower of its carrying amount or fair value less cost to sell. The value of Assets Held for Sale represents the carrying amount. |
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 operation but does not anticipate the adoption of the guidance to have a material impact on its financial position and results of operations. In January 2016, the FASB issued guidance regarding the enhancement of reporting financial instruments including aspects of recognition, measurement, presentation and disclosure. The guidance is effective for periods beginning after December 15, 2017 including interim periods within those fiscal years. While a portion of the guidance allows for early application, it does not permit complete early adoption. The Company is currently assessing the impact on its financial position and results of operations. In February 2016, the FASB issued guidance regarding lease reporting. The guidance requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with terms of more than 12 months. The guidance is effective for periods beginning after December 15, 2018 including interim periods within those fiscal years and early adoption is permitted. The Company is currently assessing the impact on its financial position and results of operations. In March 2016, the FASB issued guidance under the simplification initiative regarding stock compensation. The guidance is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted provided that all amendments are adopted in the same period. The Company is currently assessing the 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. |
A. Basis of Presentation, Acc20
A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | Fair Value at March 31, 2016 Level 1: Quoted Prices Level 2: in Active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable March 31, Assets Inputs Inputs 2016 Asset Retirement Obligation $ - $ - $ 429,700 $ 429,700 Contingent Land Payment - - 668,000 668,000 $ - $ - $ 1,097,700 $ 1,097,700 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 |
Reconciliation of Assets and liabilities measured at fair value on a recurring basis | Asset Contingent Retirement Land Obligation Payment Total Opening balance $ 429,700 $ 653,900 $ 1,083,600 Accretion expense - 14,100 14,100 Closing balance $ 429,700 $ 668,000 $ 1,097,700 |
B. Stock-Based Compensation (Ta
B. Stock-Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stock option activity | Weighted Weighted Average Average Remaining Aggregate Aggregate Exercise Price Contractual Instrinsic Fair Shares Per Share Term (1) Value (2) Value (3) Outstanding July 1, 2015 1,203,200 $0.58 3.03 $ - $ 275,800 Granted - - - - - Exercised - - - - - Forfeited or expired (3,200) $1.50 - - (2,300) Outstanding March 31, 2016 1,200,000 $0.58 2.28 $ - $ 273,500 Exercisable March 31, 2016 1,200,000 $0.58 2.28 $ - $ 273,500 (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 March 31, 2016, for those awards that have an exercise price below the closing price as of March 31, 2016 of $0.17. (3) Aggregate Fair Value is calculated using the Black Scholes option pricing model to estimate fair value of stock-based compensation. |
C. Note Receivable - Related 22
C. Note Receivable - Related Party (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
C. Note Receivable - Related Party Tables | |
Summary of Note receivable | March 31, June 30, 2016 2015 Note receivable $ 295,400 $ 322,800 Less current portion (60,000) (60,000) Less reserve (50,000) - Note receivable, long-term, net $ 185,400 $ 262,800 |
E. Land, Property and Equipme23
E. Land, Property and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
E. Land Property And Equipment Tables | |
Land, Property and Equipment | June 30, 2015 Additions March 31, 2016 Office furniture and equipment $ 51,300 $ - $ 51,300 Water disposal facility 2,219,200 1,600 2,220,800 Production equipment 514,400 - 514,400 2,784,900 1,600 2,786,500 Less accumulation depreciation (491,900) (137,700) (629,600) Land and permit costs 1,645,600 - Net book value $ 3,938,600 $ (136,100) $ 2,156,900 |
H. Contingent Payments (Tables)
H. Contingent Payments (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent payments | March 31, June 30, 2016 2015 Contingent land payment $ 668,000 $ 653,900 Less: current portion (25,000) (50,000) Contingent payments, long-term $ 643,000 $ 603,900 |
A. Basis of Presentation, Acc25
A. Basis of Presentation, Accounting Policies and Recent AccountingPronouncements (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Asset retirement obligation | $ 429,700 | $ 429,700 |
Contingent land payment | 668,000 | 653,900 |
Total | 1,097,700 | 1,083,600 |
Level 1: Quoted Prices Quoted Prices in active Markets for Identical Assets [Member] | ||
Asset retirement obligation | 0 | 0 |
Contingent land payment | 0 | 0 |
Total | 0 | 0 |
Level 2: Significant Other Observable Inputs [Member] | ||
Asset retirement obligation | 0 | 0 |
Contingent land payment | 0 | 0 |
Total | 0 | 0 |
Level 3: Significant Unobservable Inputs [Member] | ||
Asset retirement obligation | 429,700 | 429,700 |
Contingent land payment | 668,000 | 653,900 |
Total | $ 1,097,700 | $ 1,083,600 |
A. Basis of Presentation, Acc26
A. Basis of Presentation, Accounting Policies and Recent AccountingPronouncements (Details 1) | Mar. 31, 2016USD ($) |
Opening balance | $ 1,083,600 |
Accretion expense | 14,100 |
Closing balance | 1,097,700 |
Asset Retirement Obligation [Member] | |
Opening balance | 429,700 |
Accretion expense | 0 |
Closing balance | 429,700 |
Contingent Land Payment [Member] | |
Opening balance | 653,900 |
Accretion expense | 14,100 |
Closing balance | $ 668,000 |
B. Stock-Based Compensation (De
B. Stock-Based Compensation (Details) | 9 Months Ended | |
Mar. 31, 2016USD ($)$ / sharesshares | ||
B. Stock-based Compensation Details | ||
Shares Outstanding July 1, 2015 | shares | 1,203,200 | |
Shares Granted | shares | 0 | |
Shares Exercised | shares | 0 | |
Shares Forfeited or expired | shares | (3,200) | |
Shares Outstanding March 31, 2016 | shares | 1,200,000 | |
Shares Exercisable March 31, 2016 | shares | 1,200,000 | |
Weighted average exercise price per share outstanding July 1, 2015 | $ / shares | $ 0.58 | |
Weighted average exercise price per share Granted | $ / shares | 0 | |
Weighted average exercise price per share Exercised | $ / shares | 0 | |
Weighted average exercise price per share Forfeited or expired | $ / shares | 1.50 | |
Weighted average exercise price per share Outstanding March 31, 2016 | $ / shares | 0.58 | |
Weighted average exercise price per share Exercisable March 31, 2016 | $ / shares | $ 0.58 | |
Weighted average remaining contractual term Outstanding July 1, 2015 | 3 years 11 days | [1] |
Weighted average remaining contractual term Outstanding March 31, 2016 | 2 years 6 months 11 days | [1] |
Weighted average remaining contractual term Exercisable March 31, 2016 | 2 years 6 months 11 days | [1] |
Aggregate Intrinsic Value Outstanding July 1, 2015 | $ 0 | [2] |
Aggregate Intrinsic Value Granted | 0 | [2] |
Aggregate Intrinsic Value Exercised | 0 | [2] |
Aggregate Intrinsic Value Forfeited or expired | 0 | [2] |
Aggregate Intrinsic Value Outstanding March 31, 2016 | 0 | [2] |
Aggregate Intrinsic Value Exercisable March 31, 2016 | 0 | [2] |
Aggregate fair value outstanding July 1, 2015 | 275,800 | [3] |
Aggregate fair value Granted | 0 | [3] |
Aggregate fair value Exercised | 0 | [3] |
Aggregate fair value Forfeited or expired | (2,300) | [3] |
Aggregate fair value Outstanding March 31, 2016 | 273,500 | [3] |
Aggregate fair value Exercisable March 31, 2016 | $ 273,500 | [3] |
[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 March 31, 2016, for those awards that have an exercise price below the closing price as of March 31, 2016 of $0.17. | |
[3] | Aggregate Fair Value is calculated using the Black Scholes option pricing model to estimate fair value of stock-based compensation. |
B. Stock-Based Compensation (28
B. Stock-Based Compensation (Details Narrative) | Mar. 31, 2016USD ($) |
Equity [Abstract] | |
Unamortized Black Scholes value | $ 0 |
C. Note Receivable - Related 29
C. Note Receivable - Related Party (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
C. Note Receivable - Related Party Tables | ||
Note receivable | $ 295,400 | $ 322,800 |
Less current portion | (60,000) | (60,000) |
Less reserve | (50,000) | 0 |
Note receivable, long-term, net | $ 185,400 | $ 262,800 |
E. Land, Property and Equipme30
E. Land, Property and Equipment (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Land, property and equipment | $ 2,786,500 | $ 2,784,900 |
Additions | 1,600 | |
Less accumulation depreciation | (629,600) | (491,900) |
Land and permit costs | 0 | 1,645,600 |
Net book value | 2,156,900 | 3,938,600 |
Office furniture and equipment [Member] | ||
Land, property and equipment | 51,300 | 51,300 |
Additions | 0 | |
Water disposal facility [Member | ||
Land, property and equipment | 2,220,800 | 2,219,200 |
Additions | 1,600 | |
Production equipment [Member | ||
Land, property and equipment | 514,400 | $ 514,400 |
Additions | $ 0 |
F. Earnings Per Share (Details
F. Earnings Per Share (Details Narrative) - shares | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Total common stock equivalents issuable under these potentially dilutive securities | 1,200,000 | 1,203,200 |
G. Equity (Details Narrative)
G. Equity (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Stock-based compensation | $ 27,800 | |
Preferred Stock, authorized | 25,000,000 | 25,000,000 |
Preferred Stock, issued | 0 | 0 |
Preferred Stock, outstanding | 0 | 0 |
Series A Preferred Stock [Member] | ||
Preferred Stock, authorized | 5,000,000 | 5,000,000 |
Series B Preferred Stock [Member] | ||
Preferred Stock, authorized | 500,000 | 500,000 |
Series C Preferred Stock [Member] | ||
Preferred Stock, authorized | 400,000 | 400,000 |
Series D Preferred Stock [Member] | ||
Preferred Stock, authorized | 500,000 | 500,000 |
Series E Preferred Stock [Member] | ||
Preferred Stock, authorized | 750,000 | 750,000 |
J. Contingent Payments (Details
J. Contingent Payments (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
J. Contingent Payments Details | ||
Contingent land payment | $ 668,000 | $ 653,900 |
Less current portion | (25,000) | (50,000) |
Contingent payments, long-term | $ 643,000 | $ 603,900 |
I. Asset Retirement Obligation
I. Asset Retirement Obligation (Details Narrative) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Accounting Policies [Abstract] | ||
Balance at trust account for asset retirement obligation | $ 81,500 | $ 67,400 |
J. Commitments and Contingenc35
J. Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Attorney fees and accrued interest | $ 16,800 | |
Accrued liability | $ 128,300 | |
Reversed accrual | $ 128,300 |
K. Related Party Transactions (
K. Related Party Transactions (Details Narrative) - American Citizenship Center, LLC - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Due from related party | $ 245,400 | $ 322,800 |
Unpaid receivables | 5,100 | |
Interest expense | 21,600 | |
legal fees | $ 500 |
L. Liquidity and Going Concern
L. Liquidity and Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Net loss | $ (322,000) | $ (244,000) | $ (1,070,100) | $ (598,900) | $ (900,600) |