Alanco (ALAN) 10-Q 14 Nov 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2016	Nov. 07, 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	Sep. 30, 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	Q1
Document Fiscal Year Focus	2,017

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 9,400	$ 139,600
Accounts receivable - trade, net	200	3,900
Other receivables - related party	2,300	2,800
Assets held for sale	1,653,500	1,653,500
Prepaid expenses and other current assets	63,200	47,300
Total current assets	1,728,600	1,847,100
PROPERTY AND EQUIPMENT, NET	2,065,100	2,111,000
OTHER ASSETS
Trust account - asset retirement obligation	90,800	86,100
TOTAL ASSETS	3,884,500	4,044,200
CURRENT LIABILITIES
Accounts payable	205,200	251,400
Accrued expenses	305,800	146,200
Notes payable, current	400,000	0
Total current liabilities	911,000	397,600
LONG-TERM LIABILITIES
Notes payable	0	200,000
Contingent payments, long-term	677,400	672,700
Asset retirement obligation	434,000	434,000
TOTAL LIABILITIES	2,022,400	1,704,300
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 September 30, 2016 and June 30, 2016	109,190,000	109,188,200
Accumulated Deficit	(107,327,900)	(106,848,300)
Total shareholders' equity	1,862,100	2,339,900
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 3,884,500	$ 4,044,200

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - shares	Sep. 30, 2016	Jun. 30, 2016
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
	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidated Statements Of Operations
NET REVENUES	$ 3,800	$ 114,300
Cost of revenues	90,400	260,400
GROSS LOSS	(86,600)	(146,100)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Corporate expenses	73,600	93,700
Alanco Energy Services	139,500	157,000
Stock-based compensation	0	13,900
Selling, general and administrative expenses	213,100	264,600
OPERATING LOSS	(299,700)	(410,700)
OTHER INCOME AND (EXPENSE)
Interest income	7,100	7,400
Interest expense	(11,000)	0
LOSS FROM CONTINUING OPERATIONS	(303,600)	(403,300)
DISCONTINUED OPERATIONS
Loss from discontinued operations	(176,000)	0
LOSS FROM DISCONTINUED OPERATIONS	(176,000)	0
NET LOSS	$ (479,600)	$ (403,300)
LOSS PER SHARE - BASIC AND DILUTED
Continuing operations	$ (0.06)	$ (0.08)
Discontinued operations	(0.04)	0
Net loss per share	$ (0.10)	$ (0.08)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	4,982,400	4,982,400

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - 3 months ended Sep. 30, 2016 - USD ($)	COMMON STOCK	ACCUMULATED DEFICIT	Total
Beginning balance, Amount at Jun. 30, 2016	$ 109,188,200	$ (106,848,300)	$ 2,339,900
Beginning balance, Shares at Jun. 30, 2016	4,982,400
Value of warrants	$ 1,800		1,800
Net loss		(479,600)	(479,600)
Ending balance, Amount at Sep. 30, 2016	$ 109,190,000	$ (107,327,900)	$ 1,862,100
Ending balance, Shares at Sep. 30, 2016	4,982,400

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (479,600)	$ (403,300)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	45,900	46,100
Accretion of fair value - contingent payments	4,700	4,700
Stock-based compensation for options	0	13,900
Exercisable warrants issued under note payable to Anderson Family Trust	1,800	0
Changes in operating assets and liabilities:
Accounts receivable - trade	3,700	(8,800)
Other receivables - related party	500	(2,400)
Prepaid expenses and other current assets	(15,900)	131,300
Trust account - asset retirement obligation	(4,700)	(4,700)
Accounts payable and accrued expenses	113,400	(57,100)
Net cash used in operating activities	(330,200)	(280,300)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from repayment of American Citizenship Center, LLC note receivable	0	17,200
Purchase of land, property, and equipment	0	(600)
Net cash provided by investing activities	0	16,600
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from note payable to Anderson Family Trust	200,000	0
Net cash provided by financing activities	200,000	0
NET DECREASE IN CASH AND CASH EQUIVALENTS	(130,200)	(263,700)
CASH AND CASH EQUIVALENTS, beginning of period	139,600	788,900
CASH AND CASH EQUIVALENTS, end of period	9,400	525,200
Non-cash investing & financing activities:
Value of exercisable warrants issued under note payable to Anderson Family Trust	1,800	0
Value of stock-based compensation for options	$ 0	$ 13,900

A. Basis of Presentation, Accou

A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements	3 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements	Nature of Operations Alanco Technologies, Inc. (OTCQB: 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. The Company’s subsidiary, Alanco Energy Services, Inc. (“AES”), operates a water disposal facility near Grand Junction, CO to receive and dispose of produced water generated as a byproduct from oil and natural gas production in Western Colorado. During the fiscal year 2016, the Company implemented a plan to divest of its 160 acre owned and undeveloped land and associated permits located near its water disposal facility and known as Indian Mesa. Refer to Note D - Assets Held for Sale and Discontinued Operations for further discussion. During the current quarter, the Company formed Alanco Behavioral Health, Inc. (“ABH”), a wholly-owned subsidiary incorporated in the State of Arizona. The venture will be led by David C. Johnson, President. The Company launched ABH to pursue its business plan to consolidate small cap private behavioral health companies through acquisition. The Company’s objective is to create a market leader in behavioral health treatment services helping people and their families while adding value to the Company’s shareholders through strong revenue growth and cash flow. On September 23, 2016 the Company executed a Letter of Intent to purchase the operations of Bella Monte Recovery, LLC, its first planned acquisition in the behavioral health market. The Company is in the process of performing due diligence with a target closing date of December 1, 2016. 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, 2016 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 Company’s June 30, 2016 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 following are the classes of assets and liabilities measured at fair value on a recurring basis at September 30, 2016 and June 30, 2016, 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 September 30, 2016 Level 1: Quoted Prices Level 2: in active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable September 30, Assets Inputs Inputs 2016 Asset Retirement Obligation $ - $ - $ 434,000 $ 434,000 Contigent Land Payment - - 677,400 677,400 $ - $ - $ 1,111,400 $ 1,111,400 Fair Value at June 30, 2016 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 2016 Asset Retirement Obligation $ - $ - $ 434,000 $ 434,000 Contigent Land Payment - - 672,700 672,700 $ - $ - $ 1,106,700 $ 1,106,700 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 quarter ended September 30, 2016. Asset Contingent Retirement Land Obligation Payment Total Opening balance $ 434,000 $ 672,700 $ 1,106,700 Accretion expense - 4,700 4,700 Closing balance $ 434,000 $ 677,400 $ 1,111,400 Fair Value of Asset Retirement Obligation Fair Value of Contingent Payments Assets Held for Sale Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“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 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. In June 2016, the FASB issued guidance regarding credit losses on financial instruments including loans. The guidance is effective for annual periods beginning after December 15, 2019 including interim periods within those annual periods. The Company is currently assessing the impact on its financial position and results of operations. In August 2016, the FASB issued guidance regarding the classification of certain cash receipts and cash payments in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted provided that all amendments are adopted in the same period. The Company has adopted the guidance, which had no material impact on its financial position, results of operations or presentation of the statement of cash flows. There have been no other recent accounting pronouncements or changes in accounting pronouncements during the three months ended September 30, 2016, that are of significance, or potential significance, to us.

B. Stock-Based Compensation and

B. Stock-Based Compensation and Warrants	3 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Stock-Based Compensation and Warrants	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 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 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 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, 2016. The following table summarizes the Company’s stock option activity during the first three months of fiscal 2017: Weighted Weighted Average Average Remaining Aggregate Aggregate Exercise Price Contractual Fair Intrinsic Shares Per Share Term (1) Value (3) Value (2) Outstanding July 1, 2016 1,200,000 $0.58 2.03 $ 273,500 $ - Granted - - - - - Exercised - - - - - Forfeited or expired - - - - - Outstanding September 30, 2016 1,200,000 $0.58 1.78 $ 273,500 $ - Exercisable September 30, 2016 1,200,000 $0.58 1.78 $ 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 September 30, 2016, for those awards that have an exercise price currently below the closing price as of September 30, 2016 of $0.18. (3) Aggregate Fair Value is calculated using the Black Scholes option pricing model to estimate fair value of stock-based compensation on the date of grant. As of September 30, 2016, there was no unamortized Black Scholes value remaining to be recognized as stock-based compensation expense. As of September 30, 2016, the Company had 140,000 outstanding warrants. The following table summarizes the Company’s warrant activity during the quarter ended September 30, 2016: Warrants Outstanding Warrants Exercisable Weighted Weighted Number of Average Number of Average Shares Exercise Price Shares Exercise Price Warrants Outstanding, July 1, 2016 140,000 $ 0.75 20,000 $ 0.75 Granted - - - - Previously Granted, Vested - - 30,000 0.75 Exercised - - - - Canceled/Expired - - - - Warrants Outstanding, September 30, 2016 140,000 $ 0.75 50,000 $ 0.75

C. Note Receivable - Related Pa

C. Note Receivable - Related Party	3 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Note Receivable - Related Party	Note receivable at September 30, 2016 and June 30, 2016 represents a note due from American Citizenship Center, LLC (“ACC”), a related party. Note receivable at September 30, 2016 and June 30, 2016 consists of the following: September 30, June 30, 2016 2016 Note receivable, gross $ 295,400 $ 295,400 Accounting and loan fees reversed against deferred income (29,000) (29,000) Less reserve (266,400) (266,400) Note receivable, net $ - $ - The gross balance of $295,400 at September 30, 2016 and June 30, 2016 represents the outstanding amount drawn by ACC on a $295,400 credit line provided by the Company. The note is secured by all assets of ACC and bears interest at the rate of 9.5% per annum. Interest of $2,300 is unpaid at September 30, 2016. ACC’s 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. The U.S. government appealed the lawsuit which went to the 5 th

D. Assets Held for Sale and Dis

D. Assets Held for Sale and Discontinued Operations	3 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Assets Held for Sale and Discontinued Operations	During the fiscal year 2016, Alanco’s Board of Directors approved a formal plan to sell its 160 acre owned and undeveloped land and associated permits known as Indian Mesa. The plan was contemplated because the Company is expanding into other markets that are unrelated to waste disposal. The Company is utilizing the services of an investment banker to represent the Company in the sale of these assets and expects the sale to occur within one year. Accordingly, the Assets Held for Sale of $1,653,500 presented in the attached condensed consolidated balance sheet as of September 30, 2016 and June 30, 2016 represents the Indian Mesa land and associated permits. The classification of the assets to Assets Held for Sale does not affect the Consolidated Statements of Operations as the Indian Mesa land is undeveloped and has no associated discontinued operations. During the quarter ended September 30, 2016, the Company recorded a loss from discontinued operations in the amount of $176,000 which represents an accrual related to the judgment received from litigation whereby the Company is a defendant and counterclaimant involving the Company’s former subsidiary known as Alanco/TSI Prism, Inc. (“TSI”) and the purchaser of TSI’s assets, Black Creek Systems Corp. (“Black Creek”). The Company vehemently disagrees with Black Creek’s attorney’s fees claim and the Court ruling and intends to vigorously pursue an appeal of the judgment. The case is more fully described in Note K – Commitments and Contingencies.

E. Property and Equipment

E. Property and Equipment	3 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment, net, at September 30, 2016 and June 30, 2016 consist of the following: June 30, 2016 Additions September 30, 2016 Office furniture and equipment $ 51,300 $ - $ 51,300 Water disposal facility 2,220,900 - 2,220,900 Production equipment 514,400 - 514,400 2,786,600 - 2,786,600 Less accumulation depreciation (675,600) (45,900) (721,500) Net book value $ 2,111,000 $ (45,900) $ 2,065,100

F. Note Payable

F. Note Payable	3 Months Ended
	Sep. 30, 2016
F. Note Payable
Note Payable	Note payable at September 30, 2016 and June 30, 2016 consists of the following: September 30, June 30, 2016 2016 Note payable $ 400,000 $ 200,000 Less current (400,000) - Note payable, long-term $ - $ 200,000 At September 30, 2016, the Note Payable balance of $400,000 represents the amount drawn against a $500,000 line of credit with the Anderson Family Trust (“Trust”) entered into on June 28, 2016. As of September 30, 2016, the line of credit has an available balance of $100,000. The line of credit matures on July 1, 2017 when the full outstanding balance is due. The balance accrues interest at 7% per annum payable monthly and is collateralized by the Company’s AES Indian Mesa property. In addition, the Trust was paid a loan fee of $10,000 plus a warrant to purchase 140,000 shares of Alanco Common Stock of which 20,000 warrants vested immediately and 10,000 warrants vest each month thereafter.. The exercise price per share for the warrants is $0.50 per share for one half of each vested group and $1.00 for the other half of each vested group with a five year term following the issuance date. The Company uses the Black-Scholes option pricing model to estimate fair value of stock-based awards. During the three months ended September 30, 2016, the Company expensed approximately $5,500, in interest related to the note, approximately $3,600 related to amortization of deferred loan costs, and approximately $1,800 related to the value of 30,000 warrants which vested during the current quarter. The line of credit has a provision allowing the lender, at the lender’s option, to convert up to the full amount of the credit line into shares of a then available class of preferred stock outstanding any time prior to the full repayment of the line of credit. There is currently no such preferred stock outstanding and the rights and privileges of preferred stock have not been determined.

G. Earnings Per Share

G. Earnings Per Share	3 Months Ended
	Sep. 30, 2016
LOSS PER SHARE - BASIC AND DILUTED
Earnings Per Share	Basic and diluted loss per share of common stock was computed by dividing net loss, loss from continuing operations and loss from discontinued operations 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 three months ended September 30, 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 1,340,000 and 1,200,000 at September 30, 2016 and 2015, respectively.

H. Equity

H. Equity	3 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Equity	The Company did not issue any shares of Common Stock during the three months ended September 30, 2016. During the three months ended September 30, 2016, the Company recognized the value of exercisable detachable warrants issued with debt in the amount of $1,800. 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 September 30, 2016 and June 30, 2016, no Preferred Stock of any series was issued or outstanding.

I. Contingent Payments

I. Contingent Payments	3 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingent Payments	Contingent payments September 30, June 30, 2016 2016 Contingent land payment $ 677,400 $ 672,700 Less current portion - - Contingent payments, long-term $ 677,400 $ 672,700 Contingent land payment The Company also has a contingent purchase price liability with TC Operating, LLC (“TCO”) under the original agreement executed in April 2012 which transferred the Deer Creek facility land lease to the Company. TCO can 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 purchase price), approximately the initial term of the lease. As of September 30, 2016 and June 30, 2016, the Company had no liability recorded for the contingent purchase price based on the probability of the contingent payment being realized.

J. Asset Retirement Obligation

J. Asset Retirement Obligation	3 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Asset Retirement Obligation	The Company has recognized estimated asset retirement obligations (closure cost) of $434,000 at September 30, 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 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 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 three months ended September 30, 2016, the Company made the required quarterly payments. The balances in the trust account for the asset retirement obligation as of September 30, 2016 and June 30, 2016 were $90,800 and $86,100, respectively.

K. Commitments and Contingencie

K. Commitments and Contingencies	3 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Legal Proceedings The Company is a defendant and counterclaimant in litigation involving its former subsidiary known as Alanco/TSI Prism, Inc. (“TSI”) and the purchaser of TSI’s 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 attorney’s fees and accrued interest, resulting in a total judgment in the amount of $128,300. At June 30, 2014, the Company recorded an accrued liability of $128,300 for the judgment and had posted a bond with the court in conjunction with the Company’s appeal of the judgment. In May 2015, the State of Arizona Division One Court of Appeals vacated the trial court’s 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 court’s decision vacated the trial court’s attorney’s fees award and awarded TSI approximately $21,900 of its fees on appeal. At June 30, 2015, the Company reversed the accrual of $128,300 for the prior judgment. Under the court’s direction, the Company followed the dispute guidelines defined in the asset purchase agreement which resulted in an award to Black Creek of approximately $13,000. The Company has previously stipulated that it owed Black Creek approximately $9,600 for shared expenses incurred from 2010 - 2011. In October 2016, the court ruled on Black Creek’s attorney’s fees application and the Company’s answer to said application. The court granted Black Creek a fee award which, when combined with the judgment amount of approximately $22,600 plus interest, results in a potential liability to the Company of approximately $176,000 which has been accrued at September 30, 2016 and reported as a loss from discontinued operations in the current quarter. The Company vehemently disagrees with Black Creek’s attorney’s fees claim and the Court ruling and intends to vigorously pursue an appeal of the judgment. The Company may from time to time be involved in litigation arising from the normal course of business. As of September 30, 2016, other than the litigation discussed above, there was no such litigation pending deemed material by the Company.

L. Related Party Transactions

L. Related Party Transactions	3 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	At September 30, 2016 and June 30, 2016, the Company had a note due from American Citizenship Center, LLC (“ACC”), a related party, with a gross balance of $295,400 which has been fully reserved. During the current quarter, the Company billed ACC a total of approximately $7,100 for interest of which $2,300 is unpaid at September 30, 2016. At September 30, 2016 and June 30, 2016, the Company had accrued board fees in the total amount of $28,000 and $14,000, respectively. At September 30, 2016 and June 30, 2016, the Company had accrued deferred compensation of $58,400 payable to John Carlson, the Company’s Chief Executive Officer and a Director of the Company.

M. Subsequent Events

M. Subsequent Events	3 Months Ended
	Sep. 30, 2016
M. Subsequent Events
Subsequent Events	Subsequent to September 30, 2016, the Company drew an additional $100,000 from its line of credit with the Anderson Family Trust resulting in a current balance of $500,000, the full amount of the credit line.

N. Liquidity and Going Concern

N. Liquidity and Going Concern	3 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquidity and Going Concern	During the three months ended September 30, 2016, the Company reported a net loss of ($479,600) and for fiscal year ended June 30, 2016, the Company reported a net loss of ($1,594,800). The Company’s fiscal 2017 operating plan includes divestiture of the undeveloped AES Indian Mesa site which is currently classified as Assets Held for Sale. Management cannot assure that the sale of Indian Mesa will be finalized which would provide additional cash flow to the Company. The Company is continuing to analyze options to monetize current and future operations of Deer Creek. There is no assurance that the Company will be able to execute options for Deer Creek. The Company announced it is entering the behavioral health market and the business plan includes the acquisition of behavioral health businesses which requires capital. There is no assurance the Company will be able to raise additional financing which may be in the form of public or private debt or equity financing, or both. If adequate funds are not available or are not available on acceptable terms, the Company’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. 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 Company’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, 2016 discussing the substantial doubt of the Company’s ability to continue as a going concern.

A. Basis of Presentation, Acc21

A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements (Policies)	3 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Alanco Technologies, Inc. (OTCQB: 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. The Company’s subsidiary, Alanco Energy Services, Inc. (“AES”), operates a water disposal facility near Grand Junction, CO to receive and dispose of produced water generated as a byproduct from oil and natural gas production in Western Colorado. During the fiscal year 2016, the Company implemented a plan to divest of its 160 acre owned and undeveloped land and associated permits located near its water disposal facility and known as Indian Mesa. Refer to Note D - Assets Held for Sale and Discontinued Operations for further discussion. During the current quarter, the Company formed Alanco Behavioral Health, Inc. (“ABH”), a wholly-owned subsidiary incorporated in the State of Arizona. The venture will be led by David C. Johnson, President. The Company launched ABH to pursue its business plan to consolidate small cap private behavioral health companies through acquisition. The Company’s objective is to create a market leader in behavioral health treatment services helping people and their families while adding value to the Company’s shareholders through strong revenue growth and cash flow. On September 23, 2016 the Company executed a Letter of Intent to purchase the operations of Bella Monte Recovery, LLC, its first planned acquisition in the behavioral health market. The Company is in the process of performing due diligence with a target closing date of December 1, 2016.
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, 2016 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 Company’s June 30, 2016 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 values 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 Company’s 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, trust account, accounts payable, accrued liabilities and note payable 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 September 30, 2016 and June 30, 2016, 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 September 30, 2016 Level 1: Quoted Prices Level 2: in active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable September 30, Assets Inputs Inputs 2016 Asset Retirement Obligation $ - $ - $ 434,000 $ 434,000 Contigent Land Payment - - 677,400 677,400 $ - $ - $ 1,111,400 $ 1,111,400 Fair Value at June 30, 2016 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 2016 Asset Retirement Obligation $ - $ - $ 434,000 $ 434,000 Contigent Land Payment - - 672,700 672,700 $ - $ - $ 1,106,700 $ 1,106,700 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 quarter ended September 30, 2016. Asset Contingent Retirement Land Obligation Payment Total Opening balance $ 434,000 $ 672,700 $ 1,106,700 Accretion expense - 4,700 4,700 Closing balance $ 434,000 $ 677,400 $ 1,111,400
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. Management’s 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 liability is 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 the contingent land payment, management completed an estimate of the present value of the contingent liability based upon projected income, cash flows and capital expenditures for the Deer Creek facility developed under plans currently approved by the Company’s 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.
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 classified as Assets Held for Sale at September 30, 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 Financial Accounting Standards Board (“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 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. In June 2016, the FASB issued guidance regarding credit losses on financial instruments including loans. The guidance is effective for annual periods beginning after December 15, 2019 including interim periods within those annual periods. The Company is currently assessing the impact on its financial position and results of operations. In August 2016, the FASB issued guidance regarding the classification of certain cash receipts and cash payments in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted provided that all amendments are adopted in the same period. The Company has adopted the guidance, which had no material impact on its financial position, results of operations or presentation of the statement of cash flows. There have been no other recent accounting pronouncements or changes in accounting pronouncements during the three months ended September 30, 2016, that are of significance, or potential significance, to us.

A. Basis of Presentation, Acc22

A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements (Tables)	3 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Assets and liabilities measured at fair value on a recurring basis	Fair Value at September 30, 2016 Level 1: Quoted Prices Level 2: in active Significant Level 3: Total Markets Other Significant at for Identical Observable Unobservable September 30, Assets Inputs Inputs 2016 Asset Retirement Obligation $ - $ - $ 434,000 $ 434,000 Contigent Land Payment - - 677,400 677,400 $ - $ - $ 1,111,400 $ 1,111,400 Fair Value at June 30, 2016 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 2016 Asset Retirement Obligation $ - $ - $ 434,000 $ 434,000 Contigent Land Payment - - 672,700 672,700 $ - $ - $ 1,106,700 $ 1,106,700
Reconciliation of Assets and liabilities measured at fair value on a recurring basis	Asset Contingent Retirement Land Obligation Payment Total Opening balance $ 434,000 $ 672,700 $ 1,106,700 Accretion expense - 4,700 4,700 Closing balance $ 434,000 $ 677,400 $ 1,111,400

B. Stock-Based Compensation a23

B. Stock-Based Compensation and Warrants (Tables)	3 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Stock option activity	Weighted Weighted Average Average Remaining Aggregate Aggregate Exercise Price Contractual Fair Intrinsic Shares Per Share Term (1) Value (3) Value (2) Outstanding July 1, 2016 1,200,000 $0.58 2.03 $ 273,500 $ - Granted - - - - - Exercised - - - - - Forfeited or expired - - - - - Outstanding September 30, 2016 1,200,000 $0.58 1.78 $ 273,500 $ - Exercisable September 30, 2016 1,200,000 $0.58 1.78 $ 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 September 30, 2016, for those awards that have an exercise price currently below the closing price as of September 30, 2016 of $0.18. (3) Aggregate Fair Value is calculated using the Black Scholes option pricing model to estimate fair value of stock-based compensation on the date of grant.
Warrant activity	Warrants Outstanding Warrants Exercisable Weighted Weighted Number of Average Number of Average Shares Exercise Price Shares Exercise Price Warrants Outstanding, July 1, 2016 140,000 $ 0.75 20,000 $ 0.75 Granted - - - - Previously Granted, Vested - - 30,000 0.75 Exercised - - - - Canceled/Expired - - - - Warrants Outstanding, September 30, 2016 140,000 $ 0.75 50,000 $ 0.75

C. Note Receivable - Related 24

C. Note Receivable - Related Party (Tables)	3 Months Ended
	Sep. 30, 2016
C. Note Receivable - Related Party Tables
Summary of Note receivable	September 30, June 30, 2016 2016 Note receivable, gross $ 295,400 $ 295,400 Accounting and loan fees reversed against deferred income (29,000) (29,000) Less reserve (266,400) (266,400) Note receivable, net $ - $ -

E. Property and Equipment (Tabl

E. Property and Equipment (Tables)	3 Months Ended
	Sep. 30, 2016
E. Property And Equipment Tables
Property and Equipment	June 30, 2016 Additions September 30, 2016 Office furniture and equipment $ 51,300 $ - $ 51,300 Water disposal facility 2,220,900 - 2,220,900 Production equipment 514,400 - 514,400 2,786,600 - 2,786,600 Less accumulation depreciation (675,600) (45,900) (721,500) Net book value $ 2,111,000 $ (45,900) $ 2,065,100

F. Note Payable (Tables)

F. Note Payable (Tables)	3 Months Ended
	Sep. 30, 2016
F. Note Payable Tables
Notes Payable	September 30, June 30, 2016 2016 Note payable $ 400,000 $ 200,000 Less current (400,000) - Note payable, long-term $ - $ 200,000

I. Contingent Payments (Tables)

I. Contingent Payments (Tables)	3 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingent payments	September 30, June 30, 2016 2016 Contingent land payment $ 677,400 $ 672,700 Less current portion - - Contingent payments, long-term $ 677,400 $ 672,700

A. Basis of Presentation, Acc28

A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Asset retirement obligation	$ 434,000	$ 434,000
Contingent land payment	677,400	672,700
Total	1,111,400	1,106,700
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	434,000	434,000
Contingent land payment	677,400	672,700
Total	$ 1,111,400	$ 1,106,700

A. Basis of Presentation, Acc29

A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements (Details 1)	Sep. 30, 2016USD ($)
Opening balance	$ 1,106,700
Accretion expense	4,700
Closing balance	1,111,400
Asset Retirement Obligation [Member]
Opening balance	434,000
Accretion expense	0
Closing balance	434,000
Contingent Land Payment [Member]
Opening balance	672,700
Accretion expense	4,700
Closing balance	$ 677,400

B. Stock-Based Compensation a30

B. Stock-Based Compensation and Warrants (Details)	3 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
B. Stock-based Compensation And Warrants Details
Shares Outstanding July 1, 2016 | shares	1,200,000
Shares Granted | shares	0
Shares Exercised | shares	0
Shares Forfeited or expired | shares	0
Shares Outstanding September 30, 2016 | shares	1,200,000
Shares Exercisable September 30, 2016 | shares	1,200,000
Weighted average exercise price per share outstanding July 1, 2016 | $ / shares	$ .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	0
Weighted average exercise price per share Outstanding September 30, 2016 | $ / shares	.58
Weighted average exercise price per share Exercisable September 30, 2016 | $ / shares	$ 0.58
Weighted average remaining contractual term Outstanding July 1, 2016	2 years 11 days	[1]
Weighted average remaining contractual term Outstanding September 30, 2016	1 year 9 months 11 days	[1]
Weighted average remaining contractual term Exercisable September 30, 2016	1 year 9 months 11 days	[1]
Aggregate Intrinsic Value Outstanding July 1, 2016	$ 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 September 30, 2016	0	[2]
Aggregate Intrinsic Value Exercisable September 30, 2016	0	[2]
Aggregate fair value outstanding July 1, 2016	273,500	[3]
Aggregate fair value Granted	0	[3]
Aggregate fair value Exercised	0	[3]
Aggregate fair value Forfeited or expired	0	[3]
Aggregate fair value Outstanding September 30, 2016	273,500	[3]
Aggregate fair value Exercisable September 30, 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 September 30, 2016, for those awards that have an exercise price currently below the closing price as of September 30, 2016 of $0.18.
[3]	Aggregate Fair Value is calculated using the Black Scholes option pricing model to estimate fair value of stock-based compensation on the date of grant.

B. Stock-Based Compensation a31

B. Stock-Based Compensation and Warrants (Details 1)	3 Months Ended
	Sep. 30, 2016$ / sharesshares
Warrants Outstanding
Warrants Outstanding, Beginning | shares	140,000
Granted | shares	0
Previously Granted, Vested | shares	0
Exercised | shares	0
Cancelled/Expired | shares	0
Warrants Outstanding, Ending | shares	140,000
Weighted Average Exercise Price, Warrants Outstanding, Beginning | $ / shares	$ .75
Weighted Average Exercise Price, Granted | $ / shares	0
Weighted Average Exercise Price, Previously Granted, Vested | $ / shares	0
Weighted Average Exercise Price, Exercised | $ / shares	0
Weighted Average Exercise Price, Cancelled/Expired | $ / shares	0
Weighted Average Exercise Price, Warrants Outstanding, Ending | $ / shares	$ .75
Warrants Exercisable
Warrants Outstanding, Beginning | shares	20,000
Granted | shares	0
Previously Granted, Vested | shares	30,000
Exercised | shares	0
Cancelled/Expired | shares	0
Warrants Outstanding, Ending | shares	50,000
Weighted Average Exercise Price, Warrants Outstanding, Beginning | $ / shares	$ 0.75
Weighted Average Exercise Price, Granted | $ / shares	0
Weighted Average Exercise Price, Previously Granted, Vested | $ / shares	.75
Weighted Average Exercise Price, Exercised | $ / shares	0
Weighted Average Exercise Price, Cancelled/Expired | $ / shares	0
Weighted Average Exercise Price, Warrants Outstanding, Ending | $ / shares	$ 0.75

B. Stock-Based Compensation a32

B. Stock-Based Compensation and Warrants (Details Narrative)	Sep. 30, 2016USD ($)
Equity [Abstract]
Unamortized Black Scholes value	$ 0

C. Note Receivable - Related 33

C. Note Receivable - Related Party (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
C. Note Receivable - Related Party Tables
Note receivable, gross	$ 295,400	$ 295,400
Accounting and loan fees reversed against deferred income	(29,000)	(29,000)
Less reserve	(266,400)	(266,400)
Note receivable, net	$ 0	$ 0

D. Assets Held for Sale and D34

D. Assets Held for Sale and Discontinued Operations (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
D. Assets Held For Sale And Discontinued Operations Details Narrative
Loss from discontinued operations	$ (176,000)	$ 0

E. Property and Equipment (Deta

E. Property and Equipment (Details) - USD ($)	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016
Property and equipment	$ 2,786,600	$ 2,786,600
Additions	0
Less accumulation depreciation	(721,500)	(675,600)
Net book value	2,065,100	2,111,000
Office furniture and equipment [Member]
Property and equipment	51,300	51,300
Additions	0
Water disposal facility [Member
Property and equipment	2,220,900	2,220,900
Additions	0
Production equipment [Member
Property and equipment	514,400	$ 514,400
Additions	0
Less accumulation depreciation [Member]
Additions	(45,900)
Net book value	$ (45,900)

F. Note Payable (Details)

F. Note Payable (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
F. Note Payable Details
Note payable	$ 400,000	$ 200,000
Less current	(400,000)	0
Note payable, long-term	$ 0	$ 200,000

G. Earnings Per Share (Details

G. Earnings Per Share (Details Narrative) - shares	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
LOSS PER SHARE - BASIC AND DILUTED
Total common stock equivalents issuable under these potentially dilutive securities	1,340,000	1,200,000

H. Equity (Details Narrative)

H. Equity (Details Narrative) - shares	Sep. 30, 2016	Jun. 30, 2016
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

I. Contingent Payments (Details

I. Contingent Payments (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
I. Contingent Payments Details
Contingent land payment	$ 677,400	$ 672,700
Less current portion	0	0
Contingent payments, long-term	$ 677,400	$ 672,700

J. Asset Retirement Obligation

J. Asset Retirement Obligation (Details Narrative) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Accounting Policies [Abstract]
Balance at trust account for asset retirement obligation	$ 90,800	$ 86,100

L. Related Party Transactions (

L. Related Party Transactions (Details Narrative) - American Citizenship Center, LLC - USD ($)	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016
Due from related party	$ 295,400
Unpaid receivables	2,300
Interest expense	7,100
Accrued board fees	28,000	$ 14,000
Accrued deferred compensation	$ 58,400

N. Liquidity and Going Concern

N. Liquidity and Going Concern (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (479,600)	$ (403,300)	$ (1,594,800)