Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2017 | May 12, 2017 | |
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, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,982,400 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,100 | $ 139,600 |
Accounts receivable - trade, net | 7,900 | 3,900 |
Other receivables - related party | 0 | 2,800 |
Assets held for sale | 0 | 1,653,500 |
Prepaid expenses and other current assets | 24,800 | 47,300 |
Total current assets | 33,800 | 1,847,100 |
PROPERTY AND EQUIPMENT, NET | 1,617,200 | 2,111,000 |
OTHER ASSETS | ||
Assets held for sale | 1,654,700 | 0 |
Trust account - asset retirement obligation | 101,500 | 86,100 |
TOTAL ASSETS | 3,407,200 | 4,044,200 |
CURRENT LIABILITIES | ||
Accounts payable | 301,100 | 251,400 |
Accrued expenses | 326,800 | 146,200 |
Note payable - related party - current | 750,000 | 0 |
Total current liabilities | 1,377,900 | 397,600 |
LONG-TERM LIABILITIES | ||
Note payable - related party - noncurrent | 0 | 200,000 |
Contingent payments, long-term | 686,700 | 672,700 |
Asset retirement obligation | 434,000 | 434,000 |
TOTAL LIABILITIES | 2,498,600 | 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 March 31, 2017 and June 30, 2016 | 109,193,500 | 109,188,200 |
Accumulated Deficit | (108,284,900) | (106,848,300) |
Total shareholders' equity | 908,600 | 2,339,900 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 3,407,200 | $ 4,044,200 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2017 | 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 |
Preferred Stock Shares Issued | 0 | 0 |
Preferred Stock Shares Outstanding | 0 | 0 |
Preferred Stock, Par Value | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Consolidated Statements Of Operations | ||||
NET REVENUES | $ 700 | $ 13,800 | $ 10,400 | $ 185,900 |
Cost of revenues | 81,300 | 114,800 | 256,700 | 507,400 |
GROSS LOSS | (80,600) | (101,000) | (246,300) | (321,500) |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | ||||
Corporate expenses | 58,500 | 73,500 | 235,500 | 274,700 |
Alanco Energy Services | 124,100 | 154,600 | 389,300 | 467,900 |
Stock-based compensation | 27,800 | |||
Impairment charge | 350,000 | 350,000 | ||
Selling general and administrative expenses | 532,600 | 228,100 | 974,800 | 770,400 |
OPERATING LOSS | (613,200) | (329,100) | (1,221,100) | (1,091,900) |
OTHER INCOME AND (EXPENSE) | ||||
Interest income | 0 | 7,100 | 4,800 | 21,800 |
Interest expense | (18,400) | 0 | (44,700) | 0 |
Other income | 0 | 0 | 400 | 0 |
LOSS FROM CONTINUING OPERATIONS | (1,260,600) | (1,070,100) | ||
DISCONTINUED OPERATIONS | ||||
Loss from discontinued operations | 0 | 0 | (176,000) | 0 |
LOSS FROM DISCONTINUED OPERATIONS | 0 | 0 | 176,000 | 0 |
NET LOSS | $ (631,600) | $ (322,000) | $ (1,436,600) | $ (1,070,100) |
NET LOSS PER SHARE - BASIC AND DILUTED | ||||
Continuing operations | $ 0 | $ 0 | $ (0.25) | $ (0.21) |
Discontinued operations | 0 | 0 | (0.04) | 0 |
Net loss per share | $ (0.13) | $ (0.06) | $ (0.29) | $ (0.21) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 4,982,400 | 4,982,400 | 4,982,400 | 4,982,400 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - 9 months ended Mar. 31, 2017 - 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 | $ 5,300 | 5,300 | |
Net loss | 0 | (1,436,600) | (1,436,600) |
Ending balance, Amount at Mar. 31, 2017 | $ 109,193,500 | $ (108,284,900) | $ 908,600 |
Ending balance, Shares at Mar. 31, 2017 | 4,982,400 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (1,436,600) | $ (1,070,100) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 137,700 | 137,700 |
Accretion of fair value - contingent payments | 14,000 | 14,100 |
Stock-based compensation for options | 0 | 27,800 |
Reserve recorded for American Citizenship Center, LLC note receivable | 0 | 50,000 |
Exercisable warrants issued under note payable to Anderson Family Trust | 5,300 | 0 |
Gain on sale of equipment | (400) | 0 |
Impairment charge on long-lived assets | 350,000 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable - trade | (4,000) | 37,800 |
Other receivables - related party | 2,800 | (900) |
Prepaid expenses and other current assets | 22,500 | 135,600 |
Trust account - asset retirement obligation | (15,400) | (14,100) |
Accounts payable and accrued expenses | 230,300 | (21,900) |
Net cash used in operating activities | (693,800) | (704,000) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from repayment of American Citizenship Center, LLC note receivable | 0 | 27,400 |
Purchase of land, property, and equipment | (2,200) | (6,800) |
Proceeds from sale of equipment | 7,500 | 0 |
Net cash provided by investing activities | 5,300 | 20,600 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from note payable to Anderson Family Trust | 550,000 | 0 |
Net cash provided by financing activities | 550,000 | 0 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (138,500) | (683,400) |
CASH AND CASH EQUIVALENTS, beginning of period | 139,600 | 788,900 |
CASH AND CASH EQUIVALENTS, end of period | 1,100 | 105,500 |
Non-cash investing & financing activities: | ||
Value of stock-based compensation for options | 0 | 27,800 |
Value of exercisable warrants issued under note payable to Anderson Family Trust | 5,300 | 0 |
Other comprehensive income adjustment | 400 | 0 |
Gain on sale of equipment | $ 350,000 | $ 0 |
A. Basis of Presentation, Accou
A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements | 9 Months Ended |
Mar. 31, 2017 | |
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 and Discontinued Operations for further discussion. The Company formed Alanco Behavioral Health, Inc. (ABH) during the quarter ended September 30, 2016, a wholly-owned subsidiary incorporated in the State of Arizona with the expectation of pursuing a business plan to consolidate small cap private behavioral health companies through acquisition. The Company executed a letter of intent to purchase the operations of a behavioral health treatment facility located in California, but has since terminated said acquisition and currently has no plans to pursue acquisitions in the behavioral health market. The Company is developing alternative business plans for monetization of its resources. 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 footnotedisclosures normally included in financial statements prepared in accordance with GAAPhave 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 Companys 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 March 31, 2017 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 March 31, 2017 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 2017 Asset Retirement Obligation $ - $ - $ 434,000 $ 434,000 Contingent Land Payment - - 686,700 686,700 $ - $ - $ 1,120,700 $ 1,120,700 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 Contingent 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 nine months ended March 31, 2017. Asset Contingent Retirement Land Obligation Payment Total Opening balance $ 434,000 $ 672,700 $ 1,106,700 Accretion expense - 14,000 14,000 Closing balance $ 434,000 $ 686,700 $ 1,120,700 The following are the classes of assets and liabilities measured at fair value on a non-recurring basis at March 31, 2017, 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, 2017 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 2017 Property and Equipment, net $ - $ - $ 1,617,200 $ 1,617,200 $ - $ - $ 1,617,200 $ 1,617,200 There were no fair value measurements of Property and Equipment at June 30, 2016. Fair Value of Asset Retirement Obligation Fair Value of Contingent Payments Fair Value of Property and Equipment, net 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, but does not anticipate it to have a material impact. 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, but will need to report a right of use asset and liability in regards to its facility lease. 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 October 2016, the FASB issued guidance regarding the treatment of intra-entity transfers of assets other than inventory. The guidance is effective for annual periods beginning after December 15, 2017, including interim reporting periods. Early adoption is permitted at the beginning of an annual period. The Company is currently assessing the impact on its financial position and results of operations. In January 2017, the FASB issued guidance regarding the definition of a business as it pertains to business combinations. The guidance is effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period and early adoption is permitted. The Company has adopted the guidance, which had no material impact on its financial position and results of operations. In January 2017, the FASB issued guidance regarding amendments to the FASB Accounting Standards Codification pursuant to SEC staff announcements. The guidance is effective upon issuance. The Company has adopted the guidance, which had no material impact on its financial position and results of operations. In February 2017, the FASB issued guidance regarding gains and losses from the derecognition of non-financial assets. The guidance is effective for annual reporting periods beginning after December 15, 2017including interim periodsand early adoption is permitted. 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 during the nine months ended March 31, 2017, that are of significance, or potential significance, to us. |
B. Stock-Based Compensation and
B. Stock-Based Compensation and Warrants | 9 Months Ended |
Mar. 31, 2017 | |
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 amortizedon 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. 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 Companys stock option activity during the first nine months of fiscal 2017: Weighted Weighted Average Average Remaining Aggregate Aggregate Exercise Price Contractual Instrinsic Fair Shares Per Share Term (1) Value (2) Value (3) Outstanding July 1, 2016 1,200,000 $0.58 2.03 $ - $ 273,500 Granted - - - - - Exercised - - - - - Forfeited or expired - - - - - Outstanding March 31, 2017 1,200,000 $0.58 1.28 $ - $ 273,500 Exercisable March 31, 2017 1,200,000 $0.58 1.28 $ - $ 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, 2017, for those awards that have an exercise price below the closing price as of March 31, 2017 of $0.13. (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, 2017, there was no unamortized Black Scholes value remaining to be recognized as stock-based compensation expense. As of March 31, 2017, the Company had 140,000 outstanding warrants. The following table summarizes the Companys warrant activity during the nine months ended March 31, 2017. 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 - - 90,000 0.75 Exercised - - - - Canceled/Expired - - - - Warrants Outstanding, March 31, 2017 140,000 $ 0.75 110,000 $ 0.75 |
C. Note Receivable - Related Pa
C. Note Receivable - Related Party | 9 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Note Receivable - Related Party | Note receivable at March 31, 2017 and June 30, 2016 represents a note due from American Citizenship Center, LLC (ACC), a related party. Note receivable at March 31, 2017 and June 30, 2016 consists of the following: March 31, June 30, 2017 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 March 31, 2017 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 $16,300 is unpaid and fully reserved at March 31, 2017. 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. 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 | 9 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Assets Held for Sale and Discontinued Operations | During the fiscal year 2016, Alancos 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 intends to expand into other markets that are unrelated to waste disposal. Accordingly, the Assets Held for Sale of $1,654,700 and $1,653,500 presented in the attached condensed consolidated balance sheets as of March 31, 2017and June 30, 2016, respectively, represents the Indian Mesa land and associated permits. The classification 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 discontinued operations. The Company continues to actively pursue a sale of the assets, however, due to the depressed oil and gas prices the market in Western Colorado was negatively impacted and a sale has been prolonged. As a result, the Company has classified the Assets Held for Sale as non-current as of March 31, 2017. During the nine months ended March 31, 2017, 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 Companys former subsidiary known as Alanco/TSI Prism, Inc. (TSI) and the purchaser of TSIs assets, Black Creek Systems Corp. (Black Creek). The Company vehemently disagrees with Black Creeks attorneys 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 | 9 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment, net at March 31, 2017 and June 30, 2016 consist of the following: June 30, March 31, 2016 Additions Retirements Impairment 2017 Office furniture and equipment $ 51,300 $ - $ - $ $ 51,300 Water disposal facility 2,220,900 1,000 - (350,000) 1,871,900 Production equipment 514,400 - (28,600) 485,800 2,786,600 1,000 (28,600) (350,000) 2,409,000 Less accumulation depreciation (675,600) (137,700) 21,500 - (791,800) Net book value $ 2,111,000 $ (136,700) $ (7,100) $ (350,000) $ 1,617,200 |
F. Note Payable - Related Party
F. Note Payable - Related Party | 9 Months Ended |
Mar. 31, 2017 | |
F. Note Payable - Related Party | |
Note Payable | Note payable related party at March 31, 2017 and June 30, 2016 consists of the following: March 31, June 30, 2017 2016 Note payable - related party $ 750,000 $ 200,000 Less: current portion (750,000) - Note payable - related party, long-term $ - $ 200,000 At March 31, 2017, the note payable related party balance of $750,000 represents the amount drawn against a $750,000 line of credit with the Anderson Family Trust (Trust) managed by Donald and Rebecca Anderson, both of whom are members of the Companys Board of Directors. The line of credit was entered into on June 28, 2016 and amended on November 14, 2016, at which time the credit limit was increased to $750,000 and the maturity date was revised to January 1, 2018 when the full outstanding balance is due. As of March 31, 2017, the line of credit has no remaining balance available to be borrowed. The outstanding balance accrues interest at 7% per annum payable monthly and is collateralized by all assets of the Company. At loan inception, 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 nine months ended March 31, 2017, the Company expensed approximately $27,500 in interest related to the note, approximately $11,700 related to amortization of deferred loan costs, and approximately $5,300 related to the value of 90,000 warrants which vested during the nine month period. At March 31, 2017, the Company had unpaid interest to the Trust of approximately $8,400. The line of credit has a provision allowing the lender, at the lenders option, to convert up to the full amount of the credit line into shares of a thenavailable 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 | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic and diluted income (loss) per share of common stock was computed by dividing netloss 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 endedMarch 31, 2017 and 2016, there wereno 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 March 31, 2017 and 2016, respectively. |
H. Equity
H. Equity | 9 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Equity | The Company did not issue any shares of Common Stock during the nine months ended March 31, 2017. During the nine months ended March 31, 2017, the Company recognized the value of exercisable detachable warrants issued with debt in the amount of $5,300. 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, 2017 and June 30, 2016, no Preferred Stock of any series was issued or outstanding. |
I. Contingent Payments
I. Contingent Payments | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Payments | Contingent land payment of $686,700 at March 31, 2017 represents the net present value of $800,000 of estimated contingent land payments due under an agreement whereby Alanco Energy Services, Inc. (AES) acquired 160 acres of land known as Indian Mesa. The maximum total of $800,000 of contingent land payments is based upon 10% of quarterly revenues in excess of operating expenses up to $200,000 per quarter for activity at both the Deer Creek and Indian Mesa locations. The payments were projected considering current operating plans as approved by the Alanco Board of Directors, with the payments discounted at a rate of 3% per annum. Accretion expense is being imputed at 3% per annum, increasing the fair value of the contingent land payment during the nine months ended March 31, 2017 by $14,000. During the nine months ended March 31, 2017, no contingent land payment was earned or payable under the contingency formula. The contingent land payment is an obligation of the Company which will not be transferred to a buyer of the Indian Mesa land and associated permits discussed in Note D Assets Held for Sale and Discontinued Operations. The Company will maintain the liability for contingent payments resulting from future revenues on the Indian Mesa land resulting from the buyers operations. 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 March 31, 2017 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 | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Asset Retirement Obligation | The Company has recognized estimated asset retirement obligations (closure cost) of $434,000 at March 31, 2017 to remove leasehold improvements, remediate any pollution issues and return the Deer Creek water disposal property to itsnatural 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. Theclosure 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, 2017, the Company made $9,400 of the required $14,100 of quarterly payments and in addition paid $1,300 required for an inflation adjustment. The unpaid trust payment in the amount of $4,700 is included in accounts payable. The balances in the trust account for the asset retirement obligation as of March 31, 2017 and June 30, 2016 were $101,500 and $86,100, respectively. |
K. Commitments and Contingencie
K. Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2017 | |
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 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. 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 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 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 courts 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 Creeks attorneys fees application and the Companys 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 March 31, 2017 and reported as a loss from discontinued operations in the nine month period. The Companyvehemently disagrees with Black Creeks attorneys fees claim and the Court ruling and is vigorously appealing the judgment. The Company may from time to time be involved in litigation arising from the normal course of business. As of March 31, 2017, other than the litigation discussed above, there was no other such litigation pending deemed material by the Company. |
L. Related Party Transactions
L. Related Party Transactions | 9 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | At March31, 2017 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 nine months ended March 31, 2017, the Company billed ACC a total of approximately $21,100 for interest of which $16,300 is unpaid and fully reserved at March 31, 2017. At March 31, 2017 and June 30, 2016, the Company had accrued board fees in the total amount of $56,000 and $14,000, respectively. Effective as of December 15, 2016, the Board of Directors accepted the resignation of John Carlson as Chief Executive Officer of the Company. Mr. Carlson remains on the Companys Board of Directors. At March 31, 2017 and June 30, 2016, the Company had accrued deferred compensation of $70,900 and $58,400, respectively, payable to John Carlson, the Companys former Chief Executive Officer and a current Director of the Company. The Companys compensation committee approved a Severance and Employment Agreement with Mr. Carlson whereby he will provide ongoing services to the Company and the deferred compensation will be repaid in addition to other incentive based compensation related to the potential sale of the Companys AES Indian Mesa and Deer Creek sites. Also effective as of December 15, 2016, the Companys Board of Directors elected Steven Oman to serve as the interim President and Chief Executive Officer of the Company. In addition, the Board of Directors accepted the resignation of Harold Carpenter from the board and elected Steven Oman, Donald Anderson and Rebecca Anderson to the Board of Directors. |
M. Subsequent Events
M. Subsequent Events | 9 Months Ended |
Mar. 31, 2017 | |
M. Subsequent Events | |
Subsequent Events | There have been no reportable subsequent events. |
N. Liquidity and Going Concern
N. Liquidity and Going Concern | 9 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity and Going Concern | During thenine months ended March 31, 2017, the Company reported a net loss of ($1,436,600) and for the fiscal year ended June 30, 2016, the Company reported a net loss of ($1,594,800). The Companys fiscal 2017 and 2018 operating plans include 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 occur, 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, including a potential sale. There is no assurance that the Company will be able to execute options for Deer Creek. The Company is developing alternative business plans for monetization of its resources. Future business plans may require additional 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 Companys business, operating results, financial condition and ability tocontinue 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. The Companys independent registered public accounting firm has included an emphasis of matter 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 Companys ability to continue as a going concern. |
A. Basis of Presentation, Acc21
A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | 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 and Discontinued Operations for further discussion. The Company formed Alanco Behavioral Health, Inc. (ABH) during the quarter ended September 30, 2016, a wholly-owned subsidiary incorporated in the State of Arizona with the expectation of pursuing a business plan to consolidate small cap private behavioral health companies through acquisition. The Company executed a letter of intent to purchase the operations of a behavioral health treatment facility located in California, but has since terminated said acquisition and currently has no plans to pursue acquisitions in the behavioral health market. The Company is developing alternative business plans for monetization of its resources. |
Basis of Presentation | 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 footnotedisclosures normally included in financial statements prepared in accordance with GAAPhave 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 Companys 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 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 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 March 31, 2017 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 March 31, 2017 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 2017 Asset Retirement Obligation $ - $ - $ 434,000 $ 434,000 Contingent Land Payment - - 686,700 686,700 $ - $ - $ 1,120,700 $ 1,120,700 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 Contingent 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 nine months ended March 31, 2017. Asset Contingent Retirement Land Obligation Payment Total Opening balance $ 434,000 $ 672,700 $ 1,106,700 Accretion expense - 14,000 14,000 Closing balance $ 434,000 $ 686,700 $ 1,120,700 The following are the classes of assets and liabilities measured at fair value on a non-recurring basis at March 31, 2017, 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, 2017 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 2017 Property and Equipment, net $ - $ - $ 1,617,200 $ 1,617,200 $ - $ - $ 1,617,200 $ 1,617,200 There were no fair value measurements of Property and Equipment at June 30, 2016. |
Fair Value of Asset Retirement Obligation | Fair Value of Asset Retirement Obligation |
Fair Value of Contingent Payments | Fair Value of Contingent Payments |
Fair Value of Property and Equipment, net | Fair Value of Property and Equipment, net |
Assets Held for Sale | Assets Held for Sale |
Recent Accounting Pronouncements | 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, but does not anticipate it to have a material impact. 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, but will need to report a right of use asset and liability in regards to its facility lease. 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 October 2016, the FASB issued guidance regarding the treatment of intra-entity transfers of assets other than inventory. The guidance is effective for annual periods beginning after December 15, 2017, including interim reporting periods. Early adoption is permitted at the beginning of an annual period. The Company is currently assessing the impact on its financial position and results of operations. In January 2017, the FASB issued guidance regarding the definition of a business as it pertains to business combinations. The guidance is effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period and early adoption is permitted. The Company has adopted the guidance, which had no material impact on its financial position and results of operations. In January 2017, the FASB issued guidance regarding amendments to the FASB Accounting Standards Codification pursuant to SEC staff announcements. The guidance is effective upon issuance. The Company has adopted the guidance, which had no material impact on its financial position and results of operations. In February 2017, the FASB issued guidance regarding gains and losses from the derecognition of non-financial assets. The guidance is effective for annual reporting periods beginning after December 15, 2017including interim periodsand early adoption is permitted. 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 during the nine months ended March 31, 2017, 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) | 9 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | Fair Value at March 31, 2017 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 2017 Asset Retirement Obligation $ - $ - $ 434,000 $ 434,000 Contingent Land Payment - - 686,700 686,700 $ - $ - $ 1,120,700 $ 1,120,700 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 Contingent 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 - 14,000 14,000 Closing balance $ 434,000 $ 686,700 $ 1,120,700 |
Schedule of fair value Property and Equipment table text block | Fair Value at March 31, 2017 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 2017 Property and Equipment, net $ - $ - $ 1,617,200 $ 1,617,200 $ - $ - $ 1,617,200 $ 1,617,200 |
B. Stock-Based Compensation a23
B. Stock-Based Compensation and Warrants (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
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, 2016 1,200,000 $0.58 2.03 $ - $ 273,500 Granted - - - - - Exercised - - - - - Forfeited or expired - - - - - Outstanding March 31, 2017 1,200,000 $0.58 1.28 $ - $ 273,500 Exercisable March 31, 2017 1,200,000 $0.58 1.28 $ - $ 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, 2017, for those awards that have an exercise price below the closing price as of March 31, 2017 of $0.13. (3) Aggregate Fair Value is calculated using the Black Scholes option pricing model to estimate fair value of stock-based compensation. |
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 - - 90,000 0.75 Exercised - - - - Canceled/Expired - - - - Warrants Outstanding, March 31, 2017 140,000 $ 0.75 110,000 $ 0.75 |
C. Note Receivable - Related 24
C. Note Receivable - Related Party (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
C. Note Receivable - Related Party Tables | |
Summary of Note receivable | March 31, June 30, 2017 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) | 9 Months Ended |
Mar. 31, 2017 | |
E. Property And Equipment Tables | |
Property and Equipment | June 30, March 31, 2016 Additions Retirements Impairment 2017 Office furniture and equipment $ 51,300 $ - $ - $ $ 51,300 Water disposal facility 2,220,900 1,000 - (350,000) 1,871,900 Production equipment 514,400 - (28,600) 485,800 2,786,600 1,000 (28,600) (350,000) 2,409,000 Less accumulation depreciation (675,600) (137,700) 21,500 - (791,800) Net book value $ 2,111,000 $ (136,700) $ (7,100) $ (350,000) $ 1,617,200 |
F. Note Payable - Related Par26
F. Note Payable - Related Party (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
F. Note Payable - Related Party Tables | |
Notes Payable | March 31, June 30, 2017 2016 Note payable - related party $ 750,000 $ 200,000 Less: current portion (750,000) - Note payable - related party, long-term $ - $ 200,000 |
A. Basis of Presentation, Acc27
A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements (Details) - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
Asset retirement obligation | $ 434,000 | $ 434,000 |
Contingent land payment | 686,700 | 672,700 |
Total | 1,120,700 | 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 | 686,700 | 672,700 |
Total | $ 1,120,700 | $ 1,106,700 |
A. Basis of Presentation, Acc28
A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements (Details 1) | Mar. 31, 2017USD ($) |
Opening balance | $ 1,106,700 |
Accretion expense | 14,000 |
Closing balance | 1,120,700 |
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 | 14,000 |
Closing balance | $ 686,700 |
A. Basis of Presentation, Acc29
A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements (Details 2) - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
Property and Equipment | $ 2,409,000 | $ 2,786,600 |
Property and Equipment, Total | 1,617,200 | $ 2,111,000 |
Level 1: Quoted Prices Quoted Prices in active Markets for Identical Assets [Member] | ||
Property and Equipment | 0 | |
Property and Equipment, Total | 0 | |
Level 2: Significant Other Observable Inputs [Member] | ||
Property and Equipment | 0 | |
Property and Equipment, Total | 0 | |
Level 3: Significant Unobservable Inputs [Member] | ||
Property and Equipment | 1,617,200 | |
Property and Equipment, Total | $ 1,617,200 |
A. Basis of Presentation, Acc30
A. Basis of Presentation, Accounting Policies and Recent Accounting Pronouncements (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | |
A. Basis Of Presentation Accounting Policies And Recent Accounting Pronouncements Details Narrative | |||
Impairment charge | $ 350,000 | $ 350,000 |
B. Stock-Based Compensation a31
B. Stock-Based Compensation and Warrants (Details) | 9 Months Ended | |
Mar. 31, 2017USD ($)$ / 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 March 31, 2017 | shares | 1,200,000 | |
Shares Exercisable March 31, 2017 | shares | 1,200,000 | |
Weighted average exercise price per share outstanding July 1, 2016 | $ / 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 | 0 | |
Weighted average exercise price per share Outstanding March 31, 2017 | $ / shares | 0.58 | |
Weighted average exercise price per share Exercisable March 31, 2017 | $ / shares | $ 0.58 | |
Weighted average remaining contractual term Outstanding July 1, 2016 (1) | 2 years 11 days | [1] |
Weighted average remaining contractual term Outstanding March 31, 2017 (1) | 1 year 3 months 11 days | [1] |
Weighted average remaining contractual term Exercisable March 31, 2017 (1) | 1 year 3 months 11 days | [1] |
Aggregate Intrinsic Value Outstanding July 1, 2016 (2) | $ 0 | [2] |
Aggregate Intrinsic Value Granted (2) | 0 | [2] |
Aggregate Intrinsic Value Exercised (2) | 0 | [2] |
Aggregate Intrinsic Value Forfeited or expired (2) | 0 | [2] |
Aggregate Intrinsic Value Outstanding March 31, 2017 (2) | 0 | [2] |
Aggregate Intrinsic Value Exercisable March 31, 2017 (2) | 0 | [2] |
Aggregate fair value outstanding July 1, 2016 (3) | 273,500 | [3] |
Aggregate fair value Granted (3) | 0 | [3] |
Aggregate fair value Exercised (3) | 0 | [3] |
Aggregate fair value Forfeited or expired (3) | 0 | [3] |
Aggregate fair value Outstanding March 31, 2017 (3) | 273,500 | [3] |
Aggregate fair value Exercisable March 31, 2017 (3) | $ 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, 2017, for those awards that have an exercise price below the closing price as of March 31, 2017 of $0.13. | |
[3] | Aggregate Fair Value is calculated using the Black Scholes option pricing model to estimate fair value of stock-based compensation |
B. Stock-Based Compensation a32
B. Stock-Based Compensation and Warrants (Details 1) | 9 Months Ended |
Mar. 31, 2017$ / 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 | $ 0.75 |
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 | $ 0.75 |
Warrants Exercisable | |
Warrants Outstanding, Beginning | shares | 20,000 |
Granted | shares | 0 |
Previously Granted, Vested | shares | 90,000 |
Exercised | shares | 0 |
Cancelled/Expired | shares | 0 |
Warrants Outstanding, Ending | shares | 110,000 |
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 | 0.75 |
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 a33
B. Stock-Based Compensation and Warrants (Details Narrative) | Mar. 31, 2017shares |
Equity [Abstract] | |
Outstanding warrants | 140,000 |
C. Note Receivable - Related 34
C. Note Receivable - Related Party (Details) - USD ($) | Mar. 31, 2017 | 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 |
C. Note Receivable - Related 35
C. Note Receivable - Related Party (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
C. Note Receivable - Related Party Details Narrative | ||
Gross balance | $ 295,400 | $ 295,400 |
Interest unpaid and fully reserved | 16,300 | |
Credit line | $ 295,400 |
D. Assets Held for Sale and D36
D. Assets Held for Sale and Discontinued Operations (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
D. Assets Held For Sale And Discontinued Operations Details Narrative | |||||
Assets Held for Sale | $ 1,654,700 | $ 1,653,500 | |||
Loss from discontinued operations | $ 0 | $ 0 | $ 176,000 | $ 0 |
E. Property and Equipment (Deta
E. Property and Equipment (Details) - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
Property and equipment | $ 2,409,000 | $ 2,786,600 |
Less accumulation depreciation | (791,800) | (675,600) |
Net book value | 1,617,200 | 2,111,000 |
Additions [Member] | ||
Property and equipment | 1,000 | |
Less accumulation depreciation | (137,700) | |
Net book value | (136,700) | |
Retirements [Member] | ||
Property and equipment | (28,600) | |
Less accumulation depreciation | (21,500) | |
Net book value | (7,100) | |
Impairment [Member] | ||
Property and equipment | (350,000) | |
Less accumulation depreciation | 0 | |
Net book value | (350,000) | |
Office furniture and equipment [Member] | ||
Property and equipment | 51,300 | 51,300 |
Office furniture and equipment [Member] | Additions [Member] | ||
Property and equipment | 0 | |
Office furniture and equipment [Member] | Retirements [Member] | ||
Property and equipment | 0 | |
Office furniture and equipment [Member] | Impairment [Member] | ||
Property and equipment | 0 | |
Water disposal facility [Member | ||
Property and equipment | 1,871,900 | 2,220,900 |
Water disposal facility [Member | Additions [Member] | ||
Property and equipment | 1,000 | |
Water disposal facility [Member | Retirements [Member] | ||
Property and equipment | 0 | |
Water disposal facility [Member | Impairment [Member] | ||
Property and equipment | (350,000) | |
Production equipment [Member | ||
Property and equipment | 485,800 | $ 514,400 |
Production equipment [Member | Additions [Member] | ||
Property and equipment | 0 | |
Production equipment [Member | Retirements [Member] | ||
Property and equipment | (28,600) | |
Production equipment [Member | Impairment [Member] | ||
Property and equipment | $ 0 |
F. Note Payable - Related Par38
F. Note Payable - Related Party (Details) - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
F. Note Payable - Related Party Details | ||
Note payable | $ 750,000 | $ 200,000 |
Less current | (750,000) | 0 |
Note payable, long-term | $ 0 | $ 200,000 |
F. Note Payable - Related Par39
F. Note Payable - Related Party (Details Narrative) | 9 Months Ended |
Mar. 31, 2017USD ($)shares | |
F. Note Payable - Related Party Details Narrative | |
Note payable - related party | $ 750,000 |
Interest Expense RelatedParty | 27,500 |
Amortization of deferred loan Cost | $ 11,700 |
Warrants vested | shares | 90,000 |
Unpaid interest | $ 8,400 |
G. Earnings Per Share (Details
G. Earnings Per Share (Details Narrative) - shares | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Total common stock equivalents issuable under these potentially dilutive securities | 1,340,000 | 1,200,000 |
H. Equity (Details Narrative)
H. Equity (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Exercisable detachable warrants issued | $ 5,300 | |
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) | Mar. 31, 2017USD ($) |
I. Contingent Payments Details | |
Contingent land payment | $ 686,700 |
Less current portion | 14,000 |
Contingent payments, long-term | $ 800,000 |
J. Asset Retirement Obligation
J. Asset Retirement Obligation (Details Narrative) - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
Accounting Policies [Abstract] | ||
Payment made for asset retirement obligation | $ 10,700 | |
Balance at trust account for asset retirement obligation | $ 101,500 | $ 86,100 |
K. Commitments and Contingenc44
K. Commitments and Contingencies (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Attorney fees and accrued interest | $ 22,600 | $ 128,300 |
Accrued liability | 176,000 | |
Reversed accrual | $ 22,600 | $ 128,300 |
L. Related Party Transactions (
L. Related Party Transactions (Details Narrative) - American Citizenship Center, LLC - USD ($) | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Due from related party | $ 295,400 | $ 295,400 |
Unpaid receivables | 16,300 | |
Interest income paid | 4,800 | |
Interest income, remaining | 16,300 | |
Accrued board fees | 56,000 | 14,000 |
Accrued deferred compensation | $ 70,900 | $ 58,400 |
N. Liquidity and Going Concern
N. Liquidity and Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Net loss | $ (631,600) | $ (322,000) | $ (1,436,600) | $ (1,070,100) | $ (1,594,800) |