Note 3 - Property and Equipment

6 Months Ended

Dec. 31, 2015

Property, Plant and Equipment Disclosure [Text Block]

3.	PROPERTY AND EQUIPMENT:

Property and equipment consists of the following:

	December 31, 2015			June 30, 2015
Machinery and equipment	$	2,923,577		$	2,923,577
Buildings and structures		1,385,125			1,385,125
Computers and office equipment		177,931			175,248
		4,486,633			4,483,950
Less accumulated depreciation		(2,657,125	)		(2,506,731	)
	$	1,829,508		$	1,977,219

Management reviewed property and equipment for impairment as of June 30, 2015 and determined that the carrying amount of property and equipment related to the Kreider 1 project exceeded its estimated future undiscounted cash flows based on certain assumptions regarding timing, level and probability of revenues from sales of nutrient reduction credits. Kreider 1 was measured at estimated fair value on a non-recurring basis using level 3 inputs, which resulted in an impairment of $1,750,000 of the property and equipment for the year ended June 30, 2015. As of December 31, 2015, management believes that no additional impairment exists.

Depreciation expense was $76,083 and $127,159 for the three months ended December 31, 2015 and 2014, respectively, and $151,962 and $312,043 for the six months ended December 31, 2015 and 2014, respectively.