Note 3 - Property and Equipment

12 Months Ended

Jun. 30, 2016

Property, Plant and Equipment Disclosure [Text Block]

3. PROPERTY AND EQUIPMENT:

Property and equipment consists of the following:

	June 30, 2016			June 30, 2015
Machinery and equipment	$	2,222,670		$	2,923,577
Buildings and structures		401,470			1,385,125
Computers and office equipment		173,313			175,248
		2,797,453			4,483,950
Less accumulated depreciation		(2,793,194	)		(2,506,731	)
	$	4,259		$	1,977,219

Management reviewed property and equipment for impairment as of June 30, 2016 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 and potentially needed capital expenditures and it was also determined that the salvage value of the system components will be offset by contractual decommissioning obligations. Kreider 1 was measured at estimated fair value on a non-recurring basis using level 3 inputs, which resulted in an impairment of $1,684,562 of the property and equipment for the year ended June 30, 2016. As of June 30, 2016, the net book value of Kreider 1 was zero. The Company also recorded an impairment of $1,750,000 for the year ended June 30, 2015.

Depreciation expense was $293,577 and $623,934 for the years ended June 30, 2016 and 2015, respectively.