Note 3 - Property and Equipment

6 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

3.

     PROPERTY AND EQUIPMENT:

Property and equipment consists of the following:

	December 31, 2016			June 30, 2016
Machinery and equipment	$	2,222,670		$	2,222,670
Buildings and structures		401,470			401,470
Computers and office equipment		173,313			173,313
		2,797,453			2,797,453
Less accumulated depreciation		(2,794,199	)		(2,793,194	)
	$	3,254		$	4,259

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.

As of

December

31,

2016,

management believes that

no

additional impairment exists.

Depreciation expense was

$503

and

$76,083

for the

three

months ended

December

31,

2016

and

2015,

respectively, and

$1,005

and

$151,962

for the

six

months ended

December

31,

2016

and

2015,

respectively.