0001079973-18-000313.txt : 20180510 0001079973-18-000313.hdr.sgml : 20180510 20180510113435 ACCESSION NUMBER: 0001079973-18-000313 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 53 CONFORMED PERIOD OF REPORT: 20180331 FILED AS OF DATE: 20180510 DATE AS OF CHANGE: 20180510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BION ENVIRONMENTAL TECHNOLOGIES INC CENTRAL INDEX KEY: 0000875729 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE CHEMICALS [2870] IRS NUMBER: 841176672 STATE OF INCORPORATION: CO FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-19333 FILM NUMBER: 18821163 BUSINESS ADDRESS: STREET 1: C/O BOX 566 STREET 2: 1774 SUMMITVIEW WAY CITY: CRESTONE STATE: CO ZIP: 81131 BUSINESS PHONE: (212) 758-6622 MAIL ADDRESS: STREET 1: C/O BOX 566 STREET 2: 1774 SUMMITVIEW WAY CITY: CRESTONE STATE: CO ZIP: 81131 FORMER COMPANY: FORMER CONFORMED NAME: RSTS CORP DATE OF NAME CHANGE: 19930328 10-Q 1 bion_10q-033118.htm FORM 10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _________

Commission File No. 000-19333

Bion Environmental Technologies, Inc.
(Name of registrant in its charter)

Colorado
 
84-1176672
(State or other jurisdiction of incorporation or formation)
   
(I.R.S. employer identification number)

Box 566 / 1774 Summitview Way
Crestone, Colorado  81131
(Address of principal executive offices)
 
(212) 758-6622
(Registrant’s telephone number, including area code) 

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
  Yes     No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).         Yes    No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

   
Large accelerated filer 
 
Accelerated filer 
 
   
Non-accelerated filer   
(Do not check if a smaller reporting company)
 
Smaller reporting company 
 
   
Emerging growth company  
     

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes     No


APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.   Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.  On May 1, 2018, there were 25,511,871 Common Shares issued and 24,807,562 Common Shares outstanding.

BION ENVIRONMENTAL TECHNOLOGIES, INC.

FORM 10-Q

TABLE OF CONTENTS
 

PART I.  FINANCIAL INFORMATION
 
Page
       
Item 1.
Financial Statements
 
3
 
Consolidated financial statements (unaudited):
   
 
  Balance sheets
 
3
 
  Statements of operations
 
4
 
  Statement of changes in equity (deficit)
 
5
 
  Statements of cash flows
 
6
 
  Notes to unaudited consolidated financial statements
 
7-23
       
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
 
24
       
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
 
38
       
Item 4.
Controls and Procedures
 
38
       
PART II.  OTHER INFORMATION
   
       
Item 1.
Legal Proceedings
 
39
       
Item 1A.
Risk Factors
 
39
       
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
 
39
       
Item 3.
Defaults Upon Senior Securities
 
39
       
Item 4.
Mine Safety Disclosures
 
39
       
Item 5.
Other Information
 
39
       
Item 6.
Exhibits
 
39
       
 
Signatures
 
40
       

FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements, within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "project," "predict," "plan," "believe" or "continue" or the negative thereof or variations thereon or similar terminology.  The expectations reflected in forward-looking statements may prove to be incorrect.
2


PART I – FINANCIAL INFORMATION
BION ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

   
March 31,
   
June 30,
 
   
2018
   
2017
 
   
(unaudited)
       
ASSETS
           
             
Current assets:
           
Cash
 
$
40,403
   
$
72,932
 
Prepaid expenses
   
4,105
     
6,426
 
Deposits and other receivables
   
1,000
     
1,980
 
                 
Total current assets
   
45,508
     
81,338
 
                 
Property and equipment, net (Note 3)
   
1,884
     
3,192
 
                 
Total assets
 
$
47,392
   
$
84,530
 
                 
LIABILITIES AND EQUITY (DEFICIT)
               
                 
Current liabilities:
               
Accounts payable and accrued expenses
 
$
946,590
   
$
865,841
 
Series B Redeemable Convertible Preferred stock, $0.01 par value,
               
  50,000 shares authorized; 200 shares issued and outstanding,
               
  liquidation preference of $33,500 and $32,000, respectively (Note 8)
   
30,900
     
29,400
 
Loans payable - affiliates (Note 4)
   
18,000
     
-
 
Deferred compensation (Note 5)
   
345,929
     
2,107,262
 
Convertible notes payable - affiliates (Note 7)
   
-
     
88,927
 
Loan payable and accrued interest (Note 6)
   
8,970,818
     
8,796,322
 
                 
Total current liabilities
   
10,312,237
     
11,887,752
 
                 
Convertible notes payable - affiliates (Note 7)
   
3,498,901
     
3,316,060
 
                 
     
13,811,138
     
15,203,812
 
                 
Deficit:
               
Bion's stockholders' equity (deficit):
               
Series A Preferred stock, $0.01 par value, 50,000 shares authorized,
               
   no shares issued and outstanding
   
-
     
-
 
                 
Series C Convertible Preferred stock, $0.01 par value,
               
60,000 shares authorized; no shares issued and outstanding
   
-
     
-
 
                 
Common stock, no par value, 100,000,000 shares authorized, 25,327,394
               
   and 24,748,213 shares issued, respectively; 24,623,085
               
   and 24,043,904 shares outstanding, respectively
   
-
     
-
 
Additional paid-in capital
   
107,801,537
     
103,540,352
 
Subscription receivable - affiliates (Note 8)
   
(174,650
)
   
(40,000
)
Accumulated deficit
   
(121,445,479
)
   
(118,676,966
)
                 
     
(13,818,592
)
   
(15,176,614
)
                 
Noncontrolling interest
   
54,846
     
57,332
 
                 
Total deficit
   
(13,763,746
)
   
(15,119,282
)
                 
Total liabilities and deficit
 
$
47,392
   
$
84,530
 

 
See notes to consolidated financial statements
3

BION ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED MARCH 31, 2018 AND 2017
(UNAUDITED)

    
Three months ended
   
Nine months ended
 
    
March 31,
   
March 31,
 
   
2018
   
2017
   
2018
   
2017
 
                         
Revenue
 
$
-
   
$
-
   
$
-
   
$
-
 
                                 
                                 
Operating expenses:
                               
                                 
General and administrative (including stock-based compensation  (Note 8))
   
956,826
     
401,346
     
2,077,519
     
1,352,734
 
Depreciation
   
436
     
502
     
1,308
     
1,507
 
Research and development (including stock-based compensation (Note 8))
   
680,436
     
85,802
     
1,125,937
     
324,127
 
                                 
                                 
Total operating expenses
   
1,637,698
     
487,650
     
3,204,764
     
1,678,368
 
                                 
Loss from operations
   
(1,637,698
)
   
(487,650
)
   
(3,204,764
)
   
(1,678,368
)
                                 
Other expense (income):
                               
Gain on extinguishment of liabilities (Note 5)
   
-
     
-
     
(718,580
)
   
-
 
Conversion inducement (Note 8)
   
8,000
     
-
     
8,000
     
-
 
Interest expense, net
   
84,714
     
94,640
     
276,815
     
281,969
 
                                 
Total other expense (income)
   
92,714
     
94,640
     
(433,765
)
   
281,969
 
                                 
Net loss
   
(1,730,412
)
   
(582,290
)
   
(2,770,999
)
   
(1,960,337
)
                                 
Net loss attributable to the noncontrolling interest
   
1,472
     
508
     
2,486
     
1,904
 
                                 
Net loss applicable to Bion's common stockholders
 
$
(1,728,940
)
 
$
(581,782
)
 
$
(2,768,513
)
 
$
(1,958,433
)
                                 
                                 
Net loss applicable to Bion's common stockholders per basic and diluted common share
 
$
(0.07
)
 
$
(0.02
)
 
$
(0.11
)
 
$
(0.08
)
                                 
Weighted-average number of common shares outstanding:
                               
Basic and diluted
   
24,465,814
     
23,348,981
     
24,253,807
     
23,407,626
 
 
 
See notes to consolidated financial statements
 
4


BION ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)
NINE MONTHS ENDED MARCH 31, 2018
(UNAUDITED)

                                                       
    
Bion's Shareholders'
             
    
Series C Preferred Stock
   
Common Stock
   
Additional
   
Subscription Receivables
   
Accumulated
   
Noncontrolling
   
Total
equity/
 
    
Shares
   
Amount
   
Shares
   
Amount
   
paid-in capital
   
 for Shares
   
deficit
   
interest
   
(deficit)
 
                                                       
Balances, July 1, 2017
   
-
   
$
-
     
24,748,213
   
$
-
   
$
103,540,352
   
$
(40,000
)
 
$
(118,676,966
)
 
$
57,332
   
$
(15,119,282
)
                                                                         
Issuance of common stock for services
   
-
     
-
     
18,849
     
-
     
14,631
     
-
     
-
     
-
     
14,631
 
Vesting of options and stock bonuses for services
   
-
     
-
     
-
     
-
     
1,391,671
     
-
     
-
     
-
     
1,391,671
 
Modification of options
   
-
     
-
     
-
     
-
     
349,656
     
-
     
-
     
-
     
349,656
 
Sale of units
   
-
     
-
     
480,331
     
-
     
306,997
     
-
     
-
     
-
     
306,997
 
Commissions on sale of units
   
-
     
-
     
-
     
-
     
(14,875
)
   
-
     
-
     
-
     
(14,875
)
Warrants exercised for common stock
   
-
     
-
     
80,001
     
-
     
48,001
     
-
     
-
     
-
     
48,001
 
Modification of warrants
   
-
     
-
     
-
     
-
     
296,852
     
-
     
-
     
-
     
296,852
 
Issuance of warrants
   
-
     
-
     
-
     
-
     
183,000
     
(134,650
)
   
-
     
-
     
48,350
 
Extinguishment of deferred compensation - related parties
   
-
     
-
     
-
     
-
     
1,685,252
     
-
     
-
     
-
     
1,685,252
 
Net loss
   
-
     
-
     
-
     
-
     
-
     
-
     
(2,768,513
)
   
(2,486
)
   
(2,770,999
)
Balances, March 31, 2018
   
-
   
$
-
     
25,327,394
   
$
-
   
$
107,801,537
   
$
(174,650
)
 
$
(121,445,479
)
 
$
54,846
   
$
(13,763,746
)


 
 
See notes to consolidated financial statements
 

5

BION ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED MARCH 31, 2018 AND 2017
(UNAUDITED)
             
   
2018
   
2017
 
CASH FLOWS FROM OPERATING ACTIVITIES
           
Net loss
 
$
(2,770,999
)
 
$
(1,960,337
)
Adjustments to reconcile net loss to net cash used in operating activities:
               
Depreciation expense
   
1,308
     
1,507
 
Accrued interest on loan payable, deferred compensation and other
   
303,189
     
308,347
 
Stock-based compensation
   
2,101,160
     
481,565
 
Gain on extinguishment of liabilities
   
(718,580
)
   
-
 
Conversion inducement
   
8,000
     
-
 
Decrease  in prepaid expenses
   
2,321
     
8,504
 
Increase in accounts payable and accrued expenses
   
80,749
     
133,171
 
Increase in deferred compensation
   
610,200
     
627,200
 
                 
Net cash used in operating activities
   
(382,652
)
   
(400,043
)
                 
CASH FLOWS FROM FINANCING ACTIVITIES
               
Decrease in subscription receivable
 
$
-
   
$
7,500
 
Proceeds from sale of common stock
   
-
     
22,850
 
Proceeds from sale of units
   
306,997
     
249,628
 
Commissions on sale of units
   
(14,875
)
   
(14,212
)
Proceeds from exercise of warrants
   
40,001
     
-
 
Repayment of loans payable - affiliates
   
(12,500
)
   
-
 
Proceeds from loans payable - affiliates
   
30,500
     
-
 
                 
Net cash provided by financing activities
   
350,123
     
265,766
 
                 
Net decrease in cash
   
(32,529
)
   
(134,277
)
                 
Cash at beginning of period
   
72,932
     
170,194
 
                 
Cash at end of period
 
$
40,403
   
$
35,917
 
                 
Supplemental disclosure of cash flow information:
               
Cash paid for interest
 
$
-
   
$
-
 
                 
Non-cash investing and financing transactions:
               
Issuance of common stock to satisfy deferred compensation and accounts payable
 
$
-
   
$
140,502
 
Purchase of warrants for subscription receivable - affiliates
 
$
134,650
   
$
40,000
 
Forgiveness of deferred compensation - related parties
 
$
1,685,252
   
$
-
 
 
 
See notes to consolidated financial statements
6

BION ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE AND NINE MONTHS ENDED MARCH 31, 2018 AND 2017
(UNAUDITED)


1. ORGANIZATION, NATURE OF BUSINESS, GOING CONCERN AND MANAGEMENT’S PLANS:
Organization and nature of business:
Bion Environmental Technologies, Inc. (“Bion” or “We” or the “Company”) was incorporated in 1987 in the State of Colorado and has developed and continues to develop patented and proprietary technology and business models that provide comprehensive environmental solutions to a significant source of pollution in United States agriculture, large scale livestock facilities known as Concentrated Animal Feeding Operations (“CAFO’s”). Application of our technology and technology platform can simultaneously remediate environmental problems and improve operational/resource efficiencies by recovering value from the CAFOs’ waste stream that has traditionally been wasted or underutilized, including renewable energy, nutrients (nitrogen and phosphorus--- in organic and conventional form) and clean water. Bion’s technologies (and applications related thereto) produce substantial reductions of nutrient releases (primarily nitrogen and phosphorus) to both water and air (including ammonia, which is subsequently re-deposited to the ground) from livestock waste streams based upon our operations and research to date (and third party peer review thereof). Our technology simultaneously enables the documentation of the remediation efforts thereby providing the basis to address concerns re sustainability and food safety.  We are continually involved in research and development to upgrade and improve our technology and technology applications, including integration with third party technology. Bion provides comprehensive and cost-effective treatment of livestock waste onsite (and/or at nearby locations), while it is still concentrated and before it contaminates air, soil, groundwater aquifers and/or downstream waters, and, in certain configurations, can be optimized to maximize recovery of marketable nutrients for potential use as fertilizer (organic and/or inorganic) and/or feed additives plus renewable energy (and related environmental credits).
From 2014 through the current 2018 fiscal year, the Company has focused its research and development on augmenting the basic ‘separate and aggregate’ approach of its technology platform to provide additional flexibility and to increase recovery of marketable nutrient by-products (in organic and non-organic forms) and renewable energy production (either/both biogas and/or renewable electricity), thereby increasing potential related revenue streams and reducing dependence of its future projects on the monetization of nutrient reductions (which still remain a very important part of project revenue streams).  Bion has worked on development of its third generation technology (“3G Tech”) which is designed to: a) generate significantly greater value from the nutrients and renewable energy recovered from the waste stream, b) treat dry (poultry) waste streams as well as wet waste streams (dairy/beef cattle/swine), and c) while maintaining or improving environmental performance. This research and development effort also involves ongoing review of potential “add-ons” and applications to our technology platform for use in different regulatory and/or climate environments. These research and development activities have targeted completion of development of the next generation of Bion’s technology and technology platform. We believe such activities will continue at least through the 2018 calendar year (and likely longer), subject to availability of adequate financing for the Company’s operations, of which there is no assurance.  Such activities may include design and construction of an initial, commercial-scale module utilizing our 3G Tech to assist in optimization efforts before construction of the full Kreider 2 project (see below).
Currently, Bion is focused on using applications of its patented and proprietary waste management technologies and technology platform to pursue three main business opportunities: 1) installation of Bion systems (some of which may  generate verified nutrient credits and revenues from the production of renewable energy and byproducts) to retrofit and environmentally remediate existing CAFOs (“Retrofits”) in selected markets where: a) government policy supports such efforts (such as the Chesapeake Bay watershed, some Great Lakes Basin states, and/or other states and watersheds facing Environmental Protection Agency (“EPA”) ‘total maximum daily load’ (“TMDL”) issues, and/or b) where CAFO’s need our technology to obtain permits to expand or develop without negative environmental consequences; 2) development of new state-of-the-art large-scale waste treatment facilities in conjunction with large CAFO’s in strategic locations (“Projects”) ( some of these may be Integrated Projects as described below) with multiple revenue streams, and 3) licensing and/or joint venturing of Bion’s technology and applications (primarily) outside North America. The opportunities described at 1) and 2) above each require substantial political and regulatory (federal, state and local) efforts on the part of the Company and a substantial part of Bion’s efforts are focused on such political and regulatory matters. Bion intends to pursue international opportunities primarily through the use of consultants with existing relationships in target locations. The most intense focus is currently on the requirements for the clean-up of the Chesapeake Bay faced by the Commonwealth of Pennsylvania and the potential use of Bion’s technology and technology platform on CAFOs to remediate ammonia release (and re-deposition to the ground and water) and as an alternative to what the Company believes is far more expensive nutrient removal downstream in storm water and other projects.
 
 
7

Management believes that Bion’s technology also creates the opportunity to develop Integrated Projects that profitably integrate large-scale CAFO's production with their downstream food processing facility, and in certain applications, biofuel/ethanol production. The Bion platform will provide treatment of, as well as renewable energy and by-product recovery from, both the CAFO and food processing waste streams, on-site utilization of some or all of the renewable energy generated, and potentially, biofuel/ethanol production, in an environmentally and economically sustainable manner that reduces the aggregate capital expense and operating costs for the entire integrated complex. Projects may involve various degrees of integration which will limit the benefits described herein.
During 2008 the Company commenced actively pursuing the opportunity presented by environmental retrofit and remediation of the waste streams of existing CAFOs which effort has met with very limited success to date. The first commercial activity in this area is represented by our agreement with Kreider Farms (“KF”), pursuant to which the Kreider 1 system to treat KF's dairy waste streams to reduce nutrient releases to the environment while generating marketable nutrient credits and renewable energy was designed, constructed and entered  full-scale operation during 2011. On January 26, 2009 the Board of the Pennsylvania Infrastructure Investment Authority (“Pennvest”) approved a $7.75 million loan to Bion PA 1, LLC (“PA1”), a wholly-owned subsidiary of the Company, for the initial Kreider Farms project (“Kreider 1 System”). After substantial unanticipated delays, on August 12, 2010 PA1 received a permit for construction of the Kreider 1 System.  Construction activities commenced during November 2010.  The closing/settlement of the Pennvest Loan took place on November 3, 2010.  PA1 finished the construction of the Kreider 1 System and entered a period of system ‘operational shakedown’ during May 2011.  The Kreider 1 System reached full, stabilized operation by the end of the 2012 fiscal year.  During 2011 the Pennsylvania Department of Environmental Protection (“PADEP”) re-certified the nutrient credits for this project.  The PADEP issued final permits for the Kreider 1 System (including the credit verification plan) on August 1, 2012 on which date the Company deemed that the Kreider 1 System was ‘placed in service’.  As a result, PA1 commenced generating nutrient reduction credits for potential sale while continuing to utilize the Kreider 1 System to test improvements and add-ons. However, to date liquidity in the Pennsylvania nutrient credit market has been slow to develop significant breadth and depth,  which limited liquidity/depth has negatively impacted Bion’s business plans and has resulted in challenges to monetizing the nutrient reductions created by PA1’s existing Kreider 1 System and Bion’s other proposed projects. These difficulties have prevented PA1 from generating any material revenues from the Kreider 1 System to date and raise significant questions as to when, if ever, PA1 will be able to generate such revenues from the Kreider 1 System.  PA1 has had sporadic discussions/negotiations with Pennvest related to forbearance and/or re-structuring its obligations pursuant to the Pennvest Loan for more than four years. In the context of such discussions/negotiations, PA1 elected not to make interest payments to Pennvest on the Pennvest Loan since January 2013.  Additionally, the Company has not made any principal payments, which were to begin in fiscal 2013, and, therefore, the Company has classified the Pennvest Loan as a current liability as of March 31, 2018.  Due to the failure of the Pennsylvania nutrient reduction credit market to develop, the Company determined (on three separate occasions) that the carrying amount of the property and equipment related to the Kreider 1 System exceeded its estimated future undiscounted cash flows based on certain assumptions regarding timing, level and probability of revenues from sales of nutrient reduction credits.  Therefore, PA1 and the Company recorded impairments related to the value of the Kreider 1 assets totaling $3,750,000 through June 30, 2015.  During the 2016 fiscal year, PA1 and the Company recorded an additional impairment of $1,684,562 to the value of the Kreider 1 assets which reduced the value on the Company’s books to zero.  This impairment reflects management’s judgment that the salvage value of the Kreider 1 assets roughly equals PA1’s contractual obligations related to the Kreider 1 System, including expenses related to decommissioning of the Kreider 1 System, costs associated with needed capital upgrade expenses, and re-certification/ permitting amendments.
On September 25, 2014, Pennvest exercised its right to declare the Pennvest Loan in default and accelerated the Pennvest Loan and demanded that PA1 pay $8,137,117 (principal, interest plus late charges) on or before October 24, 2014. PA1 did not make the payment and does not have the resources to make the payments demanded by Pennvest. PA1 has commenced discussions and negotiations with Pennvest concerning this matter but Pennvest has rejected PA1’s proposal made during the fall of 2014.  No formal proposals are presently under consideration and only sporadic communication has taken place regarding the matters involved over the last 36 months.  It is not possible at this date to predict the outcome of such this matter, but the Company believes that a loan modification agreement (coupled with an agreement regarding an update and re-start of full operations of the Kreider 1 System) may be reached in the future if/when a more robust market for nutrient reductions develops in Pennsylvania, of which there is no assurance. PA1 and Bion will continue to evaluate various options with regard to Kreider 1 over the next 30-180 days.
 
8

During August 2012, the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider 1 System met the ‘technology guaranty’ standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan has been (and is now) solely an obligation of PA1 since that date.
The economics (potential revenues, profitability and continued operation) of the Kreider 1 System are based almost entirely on the long term sale of nutrient (nitrogen and/or phosphorus) reduction credits to meet the requirements of the Chesapeake Bay environmental clean-up.
On May 5, 2016, Bion PA2 LLC (“PA2”) executed a stand-alone joint venture agreement with Kreider Farms covering all matters related to development and operation of a system to treat the waste streams from Kreider’s poultry facilities (“Kreider 2”).
The Kreider projects are owned and operated by Bion through separate subsidiaries, in which Kreider has the option to acquire a noncontrolling interest. Substantial capital (equity and/or debt) has been and will continue to be expended on these projects. Additional funds will be required for continuing operations and additional capital expenditures for upgrades at Kreider 1 until sufficient revenues can be generated, of which there is no assurance. The Company anticipates that the Kreider 1 System will generate revenue primarily from the sale of nutrient reduction (and/or other) environmental credits. A portion of Bion’s research and development activities has taken place at the Kreider 1 facility.
Kreider 2 (not yet constructed) (and most future Projects) will be developed using variations on Bion’s 3G Tech to recover substantial marketable nutrients and renewable energy to supplement its revenue from nutrient reductions. The Company believes that the proceeds from multiple byproduct streams including i) fertilizer (organic and non-organic) and/or feed additives and ii) renewable energy (and related credits) can be reasonably projected to generate, in aggregate, revenue streams that, in certain circumstances, may exceed two-thirds of total revenues from such Project(s) when aggregated with license fees related to a ‘sustainable brand’ resulting from implementation of Bion’s technology. To date the market for long-term nutrient reduction credits in Pennsylvania has been very slow to develop and the Company’s activities have been negatively affected by the lack of such development.
Kreider 2 pre-development work and technology evaluation, including execution of a stand-alone joint venture agreement, amended credit certification and discussions with potential joint venture partners, continues.  The Kreider 2 Project primarily relates to treatment of the wastes from Kreider’s poultry operations. Assuming there are positive developments related to the market for nutrient reductions in Pennsylvania, the Company intends to pursue development, design and construction of the Kreider 2 poultry waste/renewable energy project with a goal of achieving operational status for its initial modules during fiscal year 2019. However, as discussed above, this Project faces challenges related to the current limits of the existing nutrient reduction market and funding of technology-based, verifiable agricultural nutrient reductions which are anticipated to constitute the largest share of its revenues.
A significant portion of Bion’s activities concern efforts with private and public stakeholders (at local and state level) in Pennsylvania (and other Chesapeake Bay and Midwest and Great Lakes states) and at the federal level EPA and the Department of Agriculture (“USDA”) (and other executive departments) and Congress) to establish appropriate public policies which will create regulations and funding mechanisms that foster installation of the low cost environmental solutions that Bion (and others) can provide through clean-up of agricultural waste streams. The Company anticipates that such efforts will continue in Pennsylvania and other Chesapeake Bay watershed states throughout the next 12 months and in various additional states thereafter.
 
9

Going concern and management’s plans:
The consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has not generated significant revenues and has incurred net losses (including significant non-cash expenses) of approximately $2,463,000 and $4,522,000 during the years ended June 30, 2017 and 2016, respectively and net loss of approximately $2,771,000 during the nine months ended March 31, 2018. At March 31, 2018, the Company has a working capital deficit and a stockholders’ deficit of approximately $10,267,000 and $13,819,000, respectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability or classification of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. The following paragraphs describe management’s plans with regard to these conditions.
The Company continues to explore sources of additional financing (including potential agreements with strategic partners – both financial and ag-industry) to satisfy its current and future operating and capital expenditure requirements as it is not currently generating any significant revenues.
During the years ended June 30, 2017 and 2016, the Company received total proceeds of approximately $452,000 and $761,000 from the sale of its debt and equity securities. Proceeds during the 2017 and 2016 fiscal years have been lower than in earlier years which reduction has negatively impacted the Company’s business development efforts.
During the nine months ended March 31, 2018, the Company received approximately $307,000 from the sale of its debt and equity securities, which is lower than previous years.
During fiscal years 2017 and 2016 and through the nine months ended March 31, 2018, the Company experienced greater difficulty in raising equity funding than in the prior years. As a result, the Company faced, and continues to face, significant cash flow management challenges due to working capital constraints. To partially mitigate these working capital constraints, the Company’s core senior management and several key employees and consultants have been deferring (and continue to defer) all or part of their cash compensation and/or are accepting compensation in the form of securities of the Company (Notes 5 and 7) and members of the Company’s senior management have made loans to the Company (Note 4). During the nine months ended March 31, 2018, senior management and certain core employees and consultants agreed to a one-time extinguishment of liabilities owed by the Company which in aggregate totaled $2,404,000.  Additionally, the Company made reductions in its personnel during the years ended June 30, 2014 and 2015. The constraint on available resources has had, and continues to have, negative effects on the pace and scope of the Company’s efforts to develop its business. The Company has had to delay payment of trade obligations and has had to economize in many ways that have potentially negative consequences. If the Company does not have greater success in its efforts to raise needed funds during the remainder of the current fiscal year (and subsequent periods), management will need to consider deeper cuts (including additional personnel cuts) and curtailment of operations (including possibly Kreider 1 operations) and/or research and development activities.
The Company will need to obtain additional capital to fund its operations and technology development, to satisfy existing creditors, to develop Projects (including Integrated Projects) (including the Kreider 2 facility) and CAFO Retrofit waste remediation systems and to continue to operate the Kreider 1 facility. The Company anticipates that it will seek to raise from $2,500,000 to $50,000,000 or more debt and/or equity through joint ventures, strategic partnerships and/or sale of its equity securities (common, preferred and/or hybrid) and/or debt (including convertible) securities, and/or through use of ‘rights’ and/or warrants (new and/or existing) during the next twelve months. However, as discussed above, there is no assurance, especially in light of the difficulties the Company has experienced in recent periods and the extremely unsettled capital markets that presently exist (especially for companies like us), that the Company will be able to obtain the funds that it needs to stay in business, complete its technology development or to successfully develop its business and Projects.
There is no realistic likelihood that funds required during the next twelve months (or in the periods immediately thereafter) for the Company’s basic operations and/or proposed Projects will be generated from operations. Therefore, the Company will need to raise sufficient funds from external sources such as debt or equity financings or other potential sources. The lack of sufficient additional capital resulting from the inability to generate cash flow from operations and/or to raise capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business. Further, there can be no assurance that any such required funds, if available, will be available on attractive terms or that they will not have a significantly dilutive effect on the Company’s existing shareholders. All of these factors have been exacerbated by the extremely limited and unsettled credit and capital markets presently existing for small companies like Bion.
 
10

2. SIGNIFICANT ACCOUNTING POLICIES
Principles of consolidation:
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Bion Integrated Projects Group, Inc. (“Projects Group”), Bion Technologies, Inc., BionSoil, Inc., Bion Services, PA1, and PA2; and its 58.9% owned subsidiary, Centerpoint Corporation (“Centerpoint”). All significant intercompany accounts and transactions have been eliminated in consolidation.
The accompanying consolidated financial statements have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).  The consolidated financial statements reflect all adjustments (consisting of only normal recurring entries) that, in the opinion of management, are necessary to present fairly the financial position at March 31, 2018, and the results of operations and cash flows of the Company for the three and nine months ended March 31, 2018 and 2017.  Operating results for the three and nine months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending June 30, 2018.
Property and equipment:
Property and equipment are stated at cost and are depreciated, when placed into service, using the straight-line method over the estimated useful lives of the related assets, generally three to twenty years. The Company capitalizes all direct costs and all indirect incrementally identifiable costs related to the design and construction of its Integrated Projects. The Company has elected to expense all costs and filing fees related to obtaining patents (resulting in no related asset being recognized in the Company’s balance sheet) because the Company believes such costs and fees are immaterial (in the context of the Company’s total costs/expenses) and have no direct relationship to the value of the Company’s patents.  The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized based on the amount by which the carrying value of the assets or asset group exceeds its estimated fair value, and is recognized as a loss from operations.
Stock-based compensation:

The Company follows the provisions of Accounting Standards Codification (“ASC”) 718, which generally requires that share-based compensation transactions be accounted and recognized in the statement of income based upon their grant date fair values.

Derivative Financial Instruments:

Pursuant to ASC Topic 815 “Derivatives and Hedging” (“Topic 815”), the Company reviews all financial instruments for the existence of features which may require fair value accounting and a related mark-to-market adjustment at each reporting period end. Once determined, the Company assesses these instruments as derivative liabilities. The fair value of these instruments is adjusted to reflect the fair value at each reporting period end, with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives.
Warrants:
The Company has issued warrants to purchase common shares of the Company. Warrants are valued using a fair value based method, whereby the fair value of the warrant is determined at the warrant issue date using a market-based option valuation model based on factors including an evaluation of the Company’s value as of the date of the issuance, consideration of the Company’s limited liquid resources and business prospects, the market price of the Company’s stock in its mostly inactive public market and the historical valuations and purchases of the Company’s warrants. When warrants are issued in combination with debt or equity securities, the warrants are valued and accounted for based on the relative fair value of the warrants in relation to the total value assigned to the debt or equity securities and warrants combined.
 
11

Fair value measurements:
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The Company uses a fair value hierarchy that has three levels of inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value.
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and
Level 3 – assets and liabilities whose significant value drivers are unobservable.
Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.
The fair value of cash and accounts payable approximates their carrying amounts due to their short-term maturities. The fair value of the loan payable is indeterminable at this time due to the nature of the arrangement with a state agency and the fact that it is in default. The fair value of the redeemable preferred stock approximates its carrying value due to the dividends accrued on the preferred stock which are reflected as part of the redemption value. The fair value of the loan payable – affiliates, deferred compensation and convertible notes payable - affiliates are not practicable to estimate due to the related party nature of the underlying transactions.
Revenue Recognition:
Revenues are generated from the sale of nutrient reduction credits. The Company recognizes revenue from the sale of nutrient credits when there is persuasive evidence that an arrangement exists, when title has passed, the price is fixed or determinable, and collection is reasonably assured.
The Company expects that technology license fees will be generated from the licensing of Bion’s integrated system. The Company anticipates that it will charge its customers a non-refundable up-front technology license fee, which will be recognized over the estimated life of the customer relationship. In addition, any on-going technology license fees will be recognized as earned based upon the performance requirements of the agreement. Annual waste treatment fees will be recognized upon receipt. Revenues, if any, from the Company’s interest in Integrated Projects will be recognized when the entity in which the Integrated Project has been developed recognizes such revenue.
 
12

Loss per share:
Basic loss per share amounts are calculated using the weighted average number of shares of common stock outstanding during the period. Diluted loss per share assumes the conversion, exercise or issuance of all potential common stock instruments, such as options or warrants, unless the effect is to reduce the loss per share or increase the earnings per share.  During the three and nine months ended March 31, 2018 and 2017, the basic and diluted loss per share was the same, as the impact of potential dilutive common shares was anti-dilutive.
The following table represents the warrants, options and convertible securities excluded from the calculation of basic loss per share:

   
March 31,
2018
   
March 31,
2017
 
Warrants
   
12,176,269
     
8,382,831
 
Options
   
6,827,225
     
4,520,037
 
Convertible debt
   
7,337,805
     
8,517,079
 
Convertible preferred stock
   
16,750
     
15,750
 

The following is a reconciliation of the denominators of the basic and diluted loss per share computations for the three and nine months ended March 31, 2018 and 2017:

   
Three months
ended
March 31,
2018
   
Three months
ended
March 31,
2017
   
Nine months
ended
March 31,
2018
   
Nine months
ended
March 31,
2017
 
Shares issued – beginning of period
   
25,011,939
     
23,784,363
     
24,748,213
     
23,573,057
 
Shares held by subsidiaries (Note 7)
   
(704,309
)
   
(704,309
)
   
(704,309
)
   
(704,309
)
Shares outstanding – beginning of period
   
24,307,630
     
23,080,054
     
24,043,904
     
22,868,748
 
Weighted average shares for fully vested  stock bonuses
   
-
     
-
     
-
     
289,051
 
Weighted average shares issued during the  period
   
158,184
     
268,927
     
209,903
     
249,827
 
Basic weighted average shares – end of   period
   
24,465,814
     
23,348,981
     
24,253,807
     
23,407,626
 

 
13


 
Recent Accounting Pronouncements:
The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financial statements properly reflect the change.
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts from Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and earlier application is permitted only as of annual reporting periods beginning after December 15, 2016. Once the Company begins to generate revenue, the Company does not anticipate any material impact on its operations and financial statements.
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter, early application is permitted. The adoption of ASU No. 2014-15 did not have a material impact on the Company’s financial statements.
In May 2017, the FASB issued ASU No. 2017-09 “Scope of Modification Accounting” which clarifies when changes to the terms or conditions of a share-based payment awards must be accounted for as modifications.  The new guidance will reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications.  ASU No. 2017-09 will be applied prospectively to awards modified on or after the adoption date.  The guidance is effective for annual periods, and interim periods within those annual periods beginning after December 15, 2017, with early adoption permitted.  The Company does not anticipate any material impact on the Company’s financial statements upon adoption.
3. PROPERTY AND EQUIPMENT:
Property and equipment consists of the following:
   
March 31,
2017
   
June 30,
2017
 
Machinery and equipment
 
$
2,222,670
   
$
2,222,670
 
Buildings and structures
   
401,470
     
401,470
 
Computers and office equipment
   
171,613
     
171,613
 
     
2,795,753
     
2,795,753
 
Less accumulated depreciation
   
(2,793,869
)
   
(2,792,561
)
   
$
1,884
   
$
3,192
 
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 March 31, 2018, management believes that no additional impairment exists.
Depreciation expense was $436 and $502 for the three months ended March 31, 2018 and 2017, respectively, and $1,308 and $1,507 for the nine months ended March 31, 2018 and 2017, respectively.
 
14

4. LOANS PAYABLE - AFFILIATES:
As of March 31, 2018, Mark A. Smith (“Smith”), the Company’s President, had loaned the Company $18,000 for working capital needs.  During the nine months ended March 31, 2018, Dominic Bassani (“Bassani”), the Company’s Chief Executive Officer was repaid $12,500 for loans he had previously made to the Company.  The loans are non-interest bearing, are non-collateralized and will be repaid when the Board of Directors determines there is adequate cash available.
5. DEFERRED COMPENSATION:
The Company owes deferred compensation to various employees, former employees and consultants totaling $345,929 and $1,962,885 as of March 31, 2018 and 2017, respectively. Included in the deferred compensation balances as of March 31, 2018, are $124,612 and $72,355 owed Bassani, and Smith, respectively, pursuant to extension agreements effective January 1, 2015, whereby unpaid compensation earned after January 1, 2015, accrues interest at 4% per annum and can be converted into shares of the Company’s common stock at the election of the employee during the first five calendar days of any month. The conversion price shall be the average closing price of the Company’s common stock for the last 10 trading days of the immediately preceding month. The deferred compensation owed Bassani, Smith and Edward Schafer (“Schafer”), the Company’s Vice Chairman, as of March 31, 2017 was $873,273, $338,480 and $118,376, respectively. The Company also owes various consultants, pursuant to various agreements, for deferred compensation of $75,478 and $391,272 as of March 31, 2018 and 2017, respectively, with similar conversion terms as those described above for Bassani, Smith and Schafer, with the exception that the interest accrues at 3% per annum. Bassani and Smith have each been granted the right to convert up to $300,000 of deferred compensation balances at a price of $0.75 per share until December 31, 2018 (to be issued pursuant to the 2006 Plan). Smith has the right to convert all or part of his deferred compensation balance into the Company’s securities (to be issued pursuant to the 2006 Plan) “at market” and/or on the same terms as the Company is selling or has sold its securities in its then current (or most recent if there is no current) private placement.  The Company also owes a current employee deferred compensation of $984 which is convertible into 1,893 shares of the Company’s common stock as of March 31, 2018 and, a former employee $72,500, which is not convertible and is non-interest bearing.
During the nine months ended March 31, 2018, Bassani, Smith and Schafer agreed to cancel deferred compensation owed them as of November 30, 2017 of $1,147,210, $416,656 and $121,386, respectively ($1,685,252 in aggregate).  Various consultants also agreed to cancel deferred compensation as of November 30, 2017 totaling $718,580.  The total deferred compensation that was cancelled during the nine months ended March 31, 2018 was $2,403,832, of which, the $1,685,252 owed related parties was recorded as an increase in additional paid in capital, while $718,580 was recorded as a gain from the extinguishment of liabilities. All deferred compensation agreements remain in effect and the Company accrued deferred compensation anew beginning December 1, 2017.
The Company recorded interest expense of $32,299 ($26,084 with related parties) and $39,592 ($30,937 with related parties) for the nine months ended March 31, 2018 and 2017, respectively.
6. LOAN PAYABLE:
PA1, the Company’s wholly-owned subsidiary, owes $8,970,818 as of March 31, 2018 under the terms of the Pennvest Loan related to the construction of the Kreider 1 System including accrued interest and late charges totaling $1,216,818 as of March 31, 2018. The terms of the Pennvest Loan provided for funding of up to $7,754,000 which was to be repaid by interest-only payments for three years, followed by an additional ten-year amortization of principal. The Pennvest Loan accrues interest at 2.547% per annum for years 1 through 5 and 3.184% per annum for years 6 through maturity. The Pennvest Loan required minimum annual principal payments of approximately $2,742,000 in fiscal years 2013 through 2017, and $760,000 in fiscal year 2018, $771,000 in fiscal year 2019, $794,000 in fiscal year 2020, $819,000 in fiscal year 2021, $846,000 in fiscal year 2022 and $1,022,000 thereafter. The Pennvest Loan is collateralized by the Kreider 1 System and by a pledge of all revenues generated from Kreider 1 including, but not limited to, revenues generated from nutrient reduction credit sales and by-product sales. In addition, in consideration for the excess credit risk associated with the project, Pennvest is entitled to participate in the profits from Kreider 1 calculated on a net cash flow basis, as defined.  The Company has incurred interest expense related to the Pennvest Loan of $49,373 for both of the three months ended March 31, 2018 and 2017, respectively.  The Company has incurred interest expense related to the Pennvest Loan of $148,121 and for both of the nine months ended March 31, 2018 and 2017, respectively.  Based on the limited development of the depth and breadth of the Pennsylvania nutrient reduction credit market to date, PA1 commenced negotiations with Pennvest related to forbearance and/or re-structuring the obligations under the Pennvest Loan. In the context of such negotiations, PA1 has elected not to make interest payments to Pennvest on the Pennvest Loan since January 2013. Additionally, the Company has not made any principal payments, which were to begin in fiscal 2013, and, therefore, the Company has classified the Pennvest Loan as a current liability as of March 31, 2018.
 
15

On September 25, 2014, Pennvest exercised its right to declare the Pennvest Loan in default and has accelerated the Pennvest Loan and demanded that PA1 pay $8,137,117 (principal, interest plus late charges) on or before October 24, 2014. PA1 did not make the payment and does not have the resources to make the payment demanded by Pennvest. PA1 has engaged in on/off discussions and negotiations with Pennvest concerning this matter but no such discussions/negotiations are currently active. As of the date of this report, no formal proposals are presently under consideration and only sporadic communication has taken place regarding the matters involved over the past 48 months. It is not possible at this date to predict the outcome of this matter, but the Company believes it is possible that an agreement may yet be reached that will result in a viable loan modification. Subject to the results of the negotiations with Pennvest and pending development of a more robust market for nutrient reductions in Pennsylvania, PA1 and Bion will continue to evaluate various options with regard to Kreider 1 over the next 30-180 days.
In connection with the Pennvest Loan financing documents, the Company provided a ‘technology guaranty’ regarding nutrient reduction performance of Kreider 1 which was structured to expire when Kreider 1’s nutrient reduction performance had been demonstrated. During August 2012 the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider 1 System had surpassed the requisite performance criteria and that the Company’s ‘technology guaranty’ was met. As a result, the Pennvest Loan is solely an obligation of PA1.
7. CONVERTIBLE NOTES PAYABLE - AFFILIATES:
January 2015 Convertible Notes
The January 2015 Convertible Notes accrue interest at 4% per annum and were due and payable on December 31, 2017. Effective June 30, 2017, the maturity dates were extended on the January 2015 Convertible Notes until July 1, 2019.  The January 2015 Convertible Notes (including accrued interest, plus all future deferred compensation), are convertible, at the sole election of the noteholder, into Units consisting of one share of the Company’s common stock and one quarter warrant to purchase a share of the Company’s common stock, at a price of $0.50 per Unit until December 31, 2020. The warrant contained in the Unit shall be exercisable at $1.00 per share until December 31, 2020. The original conversion price of $0.50 per Unit approximated the fair value of the Units at the date of the agreements; therefore no beneficial conversion feature exists. Management evaluated the terms and conditions of the embedded conversion features based on the guidance of ASC 815-15 “Embedded Derivatives” to determine if there was an embedded derivative requiring bifurcation. An embedded derivative instrument (such as a conversion option embedded in the deferred compensation) must be bifurcated from its host instruments and accounted for separately as a derivative instrument only if the “risks and rewards” of the embedded derivative instrument are not “clearly and closely related” to the risks and rewards of the host instrument in which it is embedded. Management concluded that the embedded conversion feature of the deferred compensation was not required to be bifurcated because the conversion feature is clearly and closely related to the host instrument, and because of the Company’s limited trading volume that indicates the feature is not readily convertible to cash in accordance with ASC 815-10, “Derivatives and Hedging”.
As of March 31, 2018, the January 2015 Convertible Note balances, including accrued interest, owed Bassani, Smith and Schafer were $1,654,736, $859,282 and $427,416, respectively.  As of March 31, 2017, the January 2015 Convertible Note balances, including accrued interest, owed Bassani, Smith and Schafer were $1,596,155, $828,861 and $412,284, respectively.  The Company recorded interest expense of $25,677 for both of the three months ended March 31, 2018 and 2017, respectively.   The Company recorded $78,172 for both of the nine months ended March 31, 2018 and 2017, respectively.
September 2015 Convertible Notes
During the year ended June 30, 2016, the Company entered into September 2015 Convertible Notes with Bassani, Schafer and a Shareholder which replaced previously issued promissory notes. The initial principal balances of the September 2015 Convertible Notes were $405,831, $16,382 and $82,921, respectively. The September 2015 Convertible Notes bear interest at 4% per annum, had maturity dates of December 31, 2017 and may be converted at the sole election of the noteholders into restricted common shares of the Company at a conversion price of $0.60 per share. As the conversion price of $0.60 approximated the fair value of the common shares at the date of the September 2015 Convertible Notes, no beneficial conversion feature exists. The balances of the September 2015 Convertible Notes as of March 31, 2018, including accrued interest, are $447,989, $18,061 and $91,417, respectively. The balances of the September 2015 Convertible Notes as of March 31, 2017, including accrued interest, were $431,181, $17,405 and $88,101, respectively. During the nine months ended March 31, 2018, Bassani and the Company agreed to split his original September 2015 Convertible Note into two replacement notes with all the terms remaining the same.  One of the replacement notes’ original principal is $130,000, which is being held by the Company as collateral for a subscription receivable promissory note from Bassani (Note 8).
Effective June 30, 2017, the maturity dates of the September 2015 Convertible Notes due Bassani and Schafer were extended until July 1, 2019 and during the nine months ended March 31, 2018, the maturity date of the note due a Shareholder was extended until July 1, 2019.
The Company recorded interest expense of $5,341 and $4,983 for the three months ended March 31, 2018 and 2017, respectively.   The Company recorded interest expense of $15,743 and $15,168 for the nine months ended March 31, 2018 and 2017, respectively.
 
16

8. STOCKHOLDERS' EQUITY:
Series B Preferred stock:
At July 1, 2014, the Company had 200 shares of Series B redeemable convertible Preferred stock outstanding with a par value of $0.01 per share, convertible at the option of the holder at $2.00 per share, with dividends accrued and payable at 2.5% per quarter. The Series B Preferred stock is mandatorily redeemable at $100 per share by the Company three years after issuance and accordingly was classified as a liability. The 200 shares have reached their maturity date, but due to the cash constraints of the Company have not been redeemed.
During the years ended June 30, 2017 and 2016, the Company declared dividends of $2,000 and $2,000 respectively. During the three and nine months ended March 31, 2018, the Company declared dividends of $500 and $1,500, respectively. At March 31, 2018, accrued dividends payable are $13,500.  The dividends are classified as a component of operations as the Series B Preferred stock is presented as a liability in these financial statements.
Common stock:
Holders of common stock are entitled to one vote per share on all matters to be voted on by common stockholders. In the event of liquidation, dissolution or winding up of the Company, the holders of common stock are entitled to share in all assets remaining after liabilities have been paid in full or set aside and the rights of any outstanding preferred stock have been satisfied. Common stock has no preemptive, redemption or conversion rights. The rights of holders of common stock are subject to, and may be adversely affected by, the rights of the holders of any outstanding series of preferred stock or any series of preferred stock the Company may designate in the future.
Centerpoint holds 704,309 shares of the Company’s common stock. These shares of the Company’s common stock held by Centerpoint are for the benefit of its shareholders without any beneficial interest.
During the nine months ended March 31, 2018, the Company issued 18,849 shares of the Company’s common stock at prices ranging from $0.66 to $0.91 per share for services valued at $14,631, in the aggregate, to a consultant and an employee.
During the nine months ended March 31, 2018, the Company entered into subscription agreements to sell units for $0.75 per unit, with each unit consisting of one share of the Company’s restricted common stock and one warrant to purchase one half of a share of the Company’s restricted common stock for $1.00 per share with expiry dates of June 30, 2018 and pursuant thereto, the Company issued 267,331 units for total proceeds of $200,497, net proceeds of $185,622 after commissions.  The Company allocated the proceeds from the 267,331 shares and the 133,666 warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be $0.05 per warrant. As a result, $6,152 was allocated to the warrants and $194,345 was allocated to the shares, and both were recorded as additional paid in capital.
During the nine months ended March 31, 2018, the Company entered into subscription agreements to sell units for $0.50 per unit, with each unit consisting of one share of the Company’s restricted common stock and one warrant to purchase one half of a share of the Company’s restricted common stock for $0.75 per share with expiry dates of September 30, 2018 and pursuant thereto, the Company issued 213,000 units for total proceeds of $106,500.  The Company allocated the proceeds from the 213,000 shares and the 106,500 warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be $0.05 per warrant. As a result, $3,140 was allocated to the warrants and $103,360 was allocated to the shares, and both were recorded as additional paid in capital.
During the nine months ended March 31, 2018, the Company entered into subscription agreements to exercise certain warrants with expiry dates on or before March 31, 2018 and June 30, 2018, into restricted shares of the Company’s common stock at a reduced exercise price of $0.50 for the period from March 1, 2018 to March 31, 2018.  At March 31, 2018 the Company exercised its right to extend the offering an additional 15 days to April 15, 2018 and therefore any warrants which would have expired on March 31, 2018 were automatically extended to April 15, 2018.  As the $0.50 exercise price was a reduction from the original exercise price of $0.75, and due to the limited time in which the warrant holders had to subscribe, the reduction in the offering price was accounted for as an inducement and a conversion inducement of $8,000 was recorded.  As a result of the offering, 80,001 warrants were exercised and 80,001 shares of the Company’s restricted common stock were issued resulting in cash proceeds of $40,001 for the nine months ended March 31, 2018.
 
17

Warrants:
As of March 31, 2018, the Company had approximately 12.2 million warrants outstanding, with exercise prices from $0.75 to $3.00 and expiring on various dates through December 31, 2022.
The weighted-average exercise price for the outstanding warrants is $1.07, and the weighted-average remaining contractual life as of March 31, 2018 is 3.6 years.
During the nine months ended March 31, 2018, warrants to purchase 322,110 shares of common stock of the Company at prices between $1.00 and $2.50 per share expired.
During the nine months ended March 31, 2018, the Company entered into subscription agreements to sell units for $0.75 per unit, with each unit consisting of one share of the Company’s restricted common stock and one warrant to purchase one half of a share of the Company’s restricted common stock for $1.00 per share with expiry dates of June 30, 2018 and pursuant thereto, the Company issued 267,331 units for total proceeds of $200,497, net proceeds of $185,622 after commissions.  The Company allocated the proceeds from the 267,331 shares and the 133,666 warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be $0.05 per warrant. As a result, $6,152 was allocated to the warrants and $194,345 was allocated to the shares, and both were recorded as additional paid in capital.  The Company also issued 89,485 warrants to purchase 89,485 shares of the Company’s restricted common shares with an exercise price of $1.00 per share exercisable until June 30, 2019 as commissions related to the above sale of Units.
During the nine months ended March 31, 2018, the Company entered into subscription agreements to sell units for $0.50 per unit, with each unit consisting of one share of the Company’s restricted common stock and one warrant to purchase one half of a share of the Company’s restricted common stock for $0.75 per share with expiry dates of September 30, 2018 and pursuant thereto, the Company issued 213,000 units for total proceeds of $106,500.  The Company allocated the proceeds from the 213,000 shares and the 106,500 warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be $0.05 per warrant. As a result, $3,140 was allocated to the warrants and $103,360 was allocated to the shares, and both were recorded as additional paid in capital.
During the year ended June 30, 2017, the Company received an interest bearing, secured promissory note for $40,000 from Bassani as consideration to purchase warrants to purchase 800,000 shares of the Company’s restricted common stock, which warrants are exercisable at $1.00 and have expiry dates of December 31, 2021 (“Bassani Warrant”).  The promissory note bears interest at 4% per annum, was secured by a perfected security interest in the Bassani Warrant, and was payable on November 15, 2017.  Effective November 7, 2017 an addendum to the promissory note changed the principal of the note to $41,513 (the original principal of $40,000 plus accrued interest of $1,513), changed the maturity date of the note to July 1, 2019 and the collateral was changed to Replacement Note 1 of Bassani’s 2015 Convertible Note (Note 7) with a balance at November 7, 2017 of $130,000 which will be held by the Company.
During the nine months ended March 31, 2018, the Company received an interest bearing, secured promissory note for $88,250 from Bassani as consideration to purchase warrants to purchase 1,765,000 shares of the Company’s restricted common stock, which warrants are exercisable at $0.75 and have expiry dates of December 31, 2020.  The warrants have a 90% exercise bonus (Note 9).  The promissory note bears interest at 4% per annum, is secured by Bassani’s Replacement Note 1 of Bassani’s 2015 Convertible Note (Note 7) with a balance at November 7, 2017 of $130,000, which will be held by the Company.  The secured promissory note is payable on July 1, 2020.
During the nine months ended March 31, 2018, the Company received two interest bearing, secured promissory notes with an aggregate principal amount of $46,400 from two former employees as consideration to purchase warrants to purchase 928,000 shares of the Company’s restricted common stock, which warrants are exercisable at $0.75 and have expiry dates of December 31, 2020.  These warrants have a 90% exercise bonus (Note 9).  The promissory notes bear interest at 4% per annum, are secured by a perfected security interest in the warrants, and are payable on July 1, 2020.
During the nine months ended March 31, 2018, the Company issued 670,000 warrants to Smith and 247,000 warrants to a former employee and a consultant to purchase in aggregate 917,000 shares of the Company’s restricted common stock, which warrants are exercisable at $0.75 per share and have expiry dates of December 31, 2020.  The warrants were in exchange for services expensed at $45,850, in aggregate ($33,500 to Smith).   These warrants have a 90% exercise bonus (Note 9).  The Company also issued 50,000 warrants to two consultants for services valued at $2,500, exercisable at $0.75 per share which expiry dates ranging from October 1, 2020 to December 31, 2023.
During the nine months ended March 31, 2018, the Company agreed to extend the expiration dates of 5,773,706 warrants owned by certain individuals (including 5,329,869 owned by Bassani, 91,371 owned by Smith and 23,934 owned by Schafer) which were scheduled to expire at various dates ranging from December 31, 2017 through December 31, 2021.  The Company recorded non-cash compensation expense related to the modification of the warrants of $296,852 ($265,353, $7,310 and $1,197 for Bassani, Smith and Schafer, respectively).
 
18

Stock options:
The Company’s 2006 Consolidated Incentive Plan, as amended (the “2006 Plan”), provides for the issuance of options (and/or other securities) to purchase up to 30,000,000 shares of the Company’s common stock. Terms of exercise and expiration of options/securities granted under the 2006 Plan may be established at the discretion of the Board of Directors, but no option may be exercisable for more than ten years.
During the year ended June 30, 2017, the Company approved the issuance of 100,000 shares in stock bonuses to an employee and a consultant with various vesting dates from January 15, 2018 through January 15, 2020.  In February 2018, the Board of Directors cancelled the stock bonuses previously approved.  The Company recorded $22,321 and $14,784 of non-cash compensation related to the stock bonuses for the nine months ended March 31, 2018 and 2017, respectively.
During the nine months ended March 31, 2018, the Company approved the modification of existing stock options held by certain employees and consultants, which extended certain expiration dates.  The modifications resulted in incremental non-cash compensation of $349,656 (including $119,350 and $68,000 for Bassani and Schafer, respectively).
The Company recorded compensation expense related to employee stock options of $1,269,700 and $6,134 for the three months ended March 31, 2018 and 2017, respectively, and $1,369,350 and $135,950 for the nine months ended March 31, 2018 and 2017, respectively. The Company granted 2,647,500 and 294,500 options during the nine months ended March 31, 2018 and 2017, respectively.
The fair value of the options granted during the nine months ended March 31, 2018 and 2017 were estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions:
   
Weighted
Average,
March 31,
2018
 
Range,
March 31,
2018
 
Weighted
Average,
March 31,
2017
 
Range,
March 31,
2017
Volatility
 
74%
68%-75%
 
79%
78%-86%
Dividend yield
 
-
-
 
-
-
Risk-free interest rate
 
2.44%
1.75%-2.64%
 
1.14%
0.82% -1.17%
Expected term (years)
 
5
3-6
 
4
3-4
The expected volatility was based on the historical price volatility of the Company’s common stock. The dividend yield represents the Company’s anticipated cash dividend on common stock over the expected term of the stock options. The U.S. Treasury bill rate for the expected term of the stock options was utilized to determine the risk-free interest rate. The expected term of stock options represents the period of time the stock options granted are expected to be outstanding based upon management’s estimates.
A summary of option activity under the 2006 Plan for the nine months ended March 31, 2018 is as follows:
   
Options
   
Weighted-
Average
Exercise
Price
   
Weighted-
Average
Remaining
Contractual
Life
   
Aggregate
Intrinsic
Value
 
Outstanding at July 1, 2017
   
4,545,037
   
 
$1.42
     
2.9
   
$
176,575
 
  Granted
   
2,647,500
     
 0.76
                 
  Exercised
   
-
     
-
                 
  Forfeited
   
-
     
-
                 
  Expired
   
(365,312
)
   
-
                 
Outstanding at March 31, 2018
   
6,827,225
   
 
$1.11
     
4.0
   
$
-
 
Exercisable at March 31, 2018
   
6,827,225
   
 
$1.11
     
4.0
   
$
-
 

 

 
19

The following table presents information relating to nonvested stock options as of March 31, 2018:

   
Options
   
Weighted Average
Grant-Date Fair
Value
 
Nonvested at July 1, 2017
   
25,000
   
$
0.46
 
  Granted
   
2,647,500
     
0.52
 
  Vested
   
(2,672,500
)
   
0.51
 
Nonvested at March 31, 2018
   
-
   
$
-
 

The total fair value of stock options that vested during the nine months ended March 31, 2018 and 2017 was $1,376,250 and $151,770 respectively. As of March 31, 2018, the Company had no unrecognized compensation cost related to stock options.

Stock-based employee compensation charges in operating expenses in the Company’s financial statements for the three and nine months ended March 31, 2018 and 2017 are as follows:

   
Three
months
ended
March 31,
2018
   
Three
months
ended
March 31,
2017
   
Nine months
ended
March 31,
2018
   
Nine months
ended
March 31,
2017
 
General and administrative:
                       
  Fair value of stock/warrant bonuses expensed  
 
$
1,500
   
$
-
   
$
8,723
   
$
6,830
 
  Change in fair value from modification of option terms
   
-
     
-
     
243,761
     
166,031
 
  Change in fair value from modification of warrant terms
   
7,091
     
-
     
163,956
     
-
 
  Fair value of stock options expensed
   
682,485
     
6,134
     
782,135
     
112,699
 
     Total
 
$
691,076
   
$
6,134
   
$
1,198,575
   
$
285,560
 
                                 
Research and development:
                               
  Fair value of stock bonus expensed  
 
$
-
   
$
-
   
$
15,098
   
$
7,954
 
Change in fair value from modification of option terms
   
-
     
-
     
105,895
     
11,440
 
Change in fair value from modification of warrant terms
   
219
     
-
     
132,896
     
-
 
  Fair value of stock options expensed
   
587,215
     
-
     
587,215
     
23,251
 
     Total
 
$
587,434
   
$
-
   
$
841,104
   
$
42,645
 



20

9. COMMITMENTS AND CONTINGENCIES:
Employment and consulting agreements:
Smith has held the positions of Director, President and General Counsel of Company and its subsidiaries under various agreements and terms since March 2003.  On February 10, 2015, the Company executed an Extension Agreement with Smith pursuant to which Smith extended his employment with the Company to December 31, 2015 (with the Company having an option to extend his employment an additional six months). As part of the Extension Agreement, the balance of Smith’s existing convertible note payable as of December 31, 2014, adjusted for conversions subsequent to that date, was replaced with a new convertible note with an initial principal amount of $760,520 with terms that i) materially reduce the interest rate by 50% (from 8% to 4%), ii) increases the conversion price by 11% (from $0.45 to $0.50), iii) sets the conversion price at a fixed price so there can be no further reductions, iv) reduces the number of warrants received on conversion by 75% (from 1 warrant per unit to 1/4 per unit) and v) extends the maturity date to December 31, 2017. Additionally, pursuant to the Extension Agreement, Smith: i) will continue to defer his cash compensation ($18,000 per month) until the Board of Directors re-instates cash payments to all employees and consultants who are deferring their compensation, ii) cancelled 150,000 contingent stock bonuses previously granted to him by the Company, iii) has been granted 150,000 new options which vested immediately and iv) outstanding options and warrants owned by Smith (and his donees) have been extended and had the exercise prices reduced to $1.50 (if the exercise price exceeded $1.50). In October 2015, the Company executed an Extension Agreement (“FY2016 Extension Agreement”) with Smith pursuant to which Smith extended his employment with the Company to June 30, 2016 (with Company having an option to extend his employment an additional six months). As part of the FY2016 Extension Agreement, Smith: i) will continue to defer his cash compensation ($19,000 per month) until the Board of Directors re-instates cash payments, ii) has been granted 100,000 new options which vested immediately, and iii) has been granted 75,000 shares of common stock as an extension bonus which are immediately vested and were issued on January 5, 2016. As of July 1, 2016, Smith is working under a month to month contract extension until a longer term agreement is reached.  On October 10, 2016, the Company approved a month to month contract extension with Smith which includes provisions for i)   issuance of 25,000 bonus shares of the Company’s common shares on January 15, 2017 (which were subsequently cancelled), ii) grant of 75,000 options to purchase shares of the Company’s common shares at $0.90 per share with expiry date of December 31, 2020, which options are subject to the exercise/extension bonus, iii) a monthly deferred salary of $18,000 effective October 1, 2016, iv) the right to convert up to $125,000 of his deferred compensation, at his sole election, at $0.75 per share, until March 15, 2018 (which  was expanded on April 27, 2017 to the right to convert up to $300,000 of his deferred compensation, at his sole election, at $0.75 per share, until December 31, 2018), and v) the right to convert his deferred compensation in whole or in part, at his sole election, at any time in any amount at “market” or into securities sold in the Company’s current/most recent private offering at the price of such offering to third parties.
Since March 31, 2005, the Company has had various agreements with Brightcap and/or Bassani, through which the services of Bassani are provided. The Board appointed Bassani as the Company's CEO effective May 13, 2011. During the fiscal years 2012 and 2013, Bassani entered into extension agreements whereby he was awarded fully vested stock grants totaling 600,000 shares, 500,000 shares of which were to be issued January 15, 2016 and 100,000 shares were to be issued January 15, 2017. The stock grants were expensed in the years they were awarded as they are fully vested. The stock grants were cancelled in October 2016.  On February 10, 2015, the Company executed an Extension Agreement with Bassani pursuant to which Bassani extended the term of his service to the Company to December 31, 2017, (with the Company having an option to extend the term an additional six months.) As part of the agreement, the Company’s then existing loan payable, deferred compensation and convertible note payable to Bassani, were restructured into two promissory notes as follows: a) The sum of the cash loaned by Bassani to the Company of $279,000 together with $116,277 of unreimbursed expenses through December 31, 2014, were placed into a new promissory note with initial principal of $395,277 which was due and payable on December 31, 2015 and now has been replaced with a September 2015 Convertible Note (Note 7). In connection with these sums and the new promissory note, Bassani was issued warrants to purchase 592,916 shares of the Company’s common stock at a price of $1.00 until December 31, 2020; and b) the remaining balances of the Company’s accrued obligations to Bassani ($1,464,545) were replaced with a new convertible promissory note with terms that compared with the largest prior convertible note obligation to Bassani: i) materially reduce the interest rate by 50% (from 8% to 4%), ii) increase the conversion price by 11% (from $0.45 to $0.50), iii) sets the conversion price at a fixed price so there can be no further reductions, iv) reduces the number of warrants received on conversion by 75% (from 1 warrant per unit to 1/4 per unit) and v) extends the maturity date to December 31, 2017 (Note 7). Additionally, pursuant to the Extension Agreement, Bassani i) will continue to defer his cash compensation ($31,000 per month) until the Board of Directors re-instates cash payments to all employees and consultants who are deferring their compensation, ii) cancelled 250,000 contingent stock bonuses previously granted to him by the Company, iii) has been granted 450,000 new options which vested immediately and iv) outstanding options and warrants owned by Bassani (and his donees) have been extended and had the exercise prices reduced to $1.50 (if the exercise price exceeded $1.50).During October 2016 Bassani was granted the right to convert up to $125,000 of his deferred compensation, at his sole election, at $0.75 per share, until March 15, 2018 (which  was expanded on April 27, 2017 to the right to convert up to $300,000 of his deferred compensation, at his sole election, at $0.75 per share, until December 31, 2018).
 
21

Execution/exercise bonuses:
As part of agreements the Company entered into with Bassani and Smith effective May 15, 2013, they were each granted the following: a) a 50% execution/exercise bonus which shall be applied upon the effective date of the notice of intent to exercise (for options and warrants) or issuance event, as applicable, of any currently outstanding and/or subsequently acquired options, warrants and/or contingent stock bonuses owned by each (and/or their donees) as follows: i) in the case of exercise by payment of cash, the bonus shall take the form of reduction of the exercise price; ii) in the case of cashless exercise, the bonus shall be applied to reduce the exercise price prior to the cashless exercise calculations; and iii) with regard to contingent stock bonuses, issuance shall be triggered upon the Company’s common stock reaching a closing price equal to 50% of currently specified price; and b) the right to extend the exercise period of all or part of the applicable options and warrants for up to five years (one year at a time) by annual payments of $.05 per option or warrant to the Company on or before a date during the three months prior to expiration of the exercise period at least three business days before the end of the expiration period. Effective January 1, 2016 such annual payments to extend warrant exercise periods have been reduced to $.01 per option or warrant.
During the year ended June 30, 2014, the Company extended 50% execution/exercise bonuses with the same terms as described above to Schafer and to Jon Northrop (“Northrop”), the Company’s other board member.
During the nine months ended March 31, 2018, the Company extended 50% execution/exercise bonuses with the same terms as described above to all options and warrants issued prior to November 7, 2017, to an employee and two former employees who are now consultants.
During the nine months ended March 31, 2018, the Company increased the above 50% execution/exercise bonus on all outstanding options and warrants owned or acquired in the future by Bassani, Smith and Schafer to 75% (to the extent such existing exercise bonus is less than 75%).
During the nine months ended March 31, 2017, the Company issued 3,460,000 warrants (1,765,000 and 670,000 to Bassani and Smith, respectively) and 190,000 options to Schafer that have a 90% execution/exercise bonus attached.
As of March 31, 2018, the execution/exercise bonuses ranging from 50-90% were applicable to 6,634,600 of the Company’s outstanding options and 11,478,555 of the Company’s outstanding warrants.
Litigation:
On September 25, 2014, Pennvest exercised its right to declare the Pennvest Loan in default and has accelerated the Pennvest Loan and has demanded that PA1 pay $8,137,117 (principal, interest plus late charges) on or before October 24, 2014. PA1 did not make the payment and does not have the resources to make the payment demanded by Pennvest. During August 2012, the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider 1 system met the ‘technology guaranty’ standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan is now solely an obligation of PA1. No litigation has commenced related to this matter but such litigation is likely if negotiations do not produce a resolution (Notes 1 and Note 6).
The Company currently is not involved in any other material litigation.
 
22

10. SUBSEQUENT EVENTS:
The Company has evaluated events that occurred subsequent to March 31, 2018 for recognition and disclosure in the financial statements and notes to the financial statements.
From April 1, 2018 through May 8, 2018, the Company has issued 3,750 shares of the Company’s common shares to an employee for services valued at approximately $2,000.
From April 1, 2018 through May 8, 2018 the Company has entered into subscription agreements to sell 71,000 Units of its securities at $0.50 per Unit for aggregate consideration of approximately $36,000.  Each Unit consists of one share of common stock and a callable warrant to purchase ½ share of the Company’s common shares at $0.75 per share until September 30, 2018.
From April 1, 2018 through May 8, 2018, the Company entered into subscription agreements to exercise 10,000 warrants into restricted shares of the Company’s common stock at a reduced exercise price of $0.50.
From April 1, 2018 through May 8, 2018, a consultant has elected to convert deferred compensation of approximately $60,000 under terms similar to the current Unit offering resulting in the issuance of approximately 120,000 shares of the Company’s common stock and approximately 60,000 warrants.
From April 1, 2018 through May 8, 2018, Smith has elected to convert his loan payable – affiliate balance of $18,000, accounts payable for expenses of approximately $65,540 and $70,000 of deferred compensation into shares of the Company’s common stock and warrants under terms similar to the current Unit offering.  Smith’s conversion results in the issuance of 307,080 shares of the Company’s common shares stock and the issuance of 153,540 warrants.



23



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Statements made in this Form 10-Q that are not historical or current facts, which represent the Company's expectations or beliefs including, but not limited to, statements concerning the Company's operations, performance, financial condition, business strategies, and other information, involve substantial risks and uncertainties.  The Company's actual results of operations, most of which are beyond the Company's control, could differ materially.  These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," anticipate," "estimate," or "continue" or the negative thereof.  We wish to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made.  Any forward looking statements represent management's best judgment as to what may occur in the future.  However, forward looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected.

These factors include adverse economic conditions, entry of new and stronger competitors, inadequate capital, unexpected costs, failure (or delay)  to gain product or regulatory approvals in the United States (or particular states) or foreign countries and failure to capitalize upon access to new markets.  Additional risks and uncertainties that may affect forward looking statements about Bion's business and prospects include the possibility that markets for nutrient reduction credits (discussed below) and/or other ways to monetize nutrient reductions will be slow to develop (or not develop at all), the existing default by PA1 on its loan secured by the Kreider 1 system, the possibility that a competitor will develop a more comprehensive or less expensive environmental solution, delays in market awareness of Bion and our Systems, uncertainties and costs related to research and development efforts to update and improve Bion’s technologies and applications thereof, and/or  delays in Bion's development of Projects and failure of marketing strategies, each of which could have both immediate and long term material adverse effects by placing us behind our competitors and requiring expenditures of our limited resources. Bion disclaims any obligation subsequently to revise any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements filed herein with the Company’s Form 10-K for the year ended June 30, 2017.

BUSINESS OVERVIEW
From 2014 through the current 2018 fiscal year, the Company has focused its research and development activities toward development of our 3G Tech, augmenting the basic ‘separate and aggregate’ approach of its technology platform to provide additional flexibility and to increase recovery of nutrient by-products (in organic and non-organic forms) and renewable energy production (either/both biogas and/or renewable electricity), thereby increasing potential related revenue streams and reducing dependence of its future projects on the monetization of nutrient reductions (which still remain a very important part of project revenue streams). This research and development effort also involves ongoing review of potential “add-ons” and applications to our technology platform for use in different regulatory and/or climate environments. These research and development activities continued through the 2017 fiscal year with increased focus on recovery of marketable ‘byproducts’ (including nutrients and renewable natural gas) and completion of development of Bion’s 3G Tech and technology platform. We believe such activities will continue at least through the 2018 calendar year (and likely longer), subject to availability of adequate financing for the Company’s operations, of which there is no assurance.  Such activities may include the design and construction of an initial, commercial-scale module utilizing our 3G Tech to assist in optimization efforts before construction of the full Kreider 2 project (see below).
Bion’s 3G Tech and technology platform are designed to capture four revenue streams under one umbrella. The revenue streams are: a)renewable energy and associated greenhouse gas credits including US Renewable Fuel Standard (RFS) and Low Carbon Fuel Standard (LCFS),b)verified nutrient credits that can be used as qualified offsets to the federal Chesapeake Bay mandate, c)co-products consisting of high value fertilizer that Bion believes will achieve certification for use in organic production for human consumption, and  d) an environmentally sustainable certification that will be incorporated into a “brand” that can address the consumer concerns regarding food safety and sustainability (based on incorporation of all of the third party verified data for greenhouse gas reductions, nutrient reductions and fertilizer products into a digital register).
 
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The “branding” opportunity will offer large scale producer / processor / distributors of livestock products the opportunity to identify their products in the marketplace and therefore creates the opportunity to achieve “premium pricing” by addressing consumer concerns related to safety and sustainability as demonstrated by the premiums achieved by organic producers.
Operational results from the initial commercial system (utilizing our 2G Tech) confirmed the ability of Bion’s technologies to meet its nutrient reduction goals at commercial scale for an extended period of operation. Bion’s 2G Tech platform (and the new variations under development) center on its patented and proprietary processes that separate and aggregate the various assets in the CAFO waste stream so they become benign, stable and/or transportable. Bion systems can: a) remove up to 95% of the nutrients (primarily nitrogen and phosphorus) in the effluent, b) reduce greenhouse gases by 90% (or more) including elimination of virtually all ammonia emissions, c) while materially reducing pathogens, antibiotics and hormones in the livestock waste stream. In addition to capturing a portion of valuable nutrients for reuse (in organic and/or non-organic forms), Bion’s 2nd generation technology platform also recovers cellulosic biomass which can be used to generate renewable energy from the waste stream in a process more efficient than other technologies that seek to exploit this CAFO waste stream. Our core technology and its primary CAFO applications are now proven in commercial operations. It has been accepted by the Environmental Protection Agency (“EPA”) and other regulatory agencies and it is protected by Bion’s portfolio of U.S. and international patents (both issued and applied for). Currently, our research and development activities are underway to improve, update and move toward commercialization of our 3G Tech systems (which is ready to be implemented) to meet the needs of CAFOs in various geographic and climate areas with nutrient release constraints and to increase the recovery and generation of valuable by-products while adding the capability to treat dry (poultry) waste streams in addition to wet manure streams at lower capital costs and operating costs
Currently, Bion is focused on using applications of its patented and proprietary waste management technologies and technology platform to pursue three main business opportunities: 1) installation of Bion systems ( some of which may  generate verified nutrient reduction credits and revenues from the production of renewable energy and byproducts) to retrofit and environmentally remediate existing CAFOs (“Retrofits”) in selected markets where: a) government policy supports such efforts (such as the Chesapeake Bay watershed, some Great Lakes Basin states, and/or other states and watersheds facing EPA ‘total maximum daily load’ (“TMDL”) issues, and/or b) where CAFO’s need our technology to obtain permits to expand or develop without negative environmental consequences; 2) development of new state-of-the-art large-scale waste treatment facilities in conjunction with large CAFO’s in strategic locations (“Projects”) ( some of these may be Integrated Projects) with multiple revenue streams, and 3) licensing and/or joint venturing of Bion’s technology and applications (primarily) outside North America. The opportunities described at 1) and 2) above each require substantial political and regulatory (federal, state and local) efforts on the part of the Company and a substantial part of Bion’s efforts are focused on such political and regulatory matters. Bion intends to pursue international opportunities primarily through the use of consultants with existing relationships in target locations. The most intense focus is currently on the requirements for the clean-up of the Chesapeake Bay faced by the Commonwealth of Pennsylvania and the potential use of Bion’s technology and technology platform on CAFOs to remediate ammonia release (and re-deposition to the ground and water) and as an alternative to what the Company believes is far more expensive nutrient removal downstream in storm water and other projects.
During 2008 the Company commenced actively pursuing the opportunity presented by environmental retrofit and remediation of the waste streams of existing CAFOs which effort has met with very limited success to date. The first commercial activity in this area is represented by our agreement with Kreider Farms (“KF”), pursuant to which the Kreider 1 system to treat KF's dairy waste streams to reduce nutrient releases to the environment while generating marketable nutrient credits and renewable energy was designed, constructed and entered  full-scale operation during 2011. On January 26, 2009 the Board of the Pennsylvania Infrastructure Investment Authority (“Pennvest”) approved a $7.75 million loan to Bion PA 1, LLC (“PA1”), a wholly-owned subsidiary of the Company, for the initial Kreider Farms project (“Kreider 1 System”). After substantial unanticipated delays, on August 12, 2010 PA1 received a permit for construction of the Kreider 1 System.  Construction activities commenced during November 2010.  The closing/settlement of the Pennvest Loan took place on November 3, 2010.  PA1 finished the construction of the Kreider 1 System and entered a period of system ‘operational shakedown’ during May 2011.  The Kreider 1 System reached full, stabilized operation by the end of the 2012 fiscal year.  During 2011 the PADEP re-certified the nutrient credits for this project.  The PADEP issued final permits for the Kreider 1 System (including the credit verification plan) on August 1, 2012 on which date the Company deemed that the Kreider 1 System was ‘placed in service’.  As a result, PA1 commenced generating nutrient reduction credits for potential sale while continuing to utilize the Kreider 1 System to test improvements and add-ons. However, to date liquidity in the Pennsylvania nutrient credit market has been slow to develop significant breadth and depth,  which limited liquidity/depth has negatively impacted Bion’s business plans and has resulted in challenges to monetizing the nutrient reductions created by PA1’s existing Kreider 1 project and Bion’s other proposed projects. These difficulties have prevented PA1 from generating any material revenues from the Kreider 1 project to date and raise significant questions as to when, if ever, PA1 will be able to generate such revenues from the Kreider 1 System.  PA1 has had sporadic discussions/negotiations with Pennvest related to forbearance and/or re-structuring its obligations pursuant to the Pennvest Loan for more than three years. In the context of such discussions/negotiations, PA1 elected not to make interest payments to Pennvest on the Pennvest Loan since January 2013.  Additionally, the Company has not made any principal payments, which were to begin in fiscal 2013, and, therefore, the Company has classified the Pennvest Loan as a current liability as of March 31, 2018.  Due to the failure of the PA nutrient reduction credit market to develop, the Company determined that the carrying amount of the 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, therefore, PA1 and the Company recorded impairments related to the value of the Kreider 1 assets of $1,750,000 and $2,000,000 at June 30, 2015 and June 30, 2014, respectively.  During the 2016 fiscal year, PA1 and the Company recorded an impairment of $1,684,562 to the value of the Kreider 1 assets which reduced the value on the Company’s books to zero.  This impairment reflects management’s judgment that the salvage value of the Kreider 1 assets roughly equals PA1’s contractual obligations related to the Kreider 1 System, including expenses related to decommissioning of the Kreider 1 System, costs associated with needed capital upgrade expenses, and re-certification/ permitting amendments. See “Impairment loss on property and equipment” below.
 
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On September 25, 2014, Pennvest exercised its right to declare the Pennvest Loan in default and accelerated the Pennvest Loan and demanded that PA1 pay $8,137,117 (principal, interest plus late charges) on or before October 24, 2014. PA1 did not make the payment and does not have the resources to make the payments demanded by Pennvest. PA1 has commenced discussions and negotiations with Pennvest concerning this matter but Pennvest has rejected PA1’s proposal made during the fall of 2014.  As of the date of this report, no formal proposals are currently under consideration and only sporadic communication has taken place regarding the matters involved over the last 36 months.  It is not possible at this date to predict the outcome of this matter, but the Company believes that a loan modification agreement (coupled with an agreement regarding an update and re-start of full operations of KF1) may be reached in the future if/when a more robust market for nutrient reductions develops in PA, of which there is no assurance. PA1 and Bion will continue to evaluate various options with regard to Kreider 1 over the next 30-180 days.

The economics (potential revenues, profitability and continued operation) of the Kreider 1 System are based almost entirely on the long term sale of nutrient (nitrogen and/or phosphorus) reduction credits to meet the requirements of the Chesapeake Bay environmental clean-up. See below for further discussion.
During August 2012, the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider 1 System met the ‘technology guaranty’ standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan has been (and is now) solely an obligation of PA1 since that date.
The Company is currently operating the Kreider 1 System in a limited manner pending development of a more robust market for its nutrient reductions.
Bion continues its pre-develop work related to a waste treatment/renewable energy production facility to treat the waste from KF’s approximately 5+ million chickens (planned to expand to approximately 9-10 million)(and potentially other poultry operations and/or other waste streams)('Kreider Renewable Energy Facility' or ‘ Kreider 2 Project’).  On May 5, 2016, the Company executed a stand-alone joint venture agreement with Kreider Farms covering all matters related to development and operation of Kreider 2 system to treat the waste streams from Kreider’s poultry facilities in Bion PA2 LLC (“PA2”).  During May 2011 the PADEP certified a smaller version of the Kreider 2 Project for 559,457 nutrient credits under the old EPA’s Chesapeake Bay model.  The Company anticipates that when designs are finalized, the Kreider 2 Project will be re-certified for between 1.5-2 million nutrient reduction credits (for treatment of the waste stream from Kreider’s poultry) pursuant to the Company’s subsequent amended application during the 2019 fiscal year pursuant to the amended EPA Chesapeake Bay model and agreements between the EPA and PA. Note that this Project may be expanded in the future to treat wastes from other local and regional CAFOs (poultry and/or dairy) and/or additional Kreider poultry expansion (some of which may not qualify for nutrient reduction credits). The review process to clarify certain issues related to credit calculation and verification commenced during 2014 but has been placed on hold while certain matters are resolved between the EPA and PA and pending development of a robust market for nutrient reductions in PA. The Company anticipates it will submit an amended application once these matters are clear. Design and engineering work for this facility, which will probably be the first to utilize Bion’s 3G Tech,  have not commenced, and the Company does not yet have financing in place for the Kreider 2 Project. This opportunity is being pursued through PA2.  If there are positive developments related to the market for nutrient reductions in PA, of which there is no assurance, the Company intends to pursue development, design and construction of the Kreider 2 Project with a goal of achieving operational status for its initial modules during the 2019 fiscal year, and hopes to enter into agreements related to sales of the nutrient reduction credits for future delivery (under long term contracts) during 2018 subject to verification by the PADEP based on operating data from the Kreider 2 Project. The economics (potential revenues and profitability) of the Kreider 2 Project, despite its use of Bion’s 3G Tech for increased recovery of marketable by-products, are based in material part the long term sale of nutrient (nitrogen and/or phosphorus) reduction credits to meet the requirements of the Chesapeake Bay environmental clean-up.  However, liquidity in the PA nutrient credit market has been slow to develop significant breadth and depth, which lack of liquidity has negatively impacted Bion’s business plans and has resulted in challenges to monetizing the nutrient reduction credits generated by PA1’s existing Kreider 1 project and will most likely delay PA2’s Kreider 2 Project and other proposed projects in PA.

Note that while Bion believes that the Kreider 1 System, the Kreider 2 Project and/or subsequent Bion Projects will eventually generate revenue from the sale of: a) nutrient reductions (credits or in other form), b) renewable energy (and related credits), c) sales of fertilizer products, and/or d) potentially, in time, credits for the reduction of greenhouse gas emissions, plus d) license fees related to a ‘sustainable brand’.  We believe that the potential market is very large, but it is not possible to predict the exact timing and/or magnitude of these potential markets at this time.

A substantial portion of our activities involve public policy initiatives (by the Company and other stakeholders) to encourage the establishment of appropriate public policies and regulations (at federal, regional, state and local levels) to facilitate cost effective environmental clean-up and, thereby, support our business activities. Bion has been joined by National Milk Producers Federation, Land O’Lakes, JBS and other national livestock interests to support changes to our nation’s clean water strategy that will allow states to acquire low-cost nutrient reductions through a competitive procurement process, in a similar manner to how government entities now acquire many other goods and services on behalf of the taxpayer. As developing markets for nutrient reductions become fully-established, Bion anticipates a robust business opportunity to retrofit existing CAFOs and develop Projects, based primarily on the sale of nutrient credits that provide cost-effective alternatives to today’s high-cost and failing clean water strategy.
 
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To date the market for long-term nutrient reduction credits in Pennsylvania (‘PA’) has been very slow to develop and the Company’s activities have been negatively affected by such lack of development.  However, Bion is confident that once these markets are established, the credits it produces will be competitive in the credit trading markets, based on its cost to remove nitrogen from the livestock waste stream, compared to the cost to remove nitrogen through various other treatment activities.

Several independent studies have calculated the average cost to remove nitrogen through various sector practices. Reports prepared for the PA Senate (2008), Chesapeake Bay Commission (2012) and PA legislature (2013; described below), as well as the Maryland Chesapeake Bay Financing Strategy Report (2015), demonstrate that the cost to remove nitrogen (per pound on average) from agriculture is $44 to $54, municipal wastewater: $28 to $43, and storm water: $386 to $633. Pursuant to the PA legislative Report, by replacing sector allocation (for all sectors) with competitive bidding, up to 80 percent savings could be achieved in PA’s Chesapeake Bay compliance costs ($1.5 billion annually) by 2025. If the legislative study had focused on the cost differentials of competitive bidding compared only with storm water, the relative savings would be substantially greater.

Since these studies were completed, most of the larger (Tier 1) municipal wastewater treatment plants in PA have been upgraded, at a cost of approximately $2.5 billion (vs initial 2004 PA DEP cost estimates of $376 million). US EPA is now focused on PA’s storm water allocation (3.5 million pounds (per last published data)) and has this sector on ‘backstop level actions’, the highest level of EPA-oversight and the final step before sanctions. In the same 2004 PA DEP cost estimate that led to the more than a $2 billion underestimate/miscalculation in municipal wastewater plant upgrade costs, the estimate for storm water cost was $5.6 billion. In April 2017, US EPA sent a Letter of Expectation to PA DEP, expressing the agency’s support for the use of nutrient credit trading and competitive bidding to engage the private-sector to lower costs. The letter specifically encouraged the use of credit trading to offset the state’s looming storm water obligations.

The Company believes that: i)  the April 2015 release of a report from the Pennsylvania Auditor General titled “Special Report on the Importance of Meeting Pennsylvania’s Chesapeake Bay Nutrient Reduction Targets” which highlighted the economic consequences of EPA-imposed sanctions if the state fails to meet the 2017 TMDL targets, as well as the need to support using low-cost solutions and technologies as alternatives to higher-cost public infrastructure projects, where possible, and ii)   Senate Bill 799 (successor to prior SB 924 and SB 724) which, if adopted, will establish a program that will allow the Pennsylvania’s tax- and rate-payers to meet significant portions of their EPA-mandated Chesapeake Bay pollution reductions at significantly lower cost by purchasing verified reductions (by competitive bidding) from all sources, including those that Bion can produce through livestock waste treatment, represent visible evidence of progress being made on these matters in Pennsylvania. During late January 2018, SB 799 was passed by a 47-2 vote in the PA Senate and has been forwarded to the PA House. Such legislation, if passed and signed into law (of which there is no assurance), will potentially enable Bion (and others) to compete for public funding on an equal basis with subsidized agricultural ‘best management practices’ and public works and storm water authorities. Note, however, that there has been opposition to SB 799 (and its predecessors) from threatened stakeholders committed to the existing status quo approaches--- a significant portion of which was focused on attacking (in often inaccurate and/or vilifying ways) Bion in/through social media and internet articles, blogs, press releases, twitter posts and re-tweets, rather than engaging the substantive issues. If legislation similar to SB 799 is passed (on a stand-alone basis or as part of a larger piece of legislation) and implemented (in a form which maintains its core provisions), Bion expects that the policies and strategies being developed in PA will not only benefit the Company’s existing and proposed PA projects, but will also subsequently provide the basis for a larger Chesapeake Bay watershed strategy and, thereafter, a national clean water strategy.

The Company believes that Pennsylvania is ‘ground zero’ in the long-standing clean water battle between agriculture and the further regulation of agriculture relative to nutrient impacts. The ability of Bion and other technology providers to achieve verified reductions from agricultural non-point sources can resolve the current stalemate and enable implementation of constructive solutions that benefit all stakeholders, providing a mechanism that ensures that taxpayer funds will be used to achieve the most beneficial result at the lowest cost, regardless of source. All sources, point and non-point, rural and urban, will be able to compete for tax payer-funded nitrogen reductions in a fair and transparent process; and since payment from the tax and rate payers would now be performance-based, these providers will be held financially accountable.

We believe that the overwhelming environmental, economic, quality of life and public health benefits to all stakeholders in the watershed, both within and outside of Pennsylvania, make the case for adoption of the strategies outlined in the Report less an issue of ‘if’, but of ‘when and how’. The adoption of a competitive procurement program will have significant positive impact on technology providers that can deliver verified nitrogen reductions such as Bion, by allocating existing tax- and rate-payer clean water funding to low cost solutions based upon a voluntary and transparent procurement process. The Company believes that implementation of a competitively-bid nutrient reduction program to achieve the goals for the Chesapeake Bay watershed can also provide a working policy model and platform for other states to adopt that will enhance their efforts to comply with both current and future requirements for local and federal estuarine watersheds, including the Mississippi River/Gulf of Mexico, the Great Lakes Basin and other nutrient-impaired watersheds.

Bion will also pursue the opportunities related to development of Projects, including Integrated Projects.  Integrated Projects will include large CAFOs (such as large dairies, beef cattle feed lots and/or hog farms) with Bion waste treatment system modules processing the aggregate CAFO waste stream from the equivalent of 20,000 to 80,000 (or more) beef or dairy cows (or the waste stream equivalent of other species), while recovering renewable energy and value-added fertilizer/soil amendment products, integrated with CAFO end product users/processing facilities, and/or potentially in some locations, a biofuel/ethanol plant capable of producing 40 million to 100 (or more) million gallons of ethanol per year. Such Integrated Projects will involve multiple CAFO modules of 10,000 or more beef or dairy cows (or waste stream equivalent of other species) with waste treatment modules on a single site and/or on sites within an approximately 30-mile radius.  Bion believes its technology platform (2G Tech, 3G Tech and/or a hybrid in different situations) will allow integration of large-scale CAFO's with end product processors and/or potentially ethanol production, together with renewable energy production and byproducts recovered from the waste streams, and on-site energy utilization in a 'closed loop' manner that will reduce the capital expenditures, operating costs and carbon footprint for the entire Integrated Project and each component facility. Some Integrated Projects may be developed from scratch while others may be developed in geographic proximity to (and in coordination with) existing participating CAFOs, end product processors and/or ethanol plants. Each Integrated Project is likely to have different degrees of integration, especially in the early development phases.
 
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The Company currently anticipates that the Kreider 2 poultry waste treatment facility in PA will be its initial Project. Bion anticipates that it will select a site for the Kreider 2 Project and/or its initial Integrated Project (and possibly additional Projects) during calendar year 2018. Bion hopes to commence development of its initial Project by optioning land and beginning the site-specific design and permitting process during fiscal year 2019, but further delays are possible. It is not possible at this time to firmly predict where the initial Project will be developed or the order in which Projects will be developed. All potential Projects are in very early pre-development stages and may never progress to actual development or may be developed after other Projects not yet under active consideration.

Bion also hopes to be able to move forward on additional Projects through 2018-21 to create a pipeline of Projects. Management has a 5-year development target (through calendar year 2023) of approximately 10 or more Projects. Management hopes to have identified and begun development work related to 3-5 Projects over the next 2 years. At the end of the 5-year period, Bion projects that 3-8 of these Projects will be in full operation in 3-6 states (and possibly one or more foreign countries), and the balance would be in various stages ranging from partial operation to early development stage. It is possible that one or more Projects will be developed in joint ventures specifically targeted to meet the growing animal protein demand outside of the United States (including without limitation Asia, Europe and/or the Middle East). No Projects (including Integrated Projects) have been developed to date.
The Company’s audited financial statements for the years ended June 30, 2017 and 2016 have been prepared assuming the Company will continue as a going concern. The Company has incurred net losses of approximately $2,463,000 and $4,522,000 during the years ended June 30, 2017 and 2016, respectively. The Report of the Independent Registered Public Accounting Firm on the Company’s consolidated financial statements as of and for the year ended June 30, 2017 includes a “going concern” explanatory paragraph which means that the auditors stated that conditions exist that raise substantial doubt about the Company’s ability to continue as a going concern.  The Company has incurred net (losses of approximately $2,763,000 and $1,960,000 for the nine months ended March 31, 2018 and 2017, respectively.   At March 31, 2018, the Company had a working capital deficit and a stockholders’ deficit of approximately $10,267,000 and $13,819,000, respectively. Management’s plans with respect to these matters are described in this section and in our consolidated financial statements (and notes thereto), and this material does not include any adjustments that might result from the outcome of this uncertainty. However, there is no guarantee that we will be able to raise sufficient funds or further capital for the operations planned in the near future.
CRITICAL ACCOUNTING POLICIES

Revenue Recognition

While the Company has not recognized any significant operating revenues for the past three fiscal years, the Company has commenced generation of revenues during the year ended June 30, 2013. Revenues have been generated from the sale of nutrient reduction credits. The Company recognizes revenue from the sale of nutrient credits and products when there is persuasive evidence that an arrangement exists, when title has passed, the price is fixed or determinable, and collection is reasonably assured. The Company expects that technology license fees will be generated from the licensing of Bion’s systems. The Company anticipates that it will charge its customers a non-refundable up-front technology license fee, which will be recognized over the estimated life of the customer relationship. In addition, any on-going technology license fees will be recognized as earned based upon the performance requirements of the agreement. Annual waste treatment fees will be recognized upon receipt. Revenues, if any, from the Company’s interest in Projects will be recognized when the entity in which the Project has been developed recognizes such revenue.

Stock-based compensation

The Company follows the provisions of Accounting Standards Codification (“ASC”) 718, which generally requires that share-based compensation transactions be accounted and recognized in the statement of income based upon their grant date fair values.
 

 
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Derivative Financial Instruments:

Pursuant to ASC Topic 815 “Derivatives and Hedging” (“Topic 815”), the Company reviews all financial instruments for the existence of features which may require fair value accounting and a related mark-to-market adjustment at each reporting period end. Once determined, the Company assesses these instruments as derivative liabilities. The fair value of these instruments is adjusted to reflect the fair value at each reporting period end, with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives.

Warrants:

The Company has issued warrants to purchase common shares of the Company. Warrants are valued using a fair value based method, whereby the fair value of the warrant is determined at the warrant issue date using a market-based option valuation model based on factors including an evaluation of the Company’s value as of the date of the issuance, consideration of the Company’s limited liquid resources and business prospects, the market price of the Company’s stock in its mostly inactive public market and the historical valuations and purchases of the Company’s warrants. When warrants are issued in combination with debt or equity securities, the warrants are valued and accounted for based on the relative fair value of the warrants in relation to the total value assigned to the debt or equity securities and warrants combined.

Property and equipment:

Property and equipment are stated at cost and are depreciated, when placed into service, using the straight-line method over the estimated useful lives of the related assets, generally three to twenty years. The Company capitalizes all direct costs and all indirect incrementally identifiable costs related to the design and construction of its Integrated Projects. The Company has elected to expense all costs and filing fees related to obtaining patents (resulting in no related asset being recognized in the Company’s balance sheet) because the Company believes such costs and fees are immaterial (in the context of the Company’s total costs/expenses) and have no direct relationship to the value of the Company’s patents.  The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized based on the amount by which the carrying value of the assets or asset group exceeds its estimated fair value, and is recognized as a loss from operations.

Recent Accounting Pronouncements:
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts from Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and earlier application is permitted only as of annual reporting periods beginning after December 15, 2016. Once the Company begins to generate revenue, the Company does not anticipate any material impact on its operations and financial statements.
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter, early application is permitted. The adoption of ASU No. 2014-15 did not have a material impact on its financial statements.
In May 2017, the FASB issued ASU No. 2017-09 “Scope of Modification Accounting” which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications.  The new guidance will reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications.  ASU No. 2017-09 will be applied prospectively to awards modified on or after the adoption date.  The guidance is effective for annual periods, and interim periods within those annual periods beginning December 15, 2017, with early adoption permitted.  The Company does not anticipate any material impact on the Company’s financial statements upon adoption.
 
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THREE MONTHS ENDED MARCH 31, 2018 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2017

Revenue

Total revenues were nil for both the three months ended March 31, 2018 and 2017, respectively.

General and Administrative

Total general and administrative expenses were $957,000 and $401,000 for the three months ended March 31, 2018 and 2017, respectively.

General and administrative expenses, excluding stock-based compensation charges of $691,000 and $6,000, were $266,000 and $395,000 for the three months ended March 31, 2018 and 2017, respectively, representing a $129,000 decrease. Salaries and related payroll tax expenses were $72,000 and $74,000 for the three months ended March 31, 2018 and 2017, respectively.  Consulting costs were $103,000 and $213,000 for the three months ended March 31, 2018 and 2017, respectively, representing an $110,000 decrease due to the limited use of governmental affairs consultants during the three months ended March 31, 2018. Investor relations costs were $7,000 and $26,000 for the three months ended March 31, 2018 and 2017, respectively, the decrease due to the lower utilization of third party investor relations consultants during the fiscal 2018 period.  Most other general and administrative expenses for the three months ended March 31, 2018 did not change materially compared to the three months ended March 31, 2017.

General and administrative stock-based employee compensation for the three months ended March 31, 2018 and 2017 consists of the following:

   
Three months
ended
March 31,
2018
   
Three months
ended
March 31,
2017
 
General and administrative:
           
 Fair value of stock options expensed under ASC 718
 
$
682,000
   
$
6,000
 
  Change in fair value from modification of warrant terms
   
7,000
     
-
 
 Fair value of stock/warrant bonus expensed
   
2,000
     
-
 
   Total
 
$
691,000
   
$
6,000
 

Stock-based compensation charges were $691,000 and $6,000 for the three months ended March 31, 2018 and 2017, respectively. Compensation expense relating to stock options was $682,000 and $6,000 during the three months ended March 31, 2018 and 2017, respectively. The Company granted a total of 2,352,500 options that were fully vested during the three months ended March 31, 2018, while no options were awarded during the three months ended March 31, 2017. During the three months ended March 31, 2018, the Company extended expiration dates of warrants for an employee which resulted in the recognition of $7,000 in non-cash compensation, while no warrants were modified during the same period in fiscal year 2017.
 

 
30

Depreciation

Total depreciation expense was $500 and $500 for the three months ended March 31, 2018 and 2017, respectively.

Research and Development

Total research and development expenses were $680,000 and $86,000 for the three months ended March 31, 2018 and 2017, respectively.

Research and development expenses, excluding stock-based compensation expenses of $587,000 and nil, were $93,000 and $86,000 for the three months ended March 31, 2018 and 2017, respectively. Salaries and related payroll tax expenses were $16,000 and $18,000 for the three months ended March 31, 2018 and 2017, respectively.  Consulting costs were $3,000 and $8,000 for the three months ended March 31, 2018 and 2017, respectively.  The decrease in consulting costs was offset by $9,000 of expenses incurred for a new pilot testing program during the three months ended March 31, 2018.

Research and development stock-based employee compensation for the three months ended March 31, 2018 and 2017 consists of the following:

   
Three months ended
March 31, 2018
   
Three months ended
March 31, 2017
 
Research and development:
           
  Fair value of stock options expensed under ASC 718
 
$
587,000
   
$
-
 
      Total
 
$
587,000
   
$
-
 

The fair value of stock options expensed was $587,000 and nil for the three months ended March 31, 2018 and 2017, respectively.  The Company granted a total of 2,352,500 options that were fully vested during the three months ended March 31, 2018, a portion of which was allocated to research and development.

Loss from Operations

As a result of the factors described above, the loss from operations was $1,638,000 and $488,000 for the three months ended March 31, 2018 and 2017, respectively.

Other Expense (Income)

Other expense (income) was $93,000 and $95,000 for the three months ended March 31, 2018 and 2017, respectively. Interest expense, net decreased $10,000 for the three months ended March 31, 2018 compared to the three months ended March 31, 2017 due to lower balances on interest bearing deferred compensation.  The Company recorded a conversion inducement expense of $8,000 during the three months ended March 31, 2018 due to the limited time offer to reduce the exercise price of certain warrants.

Net Loss Attributable to the Noncontrolling Interest

The net loss attributable to the noncontrolling interest was $1,000 for both the three months ended March 31, 2018 and 2017, respectively.

Net Loss Attributable to Bion’s Common Stockholders

As a result of the factors described above, the net loss attributable to Bion’s stockholders was $1,729,000 and $582,000 for the three months ended March 31, 2018 and 2017, respectively, and the net loss per basic and diluted common share was $0.07 and $0.02.
 

 
31

NINE MONTHS ENDED MARCH 31, 2018 COMPARED TO THE NINE MONTHS ENDED MARCH 31, 2017
Revenue
Total revenues were nil for both the nine months ended March 31, 2018 and 2017, respectively.
General and Administrative
Total general and administrative expenses were $2,078,000 and $1,353,000 for the nine months ended March 31, 2018 and 2017, respectively.
General and administrative expenses, excluding stock-based compensation charges of $1,199,000 and $286,000, were $879,000 and $1,067,000 for the nine months ended March 31, 2018 and 2017, respectively, representing an $188,000 decrease.  Salaries and related payroll tax expenses remained fairly constant at $218,000 for the nine months ended March 31, 2018 compared to $224,000 for the nine months ended March 31, 2017.  Consulting costs were $364,000 and $477,000 for the nine months ended March 31, 2018 and 2017, respectively, representing an $113,000 decrease.  The decrease in consulting costs is due to reduced utilization of governmental affairs consultants during the nine months ended March 31, 2018.  Investor relation costs decreased from $69,000 for the nine months ended March 31, 2017 to $33,000 for the nine months ended March 31, 2018 due to decreased spending on investor relations development firms during the nine months ended March 31, 2018.  Insurance related expenses were $50,000 and $64,000 for the nine months ended March 31, 2018 and 2017, respectively, as the Company economized by changing some of its insurance coverage during the nine months ended March 31, 2018.
General and administrative stock-based employee compensation for the nine months ended March 31, 2018 and 2017 consists of the following:

   
Nine months
ended
March 31,
2018
   
Nine months
ended
March 31,
2017
 
General and administrative:
           
  Fair value of stock/warrant bonus expensed
 
$
9,000
   
$
7,000
 
  Change in fair value from modification of option terms
   
244,000
     
166,000
 
  Change in fair value from modification of warrant terms
   
164,000
     
-
 
  Fair value of stock options expensed under ASC 718
   
782,000
     
113,000
 
      Total
 
$
1,199,000
   
$
286,000
 

Stock-based compensation charges were $1,199,000 and $286,000 for the nine months ended March 31, 2018 and 2017, respectively.  Compensation expense relating to stock/warrant bonuses expensed for the nine months ended March 31, 2018 and 2017 of  $9,000 and $7,000, respectively, primarily related to 100,000 shares in stock bonuses granted to an employee and a consultant with vesting periods ranging from April 2017 through January 2020 (a portion of which were allocated to research and development).  Compensation expense relating to the change in fair value from the modification of option terms was $244,000 and $166,000 for the nine months ended March 31, 2018 and 2017, respectively, as the Company granted a reduction in certain exercise prices and an extension of certain option expiration dates for an employee and two consultants during the nine months ended March 31, 2017 and the Company extended certain option expiration dates for seven employees and consultants during the nine months ended March 31, 2018.  During the nine months ended March 31, 2018, the Company extended expiration dates of warrants for certain employees and consultants which resulted in the recognition of $164,000 in non-cash compensation.  The fair value of stock options expensed for the nine months ended March 31, 2018 and 2017 was $782,000 and $113,000 respectively.  The Company granted 2,647,500 options during the nine months ended March 31, 2018 that were fully vested within that time period.
Depreciation
Total depreciation expense was $1,000 and $2,000 for the nine months ended March 31, 2018 and 2017, respectively.
 
32

Research and Development
Total research and development expenses were $1,126,000 and $324,000 for the nine months ended March 31, 2018 and 2017, respectively.
Research and development expenses, excluding stock-based compensation expenses of $841,000 and $43,000 were $285,000 and $281,000 for the nine months ended March 31, 2018 and 2017, respectively.  Salaries and related payroll tax expenses were $52,000 and $54,000 for the nine months ended March 31, 2018 and 2017, respectively.  Consulting costs were $154,000 and $166,000 for the nine months ended March 31, 2018 and 2017, respectively. 

Research and development stock-based employee compensation for the nine months ended March 31, 2018 and 2017 consists of the following:

   
Nine Months ended
March 31, 2018
   
Nine Months ended
March 31, 2017
 
Research and development:
           
  Fair value of stock bonuses expensed
 
$
15,000
   
$
8,000
 
  Change in fair value from modification of option terms
   
106,000
     
11,000
 
  Change in fair value from modification of warrant terms
   
133,000
     
-
 
  Fair value of stock options expensed under ASC 718
   
587,000
     
24,000
 
      Total
 
$
841,000
   
$
43,000
 

Stock-based compensation expenses were $841,000 and $43,000 and for the nine months ended March 31, 2018 and 2017, respectively.    Compensation expense relating to stock bonuses expensed for the nine months ended March 31, 2018 and 2017 of $15,000 and $8,000, respectively, related to 70,000 shares in stock bonuses granted to an employee, whose time is partially allocated to research and development, with vesting periods ranging from April 2017 through January 2020.  The compensation expense of $11,000 attributed to the change in fair value from modification of options terms for the nine months ended March 31, 2017 is due to a research and development employee’s having certain option exercise prices reduced during the period.  For the nine months ended March 31, 2018 an employee and a consultant’s expiration period of certain options were extended resulting in $106,000 of expense.   During the nine months ended March 31, 2018, the Company extended expiration dates of warrants for certain research and development employees and consultants which resulted in the recognition of $133,000 in non-cash compensation.  The fair value of stock options expensed for the nine months ended March 31, 2018 and 2017 was $587,000 and $24,000 respectively.  The Company granted 2,647,500 options during the nine months ended March 31, 2018 that were fully vested within that time period and a portion of the stock compensation expense was allocated to research and development.
Loss from Operations
As a result of the factors described above, the loss from operations was $3,205,000 and $1,678,000 for the nine months ended March 31, 2018 and 2017, respectively.
Other (Income) Expense
Other (income) expense was $(434,000) and $282,000 for the nine months ended March 31, 2018 and 2017, respectively.  During the nine months ended March 31, 2018, the Company recognized other income of $719,000 due to the extinguishment of liabilities related to deferred compensation of non-related parties.  Interest expense was $277,000 and $283,000 for the nine months ended March 31, 2018 and 2017, respectively.  The decrease of $6,000 was due to lower balances on interest bearing deferred compensation during the nine months ended March 31, 2018.  Interest expense related to the Pennvest loan was $148,000 for both periods.  The Company recorded a conversion inducement expense of $8,000 related to the limited time offering of a reduced warrant exercise price on certain warrants.
Net Loss Attributable to the Noncontrolling Interest
The net loss attributable to the noncontrolling interest was $2,000 for both the nine months ended March 31, 2018 and 2017, respectively.
Net Loss Attributable to Bion’s Common Stockholders
As a result of the factors described above, the net loss attributable to Bion’s stockholders was $2,769,000 and $1,958,000 for the nine months ended March 31, 2018 and 2017, respectively, and the net loss per basic common share was $0.11 and $0.08 for the nine months ended March 31, 2018 and 2017, respectively.
 
33

LIQUIDITY AND CAPITAL RESOURCES

The Company's consolidated financial statements for the nine months ended March 31, 2018 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Report of our Independent Registered Public Accounting Firm on the Company's consolidated financial statements as of and for the year ended June 30, 2017 includes a "going concern" explanatory paragraph which means that the auditors stated that conditions exist that raise substantial doubt about the Company's ability to continue as a going concern.

Operating Activities

As of March 31, 2018, the Company had cash of approximately $40,000. During the nine months ended March 31, 2018, net cash used in operating activities was $383,000, primarily consisting of cash operating expenses related to salaries and benefits, and other general and administrative costs such as insurance and legal and accounting expenses. As previously noted, the Company is currently not generating significant revenue and accordingly has not generated cash flows from operations. The Company does not anticipate generating sufficient revenues to offset operating and capital costs for a minimum of two to five years. While there are no assurances that the Company will be successful in its efforts to develop and construct its Projects and market its Systems, it is certain that the Company will require substantial funding from external sources. Given the unsettled state of the current credit and capital markets for companies such as Bion, there is no assurance the Company will be able to raise the funds it needs on reasonable terms.

Investing Activities

During the nine months ended March 31, 2018, the Company had no investing activities.

Financing Activities

During the nine months ended March 31, 2018, the Company received cash proceeds of $200,000 from the sale of 267,331 units which consists of one share of the Company’s restricted common stock and one warrant to purchase one half of a share of the Company’s restricted common stock for $1.00 per share through June 30, 2018. During the nine months ended March 31, 2018, the Company received cash proceeds of $107,000 from the sale of 213,000 units which consists of one share of the Company’s restricted common stock and one warrant to purchase one half of a share of the Company’s restricted common stock for $0.75 per share through September 30, 2018.  The Company paid cash commissions related to the sale of units of $15,000. During the nine months ended March 31, 2018, the Company received $40,000 from the exercise of 80,000 warrants for common stock of the Company.  The Company also received cash proceeds of $31,000 from loans payable from affiliates of the Company and repaid $13,000 of loans payable from affiliates.

As of March 31, 2018 the Company has debt obligations consisting of: a) loans payable – affiliates of $18,000, b) deferred compensation of $346,000, b) convertible notes payable – affiliates of $3,499,000, and, c) a loan payable and accrued interest of $8,971,000, (owed by PA1).
 
34


Plan of Operations and Outlook

As of March 31, 2018, the Company had cash of approximately $40,000.

The Company continues to explore sources of additional financing to satisfy its current operating requirements as it is not currently generating any significant revenues. During fiscal years 2014 through 2017 and through the nine months ended March 31, 2018, the Company experienced greater difficulty in raising equity and debt funding than in the prior years. As a result, the Company faced, and continues to face, significant cash flow management challenges due to material working capital constraints. These difficulties, challenges and constraints have continued during fiscal year 2017 and through the nine months ended March 31, 2018 and the Company anticipates that they may continue for the next twelve (12) months or longer. To partially mitigate these working capital constraints, the Company's core senior management and some key employees and consultants have been deferring all or part of their cash compensation and/or are accepting compensation in the form of securities of the Company (Notes 5 and 7 to Financial Statements) and members of the Company's senior management have made loans to the Company which have been converted into convertible promissory notes and working capital loans as of March 31, 2018. During the nine months ended March 31, 2018 senior management and certain core employees and consultants agreed to a one-time extinguishment of liabilities owed by the Company which in aggregate totaled $2,404,000.  As of March 31, 2018, such deferrals totaled approximately $3,845,000 (including accrued interest and deferred compensation converted into promissory notes but excluding conversions of deferred compensation into the Company's common stock by officers, employees and consultants that have already been completed). The extended constraints on available resources have had, and continue to have, negative effects on the pace and scope of the Company's effort to develop its business. The Company made reductions in its personnel during the year ended June 30, 2014 and 2015. The Company has had to delay payments of trade obligations and economize in many ways that have potentially negative consequences. If the Company does not have greater success in its efforts to raise needed funds during the current year (and subsequent periods), we will need to consider deeper cuts (including additional personnel cuts) and curtailments of operations (including possibly Kreider 1 operations). The Company will need to obtain additional capital to fund its operations and technology development, to satisfy existing creditors, to develop Projects (including Integrated Projects) and CAFO Retrofit waste remediation systems (including the Kreider 2 facility) and to continue to operate the Kreider 1 facility (subject to agreements being reached with Pennvest as discussed above). The Company anticipates that it will seek to raise from $2,500,000 to $50,000,000 or more (debt and equity) during the next twelve months. However, as discussed above, there is no guarantee that we will be able to raise sufficient funds or further capital for the operations planned in the near future.

The Company is not currently generating any significant revenues. Further, the Company’s anticipated revenues, if any, from existing projects and proposed projects will not be sufficient to meet the Company’s anticipated operational and capital expenditure needs for many years. During the year ended June 30, 2017 the Company raised proceeds of approximately $452,000 through the sale of its securities (Note 7 to the annual Financial Statements in the Form 10-K) and anticipates raising additional funds from such sales and transactions. However, there is no guarantee that we will be able to raise sufficient funds or further capital for the operations planned in the near future.

Because the Company is not currently generating significant revenues, the Company will need to obtain additional capital to fund its operations and technology development, to satisfy existing creditors, to develop Projects and to sustain operations at the KF 1 facility.

The first commercial activity in the Retrofit segment is represented by our agreement with Kreider Farms ("KF"), pursuant to which the Kreider 1 system to treat KF's dairy waste streams to reduce nutrient releases to the environment while generating marketable nutrient credits and renewable energy was designed, constructed and entered  full-scale operation during 2011. On January 26, 2009 the Board of the Pennsylvania Infrastructure Investment Authority ("Pennvest") approved a $7.75 million loan to Bion PA 1, LLC ("PA1"), a wholly-owned subsidiary of the Company, for the initial Kreider Farms project ("Kreider 1 System"). After substantial unanticipated delays, on August 12, 2010 PA1 received a permit for construction of the Kreider 1 system.  Construction activities commenced during November 2010.  The closing/settlement of the Pennvest Loan took place on November 3, 2010.  PA1 finished the construction of the Kreider 1 System and entered a period of system 'operational shakedown' during May 2011.  The Kreider 1 System reached full, stabilized operation by the end of the 2012 fiscal year.  During 2011 the PADEP re-certified the nutrient credits for this project.  The PADEP issued final permits for the Kreider 1 System (including the credit verification plan) on August 1, 2012 on which date the Company deemed that the Kreider System was 'placed in service'.  As a result, PA1 commenced generating nutrient reduction credits for potential sale while continuing to utilize the Kreider 1 system to test improvements and add-ons. However, to date liquidity in the Pennsylvania nutrient credit market has been slow to develop significant breadth and depth,  which limited liquidity/depth has negatively impacted Bion's business plans and has resulted in challenges to monetizing the nutrient reductions created by PA1's existing Kreider 1 project and Bion's other proposed projects. These difficulties have prevented PA1 from generating any material revenues from the Kreider 1 project to date and raise significant questions as to when, if ever, PA1 will be able to generate such revenues from the Kreider 1 system.  PA1 has had sporadic discussions/negotiations with Pennvest related to forbearance and/or re-structuring its obligations pursuant to the Pennvest Loan for more than three years. In the context of such discussions/negotiations, PA1 elected not to make interest payments to Pennvest on the Pennvest Loan since January 2013.  Additionally, the Company has not made any principal payments, which were to begin in fiscal 2013, and, therefore, the Company has classified the Pennvest Loan as a current liability as of March 31, 2018.  Due to the failure of the PA nutrient reduction credit market to develop, the Company determined that the carrying amount of the 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, therefore, PA1 and the Company recorded impairments related to the value of the Kreider 1 assets of $1,750,000 and $2,000,000 at June 30, 2015 and June 30, 2014, respectively.  During the 2016 fiscal year, PA1 and the Company recorded an impairment of $1,684,562 to the value of the Kreider 1 assets which reduced the value on the Company's books to zero.  This impairment reflects management's judgment that the salvage value of the Kreider 1 assets roughly equals PA1's contractual obligations related to the Kreider 1 system, including expenses related to decommissioning of the Kreider 1 system, costs associated with needed capital upgrade expenses, and re-certification/ permitting amendments. See "Impairment loss on property and equipment" above.
 
35


On September 25, 2014, Pennvest exercised its right to declare the Pennvest Loan in default and accelerated the Pennvest Loan and demanded that PA1 pay $8,137,117 (principal, interest plus late charges) on or before October 24, 2014. PA1 did not make the payment and does not have the resources to make the payments demanded by Pennvest. PA1 has commenced discussions and negotiations with Pennvest concerning this matter but Pennvest has rejected PA1's proposal made during the fall of 2014.  As of the date of this report, no formal proposals are currently under consideration and only sporadic communication has taken place regarding the matters involved over the last 36 months.  It is not possible at this date to predict the outcome of this matter, but the Company believes that a loan modification agreement (coupled with an agreement regarding an update and restart of full operations of KF1) may be reached in the future if/when a more robust market for nutrient reductions develops in PA, of which there is no assurance. PA1 and Bion will continue to evaluate various options with regard to Kreider 1 over the next 30-180 days.

The economics (potential revenues, profitability and continued operation) of the Kreider 1 System are based almost entirely on the long term sale of nutrient (nitrogen and/or phosphorus) reduction credits to meet the requirements of the Chesapeake Bay environmental clean-up. See below for further discussion.

During August 2012, the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider 1 system met the 'technology guaranty' standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan is now solely an obligation of PA1.

The Company is currently operating the Kreider 1 System in a limited manner pending development of a more robust market for its nutrient reductions.

As indicated above, the Company anticipates that it will seek to raise from $2,500,000 to $50,000,000 or more (from debt, equity, joint venture, strategic partnering, etc.) during the next twelve months, some of which may be in the context of joint ventures for the development of one or more large scale projects. We reiterate that there is no assurance, especially in the extremely unsettled capital markets that presently exist for companies such as Bion, that the Company will be able to obtain the funds that it needs to stay in business, finance its Projects and other activities, continue its technology development and/or to successfully develop its business.

There is extremely limited likelihood that funds required during the next twelve months or in the periods immediately thereafter will be generated from operations and there is no assurance that those funds will be available from external sources such as debt or equity financings or other potential sources. The lack of additional capital resulting from the inability to generate cash flow from operations and/or to raise capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business. Further, there can be no assurance that any such required funds, if available, will be available on attractive terms or that they will not have a significantly dilutive effect on the Company's existing shareholders. All of these factors have been exacerbated by the extremely limited and unsettled credit and capital markets presently existing for companies such as Bion.

Currently, Bion is focused on using applications of its patented and proprietary waste management technologies and technology platform to pursue three main business opportunities: 1) installation of Bion systems ( some of which may  generate verified nutrient reduction credits and revenues from the production of renewable energy and byproducts) to retrofit and environmentally remediate existing CAFOs ("Retrofits") in selected markets where: a) government policy supports such efforts (such as the Chesapeake Bay watershed, Great Lakes Basin states, and/or other states and watersheds facing EPA 'total maximum daily load' ("TMDL") issues, and/or b) where CAFO's need our technology to obtain permits to expand or develop without negative environmental consequences; 2) development of new state-of-the-art large scale waste treatment facilities in strategic locations ("Projects") ( some of these may be Integrated Projects as described below) with multiple revenue streams, and 3) licensing and/or joint venturing of Bion's technology and applications (primarily) outside North America. The opportunities described at 1) and 2) above each require substantial political and regulatory (federal, state and local) efforts on the part of the Company and a substantial part of Bion's efforts are focused on such political and regulatory matters. Bion is currently pursuing the international opportunities primarily through the use of consultants with existing relationships in target countries. The most intense focus is currently on the requirements for the clean-up of the Chesapeake Bay faced by the Commonwealth of Pennsylvania and the potential use of Bion’s technology and technology platform on CAFOs to remediate ammonia release (and re-deposition to the ground and water) and as an alternative to what the Company believes is far more expensive nutrient removal downstream in storm water and other projects.
Additionally, the Kreider agreements provide for Bion to develop a waste treatment/renewable energy production facility to treat the waste from Kreider's approximately 5+ million chickens (planned to expand to approximately 9 million)(and potentially other poultry operations and/or other waste streams)('Kreider Renewable Energy Facility' or ' Kreider 2 Project').  On May 5, 2016, the Company executed a stand-alone joint venture agreement with Kreider Farms covering all matters related to development and operation of a system to treat the waste streams from Kreider's poultry facilities in Bion PA2 LLC ("PA2"). The Company continues its development work related to the details of the Kreider 2 Project. During May 2011 the PADEP certified Kreider 2 Project for 559,457 nutrient credits under the old EPA's Chesapeake Bay model.  The Company anticipates that the Kreider 2 Project will be re-certified for between 1.5-2 million nutrient reduction credits (for treatment of the waste stream from Kreider's poultry) pursuant to the Company's pending reapplication (or subsequent amended application) during 2018 pursuant to the amended EPA Chesapeake Bay model and agreements between the EPA and PA. Note that this Project may be expanded in the future to treat wastes from other local and regional CAFOs (poultry and/or dairy) and/or Kreider poultry expansion (some of which may not qualify for nutrient reduction credits). The review process to clarify certain issues related to credit calculation and verification commenced during 2014 but has been largely placed on hold while certain matters are resolved between the EPA and PA and pending development of a robust market for nutrient reductions in PA. The Company anticipates it will submit an amended application once these matters are clear. Design and engineering work for this facility, which will probably be the first to utilize Bion's 3G Tech,  have not commenced, and the Company does not yet have financing in place for the Kreider 2 Project. This opportunity is being pursued through PA2. If there are positive developments related to the market for nutrient reductions in PA, of which there is no assurance, the Company intends to pursue development, design and construction of the Kreider 2 Project with a goal of achieving operational status of its initial modules during the 2019 fiscal year, and hopes to enter into agreements related to sales of the nutrient reduction credits for future delivery (under long term contracts) during 2018 subject to verification by the PADEP based on operating data from the Kreider 2 Project. The economics (potential revenues and profitability) of the Kreider 2 Project, despite its use of Bion's 3G Tech for increased recovery of marketable by-products, are based in material part the long term sale of nutrient (nitrogen and/or phosphorus) reduction credits to meet the requirements of the Chesapeake Bay environmental clean-up.  However, liquidity in the PA nutrient credit market has been slow to develop significant breadth and depth, which lack of liquidity has negatively impacted Bion's business plans and has resulted in challenges to monetizing the nutrient reduction credits generated by PA1's existing Kreider 1 project and will most likely delay PA2's Kreider 2 Project and other proposed projects in PA.
 
36


Note that while Bion believes that the Kreider 1 System, the Kreider 2 Project and/or subsequent Bion Projects will eventually generate revenue from the sale of: a) nutrient reductions (credits or in other form), b) renewable energy (and related credits), c) sales of fertilizer products, and/or d) potentially, in time, credits for the reduction of greenhouse gas emissions. Additionally, revenues from licensing fees related to a sustainable brand are also anticipated for many Projects. We believe that the potential market is very large, but it is not possible to predict the exact timing and/or magnitude of these potential markets at this time.

The Company anticipates that the Kreider 2 poultry waste treatment facility in PA will be its initial Project. Bion anticipates that it will select a site for the Kreider 2 Project and/or its initial Integrated Project (and possibly additional Projects) during calendar year 2018. Bion hopes to commence development of its initial Project by optioning land and beginning the site specific design and permitting process during fiscal year 2019, but delays are possible. It is not possible at this time to firmly predict where the initial Project will be developed or the order in which Projects will be developed. All potential Projects are in very early pre-development stages and may never progress to actual development or may be developed after other Projects not yet under active consideration.

Bion also hopes to be able to move forward on additional Projects through 2018-20 to create a pipeline of Projects. Management has a 5-year development target (through calendar year 2023) of approximately 10 or more Projects. Management hopes to have identified and begun development work related to 3-5 Projects over the next 2 years. At the end of the 5-year period, Bion projects that 3-8 of these Projects will be in full operation in 3-6 states (and possibly one or more foreign countries), and the balance would be in various stages ranging from partial operation to early development stage. It is possible that one or more Projects will be developed in joint ventures specifically targeted to meet the growing animal protein demand outside of the United States (including without limitation Asia, Europe and/or the Middle East). No Projects (including Integrated Projects) has been developed to date.

CONTRACTUAL OBLIGATIONS

We have the following material contractual obligations (in addition to employment and consulting agreements with management and employees):

During 2008 the Company commenced actively pursuing the opportunity presented by environmental retrofit and remediation of the waste streams of existing CAFOs which effort has met with very limited success to date. The first commercial activity in this area is represented by our agreement with Kreider Farms ("KF"), pursuant to which the Kreider 1 system to treat KF's dairy waste streams to reduce nutrient releases to the environment while generating marketable nutrient credits and renewable energy was designed, constructed and entered  full-scale operation during 2011. On January 26, 2009 the Board of the Pennsylvania Infrastructure Investment Authority ("Pennvest") approved a $7.75 million loan to Bion PA 1, LLC ("PA1"), a wholly-owned subsidiary of the Company, for the initial Kreider Farms project ("Kreider 1 System"). After substantial unanticipated delays, on August 12, 2010 PA1 received a permit for construction of the Kreider 1 system.  Construction activities commenced during November 2010.  The closing/settlement of the Pennvest Loan took place on November 3, 2010.  PA1 finished the construction of the Kreider 1 System and entered a period of system 'operational shakedown' during May 2011.  The Kreider 1System reached full, stabilized operation by the end of the 2012 fiscal year.  During 2011 the PADEP re-certified the nutrient credits for this project.  The PADEP issued final permits for the Kreider 1 System (including the credit verification plan) on August 1, 2012 on which date the Company deemed that the Kreider System was 'placed in service'.  As a result, PA1 commenced generating nutrient reduction credits for potential sale while continuing to utilize the Kreider 1 system to test improvements and add-ons. However, to date liquidity in the Pennsylvania nutrient credit market has been slow to develop significant breadth and depth,  which limited liquidity/depth has negatively impacted Bion's business plans and has resulted in challenges to monetizing the nutrient reductions created by PA1's existing Kreider 1 project and Bion's other proposed projects. These difficulties have prevented PA1 from generating any material revenues from the Kreider 1 project to date and raise significant questions as to when, if ever, PA1 will be able to generate such revenues from the Kreider 1 system.  PA1 has had sporadic discussions/negotiations with Pennvest related to forbearance and/or re-structuring its obligations pursuant to the Pennvest Loan for more than three years. In the context of such discussions/negotiations, PA1 elected not to make interest payments to Pennvest on the Pennvest Loan since January 2013.  Additionally, the Company has not made any principal payments, which were to begin in fiscal 2013, and, therefore, the Company has classified the Pennvest Loan as a current liability as of March 31, 2018.  Due to the failure of the PA nutrient reduction credit market to develop, the Company determined that the carrying amount of the 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, therefore, PA1 and the Company recorded impairments related to the value of the Kreider 1 assets of $1,750,000 and $2,000,000 at June 30, 2015 and June 30, 2014, respectively.  During the 2016 fiscal year, PA1 and the Company recorded an impairment of $1,684,562 to the value of the Kreider 1 assets which reduced the value on the Company's books to zero.  This impairment reflects management's judgment that the salvage value of the Kreider 1 assets roughly equals PA1's contractual obligations related to the Kreider 1 system, including expenses related to decommissioning of the Kreider 1 system, costs associated with needed capital upgrade expenses, and re-certification/ permitting amendments. See "Impairment loss on property and equipment" above.

On September 25, 2014, Pennvest exercised its right to declare the Pennvest Loan in default and accelerated the Pennvest Loan and demanded that PA1 pay $8,137,117 (principal, interest plus late charges) on or before October 24, 2014. PA1 did not make the payment and does not have the resources to make the payments demanded by Pennvest. PA1 has commenced discussions and negotiations with Pennvest concerning this matter but Pennvest has rejected PA1's proposal made during the fall of 2014.  As of the date of this report, no formal proposals are currently under consideration and only sporadic communication has taken place regarding the matters involved over the last 36 months.  It is not possible at this date to predict the outcome of this matter, but the Company believes that a loan modification agreement (coupled with an agreement regarding an update and restart of full operations of KF1) may be reached in the future if/when a more robust market for nutrient reductions develops in PA, of which there is no assurance. PA1 and Bion will continue to evaluate various options with regard to Kreider 1 over the next 30-180 days.

The economics (potential revenues, profitability and continued operation) of the Kreider 1 System are based almost entirely on the long term sale of nutrient (nitrogen and/or phosphorus) reduction credits to meet the requirements of the Chesapeake Bay environmental clean-up.

During August 2012, the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider 1 system met the 'technology guaranty' standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan is now solely an obligation of PA1.

The Company is currently operating the Kreider 1 System in a limited manner pending development of a more robust market for its nutrient reductions.
 
37


OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements (as that term is defined in Item 303 of Regulation S‑K) that are reasonably likely to have a current or future material effect on our financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.
Not applicable.
Item 4.  Controls and Procedures.
(a)  Evaluation of Disclosure Controls and Procedures.
The term "disclosure controls and procedures" is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). This term refers to the controls and procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized, and reported within the required time periods. Our Chief Executive Officer and Principal Financial Officer has evaluated the effectiveness of the design and operations of our disclosure controls and procedures as of the end of the period covered by this quarterly report, and has concluded that, as of that date, our disclosure controls and procedures were not effective at ensuring that required information will be disclosed on a timely basis in our reports filed under the Exchange Act, as a result of the material weakness in internal control over financial reporting discussed in Item 9(A) of our Form 10-K for the year ended June 30, 2017.
(b)  Changes in Internal Control over Financial Reporting.
No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

38

PART II – OTHER INFORMATION
Item 1.  Legal Proceedings.
On September 25, 2014, Pennvest exercised its right to declare the Pennvest Loan in default and has accelerated the Pennvest Loan and has demanded that our wholly-owned subsidiary Bion PA-1 LLC (‘PA-1’) pay $8,137,117 (principal, interest plus late charges) on or before October 24, 2014. The Company anticipates that discussions and negotiations will take place between PA-1 and Pennvest concerning this matter over the next 90-180 days.  No proposals are currently under consideration to resolve this matter.  It is not possible at this date to predict the outcome of such negotiations, but the Company believes that it remains possible that negotiations will lead to a commercially reasonable loan modification agreement  be reached between PA-1 and Pennvest. Subject to the results of the negotiations with Pennvest and pending development of a more robust market for nutrient reductions in Pennsylvania, PA-1 and Bion anticipate that it will be necessary for the Company to evaluate various options with regard to Kreider 1 over the coming months.  Litigation has not commenced in this matter but has been threatened by Pennvest.
The Company currently is not involved in any other material litigation.
Item 1A.  Risk Factors.
Not applicable.
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.
During the quarter ended December 31, 2017 the Company sold the following restricted securities: a) 5,404  shares issued pursuant to our 2006 Consolidated Incentive Plan (‘Plan’), valued at $4,002 in aggregate, to an employee and consultant for services, and b) 196,694 units at $0.75 per unit were sold and the Company received proceeds of $147,521  (each unit consisted of one share of the Company’s restricted common stock and one warrant to purchase half of a share of the Company’s restricted common stock at $1.00 per share until June 30, 2018.  Additionally, in transactions effective November 7, 2017, the Company sold 3,610,00 warrants, in aggregate,  (including 1,765,000 to Dominic Bassani, the Company’s CEO (“Bassani”) and 670,000 to Mark A. Smith, the Company’s President and a director(“Smith”)) valued at $.05 per warrant for consideration totaling $180,500 (including an $88,250 promissory note from Bassani and $33,500 in services from Smith), which warrants are exercisable at $0.75 and have expiry dates of December 31, 2020.  In all of these transactions the Company relied on the exemptions in Section 4(2) of the Securities Act of 1933, as amended, and/or under Rule 506 of Regulation D under the Securities Act of 1933, as amended. See Notes to Financial Statements (included herein) for additional details.
The proceeds were utilized for general corporate purposes.
Item 3.  Defaults Upon Senior Securities.
Not applicable.
Item 4.  Mine Safety Disclosures.
Not applicable.
Item 5.  Other Information.
Not applicable.
Item 6.  Exhibits.
(a)  Exhibits required by Item 601 of Regulation S-K.
Exhibit
 
Description
     
 
     
 
 
 
 
 
     
 
     
101
 
XBRL Exhibits

39

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

   
BION ENVIRONMENTAL TECHNOLOGIES, INC.
     
     
Date:  May 10, 2018
By:
/s/ Mark A. Smith           
   
Mark A. Smith, President and Chief Financial Officer (Principal Financial and Accounting Officer)
     
     
     
Date:  May 10, 2018
By:
/s/ Dominic Bassani        
   
Dominic Bassani, Chief Executive Officer
     
     



40
EX-31 2 ex31x1.htm EXHIBIT 31.1

Exhibit 31.1

SECTION 302 CERTIFICATION

I, Dominic Bassani, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Bion Environmental Technologies, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the of the registrant as of, and for, the periods presented in this report;

4.   The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)  Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.   The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 

May 10, 2018
/s/ Dominic Bassani
 
 
Dominic Bassani
Chief Executive Officer
 

 
EX-31.2 3 ex31x2.htm EXHIBIT 31.2

Exhibit 31.2

SECTION 302 CERTIFICATION

I, Mark A. Smith, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Bion Environmental Technologies, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the of the registrant as of, and for, the periods presented in this report;

4.   The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)  Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.   The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
       
Date:  May 10, 2018
 
/s/ Mark A. Smith
 
   
Mark A. Smith
Executive Chairman, President and
Interim Chief Financial Officer
 
     
       


EX-32.1 4 ex32x1.htm EXHIBIT 32.1

Exhibit 32.1

CERTIFICATION OF CEO PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Form 10-Q of Bion Environmental Technologies, Inc., a company duly formed under the laws of Colorado (the "Company"), for the period ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Dominic Bassani, Chief Executive Officer of the Company, hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 10, 2018
/s/ Dominic Bassani
 
 
Dominic Bassani
Chief Executive Officer
 

 
This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to Bion Environmental Technologies, Inc. and will be retained by Bion Environmental Technologies, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
EX-32.2 5 ex32x2.htm EXHIBIT 32.2

Exhibit 32.2

CERTIFICATION OF CFO PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Form 10-Q of Bion Environmental Technologies, Inc., a company duly formed under the laws of Colorado (the "Company"), for the period ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Mark A. Smith, President (Executive Chairman) and Interim Chief Financial Officer (Principal Financial and  Accounting Officer) of the Company, hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
       
Date:  May 10, 2018
 
/s/ Mark A. Smith  
   
Mark A. Smith
Executive Chairman, President and
Interim Chief Financial Officer
 
       

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to Bion Environmental Technologies, Inc. and will be retained by Bion Environmental Technologies, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
 
 
 
 
 
EX-101.INS 6 bnet-20180331.xml XBRL INSTANCE DOCUMENT 1216818 0.75 296852 296852 349656 349656 1685252 1685252 45850 33500 2500 80001 133666 106500 89485 670000 247000 50000 3460000 1765000 670000 60000 153540 0.50 8000 8000 8000 80001 1 171613 171613 0.5 0.50 0.60 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONVERTIBLE NOTES PAYABLE - AFFILIATES:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">January 2015 </div>Convertible Notes</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2015 </div>Convertible Notes accrue interest at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4%</div> per annum and were due and payable on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017. </div>Effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the maturity dates were extended on the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2015 </div>Convertible Notes until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2019. </div>The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2015 </div>Convertible Notes (including accrued interest, plus all future deferred compensation), are convertible, at the sole election of the noteholder, into Units consisting of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of the Company&#x2019;s common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> quarter warrant to purchase a share of the Company&#x2019;s common stock, at a price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.50</div> per Unit until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2020. </div>The warrant contained in the Unit shall be exercisable at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per share until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2020. </div>The original conversion price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.50</div> per Unit approximated the fair value of the Units at the date of the agreements; therefore <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> beneficial conversion feature exists. Management evaluated the terms and conditions of the embedded conversion features based on the guidance of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">815</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> &#x201c;Embedded Derivatives&#x201d; to determine if there was an embedded derivative requiring bifurcation. An embedded derivative instrument (such as a conversion option embedded in the deferred compensation) must be bifurcated from its host instruments and accounted for separately as a derivative instrument only if the &#x201c;risks and rewards&#x201d; of the embedded derivative instrument are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> &#x201c;clearly and closely related&#x201d; to the risks and rewards of the host instrument in which it is embedded. Management concluded that the embedded conversion feature of the deferred compensation was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> required to be bifurcated because the conversion feature is clearly and closely related to the host instrument, and because of the Company&#x2019;s limited trading volume that indicates the feature is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> readily convertible to cash in accordance with ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">815</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> &#x201c;Derivatives and Hedging&#x201d;.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2015 </div>Convertible Note balances, including accrued interest, owed Bassani, Smith and Schafer were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,654,736,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$859,282</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$427,416,</div> respectively. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2017, </div>the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2015 </div>Convertible Note balances, including accrued interest, owed Bassani, Smith and Schafer were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,596,155,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$828,861</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$412,284,</div> respectively. The Company recorded interest expense of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25,677</div></div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"></div> for both of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively. The Company recorded <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"></div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$78,172</div></div> for both of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">September 2015 </div>Convertible Notes</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>the Company entered into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2015 </div>Convertible Notes with Bassani, Schafer and a Shareholder which replaced previously issued promissory notes. The initial principal balances of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2015 </div>Convertible Notes were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$405,831,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$16,382</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$82,921,</div> respectively. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2015 </div>Convertible Notes bear interest at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4%</div> per annum, had maturity dates of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be converted at the sole election of the noteholders into restricted common shares of the Company at a conversion price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.60</div> per share. As the conversion price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.60</div> approximated the fair value of the common shares at the date of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2015 </div>Convertible Notes, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> beneficial conversion feature exists. The balances of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2015 </div>Convertible Notes as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>including accrued interest, are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$447,989,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$18,061</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$91,417,</div> respectively. The balances of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2015 </div>Convertible Notes as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2017, </div>including accrued interest, were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$431,181,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$17,405</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$88,101,</div> respectively. During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>Bassani and the Company agreed to split his original <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2015 </div>Convertible Note into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> replacement notes with all the terms remaining the same. One of the replacement notes&#x2019; original principal is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$130,000,</div> which is being held by the Company as collateral for a subscription receivable promissory note from Bassani (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8</div>).</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the maturity dates of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2015 </div>Convertible Notes due Bassani and Schafer were extended until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2019 </div>and during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the maturity date of the note due a Shareholder was extended until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2019.</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company recorded interest expense of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,341</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,983</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively. The Company recorded interest expense of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15,743</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15,168</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively.</div></div> P3Y 0.11 0.11 0.5 0.5 P10D P5D 300000 300000 0.75 0.75 1685252 2403832 1147210 416656 121386 1685252 718580 125000 300000 125000 300000 1893 0.75 0.75 0.75 0.75 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Warrants:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company has issued warrants to purchase common shares of the Company. Warrants are valued using a fair value based method, whereby the fair value of the warrant is determined at the warrant issue date using a market-based option valuation model based on factors including an evaluation of the Company&#x2019;s value as of the date of the issuance, consideration of the Company&#x2019;s limited liquid resources and business prospects, the market price of the Company&#x2019;s stock in its mostly inactive public market and the historical valuations and purchases of the Company&#x2019;s warrants. When warrants are issued in combination with debt or equity securities, the warrants are valued and accounted for based on the relative fair value of the warrants in relation to the total value assigned to the debt or equity securities and warrants combined.</div></div></div></div></div></div></div></div></div></div></div></div> 0.9 0.9 0.9 0.5 0.5 0.5 0.5 0.75 0.9 0.5 0.9 P5Y 0.05 0.01 1513 0.04 0.04 0.04 718580 0.04 0.03 8970818 8796322 18000 19000 18000 31000 1 1 1 1 0.25 1 1 1 0.25 1 0.75 2 185622 200497 106500 306997 249628 267331 213000 71000 480331 36000 306997 306997 7091 163956 219 132896 296852 265353 7310 1197 704309 704309 704309 704309 704309 P10Y P3Y 116277 0.5 0.5 0.05 0.05 48001 48001 134650 40000 1.07 158184 268927 209903 249827 P3Y219D 289051 -10267000 false --06-30 Q3 2018 2018-03-31 10-Q 0000875729 24623085 Yes Smaller Reporting Company BION ENVIRONMENTAL TECHNOLOGIES INC No No bnet 946590 865841 65540 2793869 2792561 107801537 103540352 194345 103360 1391671 1391671 14875 14875 6152 3140 183000 -134650 48350 22321 14784 1269700 6134 1369350 135950 1500 8723 6830 682485 6134 782135 112699 691076 6134 1198575 285560 15098 7954 587215 587215 23251 587434 841104 42645 12176269 8382831 6827225 4520037 7337805 8517079 16750 15750 47392 84530 45508 81338 401470 401470 2500000 50000000 72932 170194 40403 35917 -32529 -134277 1 0.75 0.50 0.75 3 1 2.50 1 1 0.75 0.75 0.75 1.50 1 1.50 322110 89485 800000 1765000 928000 917000 0.75 592916 12200000 5773706 5329869 91371 23934 11478555 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMMITMENTS AND CONTINGENCIES:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Employment and consulting agreements:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Smith has held the positions of Director, President and General Counsel of Company and its subsidiaries under various agreements and terms since <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2003. </div>On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 10, 2015, </div>the Company executed an Extension Agreement with Smith pursuant to which Smith extended his employment with the Company to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2015 (</div>with the Company having an option to extend his employment an additional <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months). As part of the Extension Agreement, the balance of Smith&#x2019;s existing convertible note payable as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2014, </div>adjusted for conversions subsequent to that date, was replaced with a new convertible note with an initial principal amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$760,520</div> with terms that i) materially reduce the interest rate by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> (from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4%</div>), ii) increases the conversion price by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11%</div> (from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.45</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.50</div>), iii) sets the conversion price at a fixed price so there can be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> further reductions, iv) reduces the number of warrants received on conversion by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75%</div> (from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> warrant per unit to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1/4</div> per unit) and v) extends the maturity date to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017. </div>Additionally, pursuant to the Extension Agreement, Smith: i) will continue to defer his cash compensation (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$18,000</div> per month) until the Board of Directors re-instates cash payments to all employees and consultants who are deferring their compensation, ii) cancelled <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150,000</div> contingent stock bonuses previously granted to him by the Company, iii) has been granted <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150,000</div> new options which vested immediately and iv) outstanding options and warrants owned by Smith (and his donees) have been extended and had the exercise prices reduced to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.50</div> (if the exercise price exceeded <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.50</div>). In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 2015, </div>the Company executed an Extension Agreement (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x201c;FY2016</div> Extension Agreement&#x201d;) with Smith pursuant to which Smith extended his employment with the Company to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016 (</div>with Company having an option to extend his employment an additional <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months). As part of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">FY2016</div> Extension Agreement, Smith: i) will continue to defer his cash compensation (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$19,000</div> per month) until the Board of Directors re-instates cash payments, ii) has been granted <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,000</div> new options which vested immediately, and iii) has been granted <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75,000</div> shares of common stock as an extension bonus which are immediately vested and were issued on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 5, 2016. </div>As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2016, </div>Smith is working under a month to month contract extension until a longer term agreement is reached. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 10, 2016, </div>the Company approved a month to month contract extension with Smith which includes provisions for i) issuance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,000</div> bonus shares of the Company&#x2019;s common shares on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 15, 2017 (</div>which were subsequently cancelled), ii) grant of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75,000</div> options to purchase shares of the Company&#x2019;s common shares at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.90</div> per share with expiry date of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2020, </div>which options are subject to the exercise/extension bonus, iii) a monthly deferred salary of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$18,000</div> effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 1, 2016, </div>iv) the right to convert up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$125,000</div> of his deferred compensation, at his sole election, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per share, until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 15, 2018 (</div>which was expanded on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 27, 2017 </div>to the right to convert up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$300,000</div> of his deferred compensation, at his sole election, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per share, until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018), </div>and v) the right to convert his deferred compensation in whole or in part, at his sole election, at any time in any amount at &#x201c;market&#x201d; or into securities sold in the Company&#x2019;s current/most recent private offering at the price of such offering to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> parties.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Since <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2005, </div>the Company has had various agreements with Brightcap and/or Bassani, through which the services of Bassani are provided. The Board appointed Bassani as the Company's CEO effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 13, 2011. </div>During the fiscal years <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2012</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013,</div> Bassani entered into extension agreements whereby he was awarded fully vested stock grants totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">600,000</div> shares, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">500,000</div> shares of which were to be issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 15, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,000</div> shares were to be issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 15, 2017. </div>The stock grants were expensed in the years they were awarded as they are fully vested. The stock grants were cancelled in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 2016. </div>On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 10, 2015, </div>the Company executed an Extension Agreement with Bassani pursuant to which Bassani extended the term of his service to the Company to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, (</div>with the Company having an option to extend the term an additional <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months.) As part of the agreement, the Company&#x2019;s then existing loan payable, deferred compensation and convertible note payable to Bassani, were restructured into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> promissory notes as follows: a) The sum of the cash loaned by Bassani to the Company of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$279,000</div> together with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$116,277</div> of unreimbursed expenses through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2014, </div>were placed into a new promissory note with initial principal of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$395,277</div> which was due and payable on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2015 </div>and now has been replaced with a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2015 </div>Convertible Note (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div>). In connection with these sums and the new promissory note, Bassani was issued warrants to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">592,916</div> shares of the Company&#x2019;s common stock at a price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2020; </div>and b) the remaining balances of the Company&#x2019;s accrued obligations to Bassani (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,464,545</div>) were replaced with a new convertible promissory note with terms that compared with the largest prior convertible note obligation to Bassani: i) materially reduce the interest rate by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> (from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4%</div>), ii) increase the conversion price by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11%</div> (from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.45</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.50</div>), iii) sets the conversion price at a fixed price so there can be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> further reductions, iv) reduces the number of warrants received on conversion by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75%</div> (from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> warrant per unit to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1/4</div> per unit) and v) extends the maturity date to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 (</div>Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div>). Additionally, pursuant to the Extension Agreement, Bassani i) will continue to defer his cash compensation (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$31,000</div> per month) until the Board of Directors re-instates cash payments to all employees and consultants who are deferring their compensation, ii) cancelled <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">250,000</div> contingent stock bonuses previously granted to him by the Company, iii) has been granted <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">450,000</div> new options which vested immediately and iv) outstanding options and warrants owned by Bassani (and his donees) have been extended and had the exercise prices reduced to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.50</div> (if the exercise price exceeded <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.50</div>).During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 2016 </div>Bassani was granted the right to convert up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$125,000</div> of his deferred compensation, at his sole election, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per share, until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 15, 2018 (</div>which was expanded on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 27, 2017 </div>to the right to convert up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$300,000</div> of his deferred compensation, at his sole election, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per share, until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018).</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Execution/exercise bonuses:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">As part of agreements the Company entered into with Bassani and Smith effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 15, 2013, </div>they were each granted the following: a) a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> execution/exercise bonus which shall be applied upon the effective date of the notice of intent to exercise (for options and warrants) or issuance event, as applicable, of any currently outstanding and/or subsequently acquired options, warrants and/or contingent stock bonuses owned by each (and/or their donees) as follows: i) in the case of exercise by payment of cash, the bonus shall take the form of reduction of the exercise price; ii) in the case of cashless exercise, the bonus shall be applied to reduce the exercise price prior to the cashless exercise calculations; and iii) with regard to contingent stock bonuses, issuance shall be triggered upon the Company&#x2019;s common stock reaching a closing price equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> of currently specified price; and b) the right to extend the exercise period of all or part of the applicable options and warrants for up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year at a time) by annual payments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$.05</div> per option or warrant to the Company on or before a date during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months prior to expiration of the exercise period at least <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> business days before the end of the expiration period. Effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2016 </div>such annual payments to extend warrant exercise periods have been reduced to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$.01</div> per option or warrant.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2014, </div>the Company extended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> execution/exercise bonuses with the same terms as described above to Schafer and to Jon Northrop (&#x201c;Northrop&#x201d;), the Company&#x2019;s other board member.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company extended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> execution/exercise bonuses with the same terms as described above to all options and warrants issued prior to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 7, 2017, </div>to an employee and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> former employees who are now consultants.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company increased the above <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> execution/exercise bonus on all outstanding options and warrants owned or acquired in the future by Bassani, Smith and Schafer to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75%</div> (to the extent such existing exercise bonus is less than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75%</div>).</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2017, </div>the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,460,000</div> warrants (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,765,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">670,000</div> to Bassani and Smith, respectively) and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">190,000</div> options to Schafer that have a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">90%</div> execution/exercise bonus attached.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the execution/exercise bonuses ranging from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">90%</div> were applicable to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,634,600</div> of the Company&#x2019;s outstanding options and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,478,555</div> of the Company&#x2019;s outstanding warrants.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Litigation:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 25, 2014, </div>Pennvest exercised its right to declare the Pennvest Loan in default and has accelerated the Pennvest Loan and has demanded that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> pay <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,137,117</div> (principal, interest plus late charges) on or before <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 24, 2014. </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> make the payment and does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have the resources to make the payment demanded by Pennvest. During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2012, </div>the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> system met the &#x2018;technology guaranty&#x2019; standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan is now solely an obligation of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div> litigation has commenced related to this matter but such litigation is likely if negotiations do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> produce a resolution (Notes <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> and Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div>).</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company currently is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> involved in any other material litigation.</div></div> 500000 100000 0 0 174650 40000 100000000 100000000 25327394 24748213 25011939 23784363 23573057 24623085 24043904 24307630 23080054 22868748 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Principles of consolidation:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Bion Integrated Projects Group, Inc. (&#x201c;Projects Group&#x201d;), Bion Technologies, Inc., BionSoil, Inc., Bion Services, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA2;</div> and its <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">58.9%</div> owned subsidiary, Centerpoint Corporation (&#x201c;Centerpoint&#x201d;). All significant intercompany accounts and transactions have been eliminated in consolidation.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The accompanying consolidated financial statements have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (&#x201c;SEC&#x201d;). The consolidated financial statements reflect all adjustments (consisting of only normal recurring entries) that, in the opinion of management, are necessary to present fairly the financial position at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>and the results of operations and cash flows of the Company for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> Operating results for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> necessarily indicative of the results that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be expected for the year ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018.</div></div></div></div></div></div></div></div></div></div></div></div></div> 7750000 8970818 1654736 859282 427416 1596155 828861 412284 3498901 3316060 405831 16382 82921 447989 18061 91417 431181 17405 88101 130000 130000 130000 760520 1464545 88927 8137117 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LOAN PAYABLE:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1,</div> the Company&#x2019;s wholly-owned subsidiary, owes <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,970,818</div> as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>under the terms of the Pennvest Loan related to the construction of the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System including accrued interest and late charges totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,216,818</div> as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018. </div>The terms of the Pennvest Loan provided for funding of up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,754,000</div> which was to be repaid by interest-only payments for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> years, followed by an additional <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ten</div>-year amortization of principal. The Pennvest Loan accrues interest at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.547%</div> per annum for years <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.184%</div> per annum for years <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div> through maturity. The Pennvest Loan required minimum annual principal payments of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,742,000</div> in fiscal years <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013</div> through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$760,000</div> in fiscal year <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$771,000</div> in fiscal year <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$794,000</div> in fiscal year <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2020,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$819,000</div> in fiscal year <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2021,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$846,000</div> in fiscal year <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2022</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,022,000</div> thereafter. The Pennvest Loan is collateralized by the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System and by a pledge of all revenues generated from Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> including, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> limited to, revenues generated from nutrient reduction credit sales and by-product sales. In addition, in consideration for the excess credit risk associated with the project, Pennvest is entitled to participate in the profits from Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> calculated on a net cash flow basis, as defined. The Company has incurred interest expense related to the Pennvest Loan of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$49,373</div></div> for both of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively. The Company has incurred interest expense related to the Pennvest Loan of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$148,121</div></div> and for both of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively. Based on the limited development of the depth and breadth of the Pennsylvania nutrient reduction credit market to date, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> commenced negotiations with Pennvest related to forbearance and/or re-structuring the obligations under the Pennvest Loan. In the context of such negotiations, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> has elected <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to make interest payments to Pennvest on the Pennvest Loan since <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2013. </div>Additionally, the Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> made any principal payments, which were to begin in fiscal <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013,</div> and, therefore, the Company has classified the Pennvest Loan as a current liability as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018.</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 25, 2014, </div>Pennvest exercised its right to declare the Pennvest Loan in default and has accelerated the Pennvest Loan and demanded that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> pay <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,137,117</div> (principal, interest plus late charges) on or before <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 24, 2014. </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> make the payment and does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have the resources to make the payment demanded by Pennvest. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> has engaged in on/off discussions and negotiations with Pennvest concerning this matter but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> such discussions/negotiations are currently active. As of the date of this report, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> formal proposals are presently under consideration and only sporadic communication has taken place regarding the matters involved over the past <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">48</div> months. It is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> possible at this date to predict the outcome of this matter, but the Company believes it is possible that an agreement <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>yet be reached that will result in a viable loan modification. Subject to the results of the negotiations with Pennvest and pending development of a more robust market for nutrient reductions in Pennsylvania, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> and Bion will continue to evaluate various options with regard to Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> over the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">180</div> days.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In connection with the Pennvest Loan financing documents, the Company provided a &#x2018;technology guaranty&#x2019; regarding nutrient reduction performance of Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> which was structured to expire when Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1&#x2019;s</div> nutrient reduction performance had been demonstrated. During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2012 </div>the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System had surpassed the requisite performance criteria and that the Company&#x2019;s &#x2018;technology guaranty&#x2019; was met. As a result, the Pennvest Loan is solely an obligation of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1.</div></div></div> 0 0 0.45 0.50 0.45 0.50 395277 0.02547 0.03184 0.04 0.04 0.08 0.04 0.08 0.04 345929 1962885 124612 72355 873273 338480 118376 75478 391272 984 72500 60000 2107262 70000 436 502 1308 1507 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Derivative Financial Instruments: </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Pursuant to ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">815</div> &#x201c;Derivatives and Hedging&#x201d; (&#x201c;Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">815&#x201d;</div>), the Company reviews all financial instruments for the existence of features which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>require fair value accounting and a related mark-to-market adjustment at each reporting period end. Once determined, the Company assesses these instruments as derivative liabilities. The fair value of these instruments is adjusted to reflect the fair value at each reporting period end, with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives.</div></div></div></div></div></div></div></div></div></div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DEFERRED COMPENSATION:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company owes deferred compensation to various employees, former employees and consultants totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$345,929</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,962,885</div> as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively. Included in the deferred compensation balances as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$124,612</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$72,355</div> owed Bassani, and Smith, respectively, pursuant to extension agreements effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2015, </div>whereby unpaid compensation earned after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2015, </div>accrues interest at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4%</div> per annum and can be converted into shares of the Company&#x2019;s common stock at the election of the employee during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> calendar days of any month. The conversion price shall be the average closing price of the Company&#x2019;s common stock for the last <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> trading days of the immediately preceding month. The deferred compensation owed Bassani, Smith and Edward Schafer (&#x201c;Schafer&#x201d;), the Company&#x2019;s Vice Chairman, as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2017 </div>was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$873,273,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$338,480</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$118,376,</div> respectively. The Company also owes various consultants, pursuant to various agreements, for deferred compensation of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$75,478</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$391,272</div> as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively, with similar conversion terms as those described above for Bassani, Smith and Schafer, with the exception that the interest accrues at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3%</div> per annum. Bassani and Smith have each been granted the right to convert up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$300,000</div> of deferred compensation balances at a price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per share until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018 (</div>to be issued pursuant to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2006</div> Plan). Smith has the right to convert all or part of his deferred compensation balance into the Company&#x2019;s securities (to be issued pursuant to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2006</div> Plan) &#x201c;at market&#x201d; and/or on the same terms as the Company is selling or has sold its securities in its then current (or most recent if there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> current) private placement. The Company also owes a current employee deferred compensation of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$984</div> which is convertible into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,893</div> shares of the Company&#x2019;s common stock as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and, a former employee <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$72,500,</div> which is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> convertible and is non-interest bearing.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>Bassani, Smith and Schafer agreed to cancel deferred compensation owed them as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 30, 2017 </div>of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,147,210,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$416,656</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$121,386,</div> respectively (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,685,252</div> in aggregate). Various consultants also agreed to cancel deferred compensation as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 30, 2017 </div>totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$718,580.</div> The total deferred compensation that was cancelled during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,403,832,</div> of which, the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,685,252</div> owed related parties was recorded as an increase in additional paid in capital, while <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$718,580</div> was recorded as a gain from the extinguishment of liabilities. All deferred compensation agreements remain in effect and the Company accrued deferred compensation anew beginning <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 1, 2017.</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company recorded interest expense of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$32,299</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$26,084</div> with related parties) and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$39,592</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$30,937</div> with related parties) for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively.</div></div> 13500 2000 2000 500 1500 18000 18000 279000 -0.07 -0.02 -0.11 -0.08 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">L</div><div style="display: inline; font-weight: bold;">oss per share:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Basic loss per share amounts are calculated using the weighted average number of shares of common stock outstanding during the period. Diluted loss per share assumes the conversion, exercise or issuance of all potential common stock instruments, such as options or warrants, unless the effect is to reduce the loss per share or increase the earnings per share. During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the basic and diluted loss per share was the same, as the impact of potential dilutive common shares was anti-dilutive.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The following table represents the warrants, options and convertible securities excluded from the calculation of basic loss per share:</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Warrants</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,176,269</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,382,831</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Options</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,827,225</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,520,037</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Convertible debt</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,337,805</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,517,079</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Convertible preferred stock</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,750</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,750</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> </table> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The following is a reconciliation of the denominators of the basic and diluted loss per share computations for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017:</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 52%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shares issued &#x2013; beginning of period</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,011,939</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,784,363</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,748,213</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,573,057</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shares held by subsidiaries (Note 7)</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shares outstanding &#x2013; beginning of period</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,307,630</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,080,054</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,043,904</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22,868,748</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Weighted average shares for fully vested stock bonuses</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">289,051</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Weighted average shares issued during the period</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">158,184</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">268,927</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">209,903</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">249,827</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Basic weighted average shares &#x2013;&nbsp; end of period</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,465,814</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,348,981</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,253,807</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,407,626</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> </table> </div></div></div></div></div></div></div></div></div></div></div></div> 0 0.589 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Fair value measurements:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The Company uses a fair value hierarchy that has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> levels of inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> &#x2013; quoted prices (unadjusted) in active markets for identical assets or liabilities;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> &#x2013; observable inputs other than Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> &#x2013; assets and liabilities whose significant value drivers are unobservable.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company&#x2019;s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The fair value of cash and accounts payable approximates their carrying amounts due to their short-term maturities. The fair value of the loan payable is indeterminable at this time due to the nature of the arrangement with a state agency and the fact that it is in default. The fair value of the redeemable preferred stock approximates its carrying value due to the dividends accrued on the preferred stock which are reflected as part of the redemption value. The fair value of the loan payable &#x2013; affiliates, deferred compensation and convertible notes payable - affiliates are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> practicable to estimate due to the related party nature of the underlying transactions.</div></div></div></div></div></div></div></div></div></div></div></div> 956826 401346 2077519 1352734 3750000 1684562 1684562 0 80749 133171 610200 627200 -2321 -8504 -7500 32299 39592 25677 78172 5341 4983 15743 15168 25677 78172 84714 94640 276815 281969 49373 148121 49373 148121 26084 30937 13811138 15203812 47392 84530 10312237 11887752 7754000 1022000 760000 846000 819000 794000 771000 8137117 2222670 2222670 30900 29400 54846 57332 350123 265766 -382652 -400043 -1472 -508 -2486 -1904 -1728940 -581782 -2768513 -1958433 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Recent Accounting Pronouncements:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company&#x2019;s financial reporting, the Company undertakes a study to determine the consequences of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company&#x2019;s financial statements properly reflect the change.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the Financial Accounting Standards Board (&#x201c;FASB&#x201d;) issued Accounting Standards Update (&#x201c;ASU&#x201d;) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> &#x201c;Revenue from Contracts from Customers,&#x201d; which supersedes the revenue recognition requirements in &#x201c;Revenue Recognition (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605</div>),&#x201d; and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> is effective for fiscal years, and interim periods within those years, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017 </div>and earlier application is permitted only as of annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div>Once the Company begins to generate revenue, the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> anticipate any material impact on its operations and financial statements.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div><div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2014, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> &#x201c;Presentation of Financial Statements &#x2013; Going Concern: Disclosures of Uncertainties about an Entity&#x2019;s Ability to Continue as a Going Concern.&#x201d; The new standard requires management to perform interim and annual assessments of an entity&#x2019;s ability to continue as a going concern within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity&#x2019;s ability to continue as a going concern. The guidance is effective for annual periods ending after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016, </div>and interim periods thereafter, early application is permitted. The adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material impact on the Company&#x2019;s financial statements.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2017, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> &#x201c;Scope of Modification Accounting&#x201d; which clarifies when changes to the terms or conditions of a share-based payment awards must be accounted for as modifications. The new guidance will reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> will be applied prospectively to awards modified on or after the adoption date. The guidance is effective for annual periods, and interim periods within those annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>with early adoption permitted. The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> anticipate any material impact on the Company&#x2019;s financial statements upon adoption.</div></div></div></div></div></div></div></div></div></div></div></div> -92714 -94640 433765 -281969 40000 41513 40000 88250 46400 1637698 487650 3204764 1678368 -1637698 -487650 -3204764 -1678368 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ORGANIZATION, NATURE OF BUSINESS, GOING CONCERN AND MANAGEMENT&#x2019;S PLANS:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Organization and nature of business:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Bion Environmental Technologies, Inc. (&#x201c;Bion&#x201d; or &#x201c;We&#x201d; or the &#x201c;Company&#x201d;) was incorporated in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1987</div> in the State of Colorado and has developed and continues to develop patented and proprietary technology and business models that provide comprehensive environmental solutions to a significant source of pollution in United States agriculture, large scale livestock facilities known as Concentrated Animal Feeding Operations (&#x201c;CAFO&#x2019;s&#x201d;). Application of our technology and technology platform can simultaneously remediate environmental problems and improve operational/resource efficiencies by recovering value from the CAFOs&#x2019; waste stream that has traditionally been wasted or underutilized, including renewable energy, nutrients (nitrogen and phosphorus--- in organic and conventional form) and clean water. Bion&#x2019;s technologies (and applications related thereto) produce substantial reductions of nutrient releases (primarily nitrogen and phosphorus) to both water and air (including ammonia, which is subsequently re-deposited to the ground) from livestock waste streams based upon our operations and research to date (and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> party peer review thereof). Our technology simultaneously enables the documentation of the remediation efforts thereby providing the basis to address concerns re sustainability and food safety. We are continually involved in research and development to upgrade and improve our technology and technology applications, including integration with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> party technology. Bion provides comprehensive and cost-effective treatment of livestock waste onsite (and/or at nearby locations), while it is still concentrated and before it contaminates air, soil, groundwater aquifers and/or downstream waters, and, in certain configurations, can be optimized to maximize recovery of marketable nutrients for potential use as fertilizer (organic and/or inorganic) and/or feed additives plus renewable energy (and related environmental credits).</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">From <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div> through the current <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> fiscal year, the Company has focused its research and development on augmenting the basic &#x2018;separate and aggregate&#x2019; approach of its technology platform to provide additional flexibility and to increase recovery of marketable nutrient by-products (in organic and non-organic forms) and renewable energy production (either/both biogas and/or renewable electricity), thereby increasing potential related revenue streams and reducing dependence of its future projects on the monetization of nutrient reductions (which still remain a very important part of project revenue streams). Bion has worked on development of&nbsp;its <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> generation technology (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x201c;3G</div> Tech&#x201d;) which is designed to: a) generate significantly greater value from the nutrients and renewable energy recovered from the waste stream, b) treat dry (poultry) waste streams as well as wet waste streams (dairy/beef cattle/swine), and c) while maintaining or improving environmental performance. This research and development effort also involves ongoing review of potential &#x201c;add-ons&#x201d; and applications to our technology platform for use in different regulatory and/or climate environments. These research and development activities have targeted completion of development of the next generation of Bion&#x2019;s technology and technology platform. We believe such activities will continue at least through the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> calendar year (and likely longer), subject to availability of adequate financing for the Company&#x2019;s operations, of which there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance. Such activities <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>include design and construction of an initial, commercial-scale module utilizing our <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3G</div> Tech to assist in optimization efforts before construction of the full Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> project (see below).</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Currently, Bion is focused on using applications of its patented and proprietary waste management technologies and technology platform to pursue <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> main business opportunities: <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) installation of Bion systems (some of which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>generate verified nutrient credits and revenues from the production of renewable energy and byproducts) to retrofit and environmentally remediate existing CAFOs (&#x201c;Retrofits&#x201d;) in selected markets where: a) government policy supports such efforts (such as the Chesapeake Bay watershed, some Great Lakes Basin states, and/or other states and watersheds facing Environmental Protection Agency (&#x201c;EPA&#x201d;) &#x2018;total maximum daily load&#x2019; (&#x201c;TMDL&#x201d;) issues, and/or b) where CAFO&#x2019;s need our technology to obtain permits to expand or develop without negative environmental consequences; <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>) development of new state-of-the-art large-scale waste treatment facilities in conjunction with large CAFO&#x2019;s in strategic locations (&#x201c;Projects&#x201d;) ( some of these <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be Integrated Projects as described below) with multiple revenue streams, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>) licensing and/or joint venturing of Bion&#x2019;s technology and applications (primarily) outside North America. The opportunities described at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>) above each require substantial political and regulatory (federal, state and local) efforts on the part of the Company and a substantial part of Bion&#x2019;s efforts are focused on such political and regulatory matters. Bion intends to pursue international opportunities primarily through the use of consultants with existing relationships in target locations. The most intense focus is currently on the requirements for the clean-up of the Chesapeake Bay faced by the Commonwealth of Pennsylvania and the potential use of Bion&#x2019;s technology and technology platform on CAFOs to remediate ammonia release (and re-deposition to the ground and water) and as an alternative to what the Company believes is far more expensive nutrient removal downstream in storm water and other projects.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Management believes that Bion&#x2019;s technology also creates the opportunity to develop Integrated Projects that profitably integrate large-scale CAFO's production with their downstream food processing facility, and in certain applications, biofuel/ethanol production. The Bion platform will provide treatment of, as well as renewable energy and by-product recovery from, both the CAFO and food processing waste streams, on-site utilization of some or all of the renewable energy generated, and potentially, biofuel/ethanol production, in an environmentally and economically sustainable manner that reduces the aggregate capital expense and operating costs for the entire integrated complex.&nbsp;Projects <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>involve various degrees of integration which will limit the benefits described herein.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2008</div> the Company commenced actively pursuing the opportunity presented by environmental retrofit and remediation of the waste streams of existing CAFOs which effort has met with very limited success to date. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> commercial activity in this area is represented by our agreement with Kreider Farms (&#x201c;KF&#x201d;), pursuant to which the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> system to treat KF's dairy waste streams to reduce nutrient releases to the environment while generating marketable nutrient credits and renewable energy was designed, constructed and entered full-scale operation during <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2011.</div> On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 26, 2009 </div>the Board of the Pennsylvania Infrastructure Investment Authority (&#x201c;Pennvest&#x201d;) approved a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7.75</div> million loan to Bion PA <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> LLC (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x201c;PA1&#x201d;</div>), a wholly-owned subsidiary of the Company, for the initial Kreider Farms project (&#x201c;Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System&#x201d;). After substantial unanticipated delays, on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 12, 2010 </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> received a permit for construction of the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System. Construction activities commenced during <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2010. </div>The closing/settlement of the Pennvest Loan took place on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 3, 2010. </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> finished the construction of the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System and entered a period of system &#x2018;operational shakedown&#x2019; during <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2011. </div>The Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System reached full, stabilized operation by the end of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2012</div> fiscal year. During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2011</div> the Pennsylvania Department of Environmental Protection (&#x201c;PADEP&#x201d;) re-certified the nutrient credits for this project. The PADEP issued final permits for the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System (including the credit verification plan) on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 1, 2012 </div>on which date the Company deemed that the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System was &#x2018;placed in service&#x2019;. As a result, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> commenced generating nutrient reduction credits for potential sale while continuing to utilize the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System to test improvements and add-ons. However, to date liquidity in the Pennsylvania nutrient credit market has been slow to develop significant breadth and depth, which limited liquidity/depth has negatively impacted Bion&#x2019;s business plans and has resulted in challenges to monetizing the nutrient reductions created by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1&#x2019;s</div> existing Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System and Bion&#x2019;s other proposed projects. These difficulties have prevented <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> from generating any material revenues from the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System to date and raise significant questions as to when, if ever, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> will be able to generate such revenues from<div style="display: inline; font-weight: bold;"> </div>the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> has had sporadic discussions/negotiations with Pennvest related to forbearance and/or re-structuring its obligations pursuant to the Pennvest Loan for more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> years. In the context of such discussions/negotiations, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> elected <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to make interest payments to Pennvest on the Pennvest Loan since <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2013. </div>Additionally, the Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> made any principal payments, which were to begin in fiscal <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013,</div> and, therefore, the Company has classified the Pennvest Loan as a current liability as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018. </div>Due to the failure of the Pennsylvania nutrient reduction credit market to develop, the Company determined (on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> separate occasions) that the carrying amount of the property and equipment related to the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System exceeded its estimated future undiscounted cash flows based on certain assumptions regarding timing, level and probability of revenues from sales of nutrient reduction credits. Therefore, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> and the Company recorded impairments related to the value of the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> assets totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,750,000</div> through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2015. </div>During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> fiscal year, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> and the Company recorded an additional impairment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,684,562</div> to the value of the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> assets which reduced the value on the Company&#x2019;s books to zero. This impairment reflects management&#x2019;s judgment that the salvage value of the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> assets roughly equals <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1&#x2019;s</div> contractual obligations related to the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System, including expenses related to decommissioning of the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System, costs associated with needed capital upgrade expenses, and re-certification/ permitting amendments.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 25, 2014, </div>Pennvest exercised its right to declare the Pennvest Loan in default and accelerated the Pennvest Loan and demanded that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> pay <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,137,117</div> (principal, interest plus late charges) on or before <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 24, 2014. </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> make the payment and does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have the resources to make the payments demanded by Pennvest. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> has commenced discussions and negotiations with Pennvest concerning this matter but Pennvest has rejected <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1&#x2019;s</div> proposal made during the fall of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div> formal proposals are presently under consideration and only sporadic communication has taken place regarding the matters involved over the last <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36</div> months. It is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> possible at this date to predict the outcome of such this matter, but the Company believes that a loan modification agreement (coupled with an agreement regarding an update and re-start of full operations of the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be reached in the future if/when a more robust market for nutrient reductions develops in Pennsylvania, of which there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> and Bion will continue to evaluate various options with regard to Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> over the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">180</div> days.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2012, </div>the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System met the &#x2018;technology guaranty&#x2019; standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan has been (and is now) solely an obligation of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1</div> since that date.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The economics (potential revenues, profitability and continued operation) of the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System are based almost entirely on the long term sale of nutrient (nitrogen and/or phosphorus) reduction credits to meet the requirements of the Chesapeake Bay environmental clean-up.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 5, 2016, </div>Bion <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA2</div> LLC (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x201c;PA2&#x201d;</div>) executed a stand-alone joint venture agreement with Kreider Farms covering all matters related to development and operation of a system to treat the waste streams from Kreider&#x2019;s poultry facilities (&#x201c;Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2&#x201d;</div>).</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Kreider projects are owned and operated by Bion through separate subsidiaries, in which Kreider has the option to acquire a noncontrolling interest. Substantial capital (equity and/or debt) has been and will continue to be expended on these projects. Additional funds will be required for continuing operations and additional capital expenditures for upgrades at Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> until sufficient revenues can be generated, of which there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance. The Company anticipates that the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> System will generate revenue primarily from the sale of nutrient reduction (and/or other) environmental credits. A portion of Bion&#x2019;s research and development activities has taken place at the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> facility.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet constructed) (and most future Projects) will be developed using variations on Bion&#x2019;s <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3G</div> Tech to recover substantial marketable nutrients and renewable energy to supplement its revenue from nutrient reductions. The Company believes that the proceeds from multiple byproduct streams including i) fertilizer (organic and non-organic) and/or feed additives and ii) renewable energy (and related credits) can be reasonably projected to generate, in aggregate, revenue streams that, in certain circumstances, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>exceed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div>-thirds of total revenues from such Project(s) when aggregated with license fees related to a &#x2018;sustainable brand&#x2019; resulting from implementation of Bion&#x2019;s technology. To date the market for long-term nutrient reduction credits in Pennsylvania has been very slow to develop and the Company&#x2019;s activities have been negatively affected by the lack of such development.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> pre-development work and technology evaluation, including execution of a stand-alone joint venture agreement, amended credit certification and discussions with potential joint venture partners, continues. The Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> Project primarily relates to treatment of the wastes from Kreider&#x2019;s poultry operations. Assuming there are positive developments related to the market for nutrient reductions in Pennsylvania, the Company intends to pursue development, design and construction of the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> poultry waste/renewable energy project with a goal of achieving operational status for its initial modules during fiscal year <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019.</div> However, as discussed above, this Project faces challenges related to the current limits of the existing nutrient reduction market and funding of technology-based, verifiable agricultural nutrient reductions which are anticipated to constitute the largest share of its revenues.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">A significant portion of Bion&#x2019;s activities concern efforts with private and public stakeholders (at local and state level) in Pennsylvania (and other Chesapeake Bay and Midwest and Great Lakes states) and at the federal level EPA and the Department of Agriculture (&#x201c;USDA&#x201d;) (and other executive departments) and Congress) to establish appropriate public policies which will create regulations and funding mechanisms that foster installation of the low cost environmental solutions that Bion (and others) can provide through clean-up of agricultural waste streams. The Company anticipates that such efforts will continue in Pennsylvania and other Chesapeake Bay watershed states throughout the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months and in various additional states thereafter.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Going concern and management&#x2019;s plans:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> generated significant revenues and has incurred net losses (including significant non-cash expenses) of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,463,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,522,000</div> during the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> respectively and net loss of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,771,000</div> during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018. </div>At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company has a working capital deficit and a stockholders&#x2019; deficit of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,267,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$13,819,000,</div> respectively. These factors raise substantial doubt about the Company&#x2019;s ability to continue as a going concern. The accompanying consolidated financial statements do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> include any adjustments relating to the recoverability or classification of assets or the amounts and classification of liabilities that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>result should the Company be unable to continue as a going concern. The following paragraphs describe management&#x2019;s plans with regard to these conditions.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company continues to explore sources of additional financing (including potential agreements with strategic partners &#x2013; both financial and ag-industry) to satisfy its current and future operating and capital expenditure requirements as it is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> currently generating any significant revenues.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company received total proceeds of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$452,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$761,000</div> from the sale of its debt and equity securities. Proceeds during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> fiscal years have been lower than in earlier years which reduction has negatively impacted the Company&#x2019;s business development efforts.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company received approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$307,000</div> from the sale of its debt and equity securities, which is lower than previous years.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During fiscal years <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and through the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company experienced greater difficulty in raising equity funding than in the prior years. As a result, the Company faced, and continues to face, significant cash flow management challenges due to working capital constraints. To partially mitigate these working capital constraints, the Company&#x2019;s core senior management and several key employees and consultants have been deferring (and continue to defer) all or part of their cash compensation and/or are accepting compensation in the form of securities of the Company (Notes <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div>) and members of the Company&#x2019;s senior management have made loans to the Company (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>). During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>senior management and certain core employees and consultants agreed to a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div>-time extinguishment of liabilities owed by the Company which in aggregate totaled <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,404,000.</div> Additionally, the Company made reductions in its personnel during the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2014 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015.</div> The constraint on available resources has had, and continues to have, negative effects on the pace and scope of the Company&#x2019;s efforts to develop its business. The Company has had to delay payment of trade obligations and has had to economize in many ways that have potentially negative consequences. If the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have greater success in its efforts to raise needed funds during the remainder of the current fiscal year (and subsequent periods), management will need to consider deeper cuts (including additional personnel cuts) and curtailment of operations (including possibly Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> operations) and/or research and development activities.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company will need to obtain additional capital to fund its operations and technology development, to satisfy existing creditors, to develop Projects (including Integrated Projects) (including the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> facility) and CAFO Retrofit waste remediation systems and to continue to operate the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> facility. The Company anticipates that it will seek to raise from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,500,000</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50,000,000</div> or more debt and/or equity through joint ventures, strategic partnerships and/or sale of its equity securities (common, preferred and/or hybrid) and/or debt (including convertible) securities, and/or through use of &#x2018;rights&#x2019; and/or warrants (new and/or existing) during the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> months. However, as discussed above, there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance, especially in light of the difficulties the Company has experienced in recent periods and the extremely unsettled capital markets that presently exist (especially for companies like us), that the Company will be able to obtain the funds that it needs to stay in business, complete its technology development or to successfully develop its business and Projects.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">There is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> realistic likelihood that funds required during the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> months (or in the periods immediately thereafter) for the Company&#x2019;s basic operations and/or proposed Projects will be generated from operations. Therefore, the Company will need to raise sufficient funds from external sources such as debt or equity financings or other potential sources. The lack of sufficient additional capital resulting from the inability to generate cash flow from operations and/or to raise capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business. Further, there can be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance that any such required funds, if available, will be available on attractive terms or that they will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a significantly dilutive effect on the Company&#x2019;s existing shareholders. All of these factors have been exacerbated by the extremely limited and unsettled credit and capital markets presently existing for small companies like Bion.</div></div> 303189 308347 1000 1980 140502 14875 14212 0.025 33500 32000 0.01 0.01 0.01 0.01 0.01 0.01 0.01 100 50000 50000 50000 50000 60000 60000 200 200 0 0 0 0 200 200 200 0 0 0 0 4105 6426 22850 452000 761000 307000 18000 30500 40001 40001 -2463000 -4522000 -2770999 -1960337 -1730412 -582290 -2768513 -2486 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PROPERTY AND EQUIPMENT:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Property and equipment consists of the following:</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-width: 700px;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">June 30,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Machinery and equipment</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,222,670</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,222,670</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Buildings and structures</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">401,470</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">401,470</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Computers and office equipment</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">171,613</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">171,613</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,795,753</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,795,753</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Less accumulated depreciation</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,793,869</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,792,561</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;" nowrap="nowrap">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,884</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,192</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> </table> </div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Management reviewed property and equipment for impairment as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016 </div>and determined that the carrying amount of property and equipment related to the Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> 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 <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> was measured at estimated fair value on a non-recurring basis using level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> inputs, which resulted in an impairment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,684,562</div> of the property and equipment for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016. </div>As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>the net book value of Kreider <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> was zero. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>management believes that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> additional impairment exists.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Depreciation expense was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$436</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$502</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,308</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,507</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively.</div></div> 2795753 2795753 1884 3192 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Property and equipment:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Property and equipment are stated at cost and are depreciated, when placed into service, using the straight-line method over the estimated useful lives of the related assets, generally <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twenty</div> years. The Company capitalizes all direct costs and all indirect incrementally identifiable costs related to the design and construction of its Integrated Projects. The Company has elected to expense all costs and filing fees related to obtaining patents (resulting in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> related asset being recognized in the Company&#x2019;s balance sheet) because the Company believes such costs and fees are immaterial (in the context of the Company&#x2019;s total costs/expenses) and have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> direct relationship to the value of the Company&#x2019;s patents. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be recoverable. An impairment loss would be recognized based on the amount by which the carrying value of the assets or asset group exceeds its estimated fair value, and is recognized as a loss from operations.</div></div></div></div></div></div></div></div></div></div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">June 30,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Machinery and equipment</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,222,670</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,222,670</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Buildings and structures</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">401,470</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">401,470</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Computers and office equipment</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">171,613</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">171,613</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,795,753</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,795,753</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Less accumulated depreciation</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,793,869</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,792,561</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,884</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,192</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> P3Y P20Y <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LOANS PAYABLE - AFFILIATES:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>Mark A. Smith (&#x201c;Smith&#x201d;), the Company&#x2019;s President, had loaned the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$18,000</div> for working capital needs. During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>Dominic Bassani (&#x201c;Bassani&#x201d;), the Company&#x2019;s Chief Executive Officer was repaid <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$12,500</div> for loans he had previously made to the Company. The loans are non-interest bearing, are non-collateralized and will be repaid when the Board of Directors determines there is adequate cash available.</div></div> 2742000 12500 12500 680436 85802 1125937 324127 -121445479 -118676966 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Revenue Recognition:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Revenues are generated from the sale of nutrient reduction credits. The Company recognizes revenue from the sale of nutrient credits when there is persuasive evidence that an arrangement exists, when title has passed, the price is fixed or determinable, and collection is reasonably assured.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company expects that technology license fees will be generated from the licensing of Bion&#x2019;s integrated system. The Company anticipates that it will charge its customers a non-refundable up-front technology license fee, which will be recognized over the estimated life of the customer relationship. In addition, any on-going technology license fees will be recognized as earned based upon the performance requirements of the agreement. Annual waste treatment fees will be recognized upon receipt. Revenues, if any, from the Company&#x2019;s interest in Integrated Projects will be recognized when the entity in which the Integrated Project has been developed recognizes such revenue.</div></div></div></div></div></div></div></div></div></div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Warrants</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,176,269</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,382,831</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Options</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,827,225</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,520,037</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Convertible debt</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,337,805</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,517,079</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Convertible preferred stock</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,750</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,750</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 52%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shares issued &#x2013; beginning of period</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,011,939</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,784,363</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,748,213</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,573,057</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shares held by subsidiaries (Note 7)</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shares outstanding &#x2013; beginning of period</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,307,630</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,080,054</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,043,904</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22,868,748</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Weighted average shares for fully vested stock bonuses</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">289,051</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Weighted average shares issued during the period</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">158,184</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">268,927</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">209,903</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">249,827</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Basic weighted average shares &#x2013;&nbsp; end of period</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,465,814</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,348,981</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,253,807</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,407,626</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 52%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">General and administrative:</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Fair value of stock/warrant bonuses expensed</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,500</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,723</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,830</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Change in fair value from modification of option terms</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">243,761</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">166,031</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Change in fair value from modification of warrant terms</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,091</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">163,956</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Fair value of stock options expensed</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">682,485</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,134</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">782,135</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">112,699</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 18pt; text-align: left;">Total</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">691,076</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,134</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,198,575</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">285,560</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 52%;">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Research and development:</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Fair value of stock bonus expensed</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,098</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,954</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Change in fair value from modification of option terms</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">105,895</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,440</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Change in fair value from modification of warrant terms</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">219</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">132,896</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Fair value of stock options expensed</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">587,215</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">587,215</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,251</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 18pt; text-align: left;">Total</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">587,434</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">841,104</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">42,645</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Options</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Weighted Average</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Grant-Date Fair</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Value</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Nonvested at July 1, 2017</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,000</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.46</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Granted</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,647,500</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.52</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Vested</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,672,500</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.51</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Nonvested at March 31, 2018</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 52%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Options</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Weighted-</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Average</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Exercise</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Price</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Weighted-</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Average</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Remaining</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Contractual</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Life</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Aggregate</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Intrinsic</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Value</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Outstanding at July 1, 2017</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,545,037</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.42</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.9</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">176,575</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: justify;">Granted</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,647,500</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.76</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: justify;">Exercised</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: justify;">Forfeited</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: justify;">Expired</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(365,312</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Outstanding at March 31, 2018</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,827,225</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.11</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.0</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Exercisable at March 31, 2018</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,827,225</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.11</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.0</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 52%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Weighted</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Average,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&nbsp;</td> <td colspan="4" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 133%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Range,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Weighted</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Average,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&nbsp;</td> <td colspan="4" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 133%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Range,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Volatility</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">68%</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">79</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">78%</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">86</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Dividend yield</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Risk-free interest rate</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.44</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.75%</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.64</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.14</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.82%</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.17</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Expected term (years)</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> 349656 119350 68000 2101160 481565 0.74 0.68 0.75 0.79 0.78 0.86 0.0244 0.0175 0.0264 0.0114 0.0082 0.0117 30000000 6827225 1.11 365312 150000 250000 2647500 294500 150000 100000 75000 600000 450000 190000 0.52 176575 6634600 4545037 6827225 1.42 1.11 243761 166031 105895 11440 0.90 0.76 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Stock-based compensation:</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company follows the provisions of Accounting Standards Codification (&#x201c;ASC&#x201d;) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718,</div> which generally requires that share-based compensation transactions be accounted and recognized in the statement of income based upon their grant date fair values.</div></div></div></div></div></div></div></div></div></div></div></div> 0.66 0.91 1 0.75 0.75 P10Y P5Y P3Y P6Y P4Y P3Y P4Y P4Y 25000 0.46 P2Y328D P4Y 1376250 151770 2672500 0.51 0.50 24748213 25327394 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIGNIFICANT ACCOUNTING POLICIES</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Principles of consolidation:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Bion Integrated Projects Group, Inc. (&#x201c;Projects Group&#x201d;), Bion Technologies, Inc., BionSoil, Inc., Bion Services, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA1,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">PA2;</div> and its <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">58.9%</div> owned subsidiary, Centerpoint Corporation (&#x201c;Centerpoint&#x201d;). All significant intercompany accounts and transactions have been eliminated in consolidation.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The accompanying consolidated financial statements have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (&#x201c;SEC&#x201d;). The consolidated financial statements reflect all adjustments (consisting of only normal recurring entries) that, in the opinion of management, are necessary to present fairly the financial position at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>and the results of operations and cash flows of the Company for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> Operating results for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> necessarily indicative of the results that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be expected for the year ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018.</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Property and equipment:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Property and equipment are stated at cost and are depreciated, when placed into service, using the straight-line method over the estimated useful lives of the related assets, generally <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twenty</div> years. The Company capitalizes all direct costs and all indirect incrementally identifiable costs related to the design and construction of its Integrated Projects. The Company has elected to expense all costs and filing fees related to obtaining patents (resulting in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> related asset being recognized in the Company&#x2019;s balance sheet) because the Company believes such costs and fees are immaterial (in the context of the Company&#x2019;s total costs/expenses) and have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> direct relationship to the value of the Company&#x2019;s patents. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be recoverable. An impairment loss would be recognized based on the amount by which the carrying value of the assets or asset group exceeds its estimated fair value, and is recognized as a loss from operations.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Stock-based compensation:</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company follows the provisions of Accounting Standards Codification (&#x201c;ASC&#x201d;) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718,</div> which generally requires that share-based compensation transactions be accounted and recognized in the statement of income based upon their grant date fair values.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">&nbsp;</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Derivative Financial Instruments: </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Pursuant to ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">815</div> &#x201c;Derivatives and Hedging&#x201d; (&#x201c;Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">815&#x201d;</div>), the Company reviews all financial instruments for the existence of features which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>require fair value accounting and a related mark-to-market adjustment at each reporting period end. Once determined, the Company assesses these instruments as derivative liabilities. The fair value of these instruments is adjusted to reflect the fair value at each reporting period end, with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Warrants:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company has issued warrants to purchase common shares of the Company. Warrants are valued using a fair value based method, whereby the fair value of the warrant is determined at the warrant issue date using a market-based option valuation model based on factors including an evaluation of the Company&#x2019;s value as of the date of the issuance, consideration of the Company&#x2019;s limited liquid resources and business prospects, the market price of the Company&#x2019;s stock in its mostly inactive public market and the historical valuations and purchases of the Company&#x2019;s warrants. When warrants are issued in combination with debt or equity securities, the warrants are valued and accounted for based on the relative fair value of the warrants in relation to the total value assigned to the debt or equity securities and warrants combined.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Fair value measurements:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The Company uses a fair value hierarchy that has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> levels of inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> &#x2013; quoted prices (unadjusted) in active markets for identical assets or liabilities;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> &#x2013; observable inputs other than Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> &#x2013; assets and liabilities whose significant value drivers are unobservable.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company&#x2019;s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The fair value of cash and accounts payable approximates their carrying amounts due to their short-term maturities. The fair value of the loan payable is indeterminable at this time due to the nature of the arrangement with a state agency and the fact that it is in default. The fair value of the redeemable preferred stock approximates its carrying value due to the dividends accrued on the preferred stock which are reflected as part of the redemption value. The fair value of the loan payable &#x2013; affiliates, deferred compensation and convertible notes payable - affiliates are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> practicable to estimate due to the related party nature of the underlying transactions.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Revenue Recognition:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Revenues are generated from the sale of nutrient reduction credits. The Company recognizes revenue from the sale of nutrient credits when there is persuasive evidence that an arrangement exists, when title has passed, the price is fixed or determinable, and collection is reasonably assured.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company expects that technology license fees will be generated from the licensing of Bion&#x2019;s integrated system. The Company anticipates that it will charge its customers a non-refundable up-front technology license fee, which will be recognized over the estimated life of the customer relationship. In addition, any on-going technology license fees will be recognized as earned based upon the performance requirements of the agreement. Annual waste treatment fees will be recognized upon receipt. Revenues, if any, from the Company&#x2019;s interest in Integrated Projects will be recognized when the entity in which the Integrated Project has been developed recognizes such revenue.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">L</div><div style="display: inline; font-weight: bold;">oss per share:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Basic loss per share amounts are calculated using the weighted average number of shares of common stock outstanding during the period. Diluted loss per share assumes the conversion, exercise or issuance of all potential common stock instruments, such as options or warrants, unless the effect is to reduce the loss per share or increase the earnings per share. During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the basic and diluted loss per share was the same, as the impact of potential dilutive common shares was anti-dilutive.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The following table represents the warrants, options and convertible securities excluded from the calculation of basic loss per share:</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div> <table style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-width: 700px;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Warrants</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,176,269</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,382,831</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Options</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,827,225</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,520,037</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Convertible debt</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,337,805</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,517,079</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Convertible preferred stock</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,750</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,750</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> </table> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The following is a reconciliation of the denominators of the basic and diluted loss per share computations for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017:</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div> <table style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-width: 700px;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 52%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shares issued &#x2013; beginning of period</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,011,939</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,784,363</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,748,213</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,573,057</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shares held by subsidiaries (Note 7)</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(704,309</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;" nowrap="nowrap">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shares outstanding &#x2013; beginning of period</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,307,630</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,080,054</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,043,904</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22,868,748</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Weighted average shares for fully vested stock bonuses</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">289,051</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Weighted average shares issued during the period</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">158,184</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">268,927</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">209,903</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">249,827</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Basic weighted average shares &#x2013;&nbsp; end of period</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,465,814</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,348,981</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24,253,807</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,407,626</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> </table> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Recent Accounting Pronouncements:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company&#x2019;s financial reporting, the Company undertakes a study to determine the consequences of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company&#x2019;s financial statements properly reflect the change.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the Financial Accounting Standards Board (&#x201c;FASB&#x201d;) issued Accounting Standards Update (&#x201c;ASU&#x201d;) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> &#x201c;Revenue from Contracts from Customers,&#x201d; which supersedes the revenue recognition requirements in &#x201c;Revenue Recognition (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605</div>),&#x201d; and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> is effective for fiscal years, and interim periods within those years, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017 </div>and earlier application is permitted only as of annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div>Once the Company begins to generate revenue, the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> anticipate any material impact on its operations and financial statements.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2014, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> &#x201c;Presentation of Financial Statements &#x2013; Going Concern: Disclosures of Uncertainties about an Entity&#x2019;s Ability to Continue as a Going Concern.&#x201d; The new standard requires management to perform interim and annual assessments of an entity&#x2019;s ability to continue as a going concern within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity&#x2019;s ability to continue as a going concern. The guidance is effective for annual periods ending after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016, </div>and interim periods thereafter, early application is permitted. The adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material impact on the Company&#x2019;s financial statements.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2017, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> &#x201c;Scope of Modification Accounting&#x201d; which clarifies when changes to the terms or conditions of a share-based payment awards must be accounted for as modifications. The new guidance will reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> will be applied prospectively to awards modified on or after the adoption date. The guidance is effective for annual periods, and interim periods within those annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>with early adoption permitted. The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> anticipate any material impact on the Company&#x2019;s financial statements upon adoption.</div></div> 18849 75000 25000 3750 18849 267331 213000 120000 307080 80001 14631 2000 14631 100000 -13818592 -15176614 103540352 -40000 -118676966 57332 -15119282 107801537 -174650 -121445479 54846 -13763746 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCKHOLDERS' EQUITY:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Series B Preferred stock:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2014, </div>the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">200</div> shares of Series B redeemable convertible Preferred stock outstanding with a par value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.01</div> per share, convertible at the option of the holder at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.00</div> per share, with dividends accrued and payable at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.5%</div> per quarter. The Series B Preferred stock is mandatorily redeemable at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$100</div> per share by the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> years after issuance and accordingly was classified as a liability. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">200</div> shares have reached their maturity date, but due to the cash constraints of the Company have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been redeemed.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company declared dividends of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,000</div> respectively. During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company declared dividends of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$500</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,500,</div> respectively. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>accrued dividends payable are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$13,500.</div> The dividends are classified as a component of operations as the Series B Preferred stock is presented as a liability in these financial statements.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Common stock:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Holders of common stock are entitled to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> vote per share on all matters to be voted on by common stockholders. In the event of liquidation, dissolution or winding up of the Company, the holders of common stock are entitled to share in all assets remaining after liabilities have been paid in full or set aside and the rights of any outstanding preferred stock have been satisfied. Common stock has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> preemptive, redemption or conversion rights. The rights of holders of common stock are subject to, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be adversely affected by, the rights of the holders of any outstanding series of preferred stock or any series of preferred stock the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>designate in the future.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Centerpoint holds <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">704,309</div> shares of the Company&#x2019;s common stock. These shares of the Company&#x2019;s common stock held by Centerpoint are for the benefit of its shareholders without any beneficial interest.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,849</div> shares of the Company&#x2019;s common stock at prices ranging from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.66</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.91</div> per share for services valued at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$14,631,</div> in the aggregate, to a consultant and an employee.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company entered into subscription agreements to sell units for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per unit, with each unit consisting of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of the Company&#x2019;s restricted common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> warrant to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> half of a share of the Company&#x2019;s restricted common stock for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per share with expiry dates of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and pursuant thereto, the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">267,331</div> units for total proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$200,497,</div> net proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$185,622</div> after commissions. The Company allocated the proceeds from the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">267,331</div> shares and the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">133,666</div> warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.05</div> per warrant. As a result, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$6,152</div> was allocated to the warrants and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$194,345</div> was allocated to the shares, and both were recorded as additional paid in capital.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company entered into subscription agreements to sell units for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.50</div> per unit, with each unit consisting of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of the Company&#x2019;s restricted common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> warrant to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> half of a share of the Company&#x2019;s restricted common stock for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per share with expiry dates of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2018 </div>and pursuant thereto, the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">213,000</div> units for total proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$106,500.</div> The Company allocated the proceeds from the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">213,000</div> shares and the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">106,500</div> warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.05</div> per warrant. As a result, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,140</div> was allocated to the warrants and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$103,360</div> was allocated to the shares, and both were recorded as additional paid in capital.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company entered into subscription agreements to exercise certain warrants with expiry dates on or before <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>into restricted shares of the Company&#x2019;s common stock at a reduced exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.50</div> for the period from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 1, 2018 </div>to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018. </div>At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>the Company exercised its right to extend the offering an additional <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> days to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 15, 2018 </div>and therefore any warrants which would have expired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>were automatically extended to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 15, 2018. </div>As the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.50</div> exercise price was a reduction from the original exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75,</div> and due to the limited time in which the warrant holders had to subscribe, the reduction in the offering price was accounted for as an inducement and a conversion inducement of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,000</div> was recorded. As a result of the offering, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">80,001</div> warrants were exercised and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">80,001</div> shares of the Company&#x2019;s restricted common stock were issued resulting in cash proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$40,001</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018.</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Warrants:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company had approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12.2</div> million warrants outstanding, with exercise prices from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.00</div> and expiring on various dates through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2022.</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The weighted-average exercise price for the outstanding warrants is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.07,</div> and the weighted-average remaining contractual life as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.6</div> years.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>warrants to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">322,110</div> shares of common stock of the Company at prices between <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.50</div> per share expired.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company entered into subscription agreements to sell units for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per unit, with each unit consisting of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of the Company&#x2019;s restricted common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> warrant to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> half of a share of the Company&#x2019;s restricted common stock for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per share with expiry dates of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and pursuant thereto, the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">267,331</div> units for total proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$200,497,</div> net proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$185,622</div> after commissions. The Company allocated the proceeds from the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">267,331</div> shares and the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">133,666</div> warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.05</div> per warrant. As a result, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$6,152</div> was allocated to the warrants and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$194,345</div> was allocated to the shares, and both were recorded as additional paid in capital. The Company also issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">89,485</div> warrants to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">89,485</div> shares of the Company&#x2019;s restricted common shares with an exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per share exercisable until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>as commissions related to the above sale of Units.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company entered into subscription agreements to sell units for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.50</div> per unit, with each unit consisting of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of the Company&#x2019;s restricted common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> warrant to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> half of a share of the Company&#x2019;s restricted common stock for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per share with expiry dates of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2018 </div>and pursuant thereto, the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">213,000</div> units for total proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$106,500.</div> The Company allocated the proceeds from the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">213,000</div> shares and the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">106,500</div> warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.05</div> per warrant. As a result, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,140</div> was allocated to the warrants and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$103,360</div> was allocated to the shares, and both were recorded as additional paid in capital.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the Company received an interest bearing, secured promissory note for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$40,000</div> from Bassani as consideration to purchase warrants to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">800,000</div> shares of the Company&#x2019;s restricted common stock, which warrants are exercisable at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> and have expiry dates of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2021 (</div>&#x201c;Bassani Warrant&#x201d;). The promissory note bears interest at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4%</div> per annum, was secured by a perfected security interest in the Bassani Warrant, and was payable on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 15, 2017. </div>Effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 7, 2017 </div>an addendum to the promissory note changed the principal of the note to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$41,513</div> (the original principal of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$40,000</div> plus accrued interest of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,513</div>), changed the maturity date of the note to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2019 </div>and the collateral was changed to Replacement Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> of Bassani&#x2019;s <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> Convertible Note (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div>) with a balance at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 7, 2017 </div>of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$130,000</div> which will be held by the Company.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company received an interest bearing, secured promissory note for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$88,250</div> from Bassani as consideration to purchase warrants to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,765,000</div> shares of the Company&#x2019;s restricted common stock, which warrants are exercisable at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> and have expiry dates of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2020. </div>The warrants have a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">90%</div> exercise bonus (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div>). The promissory note bears interest at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4%</div> per annum, is secured by Bassani&#x2019;s Replacement Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> of Bassani&#x2019;s <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> Convertible Note (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div>) with a balance at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 7, 2017 </div>of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$130,000,</div> which will be held by the Company. The secured promissory note is payable on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2020.</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company received <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> interest bearing, secured promissory notes with an aggregate principal amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$46,400</div> from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> former employees as consideration to purchase warrants to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">928,000</div> shares of the Company&#x2019;s restricted common stock, which warrants are exercisable at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> and have expiry dates of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2020. </div>These warrants have a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">90%</div> exercise bonus (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div>). The promissory notes bear interest at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4%</div> per annum, are secured by a perfected security interest in the warrants, and are payable on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2020.</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">670,000</div> warrants to Smith and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">247,000</div> warrants to a former employee and a consultant to purchase in aggregate <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">917,000</div> shares of the Company&#x2019;s restricted common stock, which warrants are exercisable at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per share and have expiry dates of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2020. </div>The warrants were in exchange for services expensed at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$45,850,</div> in aggregate (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$33,500</div> to Smith). These warrants have a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">90%</div> exercise bonus (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div>). The Company also issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50,000</div> warrants to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> consultants for services valued at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,500,</div> exercisable at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per share which expiry dates ranging from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 1, 2020 </div>to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2023.</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company agreed to extend the expiration dates of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,773,706</div> warrants owned by certain individuals (including <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,329,869</div> owned by Bassani, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">91,371</div> owned by Smith and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,934</div> owned by Schafer) which were scheduled to expire at various dates ranging from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2021. </div>The Company recorded non-cash compensation expense related to the modification of the warrants of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$296,852</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$265,353,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,310</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,197</div> for Bassani, Smith and Schafer, respectively).</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Stock options: </div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company&#x2019;s <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2006</div> Consolidated Incentive Plan, as amended (the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x201c;2006</div> Plan&#x201d;), provides for the issuance of options (and/or other securities) to purchase up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,000,000</div> shares of the Company&#x2019;s common stock. Terms of exercise and expiration of options/securities granted under the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2006</div> Plan <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be established at the discretion of the Board of Directors, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> option <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be exercisable for more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ten</div> years.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the Company approved the issuance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,000</div> shares in stock bonuses to an employee and a consultant with various vesting dates from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 15, 2018 </div>through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 15, 2020. </div>In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2018, </div>the Board of Directors cancelled the stock bonuses previously approved. The Company recorded <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$22,321</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$14,784</div> of non-cash compensation related to the stock bonuses for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company approved the modification of existing stock options held by certain employees and consultants, which extended certain expiration dates. The modifications resulted in incremental non-cash compensation of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$349,656</div> (including <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$119,350</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$68,000</div> for Bassani and Schafer, respectively).</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company recorded compensation expense related to employee stock options of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,269,700</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$6,134</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,369,350</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$135,950</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively. The Company granted <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,647,500</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">294,500</div> options during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The fair value of the options granted during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> were estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions:</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-width: 700px;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 52%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Weighted</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Average,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&nbsp;</td> <td colspan="4" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 133%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Range,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Weighted</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Average,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&nbsp;</td> <td colspan="4" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 133%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Range,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Volatility</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">%</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">68%</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">%</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">79</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">%</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">78%</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">86</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Dividend yield</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Risk-free interest rate</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.44</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">%</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.75%</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.64</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">%</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.14</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">%</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.82%</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.17</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Expected term (years)</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 3%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> </table> </div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The expected volatility was based on the historical price volatility of the Company&#x2019;s common stock. The dividend yield represents the Company&#x2019;s anticipated cash dividend on common stock over the expected term of the stock options. The U.S. Treasury bill rate for the expected term of the stock options was utilized to determine the risk-free interest rate. The expected term of stock options represents the period of time the stock options granted are expected to be outstanding based upon management&#x2019;s estimates.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">A summary of option activity under the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2006</div> Plan for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>is as follows:</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-width: 700px;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 52%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Options</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Weighted-</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Average</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Exercise</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Price</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Weighted-</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Average</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Remaining</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Contractual</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Life</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Aggregate</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Intrinsic</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Value</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Outstanding at July 1, 2017</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,545,037</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.42</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.9</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">176,575</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: justify;">Granted</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,647,500</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.76</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: justify;">Exercised</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: justify;">Forfeited</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: justify;">Expired</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(365,312</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Outstanding at March 31, 2018</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,827,225</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.11</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.0</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Exercisable at March 31, 2018</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,827,225</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.11</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.0</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> </table> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The following table presents information relating to nonvested stock options as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018:</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</div> <div> <table style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-width: 700px;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 70%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Options</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Weighted Average</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Grant-Date Fair</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Value</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Nonvested at July 1, 2017</div> </td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,000</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; border-bottom: 1px none rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.46</div></td> <td style="width: 1%; border-bottom: 1px none rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Granted</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,647,500</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.52</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Vested</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,672,500</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.51</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Nonvested at March 31, 2018</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> </table> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The total fair value of stock options that vested during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,376,250</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$151,770</div> respectively. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> unrecognized compensation cost related to stock options.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Stock-based employee compensation charges in operating expenses in the Company&#x2019;s financial statements for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> are as follows:</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</div> <div> <table style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-width: 700px;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 52%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine months</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">March 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">General and administrative:</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Fair value of stock/warrant bonuses expensed</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,500</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,723</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,830</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Change in fair value from modification of option terms</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">243,761</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">166,031</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Change in fair value from modification of warrant terms</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,091</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">163,956</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Fair value of stock options expensed</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">682,485</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,134</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">782,135</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">112,699</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 18pt; text-align: left;">Total</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">691,076</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,134</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,198,575</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">285,560</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 52%;">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Research and development:</div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Fair value of stock bonus expensed</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,098</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,954</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Change in fair value from modification of option terms</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">105,895</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,440</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Change in fair value from modification of warrant terms</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">219</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">132,896</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 9pt; text-align: left;">Fair value of stock options expensed</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">587,215</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">587,215</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,251</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 18pt; text-align: left;">Total</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">587,434</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">841,104</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">42,645</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> </table> </div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUBSEQUENT EVENTS:</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company has evaluated events that occurred subsequent to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>for recognition and disclosure in the financial statements and notes to the financial statements.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">From <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 1, 2018 </div>through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 8, 2018, </div>the Company has issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,750</div> shares of the Company&#x2019;s common shares to an employee for services valued at approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,000.</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">From <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 1, 2018 </div>through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 8, 2018 </div>the Company has entered into subscription agreements to sell <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">71,000</div> Units of its securities at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.50</div> per Unit for aggregate consideration of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$36,000.</div> Each Unit consists of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of common stock and a callable warrant to purchase &frac12; share of the Company&#x2019;s common shares at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.75</div> per share until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2018.</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">From <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 1, 2018 </div>through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 8, 2018, </div>a consultant has elected to convert deferred compensation of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$60,000</div> under terms similar to the current Unit offering resulting in the issuance of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">120,000</div> shares of the Company&#x2019;s common stock and approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60,000</div> warrants.&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">From <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 1, 2018 </div>through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 8, 2018, </div>Smith has elected to convert his loan payable &#x2013; affiliate balance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$18,000,</div> accounts payable for expenses of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$65,540</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$70,000</div> of deferred compensation into shares of the Company&#x2019;s common stock and warrants under terms similar to the current Unit offering.&nbsp; Smith&#x2019;s conversion results in the issuance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">307,080</div> shares of the Company&#x2019;s common shares stock and the issuance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">153,540</div> warrants.&nbsp;</div></div> 24465814 23348981 24253807 23407626 24465814 23348981 24253807 23407626 xbrli:shares xbrli:pure iso4217:USD iso4217:USD xbrli:shares 0000875729 bnet:ExtensionAgreementOneMember us-gaap:ChiefExecutiveOfficerMember 2012-01-01 2013-12-31 0000875729 bnet:PennvestLoanMember 2012-07-01 2018-03-31 0000875729 2013-05-15 2013-05-15 0000875729 bnet:ExerciseBonusMember bnet:CEOAndPresidentMember 2013-05-15 2013-05-15 0000875729 us-gaap:SeriesBPreferredStockMember 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Entity Filer Category Debt Instrument [Axis] Entity Current Reporting Status Debt Instrument, Name [Domain] Entity Voluntary Filers Entity Well-known Seasoned Issuer us-gaap_CapitalRequiredForCapitalAdequacy Capital Required for Capital Adequacy us-gaap_AdjustmentsToAdditionalPaidInCapitalOther Adjustments to Additional Paid in Capital, Other us-gaap_IncreaseDecreaseInReceivables Decrease in subscription receivable us-gaap_ImpairmentOfLongLivedAssetsHeldForUse Impairment of Long-Lived Assets Held-for-use Issuance of warrants Adjustments to Additional Paid in Capital, Warrant Issued Vesting of options and stock bonuses for services Interest Expense on Deferred Compensation Obligation [Member] This item represents the obligation accrued for interest expense of deferred compensation. bnet_PreferredStockConvertibleOptionPerShare Preferred Stock, Convertible Option Per Share The price per share at which the preferred stock of an entity that has priority over common stock in the distribution of dividends and in the event of liquidation of the entity is convertible to an option. 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Granted, options (in shares) Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period us-gaap_StockIssuedDuringPeriodSharesNewIssues Stock Issued During Period, Shares, New Issues Issuance of common stock for services Stock Issued During Period, Value, Issued for Services September 2015 Convertible Notes [Member] Represents information about the September 2015 convertible notes. Issuance of common stock for services (in shares) Stock Issued During Period, Shares, Issued for Services bnet_DeferredCompensationConversionDays Deferred Compensation Conversion Days Number of specified trading days during the end of a month for which the share price of common stock during that period will be applied to deferred compensation if converted. us-gaap_LiabilitiesAndStockholdersEquity Total liabilities and deficit Executive Vice Chairman [Member] Represents the Executive Vice Chairman. bnet_DeferredCompensationConsecutiveTradingDays Deferred Compensation Consecutive Trading Days Number of specified trading days during the end of a month for which the share price of common stock during that period will be applied to deferred compensation if converted. us-gaap_StockIssuedDuringPeriodValueNewIssues Stock Issued During Period, Value, New Issues bnet_DeferredCompensationSharesIssuedUponConversion Deferred Compensation Shares Issued upon Conversion Number of shares issued upon the conversion of deferred compensation. Consultants [Member] Consultants of the Company. Individual Employee [Member] Represents individual employee. Research and development (including stock-based compensation (Note 8)) Accumulated deficit Former Employee [Member] Represents former employee. bnet_TermLoanPeriodForInterestOnlyPayments Term Loan, Period for Interest Only Payments Duration of the required periodic payments of interest only. Debt Disclosure [Text Block] Interest expense, net Interest Expense, Total us-gaap_InterestExpenseDebt Interest Expense, Debt, Total us-gaap_DisclosureTextBlockAbstract Notes to Financial Statements Accrued interest on loan payable, deferred compensation and other us-gaap_InterestExpenseRelatedParty Interest Expense, Related Party Subsequent Event [Member] bnet_NumberOfWarrantsPerUnit Number of Warrants Per Unit The number of warrants per unit. bnet_NumberOfSharesPerUnit Number of Shares Per Unit Represents the number of the Company's shares per unit. January 2015 Convertible Notes [Member] Represents information pertaining to the January 2015 Convertible Notes. bnet_ConversionPricePerUnit Conversion Price Per Unit Represents the conversion price on a per Unit basis of convertible debt instruments. bnet_CommonStockVotingRightsVotesPerShare Common Stock Voting Rights Votes Per Share Voting rights per share of common stock. Subsequent Event Type [Axis] bnet_ConvertiblePreferredStockRedemptionPeriod Convertible Preferred Stock Redemption Period Redemption period of convertible preferred stock. Subsequent Event Type [Domain] bnet_WeightedAverageRemainingContractualLifeForOutstandingWarrants Weighted Average Remaining Contractual Life for Outstanding Warrants Represents weighted average remaining contractual life for outstanding warrants. bnet_WeightedAverageExercisePriceForOutstandingWarrants Weighted Average Exercise Price for Outstanding Warrants Represents weighted average exercise price for outstanding warrants. Subsequent Events [Text Block] Employees and Consultants [Member] Represents information pertaining to employees and consultants of the Company. Expired [Member] Represents expired warrants in a given period. Fair Value Measurement, Policy [Policy Text Block] Stock-based compensation us-gaap_ShareBasedCompensation Share-based Compensation, Total Extension Agreement One [Member] This item represents the first extension agreement. Title of Individual [Axis] Relationship to Entity [Domain] Earnings Per Share, Policy [Policy Text Block] Revenue Operating expenses: Issuance of common stock to satisfy deferred compensation and accounts payable Extension Agreement Two [Member] This item represents the second extension agreement. Depreciation expense Depreciation Depreciation, Total Series B Redeemable Convertible Preferred stock, $0.01 par value, 50,000 shares authorized; 200 shares issued and outstanding, liquidation preference of $33,500 and $32,000, respectively (Note 8) us-gaap_SharesIssuedPricePerShare Shares Issued, Price Per Share us-gaap_AssetsCurrent Total current assets Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] Stockholders' Equity Note Disclosure [Text Block] Modification of options This item represents the adjustment To additional paid in capital as a result of modification of options. 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Preferred stock, issued (in shares) Cash paid for interest Two Former Employees [Member] Information related to two former employees. Prepaid expenses Proceeds from sale of units Proceeds from the Sale of Units This item represents the cash inflow related to the sale of units. Warrants in Connection with Services [Member] Information related to warrants in connection with services. Property, Plant and Equipment Disclosure [Text Block] Warrants with Extended Expiration Dates [Member] Information about warrants that were granted extended expiration dates. Property, Plant and Equipment [Table Text Block] Former Employee and a Consultant [Member] Information related to a former employee and a consultant. Preferred stock, authorized (in shares) Warrants Issued as Commissions [Member] Information about warrants issued as commission. Preferred stock, par value (in dollars per share) Preferred Stock, Par or Stated Value Per Share Loan payable and accrued interest (Note 6) Carrying value as of the balance sheet date of portion of long-term loans payable due within one year or the operating cycle if longer, including accrued interest and late charges. Equity Issuances Warrants Policy [Policy Text Block] Disclosure of accounting policy for its outstanding warrants. us-gaap_PreferredStockRedemptionPricePerShare Preferred Stock, Redemption Price Per Share us-gaap_PropertyPlantAndEquipmentUsefulLife Property, Plant and Equipment, Useful Life us-gaap_PreferredStockDividendRatePercentage Preferred Stock, Dividend Rate, Percentage bnet_AccruedInterestAndLateChargesPayable Accrued Interest and Late Charges Payable The carrying amount of accrued interest and late charges payable to lender. Noncontrolling interest CASH FLOWS FROM OPERATING ACTIVITIES bnet_WorkingCapital Working Capital This item represents the capital available for operations for the Company. Subscriptions Receivable [Member] This item represents the subscriptions of shares that have not yet been fulfilled. Revenue Recognition, Policy [Policy Text Block] Statement [Line Items] Replacement Note Held as Collateral [Member] Information related to a replacement not that is being held by the Company as collateral for subscription receivable promissory note. Subscription Agreement [Member] This item represents transactions occurring related to one or more subscription agreements. bnet_DeferredCompensationMaximumConvertibleAmount Deferred Compensation, Maximum Convertible Amount The maximum amount of deferred compensation that is deemed to be convertible. Additional paid-in capital Executive Vice Chairman and Other Board Member [Member] Information related to the executive vice chairman and other board member. Centerpoint [Member] This item represents the separate legal entity of Centerpoint. bnet_DeferredCompensationStockConversionPricePerShare Deferred Compensation, Stock Conversion, Price Per Share The price per share in which an individual can convert their deferred compensation. bnet_GainLossOnExtinguishmentOfLiabilities Gain (Loss) on Extinguishment of Liabilities Gain on extinguishment of liabilities (Note 5) Gain on extinguishment of liabilities The amount of gain (loss) from the extinguishment of deferred compensation liabilities. Property, Plant and Equipment, Policy [Policy Text Block] Property, Plant and Equipment, Type [Axis] us-gaap_NonoperatingIncomeExpense Total other expense (income) Property, Plant and Equipment, Type [Domain] Convertible Preferred Stock Antidilutive Securities [Member] This item represents the convertible preferred stock securities that have been excluded from the computation of earnings per share. bnet_ClassOfWarrantOrRightIssuedDuringPeriod Class of Warrant or Right, Issued During Period The number of warrants or rights issued during period. Current assets: Conversion inducement Common Stock Conversions, Inducements The deficit of (1) the fair value of all securities and other consideration transferred in transactions by the registrant to the holders of the convertible common stock over (2) the fair value of securities issuable pursuant to the original conversion terms, during the accounting period. bnet_SharebasedCompensationArrangementBySharebasedPaymentAwardPlanModificationNoncashCompensationExpense Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Non-Cash Compensation Expense Represents the non-cash compensation expense related to the modification of a plan. CEO, President, and Executive Vice Chairman [Member] Represents the CEO, President, and Executive Vice Chairman of the company. us-gaap_NetCashProvidedByUsedInFinancingActivities Net cash provided by financing activities us-gaap_Liabilities Total liabilities Sale of Stock [Axis] Sale of Stock [Domain] us-gaap_OperatingIncomeLoss Loss from operations us-gaap_NetCashProvidedByUsedInOperatingActivities Net cash used in operating activities us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease Net decrease in cash Derivatives, Policy [Policy Text Block] bnet_TermLoanPeriodForAmortizationOfPrincipal Term Loan, Period for Amortization of Principal Duration of the amortization of principal. us-gaap_DeferredCompensationLiabilityCurrentAndNoncurrent Deferred Compensation Liability, Current and Noncurrent, Total Secured Promissory Note, Consideration for Bassani Warrants [Member] Information concerning the secured promissory note that was received as consideration toward the Bassani Warrants. Secured Promissory Note, Consideration for Warrants Expired on December 31, 2020 [Member] Information concerning the secured promissory note that was received as consideration toward the Bassani Warrants that expires on December 31, 2020. Secured Promissory Note, Consideration for Warrants Issue to Former Employees [Member] Information concerning the secured promissory note that was used to as consideration toward warrants issued to former employees. Change in fair value from modification of warrant terms The amount of change in fair value of share-based payment awards due to modifications in warrants terms. us-gaap_AccountsPayableCurrentAndNoncurrent Accounts Payable, Total us-gaap_PaymentsOfStockIssuanceCosts Commissions on sale of units Subscription Agreement Three [Member] Represents the information pertaining to the third subscription agreement during the period. Noncontrolling Interest [Member] us-gaap_ProceedsFromIssuanceOrSaleOfEquity Proceeds from Issuance or Sale of Equity, Total Proceeds from exercise of warrants Proceeds from Warrant Exercises Two Consultants [Member] Represents the information pertaining to two consultants. Retained Earnings [Member] bnet_FinancingReceivableIncreaseAccruedInterest Financing Receivable , Increase, Accrued Interest Amount of accrued interest are included into the balance of financing receivable during the period. Bassani Warrants, Expired on December 31, 2020 [Member] Represents the Bassani Warrants that would expire on December 31, 2020. Proceeds from sale of common stock bnet_FinancingReceivableInterestRateStatedPercentage Financing Receivable, Interest Rate, Stated Percentage Contractual interest rate for financing receivable, under the agreement. Bassani Warrants, Expired on December 31, 2021 [Member[ Represents the Bassani Warrants that expired on December 31, 2021. Stock Option Held by Employees and Consultants [Member] Represents stock option that held by employees and consultants. Purchase of warrants for subscription receivable - affiliates Amount of subscription receivable from investors who have been allocated warrants. Additional Paid-in Capital [Member] Common Stock [Member] Preferred Stock [Member] Equity Components [Axis] Equity Component [Domain] bnet_SharesHeldBySubsidiaries Shares Held by Subsidiaries Shares held by subsidiaries (Note 7) (in shares) Number of shares held by subsidiaries. us-gaap_ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 Class of Warrant or Right, Exercise Price of Warrants or Rights Weighted average shares for fully vested stock bonuses (in shares) This item represents the weighted average shares outstanding for fully vested stock bonuses. Deficit: Class of Warrant or Right [Axis] Class of Warrant or Right [Domain] bnet_ComputersAndOfficeEquipmentGross Computers and office equipment This item represents the gross amount computers and office equipment held by the Company. us-gaap_ClassOfWarrantOrRightOutstanding Class of Warrant or Right, Outstanding us-gaap_ConvertibleNotesPayable Convertible Notes Payable, Total us-gaap_ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights Class of Warrant or Right, Number of Securities Called by Warrants or Rights bnet_AccruedInterestOnDeferredCompensationAndOtherExpenses Accrued Interest on Deferred Compensation and Other Expenses This item represents the interest accrued on deferred compensation. bnet_InterestRateOnDeferredCompensation Interest Rate on Deferred Compensation This item represents the interest rate that is accrued on deferred compensation. bnet_ClassOfWarrantOrRightReducedExercisePriceFromPreviousExercisePriceOfWarrantsOrRights Class of Warrant or Right, Reduced Exercise Price From Previous Exercise Price of Warrants or Rights The reduced exercise price per share or per unit of warrants or rights outstanding. us-gaap_RepaymentsOfLongTermDebt Repayments of Long-term Debt, Total us-gaap_RepaymentsOfRelatedPartyDebt Repayments of Related Party Debt Repayment of loans payable - affiliates General and Administrative Expense [Member] Accounting Policies [Abstract] Significant Accounting Policies [Text Block] Sale of units Sale of Units, Value Represents the equity impact of units issued during the period. 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New Smith Note [Member] Represents the New Smith Note. FY2016 Extension Agreement [Member] Extension Bonus [Member] bnet_DebtInstrumentConvertibleConversionPriceInceasePercentage Debt Instrument, Convertible Conversion Price, Incease, Percentage Represents the percentage increase of the convertible conversion price. bnet_MonthlyOfficersCashCompensation Monthly Officers' Cash Compensation Represents information about monthly officers' cash compensation. Weighted-average number of common shares outstanding: Basic and diluted (in shares) us-gaap_DueToAffiliateCurrentAndNoncurrent Due to Affiliate us-gaap_SharePrice Share Price bnet_WarrantFairValuePricePerShare Warrant Fair Value Price Per Share Price per share of warrant, based upon fair value. us-gaap_AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount Antidilutive securities (in shares) Net loss applicable to Bion's common stockholders per basic and diluted common share (in dollars per share) Loans payable - affiliates (Note 4) Statement [Table] Scenario [Axis] Scenario, Unspecified [Domain] Statement of Financial Position [Abstract] Basic weighted average shares – end of period (in shares) Statement of Cash Flows [Abstract] Statement of Stockholders' Equity [Abstract] Income Statement [Abstract] us-gaap_LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree Long-term Debt, Maturities, Repayments of Principal in Year Three us-gaap_LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour Long-term Debt, Maturities, Repayments of Principal in Year Four us-gaap_LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive Long-term Debt, Maturities, Repayments of Principal in Year Five us-gaap_LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFive Long-term Debt, Maturities, Repayments of Principal after Year Five us-gaap_LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months us-gaap_LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo Long-term Debt, Maturities, Repayments of Principal in Year Two Pennvest Loan [Member] This item represents the Pennvest Loan. 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Document And Entity Information
9 Months Ended
Mar. 31, 2018
shares
Document Information [Line Items]  
Entity Registrant Name BION ENVIRONMENTAL TECHNOLOGIES INC
Entity Central Index Key 0000875729
Trading Symbol bnet
Current Fiscal Year End Date --06-30
Entity Filer Category Smaller Reporting Company
Entity Current Reporting Status Yes
Entity Voluntary Filers No
Entity Well-known Seasoned Issuer No
Entity Common Stock, Shares Outstanding (in shares) 24,623,085
Document Type 10-Q
Document Period End Date Mar. 31, 2018
Document Fiscal Year Focus 2018
Document Fiscal Period Focus Q3
Amendment Flag false
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
Mar. 31, 2018
Jun. 30, 2017
Current assets:    
Cash $ 40,403 $ 72,932
Prepaid expenses 4,105 6,426
Deposits and other receivables 1,000 1,980
Total current assets 45,508 81,338
Property and equipment, net (Note 3) 1,884 3,192
Total assets 47,392 84,530
Current liabilities:    
Accounts payable and accrued expenses 946,590 865,841
Loans payable - affiliates (Note 4) 18,000
Deferred compensation (Note 5) 345,929 2,107,262
Convertible notes payable - affiliates (Note 7) 88,927
Loan payable and accrued interest (Note 6) 8,970,818 8,796,322
Total current liabilities 10,312,237 11,887,752
Convertible notes payable - affiliates (Note 7) 3,498,901 3,316,060
Total liabilities 13,811,138 15,203,812
Deficit:    
Common stock, no par value, 100,000,000 shares authorized, 25,327,394 and 24,748,213 shares issued, respectively; 24,623,085 and 24,043,904 shares outstanding, respectively
Additional paid-in capital 107,801,537 103,540,352
Subscription receivable - affiliates (Note 8) (174,650) (40,000)
Accumulated deficit (121,445,479) (118,676,966)
Total Bion's stockholders’ deficit (13,818,592) (15,176,614)
Noncontrolling interest 54,846 57,332
Total deficit (13,763,746) (15,119,282)
Total liabilities and deficit 47,392 84,530
Series B Preferred Stock [Member]    
Current liabilities:    
Series B Redeemable Convertible Preferred stock, $0.01 par value, 50,000 shares authorized; 200 shares issued and outstanding, liquidation preference of $33,500 and $32,000, respectively (Note 8) 30,900 29,400
Series A Preferred Stock [Member]    
Deficit:    
Preferred stock
Series C Preferred Stock [Member]    
Deficit:    
Preferred stock
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Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
Mar. 31, 2018
Jun. 30, 2017
Common stock, par value (in dollars per share) $ 0 $ 0
Common stock, authorized (in shares) 100,000,000 100,000,000
Common stock, issued (in shares) 25,327,394 24,748,213
Common stock, outstanding (in shares) 24,623,085 24,043,904
Series B Preferred Stock [Member]    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 50,000 50,000
Preferred stock, issued (in shares) 200 200
Preferred stock, outstanding (in shares) 200 200
Preferred stock, liquidation $ 33,500 $ 32,000
Series A Preferred Stock [Member]    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 50,000 50,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Series C Preferred Stock [Member]    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 60,000 60,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Mar. 31, 2018
Mar. 31, 2017
Revenue
Operating expenses:        
General and administrative (including stock-based compensation (Note 8)) 956,826 401,346 2,077,519 1,352,734
Depreciation 436 502 1,308 1,507
Research and development (including stock-based compensation (Note 8)) 680,436 85,802 1,125,937 324,127
Total operating expenses 1,637,698 487,650 3,204,764 1,678,368
Loss from operations (1,637,698) (487,650) (3,204,764) (1,678,368)
Other expense (income):        
Gain on extinguishment of liabilities (Note 5) (718,580)
Conversion inducement 8,000 8,000
Interest expense, net 84,714 94,640 276,815 281,969
Total other expense (income) 92,714 94,640 (433,765) 281,969
Net loss (1,730,412) (582,290) (2,770,999) (1,960,337)
Net loss attributable to the noncontrolling interest 1,472 508 2,486 1,904
Net loss applicable to Bion's common stockholders $ (1,728,940) $ (581,782) $ (2,768,513) $ (1,958,433)
Net loss applicable to Bion's common stockholders per basic and diluted common share (in dollars per share) $ (0.07) $ (0.02) $ (0.11) $ (0.08)
Weighted-average number of common shares outstanding: Basic and diluted (in shares) 24,465,814 23,348,981 24,253,807 23,407,626
XML 16 R5.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Statements of Changes in Equity (Deficit) (Unaudited) - 9 months ended Mar. 31, 2018 - USD ($)
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Subscriptions Receivable [Member]
Retained Earnings [Member]
Noncontrolling Interest [Member]
Total
Balances (in shares) at Jun. 30, 2017 24,748,213          
Balances at Jun. 30, 2017 $ 103,540,352 $ (40,000) $ (118,676,966) $ 57,332 $ (15,119,282)
Issuance of common stock for services (in shares) 18,849         18,849
Issuance of common stock for services 14,631 $ 14,631
Vesting of options and stock bonuses for services 1,391,671 1,391,671
Modification of options 349,656 349,656
Sale of units (in shares) 480,331          
Sale of units 306,997 306,997
Commissions on sale of units (14,875) (14,875)
Warrants exercised for common stock (in shares) 80,001          
Warrants exercised for common stock 48,001 48,001
Modification of warrants 296,852 296,852
Issuance of warrants 183,000 (134,650) 48,350
Extinguishment of deferred compensation - related parties 1,685,252 1,685,252
Net loss (2,768,513) (2,486) (2,770,999)
Balances (in shares) at Mar. 31, 2018 25,327,394          
Balances at Mar. 31, 2018 $ 107,801,537 $ (174,650) $ (121,445,479) $ 54,846 $ (13,763,746)
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (2,770,999) $ (1,960,337)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 1,308 1,507
Accrued interest on loan payable, deferred compensation and other 303,189 308,347
Stock-based compensation 2,101,160 481,565
Gain on extinguishment of liabilities (718,580)
Conversion inducement 8,000
Decrease in prepaid expenses 2,321 8,504
Increase in accounts payable and accrued expenses 80,749 133,171
Increase in deferred compensation 610,200 627,200
Net cash used in operating activities (382,652) (400,043)
CASH FLOWS FROM FINANCING ACTIVITIES    
Decrease in subscription receivable 7,500
Proceeds from sale of common stock 22,850
Proceeds from sale of units 306,997 249,628
Commissions on sale of units (14,875) (14,212)
Proceeds from exercise of warrants 40,001
Repayment of loans payable - affiliates (12,500)
Proceeds from loans payable - affiliates 30,500
Net cash provided by financing activities 350,123 265,766
Net decrease in cash (32,529) (134,277)
Cash at beginning of period 72,932 170,194
Cash at end of period 40,403 35,917
Supplemental disclosure of cash flow information:    
Cash paid for interest
Non-cash investing and financing transactions:    
Issuance of common stock to satisfy deferred compensation and accounts payable 140,502
Purchase of warrants for subscription receivable - affiliates 134,650 40,000
Forgiveness of deferred compensation - related parties $ 1,685,252
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 1 - Organization, Nature of Business, Going Concern and Management's Plans
9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
1.
     ORGANIZATION, NATURE OF BUSINESS, GOING CONCERN AND MANAGEMENT’S PLANS:
 
Organization and nature of business:
 
Bion Environmental Technologies, Inc. (“Bion” or “We” or the “Company”) was incorporated in
1987
in the State of Colorado and has developed and continues to develop patented and proprietary technology and business models that provide comprehensive environmental solutions to a significant source of pollution in United States agriculture, large scale livestock facilities known as Concentrated Animal Feeding Operations (“CAFO’s”). Application of our technology and technology platform can simultaneously remediate environmental problems and improve operational/resource efficiencies by recovering value from the CAFOs’ waste stream that has traditionally been wasted or underutilized, including renewable energy, nutrients (nitrogen and phosphorus--- in organic and conventional form) and clean water. Bion’s technologies (and applications related thereto) produce substantial reductions of nutrient releases (primarily nitrogen and phosphorus) to both water and air (including ammonia, which is subsequently re-deposited to the ground) from livestock waste streams based upon our operations and research to date (and
third
party peer review thereof). Our technology simultaneously enables the documentation of the remediation efforts thereby providing the basis to address concerns re sustainability and food safety. We are continually involved in research and development to upgrade and improve our technology and technology applications, including integration with
third
party technology. Bion provides comprehensive and cost-effective treatment of livestock waste onsite (and/or at nearby locations), while it is still concentrated and before it contaminates air, soil, groundwater aquifers and/or downstream waters, and, in certain configurations, can be optimized to maximize recovery of marketable nutrients for potential use as fertilizer (organic and/or inorganic) and/or feed additives plus renewable energy (and related environmental credits).
 
From
2014
through the current
2018
fiscal year, the Company has focused its research and development on augmenting the basic ‘separate and aggregate’ approach of its technology platform to provide additional flexibility and to increase recovery of marketable nutrient by-products (in organic and non-organic forms) and renewable energy production (either/both biogas and/or renewable electricity), thereby increasing potential related revenue streams and reducing dependence of its future projects on the monetization of nutrient reductions (which still remain a very important part of project revenue streams). Bion has worked on development of its
third
generation technology (
“3G
Tech”) which is designed to: a) generate significantly greater value from the nutrients and renewable energy recovered from the waste stream, b) treat dry (poultry) waste streams as well as wet waste streams (dairy/beef cattle/swine), and c) while maintaining or improving environmental performance. This research and development effort also involves ongoing review of potential “add-ons” and applications to our technology platform for use in different regulatory and/or climate environments. These research and development activities have targeted completion of development of the next generation of Bion’s technology and technology platform. We believe such activities will continue at least through the
2018
calendar year (and likely longer), subject to availability of adequate financing for the Company’s operations, of which there is
no
assurance. Such activities
may
include design and construction of an initial, commercial-scale module utilizing our
3G
Tech to assist in optimization efforts before construction of the full Kreider
2
project (see below).
 
Currently, Bion is focused on using applications of its patented and proprietary waste management technologies and technology platform to pursue
three
main business opportunities:
1
) installation of Bion systems (some of which
may
generate verified nutrient credits and revenues from the production of renewable energy and byproducts) to retrofit and environmentally remediate existing CAFOs (“Retrofits”) in selected markets where: a) government policy supports such efforts (such as the Chesapeake Bay watershed, some Great Lakes Basin states, and/or other states and watersheds facing Environmental Protection Agency (“EPA”) ‘total maximum daily load’ (“TMDL”) issues, and/or b) where CAFO’s need our technology to obtain permits to expand or develop without negative environmental consequences;
2
) development of new state-of-the-art large-scale waste treatment facilities in conjunction with large CAFO’s in strategic locations (“Projects”) ( some of these
may
be Integrated Projects as described below) with multiple revenue streams, and
3
) licensing and/or joint venturing of Bion’s technology and applications (primarily) outside North America. The opportunities described at
1
) and
2
) above each require substantial political and regulatory (federal, state and local) efforts on the part of the Company and a substantial part of Bion’s efforts are focused on such political and regulatory matters. Bion intends to pursue international opportunities primarily through the use of consultants with existing relationships in target locations. The most intense focus is currently on the requirements for the clean-up of the Chesapeake Bay faced by the Commonwealth of Pennsylvania and the potential use of Bion’s technology and technology platform on CAFOs to remediate ammonia release (and re-deposition to the ground and water) and as an alternative to what the Company believes is far more expensive nutrient removal downstream in storm water and other projects.
 
Management believes that Bion’s technology also creates the opportunity to develop Integrated Projects that profitably integrate large-scale CAFO's production with their downstream food processing facility, and in certain applications, biofuel/ethanol production. The Bion platform will provide treatment of, as well as renewable energy and by-product recovery from, both the CAFO and food processing waste streams, on-site utilization of some or all of the renewable energy generated, and potentially, biofuel/ethanol production, in an environmentally and economically sustainable manner that reduces the aggregate capital expense and operating costs for the entire integrated complex. Projects
may
involve various degrees of integration which will limit the benefits described herein.
 
During
2008
the Company commenced actively pursuing the opportunity presented by environmental retrofit and remediation of the waste streams of existing CAFOs which effort has met with very limited success to date. The
first
commercial activity in this area is represented by our agreement with Kreider Farms (“KF”), pursuant to which the Kreider
1
system to treat KF's dairy waste streams to reduce nutrient releases to the environment while generating marketable nutrient credits and renewable energy was designed, constructed and entered full-scale operation during
2011.
On
January 26, 2009
the Board of the Pennsylvania Infrastructure Investment Authority (“Pennvest”) approved a
$7.75
million loan to Bion PA
1,
LLC (
“PA1”
), a wholly-owned subsidiary of the Company, for the initial Kreider Farms project (“Kreider
1
System”). After substantial unanticipated delays, on
August 12, 2010
PA1
received a permit for construction of the Kreider
1
System. Construction activities commenced during
November 2010.
The closing/settlement of the Pennvest Loan took place on
November 3, 2010.
PA1
finished the construction of the Kreider
1
System and entered a period of system ‘operational shakedown’ during
May 2011.
The Kreider
1
System reached full, stabilized operation by the end of the
2012
fiscal year. During
2011
the Pennsylvania Department of Environmental Protection (“PADEP”) re-certified the nutrient credits for this project. The PADEP issued final permits for the Kreider
1
System (including the credit verification plan) on
August 1, 2012
on which date the Company deemed that the Kreider
1
System was ‘placed in service’. As a result,
PA1
commenced generating nutrient reduction credits for potential sale while continuing to utilize the Kreider
1
System to test improvements and add-ons. However, to date liquidity in the Pennsylvania nutrient credit market has been slow to develop significant breadth and depth, which limited liquidity/depth has negatively impacted Bion’s business plans and has resulted in challenges to monetizing the nutrient reductions created by
PA1’s
existing Kreider
1
System and Bion’s other proposed projects. These difficulties have prevented
PA1
from generating any material revenues from the Kreider
1
System to date and raise significant questions as to when, if ever,
PA1
will be able to generate such revenues from
the Kreider
1
System.
PA1
has had sporadic discussions/negotiations with Pennvest related to forbearance and/or re-structuring its obligations pursuant to the Pennvest Loan for more than
four
years. In the context of such discussions/negotiations,
PA1
elected
not
to make interest payments to Pennvest on the Pennvest Loan since
January 2013.
Additionally, the Company has
not
made any principal payments, which were to begin in fiscal
2013,
and, therefore, the Company has classified the Pennvest Loan as a current liability as of
March 31, 2018.
Due to the failure of the Pennsylvania nutrient reduction credit market to develop, the Company determined (on
three
separate occasions) that the carrying amount of the property and equipment related to the Kreider
1
System exceeded its estimated future undiscounted cash flows based on certain assumptions regarding timing, level and probability of revenues from sales of nutrient reduction credits. Therefore,
PA1
and the Company recorded impairments related to the value of the Kreider
1
assets totaling
$3,750,000
through
June 30, 2015.
During the
2016
fiscal year,
PA1
and the Company recorded an additional impairment of
$1,684,562
to the value of the Kreider
1
assets which reduced the value on the Company’s books to zero. This impairment reflects management’s judgment that the salvage value of the Kreider
1
assets roughly equals
PA1’s
contractual obligations related to the Kreider
1
System, including expenses related to decommissioning of the Kreider
1
System, costs associated with needed capital upgrade expenses, and re-certification/ permitting amendments.
 
On
September 25, 2014,
Pennvest exercised its right to declare the Pennvest Loan in default and accelerated the Pennvest Loan and demanded that
PA1
pay
$8,137,117
(principal, interest plus late charges) on or before
October 24, 2014.
PA1
did
not
make the payment and does
not
have the resources to make the payments demanded by Pennvest.
PA1
has commenced discussions and negotiations with Pennvest concerning this matter but Pennvest has rejected
PA1’s
proposal made during the fall of
2014.
No
formal proposals are presently under consideration and only sporadic communication has taken place regarding the matters involved over the last
36
months. It is
not
possible at this date to predict the outcome of such this matter, but the Company believes that a loan modification agreement (coupled with an agreement regarding an update and re-start of full operations of the Kreider
1
System)
may
be reached in the future if/when a more robust market for nutrient reductions develops in Pennsylvania, of which there is
no
assurance.
PA1
and Bion will continue to evaluate various options with regard to Kreider
1
over the next
30
-
180
days.
 
During
August 2012,
the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider
1
System met the ‘technology guaranty’ standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan has been (and is now) solely an obligation of
PA1
since that date.
 
The economics (potential revenues, profitability and continued operation) of the Kreider
1
System are based almost entirely on the long term sale of nutrient (nitrogen and/or phosphorus) reduction credits to meet the requirements of the Chesapeake Bay environmental clean-up.
 
On
May 5, 2016,
Bion
PA2
LLC (
“PA2”
) executed a stand-alone joint venture agreement with Kreider Farms covering all matters related to development and operation of a system to treat the waste streams from Kreider’s poultry facilities (“Kreider
2”
).
 
The Kreider projects are owned and operated by Bion through separate subsidiaries, in which Kreider has the option to acquire a noncontrolling interest. Substantial capital (equity and/or debt) has been and will continue to be expended on these projects. Additional funds will be required for continuing operations and additional capital expenditures for upgrades at Kreider
1
until sufficient revenues can be generated, of which there is
no
assurance. The Company anticipates that the Kreider
1
System will generate revenue primarily from the sale of nutrient reduction (and/or other) environmental credits. A portion of Bion’s research and development activities has taken place at the Kreider
1
facility.
 
Kreider
2
(
not
yet constructed) (and most future Projects) will be developed using variations on Bion’s
3G
Tech to recover substantial marketable nutrients and renewable energy to supplement its revenue from nutrient reductions. The Company believes that the proceeds from multiple byproduct streams including i) fertilizer (organic and non-organic) and/or feed additives and ii) renewable energy (and related credits) can be reasonably projected to generate, in aggregate, revenue streams that, in certain circumstances,
may
exceed
two
-thirds of total revenues from such Project(s) when aggregated with license fees related to a ‘sustainable brand’ resulting from implementation of Bion’s technology. To date the market for long-term nutrient reduction credits in Pennsylvania has been very slow to develop and the Company’s activities have been negatively affected by the lack of such development.
 
Kreider
2
pre-development work and technology evaluation, including execution of a stand-alone joint venture agreement, amended credit certification and discussions with potential joint venture partners, continues. The Kreider
2
Project primarily relates to treatment of the wastes from Kreider’s poultry operations. Assuming there are positive developments related to the market for nutrient reductions in Pennsylvania, the Company intends to pursue development, design and construction of the Kreider
2
poultry waste/renewable energy project with a goal of achieving operational status for its initial modules during fiscal year
2019.
However, as discussed above, this Project faces challenges related to the current limits of the existing nutrient reduction market and funding of technology-based, verifiable agricultural nutrient reductions which are anticipated to constitute the largest share of its revenues.
 
A significant portion of Bion’s activities concern efforts with private and public stakeholders (at local and state level) in Pennsylvania (and other Chesapeake Bay and Midwest and Great Lakes states) and at the federal level EPA and the Department of Agriculture (“USDA”) (and other executive departments) and Congress) to establish appropriate public policies which will create regulations and funding mechanisms that foster installation of the low cost environmental solutions that Bion (and others) can provide through clean-up of agricultural waste streams. The Company anticipates that such efforts will continue in Pennsylvania and other Chesapeake Bay watershed states throughout the next
12
months and in various additional states thereafter.
 
Going concern and management’s plans:
 
The consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has
not
generated significant revenues and has incurred net losses (including significant non-cash expenses) of approximately
$2,463,000
and
$4,522,000
during the years ended
June 30, 2017
and
2016,
respectively and net loss of approximately
$2,771,000
during the
nine
months ended
March 31, 2018.
At
March 31, 2018,
the Company has a working capital deficit and a stockholders’ deficit of approximately
$10,267,000
and
$13,819,000,
respectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do
not
include any adjustments relating to the recoverability or classification of assets or the amounts and classification of liabilities that
may
result should the Company be unable to continue as a going concern. The following paragraphs describe management’s plans with regard to these conditions.
 
The Company continues to explore sources of additional financing (including potential agreements with strategic partners – both financial and ag-industry) to satisfy its current and future operating and capital expenditure requirements as it is
not
currently generating any significant revenues.
 
During the years ended
June 30, 2017
and
2016,
the Company received total proceeds of approximately
$452,000
and
$761,000
from the sale of its debt and equity securities. Proceeds during the
2017
and
2016
fiscal years have been lower than in earlier years which reduction has negatively impacted the Company’s business development efforts.
 
During the
nine
months ended
March 31, 2018,
the Company received approximately
$307,000
from the sale of its debt and equity securities, which is lower than previous years.
 
During fiscal years
2017
and
2016
and through the
nine
months ended
March 31, 2018,
the Company experienced greater difficulty in raising equity funding than in the prior years. As a result, the Company faced, and continues to face, significant cash flow management challenges due to working capital constraints. To partially mitigate these working capital constraints, the Company’s core senior management and several key employees and consultants have been deferring (and continue to defer) all or part of their cash compensation and/or are accepting compensation in the form of securities of the Company (Notes
5
and
7
) and members of the Company’s senior management have made loans to the Company (Note
4
). During the
nine
months ended
March 31, 2018,
senior management and certain core employees and consultants agreed to a
one
-time extinguishment of liabilities owed by the Company which in aggregate totaled
$2,404,000.
Additionally, the Company made reductions in its personnel during the years ended
June 30, 2014
and
2015.
The constraint on available resources has had, and continues to have, negative effects on the pace and scope of the Company’s efforts to develop its business. The Company has had to delay payment of trade obligations and has had to economize in many ways that have potentially negative consequences. If the Company does
not
have greater success in its efforts to raise needed funds during the remainder of the current fiscal year (and subsequent periods), management will need to consider deeper cuts (including additional personnel cuts) and curtailment of operations (including possibly Kreider
1
operations) and/or research and development activities.
 
The Company will need to obtain additional capital to fund its operations and technology development, to satisfy existing creditors, to develop Projects (including Integrated Projects) (including the Kreider
2
facility) and CAFO Retrofit waste remediation systems and to continue to operate the Kreider
1
facility. The Company anticipates that it will seek to raise from
$2,500,000
to
$50,000,000
or more debt and/or equity through joint ventures, strategic partnerships and/or sale of its equity securities (common, preferred and/or hybrid) and/or debt (including convertible) securities, and/or through use of ‘rights’ and/or warrants (new and/or existing) during the next
twelve
months. However, as discussed above, there is
no
assurance, especially in light of the difficulties the Company has experienced in recent periods and the extremely unsettled capital markets that presently exist (especially for companies like us), that the Company will be able to obtain the funds that it needs to stay in business, complete its technology development or to successfully develop its business and Projects.
 
There is
no
realistic likelihood that funds required during the next
twelve
months (or in the periods immediately thereafter) for the Company’s basic operations and/or proposed Projects will be generated from operations. Therefore, the Company will need to raise sufficient funds from external sources such as debt or equity financings or other potential sources. The lack of sufficient additional capital resulting from the inability to generate cash flow from operations and/or to raise capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business. Further, there can be
no
assurance that any such required funds, if available, will be available on attractive terms or that they will
not
have a significantly dilutive effect on the Company’s existing shareholders. All of these factors have been exacerbated by the extremely limited and unsettled credit and capital markets presently existing for small companies like Bion.
XML 19 R8.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 2 - Significant Accounting Policies
9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Significant Accounting Policies [Text Block]
2.
     SIGNIFICANT ACCOUNTING POLICIES
 
Principles of consolidation:
 
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Bion Integrated Projects Group, Inc. (“Projects Group”), Bion Technologies, Inc., BionSoil, Inc., Bion Services,
PA1,
and
PA2;
and its
58.9%
owned subsidiary, Centerpoint Corporation (“Centerpoint”). All significant intercompany accounts and transactions have been eliminated in consolidation.
 
The accompanying consolidated financial statements have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements reflect all adjustments (consisting of only normal recurring entries) that, in the opinion of management, are necessary to present fairly the financial position at
March 31, 2018,
and the results of operations and cash flows of the Company for the
three
and
nine
months ended
March 31, 2018
and
2017.
Operating results for the
three
and
nine
months ended
March 31, 2018
are
not
necessarily indicative of the results that
may
be expected for the year ending
June 30, 2018.
 
Property and equipment:
 
Property and equipment are stated at cost and are depreciated, when placed into service, using the straight-line method over the estimated useful lives of the related assets, generally
three
to
twenty
years. The Company capitalizes all direct costs and all indirect incrementally identifiable costs related to the design and construction of its Integrated Projects. The Company has elected to expense all costs and filing fees related to obtaining patents (resulting in
no
related asset being recognized in the Company’s balance sheet) because the Company believes such costs and fees are immaterial (in the context of the Company’s total costs/expenses) and have
no
direct relationship to the value of the Company’s patents. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may
not
be recoverable. An impairment loss would be recognized based on the amount by which the carrying value of the assets or asset group exceeds its estimated fair value, and is recognized as a loss from operations.
 
Stock-based compensation:
 
The Company follows the provisions of Accounting Standards Codification (“ASC”)
718,
which generally requires that share-based compensation transactions be accounted and recognized in the statement of income based upon their grant date fair values.
 
Derivative Financial Instruments:
 
Pursuant to ASC Topic
815
“Derivatives and Hedging” (“Topic
815”
), the Company reviews all financial instruments for the existence of features which
may
require fair value accounting and a related mark-to-market adjustment at each reporting period end. Once determined, the Company assesses these instruments as derivative liabilities. The fair value of these instruments is adjusted to reflect the fair value at each reporting period end, with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives.
 
Warrants:
 
The Company has issued warrants to purchase common shares of the Company. Warrants are valued using a fair value based method, whereby the fair value of the warrant is determined at the warrant issue date using a market-based option valuation model based on factors including an evaluation of the Company’s value as of the date of the issuance, consideration of the Company’s limited liquid resources and business prospects, the market price of the Company’s stock in its mostly inactive public market and the historical valuations and purchases of the Company’s warrants. When warrants are issued in combination with debt or equity securities, the warrants are valued and accounted for based on the relative fair value of the warrants in relation to the total value assigned to the debt or equity securities and warrants combined.
 
Fair value measurements:
 
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The Company uses a fair value hierarchy that has
three
levels of inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value.
 
Level
1
– quoted prices (unadjusted) in active markets for identical assets or liabilities;
 
Level
2
– observable inputs other than Level
1,
quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are
not
active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and
 
Level
3
– assets and liabilities whose significant value drivers are unobservable.
 
Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability
may
fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.
 
The fair value of cash and accounts payable approximates their carrying amounts due to their short-term maturities. The fair value of the loan payable is indeterminable at this time due to the nature of the arrangement with a state agency and the fact that it is in default. The fair value of the redeemable preferred stock approximates its carrying value due to the dividends accrued on the preferred stock which are reflected as part of the redemption value. The fair value of the loan payable – affiliates, deferred compensation and convertible notes payable - affiliates are
not
practicable to estimate due to the related party nature of the underlying transactions.
 
Revenue Recognition:
 
Revenues are generated from the sale of nutrient reduction credits. The Company recognizes revenue from the sale of nutrient credits when there is persuasive evidence that an arrangement exists, when title has passed, the price is fixed or determinable, and collection is reasonably assured.
 
The Company expects that technology license fees will be generated from the licensing of Bion’s integrated system. The Company anticipates that it will charge its customers a non-refundable up-front technology license fee, which will be recognized over the estimated life of the customer relationship. In addition, any on-going technology license fees will be recognized as earned based upon the performance requirements of the agreement. Annual waste treatment fees will be recognized upon receipt. Revenues, if any, from the Company’s interest in Integrated Projects will be recognized when the entity in which the Integrated Project has been developed recognizes such revenue.
 
L
oss per share:
 
Basic loss per share amounts are calculated using the weighted average number of shares of common stock outstanding during the period. Diluted loss per share assumes the conversion, exercise or issuance of all potential common stock instruments, such as options or warrants, unless the effect is to reduce the loss per share or increase the earnings per share. During the
three
and
nine
months ended
March 31, 2018
and
2017,
the basic and diluted loss per share was the same, as the impact of potential dilutive common shares was anti-dilutive.
 
The following table represents the warrants, options and convertible securities excluded from the calculation of basic loss per share:
 
   
March 31,
2018
   
March 31,
2017
 
Warrants
   
12,176,269
     
8,382,831
 
Options
   
6,827,225
     
4,520,037
 
Convertible debt
   
7,337,805
     
8,517,079
 
Convertible preferred stock
   
16,750
     
15,750
 
 
The following is a reconciliation of the denominators of the basic and diluted loss per share computations for the
three
and
nine
months ended
March 31, 2018
and
2017:
 
   
Three months
ended
March 31,
2018
   
Three months
ended
March 31,
2017
   
Nine months
ended
March 31,
2018
   
Nine months
ended
March 31,
2017
 
Shares issued – beginning of period
   
25,011,939
     
23,784,363
     
24,748,213
     
23,573,057
 
Shares held by subsidiaries (Note 7)
   
(704,309
)    
(704,309
)    
(704,309
)    
(704,309
)
Shares outstanding – beginning of period
   
24,307,630
     
23,080,054
     
24,043,904
     
22,868,748
 
Weighted average shares for fully vested stock bonuses
   
-
     
-
     
-
     
289,051
 
Weighted average shares issued during the period
   
158,184
     
268,927
     
209,903
     
249,827
 
Basic weighted average shares –  end of period
   
24,465,814
     
23,348,981
     
24,253,807
     
23,407,626
 
 
 
 
Recent Accounting Pronouncements:
 
The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financial statements properly reflect the change.
 
In
May 2014,
the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No.
2014
-
09
“Revenue from Contracts from Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic
605
),” and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. ASU
2014
-
09
is effective for fiscal years, and interim periods within those years, beginning after
December 15, 2017
and earlier application is permitted only as of annual reporting periods beginning after
December 15, 2016.
Once the Company begins to generate revenue, the Company does
not
anticipate any material impact on its operations and financial statements.
 
In
August 2014,
the FASB issued ASU
No.
2014
-
15,
“Presentation of Financial Statements – Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within
one
year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective for annual periods ending after
December 15, 2016,
and interim periods thereafter, early application is permitted. The adoption of ASU
No.
2014
-
15
did
not
have a material impact on the Company’s financial statements.
 
In
May 2017,
the FASB issued ASU
No.
2017
-
09
“Scope of Modification Accounting” which clarifies when changes to the terms or conditions of a share-based payment awards must be accounted for as modifications. The new guidance will reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications. ASU
No.
2017
-
09
will be applied prospectively to awards modified on or after the adoption date. The guidance is effective for annual periods, and interim periods within those annual periods beginning after
December 15, 2017,
with early adoption permitted. The Company does
not
anticipate any material impact on the Company’s financial statements upon adoption.
XML 20 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Property and Equipment
9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]
3.
     PROPERTY AND EQUIPMENT:
 
Property and equipment consists of the following:
 
   
March 31,
2017
   
June 30,
2017
 
Machinery and equipment
  $
2,222,670
    $
2,222,670
 
Buildings and structures
   
401,470
     
401,470
 
Computers and office equipment
   
171,613
     
171,613
 
     
2,795,753
     
2,795,753
 
Less accumulated depreciation
   
(2,793,869
)    
(2,792,561
)
    $
1,884
    $
3,192
 
 
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
March 31, 2018,
management believes that
no
additional impairment exists.
 
Depreciation expense was
$436
and
$502
for the
three
months ended
March 31, 2018
and
2017,
respectively, and
$1,308
and
$1,507
for the
nine
months ended
March 31, 2018
and
2017,
respectively.
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Note 4 - Loans Payable - Affiliates
9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]
4.
     LOANS PAYABLE - AFFILIATES:
 
As of
March 31, 2018,
Mark A. Smith (“Smith”), the Company’s President, had loaned the Company
$18,000
for working capital needs. During the
nine
months ended
March 31, 2018,
Dominic Bassani (“Bassani”), the Company’s Chief Executive Officer was repaid
$12,500
for loans he had previously made to the Company. The loans are non-interest bearing, are non-collateralized and will be repaid when the Board of Directors determines there is adequate cash available.
XML 22 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 5 - Deferred Compensation
9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
5.
     DEFERRED COMPENSATION:
 
The Company owes deferred compensation to various employees, former employees and consultants totaling
$345,929
and
$1,962,885
as of
March 31, 2018
and
2017,
respectively. Included in the deferred compensation balances as of
March 31, 2018,
are
$124,612
and
$72,355
owed Bassani, and Smith, respectively, pursuant to extension agreements effective
January 1, 2015,
whereby unpaid compensation earned after
January 1, 2015,
accrues interest at
4%
per annum and can be converted into shares of the Company’s common stock at the election of the employee during the
first
five
calendar days of any month. The conversion price shall be the average closing price of the Company’s common stock for the last
10
trading days of the immediately preceding month. The deferred compensation owed Bassani, Smith and Edward Schafer (“Schafer”), the Company’s Vice Chairman, as of
March 31, 2017
was
$873,273,
$338,480
and
$118,376,
respectively. The Company also owes various consultants, pursuant to various agreements, for deferred compensation of
$75,478
and
$391,272
as of
March 31, 2018
and
2017,
respectively, with similar conversion terms as those described above for Bassani, Smith and Schafer, with the exception that the interest accrues at
3%
per annum. Bassani and Smith have each been granted the right to convert up to
$300,000
of deferred compensation balances at a price of
$0.75
per share until
December 31, 2018 (
to be issued pursuant to the
2006
Plan). Smith has the right to convert all or part of his deferred compensation balance into the Company’s securities (to be issued pursuant to the
2006
Plan) “at market” and/or on the same terms as the Company is selling or has sold its securities in its then current (or most recent if there is
no
current) private placement. The Company also owes a current employee deferred compensation of
$984
which is convertible into
1,893
shares of the Company’s common stock as of
March 31, 2018
and, a former employee
$72,500,
which is
not
convertible and is non-interest bearing.
 
During the
nine
months ended
March 31, 2018,
Bassani, Smith and Schafer agreed to cancel deferred compensation owed them as of
November 30, 2017
of
$1,147,210,
$416,656
and
$121,386,
respectively (
$1,685,252
in aggregate). Various consultants also agreed to cancel deferred compensation as of
November 30, 2017
totaling
$718,580.
The total deferred compensation that was cancelled during the
nine
months ended
March 31, 2018
was
$2,403,832,
of which, the
$1,685,252
owed related parties was recorded as an increase in additional paid in capital, while
$718,580
was recorded as a gain from the extinguishment of liabilities. All deferred compensation agreements remain in effect and the Company accrued deferred compensation anew beginning
December 1, 2017.
 
The Company recorded interest expense of
$32,299
(
$26,084
with related parties) and
$39,592
(
$30,937
with related parties) for the
nine
months ended
March 31, 2018
and
2017,
respectively.
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Note 6 - Loan Payable
9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Debt Disclosure [Text Block]
6.
     LOAN PAYABLE:
 
PA1,
the Company’s wholly-owned subsidiary, owes
$8,970,818
as of
March 31, 2018
under the terms of the Pennvest Loan related to the construction of the Kreider
1
System including accrued interest and late charges totaling
$1,216,818
as of
March 31, 2018.
The terms of the Pennvest Loan provided for funding of up to
$7,754,000
which was to be repaid by interest-only payments for
three
years, followed by an additional
ten
-year amortization of principal. The Pennvest Loan accrues interest at
2.547%
per annum for years
1
through
5
and
3.184%
per annum for years
6
through maturity. The Pennvest Loan required minimum annual principal payments of approximately
$2,742,000
in fiscal years
2013
through
2017,
and
$760,000
in fiscal year
2018,
$771,000
in fiscal year
2019,
$794,000
in fiscal year
2020,
$819,000
in fiscal year
2021,
$846,000
in fiscal year
2022
and
$1,022,000
thereafter. The Pennvest Loan is collateralized by the Kreider
1
System and by a pledge of all revenues generated from Kreider
1
including, but
not
limited to, revenues generated from nutrient reduction credit sales and by-product sales. In addition, in consideration for the excess credit risk associated with the project, Pennvest is entitled to participate in the profits from Kreider
1
calculated on a net cash flow basis, as defined. The Company has incurred interest expense related to the Pennvest Loan of
$49,373
for both of the
three
months ended
March 31, 2018
and
2017,
respectively. The Company has incurred interest expense related to the Pennvest Loan of
$148,121
and for both of the
nine
months ended
March 31, 2018
and
2017,
respectively. Based on the limited development of the depth and breadth of the Pennsylvania nutrient reduction credit market to date,
PA1
commenced negotiations with Pennvest related to forbearance and/or re-structuring the obligations under the Pennvest Loan. In the context of such negotiations,
PA1
has elected
not
to make interest payments to Pennvest on the Pennvest Loan since
January 2013.
Additionally, the Company has
not
made any principal payments, which were to begin in fiscal
2013,
and, therefore, the Company has classified the Pennvest Loan as a current liability as of
March 31, 2018.
 
On
September 25, 2014,
Pennvest exercised its right to declare the Pennvest Loan in default and has accelerated the Pennvest Loan and demanded that
PA1
pay
$8,137,117
(principal, interest plus late charges) on or before
October 24, 2014.
PA1
did
not
make the payment and does
not
have the resources to make the payment demanded by Pennvest.
PA1
has engaged in on/off discussions and negotiations with Pennvest concerning this matter but
no
such discussions/negotiations are currently active. As of the date of this report,
no
formal proposals are presently under consideration and only sporadic communication has taken place regarding the matters involved over the past
48
months. It is
not
possible at this date to predict the outcome of this matter, but the Company believes it is possible that an agreement
may
yet be reached that will result in a viable loan modification. Subject to the results of the negotiations with Pennvest and pending development of a more robust market for nutrient reductions in Pennsylvania,
PA1
and Bion will continue to evaluate various options with regard to Kreider
1
over the next
30
-
180
days.
 
In connection with the Pennvest Loan financing documents, the Company provided a ‘technology guaranty’ regarding nutrient reduction performance of Kreider
1
which was structured to expire when Kreider
1’s
nutrient reduction performance had been demonstrated. During
August 2012
the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider
1
System had surpassed the requisite performance criteria and that the Company’s ‘technology guaranty’ was met. As a result, the Pennvest Loan is solely an obligation of
PA1.
XML 24 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Convertible Notes Payable - Affiliates
9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Convertible Debt [Text Block]
7.
     CONVERTIBLE NOTES PAYABLE - AFFILIATES:
 
January 2015
Convertible Notes
 
The
January 2015
Convertible Notes accrue interest at
4%
per annum and were due and payable on
December 31, 2017.
Effective
June 30, 2017,
the maturity dates were extended on the
January 2015
Convertible Notes until
July 1, 2019.
The
January 2015
Convertible Notes (including accrued interest, plus all future deferred compensation), are convertible, at the sole election of the noteholder, into Units consisting of
one
share of the Company’s common stock and
one
quarter warrant to purchase a share of the Company’s common stock, at a price of
$0.50
per Unit until
December 31, 2020.
The warrant contained in the Unit shall be exercisable at
$1.00
per share until
December 31, 2020.
The original conversion price of
$0.50
per Unit approximated the fair value of the Units at the date of the agreements; therefore
no
beneficial conversion feature exists. Management evaluated the terms and conditions of the embedded conversion features based on the guidance of ASC
815
-
15
“Embedded Derivatives” to determine if there was an embedded derivative requiring bifurcation. An embedded derivative instrument (such as a conversion option embedded in the deferred compensation) must be bifurcated from its host instruments and accounted for separately as a derivative instrument only if the “risks and rewards” of the embedded derivative instrument are
not
“clearly and closely related” to the risks and rewards of the host instrument in which it is embedded. Management concluded that the embedded conversion feature of the deferred compensation was
not
required to be bifurcated because the conversion feature is clearly and closely related to the host instrument, and because of the Company’s limited trading volume that indicates the feature is
not
readily convertible to cash in accordance with ASC
815
-
10,
“Derivatives and Hedging”.
 
As of
March 31, 2018,
the
January 2015
Convertible Note balances, including accrued interest, owed Bassani, Smith and Schafer were
$1,654,736,
$859,282
and
$427,416,
respectively. As of
March 31, 2017,
the
January 2015
Convertible Note balances, including accrued interest, owed Bassani, Smith and Schafer were
$1,596,155,
$828,861
and
$412,284,
respectively. The Company recorded interest expense of
$25,677
for both of the
three
months ended
March 31, 2018
and
2017,
respectively. The Company recorded
$78,172
for both of the
nine
months ended
March 31, 2018
and
2017,
respectively.
 
September 2015
Convertible Notes
 
During the year ended
June 30, 2016,
the Company entered into
September 2015
Convertible Notes with Bassani, Schafer and a Shareholder which replaced previously issued promissory notes. The initial principal balances of the
September 2015
Convertible Notes were
$405,831,
$16,382
and
$82,921,
respectively. The
September 2015
Convertible Notes bear interest at
4%
per annum, had maturity dates of
December 31, 2017
and
may
be converted at the sole election of the noteholders into restricted common shares of the Company at a conversion price of
$0.60
per share. As the conversion price of
$0.60
approximated the fair value of the common shares at the date of the
September 2015
Convertible Notes,
no
beneficial conversion feature exists. The balances of the
September 2015
Convertible Notes as of
March 31, 2018,
including accrued interest, are
$447,989,
$18,061
and
$91,417,
respectively. The balances of the
September 2015
Convertible Notes as of
March 31, 2017,
including accrued interest, were
$431,181,
$17,405
and
$88,101,
respectively. During the
nine
months ended
March 31, 2018,
Bassani and the Company agreed to split his original
September 2015
Convertible Note into
two
replacement notes with all the terms remaining the same. One of the replacement notes’ original principal is
$130,000,
which is being held by the Company as collateral for a subscription receivable promissory note from Bassani (Note
8
).
 
Effective
June 30, 2017,
the maturity dates of the
September 2015
Convertible Notes due Bassani and Schafer were extended until
July 1, 2019
and during the
nine
months ended
March 31, 2018,
the maturity date of the note due a Shareholder was extended until
July 1, 2019.
 
The Company recorded interest expense of
$5,341
and
$4,983
for the
three
months ended
March 31, 2018
and
2017,
respectively. The Company recorded interest expense of
$15,743
and
$15,168
for the
nine
months ended
March 31, 2018
and
2017,
respectively.
XML 25 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Stockholders' Equity
9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
8.
     STOCKHOLDERS' EQUITY:
 
Series B Preferred stock:
 
At
July 1, 2014,
the Company had
200
shares of Series B redeemable convertible Preferred stock outstanding with a par value of
$0.01
per share, convertible at the option of the holder at
$2.00
per share, with dividends accrued and payable at
2.5%
per quarter. The Series B Preferred stock is mandatorily redeemable at
$100
per share by the Company
three
years after issuance and accordingly was classified as a liability. The
200
shares have reached their maturity date, but due to the cash constraints of the Company have
not
been redeemed.
 
During the years ended
June 30, 2017
and
2016,
the Company declared dividends of
$2,000
and
$2,000
respectively. During the
three
and
nine
months ended
March 31, 2018,
the Company declared dividends of
$500
and
$1,500,
respectively. At
March 31, 2018,
accrued dividends payable are
$13,500.
The dividends are classified as a component of operations as the Series B Preferred stock is presented as a liability in these financial statements.
 
Common stock:
 
Holders of common stock are entitled to
one
vote per share on all matters to be voted on by common stockholders. In the event of liquidation, dissolution or winding up of the Company, the holders of common stock are entitled to share in all assets remaining after liabilities have been paid in full or set aside and the rights of any outstanding preferred stock have been satisfied. Common stock has
no
preemptive, redemption or conversion rights. The rights of holders of common stock are subject to, and
may
be adversely affected by, the rights of the holders of any outstanding series of preferred stock or any series of preferred stock the Company
may
designate in the future.
 
Centerpoint holds
704,309
shares of the Company’s common stock. These shares of the Company’s common stock held by Centerpoint are for the benefit of its shareholders without any beneficial interest.
 
During the
nine
months ended
March 31, 2018,
the Company issued
18,849
shares of the Company’s common stock at prices ranging from
$0.66
to
$0.91
per share for services valued at
$14,631,
in the aggregate, to a consultant and an employee.
 
During the
nine
months ended
March 31, 2018,
the Company entered into subscription agreements to sell units for
$0.75
per unit, with each unit consisting of
one
share of the Company’s restricted common stock and
one
warrant to purchase
one
half of a share of the Company’s restricted common stock for
$1.00
per share with expiry dates of
June 30, 2018
and pursuant thereto, the Company issued
267,331
units for total proceeds of
$200,497,
net proceeds of
$185,622
after commissions. The Company allocated the proceeds from the
267,331
shares and the
133,666
warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be
$0.05
per warrant. As a result,
$6,152
was allocated to the warrants and
$194,345
was allocated to the shares, and both were recorded as additional paid in capital.
 
During the
nine
months ended
March 31, 2018,
the Company entered into subscription agreements to sell units for
$0.50
per unit, with each unit consisting of
one
share of the Company’s restricted common stock and
one
warrant to purchase
one
half of a share of the Company’s restricted common stock for
$0.75
per share with expiry dates of
September 30, 2018
and pursuant thereto, the Company issued
213,000
units for total proceeds of
$106,500.
The Company allocated the proceeds from the
213,000
shares and the
106,500
warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be
$0.05
per warrant. As a result,
$3,140
was allocated to the warrants and
$103,360
was allocated to the shares, and both were recorded as additional paid in capital.
 
During the
nine
months ended
March 31, 2018,
the Company entered into subscription agreements to exercise certain warrants with expiry dates on or before
March 31, 2018
and
June 30, 2018,
into restricted shares of the Company’s common stock at a reduced exercise price of
$0.50
for the period from
March 1, 2018
to
March 31, 2018.
At
March 31, 2018
the Company exercised its right to extend the offering an additional
15
days to
April 15, 2018
and therefore any warrants which would have expired on
March 31, 2018
were automatically extended to
April 15, 2018.
As the
$0.50
exercise price was a reduction from the original exercise price of
$0.75,
and due to the limited time in which the warrant holders had to subscribe, the reduction in the offering price was accounted for as an inducement and a conversion inducement of
$8,000
was recorded. As a result of the offering,
80,001
warrants were exercised and
80,001
shares of the Company’s restricted common stock were issued resulting in cash proceeds of
$40,001
for the
nine
months ended
March 31, 2018.
 
Warrants:
 
As of
March 31, 2018,
the Company had approximately
12.2
million warrants outstanding, with exercise prices from
$0.75
to
$3.00
and expiring on various dates through
December 31, 2022.
 
The weighted-average exercise price for the outstanding warrants is
$1.07,
and the weighted-average remaining contractual life as of
March 31, 2018
is
3.6
years.
 
During the
nine
months ended
March 31, 2018,
warrants to purchase
322,110
shares of common stock of the Company at prices between
$1.00
and
$2.50
per share expired.
 
During the
nine
months ended
March 31, 2018,
the Company entered into subscription agreements to sell units for
$0.75
per unit, with each unit consisting of
one
share of the Company’s restricted common stock and
one
warrant to purchase
one
half of a share of the Company’s restricted common stock for
$1.00
per share with expiry dates of
June 30, 2018
and pursuant thereto, the Company issued
267,331
units for total proceeds of
$200,497,
net proceeds of
$185,622
after commissions. The Company allocated the proceeds from the
267,331
shares and the
133,666
warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be
$0.05
per warrant. As a result,
$6,152
was allocated to the warrants and
$194,345
was allocated to the shares, and both were recorded as additional paid in capital. The Company also issued
89,485
warrants to purchase
89,485
shares of the Company’s restricted common shares with an exercise price of
$1.00
per share exercisable until
June 30, 2019
as commissions related to the above sale of Units.
 
During the
nine
months ended
March 31, 2018,
the Company entered into subscription agreements to sell units for
$0.50
per unit, with each unit consisting of
one
share of the Company’s restricted common stock and
one
warrant to purchase
one
half of a share of the Company’s restricted common stock for
$0.75
per share with expiry dates of
September 30, 2018
and pursuant thereto, the Company issued
213,000
units for total proceeds of
$106,500.
The Company allocated the proceeds from the
213,000
shares and the
106,500
warrants based upon their relative fair values, using the share price on the day each of the subscription agreements were entered into and the fair value of the warrants, which was determined to be
$0.05
per warrant. As a result,
$3,140
was allocated to the warrants and
$103,360
was allocated to the shares, and both were recorded as additional paid in capital.
 
During the year ended
June 30, 2017,
the Company received an interest bearing, secured promissory note for
$40,000
from Bassani as consideration to purchase warrants to purchase
800,000
shares of the Company’s restricted common stock, which warrants are exercisable at
$1.00
and have expiry dates of
December 31, 2021 (
“Bassani Warrant”). The promissory note bears interest at
4%
per annum, was secured by a perfected security interest in the Bassani Warrant, and was payable on
November 15, 2017.
Effective
November 7, 2017
an addendum to the promissory note changed the principal of the note to
$41,513
(the original principal of
$40,000
plus accrued interest of
$1,513
), changed the maturity date of the note to
July 1, 2019
and the collateral was changed to Replacement Note
1
of Bassani’s
2015
Convertible Note (Note
7
) with a balance at
November 7, 2017
of
$130,000
which will be held by the Company.
 
During the
nine
months ended
March 31, 2018,
the Company received an interest bearing, secured promissory note for
$88,250
from Bassani as consideration to purchase warrants to purchase
1,765,000
shares of the Company’s restricted common stock, which warrants are exercisable at
$0.75
and have expiry dates of
December 31, 2020.
The warrants have a
90%
exercise bonus (Note
9
). The promissory note bears interest at
4%
per annum, is secured by Bassani’s Replacement Note
1
of Bassani’s
2015
Convertible Note (Note
7
) with a balance at
November 7, 2017
of
$130,000,
which will be held by the Company. The secured promissory note is payable on
July 1, 2020.
 
During the
nine
months ended
March 31, 2018,
the Company received
two
interest bearing, secured promissory notes with an aggregate principal amount of
$46,400
from
two
former employees as consideration to purchase warrants to purchase
928,000
shares of the Company’s restricted common stock, which warrants are exercisable at
$0.75
and have expiry dates of
December 31, 2020.
These warrants have a
90%
exercise bonus (Note
9
). The promissory notes bear interest at
4%
per annum, are secured by a perfected security interest in the warrants, and are payable on
July 1, 2020.
 
During the
nine
months ended
March 31, 2018,
the Company issued
670,000
warrants to Smith and
247,000
warrants to a former employee and a consultant to purchase in aggregate
917,000
shares of the Company’s restricted common stock, which warrants are exercisable at
$0.75
per share and have expiry dates of
December 31, 2020.
The warrants were in exchange for services expensed at
$45,850,
in aggregate (
$33,500
to Smith). These warrants have a
90%
exercise bonus (Note
9
). The Company also issued
50,000
warrants to
two
consultants for services valued at
$2,500,
exercisable at
$0.75
per share which expiry dates ranging from
October 1, 2020
to
December 31, 2023.
 
During the
nine
months ended
March 31, 2018,
the Company agreed to extend the expiration dates of
5,773,706
warrants owned by certain individuals (including
5,329,869
owned by Bassani,
91,371
owned by Smith and
23,934
owned by Schafer) which were scheduled to expire at various dates ranging from
December 31, 2017
through
December 31, 2021.
The Company recorded non-cash compensation expense related to the modification of the warrants of
$296,852
(
$265,353,
$7,310
and
$1,197
for Bassani, Smith and Schafer, respectively).
 
Stock options:
 
The Company’s
2006
Consolidated Incentive Plan, as amended (the
“2006
Plan”), provides for the issuance of options (and/or other securities) to purchase up to
30,000,000
shares of the Company’s common stock. Terms of exercise and expiration of options/securities granted under the
2006
Plan
may
be established at the discretion of the Board of Directors, but
no
option
may
be exercisable for more than
ten
years.
 
During the year ended
June 30, 2017,
the Company approved the issuance of
100,000
shares in stock bonuses to an employee and a consultant with various vesting dates from
January 15, 2018
through
January 15, 2020.
In
February 2018,
the Board of Directors cancelled the stock bonuses previously approved. The Company recorded
$22,321
and
$14,784
of non-cash compensation related to the stock bonuses for the
nine
months ended
March 31, 2018
and
2017,
respectively.
 
During the
nine
months ended
March 31, 2018,
the Company approved the modification of existing stock options held by certain employees and consultants, which extended certain expiration dates. The modifications resulted in incremental non-cash compensation of
$349,656
(including
$119,350
and
$68,000
for Bassani and Schafer, respectively).
 
The Company recorded compensation expense related to employee stock options of
$1,269,700
and
$6,134
for the
three
months ended
March 31, 2018
and
2017,
respectively, and
$1,369,350
and
$135,950
for the
nine
months ended
March 31, 2018
and
2017,
respectively. The Company granted
2,647,500
and
294,500
options during the
nine
months ended
March 31, 2018
and
2017,
respectively.
 
The fair value of the options granted during the
nine
months ended
March 31, 2018
and
2017
were estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions:
 
   
Weighted
Average,
March 31,
2018
   
 
Range,
March 31,
2018
   
Weighted
Average,
March 31,
2017
   
 
Range,
March 31,
2017
 
Volatility
   
74
%    
68%
-
75
%    
79
%    
78%
-
86
%
Dividend yield
   
-
     
 
-
 
     
-
     
 
-
 
 
Risk-free interest rate
   
2.44
%    
1.75%
-
2.64
%    
1.14
%    
0.82%
-
1.17
%
Expected term (years)
   
5
     
3
-
6
     
4
     
3
-
4
 
 
The expected volatility was based on the historical price volatility of the Company’s common stock. The dividend yield represents the Company’s anticipated cash dividend on common stock over the expected term of the stock options. The U.S. Treasury bill rate for the expected term of the stock options was utilized to determine the risk-free interest rate. The expected term of stock options represents the period of time the stock options granted are expected to be outstanding based upon management’s estimates.
 
A summary of option activity under the
2006
Plan for the
nine
months ended
March 31, 2018
is as follows:
 
   
 
 
 
 
Options
   
 
Weighted-
Average
Exercise
Price
   
Weighted-
Average
Remaining
Contractual
Life
   
 
 
Aggregate
Intrinsic
Value
 
Outstanding at July 1, 2017
   
4,545,037
    $
1.42
     
2.9
    $
176,575
 
Granted
   
2,647,500
     
0.76
     
 
     
 
 
Exercised
   
-
     
-
     
 
     
 
 
Forfeited
   
-
     
-
     
 
     
 
 
Expired
   
(365,312
)    
-
     
 
     
 
 
Outstanding at March 31, 2018
   
6,827,225
    $
1.11
     
4.0
    $
-
 
Exercisable at March 31, 2018
   
6,827,225
    $
1.11
     
4.0
    $
-
 
 
 
The following table presents information relating to nonvested stock options as of
March 31, 2018:
 
   
 
 
Options
   
Weighted Average
Grant-Date Fair
Value
 
Nonvested at July 1, 2017
   
25,000
    $
0.46
 
Granted
   
2,647,500
     
0.52
 
Vested
   
(2,672,500
)    
0.51
 
Nonvested at March 31, 2018
   
-
    $
-
 
 
The total fair value of stock options that vested during the
nine
months ended
March 31, 2018
and
2017
was
$1,376,250
and
$151,770
respectively. As of
March 31, 2018,
the Company had
no
unrecognized compensation cost related to stock options.
 
Stock-based employee compensation charges in operating expenses in the Company’s financial statements for the
three
and
nine
months ended
March 31, 2018
and
2017
are as follows:
 
   
Three
months
ended
March 31,
2018
   
Three
months
ended
March 31,
2017
   
Nine months
ended
March 31,
2018
   
Nine months
ended
March 31,
2017
 
General and administrative:
                               
Fair value of stock/warrant bonuses expensed
  $
1,500
    $
-
    $
8,723
    $
6,830
 
Change in fair value from modification of option terms
   
-
     
-
     
243,761
     
166,031
 
Change in fair value from modification of warrant terms
   
7,091
     
-
     
163,956
     
-
 
Fair value of stock options expensed
   
682,485
     
6,134
     
782,135
     
112,699
 
Total
  $
691,076
    $
6,134
    $
1,198,575
    $
285,560
 
                                 
Research and development:
                               
Fair value of stock bonus expensed
  $
-
    $
-
    $
15,098
    $
7,954
 
Change in fair value from modification of option terms
   
-
     
-
     
105,895
     
11,440
 
Change in fair value from modification of warrant terms
   
219
     
-
     
132,896
     
-
 
Fair value of stock options expensed
   
587,215
     
-
     
587,215
     
23,251
 
Total
  $
587,434
    $
-
    $
841,104
    $
42,645
 
XML 26 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 9 - Commitments and Contingencies
9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
9.
     COMMITMENTS AND CONTINGENCIES:
 
Employment and consulting agreements:
 
Smith has held the positions of Director, President and General Counsel of Company and its subsidiaries under various agreements and terms since
March 2003.
On
February 10, 2015,
the Company executed an Extension Agreement with Smith pursuant to which Smith extended his employment with the Company to
December 31, 2015 (
with the Company having an option to extend his employment an additional
six
months). As part of the Extension Agreement, the balance of Smith’s existing convertible note payable as of
December 31, 2014,
adjusted for conversions subsequent to that date, was replaced with a new convertible note with an initial principal amount of
$760,520
with terms that i) materially reduce the interest rate by
50%
(from
8%
to
4%
), ii) increases the conversion price by
11%
(from
$0.45
to
$0.50
), iii) sets the conversion price at a fixed price so there can be
no
further reductions, iv) reduces the number of warrants received on conversion by
75%
(from
1
warrant per unit to
1/4
per unit) and v) extends the maturity date to
December 31, 2017.
Additionally, pursuant to the Extension Agreement, Smith: i) will continue to defer his cash compensation (
$18,000
per month) until the Board of Directors re-instates cash payments to all employees and consultants who are deferring their compensation, ii) cancelled
150,000
contingent stock bonuses previously granted to him by the Company, iii) has been granted
150,000
new options which vested immediately and iv) outstanding options and warrants owned by Smith (and his donees) have been extended and had the exercise prices reduced to
$1.50
(if the exercise price exceeded
$1.50
). In
October 2015,
the Company executed an Extension Agreement (
“FY2016
Extension Agreement”) with Smith pursuant to which Smith extended his employment with the Company to
June 30, 2016 (
with Company having an option to extend his employment an additional
six
months). As part of the
FY2016
Extension Agreement, Smith: i) will continue to defer his cash compensation (
$19,000
per month) until the Board of Directors re-instates cash payments, ii) has been granted
100,000
new options which vested immediately, and iii) has been granted
75,000
shares of common stock as an extension bonus which are immediately vested and were issued on
January 5, 2016.
As of
July 1, 2016,
Smith is working under a month to month contract extension until a longer term agreement is reached. On
October 10, 2016,
the Company approved a month to month contract extension with Smith which includes provisions for i) issuance of
25,000
bonus shares of the Company’s common shares on
January 15, 2017 (
which were subsequently cancelled), ii) grant of
75,000
options to purchase shares of the Company’s common shares at
$0.90
per share with expiry date of
December 31, 2020,
which options are subject to the exercise/extension bonus, iii) a monthly deferred salary of
$18,000
effective
October 1, 2016,
iv) the right to convert up to
$125,000
of his deferred compensation, at his sole election, at
$0.75
per share, until
March 15, 2018 (
which was expanded on
April 27, 2017
to the right to convert up to
$300,000
of his deferred compensation, at his sole election, at
$0.75
per share, until
December 31, 2018),
and v) the right to convert his deferred compensation in whole or in part, at his sole election, at any time in any amount at “market” or into securities sold in the Company’s current/most recent private offering at the price of such offering to
third
parties.
 
Since
March 31, 2005,
the Company has had various agreements with Brightcap and/or Bassani, through which the services of Bassani are provided. The Board appointed Bassani as the Company's CEO effective
May 13, 2011.
During the fiscal years
2012
and
2013,
Bassani entered into extension agreements whereby he was awarded fully vested stock grants totaling
600,000
shares,
500,000
shares of which were to be issued
January 15, 2016
and
100,000
shares were to be issued
January 15, 2017.
The stock grants were expensed in the years they were awarded as they are fully vested. The stock grants were cancelled in
October 2016.
On
February 10, 2015,
the Company executed an Extension Agreement with Bassani pursuant to which Bassani extended the term of his service to the Company to
December 31, 2017, (
with the Company having an option to extend the term an additional
six
months.) As part of the agreement, the Company’s then existing loan payable, deferred compensation and convertible note payable to Bassani, were restructured into
two
promissory notes as follows: a) The sum of the cash loaned by Bassani to the Company of
$279,000
together with
$116,277
of unreimbursed expenses through
December 31, 2014,
were placed into a new promissory note with initial principal of
$395,277
which was due and payable on
December 31, 2015
and now has been replaced with a
September 2015
Convertible Note (Note
7
). In connection with these sums and the new promissory note, Bassani was issued warrants to purchase
592,916
shares of the Company’s common stock at a price of
$1.00
until
December 31, 2020;
and b) the remaining balances of the Company’s accrued obligations to Bassani (
$1,464,545
) were replaced with a new convertible promissory note with terms that compared with the largest prior convertible note obligation to Bassani: i) materially reduce the interest rate by
50%
(from
8%
to
4%
), ii) increase the conversion price by
11%
(from
$0.45
to
$0.50
), iii) sets the conversion price at a fixed price so there can be
no
further reductions, iv) reduces the number of warrants received on conversion by
75%
(from
1
warrant per unit to
1/4
per unit) and v) extends the maturity date to
December 31, 2017 (
Note
7
). Additionally, pursuant to the Extension Agreement, Bassani i) will continue to defer his cash compensation (
$31,000
per month) until the Board of Directors re-instates cash payments to all employees and consultants who are deferring their compensation, ii) cancelled
250,000
contingent stock bonuses previously granted to him by the Company, iii) has been granted
450,000
new options which vested immediately and iv) outstanding options and warrants owned by Bassani (and his donees) have been extended and had the exercise prices reduced to
$1.50
(if the exercise price exceeded
$1.50
).During
October 2016
Bassani was granted the right to convert up to
$125,000
of his deferred compensation, at his sole election, at
$0.75
per share, until
March 15, 2018 (
which was expanded on
April 27, 2017
to the right to convert up to
$300,000
of his deferred compensation, at his sole election, at
$0.75
per share, until
December 31, 2018).
 
Execution/exercise bonuses:
 
As part of agreements the Company entered into with Bassani and Smith effective
May 15, 2013,
they were each granted the following: a) a
50%
execution/exercise bonus which shall be applied upon the effective date of the notice of intent to exercise (for options and warrants) or issuance event, as applicable, of any currently outstanding and/or subsequently acquired options, warrants and/or contingent stock bonuses owned by each (and/or their donees) as follows: i) in the case of exercise by payment of cash, the bonus shall take the form of reduction of the exercise price; ii) in the case of cashless exercise, the bonus shall be applied to reduce the exercise price prior to the cashless exercise calculations; and iii) with regard to contingent stock bonuses, issuance shall be triggered upon the Company’s common stock reaching a closing price equal to
50%
of currently specified price; and b) the right to extend the exercise period of all or part of the applicable options and warrants for up to
five
years (
one
year at a time) by annual payments of
$.05
per option or warrant to the Company on or before a date during the
three
months prior to expiration of the exercise period at least
three
business days before the end of the expiration period. Effective
January 1, 2016
such annual payments to extend warrant exercise periods have been reduced to
$.01
per option or warrant.
 
During the year ended
June 30, 2014,
the Company extended
50%
execution/exercise bonuses with the same terms as described above to Schafer and to Jon Northrop (“Northrop”), the Company’s other board member.
 
During the
nine
months ended
March 31, 2018,
the Company extended
50%
execution/exercise bonuses with the same terms as described above to all options and warrants issued prior to
November 7, 2017,
to an employee and
two
former employees who are now consultants.
 
During the
nine
months ended
March 31, 2018,
the Company increased the above
50%
execution/exercise bonus on all outstanding options and warrants owned or acquired in the future by Bassani, Smith and Schafer to
75%
(to the extent such existing exercise bonus is less than
75%
).
 
During the
nine
months ended
March 31, 2017,
the Company issued
3,460,000
warrants (
1,765,000
and
670,000
to Bassani and Smith, respectively) and
190,000
options to Schafer that have a
90%
execution/exercise bonus attached.
 
As of
March 31, 2018,
the execution/exercise bonuses ranging from
50
-
90%
were applicable to
6,634,600
of the Company’s outstanding options and
11,478,555
of the Company’s outstanding warrants.
 
Litigation:
 
On
September 25, 2014,
Pennvest exercised its right to declare the Pennvest Loan in default and has accelerated the Pennvest Loan and has demanded that
PA1
pay
$8,137,117
(principal, interest plus late charges) on or before
October 24, 2014.
PA1
did
not
make the payment and does
not
have the resources to make the payment demanded by Pennvest. During
August 2012,
the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider
1
system met the ‘technology guaranty’ standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan is now solely an obligation of
PA1.
No
litigation has commenced related to this matter but such litigation is likely if negotiations do
not
produce a resolution (Notes
1
and Note
6
).
 
The Company currently is
not
involved in any other material litigation.
XML 27 R16.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 10 - Subsequent Events
9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Subsequent Events [Text Block]
10.
     SUBSEQUENT EVENTS:
 
The Company has evaluated events that occurred subsequent to
March 31, 2018
for recognition and disclosure in the financial statements and notes to the financial statements.
 
From
April 1, 2018
through
May 8, 2018,
the Company has issued
3,750
shares of the Company’s common shares to an employee for services valued at approximately
$2,000.
 
From
April 1, 2018
through
May 8, 2018
the Company has entered into subscription agreements to sell
71,000
Units of its securities at
$0.50
per Unit for aggregate consideration of approximately
$36,000.
Each Unit consists of
one
share of common stock and a callable warrant to purchase ½ share of the Company’s common shares at
$0.75
per share until
September 30, 2018.
 
From
April 1, 2018
through
May 8, 2018,
a consultant has elected to convert deferred compensation of approximately
$60,000
under terms similar to the current Unit offering resulting in the issuance of approximately
120,000
shares of the Company’s common stock and approximately
60,000
warrants. 
 
From
April 1, 2018
through
May 8, 2018,
Smith has elected to convert his loan payable – affiliate balance of
$18,000,
accounts payable for expenses of approximately
$65,540
and
$70,000
of deferred compensation into shares of the Company’s common stock and warrants under terms similar to the current Unit offering.  Smith’s conversion results in the issuance of
307,080
shares of the Company’s common shares stock and the issuance of
153,540
warrants. 
XML 28 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies (Policies)
9 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Consolidation, Policy [Policy Text Block]
Principles of consolidation:
 
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Bion Integrated Projects Group, Inc. (“Projects Group”), Bion Technologies, Inc., BionSoil, Inc., Bion Services,
PA1,
and
PA2;
and its
58.9%
owned subsidiary, Centerpoint Corporation (“Centerpoint”). All significant intercompany accounts and transactions have been eliminated in consolidation.
 
The accompanying consolidated financial statements have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements reflect all adjustments (consisting of only normal recurring entries) that, in the opinion of management, are necessary to present fairly the financial position at
March 31, 2018,
and the results of operations and cash flows of the Company for the
three
and
nine
months ended
March 31, 2018
and
2017.
Operating results for the
three
and
nine
months ended
March 31, 2018
are
not
necessarily indicative of the results that
may
be expected for the year ending
June 30, 2018.
Property, Plant and Equipment, Policy [Policy Text Block]
Property and equipment:
 
Property and equipment are stated at cost and are depreciated, when placed into service, using the straight-line method over the estimated useful lives of the related assets, generally
three
to
twenty
years. The Company capitalizes all direct costs and all indirect incrementally identifiable costs related to the design and construction of its Integrated Projects. The Company has elected to expense all costs and filing fees related to obtaining patents (resulting in
no
related asset being recognized in the Company’s balance sheet) because the Company believes such costs and fees are immaterial (in the context of the Company’s total costs/expenses) and have
no
direct relationship to the value of the Company’s patents. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may
not
be recoverable. An impairment loss would be recognized based on the amount by which the carrying value of the assets or asset group exceeds its estimated fair value, and is recognized as a loss from operations.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]
Stock-based compensation:
 
The Company follows the provisions of Accounting Standards Codification (“ASC”)
718,
which generally requires that share-based compensation transactions be accounted and recognized in the statement of income based upon their grant date fair values.
Derivatives, Policy [Policy Text Block]
Derivative Financial Instruments:
 
Pursuant to ASC Topic
815
“Derivatives and Hedging” (“Topic
815”
), the Company reviews all financial instruments for the existence of features which
may
require fair value accounting and a related mark-to-market adjustment at each reporting period end. Once determined, the Company assesses these instruments as derivative liabilities. The fair value of these instruments is adjusted to reflect the fair value at each reporting period end, with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives.
Equity Issuances Warrants Policy [Policy Text Block]
Warrants:
 
The Company has issued warrants to purchase common shares of the Company. Warrants are valued using a fair value based method, whereby the fair value of the warrant is determined at the warrant issue date using a market-based option valuation model based on factors including an evaluation of the Company’s value as of the date of the issuance, consideration of the Company’s limited liquid resources and business prospects, the market price of the Company’s stock in its mostly inactive public market and the historical valuations and purchases of the Company’s warrants. When warrants are issued in combination with debt or equity securities, the warrants are valued and accounted for based on the relative fair value of the warrants in relation to the total value assigned to the debt or equity securities and warrants combined.
Fair Value Measurement, Policy [Policy Text Block]
Fair value measurements:
 
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The Company uses a fair value hierarchy that has
three
levels of inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value.
 
Level
1
– quoted prices (unadjusted) in active markets for identical assets or liabilities;
 
Level
2
– observable inputs other than Level
1,
quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are
not
active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and
 
Level
3
– assets and liabilities whose significant value drivers are unobservable.
 
Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability
may
fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.
 
The fair value of cash and accounts payable approximates their carrying amounts due to their short-term maturities. The fair value of the loan payable is indeterminable at this time due to the nature of the arrangement with a state agency and the fact that it is in default. The fair value of the redeemable preferred stock approximates its carrying value due to the dividends accrued on the preferred stock which are reflected as part of the redemption value. The fair value of the loan payable – affiliates, deferred compensation and convertible notes payable - affiliates are
not
practicable to estimate due to the related party nature of the underlying transactions.
Revenue Recognition, Policy [Policy Text Block]
Revenue Recognition:
 
Revenues are generated from the sale of nutrient reduction credits. The Company recognizes revenue from the sale of nutrient credits when there is persuasive evidence that an arrangement exists, when title has passed, the price is fixed or determinable, and collection is reasonably assured.
 
The Company expects that technology license fees will be generated from the licensing of Bion’s integrated system. The Company anticipates that it will charge its customers a non-refundable up-front technology license fee, which will be recognized over the estimated life of the customer relationship. In addition, any on-going technology license fees will be recognized as earned based upon the performance requirements of the agreement. Annual waste treatment fees will be recognized upon receipt. Revenues, if any, from the Company’s interest in Integrated Projects will be recognized when the entity in which the Integrated Project has been developed recognizes such revenue.
Earnings Per Share, Policy [Policy Text Block]
L
oss per share:
 
Basic loss per share amounts are calculated using the weighted average number of shares of common stock outstanding during the period. Diluted loss per share assumes the conversion, exercise or issuance of all potential common stock instruments, such as options or warrants, unless the effect is to reduce the loss per share or increase the earnings per share. During the
three
and
nine
months ended
March 31, 2018
and
2017,
the basic and diluted loss per share was the same, as the impact of potential dilutive common shares was anti-dilutive.
 
The following table represents the warrants, options and convertible securities excluded from the calculation of basic loss per share:
 
   
March 31,
2018
   
March 31,
2017
 
Warrants
   
12,176,269
     
8,382,831
 
Options
   
6,827,225
     
4,520,037
 
Convertible debt
   
7,337,805
     
8,517,079
 
Convertible preferred stock
   
16,750
     
15,750
 
 
The following is a reconciliation of the denominators of the basic and diluted loss per share computations for the
three
and
nine
months ended
March 31, 2018
and
2017:
 
   
Three months
ended
March 31,
2018
   
Three months
ended
March 31,
2017
   
Nine months
ended
March 31,
2018
   
Nine months
ended
March 31,
2017
 
Shares issued – beginning of period
   
25,011,939
     
23,784,363
     
24,748,213
     
23,573,057
 
Shares held by subsidiaries (Note 7)
   
(704,309
)    
(704,309
)    
(704,309
)    
(704,309
)
Shares outstanding – beginning of period
   
24,307,630
     
23,080,054
     
24,043,904
     
22,868,748
 
Weighted average shares for fully vested stock bonuses
   
-
     
-
     
-
     
289,051
 
Weighted average shares issued during the period
   
158,184
     
268,927
     
209,903
     
249,827
 
Basic weighted average shares –  end of period
   
24,465,814
     
23,348,981
     
24,253,807
     
23,407,626
 
New Accounting Pronouncements, Policy [Policy Text Block]
Recent Accounting Pronouncements:
 
The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financial statements properly reflect the change.
 
In
May 2014,
the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No.
2014
-
09
“Revenue from Contracts from Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic
605
),” and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. ASU
2014
-
09
is effective for fiscal years, and interim periods within those years, beginning after
December 15, 2017
and earlier application is permitted only as of annual reporting periods beginning after
December 15, 2016.
Once the Company begins to generate revenue, the Company does
not
anticipate any material impact on its operations and financial statements.
 
In
August 2014,
the FASB issued ASU
No.
2014
-
15,
“Presentation of Financial Statements – Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within
one
year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective for annual periods ending after
December 15, 2016,
and interim periods thereafter, early application is permitted. The adoption of ASU
No.
2014
-
15
did
not
have a material impact on the Company’s financial statements.
 
In
May 2017,
the FASB issued ASU
No.
2017
-
09
“Scope of Modification Accounting” which clarifies when changes to the terms or conditions of a share-based payment awards must be accounted for as modifications. The new guidance will reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications. ASU
No.
2017
-
09
will be applied prospectively to awards modified on or after the adoption date. The guidance is effective for annual periods, and interim periods within those annual periods beginning after
December 15, 2017,
with early adoption permitted. The Company does
not
anticipate any material impact on the Company’s financial statements upon adoption.
XML 29 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 2 - Significant Accounting Policies (Tables)
9 Months Ended
Mar. 31, 2018
Notes Tables  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]
   
March 31,
2018
   
March 31,
2017
 
Warrants
   
12,176,269
     
8,382,831
 
Options
   
6,827,225
     
4,520,037
 
Convertible debt
   
7,337,805
     
8,517,079
 
Convertible preferred stock
   
16,750
     
15,750
 
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
   
Three months
ended
March 31,
2018
   
Three months
ended
March 31,
2017
   
Nine months
ended
March 31,
2018
   
Nine months
ended
March 31,
2017
 
Shares issued – beginning of period
   
25,011,939
     
23,784,363
     
24,748,213
     
23,573,057
 
Shares held by subsidiaries (Note 7)
   
(704,309
)    
(704,309
)    
(704,309
)    
(704,309
)
Shares outstanding – beginning of period
   
24,307,630
     
23,080,054
     
24,043,904
     
22,868,748
 
Weighted average shares for fully vested stock bonuses
   
-
     
-
     
-
     
289,051
 
Weighted average shares issued during the period
   
158,184
     
268,927
     
209,903
     
249,827
 
Basic weighted average shares –  end of period
   
24,465,814
     
23,348,981
     
24,253,807
     
23,407,626
 
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Property and Equipment (Tables)
9 Months Ended
Mar. 31, 2018
Notes Tables  
Property, Plant and Equipment [Table Text Block]
   
March 31,
2017
   
June 30,
2017
 
Machinery and equipment
  $
2,222,670
    $
2,222,670
 
Buildings and structures
   
401,470
     
401,470
 
Computers and office equipment
   
171,613
     
171,613
 
     
2,795,753
     
2,795,753
 
Less accumulated depreciation
   
(2,793,869
)    
(2,792,561
)
    $
1,884
    $
3,192
 
XML 31 R20.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Stockholders' Equity (Tables)
9 Months Ended
Mar. 31, 2018
Notes Tables  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
   
Weighted
Average,
March 31,
2018
   
 
Range,
March 31,
2018
   
Weighted
Average,
March 31,
2017
   
 
Range,
March 31,
2017
 
Volatility
   
74
%    
68%
-
75
%    
79
%    
78%
-
86
%
Dividend yield
   
-
     
 
-
 
     
-
     
 
-
 
 
Risk-free interest rate
   
2.44
%    
1.75%
-
2.64
%    
1.14
%    
0.82%
-
1.17
%
Expected term (years)
   
5
     
3
-
6
     
4
     
3
-
4
 
Share-based Compensation, Stock Options, Activity [Table Text Block]
   
 
 
 
 
Options
   
 
Weighted-
Average
Exercise
Price
   
Weighted-
Average
Remaining
Contractual
Life
   
 
 
Aggregate
Intrinsic
Value
 
Outstanding at July 1, 2017
   
4,545,037
    $
1.42
     
2.9
    $
176,575
 
Granted
   
2,647,500
     
0.76
     
 
     
 
 
Exercised
   
-
     
-
     
 
     
 
 
Forfeited
   
-
     
-
     
 
     
 
 
Expired
   
(365,312
)    
-
     
 
     
 
 
Outstanding at March 31, 2018
   
6,827,225
    $
1.11
     
4.0
    $
-
 
Exercisable at March 31, 2018
   
6,827,225
    $
1.11
     
4.0
    $
-
 
Schedule of Nonvested Share Activity [Table Text Block]
   
 
 
Options
   
Weighted Average
Grant-Date Fair
Value
 
Nonvested at July 1, 2017
   
25,000
    $
0.46
 
Granted
   
2,647,500
     
0.52
 
Vested
   
(2,672,500
)    
0.51
 
Nonvested at March 31, 2018
   
-
    $
-
 
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]
   
Three
months
ended
March 31,
2018
   
Three
months
ended
March 31,
2017
   
Nine months
ended
March 31,
2018
   
Nine months
ended
March 31,
2017
 
General and administrative:
                               
Fair value of stock/warrant bonuses expensed
  $
1,500
    $
-
    $
8,723
    $
6,830
 
Change in fair value from modification of option terms
   
-
     
-
     
243,761
     
166,031
 
Change in fair value from modification of warrant terms
   
7,091
     
-
     
163,956
     
-
 
Fair value of stock options expensed
   
682,485
     
6,134
     
782,135
     
112,699
 
Total
  $
691,076
    $
6,134
    $
1,198,575
    $
285,560
 
                                 
Research and development:
                               
Fair value of stock bonus expensed
  $
-
    $
-
    $
15,098
    $
7,954
 
Change in fair value from modification of option terms
   
-
     
-
     
105,895
     
11,440
 
Change in fair value from modification of warrant terms
   
219
     
-
     
132,896
     
-
 
Fair value of stock options expensed
   
587,215
     
-
     
587,215
     
23,251
 
Total
  $
587,434
    $
-
    $
841,104
    $
42,645
 
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 1 - Organization, Nature of Business, Going Concern and Management's Plans (Details Textual) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Mar. 31, 2018
Mar. 31, 2017
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2015
Sep. 25, 2014
Jan. 26, 2009
Construction Loan                 $ 7,750,000
Impairment of Long-Lived Assets Held-for-use           $ 1,684,562      
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total $ (1,730,412) $ (582,290) $ (2,770,999) $ (1,960,337) $ (2,463,000) (4,522,000)      
Working Capital (10,267,000)   (10,267,000)            
Stockholders' Equity Attributable to Parent, Ending Balance (13,818,592)   (13,818,592)   (15,176,614)        
Proceeds from Issuance or Sale of Equity, Total     307,000   $ 452,000 761,000      
Deferred Compensation Liability, Amount Cancelled     2,403,832            
Minimum [Member]                  
Capital Required for Capital Adequacy 2,500,000   2,500,000            
Maximum [Member]                  
Capital Required for Capital Adequacy $ 50,000,000   50,000,000            
PA-1 [Member]                  
Debt Instrument, Debt Default, Amount               $ 8,137,117  
Property, Plant and Equipment of PA1 [Member]                  
Impairment of Long-Lived Assets Held-for-use     $ 0     $ 1,684,562 $ 3,750,000    
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 2 - Significant Accounting Policies (Details Textual)
9 Months Ended
Mar. 31, 2018
Minimum [Member]  
Property, Plant and Equipment, Useful Life 3 years
Maximum [Member]  
Property, Plant and Equipment, Useful Life 20 years
Centerpoint [Member]  
Equity Method Investment, Ownership Percentage 58.90%
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 2 - Significant Accounting Policies - Antidilutive Securities (Details) - shares
9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Warrant [Member]    
Antidilutive securities (in shares) 12,176,269 8,382,831
Employee Stock Option [Member]    
Antidilutive securities (in shares) 6,827,225 4,520,037
Convertible Debt Securities [Member]    
Antidilutive securities (in shares) 7,337,805 8,517,079
Convertible Preferred Stock Antidilutive Securities [Member]    
Antidilutive securities (in shares) 16,750 15,750
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 2 - Significant Accounting Policies - Earnings Per Share, Basic and Diluted (Details) - shares
3 Months Ended 9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Jun. 30, 2017
Dec. 31, 2016
Jun. 30, 2016
Shares issued – beginning of period (in shares) 25,327,394   25,327,394   25,011,939 24,748,213 23,784,363 23,573,057
Shares held by subsidiaries (Note 7) (in shares)         (704,309) (704,309) (704,309) (704,309)
Shares outstanding – beginning of period (in shares) 24,623,085   24,623,085   24,307,630 24,043,904 23,080,054 22,868,748
Weighted average shares for fully vested stock bonuses (in shares) 289,051        
Weighted average shares issued during the period (in shares) 158,184 268,927 209,903 249,827        
Basic weighted average shares – end of period (in shares) 24,465,814 23,348,981 24,253,807 23,407,626        
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Property and Equipment (Details Textual) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Mar. 31, 2018
Mar. 31, 2017
Jun. 30, 2016
Jun. 30, 2015
Impairment of Long-Lived Assets Held-for-use         $ 1,684,562  
Depreciation, Total $ 436 $ 502 $ 1,308 $ 1,507    
Property, Plant and Equipment of PA1 [Member]            
Impairment of Long-Lived Assets Held-for-use     $ 0   $ 1,684,562 $ 3,750,000
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Property and Equipment - Property and Equipment (Details) - USD ($)
Mar. 31, 2018
Jun. 30, 2017
Machinery and equipment $ 2,222,670 $ 2,222,670
Buildings and structures 401,470 401,470
Computers and office equipment 171,613 171,613
Total 2,795,753 2,795,753
Less accumulated depreciation (2,793,869) (2,792,561)
Net $ 1,884 $ 3,192
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 4 - Loans Payable - Affiliates (Details Textual) - USD ($)
9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Proceeds from Related Party Debt $ 30,500
Repayments of Related Party Debt 12,500
President [Member]    
Proceeds from Related Party Debt 18,000  
Chief Executive Officer [Member]    
Repayments of Related Party Debt $ 12,500  
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 5 - Deferred Compensation (Details Textual) - USD ($)
3 Months Ended 9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Mar. 31, 2018
Mar. 31, 2017
Jun. 30, 2017
Deferred Compensation Liability, Current, Total $ 345,929 $ 1,962,885 $ 345,929 $ 1,962,885 $ 2,107,262
Interest Rate on Deferred Compensation 4.00%   4.00%    
Deferred Compensation Conversion Days     5 days    
Deferred Compensation Consecutive Trading Days     10 days    
Deferred Compensation Liability, Amount Cancelled     $ 2,403,832    
Adjustments to Additional Paid in Capital, Related Party Debt Extinguishment     1,685,252    
Gain (Loss) on Extinguishment of Liabilities 718,580  
Interest Expense, Total 84,714 94,640 276,815 281,969  
Interest Expense on Deferred Compensation Obligation [Member]          
Interest Expense, Total     32,299 39,592  
Interest Expense, Related Party     26,084 30,937  
Chief Executive Officer [Member]          
Deferred Compensation Liability, Current, Total 124,612 873,273 124,612 873,273  
Deferred Compensation, Convertible to Common Stock $ 300,000   $ 300,000    
Deferred Compensation, Convertible to Common Stock, Price Per Share $ 0.75   $ 0.75    
Deferred Compensation Liability, Amount Cancelled     $ 1,147,210    
President [Member]          
Deferred Compensation Liability, Current, Total $ 72,355 338,480 72,355 338,480  
Deferred Compensation, Convertible to Common Stock $ 300,000   $ 300,000    
Deferred Compensation, Convertible to Common Stock, Price Per Share $ 0.75   $ 0.75    
Deferred Compensation Liability, Amount Cancelled     $ 416,656    
Executive Vice Chairman [Member]          
Deferred Compensation Liability, Current, Total   118,376   118,376  
Deferred Compensation Liability, Amount Cancelled     121,386    
Consultants [Member]          
Deferred Compensation Liability, Current, Total $ 75,478 $ 391,272 $ 75,478 $ 391,272  
Interest Rate on Deferred Compensation 3.00%   3.00%    
Deferred Compensation Liability, Amount Cancelled     $ 718,580    
Individual Employee [Member]          
Deferred Compensation Liability, Current, Total $ 984   $ 984    
Deferred Compensation Shares Issued upon Conversion     1,893    
Former Employee [Member]          
Deferred Compensation Liability, Current, Total $ 72,500   $ 72,500    
Chief Executive Officer, President, and Executive Vice Chairman [Member]          
Deferred Compensation Liability, Amount Cancelled     $ 1,685,252    
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 6 - Loan Payable (Details Textual) - USD ($)
3 Months Ended 9 Months Ended 69 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Mar. 31, 2018
Mar. 31, 2017
Mar. 31, 2018
Sep. 25, 2014
Jan. 26, 2009
Construction Loan             $ 7,750,000
PA-1 [Member]              
Debt Instrument, Debt Default, Amount           $ 8,137,117  
Pennvest Loan [Member]              
Construction Loan $ 8,970,818   $ 8,970,818   $ 8,970,818    
Accrued Interest and Late Charges Payable 1,216,818   1,216,818   1,216,818    
Line of Credit Facility, Maximum Borrowing Capacity 7,754,000   $ 7,754,000   7,754,000    
Term Loan, Period for Interest Only Payments     3 years        
Term Loan, Period for Amortization of Principal     10 years        
Repayments of Long-term Debt, Total         2,742,000    
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months 760,000   $ 760,000   760,000    
Long-term Debt, Maturities, Repayments of Principal in Year Two 771,000   771,000   771,000    
Long-term Debt, Maturities, Repayments of Principal in Year Three 794,000   794,000   794,000    
Long-term Debt, Maturities, Repayments of Principal in Year Four 819,000   819,000   819,000    
Long-term Debt, Maturities, Repayments of Principal in Year Five 846,000   846,000   846,000    
Long-term Debt, Maturities, Repayments of Principal after Year Five 1,022,000   1,022,000   $ 1,022,000    
Interest Expense, Debt, Total $ 49,373 $ 49,373 $ 148,121 $ 148,121      
Pennvest Loan [Member] | Years One Through Five [Member]              
Debt Instrument, Interest Rate During Period     2.547%        
Pennvest Loan [Member] | Years Six Through Maturity [Member]              
Debt Instrument, Interest Rate During Period     3.184%        
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Convertible Notes Payable - Affiliates (Details Textual) - USD ($)
3 Months Ended 9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Mar. 31, 2018
Mar. 31, 2017
Nov. 07, 2017
Jun. 30, 2017
Jun. 30, 2016
Feb. 10, 2015
Convertible Notes Payable, Noncurrent $ 3,498,901   $ 3,498,901     $ 3,316,060    
Interest Expense, Total $ 84,714 $ 94,640 $ 276,815 $ 281,969        
Chief Executive Officer [Member]                
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 1.50   $ 1.50          
President [Member]                
Class of Warrant or Right, Exercise Price of Warrants or Rights               $ 1.50
January 2015 Convertible Notes [Member] | Convertible Debt [Member]                
Debt Instrument, Interest Rate, Stated Percentage 4.00%   4.00%          
Number of Shares Per Unit 1   1          
Number of Warrants Per Unit 0.25   0.25          
Conversion Price Per Unit $ 0.50   $ 0.50          
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 1   $ 1          
Debt Instrument, Convertible, Beneficial Conversion Feature     $ 0          
Interest Expense, Total $ 25,677 25,677 78,172 78,172        
January 2015 Convertible Notes [Member] | Convertible Debt [Member] | Chief Executive Officer [Member]                
Convertible Notes Payable, Noncurrent 1,654,736 1,596,155 1,654,736 1,596,155        
January 2015 Convertible Notes [Member] | Convertible Debt [Member] | President [Member]                
Convertible Notes Payable, Noncurrent 859,282 828,861 859,282 828,861        
January 2015 Convertible Notes [Member] | Convertible Debt [Member] | Executive Vice Chairman [Member]                
Convertible Notes Payable, Noncurrent $ 427,416 412,284 $ 427,416 412,284        
September 2015 Convertible Notes [Member] | Chief Executive Officer [Member]                
Convertible Notes Payable, Total             $ 405,831  
September 2015 Convertible Notes [Member] | Executive Vice Chairman [Member]                
Convertible Notes Payable, Total             82,921  
September 2015 Convertible Notes [Member] | Chief Financial Officer [Member]                
Convertible Notes Payable, Total             $ 16,382  
September 2015 Convertible Notes [Member] | Convertible Debt [Member]                
Debt Instrument, Interest Rate, Stated Percentage 4.00%   4.00%          
Conversion Price Per Unit $ 0.60   $ 0.60          
Debt Instrument, Convertible, Beneficial Conversion Feature     $ 0          
Interest Expense, Total $ 5,341 4,983 15,743 15,168        
September 2015 Convertible Notes [Member] | Convertible Debt [Member] | Chief Executive Officer [Member]                
Convertible Notes Payable, Total 447,989 431,181 447,989 431,181        
September 2015 Convertible Notes [Member] | Convertible Debt [Member] | President [Member]                
Convertible Notes Payable, Total 18,061 17,405 18,061 17,405        
September 2015 Convertible Notes [Member] | Convertible Debt [Member] | Executive Vice Chairman [Member]                
Convertible Notes Payable, Total 91,417 $ 88,101 91,417 $ 88,101        
Replacement Note Held as Collateral [Member] | Chief Executive Officer [Member]                
Convertible Notes Payable, Total $ 130,000   $ 130,000   $ 130,000      
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Stockholders' Equity (Details Textual)
3 Months Ended 9 Months Ended 12 Months Ended
Nov. 07, 2017
USD ($)
Feb. 10, 2015
$ / shares
shares
Jul. 01, 2014
$ / shares
shares
Mar. 31, 2018
USD ($)
$ / shares
shares
Mar. 31, 2017
USD ($)
Mar. 31, 2018
USD ($)
$ / shares
shares
Mar. 31, 2017
USD ($)
shares
Mar. 31, 2016
USD ($)
Jun. 30, 2017
USD ($)
$ / shares
shares
Jun. 30, 2016
USD ($)
shares
Dec. 31, 2017
shares
Nov. 06, 2017
USD ($)
Dec. 31, 2016
shares
May 15, 2013
Common Stock Voting Rights Votes Per Share           1                
Shares Held by Subsidiaries                 704,309 704,309 704,309   704,309  
Stock Issued During Period, Shares, Issued for Services           18,849                
Stock Issued During Period, Value, Issued for Services | $           $ 14,631                
Proceeds from the Sale of Units | $           $ 306,997 $ 249,628              
Class of Warrant or Right, Issued During Period           3,460,000                
Adjustments to Additional Paid in Capital, Warrant Issued | $           $ 48,350                
Common Stock Conversions, Inducements | $       $ 8,000 8,000              
Proceeds from Warrant Exercises | $           $ 40,001              
Class of Warrant or Right, Outstanding       12,200,000   12,200,000                
Weighted Average Exercise Price for Outstanding Warrants | $ / shares           $ 1.07                
Weighted Average Remaining Contractual Life for Outstanding Warrants           3 years 219 days                
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Non-Cash Compensation Expense | $           $ 296,852                
Share-based Compensation, Total | $           $ 2,101,160 $ 481,565              
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross           2,647,500 294,500              
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $             $ 1,376,250 $ 151,770            
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $       $ 0   $ 0                
Expired [Member]                            
Class of Warrant or Right, Number of Securities Called by Warrants or Rights       322,110   322,110                
Warrants Issued as Commissions [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares       $ 1   $ 1                
Class of Warrant or Right, Issued During Period           89,485                
Class of Warrant or Right, Number of Securities Called by Warrants or Rights       89,485   89,485                
Warrants in Connection with Services [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares       $ 0.75   $ 0.75                
Class of Warrant or Right, Number of Securities Called by Warrants or Rights       917,000   917,000                
Execution Bonus as Percentage of Exercised Options and Warrants       90.00%   90.00%                
Class of Warrant or Right, Aggregate Purchase Price of Warrants or Rights | $           $ 45,850                
Warrants with Extended Expiration Dates [Member]                            
Class of Warrant or Right, Outstanding       5,773,706   5,773,706                
Employee Stock Option [Member]                            
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized       30,000,000   30,000,000                
Allocated Share-based Compensation Expense, Total | $       $ 1,269,700 $ 6,134 $ 1,369,350 135,950              
Stock Option Held by Employees and Consultants [Member]                            
Share-based Compensation, Total | $           $ 349,656                
Subscription Agreement [Member]                            
Share Price | $ / shares       $ 1   $ 1                
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares       $ 0.75   $ 0.75                
Number of Warrants Per Unit       1   1                
Warrant Component of Equity Unit, Number of Shares of Restricted Common Stock Called by Each Warrant       0.5   0.5                
Sale of Units, Number Of Units Subscribed           267,331                
Proceeds from the Sale of Units | $           $ 200,497                
Proceeds from Sale of Units, Net of Commissions | $           $ 185,622                
Stock Issued During Period, Shares, New Issues           267,331                
Class of Warrant or Right, Issued During Period           133,666                
Warrant Fair Value Price Per Share | $ / shares       $ 0.05   $ 0.05                
Adjustments to Additional Paid in Capital, Warrant Issued | $           $ 6,152                
Adjustments to Additional Paid in Capital, Other | $           $ 194,345                
Subscription Agreement [Member] | Restricted Stock [Member]                            
Number of Shares Per Unit       1   1                
Subscription Agreement Two [Member]                            
Share Price | $ / shares       $ 0.75   $ 0.75                
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares       $ 0.50   $ 0.50                
Number of Warrants Per Unit       1   1                
Warrant Component of Equity Unit, Number of Shares of Restricted Common Stock Called by Each Warrant       0.5   0.5                
Sale of Units, Number Of Units Subscribed           213,000                
Proceeds from the Sale of Units | $           $ 106,500                
Stock Issued During Period, Shares, New Issues           213,000                
Class of Warrant or Right, Issued During Period           106,500                
Warrant Fair Value Price Per Share | $ / shares       $ 0.05   $ 0.05                
Adjustments to Additional Paid in Capital, Warrant Issued | $           $ 3,140                
Adjustments to Additional Paid in Capital, Other | $           $ 103,360                
Subscription Agreement Two [Member] | Restricted Stock [Member]                            
Number of Shares Per Unit       1   1                
Subscription Agreement Three [Member]                            
Class of Warrant or Right, Reduced Exercise Price From Previous Exercise Price of Warrants or Rights | $ / shares       $ 0.50   $ 0.50                
Common Stock Conversions, Inducements | $           $ 8,000                
Class of Warrant or Right, Exercised During Period           80,001                
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total           80,001                
Proceeds from Warrant Exercises | $           $ 40,001                
Minimum [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares       0.75   $ 0.75                
Minimum [Member] | Expired [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares       1   1                
Maximum [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares       3   3                
Maximum [Member] | Expired [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares       2.50   $ 2.50                
Maximum [Member] | Employee Stock Option [Member]                            
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period           10 years                
Employees and Consultants [Member] | Stock Bonus [Member]                            
Stock Issued During Period, Value, New Issues | $                 $ 100,000          
Allocated Share-based Compensation Expense, Total | $           $ 22,321 $ 14,784              
Employees and Consultants [Member] | Minimum [Member]                            
Share Price | $ / shares       0.66   $ 0.66                
Employees and Consultants [Member] | Maximum [Member]                            
Share Price | $ / shares       0.91   0.91                
Chief Executive Officer [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares       $ 1.50   $ 1.50                
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Non-Cash Compensation Expense | $           $ 265,353                
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross           450,000                
Chief Executive Officer [Member] | Replacement Note Held as Collateral [Member]                            
Convertible Notes Payable, Total | $ $ 130,000     $ 130,000   $ 130,000                
Chief Executive Officer [Member] | Secured Promissory Note, Consideration for Warrants Expired on December 31, 2020 [Member]                            
Convertible Notes Payable, Total | $       130,000   130,000                
Chief Executive Officer [Member] | Secured Promissory Note, Consideration for Bassani Warrants [Member]                            
Financing Receivable, Net, Total | $ 41,513               $ 40,000     $ 40,000    
Financing Receivable, Interest Rate, Stated Percentage                 4.00%          
Financing Receivable , Increase, Accrued Interest | $ $ 1,513                          
Chief Executive Officer [Member] | Secured Promissory Note, Consideration for Warrants Expired on December 31, 2020 [Member]                            
Financing Receivable, Net, Total | $       $ 88,250   $ 88,250                
Financing Receivable, Interest Rate, Stated Percentage       4.00%   4.00%                
Chief Executive Officer [Member] | Bassani Warrants, Expired on December 31, 2021 [Member[                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares                 $ 1          
Class of Warrant or Right, Number of Securities Called by Warrants or Rights                 800,000          
Chief Executive Officer [Member] | Bassani Warrants, Expired on December 31, 2020 [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares       $ 0.75   $ 0.75                
Class of Warrant or Right, Number of Securities Called by Warrants or Rights       1,765,000   1,765,000                
Execution Bonus as Percentage of Exercised Options and Warrants       90.00%   90.00%                
Chief Executive Officer [Member] | Warrants in Connection with Services [Member]                            
Class of Warrant or Right, Issued During Period           1,765,000                
Chief Executive Officer [Member] | Warrants with Extended Expiration Dates [Member]                            
Class of Warrant or Right, Outstanding       5,329,869   5,329,869                
Chief Executive Officer [Member] | Stock Bonus [Member]                            
Execution Bonus as Percentage of Exercised Options and Warrants                           50.00%
Chief Executive Officer [Member] | Stock Option Held by Employees and Consultants [Member]                            
Share-based Compensation, Total | $           $ 119,350                
Two Former Employees [Member] | Secured Promissory Note, Consideration for Warrants Issue to Former Employees [Member]                            
Financing Receivable, Net, Total | $       $ 46,400   $ 46,400                
Financing Receivable, Interest Rate, Stated Percentage       4.00%   4.00%                
Two Former Employees [Member] | Two Former Employees Warrants [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares       $ 0.75   $ 0.75                
Class of Warrant or Right, Number of Securities Called by Warrants or Rights       928,000   928,000                
Execution Bonus as Percentage of Exercised Options and Warrants       90.00%   90.00%                
President [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares   $ 1.50                        
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Non-Cash Compensation Expense | $           $ 7,310                
President [Member] | Warrants in Connection with Services [Member]                            
Class of Warrant or Right, Issued During Period           670,000                
Class of Warrant or Right, Aggregate Purchase Price of Warrants or Rights | $           $ 33,500                
President [Member] | Warrants with Extended Expiration Dates [Member]                            
Class of Warrant or Right, Outstanding       91,371   91,371                
President [Member] | Stock Bonus [Member]                            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross   150,000                        
Former Employee and a Consultant [Member] | Warrants in Connection with Services [Member]                            
Class of Warrant or Right, Issued During Period           247,000                
Two Consultants [Member] | Warrants in Connection with Services [Member]                            
Class of Warrant or Right, Issued During Period           50,000                
Class of Warrant or Right, Number of Securities Called by Warrants or Rights       0.75   0.75                
Class of Warrant or Right, Aggregate Purchase Price of Warrants or Rights | $           $ 2,500                
Executive Vice Chairman [Member]                            
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Non-Cash Compensation Expense | $           $ 1,197                
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross           190,000                
Executive Vice Chairman [Member] | Warrants in Connection with Services [Member]                            
Class of Warrant or Right, Issued During Period           670,000                
Executive Vice Chairman [Member] | Warrants with Extended Expiration Dates [Member]                            
Class of Warrant or Right, Outstanding       23,934   23,934                
Executive Vice Chairman [Member] | Stock Option Held by Employees and Consultants [Member]                            
Share-based Compensation, Total | $           $ 68,000                
Centerpoint [Member]                            
Shares Held by Subsidiaries       704,309   704,309                
Series B Preferred Stock [Member]                            
Preferred Stock, Shares Outstanding, Ending Balance     200 200   200     200          
Preferred Stock, Par or Stated Value Per Share | $ / shares     $ 0.01 $ 0.01   $ 0.01     $ 0.01          
Preferred Stock, Convertible Option Per Share | $ / shares     $ 2                      
Preferred Stock, Dividend Rate, Percentage     2.50%                      
Preferred Stock, Redemption Price Per Share | $ / shares     $ 100                      
Convertible Preferred Stock Redemption Period     3 years                      
Dividends, Preferred Stock, Total | $       $ 500   $ 1,500     $ 2,000 $ 2,000        
Dividends Payable | $       $ 13,500   $ 13,500                
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Stockholders' Equity - Black-scholes Valuation Assumptions for Options (Details) - Employee Stock Option [Member]
9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Weighted Average [Member]    
Volatility 74.00% 79.00%
Dividend yield
Risk-free interest rate 2.44% 1.14%
Expected term (years) (Year) 5 years 4 years
Minimum [Member]    
Volatility 68.00% 78.00%
Dividend yield  
Risk-free interest rate 1.75% 0.82%
Expected term (years) (Year) 3 years 3 years
Maximum [Member]    
Volatility 75.00% 86.00%
Dividend yield  
Risk-free interest rate 2.64% 1.17%
Expected term (years) (Year) 6 years 4 years
XML 44 R33.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Stockholders' Equity - Stock Options Activity (Details) - USD ($)
9 Months Ended 12 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Jun. 30, 2017
Outstanding, beginning balance (in shares) 4,545,037    
Outstanding, weighted-average exercise price, beginning balance (in dollars per share) $ 1.42    
Outstanding, weighted-average remaining contractual life (Year) 4 years   2 years 328 days
Outstanding, aggregate intrinsic value   $ 176,575
Granted, options (in shares) 2,647,500 294,500  
Granted, weighted-average exercise price (in dollars per share) $ 0.76    
Expired, options (in shares) (365,312)    
Expired, weighted-average exercise price (in dollars per share)    
Outstanding, ending balance (in shares) 6,827,225   4,545,037
Outstanding, weighted-average exercise price, ending balance (in dollars per share) $ 1.11   $ 1.42
Exercisable, options (in shares) 6,827,225    
Exercisable, weighted-average exercise price (in dollars per share) $ 1.11    
Exercisable, weighted-average remaining contractual life (Year) 4 years    
Exercisable, aggregate intrinsic value    
XML 45 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Stockholders' Equity - Nonvested Share Activity (Details) - $ / shares
9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Nonvested (in shares) 25,000  
Nonvested, weighted-average grant-date fair value (in dollars per share) $ 0.46  
Granted, options (in shares) 2,647,500 294,500
Granted, weighted-average grant-date fair value (in dollars per share) $ 0.52  
Vested (in shares) (2,672,500)  
Vested, weighted-average grant-date fair value (in dollars per share) $ 0.51  
Nonvested (in shares)  
Nonvested, weighted-average grant-date fair value (in dollars per share)  
XML 46 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Stockholders' Equity - Allocation of Recognized Period Costs (Details) - USD ($)
3 Months Ended 9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Mar. 31, 2018
Mar. 31, 2017
Employee Stock Option [Member]        
Allocated Share-based Compensation Expense $ 1,269,700 $ 6,134 $ 1,369,350 $ 135,950
General and Administrative Expense [Member]        
Allocated Share-based Compensation Expense 691,076 6,134 1,198,575 285,560
Change in fair value from modification of warrant terms 7,091 163,956
General and Administrative Expense [Member] | Stock Bonus [Member]        
Allocated Share-based Compensation Expense 1,500 8,723 6,830
General and Administrative Expense [Member] | Employee Stock Option [Member]        
Allocated Share-based Compensation Expense 682,485 6,134 782,135 112,699
Change in fair value from modification of option terms 243,761 166,031
Research and Development Expense [Member]        
Allocated Share-based Compensation Expense 587,434 841,104 42,645
Change in fair value from modification of warrant terms 219 132,896
Research and Development Expense [Member] | Stock Bonus [Member]        
Allocated Share-based Compensation Expense 15,098 7,954
Research and Development Expense [Member] | Employee Stock Option [Member]        
Allocated Share-based Compensation Expense 587,215 587,215 23,251
Change in fair value from modification of option terms $ 105,895 $ 11,440
XML 47 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 9 - Commitments and Contingencies (Details Textual) - USD ($)
1 Months Ended 9 Months Ended 24 Months Ended
Jan. 15, 2017
Oct. 10, 2016
Jan. 05, 2016
Feb. 10, 2015
Sep. 25, 2014
May 15, 2013
Oct. 31, 2016
Oct. 31, 2015
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2013
Jun. 30, 2017
Apr. 27, 2017
Dec. 31, 2015
Dec. 31, 2014
Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross                 2,647,500 294,500            
Stock Issued During Period, Shares, Issued for Services                 18,849              
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price                 $ 0.76              
Common Stock, Capital Shares Reserved for Future Issuance 100,000                              
Extension of Exercise Period Annual Payment per Option or Warrant           $ 0.05                    
Class of Warrant or Right, Issued During Period                 3,460,000              
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance                 6,827,225     4,545,037        
Class of Warrant or Right, Outstanding                 12,200,000              
Pennvest Loan [Member]                                
Loss Contingency, Damages Sought, Value         $ 8,137,117                      
Minimum [Member]                                
Class of Warrant or Right, Exercise Price of Warrants or Rights                 $ 0.75              
Maximum [Member]                                
Class of Warrant or Right, Exercise Price of Warrants or Rights                 3              
Warrants in Connection with Services [Member]                                
Class of Warrant or Right, Exercise Price of Warrants or Rights                 $ 0.75              
Class of Warrant or Right, Number of Securities Called by Warrants or Rights                 917,000              
Execution Bonus as Percentage of Exercised Options and Warrants                 90.00%              
Exercise Bonus [Member]                                
Execution Bonus as Percentage of Exercised Options and Warrants                 90.00%              
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance                 6,634,600              
Class of Warrant or Right, Outstanding                 11,478,555              
Exercise Bonus [Member] | Minimum [Member]                                
Execution Bonus as Percentage of Exercised Options and Warrants                 50.00%              
Exercise Bonus [Member] | Maximum [Member]                                
Execution Bonus as Percentage of Exercised Options and Warrants                 90.00%              
Mr. Bassani [Member]                                
Convertible Notes Payable, Total                 $ 1,464,545              
Mr. Bassani [Member] | Convertible Debt [Member]                                
Debt Instrument, Interest Rate Reduction, Percentage                 50.00%              
Debt Instrument, Interest Rate, Stated Percentage                 4.00%           8.00%  
Debt Instrument, Convertible Conversion Price, Incease, Percentage                 11.00%              
Debt Instrument, Convertible, Conversion Price                 $ 0.50           $ 0.45  
Number of Warrants Per Unit Reduction Percentage                 75.00%              
President [Member]                                
Monthly Officers' Cash Compensation       $ 18,000                        
Class of Warrant or Right, Exercise Price of Warrants or Rights       $ 1.50                        
President [Member] | Warrants in Connection with Services [Member]                                
Class of Warrant or Right, Issued During Period                 670,000              
President [Member] | FY2016 Extension Agreement [Member]                                
Monthly Officers' Cash Compensation               $ 19,000                
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross               100,000                
President [Member] | Stock Bonus [Member]                                
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period       150,000                        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross       150,000                        
President [Member] | Extension Bonus [Member] | FY2016 Extension Agreement [Member]                                
Monthly Officers' Cash Compensation             $ 18,000                  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross   75,000                            
Stock Issued During Period, Shares, Issued for Services 25,000   75,000                          
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price             $ 0.90                  
Deferred Compensation, Maximum Convertible Amount   $ 125,000         $ 125,000           $ 300,000      
Deferred Compensation, Stock Conversion, Price Per Share   $ 0.75         $ 0.75           $ 0.75      
President [Member] | New Smith Note [Member]                                
Convertible Notes Payable, Total       $ 760,520                        
President [Member] | New Smith Note [Member] | Convertible Debt [Member]                                
Debt Instrument, Interest Rate Reduction, Percentage       50.00%                        
Debt Instrument, Interest Rate, Stated Percentage       4.00%                     8.00%  
Debt Instrument, Convertible Conversion Price, Incease, Percentage       11.00%                        
Debt Instrument, Convertible, Conversion Price       $ 0.50                     $ 0.45  
Accrued Interest on Deferred Compensation and Other Expenses       75.00%                        
Number of Warrants Per Unit       0.25                     1  
Chief Executive Officer [Member]                                
Monthly Officers' Cash Compensation                 $ 31,000              
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross                 450,000              
Class of Warrant or Right, Exercise Price of Warrants or Rights                 $ 1.50              
Due to Related Parties, Current, Total                             $ 279,000  
Unreimbursed Expenses                             $ 116,277  
Chief Executive Officer [Member] | Warrants in Connection with Services [Member]                                
Class of Warrant or Right, Issued During Period                 1,765,000              
Chief Executive Officer [Member] | Extension Agreement One [Member]                                
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross                     600,000          
Common Stock, Capital Shares Reserved for Future Issuance                     500,000          
Chief Executive Officer [Member] | Stock Bonus [Member]                                
Execution Bonus as Percentage of Exercised Options and Warrants           50.00%                    
Chief Executive Officer [Member] | Stock Bonus [Member] | Extension Agreement Two [Member]                                
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period                 250,000              
Chief Executive Officer [Member] | Extension Bonus [Member] | FY2016 Extension Agreement [Member]                                
Deferred Compensation, Maximum Convertible Amount                         $ 300,000      
Deferred Compensation, Stock Conversion, Price Per Share                         $ 0.75      
Chief Executive Officer [Member] | Cash Note [Member]                                
Class of Warrant or Right, Exercise Price of Warrants or Rights                 $ 1              
Debt Instrument, Face Amount                           $ 395,277    
Class of Warrant or Right, Number of Securities Called by Warrants or Rights                 592,916              
Chief Executive Officer [Member] | Mr. Bassani [Member] | Convertible Debt [Member]                                
Number of Warrants Per Unit                             1  
CEO and President [Member] | Exercise Bonus [Member]                                
ContingentStockBonusPercentageThresholdForIssuance           50.00%                    
Extension of Exercise Period           5 years                    
Extension of Exercise Period Annual Payment per Option or Warrant           $ 0.01                    
Executive Vice Chairman and Other Board Member [Member] | Exercise Bonus [Member]                                
Execution Bonus as Percentage of Exercised Options and Warrants                               50.00%
Two Former Employees [Member] | Exercise Bonus [Member]                                
Execution Bonus as Percentage of Exercised Options and Warrants                 50.00%              
CEO, President, and Executive Vice Chairman [Member] | Exercise Bonus [Member]                                
Execution Bonus as Percentage of Exercised Options and Warrants                 75.00%     50.00%        
Executive Vice Chairman [Member]                                
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross                 190,000              
Executive Vice Chairman [Member] | Warrants in Connection with Services [Member]                                
Class of Warrant or Right, Issued During Period                 670,000              
XML 48 R37.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 10 - Subsequent Events (Details Textual) - USD ($)
1 Months Ended 9 Months Ended
May 08, 2018
Mar. 31, 2018
Jun. 30, 2017
Mar. 31, 2017
Stock Issued During Period, Shares, Issued for Services   18,849    
Stock Issued During Period, Value, Issued for Services   $ 14,631    
Sale of Units, Value   306,997    
Deferred Compensation Liability, Current, Total   $ 345,929 $ 2,107,262 $ 1,962,885
Class of Warrant or Right, Issued During Period   3,460,000    
Subsequent Event [Member]        
Stock Issued During Period, Shares, Issued for Services 3,750      
Stock Issued During Period, Value, Issued for Services $ 2,000      
Sale of Units, Number Of Units Subscribed 71,000      
Shares Issued, Price Per Share $ 0.50      
Sale of Units, Value $ 36,000      
Number of Shares Per Unit 1      
Share Price $ 0.75      
Subsequent Event [Member] | Consultant [Member]        
Deferred Compensation Liability, Current, Total $ 60,000      
Stock Issued During Period, Shares, New Issues 120,000      
Class of Warrant or Right, Issued During Period 60,000      
Subsequent Event [Member] | Smith [Member]        
Stock Issued During Period, Shares, New Issues 307,080      
Class of Warrant or Right, Issued During Period 153,540      
Due to Affiliate $ 18,000      
Accounts Payable, Total 65,540      
Deferred Compensation Liability, Current and Noncurrent, Total $ 70,000      
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