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.