D. Assets Held for Sale and Discontinued Operations |
9 Months Ended |
|---|---|
Mar. 31, 2017 | |
| Property, Plant and Equipment [Abstract] | |
| Assets Held for Sale and Discontinued Operations |
During the fiscal year 2016, Alancos Board of Directors approved a formal plan to sell its 160 acre owned and undeveloped land and associated permits known as Indian Mesa. The plan was contemplated because the Company intends to expand into other markets that are unrelated to waste disposal. Accordingly, the Assets Held for Sale of $1,654,700 and $1,653,500 presented in the attached condensed consolidated balance sheets as of March 31, 2017and June 30, 2016, respectively, represents the Indian Mesa land and associated permits. The classification of the assets to Assets Held for Sale does not affect the Condensed Consolidated Statements of Operations as the Indian Mesa land is undeveloped and has no associated discontinued operations. The Company continues to actively pursue a sale of the assets, however, due to the depressed oil and gas prices the market in Western Colorado was negatively impacted and a sale has been prolonged. As a result, the Company has classified the Assets Held for Sale as non-current as of March 31, 2017.
During the nine months ended March 31, 2017, the Company recorded a loss from discontinued operations in the amount of $176,000 which represents an accrual related to the judgment received from litigation whereby the Company is a defendant and counterclaimant involving the Companys former subsidiary known as Alanco/TSI Prism, Inc. (TSI) and the purchaser of TSIs assets, Black Creek Systems Corp. (Black Creek). The Company vehemently disagrees with Black Creeks attorneys fees claim and the Court ruling and intends to vigorously pursue an appeal of the judgment. The case is more fully described in Note K Commitments and Contingencies. |