2.4.0.80008 - Disclosure - 1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIEStruefalsefalse1falsefalsefalseFrom2012-07-01to2013-06-30http://www.sec.gov/CIK0000098618duration2012-07-01T00:00:002013-06-30T00:00:001true1us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false2us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureAndSignificantAccountingPoliciesTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Nature of Operations</b> - Alanco
Technologies, Inc. (Stock Symbol: ALAN) was incorporated in 1969 under the laws of the State of Arizona. Unless otherwise noted,
the "Company" or “Alanco” refers to Alanco Technologies, Inc. and its wholly owned subsidiaries. During the
fiscal year ended June 30, 2012, the Company formed Alanco Energy Services, Inc. (“AES”), which was in the process
of permitting and constructing a water disposal facility near Grand Junction, CO to receive produced water generated as a byproduct
from oil and natural gas production in Western Colorado. The new facility started to receive produced water in August 2012. See
Note 5 - Alanco Energy Services for discussion of AES transactions.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: 9pt"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Principles of Consolidation</b>
– These consolidated financial statements have been prepared in accordance with the accounting principles generally accepted
in the United States (GAAP). The consolidated financial statements for the years ended June 30, 2013 and 2012 include, where appropriate,
the accounts of Alanco Technologies, Inc. and its wholly-owned subsidiaries, Alanco Energy Services, Inc. and StarTrak Systems,
LLC (“StarTrak”) (collectively, the “Company”). Alanco is an Arizona corporation; Alanco Energy Services,
Inc. is a Colorado corporation and StarTrak Systems, LLC is a Delaware LLC. All significant intercompany accounts and transactions
have been eliminated in consolidation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Cash Equivalents</b> - The Company
considers all highly liquid instruments with maturities of three months or less at the time of purchase to be cash equivalents.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Revenue Recognition</b> –
The Company operates the Deer Creek water disposal facility near Grand Junction, CO and bills customers (primarily in the oil and
gas industry) for produced water received. The Company recognizes revenue generally at the time the produced water is received
at the Deer Creek facility, filtered and billed. Revenue is generally recognized when all the following have been met:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 45pt; font: 8pt Times New Roman, Times, Serif"></td><td style="width: 18pt; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Persuasive evidence of an arrangement exists;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 45pt; font: 8pt Times New Roman, Times, Serif"></td><td style="width: 18pt; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">The service has been performed;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 45pt; font: 8pt Times New Roman, Times, Serif"></td><td style="width: 18pt; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">The customer’s fee is deemed to be
determinable and free of contingencies or significant uncertainties; and</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 45pt; font: 8pt Times New Roman, Times, Serif"></td><td style="width: 18pt; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Collectability is probable.</font></td></tr></table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Accounts Receivable - Trade and
Other</b> – The Company provides for potentially uncollectible trade accounts receivable and other receivables by use of
the allowance method. An allowance for doubtful accounts is provided based upon a review of the individual accounts outstanding,
the Company’s prior history and the customer’s credit worthiness. The Company charges off uncollectible receivables
when all reasonable collection efforts have been exhausted. The Company does not typically accrue interest or fees on past due
amounts and the receivables are generally unsecured. There were no provisions for uncollectible trade accounts receivable or other
receivables at June 30, 2013 and 2012.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Notes Receivable</b> – The
Company provides for potentially uncollectible notes receivable by use of the allowance method. An allowance for uncollectible
notes receivable is provided based upon a review of the individual notes outstanding and the Company’s prior history of uncollectible
accounts and the note holder’s credit worthiness. The Company charges off uncollectible notes receivable when all reasonable
collection efforts have been exhausted. Interest income from notes receivable is recognized when earned. There were no provisions
for uncollectible notes receivable at June 30, 2013 and 2012.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: -27pt"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Marketable Securities - Restricted
– </b>The Company determines the appropriate classification of its investments in marketable equity securities at the time
of acquisition and reevaluates such determinations at each balance sheet date. Marketable securities are classified as held to
maturity when the Company has the positive intent and ability to hold securities to maturity. Marketable securities that are bought
and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at
fair value, with the unrealized gains and losses recognized in earnings. Marketable securities not classified as held to maturity
or as trading, are classified as available for sale, and are carried at fair value, with the unrecognized gains and losses, net
of tax, included in the determination of comprehensive income (loss) and reported in shareholders’ equity. The Company measures
and discloses its investments in marketable</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">securities, which are classified as
available for sale, at fair value on a recurring basis, in accordance with the ASC. The cost of the securities sold is based on
specific identification of the security.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The fair value of substantially all
securities is determined by quoted market prices. The estimated fair value of securities for which there are no quoted market prices
is based on similar types of securities that are traded in the market.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: -27pt"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Fair Value of Assets and Liabilities</b>
– The estimated fair values for assets and liabilities are determined at discrete points in time based on relevant information.
The Accounting Standards Codification (“ASC”) prioritizes inputs used in measuring fair value into a hierarchy of three
levels: Level 1 – unadjusted quoted prices for identical assets or liabilities traded in active markets, Level 2 –
observable inputs, other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities, quoted
prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the asset or liability; and Level 3 – unobservable inputs in which little or no market activity
exists that are significant to the fair value of the assets or liabilities, therefore requiring an entity to develop its own assumptions
that market participants would use in pricing. These estimates involve uncertainties and cannot be determined with precision. The
carrying amounts of receivables, prepaid expenses, accounts payable, accrued liabilities, and notes payable approximate fair value
given their short-term nature and borrowing rates currently available to the Company for loans with similar terms and maturities.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The following are the classes of assets
and liabilities measured at fair value on a recurring basis at June 30, 2013, using quoted prices in active markets for identical
assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3):</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">Level 1:</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">Quoted Prices</td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">Level 2:</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">in active</td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">Significant</td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">Level 3:</td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">Total</td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">Markets</td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">Other</td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">Significant</td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">at</td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">for Identical</td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">Observable</td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">Unobservable</td><td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center">June 30,</td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: italic 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Assets</td><td style="font: italic 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Inputs</td><td style="font: italic 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Inputs</td><td style="font: italic 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: italic 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 8pt Times New Roman, Times, Serif">
<td style="width: 40%; text-align: left; font: 8pt Times New Roman, Times, Serif">Marketable Securities - Restricted</td><td style="width: 3%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 8pt Times New Roman, Times, Serif">—  </td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 3%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 8pt Times New Roman, Times, Serif">1,562,600</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 3%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 8pt Times New Roman, Times, Serif">—  </td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 3%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 8pt Times New Roman, Times, Serif">1,562,600</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif">Asset Retirement Obligation</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">—  </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">—  </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">417,400</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">417,400</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif">Contigent Land Payment</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">—  </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">—  </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">641,400</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">641,400</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 8pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif">Contingent Purchase Price</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">513,200</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">513,200</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">1,562,600</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">1,572,000</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">3,134,600</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Fair Value of Marketable Securities
- Restricted</i></b> – The estimated fair values of Marketable Securities - Restricted are determined at discrete points
in time based on relevant market information. The Marketable Securities – Restricted is comprised entirely of ORBCOMM Inc.
(“ORBCOMM”) common shares (<b>NASDAQ: ORBC</b>) registered under a currently effective ORBCOMM Form S-3 registration
statement. Under the terms of the Agreement, the Company is limited to selling up to 279,600 shares (12 ½% of the total
shares received) per month. This sales restriction is why the fair value measurement at June 30, 2013 of the Company’s investment
ORBCOMM’s Common Stock is based on quoted prices for similar assets in active markets that are directly observable and thus
represent a Level 2 fair value measurement. However, management does not believe the restriction will interfere with any plans
to market their stock holdings. As such, the trading price is used as fair value with no further adjustment. The remaining shares
will be revalued at the end of each reporting period with per share market value fluctuations reported as Comprehensive Income
(Loss) for the period.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27.35pt; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: 0in"><b><i>Fair
Value of Asset Retirement Obligation</i> – </b>The Deer Creek asset retirement obligation is the estimated cost to close
the Deer Creek facility under terms of the lease, meeting environmental and State of Colorado regulatory requirements. The estimate
is determined at discrete points in time based upon significant unobservable inputs in which little or no market activity exists
that is significant to the fair value of the liability, therefore requiring the Company to develop its own assumptions. Management’s
estimate of the asset retirement obligation is based upon a cost estimate developed by a consultant knowledgeable of government
closure requirements and costs incurred at similar water disposal facility operations. The process used was to identify each activity
in the closure process, obtain vendor estimated costs, in current dollars, to perform the closure activity and accumulating the
various vendor estimates to determine the asset retirement obligation. A present value discount has not been taken as the estimated
closure costs, excluding regulatory changes and inflation adjustments, are anticipated to remain fairly consistent over the operational
life of the facility. The lack of an active market to validate the estimated asset retirement obligation results in the fair value
of asset retirement obligation to be a Level 3 fair value measurement. ASC Topic 410-20: Asset Retirement Obligations requires
the Company to review the asset retirement obligation on a recurring basis and record changes in the period incurred.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Fair Value of Contingent Payments
</i></b>– The contingent land payment and contingent purchase price liabilities are also determined at discrete points in
time based upon unobservable inputs in which little or no market activity exists that is significant to the fair value of the liability,
therefore requiring the Company to develop its own assumptions. In calculating the estimate of fair value for both of the contingent
payments, management completed an estimate of the present value of each identified contingent liability based upon projected income,
cash flows and capital expenditures for the Deer Creek facility developed under plans currently approved by the Company’s
board of directors. Different assumptions relative to the expansion or alternative uses of the Deer Creek and Indian Mesa facilities
could result in significantly different valuations. The projected payments have been discounted at a rate of 3% per annum to determine
net present value. The lack of an active market to validate the estimated contingent land and purchase price liabilities results
in the fair value of the contingent land and purchase price liabilities to be a Level 3 fair value measurement. ASC Topic 820:
Fair Value Measurement requires the Company to review the contingent land and purchase price liabilities on a recurring basis and
record changes in the period incurred.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Fair Value of Financial Instruments</b>
– The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, notes receivable,
accounts payable, and accrued liabilities. The fair value of these financial instruments approximates their carrying values using
Level 3 inputs, based on their short maturities.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Land, Property and Equipment</b>
– Land, Property and Equipment are stated at cost. Depreciation is computed over the estimated useful lives of the assets
using the straight-line method, generally over a 3 to 20-year period. Currently all office furniture and equipment are being depreciated
over 3 years; production equipment over 7-10 years; and the water disposal facility over 15 to 20 years including 15 years for
the evaporation pond liners and 20 years for the pond construction costs. Expenditures for ordinary maintenance and repairs are
charged to expense as incurred while betterments or renewals are capitalized. Upon retirement or disposal of assets, the cost and
accumulated depreciation are eliminated from the account and any gain or loss is reflected in the statement of operations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Trust Account – Asset Retirement
Obligation</b> – The Company is required to make quarterly payments to a trust account for the closure costs of the Deer
Creek facility. The Company reflects the gross amount of the trust as an asset and the gross amount of the estimated closure cost
as a liability.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Income Taxes</b> - The Company accounts
for income taxes under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the
expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method,
deferred tax assets and liabilities are determined based on the difference between the financial statement basis and tax basis
of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. To the
extent that the Company does not consider it more than likely than not that a future tax asset will be recovered, it provides a
valuation allowance against the excess.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Use of Estimates</b> - The preparation
of the Company's financial statements in conformity with accounting principles generally accepted in the United States of America
requires the Company's management to make estimates and assumptions that affect the amounts reported in these financial statements
and accompanying notes. Actual results could differ from those estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company makes significant estimates
and assumptions concerning the classification and valuation of investments, the estimated fair value of stock-based compensation,
expense recognition, realization of deferred tax assets, accounts and notes receivable, estimated useful lives of fixed assets,
the recorded values of accruals and contingencies including the ORBCOMM fuel sensor escrow and working capital adjustment liabilities,
the estimated fair values of the Company’s asset retirement obligation and the contingent land and purchase price liabilities.
Due to the uncertainties inherent in the estimation process and the significance of these items, it is at least reasonably possible
that the estimates in connection with these items could be materially revised within the next year.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Impairment of Intangibles and Other
Long-Lived Assets</b> - The Company’s policy is to perform an assessment for impairment whenever events or changes in circumstances
indicate that the carrying amount of a long-lived asset may not be recoverable. If the net carrying value of the asset exceeds
estimated future net cash flows, then impairment is recognized to reduce the carrying value to the estimated fair value. No impairment
charge was recorded in fiscal years ended June 30, 2013 or 2012.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Income (Loss) Per Share</b> - The
income (loss) per share (“EPS”) is presented in accordance with the provisions of the ASC. Basic EPS is calculated
by dividing the income or loss available to common shareholders by the weighted average number of common shares outstanding for
the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock
were exercised or converted into common stock. Basic and Diluted EPS were the same for fiscal 2013 and 2012, as the Company had
losses from operations during both years and therefore the effect of all potential common stock equivalents is antidilutive (reduces
loss per share). Stock options representing 1,084,100 shares of Class A Common Stock were outstanding at June 30, 2013 with exercise
prices ranging between $.50 and $1.50. The weighted average exercise price for all outstanding options was $0.67. Stock warrants
representing 95,100 Class A Common Shares were outstanding at June 30, 2013 with an exercise price of $2.64. The weighted average
exercise price was $2.64.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Stock options representing 674,100
shares of Class A Common Stock were outstanding at June 30, 2012 with exercise prices ranging between $.75 and $2.00. The weighted
average exercise price for all outstanding options was $.80. Stock warrants representing 150,400 Class A Common Shares were outstanding
at June 30, 2012 with exercise prices ranging between $2.64 and $14.00. The weighted average exercise price was $6.24.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><font style="background-color: yellow"> </font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Stock Options Plans</b> - The Company
has stock-based compensation plans. The value of the compensation cost is amortized on a straight-line basis over the requisite
service periods of the award (the option vesting term).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: -27pt"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company estimates the fair value
of stock-based awards using the Black-Scholes valuation model. Assumptions used to estimate compensation expense are determined
as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 0.5in; font: 8pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; font: 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt">Expected term for current year grants was determined under the simplified
method using an average of the contractual term and vesting period of the award as appropriate statistical data required to properly
estimate the expected term was not available;</font></td></tr></table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 0.5in; font: 8pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; font: 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt">Expected volatility of award grants made under the Company’s
plans is measured using the historical daily changes in the market price of the Company’s common stock over the expected
term of the award, and contemplation of future activity; </font></td></tr></table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 0.5in; font: 8pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; font: 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt">Risk-free interest rate is to approximate the implied yield on zero-coupon
U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and,</font></td></tr></table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 0.5in; font: 8pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 8pt Times New Roman, Times, Serif"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; font: 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt">Forfeitures are based on the history of cancellations of awards granted
by the Company and management’s analysis of potential forfeitures.</font></td></tr></table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Concentrations of Credit Risks</b>
- The Company invests its excess cash in short term bank investments that in some cases exceeds the maximum FDIC insurance amount.
At June 30, 2013 and 2012, deposits in excess of FDIC insured limits amounted to $487,700 and nil, respectively. The Company currently
has a substantial amount of its assets invested in ORBCOMM Common Stock, received as partial consideration in the sale of the</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Wireless Asset Management segment during
fiscal 2011. Although the Company performed due diligence during the negotiations with ORBCOMM and believes that ORBCOMM Common
Stock is a good investment, no assurance can be made that the stock will maintain its value. See Note 4 - Marketable Securities
- Restricted for additional discussion of the investment. At June 30, 2013, the notes receivable balance of $375,000 consisted
of a note from American Citizenship Center, LLC (“ACC”). The note is secured, however there is no assurance the amounts
will be repaid when due or if ever. See Note 3 – Notes Receivable and Note 8 – Investments for additional discussions
of the notes receivable at June 30, 2013. Approximately 96.6% of AES revenues were generated by two customers and all amounts billed
to those customers were paid in full as of June 30, 2013.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Recent Accounting Pronouncements
</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In July 2012, the FASB issued guidance
on testing indefinite-lived intangible assets for impairment. The guidance is effective for annual and interim impairment tests
performed for fiscal years beginning after September 15, 2012. Early adoption is permitted and the Company has adopted the guidance,
which had no material impact on its financial position and results of operations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In February 2013, the FASB issued guidance
on reporting of amounts reclassified out of accumulated other comprehensive income. The guidance is effective for fiscal years
beginning after December 15, 2012. The Company is currently assessing the impact of this guidance on its financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">There have been no other recent accounting
pronouncements or changes in accounting pronouncements during the year ended June 30, 2013 that are of significance, or potential
significance, to us.</p>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6003-108592
false0false1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIESUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://alanco.com/role/NatureOfOperationsAndSignificantAccountingPolicies12