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D. Assets Held for Sale and Discontinued Operations
6 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
Assets Held for Sale and Discontinued Operations

During the fiscal year 2016, Alanco’s 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. The Company expects the sale to occur within one year. Accordingly, the Assets Held for Sale of $1,653,500 presented in the attached condensed consolidated balance sheet as of December 31, 2016 and June 30, 2016 represents the Indian Mesa land and associated permits. The classification of the assets to Assets Held for Sale does not affect the Consolidated Statements of Operations as the Indian Mesa land is undeveloped and has no associated discontinued operations.

 

During the six months ended December 31, 2016, 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 Company’s former subsidiary known as Alanco/TSI Prism, Inc. (“TSI”) and the purchaser of TSI’s assets, Black Creek Systems Corp. (“Black Creek”). The Company vehemently disagrees with Black Creek’s attorney’s 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.