|12 Months Ended|
Jun. 30, 2018
|Property, Plant and Equipment [Abstract]|
|Property, Plant and Equipment Disclosure [Text Block]||
Note 4 Fixed Assets
The following is a summary of fixed assets and accumulated depreciation:
Depreciation expense was $1,058,435 and $1,106,878 for the years ended June 30, 2018 and 2017, respectively.
On June 22, 2018, the Company completed a sale of certain laboratory assets, including manufacturing assets, and leasehold improvements to an independent company for proceeds of $1,550,000. The sale of assets resulted in the Company recognizing a loss on the sale of long lived assets for $663,017.
Additionally, during the year ended June 30, 2018, the Company entered into discussions regarding the sublease of its manufacturing and laboratory space in Louisville, Colorado. The Company also had a strategic shift in April 2018, resulting in the manufacturing plant being shut down and a restructuring plan being implemented. This shift was to focus on finding a partner for continued development of AB101 and developing RZ358 with external manufacturing organizations. As the Company was completing its analysis of long-lived assets, an evaluation of the Company’s leasehold improvements was conducted to evaluate the recoverability of assets carrying value. Upon completion of this impairment analysis, the Company concluded it would not be able to recover future benefits from leasehold improvements with a net book value of $1,691,391 due to factors discussed above. As such the Company recorded an impairment charge for this amount in June 2018. There were no impairment charges recorded in the year ended June 30, 2017.
The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef