Form 10-Q - Quarterly report [Sections 13 or 15(d)]

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _________

Commission File No. 000-19333

Bion Environmental Technologies, Inc.

(Name of registrant in its charter)

Colorado		84-1176672
(State or other jurisdiction of incorporation or formation)		(I.R.S. employer identification number)

9 East Park Court

Old Bethpage, New York 11804

(Address of principal executive offices)

516-586-5643

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Securities Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	BNET	OTCQB

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

		Large accelerated filer ☐		Accelerated filer ☐
		Non-accelerated filer ☐		Smaller reporting company ☒
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Not applicable.

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

On May 1, 2024, there were 57,227,248 Common Shares issued and 56,522,939 Common Shares outstanding.

BION ENVIRONMENTAL TECHNOLOGIES, INC.

FORM 10-Q

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION		Page

Item 1.	Condensed Consolidated Financial Statements	1
	Balance sheets	1
	Statements of operations	2
	Statement of changes in equity (deficit)	3
	Statements of cash flows	4
	Notes to unaudited condensed consolidated financial statements	5

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	33

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	46

Item 4.	Controls and Procedures	46

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	47

Item 1A.	Risk Factors	49

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	49

Item 3.	Defaults Upon Senior Securities	49

Item 4.	Mine Safety Disclosures	49

Item 5.	Other Information	49

Item 6.	Exhibits	50

	Signatures	51

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements, within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "project," "predict," "plan," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. The expectations reflected in forward-looking statements may prove to be incorrect.

BION ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS


	March 31			June 30,
	2024			2023
	(unaudited)

ASSETS

Current assets:
Cash	$	49,735		$	625,964
Prepaid expenses		121,282			16,785
Deposits and other assets		6,000			6,000

Total current assets		177,017			648,749

Operating lease right-of-use asset		51,572			93,875
Property and equipment, net (Note 3)		9,341,637			6,851,009

Total assets	$	9,570,226		$	7,593,633

LIABILITIES AND EQUITY (DEFICIT)

Current liabilities:
Accounts payable and accrued expenses	$	2,718,841		$	677,136
Deferred compensation (Note 4)		1,432,678			864,781
Convertible Bridge Note Payable (Note 6)		261,064			—
Operating lease liability, current (Note 9)		53,977			75,000

Total current liabilities		4,466,560			1,616,917

Operating lease liability, long term (Note 9)		—			29,068
Convertible notes payable - affiliates (Note 6)		1,711,224			1,715,970

Total Liabilities		6,177,784			3,361,955


Equity (deficit):
Common stock, no par value, 250,000,000 shares authorized, 57,219,930 and 48,044,790 shares issued, respectively; 56,515,621 and 47,340,480 shares outstanding, respectively		—			—
Additional paid-in capital		133,098,463			131,935,418
Subscription receivable - affiliates (Note 8)		(504,650	)		(504,650	)
Accumulated deficit		(129,238,944	)		(127,236,663	)

Total Bion’s stockholders’ equity (deficit)		3,354,869			4,194,105

Noncontrolling interest		37,573			37,573

Total equity (deficit)		3,392,442			4,231,678

Total liabilities and deficit	$	9,570,226		$	7,593,633

See notes to condensed consolidated financial statements

BION ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
NINE MONTHS ENDED MARCH 31, 2024 AND 2023
(UNAUDITED)


	Three months ended						Nine months ended
	March 31						March 31
	2024			2023			2024			2023

Revenue	$	—		$	—		$	—		$	—

Operating expenses:
General and administrative (including stock-based compensation)		526,644			859,011			1,828,917			2,356,047
Depreciation		331			461			1,251			1,185
Research and development (including stock-based compensation)		6,144			24,242			21,873			67,833


Total operating expenses		533,119			883,714			1,852,041			2,425,065

Loss from operations		(533,119	)		(883,714	)		(1,852,041	)		(2,425,065	)

Other (income) expense:
Interest income		(107	)		(1,342	)		(611	)		(4,652	)
Gain (loss) on disposal of assets		972			—			972			—
Interest expense		4,161			(24,488	)		149,879			86,892

Total other expense		5,026			(25,830	)		150,240			82,240

Net income (loss)		(538,145	)		(857,884	)		(2,002,281	)		(2,507,305	)

Net loss attributable to the noncontrolling interest		—			—			—			—

Net income (loss) applicable to Bion's common stockholders	$	(538,145	)	$	(857,884	)	$	(2,002,281	)	$	(2,507,305	)

Net income (loss) applicable to Bion's common stockholders per basic and diluted common share	$	(0.01	)		(0.02	)		(0.04	)		(0.06	)

Weighted-average number of common shares outstanding:
Basic and diluted		54,035,865			45,456,417			50,498,173			44,165,309

See notes to condensed consolidated financial statements

BION ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)

THREE AND NINE MONTHS ENDED MARCH 31, 2024 AND 2023

(UNAUDITED)


Three months ended March 31, 2024 and 2023
	Bion's Stockholders'

	Series A Preferred Stock				Series C Preferred Stock				Common Stock				Additional paid-in			Subscription Receivables for			Accumulated			Noncontrolling		Total
	Shares		Amount		Shares		Amount		Shares		Amount		capital			Shares			deficit			interest		equity/(deficit)

Balances, December 31, 2022		—	$	—		—	$	—		44,529,884	$	—		124,627,172		$	(504,650	)	$	(125,696,969	)	$	37,573	$	(1,536,874	)
Sale of units		—		—		—		—		2,375,000		—		2,720,000			—			—			—		2,720,000
Warrants exercised for common shares		—		—		—		—		84,000		—		63,000			—			—			—		63,000
Issuance of warrants for services		—		—		—		—		—		—		9,844			—			—			—		9,844
Conversion of debt and liabilities		—		—		—		—		1,055,906		—		99,889			—			—			—		99,889
Vesting of options for employees and services		—		—		—		—		—		—		220,510			—			—			—		220,510
Commissions on sale of units		—		—		—		—		—		—		(48,000	)		—			—			—		(48,000	)
Debt modification		—		—		—		—		—		—		3,516,345			—			—			—		3,516,345
Net loss		—		—		—		—		—		—		—			—			(857,884	)		—		(857,885	)
Balances, March 31, 2023		—	$	—		—	$	—		48,044,790	$	—	$	131,208,759		$	(504,650	)	$	(126,554,853	)	$	37,573	$	4,186,829

Balances, December 31, 2023		—	$	—		—	$	—		50,611,962	$	—		132,798,923		$	(504,650	)	$	(128,700,799	)	$	37,573	$	3,631,047
Sale of units		—		—		—		—		190,000		—		190,000			—			—			—		190,000
Warrants exercised under cashless exercise		—		—		—		—		5,866,306		—		—			—			—			—		—
Options exercised under cashless exercise		—		—		—		—		3,661		—		—			—			—			—		—
Issuance of units for services		—		—		—		—		—		—		—			—			—			—		—
Issuance of warrants for services										25,770		—		30,000											30,000
Vesting of options for employees and services		—		—		—		—		—		—		52,378			—			—			—		52,378
Vesting of warrants for employees and services		—		—		—		—		—		—		3,281			—			—			—		3,281
Debt Modification		—		—		—		—		—		—		(11,122	)		—			—			—		(11,122	)
Conversion of debt and liabilities		—		—		—		—		522,231		—		49,403			—			—			—		49,403
Modification of warrants		—		—		—		—		—		—		—			—			—			—		—
Commissions on sale of units		—		—		—		—		—		—		(14,400	)		—			—			—		(14,400	)
Net loss		—		—		—		—		—							—			(538,145	)		—		(538,145	)
Balances, March 31, 2024		—	$	—		—	$	—		57,219,930	$	—	$	133,098,463		$	(504,650	)		(129,238,944	)	$	37,573	$	3,392,442

BION ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)

THREE AND NINE MONTHS ENDED MARCH 31, 2024 AND 2023 (CONTINUED)

(UNAUDITED)


Nine months ended March 31, 2024 and 2023
	Bion's Stockholders'

	Series A Preferred Stock				Series C Preferred Stock				Common Stock				Additional paid-in			Subscription Receivables for			Accumulated			Noncontrolling		Total
	Shares		Amount		Shares		Amount		Shares		Amount		capital			Shares			deficit			interest		equity/(deficit)

Balances, July 1, 2022		—	$	—		—	$	—		43,758,820	$	—		123,620,046		$	(504,650	)	$	(124,047,548	)	$	37,573	$	(894,579	)
Sale of units		—		—		—		—		2,921,230		—		3,266,230			—			—			—		3,266,230
Warrants exercised for common shares		—		—		—		—		158,834		—		119,125			—			—			—		119,125
Issuance of units for services		—		—		—		—		50,000		—		80,000			—			—			—		80,000
Issuance of warrants for services		—		—		—		—		—		—		57,094			—			—			—		57,094
Conversion of debt and liabilities		—		—		—		—		1,155,906		—		149,889			—			—			—		149,889
Vesting of options for employees and services		—		—		—		—		—		—		220,510			—			—			—		220,510
Commissions on sale of units		—		—		—		—		—		—		(48,000	)		—			—			—		(48,000	)
Modification of warrants - non-cash		—		—		—		—		—		—		159,433			—			—			—		159,433
Modification of warrants - interest		—		—		—		—		—		—		68,088			—			—			—		68,088
Debt modification		—		—		—		—		—		—		3,516,345			—			—			—		3,516,345
Net loss		—		—		—		—		—		—		—			—			(2,507,305	)		—		(2,507,305	)
Balances, March 31, 2023		—	$	—		—	$	—		48,044,790	$	—	$	131,208,759		$	(504,650	)	$	(126,554,853	)	$	37,573	$	4,186,829

Balances, July 1, 2023		—	$	—		—	$	—		48,880,237	$	—		131,935,418		$	(504,650	)	$	(127,236,663	)	$	37,573	$	4,231,678
Sale of units		—		—		—		—		593,589		—		610,742			—			—			—		610,742
Warrants exercised for common shares		—		—		—		—		38,000		—		28,500			—			—			—		28,500
Warrants exercised under cashless exercise		—		—		—		—		6,131,945		—		—			—			—			—		—
Options exercised under cashless exercise		—		—		—		—		3,661		—		—			—			—			—		—
Issuance of units for services		—		—		—		—		82,529		—		76,320			—			—			—		76,320
Issuance of warrants for services		—		—		—		—		—		—		35,000			—			—			—		35,000
Vesting of options for employees and services		—		—		—		—		—		—		159,865			—			—			—		159,865
Vesting of warrants for employees and services		—		—		—		—		—		—		9,844			—			—			—		9,844
Debt Modification		—		—		—		—		—		—		(27,983	)		—			—			—		(27,983	)
Conversion of debt and liabilities		—		—		—		—		1,489,969		—		140,951			—			—			—		140,951
Modification of warrants		—		—		—		—		—		—		150,206			—			—			—		150,206
Commission on sale of units		—		—		—		—		—		—		(20,400	)		—			—			—		(20,400	)
Net loss		—		—		—		—		—		—		—			—			(2,002,281	)		—		(2,002,281	)
Balances, March 31, 2024		—	$	—		—	$	—		57,219,930	$	—	$	133,098,463		$	(504,650	)	$	(129,238,944	)	$	37,573	$	3,392,442

See notes to condensed consolidated financial statements

BION ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED MARCH 31, 2024 AND 2023
(UNAUDITED)


	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(2,002,281	)	$	(2,507,305	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense		1,251			1,185
Accrued interest on loans payable, deferred compensation and other		149,879			86,891
Stock- based compensation		184,709			220,510
Stock-based compensation for services		106,321			80,000
Modification of warrants		—			154,932
Warrants issued for compensation for services		5,000			57,094
Decrease in prepaid expenses		(104,497	)		44,449
Increase (decrease) in deposits in other assets		—			(5,000	)
Increase (decrease) in accounts payable and accrued expenses		285,420			(908,644	)
Decrease (increase) in operating lease assets and liabilities		(7,788	)		29,712
Increase in deferred compensation		626,834			265,000

Net cash used in operating activities		(755,152	)		(2,481,176	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(689,919	)		(2,403,644	)

Net cash used in investing activities		(689,919	)		(2,403,644	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of units		610,742			3,266,230
Commissions on sale of units		(20,400	)		(48,000	)
Proceeds from convertible bridge loan		250,000			—
Proceeds from exercise of warrants		28,500			119,125

Net cash provided by financing activities		868,842			3,337,355

Net decrease in cash		(576,229	)		(1,547,465	)

Cash at beginning of year		625,964			3,160,442

Cash at end of year	$	49,735		$	1,612,977

Supplemental disclosure of cash flow information:
Cash paid for interest	$	—		$	—

Non-cash investing and financing transactions:
Conversion of debt and liabilities into common units	$	140,951		$	149,888
Conversion of debt and liabilities into notes payable	$	—		$	23,943
Conversion of deferred compensation to notes payable	$	80,767		$	90,000
Capitalized interest in property and equipment	$	45,676			117,342
Purchase of property and equipment for accounts payable	$	1,756,285		$	372,844

See notes to condensed consolidated financial statements

BION ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NINE MONTHS ENDED MARCH 31, 2024 AND 2023

1. ORGANIZATION, NATURE OF BUSINESS, GOING CONCERN AND MANAGEMENT’S PLANS:

Organization and nature of business:

THE COMPANY HAS BEEN UNDER SUBSTANTIAL FINANCIAL AND MANAGEMENT STRESS OVER THE PAST NINE TO TWELVE (9-12) MONTHS (AND THE CURRENT QUARTER TO DATE) DUE TO EXTREME DIFFICULTIES IN RAISING NEEDED FUNDS (WHICH RE-EMERGED LATE IN THE 2023 FISCAL YEAR AND HAS CONTINUED) WHICH HAVE BEEN COMPOUNDED BY THE DEATH (FOLLOWING EXTENDED ILLNESS) OF DOMINIC BASSANI (WHO MOST RECENTLY SERVED AS OUR COO (FROM MAY 2022) AFTER SERVING AS OUR CEO FOR THE PRIOR DECADE). THESE PROPBLEMS HAVE OCCURRED DURING A PERIOD IN WHICH THE COMPANY IS FACING INCREASED CAPITAL NEEDS AND THE NEED TO TRANSITION TO A YOUNGER MANAGEMENT TEAM (MARK A. SMITH, THE COMPANY’S PRESIDENT, GENERAL COUNSEL AND CHIEF FINANCIAL OFFICER, IS RETIRING AND HAS AGREEDTO PHASE OUT HIS MANAGEMENT ROLES WHICH WILL NEED TO BE FILLED BY OTHERS). THESE ITEMS AND THE FOLLOWING MATTERS HAVE BEEN PREVIOUSLY DISCLOSED BUT THE COMPANY BELIEVES IT IS IMPORTANT TO FEATURE THEM ‘UPFRONT’ AT THIS POINT.

PLEASE NOTE:

A: The Company is not currently generating any significant revenues. Further, the Company’s anticipated revenues, if any, from existing Projects, JVs and proposed Projects will not be sufficient to meet the Company’s anticipated operational and capital expenditure needs for many years. Current liabilities were approximately $4.5 million at March 31, 2024 which represents an increase of approximately $2.8 million from June 30, 2023 (largely due to an increase in ‘accounts payable and accrued expenses’ totaling approximately $2.0 million and an increase in ‘deferred compensation’ of approximately $.6 million as a result of the Company’s limited success in raising new financing (equity and/or debt) during the recent period combined with continued expenses (including those related to the Initial Project). Similarly, the Company’s cash on hand decreased from approximately $626,000 to approximately $50,000 over the same period. See NOTE 1. Going Concern and Management’s Plans, Plan of Operations and Outlook and ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (below).

B: On September 28, 2023, in order to partially mitigate the problems referred to above, the Company entered into an agreement for a $1,500,000 bridge loan and executed documents including a convertible promissory note (“Note”) and a binding subscription agreement (“Subscription”) (collectively the Note and the Subscription are the “Bridge Loan Agreements”) with SEB LLC, a non-affiliated party (“Lender”). The Bridge Loan Agreements require the Lender to loan the Company $1,500,000 in six monthly tranches of $250,000 commencing October 2023. All sums advanced under the Bridge Loan Agreements (and accrued interest thereon) would due and payable (with interest accrued at 9% per annum) on October 1, 2024 if not previously converted into securities of the Company. The Note is convertible at $1.00 per unit, at the sole election of the Lender, into units consisting of one share of the Company’s common stock and a warrant to purchase one half share. The initial $250,000 tranche was received by the Company on October 5, 2023. However, no further funds were received by the Company from the Lender. During early November 2023 the Lender informed the Company verbally that it did not intend to fulfill its obligations pursuant to the Bridge Loan Agreements and since such time the Lender has been in default (“Default”). The Default (which is continuing) has created substantial problems for and materially damaged the Company and rendered the Company unable to meet its current creditor obligations on a timely basis. The Company is currently evaluating its rights regarding the Default by the Lender. See Notes 6 and 9 re Convertible Bridge Loan/Default and Note 10, Subsequent Events. This situation has contributed to the substantial increase in the Company’s ‘Current Liabilities’ including ‘accounts payable’ over recent periods. See Consolidated Financial Statements and ‘Management’s Discussion and Analysis’. The Company has engaged in discussion/negotiation with its larger creditors (including its largest creditor--- the primary contractor on the Initial Project) but has been unable to reach agreements regarding payments due to the uncertainty as to if, when and how much funding the Company will be able to raise in future periods. As a result, the Company’s largest creditor---the general contractor for the Initial Project --- has filed a mechanics lien in Indiana (and its largest sub-contractor has sent notices related to its intention to file a mechanics lien) and other creditors are threatening to commence litigation and other creditors are threatening to commence litigation and/or repossess/remove leased equipment).

C: Management previously believed that the Initial Project had reached the point where it could be appropriately deemed ‘placed in service’ at January 1, 2024. However, discussions with the key technical and engineering personnel involved at the Initial Project during the recently concluded quarter convinced management that such a characterization was premature as some key modules had not yet been completed and/or fully tested. Additionally, due to some recent equipment break-downs, the Initial Project is currently in maintenance mode rather than conducting operations while the Company awaits required replacement parts and subsequent repairs. This process has been slowed by the Company’s ongoing difficulties in raising needed funds for its activities. It is management’s current intention to re-evaluate the classification/status of the Initial Project at/after the June 30, 2024 fiscal year end as part of the Company’s annual review process.

D: On May 13, 2024 the Board of Directors commenced a Board-led review of potential strategic alternatives to enhance Bion’s growth and maximize shareholder value. The review will include assessing approaches to optimize the Company’s multiple business opportunities through alternative capital return strategies, potential strategic or financial transactions, and developing strategic initiatives best applicable to each opportunity created by our technology in order to consider all possible paths towards maximizing value creation. No timetable has been established for the conclusion of this review and no decisions related to any further actions or potential strategic alternatives have been made at this time. There can be no assurance that the review will result in any transaction or other strategic change or outcome.

Bion Environmental Technologies, Inc.'s ("Bion," "Company," "We," "Us," or "Our") was incorporated in 1987 in the State of Colorado. Bion’s long term mission has been to make livestock production more sustainable, profitable and transparent by deploying our Gen3Tech platform/business model (discussed below) in ventures focused on the ‘feeder’ space of the livestock production/value chain to provide the consumer with verifiably sustainable premium meat products (together with environmentally friendly, sustainable and/or organic co-products from the production process). Based on the expanded capabilities of our Gen3Tech platform, the Company’s mission and focus now includes mitigation of ammonia nitrogen releases by industrial and municipal facilities utilizing anaerobic digestion (“ADs”) (in addition to animal waste streams generated by CAFOs) by capturing and utilizing such polluting waste emissions to produce organic and/or low carbon fertilizer and (potentially) fuel products. Bion believes these approaches can create extraordinary value for our shareholders and employees (all of whom own securities in the Company) and for livestock/agriculture/industry ‘partners’ who join us in our ventures and/or utilize our technology. We anticipate pursuing the opportunities created by our third generation technology (“Gen3Tech”) and business/technology platform in conjunction with other industry practices (“Gen3Tech Platform” or “Platform”) utilizing a joint venture/strategic partner model and/or through sales/licensing transactions (where appropriate). We believe our approach will improve the well-being of those enterprises utilizing our technology and create value for our shareholders while improving the environment.

Our patented and proprietary technology provides advanced waste treatment and resource recovery for large-scale livestock production facilities (also known as “Concentrated Animal Feeding Operations” or “CAFOs") (and industrial/municipal ADs). Livestock production and its waste, particularly from CAFOs, has been identified as one of the greatest soil, air, and water quality problems in the U.S. today. Additionally, regulatory focus has been increasing regarding ammonia releases by industrial and municipal entities utilizing ADs for gas production and/or waste treatment as well. Application of our Gen3Tech” can largely mitigate these environmental problems, while simultaneously improving operational/ resource efficiencies by recovering high-value co-products from the CAFOs’ and municipal and industrial facilities utilizing ADs’ waste streams. These ‘assets’ have traditionally been wasted or underutilized and are the same ‘pollutants’ that today fuel harmful algae blooms, contaminate surface groundwater, and exacerbate climate change.

Bion’s business model and technology platform can create the opportunity for joint ventures (in various contractual forms) (“JVs”) between the Company and large livestock/food/fertilizer industry participants based upon the supplemental cash flow generated by implementation of our Gen3Tech business model, which cash flows will support the costs of technology implementation (including servicing related debt). To accomplish Bion’s goals in this sector, we anticipate the we will ‘partner’ with other technology companies who provide solutions for different links of the beef (and other livestock) value chain and with strategic partners up and down the supply chain. We anticipate this will result in substantial long-term value for Bion. In the context of such JVs, we believe that the verifiable sustainable branding opportunities (conventional and organic) in meat will represent one of the larger enhanced revenue contributors provided by Bion to the JVs (and Bion licensees). The Company believes that a large portion of its business with be conducted through such JVs, but a material portion may involve licensing and or other approaches.

Bion’s Gen3Tech was designed to capture and stabilize these assets and produce renewable energy, fertilizer products, and clean water as part of the process of raising verifiably sustainable livestock. All steps and stages in the animal raising and waste treatment process will be third-party verified, providing the basis for additional revenues, including carbon and/or renewable energy-related credits and, eventually, payment for a range of ecosystem services, including nutrient credits as described below. The same verified data will be used to substantiate the claims of a USDA-certified sustainable brand that will support premium pricing for the meat/ animal protein products that are produced in Bion facilities.

During the first half of calendar 2022 Bion began pre-marketing our sustainable beef opportunity to retailers, food service distributors and the meat industry in the U.S. In general, the response has been favorable. During our 2023 fiscal year, Bion entered into three (3) letters of intent (“LOIs”): a) July 2022 letter of intent to develop a large-scale commercial project - a 15,000-head sustainable beef cattle feeding operation together with the Ribbonwire Ranch (“Ribbonwire LOI”), in Dalhart, Texas (with a provision to expand to 60,000 head) (“Dalhart Project”), (b) January 2023 letter of intent to develop a large-scale commercial project - a 15,000-head sustainable beef cattle feeding operation together with the Olson Feeders and TD Angus (“Olson LOI”), near North Platte, Nebraska (with a provision to expand to 45,000 head or more) (“Olson Project”) and c) April 2023 letter of intent to develop a large-scale commercial project - a 15,000-head sustainable beef cattle feeding operation together with Dakota Valley Growers (“DVG LOI”) near Bathgate, North Dakota (“DVG Project”). The Company is in discussions with additional parties regarding potential further LOIs. Based on our experience to date, we believe we will not have difficulty in securing participation in our Projects from additional feeders/cattlemen. The Olson, Dalhart and DVG Projects (and subsequent Projects) will be developed to produce blockchain-verified, sustainable beef in customized covered barns (resulting in reduced stress on cattle caused by extreme weather and temperatures and resulting higher feed/weight gain efficiency) with ongoing manure transfer (through slatted floors) to anaerobic digesters (AD) to capture nitrogen from the manure stream before loss to the atmosphere and generate renewable natural gas (RNG) for sale while remediating the environmental/carbon impacts usually associated with cattle feedlots and CAFOs. Bion’s patented Gen3Tech platform will refine the waste stream into valuable coproducts that include clean water, RNG, photovoltaic solar electricity and fertilizer (‘climate smart’ and/or organic) products. We anticipate converting tone or more of these LOIs into definitive JV agreements and creating related distribution agreements with key retailers and food service distributors during the current calendar year.

Our business plan is focused on executing multiple agreements and letters of intent related to additional sustainable beef JV projects over the next twenty-four (24) months while continuing our work at the Initial Project (see below) and commencing development of one (or more) of the Dalhart/Olson/DVG Projects (“LOI Projects”)(and/or other Gen3Tech beef JV projects) while pursuing other opportunities in the livestock industry (and related to industrial and municipal entities utilizing ADs for gas production and/or waste treatment) enabled by our Gen3Tech business model. The LOI announcements generated significant interest within the livestock industry (among ranchers, feedlot operators, farmers and other AG industry parties) and has led to and assisted our discussions with many major of the larger agriculture/livestock industry companies (including those involved with distribution and/or sales of meat products) in the country which are ongoing at this date. We believe that this interest, combined with consumer interest in ‘sustainable products’ and growing enthusiasm among some livestock industry parties for environmental/sustainable/regenerative practices, may provide Bion (and its partners/venturers) with an opportunity to move forward with a truly sustainable solution in this industry segment at a rapid pace.

During the 2023 calendar year, the Company constructed (construction is largely completed --- subject to installation of some final modules and repair/maintenance for some equipment which has broken down during operations over the last quarter) phase 1 of our Initial Project (our commercial scale demonstration facility) located near Fair Oaks, Indiana (our 3GTech Ammonia Recovery System (‘ARS’)) and begun its operations. . Operating results to date at the Initial Project indicate ARS performance will exceed initial expectations for ammonia recovery and related economics. The Company recently announced that we have achieved multiple key technical objectives in the optimization of its ARS and which will support the final design process for full-scale systems (based on results to date and testing over the remainder of this calendar year) at the Initial Project. The ARS has achieved and maintained controlled steady-state operations under a variety of conditions. When operated at steady state, the system produces an ammonium distillate (solution), the base of Bion’s nitrogen fertilizer products. Bion has begun optimizing the ARS’s operating parameters with the goal of meeting and/or exceeding the results needed for Bion’s economic models for large-scale commercial projects. The Company expects the current optimization phase will continue during the current quarter (and through the balance of the year) and provide data required to support final design/engineering for commercial project modules. We believe this data will also provide additional potential stakeholders (including: a) cattle producers, cattle feeders, packers, distributors, retailers in the agricultural segment, b) operators of industrial and/or municipal facilities utilizing ADs and c) financial institutions) with the information they need to proceed with confidence in collaborating with Bion on projects. Final economic and energy efficiency models will be validated during the final design process. The Company intends to engage a third party engineering firm during the upcoming quarter to prepare a third-party evaluation of the ARS while also moving forward on final commercial design processes. Each of the initiatives/activities referenced above are subject to resolution of the financial constraints facing the Company that are described in multiple places in this document

The patented ARS is the core of Bion’s Gen3Tech platform. It recovers and upcycles problem ammonia contained in the effluent from anaerobic digestion (where methane is captured and more ammonia is released) of the livestock manure waste stream (as well as various industrial waste streams including food processing and municipal facilities that utilize ADs in their process trains). The ARS captures the ammonia, minimizing its environmental impacts and enables creation of creating low-carbon and/or organic nitrogen fertilizer products with it. , The Company has produced ammonium distillate and ammonium bicarbonate solutions at the Initial Project in several concentrations and has initiated the application process for organic certification for the initial concentration of liquid fertilizer product that have been recovered (to be followed by additional applications for products of varied concentrations and attributes). Multiple applications to OMRI (Organic Materials Review Institute) and CDFA (California Department of Food and Agriculture) are being prepared for listing/certification of new organic products and the initial OMRI application has been filed. Bion received an OMRI-Listing in 2020 for its initial liquid product. Bion intends to continue producing liquid and crystal fertilizer products at the Initial Project to support testing and life-cycle analysis, product trials, and ongoing organic initiatives. Bion has produced and will continue to produce a solid/granular nitrogen fertilizer product at the Initial Project which we believe will be both ‘Climate-Smart’ and ‘Water-Smart’ – a pure nitrogen fertilizer with a low carbon footprint, that is water soluble and readily available to plants. Samples of the granular product will also be utilized to support organic certification applications.

Bion expects the Initial Project data will document the effectiveness of our Gen3Tech in a commercial-scale setting during the current year and support commencement of development of one or more Gen3Tech beef JV projects and an initial industrial/municipal project over the next year. We do not presently know the order in which JV Projects will be developed as that decision will be made based on many factors not yet in place. We believe the Initial Project data will also provide additional potential stakeholders with the information they need to proceed with confidence in collaborating with Bion on multiple new projects.

Note that Bion recently announced its intention to establish strategic partnerships and to market the ARS as a ‘stand-alone’/’bolt-on’ addition to anaerobic digestion (“AD”) nitrogen control facilities in two large sectors (in both this country and in Europe):

INDUSTRIAL AND MUNICIPAL WASTEWATER. AD is now used at 1,269 water resource recovery facilities in the U.S., with another 102 stand-alone systems that digest food waste. The American Biogas Council estimates that there are an additional 8,600 sites with development potential. Germany, by comparison, has almost 10,000 operating AD sites. In the U.S., wastewater and AD digestate from industrial and municipal sources is already regulated for ammonia and nitrates. The EPA recently proposed tougher standards for slaughter facilities. Bion believes ARS ammonia treatment costs will be competitive in these markets and that its unique premium fertilizer byproducts will create an advantage, especially with waste streams that are still considered ‘organic’, like slaughter and food waste.

ANIMAL WASTE. According to the American Biogas Council here are 473 animal waste digesters operating in the U.S. today, most on dairy operations. The American Biogas Council and USDA’s AgSTAR program estimate more than 8,000 additional sites with development potential. The ARS was designed specifically for this purpose: control ammonia from livestock waste and produce the highest value byproducts with it. Digestate from animal waste AD has enjoyed the same reduced regulatory requirements as land applying raw manure. Recent trends in Michigan and California indicate they will soon regulate animal waste digestate in the same manner as any other industrial source, subject to groundwater permitting requirements. Bion believes its proven technology and value-added fertilizers will give it a significant competitive advantage in this evolving market.

Bion is now focused primarily on: i) operation and further testing at the Initial Project, our initial commercial-scale Gen3Tech installation, for support of design/feasibility studies/reports related to our initial JV Projects (and further optimization of its operational parameters), ii) pre-development planning of the LOI Projects (and/or other Gen3Tech beef JV projects) including steps toward distribution agreements, iii) developing applications and markets for its low carbon ‘ClimateSmart’ and organic fertilizer products (including listings/certifications of multiple liquid and solid products) and its sustainable (conventional and organic) animal protein products, and iv) discussions regarding initiation and development of agreements and joint ventures (“JVs” as discussed herein) (and related Projects) based on the augmented capabilities of our Gen3Tech business platform (in the sustainable beef and other livestock segments), (v) exploring opportunities re stand-alone ARS markets, and v) ongoing R&D activities. Each of the initiatives/activities referenced above are subject to resolution of the financial constraints facing the Company that are described in multiple places in this document

HISTORY, BACKGROUND AND CURRENT ACTIVITIES

For expanded information regarding our ‘HISTORY, BACKGROUND AND CURRENT ACTIVITIES’, see discussion elsewhere within the Notes (particularly Notes 3, 5, 9 and 10) included in this report, in Forms 8-K and Forms 10-Q filed earlier this year and Item 1 (and other sections) in our Annual Reports on Form 10-K.

Going Concern and Management’s Plans:

The Company’s condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company incurred a net loss of $2,002,000 and $2,507,000 for the nine months ended March 31, 2024 and 2023, respectively. At March 31, 2024, the Company has a working deficit and a stockholders’ equity of approximately $4,290,000 and $3,355,000, respectively. The Company has never generated significant operating revenues (even though it earned a net income of $8,291,000 for the year ended June 30, 2022) and incurred a net loss of approximately ($3,189,000) during the year ended June 30, 2023. The net income for the year ended June 30, 2022 was largely due to a one-time, non-cash event of the dissolution of Bion PA-1, LLC (“PA-1”) resulting in a gain of approximately $10,235,000 as well as a one-time gain of $902,000 from the sale of the Company’s ‘biontech.com’ domain pursuant to a purchase agreement during the period. During the year ended June 30, 2023 the Company had debt modifications that resulted in a reduction of debt of $3,516,000 and an increase in equity. The Company’s lack of revenue and/or operating profits, together with the low likelihood of generating positive cash flow and/or net income during the next 12-24 months, raise substantial doubt about the Company’s ability to continue as a going concern.

The Company is not currently generating any significant revenues. Further, the Company’s anticipated revenues, if any, from existing projects, JVs and proposed projects will not be sufficient to meet the Company’s anticipated operational and capital expenditure needs for many years. As previously noted, the Company is currently not generating significant revenue and accordingly has not generated cash flows from operations. The Company does not anticipate generating sufficient revenues to offset operating and capital costs (for Projects) for a minimum of two to five years. While there are no assurances that the Company will be successful in its efforts to develop and construct its Projects and market its Systems, it is certain that the Company will require substantial funding from external sources. Given the unsettled state of the current credit and capital markets for companies such as Bion, there is no assurance the Company will be able to raise the funds it needs on reasonable terms. The aggregate effect of these factors raises substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments relating to the recoverability or classification of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. The following paragraphs describe management’s plans with regard to these conditions.

Current liabilities were approximately $4.5 million and $1.6 million at March 31, 2024 and 2023, respectively. There was an increase of approximately $2.9 million (which was largely due to an increase in ‘accounts payable and accrued expenses’ and an increase in ‘deferred compensation’) as a result of the Company’s limited success in raising new financing (equity and/or debt) during the recent period combined with continued expenses (including those related to the Initial Project).

The Company continues to explore sources of additional financing to satisfy its current operating requirements as it is not currently generating any significant revenues. During fiscal years 2023 and 2022 (as a whole), the Company faced less difficulty in raising equity funding (but was subject to substantial equity dilution from the larger amounts of equity financing during the periods) than was experienced in the prior 3 years. However, this positive trend did not continue during the last quarter of the 2023 fiscal year and the first three quarters of the current fiscal year (and the fourth quarter through the date of this report). The Company raised very limited equity funds during such periods to meet some of its immediate needs, and therefore, the Company needs to raise substantial additional funds in the upcoming periods. The Company has faced substantial demand for capital and operating expenditures for the fiscal year 2024 to date (and we anticipate such demands will continue (or increase) during the remainder of the 2024 fiscal year and periods thereafter) as it moves toward commercial implementation of its 3G Tech and development of JVs (including costs associated with additions of personnel to carry out the business activities of the Company) and, therefore, is likely to continue to face, significant cash flow management issues due to limited capital resources and working capital constraints which had only recently begun to be alleviated. As a result, the Company has faced, and continues to face, significant cash flow management challenges due to material working capital constraints. To partially mitigate these working capital constraints, the Company's core senior management and some key employees and consultants have been deferring most of their cash compensation and/or are accepting compensation in the form of securities of the Company and members of the Company's senior management have from time-to-time made loans to the Company in the past and may do so in future periods.

The Company continues to explore sources of additional financing (including potential agreements with strategic partners – both financial and ag-industry) to satisfy its current and future operating and capital expenditure requirements as it is not currently generating any significant revenues.

During the years ended June 30, 2023 and 2022, the Company received gross proceeds of approximately $4,038,000 and $1,737,000, respectively, from the sale of its debt and equity securities. The Company paid commissions on the exercise of warrants in the amount of $86,000 and $19,000 in 2023 and 2022, respectively.

During the nine months ended March 31, 2024 and 2023, the Company received gross proceeds of approximately $611,000 and $3,266,000, respectively, from the sale of its debt and equity securities. This over 80% decrease in proceeds has created substantial difficulties for the Company.

During the nine months ended March 31, 2024, the Company received proceeds of $250,000 from a convertible bridge loan but the provider of the bridge loan breached its contractual obligation/binding subscription agreement to fund an additional $1,250,000 to the Company during November 2023 (and on an ongoing basis since such time), which breach (combined with management stresses related to the final illness and passing of Dominic Bassani, Bion’s COO and former CEO, and required management transitions) has created a substantial cash flow difficulties for the Company which are ongoing. (See Note 6 and Note 9, Bridge Loan/Default below.)

The Company anticipates substantial demand for capital and operating expenditures for the balance of fiscal year 2024 (and we anticipate such demands will continue and increase during the 2025 fiscal year and periods thereafter) as it moves toward commercial implementation of its 3G Tech and development of JVs (including costs associated with additions of personnel to carry out the business activities of the Company) and, therefore, is likely to continue to face, significant cash flow management issues due to limited capital resources and working capital constraints which had only begun to be alleviated during the 2023 fiscal year. As a result, the Company has faced, and continues to face, significant cash flow management challenges due to material working capital constraints. To partially mitigate these working capital constraints, the Company's core senior management and some key employees and consultants have been deferring most of their cash compensation and/or are accepting compensation in the form of securities of the Company and members of the Company's senior management have from time-to-time made loans to the year ended June 30, 2018, senior management and certain core employees and consultants agreed to a one-time extinguishment of liabilities owed by the Company which in aggregate totaled $2,404,000. Additionally, the Company made reductions in its personnel during the years ended June 30, 2014 and 2015 and again during the year ended June 30, 2018. As set forth in detail elsewhere herein, during the year ended June 30, 2023 senior management (and family members) who held convertible obligations of the Company adjusted the terms of their outstanding notes and agreed to debt modifications that reduced of the Company’s debt by $3,516,000 and increased shareholders equity by the same amount.

The constraints on available resources have had, and continue to have, negative effects on the pace and scope of the Company’s efforts to operate and develop its business. The Company has had to delay payment of trade obligations and has had to economize in many ways that have potentially negative consequences. If the Company is able to raise needed funds during the remainder of the current fiscal year (and subsequent periods), of which there is no assurance, management will not need to consider deeper cuts (including additional personnel cuts) and/or curtailment of ongoing activities including research and development activities. The Company will need to obtain additional capital to fund its operations and technology development, to satisfy existing creditors, to develop Projects (including the Initial Project, JV Projects (including the Dalhart, Olson and DVG Projects), and the Kreider 2 facility) and CAFO Retrofit waste remediation systems. The Company anticipates that it will seek to raise from $20,000,000 to $80,000,000 or more debt and/or equity through joint ventures, strategic partnerships and/or sale of its equity securities (common, preferred and/or hybrid) and/or debt (including convertible) securities, and/or through use of ‘rights’ and/or warrants (new and/or existing) and/or through other means during the next twelve months. However, as discussed above, there is no assurance, especially in light of the difficulties the Company has experienced in many recent years and the extremely unsettled capital markets that presently exist for small pre-revenue companies like us, that the Company will be able to obtain the funds that it needs to stay in business, complete its technology development or to successfully develop its business and Projects.

There is no realistic likelihood that funds required during the next twelve months (or in the periods immediately thereafter) for the Company’s basic operations, the Initial Project and/or proposed JVs and/or Projects will be generated from operations. Therefore, the Company will need to raise sufficient funds from external sources such as debt or equity financings or other potential sources. The lack of sufficient additional capital resulting from the inability to generate cash flow from operations and/or to raise capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business. Further, there can be no assurance that any such required funds, if available, will be available on attractive terms or that they will not have a significantly dilutive effect on the Company’s existing shareholders. All of these factors have been exacerbated by the extremely limited and unsettled credit and capital markets presently existing for small companies like Bion.

Covid-19 pandemic related matters:

The Company faces risks and uncertainties and factors beyond our control that are magnified during the current Covid-19 pandemic and the unique economic, financial, governmental and health-related conditions in which the Company, the country and the entire world now reside. To date the Company has experienced direct impacts in various areas including but without limitation: i) government ordered shutdowns which have slowed the Company’s research and development projects and other initiatives, ii) shifted focus of state and federal governments which is likely to negatively impact the Company’s legislative initiatives in Pennsylvania and Washington D. C., iii) strains and uncertainties in both the equity and debt markets which have made discussion and planning of funding of the Company and its initiatives and projects with investment bankers, banks and potential strategic partners more tenuous, iv) strains and uncertainties in the agricultural sector and markets have made discussion and planning more difficult as future industry conditions are now more difficult to assess and predict, v) constraints due to problems experienced in the global industrial supply chain since the onset of the Covid-19 pandemic, which have delayed certain research and development testing and have delayed and/or increased the cost of construction of the Company’s initial 3G Tech installation as equipment/services remain difficult to acquire in a timely manner, vi) due to the age and health of our core management team, many of whom are age 70 or older and have had one or more existing health issues (including brief periods of Covid-19 infection), the Covid-19 pandemic places the Company at greater risk than was previously the case (to a higher degree than would be the case if the Company had a larger, deeper and/or younger core management team), and vii) there almost certainly will be other unanticipated consequences for the Company as a result of the current pandemic emergency and its aftermath.

2. SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation:

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Bion Integrated Projects Group, Inc., Bion Technologies, Inc., BionSoil, Inc., Bion Services, Bion PA2 LLC and Bion 3G-1 LLC (“3G1”); and its 58.9% owned subsidiary, Centerpoint Corporation (“Centerpoint”). All significant intercompany accounts and transactions have been eliminated in consolidation.

Bion PA1 LLC was dissolved on December 29, 2021 (See Note 5). Its operating losses are included in the consolidation through December 29, 2021.

The accompanying condensed consolidated financial statements have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed consolidated financial statements reflect all adjustments (consisting of only normal recurring entries) that, in the opinion of management, are necessary to present fairly the financial position at March 31, 2024, the results of operations and cash flows of the Company for the three and nine months ended March 31, 2024 and 2023. Operating results for the three and nine months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending June 30, 2024.

Cash and cash equivalents:

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash and cash equivalents. As of March 31, 2024 and June 30, 2023 there are no cash equivalents.

Property and equipment:

Property and equipment are stated at cost and are depreciated, when placed into service, using the straight-line method over the estimated useful lives of the related assets, generally three to twenty years. The Company capitalizes all direct costs and all indirect incrementally identifiable costs related to the design and construction of its Integrated Projects such as consulting fees, internal salaries and benefits and interest. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized based on the amount by which the carrying value of the assets or asset group exceeds its estimated fair value, and is recognized as a loss from operations.

Patents:

The Company has elected to expense all costs and filing fees related to obtaining patents (resulting in no related asset being recognized in the Company’s condensed consolidated balance sheets) because the Company believes such costs and fees are immaterial (in the context of the Company’s total costs/expenses) and have no direct relationship to the value of the Company’s patents.

Stock-based compensation:

The Company follows the provisions of Accounting Standards Codification (“ASC”) 718, which generally requires that share-based compensation transactions be accounted and recognized in the statement of operations based upon their grant date fair values.

Derivative Financial Instruments:

Pursuant to ASC Topic 815 “Derivatives and Hedging” (“Topic 815”), the Company reviews all financial instruments for the existence of features which may require fair value accounting and a related mark-to-market adjustment at each reporting period end. Once determined, the Company assesses these instruments as derivative liabilities. The fair value of these instruments is adjusted to reflect the fair value at each reporting period end, with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives.

Options:

The Company has issued options to employees and consultants under the 2006 Plan to purchase common shares of the Company. Options are valued on the grant date using the Black-Scholes option-pricing model. The expected volatility is based on the historical price volatility of the Company’s common stock. The dividend yield represents the Company’s anticipated cash dividend on common stock over the expected term of the stock options. The U.S. Treasury bill rate for the expected term of the stock options was utilized to determine the risk-free interest rate. The expected term of stock options represents the period of time the stock options granted are expected to be outstanding based upon management’s estimates.

Warrants:

The Company has issued warrants to purchase common shares of the Company. Warrants are valued using a fair value based method, whereby the fair value of the warrant is determined at the warrant issue date using a market-based option valuation model based on factors including an evaluation of the Company’s value as of the date of the issuance, consideration of the Company’s limited liquid resources and business prospects, the market price of the Company’s stock in its mostly inactive public market and the historical valuations and purchases of the Company’s warrants. When warrants are issued in combination with debt or equity securities, the warrants are valued and accounted for based on the relative fair value of the warrants in relation to the total value assigned to the debt or equity securities and warrants combined.

Concentrations of credit risk:

The Company's financial instruments that are exposed to concentrations of credit risk consist of cash. The Company's cash is in demand deposit accounts placed with federally insured financial institutions and selected brokerage accounts. Such deposit accounts at times may exceed federally insured limits. The Company has not experienced any losses on such accounts.

Noncontrolling interests:

In accordance with ASC 810, “Consolidation”, the Company separately classifies noncontrolling interests within the equity section of the condensed consolidated balance sheets and separately reports the amounts attributable to controlling and noncontrolling interests in the condensed consolidated statements of operations. In addition, the noncontrolling interest continues to be attributed its share of losses even if that attribution results in a deficit noncontrolling interest balance.

Fair value measurements:

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The Company uses a fair value hierarchy that has three levels of inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value.

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and

Level 3 – assets and liabilities whose significant value drivers are unobservable.

Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.

The fair value of cash and accounts payable approximates their carrying amounts due to their short-term maturities. The fair value of the loan payable is indeterminable at this time due to the nature of the arrangement with a state agency and the fact that it is in default. The fair value of the redeemable preferred stock approximates its carrying value due to the dividends accrued on the preferred stock which are reflected as part of the redemption value. The fair value of the deferred compensation and convertible notes payable - affiliates are not practicable to estimate due to the related party nature of the underlying transactions.

Lease Accounting:

The Company accounts for leases under ASC 842, Leases (“ASC 842”). Accordingly, the Company will determine whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the term of such lease is assessed based on the date on which the underlying asset is made available for the Company’s use by the lessor. The Company’s assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain of not exercising, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the condensed consolidated statements of operations over the lease term.

For leases with a term exceeding 12 months, a lease liability is recorded on the Company’s consolidated balance sheet at lease commencement reflecting the present value of its fixed minimum payment obligations over the lease term. A corresponding right-of-use (“ROU”) asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. For purposes of measuring the present value of its fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in its leasing arrangements are typically not readily determinable. The Company's incremental borrowing rate reflects the rate it would pay to borrow on a secured basis and incorporates the term and economic environment of the associated lease.

Revenue Recognition:

The Company currently does not generate revenue and if and when the Company begins to generate revenue the Company will comply with the provisions of ASC 606 “Revenue from Contracts with Customers”.

Income (Loss) per share:

Basic income (loss) per share amounts are calculated using the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share assumes the conversion, exercise, or issuance of all potential common stock instruments, such as options or warrants, unless the effect is to reduce the income (loss) per share or increase the earnings per share. During the three and nine months ended March 31, 2024 and 2023, the basic and diluted income (loss) per share was the same, as the impact of potential dilutive common shares was anti-dilutive.

The following table represents the warrants and options (as if exercised) and convertible securities (as if converted) that have been excluded from the calculation of basic income (loss) per share:


	March 31, 2024		March 31, 2023
Warrants		17,452,468		21,944,437
Options		11,951,600		11,506,600
Convertible debt		9,485,482		10,052,765

The following is a reconciliation of the denominators of the basic and diluted income (loss) per share computations for the three and nine months ended March 31, 2024 and 2023.


	Three months ended March 31, 2024			Three months ended March 31, 2023			Nine months ended March 31, 2024			Nine months ended March 31, 2023
Shares issued – beginning of period		50,611,962			44,529,884			48,880,237			43,758,820
Shares held by subsidiaries (Note 7)		(704,309	)		(704,309	)		(704,309	)		(704,309	)
Shares outstanding – beginning of period		49,907,653			43,825,575			48,175,928			43,054,511
Weighted average shares issued during the period		4,128,212			1,630,842			2,322,245			1,110,798
Diluted weighted average shares – end of period		54,035,865			45,456,417			50,498,173			44,165,309

Use of estimates:

In preparing the Company’s condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recent Accounting Pronouncements:

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its condensed consolidated financial statements and assures that there are proper controls in place to ascertain that the Company’s condensed consolidated financial statements properly reflect the change.

3. PROPERTY AND EQUIPMENT:

Property and equipment consist of the following:

Schedule of property and equipment
	March 31, 2024			June 30, 2023
Computers and office equipment		12,606			15,156
Initial Project: construction in process		9,340,612			6,847,760
Property and equipment, gross		9,353,218			6,862,916
Less accumulated depreciation		(11,581	)		(11,907	)
Property and equipment, net	$	9,341,637		$	6,851,009

The 3G1 project (“Initial Project”) began in July of 2021, with a lease signed on land October 1, 2021 (Note 9). Once the lease commenced the Company moved into construction phase. The balance for the Initial Project construction in process includes $257,657 and $98,104 for capitalized interest and $135,648 and $135,648 in non-cash compensation as of December 31, 2023 and 2022, respectively.

Management previously believed that the Initial Project had reached the point where it could be appropriately deemed ‘placed in service’ at January 1, 2024. However, discussions with the key technical and engineering personnel involved at the Initial Project during the recently concluded quarter convinced management that such a characterization was premature as some key modules had not yet been completed and/or fully tested. Additionally, due to some recent equipment break-downs, the Initial Project is currently in maintenance mode rather than conducting operations while the Company awaits required replacement parts and subsequent repairs. This process has been slowed by the Company’s ongoing difficulties in raising needed funds for its activities. It is management’s current intention to re-evaluate the classification/status of the Initial Project at/after the June 30, 2024 fiscal year end as part of the Company’s annual review process (Note 1 and Note 10).

Management has reviewed the remaining property and equipment for impairment as of March 31, 2024 and believes that no impairment exists.

Depreciation expense was $331 and $461 for the three months ended March 31, 2024 and 2023, respectively and $1,251 and $1,185 for the nine months ended March 31, 2024 and 2023, respectively.

4. DEFERRED COMPENSATION:

The Company owes deferred compensation to various employees, former employees and consultants totaling $1,432,678 and $784,255 as of March 31, 2024 and 2023, respectively. Included in the deferred compensation balances as of March 31, 2024, are $322,500, $658,169 and $101,350 owed William O’Neill (“O’Neill”), the Company’s CEO, the estate/heirs of Dominic Bassani (“Bassani”), the Company’s recently deceased former Chief Operating Officer (who was Chief Executive Officer until through April 30, 2022) (NOTE: Dominic Bassani passed away on November 11, 2023.), and Mark A. Smith (“Smith”), the Company’s President, respectively.

The sums owed to Bassani and Smith are owed pursuant to extension agreements effective January 1, 2015, whereby unpaid compensation earned after January 1, 2015, accrues interest at 4% per annum and can be converted into shares of the Company’s common stock at the election of the employee during the first five calendar days of any month. The conversion price shall be the average closing price of the Company’s common stock for the last 10 trading days of the immediately preceding month. The deferred compensation owed Bassani and Smith as of March 31, 2023 was $410,585.

O’Neill is owed a balance of $322,500 and $110,000 at March 31, 2024 and 2023, respectively, pursuant to his 2021 employment agreement. There is no interest accrual or conversion rights related to the deferred balance.

The Company also owes various consultants and an employee, pursuant to various agreements, for deferred compensation of $278,158 and $92,355 as of March 31, 2024 and 2023, respectively, with similar conversion terms as those described above for Bassani and Smith, with the exception that the interest accrues at 0% to 3% per annum. The Company also owes a former employee $72,500, which is not convertible and is non-interest bearing. Bassani and Smith have each been granted the right to convert up to $300,000 of deferred compensation balances at a price of $0.75 per share until June 30, 2024 into common shares (to be issued pursuant to the 2006 Plan). Smith also has the right to convert all or part of his deferred compensation balance into the Company’s securities (to be issued pursuant to the 2006 Plan) “at market” and/or on the same terms as the Company is selling or has sold its securities in its then current (or most recent if there is no current) private placement. Smith also received the right to transfer future deferred compensation to his 2020 Convertible Obligation at his election but such right is no longer in force.

The Company recorded interest expense of $8,201 ($6,817 with related parties) and $6,817 ($4,428 with related parties) for the three months ended March 31, 2024 and 2023, respectively and $21,830 ($19,328 with related parties) and $19,328 ($12,893 with related parties) for the nine months ended March 31, 2024 and 2023, respectively.

5. LOANS PAYABLE:

Pennvest Loan and Bion PA1 LLC (“PA1”) Dissolution

PA1, the Company’s wholly-owned subsidiary, was dissolved on December 29, 2021 on which date it owed approximately $10,010,000 under the terms of the Pennvest Loan related to the construction of the Kreider 1 System including accrued interest and late charges totaling $2,255,802 as of that date. Through the date of the dissolution, PA1 was a wholly-owned subsidiary of the Company and its assets and liabilities were included on the Company’s condensed consolidated balance sheet. At September 30, 2021, PA1’s total assets were $297 and its total liabilities were $10,154,334 (including the Pennvest Loan in the aggregate amount of $9,939,148, accounts payable of $214,235 and accrued liabilities of $950) which sums were included in the Company’s condensed consolidated balance sheet in its Form 10-Q for the quarter ended September 30, 2021. Subsequent to the dissolution of PA1, its assets and liabilities are no longer consolidated and included in the Company’s balance sheet. As of December 29, 2021, PA1’s total assets were nil and its total liabilities were $10,234,501 (including the Pennvest Loan in the aggregate amount of $10,009,802, accounts payable of $212,263 and accrued liabilities of $12,436). The net amount of $10,234,501 was recognized as a gain on the legal dissolution of a subsidiary in other (income) expense.

As background, the terms of the Pennvest Loan provided for funding of up to $7,754,000 which was to be repaid by interest-only payments for three years, followed by an additional ten-year amortization of principal. The Pennvest Loan accrued interest at 2.547% per annum for years 1 through 5 and 3.184% per annum for years 6 through maturity. The Pennvest Loan required minimum annual principal payments of approximately $5,886,000 in fiscal years 2013 through 2021, and $846,000 in fiscal year 2022, $873,000 in fiscal year 2023 and $149,000 in fiscal year 2024. The Pennvest Loan was collateralized by PA1’s Kreider 1 System and by a pledge of all revenues generated from Kreider 1 including, but not limited to, revenues generated from nutrient reduction credit sales and by-product sales. In addition, in consideration for the excess credit risk associated with the project, Pennvest was entitled to participate in the profits from Kreider 1 calculated on a net cash flow basis, as defined. The Company has incurred interest expense related to the Pennvest Loan of $123,444 and $246,887 for the years ended June 30, 2022 and 2021, respectively. Based on the limited development of the depth and breadth of the Pennsylvania nutrient reduction credit market, PA1 commenced discussions and negotiations with Pennvest related to forbearance and/or re-structuring the obligations under the Pennvest Loan during 2013. In the context of such negotiations, PA1 elected not to make interest payments to Pennvest on the Pennvest Loan since January 2013. Additionally, the PA1 did not make any principal payments, which were to begin in fiscal 2013, and, therefore, the Company classified the Pennvest Loan as a current liability through the dissolution of PA1 on December 29, 2021.

During August 2012, the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider 1 system met the ‘technology guaranty’ standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan has been solely an obligation of PA1 since that date. Note, however, the Company’s condensed consolidated balance sheet as of June 30, 2021 reflects the Pennvest Loan as a liability of $9,868,495 despite the fact that the obligation (if any) was solely an obligation of PA1.

On September 25, 2014, the Pennsylvania Infrastructure Investment Authority (“Pennvest”) exercised its right to declare the PA1’s Pennvest Loan in default, accelerated the Pennvest Loan and demanded that PA1 pay $8,137,117 (principal, interest plus late charges) on or before October 24, 2014. PA1 did not make the payment and did/does not have the resources to make the payments demanded by Pennvest. PA1 commenced discussions and negotiations with Pennvest concerning this matter but Pennvest rejected PA1’s proposal made during the fall of 2014. PA1 made a final proposal to Pennvest during September 2021 which proposal was also rejected by Pennvest. PA1 provided Pennvest with its financial statements (which include a description of system status) annually. During the 2021 fiscal year, Pennvest’s auditors requested a ‘corrective action plan’ and PA1 informed Pennvest that “… there is no viable corrective action plan for the Pennvest Loan (‘Loan’). The facility funded by the Loan has been shut down for many years (which has been disclosed in the annual financial reports to Pennvest and in public filings by the parent of Bion PA 1, LLC) and the technology utilized in the facility is now obsolete. The facility has not been commercially operated for approximately six years and has generated zero income. We recommend that Pennvest take appropriate steps to remove and sell the equipment.” Pennvest responded favorably to the approach of selling the equipment.

On December 29, 2021, the Company approved and executed a ‘Consent of the Sole Member of Bion PA 1’ (the “Consent to Dissolution”) that authorized the complete liquidation and dissolution of PA1. A Statement of Dissolution was filed by PA1 with the Colorado Secretary of State on December 29, 2021.The liquidation value of Bion PA 1’s property is substantially below the current amount outstanding under the Funding Agreement dated October 27, 2010 by and between PA1 and Pennvest, the only known secured creditor of PA1. Post-dissolution, PA1’s activities will be limited entirely to activities required to properly distribute its net assets to creditors and wind down its business.

PA1 and Pennvest agreed to have the equipment sold by a third party auctioneer who arranged for the sale of its property and delivery of all proceeds (net of commissions and customary costs of sale) to Pennvest. The auction took place during the period of May 13-18, 2022. The Company’s personnel assisted PA1 with this process as needed at no cost to PA1. The net sum of $104,725 was realized from the asset sale, which sum was delivered to Pennvest on June 15, 2022. Pursuant to agreement with Pennvest and Kreider Farms, the remaining unsold assets have been transferred to Kreider Farms in order to complete the winding up of the Kreider 1 project.

Upon the complete distribution of all assets of PA1, whether by transfer or sale and distribution of net proceeds as provided above, PA1 will use commercially reasonable efforts to cause the cessation of all activities. No distributions of PA1’s assets will be made to the Company or its affiliates. The Consent to Dissolution authorized Mark A. Smith, the Company’s President and the sole manager of PA1, to cause to be delivered for filing the Statement of Dissolution, to give notice of the dissolution, and to take any other act necessary to wind up and liquidate the business.

PA1 has made no payments to vendors or other creditors in connection with the dissolution other than the payment to Pennvest described above. No distributions or payments of any kind have ever been made to the Company, the sole member of PA1 since inception and no payment will be made to the Company or any affiliate in connection with the dissolution.

For more information regarding the history and background of the Pennvest Loan and PA1, please review our Form’s 10-K for the years from 2008 through 2021 including the Notes to the Financial Statements included therein.

6. CONVERTIBLE NOTES PAYABLE:

Adjusted 2020 Convertible Obligations and Adjusted September 2015 Convertible Notes

Effective February 1, 2023, three (3) directors/officers of the Company agreed to adjust the provisions of long term convertible obligations (including most of the 2020 Convertible Obligations and September 2015 Convertible Notes --- see below) owed to them by the Company in a manner which reduced the indebtedness of the Company by 80% (approximately $3.47 million, in aggregate –See Note 7 below, ‘Debt Modification to Additional Paid in Capital’) while equitably maintaining existing conversion rights. The debt modification was treated as an equity transaction because the modifications were with affiliates that are related parties.

Mark A. Smith (the Company’s President)(“Smith”), Dominic Bassani (the Company’s Chief Operating Officer) (“Bassani”) (NOTE: Dominic Bassani passed away on November 11, 2023.) and Ed Schafer (Director)(“Schafer”), adjusted/reduced the principal owed to them by $1,109,649, $1,939,670 and $424,873, respectively. Subsequent to the adjustment, the adjusted portion of the 2020 Convertible Obligations were renamed Adjusted 2020 Convertible Obligations and the adjusted portion of the September 2015 Convertible Notes were renamed Adjusted September 2015 Convertible Notes. The Adjusted 2020 Convertible Obligations of Smith, Bassani and Schafer are convertible into Units (consisting of 1 share and from one half (1/2) to one (1) warrant) at prices of $.0946, $.0953, and $.0953, respectively, and the Adjusted September 2015 Convertible Notes may be converted at the sole election of the noteholders into restricted common shares of the Company at a conversion price of $0.115 per share. The adjusted conversion prices slightly reduce the securities to be issued on conversion of each instrument from the amount receivable under the unadjusted instruments. The Adjusted 2020 Convertible Obligations and Adjusted September 2015 Convertible Notes do not accrue any interest until their maturity date (July 1, 2024). After the adjustment, the Company owed Smith, Bassani (and trust) and Schafer $262,154, $434,016 and $96,364, respectively, of Adjusted 2020 Convertible Obligations and Bassani and Schafer, respectively, $24,230 and $4,012 of Adjusted September 2015 Convertible Notes.

As of March 31, 2024, the Adjusted 2020 Convertible Obligation balances, including accrued interest, owed Bassani (and his donees), Smith and Edward Schafer were $454,819, nil 0 and $100,983, respectively. As of June 30 2023, the Adjusted 2020 Convertible Obligation balances, including accrued interest, owed Bassani (and his donees), Smith and Edward Schafer were $441,446, $130,180 and $98,014, respectively.

As of March 31, 2024 the Adjusted September 2015 Convertible Notes balances, including accrued interest, owed Bassani Family Trusts and Schafer were $25,392 and $4,204, respectively. As of June 30, 2023 the Adjusted September 2015 Convertible Notes balances, including accrued interest, owed Bassani Family Trusts and Schafer were $24,645 and $4,081, respectively.

2020 Convertible Obligations

The 2020 Convertible Obligations (which combined/replaced prior convertible instruments dating to 2017 (or earlier), which accrue interest at either 4% per annum or 4% compounded quarterly and effective January 1, 2020 are due and payable on July 1, 2024. The 2020 Convertible Obligations (including accrued interest, plus all future deferred compensation added subsequently), are convertible, at the sole election of the holder, into Units consisting of one share of the Company’s common stock and one half to one warrant to purchase a share of the Company’s common stock, at a price of $0.50 per Unit until July 1, 2024. The original conversion price of $0.50 per Unit approximated the fair value of the Units at the date of the agreements; therefore, no beneficial conversion feature exists. Management evaluated the terms and conditions of the embedded conversion features based on the guidance of ASC 815-15 “Embedded Derivatives” to determine if there was an embedded derivative requiring bifurcation. An embedded derivative instrument (such as a conversion option embedded in the deferred compensation) must be bifurcated from its host instruments and accounted for separately as a derivative instrument only if the “risks and rewards” of the embedded derivative instrument are not “clearly and closely related” to the risks and rewards of the host instrument in which it is embedded. Management concluded that the embedded conversion feature of the deferred compensation was not required to be bifurcated because the conversion feature is clearly and closely related to the host instrument, and because of the Company’s limited trading volume that indicates the feature is not readily convertible to cash in accordance with ASC 815-10, “Derivatives and Hedging”. Effective February 1, 2023, a large portion of the 2020 Convertible Obligations were adjusted as set forth herein.

As of March 31, 2024, the remaining unadjusted portion of the 2020 Convertible Obligation balances, including accrued interest, owed Bassani Family Trusts (and his donees) and Smith, were $370,829 and $119,904, respectively.

As of March 31, 2023, the remaining unadjusted portion of the 2020 Convertible Obligation balances, including accrued interest, owed Bassani Family Trusts, Smith and Schafer were $358,151, $36,072 and nil 0 , respectively.

During the nine months ended March 31, 2024, Smith elected to convert $140,951 of his Adjusted 2020 Convertible Obligation into 1,489,969 units at $0.0946 per unit, with each unit consisting of one share of the Company’s restricted common stock and one warrant to purchase one share of the Company’s restricted common stock for $0.75 per share until July 2026.

The Company recorded interest expense of $38,518 and $98,948 for the nine months ended March 31, 2024 and 2023, respectively. The Company capitalized $45,675 and $117,342 related to the Initial Project for the nine months ended March 31, 2024 and 2023, respectively.

Effective February 1, 2023, three (3) directors/officers of the Company agreed to adjust the provisions of long-term convertible obligations (including most of the 2020 Convertible Obligations and September 2015 Convertible Notes) owed to them by the Company in a manner which reduced the indebtedness of the Company by 80% (approximately $3.47 million, in aggregate) while equitably maintaining existing conversion rights. Because the modifications where with affiliates that are related parties, the debt modification was treated as an equity transaction. The Company recorded a deemed dividend for the reductions.

Mark A. Smith (the Company’s President) (“Smith”), Dominic Bassani (the Company’s Chief Operating Officer) (“Bassani”) (NOTE: Dominic Bassani passed away on November 11, 2023. See Note 10) and Ed Schafer (Director) (“Schafer”), adjusted/reduced the principal owed to them by $1,109,649, $1,939,670 and $424,873, respectively. Subsequent to the adjustment, the adjusted portion of the 2020 Convertible Obligations were renamed Adjusted 2020 Convertible Obligations (see above and Note 7.). The debt modification was treated as an equity transaction because the modifications were with affiliates that are related parties.

September 2015 Convertible Notes

During the year ended June 30, 2016, the Company entered into September 2015 Convertible Notes with Bassani, Schafer and a Shareholder which replaced previously issued promissory notes. The September 2015 Convertible Notes bear interest at 4% per annum, have maturity dates of July 1, 2024, and may be converted at the sole election of the noteholders into restricted common shares of the Company at a conversion price of $0.60 per share. As the conversion price of $0.60 approximated the fair value of the common shares at the date of the September 2015 Convertible Notes, no beneficial conversion feature exists.

The balances of the September 2015 Convertible Notes as of March 31, 2024, including accrued interest owed Bassani, Schafer and Shareholder, are $162,883, nil 0 and $472,211, respectively. As of March 31, 2023, the remaining unadjusted portion of the 2015 Convertible Notes balances including accrued interest, were $157,682, nil 0 , and $457,094, respectively.

The Company recorded interest expense of $15,238 and $18,239 for the nine months ended March 31, 2024 and 2023, respectively.

Effective February 1, 2023, three (3) directors/officers of the Company agreed to adjust the provisions of long term convertible obligations (including the September 2015 Convertible Notes owned by Bassani and Schafer) owed to them by the Company in a manner which reduced the indebtedness of the Company by 80% (approximately $3.52 million, in aggregate) while equitably maintaining existing conversion rights. Mark A. Smith (the Company’s President), Dominic Bassani (the Company’s Chief Operating Officer)(and a family Trust) and Ed Schafer (Director), adjusted/reduced the principal owed to them by $1,109,649, $1,939,670 and $424,873, respectively. Subsequent to the adjustment, the adjusted portion of the Notes were renamed Adjusted September 2015 Convertible Notes. The Adjusted September 2015 Convertible Notes may be converted at the sole election of the noteholders into restricted common shares of the Company at a conversion price of $0.115 per share. As of December 31, 2023 the Adjusted September 2015 Convertible Notes balances, including accrued interest, owed Bassani Family Trusts and Schafer were $25,143 and $4,163, respectively. The debt modification was treated as an equity transaction because the modifications were with affiliates that are related parties. See above.

Convertible Bridge Loan/Default

On September 28, 2023, the Company entered into an agreement for a $1,500,000 bridge loan and executed documents including a convertible promissory note (“Note”) and a binding subscription agreement (“Subscription”) (collectively the Note and the Subscription are the “Bridge Loan Agreements”) with SEB LLC, a non-affiliated party (“Lender”). The Bridge Loan Agreements require the Lender to loan the Company $1,500,000 in six monthly tranches of $250,000 commencing October 2023. All sums advanced under the Bridge Loan Agreements (and accrued interest thereon) would due and payable (with interest accrued at 9% per annum) on October 1, 2024 if not previously converted into securities of the Company. The Note is convertible at $1.00 per unit, at the sole election of the Lender, into units consisting of one share of the Company’s common stock and a warrant to purchase one half share. The initial $250,000 tranche was received by the Company on October 5, 2023. However, no further funds were received by the Company from the Lender. During early November 2023 the Lender informed the Company verbally that it did not intend to fulfill its obligations pursuant to the Bridge Loan Agreements and since such time the Lender has been in default (“Default”). The Default (which is continuing) has created substantial problems for and materially damaged the Company and rendered the Company unable to meet its current creditor obligations on a timely basis. The Company is currently evaluating its rights regarding the Default by the Lender. .See Notes re Bridge Loan/Default. See Notes re Bridge Loan/Default. See Note 10, Subsequent Events.

This situation has contributed to the substantial increase in the Company’s ‘Current Liabilities’ including ‘accounts payable’ over recent periods. See Consolidated Financial Statements and ‘Management’s Discussion and Analysis’. The Company has engaged in discussion/negotiation with its larger creditors (including its largest creditor--- the primary contractor on the Initial Project) but has been unable to reach agreements regarding payments due to the uncertainty as to if, when and how much funding the Company will be able to raise in future periods. As a result, the Company’s largest creditor---the general contractor for the Initial Project --- has filed a mechanics in Indiana (and its largest sub-contractor has sent notices related to its intention to file a mechanics lien) and other creditors are threatening to commence litigation and/or repossess/remove leased equipment.

The Company recorded interest expense of $11,064 and nil 0 for the nine months ended March 31, 2024 and 2023, respectively.

7. STOCKHOLDERS’ EQUITY:

Debt Modification to Additional Paid in Capital

Effective February 1, 2023, three (3) directors/officers of the Company agreed to adjust the provisions of long term convertible obligations (including most of the 2020 Convertible Obligations and September 2015 Convertible Notes --- see below) owed to them by the Company in a manner which reduced the indebtedness of the Company by 80% (approximately $3.47 million, in aggregate) while equitably maintaining existing conversion rights. Because the modifications where with affiliates that are related parties, the debt modification was treated as an equity transaction. The Company recorded a deemed dividend for the reductions.

Mark A. Smith (the Company’s President)(“Smith”), Dominic Bassani (then the Company’s Chief Operating Officer)(“Bassani”) (NOTE: Dominic Bassani passed away on November 11, 2023.) and Ed Schafer (Director)(“Schafer”), adjusted/reduced the principal owed to them by $1,109,649, $1,939,670 and $424,873, respectively. Subsequent to the adjustment, the adjusted portion of the 2020 Convertible Obligations were renamed Adjusted 2020 Convertible Obligations and the adjusted portion of the September 2015 Convertible Notes were renamed Adjusted September 2015 Convertible Notes. The Adjusted 2020 Convertible Obligations of Smith, Bassani and Schafer are convertible into Units at prices of $.0946, $.0953, and $.0953, respectively, and the Adjusted September 2015 Convertible Notes may be converted at the sole election of the noteholders into restricted common shares of the Company at a conversion price of $0.115 per share. The adjusted conversion prices slightly reduce the securities to be issued on conversion of each instrument from the amount receivable under the unadjusted instruments. The Adjusted 2020 Convertible Obligations and Adjusted September 2015 Convertible Notes do not accrue any interest until their maturity date (July 1, 2024). After the adjustment, the Company owed Smith, Bassani (and trust) and Schafer $262,154, $434,016 and $96,364, respectively, of Adjusted 2020 Convertible Obligations and Bassani and Schafer, respectively, $24,230 and $4,012 of Adjusted September 2015 Convertible Notes. The debt modification was treated as an equity transaction because the modifications were with affiliates that are related parties.

The Adjusted 2020 Convertible Obligations and Adjusted September 2015 Convertible Notes do not accrue any interest until their maturity date (July 1, 2024). The Company treated this as an equity transaction and recorded the reduction of debt through additional paid in capital at the net present value of the modified debt agreements. This resulted in an increase to Additional Paid in Capital of $3,522,000 at the modification date and a reduction of additional paid in capital of $14,051 for the year ended June 30, 2023 and $27,982 for the nine months ended March 31, 2024 for the adjustment to the net present value of the modified debt agreements.

Series B Preferred stock:

Since July 1, 2014, the Company had 200 shares of Series B redeemable convertible Preferred stock outstanding with a par value of $0.01 per share, convertible at the option of the holder at $2.00 per share, with dividends accrued and payable at 2.5% per quarter. The Series B Preferred stock is mandatorily redeemable at $100 per share by the Company three years after issuance and accordingly was classified as a liability. The 200 shares had reached their redemption date and the Company approved the redemption of the Series B preferred stock during the year ended June 30, 2022. The 200 shares of Series B redeemable convertible Preferred stock were redeemed for $41,000, which included the $21,000 in accrued dividend payable.

During the years ended June 30, 2023, and 2022, the Company declared dividends of nil 0 and $1,000 respectively. The dividends are classified as a component of operations as the Series B Preferred stock is presented as a liability in these financial statements. There is no liability at March 31, 2024.

Common stock:

Holders of common stock are entitled to one vote per share on all matters to be voted on by common stockholders. In the event of liquidation, dissolution or winding up of the Company, the holders of common stock are entitled to share in all assets remaining after liabilities have been paid in full or set aside and the rights of any outstanding preferred stock have been satisfied. Common stock has no preemptive, redemption or conversion rights. The rights of holders of common stock are subject to, and may be adversely affected by, the rights of the holders of any outstanding series of preferred stock or any series of preferred stock the Company may designate in the future.

Centerpoint holds 704,309 shares of the Company’s common stock. These shares of the Company’s common stock held by Centerpoint are for the benefit of its shareholders without any beneficial interest.

During the nine months ended March 31, 2024, the Company entered into subscription agreements to sell 565,000 units at a price of $1.00, with each unit consisting of one share of the Company’s restricted common stock and one half warrant to purchase one share of the Company’s restricted common stock for $1.25 per share with an expiry date of December 31, 2024, and pursuant thereto, the Company issued 565,000 units for total proceeds of $565,000. See ‘Warrants’ below.

During the nine months ended March 31, 2024, 38,000 warrants were exercised to purchase 38,000 shares of the Company’s common stock at $0.75 per share for total proceeds of $28,500.

During the nine months ended March 31, 2024, Smith elected to converted $140,951 of principal from his Adjusted 2020 Convertible note into 1,489,969 Units; each unit consisting of one share and one warrant with the exercise price of $.75 until July 21, 2026. Each of these warrants carry an exercise bonus of 75%.

During the nine months ended March 31, 2024, the Company issued 82,259 shares of the Company’s common stock to non-affiliate consultants for services. The shares were issued at various prices between $1.00 and $1.20 per share pursuant to the terms of the applicable for an value of $106,321 for the services provided.

During the nine months ended March 31, 2024, the Company issued 3,661 shares of the Company’s common stock upon cashless exercise of 5,000 outstanding options warrants held by an affiliate of the Company.

During the nine months ended March 31, 2024, the Company issued 3,607,165 shares of the Company’s common stock upon cashless exercise of 4,241,034 outstanding warrants held by non-affiliates of the Company.

During the nine months ended March 31, 2024, the Company issued 2,524,780 shares of the Company’s common stock upon cashless exercise of 2,927,197 outstanding warrants held by affiliates of the Company.

Warrants:

As of March 31, 2024, the Company had approximately 17.5 million warrants outstanding, with exercise prices from $0.60 to $2.40 and expiring on various dates through November 9, 2026.

The weighted-average exercise price for the outstanding warrants is $0.69, and the weighted-average remaining contractual life as of March 31, 2024 is 1 years.

During the nine months ended March 31, 2024, Smith elected to convert $140,951 of principal from his Adjusted 2020 Convertible Note into 1,489,969 Units; each unit consisting of one share and one warrant with the exercise price of $.75 until July 21, 2026. Each of these warrants carry an exercise bonus of 75%.

During the nine months ended March 31, 2024, the Company entered into subscription agreements to sell 28,589 units at a price of $1.60, with each unit consisting of one share of the Company’s restricted common stock and one half warrant to purchase one share of the Company’s restricted common stock for $2.40 per share with an expiry date of June 30, 2024, and pursuant thereto, the Company issued 28,589 units for total proceeds of $45,742. On September 26, the Company’s Board of Directors, due to a misunderstanding related to a private placement (memorandum of March 2023) and the securities sold thereunder, adjusted the units sold in the offering by substituting 1,003,590 warrants with an exercise price of $1.25 per share for 501,795 previously issued warrants effective October 1, 2023.

During the nine months ended March 31, 2024, the Company approved the modification of existing warrants held by brokers, which extended certain expiration dates. The modifications resulted in interest expense of $135,207 and non-cash compensation of $15,000.

During the nine months ended March 31, 2024, the Company issued 282,500 warrants for the subscription agreements to sell 565,000 units at a price of $1.00, with each unit consisting of one share of the Company’s restricted common stock and one half warrant to purchase one share of the Company’s restricted common stock for $1.25 per share with an expiry date of December 31, 2024, and pursuant thereto, the Company issued 565,000 units for total proceeds of $565,000.

During the nine months ended March 31, 2024, 38,000 warrants were exercised to purchase 38,000 shares of the Company’s common stock at $0.75 per share for total proceeds of $28,500.

During the nine months ended March 31, 2024, the Company issued 50,000 warrants to a consultant for services. The warrants were issued for a total value of $5,000.

During the nine months ended March 31, 2024, 223,625 warrants expired.

Effective May 1, 2022, an entity affiliated with William O’Neill (“O’Neill”) was issued 1,000,000 Incentive Warrants exercisable at $1.00 per share until April 30, 2026 of which up to 700,000 Incentive Warrants could be cancelled if O’Neill was not renewed at 13 months and/or fails to serve the entire contract term thereafter. These warrants each have a 75% exercise price adjustment provision if the terms set forth therein are met. 350,000 of the warrants vested on May 1, 2023 and 350,000 of the warrants are vesting though May 1, 2024. The vesting resulted in non-cash compensation of $9,844 for the nine months ended March 31, 2024.

Stock options:

On April 7, 2022 the Company’s shareholders approved the Bion Environmental Technologies, Inc. 2021 Equity Incentive Award Plan (the “Equity Plan”). The Equity Plan provides for the issuance of options (and/or other securities) to purchase up to 30,000,000 shares of the Company’s common stock. The Equity Plan was adopted and ratified by Board of Directors on April 8, 2022. Terms of exercise and expiration of options/securities granted under the Equity Plan may be established at the discretion of the Board of Directors, but no option may be exercisable for more than ten years. No grants have been made pursuant to the Equity Plan as of the date of this report.

The Company’s 2006 Consolidated Incentive Plan, as amended during the year ended June 30, 2021 (the “2006 Plan”), provides for the issuance of options (and/or other securities) to purchase up to 36,000,000 shares of the Company’s common stock. Terms of exercise and expiration of options/securities granted under the 2006 Plan may be established at the discretion of the Board of Directors, but no option may be exercisable for more than ten years. The 2006 Plan will be maintained to service grants already made thereunder (together with new grants, if any, to employees and consultants who already has received grants pursuant to its terms).

On March 15, 2023, the Company granted 30,000 options under the 2006 Plan to two consultants. The options vested equally in thirds on March 20, 2023, June 20, 2023 and September 30, 2023.

On May 9, 2023, the Company granted 500,000 options under the 2006 Plan to Bill O’Neill. 250,000 of these options vest on June 1, 2024 and 250,000 options vest on June 1, 2025; all options expire on June 30, 2026.

The Company recorded compensation expense related to employee stock options of $159,865 and $220,510 for the nine months ended March 31, 2024 and 2023, respectively. The Company granted nil 0 and 305,000 options for the nine months ended March 31, 2024 and 2023, respectively.

During the nine months ended March 31, 2024, the Company issued 3,661 shares of the Company’s common stock upon cashless exercise of outstanding options.

A summary of option activity under the 2006 Plan for nine months ended March 31, 2024 is as follows:

Schedule of option activity
		Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value
	Outstanding at July 1, 2023		12,006,600		$	0.85		1.83	$	5,085,659
	Granted		—			—
	Exercised		(5,000	)		—
	Forfeited		—			—
	Expired		(50,000	)		—
	Outstanding at March 31, 2024		11,951,600		$	0.85		1.08	$	1,379,033

The total fair value of stock options that vested during the nine months ended March 31, 2024 and 2023 was nil 0 and nil 0 , respectively. As of March 31, 2024, the Company had no unrecognized compensation cost related to stock options.

8. SUBSCRIPTION RECEIVABLE - AFFILIATES:

As of March 31, 2024, the Company has three interest bearing, secured promissory notes with an aggregate principal amount of $428,250 ($530,412, including interest) from Bassani which were received as consideration for purchases of warrants to purchase 5,565,000 shares, in aggregate, of the Company’s restricted common stock, which warrants have an exercise price of $0.75 (with a 75% exercise price adjustment provision) and have expiry dates ranging from December 31, 2024 to December 31, 2025 (subject to extension rights) secured by portions of Bassani Family Trust’s 2020 Convertible Obligation and Bassani Family Trust’s September 2015 Convertible Notes. The secured promissory notes are payable July 1, 2024.

As of March 31, 2024, the Company has an interest bearing, secured promissory note for $30,000 ($36,786 including interest) from Smith as consideration to purchase warrants to purchase 300,000 shares of the Company’s restricted common stock, which warrants are exercisable at $0.60 (with a 75% exercise price adjustment provision) and have expiry dates of December 31, 2024 (subject to extension rights) The promissory note bears interest at 4% per annum, and is secured by $30,000 original principal ($37,157 including interest) of Smith’s 2020 Convertible Obligations. The secured promissory note is payable on July 1, 2024.

As of March 31, 2024, the Company has two interest bearing, secured promissory notes with an aggregate principal amount of $46,400 ($58,253 including interest) from two employee/consultants as consideration to acquire warrants to purchase 928,000 shares of the Company’s restricted common stock, which warrants are exercisable at $0.75 (with a 90% exercise price adjustment provision) and have expiry dates of December 31, 2024. (The promissory notes bear interest at 4% per annum, are secured by a perfected security interest in the warrants, and are payable on July 1, 2024.

These secured promissory notes are recorded as “Subscription receivable—affiliates” on the Company’s balance sheet pending payment.

9. COMMITMENTS AND CONTINGENCIES:

A: Employment/Consulting (and related) agreements:

William O’Neill (“O’Neill”) was hired as the Company’s Chief Executive Officer (“CEO”) effective May 1, 2022. O’Neill had previously been working with the Company as a consultant and had been employed by the Company as its CEO during 2010-2011. (Upon the hiring of O’Neill, Bassani, CEO of the Company since 2011, assumed the position of COO while retaining existing operational management responsibilities and working with O’Neill on ‘commercialization’ of the Company’s technology and work related to JVs (and other transactions) based on the Company’s Gen3 Technology and related matters until his recent death. Bassani’s compensation arrangements with the Company were not altered in the context of the change of positions.) The Company and O’Neill entered into a thirty-seven (37) month employment agreement with compensation of $25,000 cash and $10,000 deferred compensation per month. The cash payment is paid $12,500 to O’Neill and $12,500 to an entity affiliated with O’Neill. An entity affiliated with O’Neill was issued 1,000,000 Incentive Warrants exercisable at $1.00 per share (a 75% exercise price adjustment provision if the terms set forth therein are met) until April 30, 2026 of which up to 700,000 Incentive Warrants may be cancelled if O’Neill is not renewed at 13 months and/or fails to serve the entire contract term thereafter. Currently O’Neill is deferring all of his monthly compensation to help the Company conserve cash. For the three months ended March 31, 2024 and 2023, O’Neill and the entity affiliated with O’Neill were paid nil 0 and $75,000, respectively, of cash compensation. For the nine months ended March 31, 2024 and 2023, O’Neill and the entity affiliated with O’Neill were paid $132,500 and $225,000, respectively, of cash compensation. O’Neill has not been paid, deferring part or all of his cash compensation, since October 31, 2023 due to the Company’s financial crisis described in multiple places herein and $110,000 has been accrued during that period.

Smith has held the positions of Director, Executive Chairman, President and General Counsel of Company and its subsidiaries under various agreements (and extensions) and terms since March 2003. On October 10, 2016, the Company approved a month-to-month contract extension with Smith which included provisions for i) a monthly salary of $18,000 ( deferred until the Board of Directors re-instated cash payments to all employees and consultants who are deferring compensation), ii) the right to convert up to $300,000 of his deferred compensation, at his sole election, at $0.75 per share, until December 31, 2024, and iii) the right to convert his deferred compensation in whole or in part, at his sole election, at any time in any amount at “market” or into securities sold in the Company’s current/most recent private offering at the price of such offering to third parties. Smith agreed effective July 29, 2018 to continue to serve the Company under the same basic terms on a month-to-month basis. On May 1, 2022 Smith’s compensation was increased to $25,000 per month of which $5,000 per month is deferred. Currently Smith is deferring all of his monthly compensation to help the Company conserve cash. For the three months ended March 31, 2024 and 2023, Smith was paid nil and $40,000, respectively, of cash compensation. For the nine months ended March 31, 2024 and 2023, Smith was paid $20,000 and $140,000, respectively, of cash compensation. Smith has not been paid, deferring part or all of his cash compensation, since October 31, 2023 due to the Company’s financial crisis described in multiple places herein and $80,000 has been accrued during that period.

From no later than March 31, 2005, the Company has had various agreements with Dominic Bassani (and/or Brightcap which provided his services during some of the years) (NOTE: Dominic Bassani passed away on November 11, 2023.) who was serving as the Company’s Chief Operating Officer (‘COO’) at the time of his passing and formerly served as the Company’s Chief Executive Officer (‘CEO’) for the prior decade (any reference to Brightcap or Bassani for all purposes are referring to the same individual). The Board appointed Bassani as the Company's CEO effective May 13, 2011. On February 10, 2015, the Company executed an Extension Agreement with Bassani pursuant to which Bassani extended the term of his service to the Company to December 31, 2017 (with the Company having an option to extend the term an additional six months.) Pursuant to the Extension Agreement, Bassani continued to defer his cash compensation ($31,000 per month) until the Board of Directors re-instated cash payments to all employees and consultants who were deferring their compensation. During October 2016 Bassani was granted the right to convert up to $125,000 of his deferred compensation, at his sole election, at $0.75 per share, until March 15, 2018 (which was expanded on April 27, 2017 to the right to convert up to $300,000 of his deferred compensation, at his sole election, at $0.75 per share, until June 30, 2024 (including extensions). During February 2018, the Company agreed to the material terms for a binding two-year extension agreement for Bassani’s services as CEO. Bassani’s salary remained $31,000 per month, which will continue to be accrued in part during periods when the Board determines there is not adequate cash available. Additionally, the Company agreed to pay or accrue $2,000 per month to be applied to life insurance premiums (which sums have been accrued as liabilities). On August 1, 2018, in the context of extending his agreement to provide services to the Company on a full-time basis through December 31, 2022) plus 2 years after that on a part-time basis, the Company received an interest bearing secured promissory note for $300,000 from Bassani as consideration to purchase warrants to purchase 3,000,000 shares of the Company’s restricted common stock, which warrants are exercisable at $0.60 and have expiry dates of June 30, 2025. The promissory note is secured by a portion of Bassani’s 2020 Convertible Obligations and as of June 30, 2023, the principal and accrued interest was $364,490. For the three months ended March 31, 2024 and 2023, Brightcap was paid nil and $75,000, respectively, of cash compensation.

Effective April 1, 2024 the Company entered into two material definitive agreements regarding voluntary surrender for cancellation of securities of the Company (and related matters) by: a) members of the family of Dominic Bassani, recently deceased former Chief Executive Officer and (with his family) the Company’s largest shareholder (collectively “Bassani Family”)(see Exhibit 10.1)(“Bassani Family Agreement”), and b) Mark A. Smith, President of the Company and a director (“MAS”)(see Exhibit 10.2)(“MAS Agreement”). The Bassani Family and MAS entered into these agreements with the intention of mitigating dilution to shareholders as new, successor management is added to the Company’s management team.

The Bassani Family has agreed to surrender not less than approximately 20% of its Company holdings (as of December 2023), which surrender will increase to approximately 30% based on certain financing performances set forth in Exhibit 10.1. The Bassani Family will elect exactly which Company securities it will surrender for cancellation on or before June 30, 2024, the Company’s fiscal year end. The Bassani Family Agreement also sets forth requirements regarding conversion of convertible notes held by members of the Bassani Family after the security surrender. See Exhibit 10.1 for the material terms of the contemplated transactions.

MAS has agreed to surrender approximately 30% of his Company holdings (as of December 2023). Immediately upon the effectiveness of the MAS Agreement, he cancelled all Company options held by him (2,425,000, in aggregate) and waived $56,250 of accrued deferred compensation (convertible into 75,000 shares of the Company’s common stock). The MAS Agreement also sets forth requirements regarding conversion of convertible notes held by MAS after the security surrender and references the planned retirement of MAS on or before May 15, 2024. See Exhibit 10.2 for the material terms of the contemplated transactions.

B: Exercise Price Adjustments/Extension Rights:

As part of agreements the Company entered into with Bassani and Smith effective May 15, 2013, they were each granted the following: a) a 50% execution/exercise price adjustment provision (exercise bonus in the context of options) which shall be applied upon the effective date of the notice of intent to exercise (for options and warrants) or issuance event, as applicable, of any currently outstanding and/or subsequently acquired options, warrants and/or contingent stock bonuses owned by each (and/or their donees) as follows: i) in the case of exercise by payment of cash, the bonus shall take the form of reduction of the exercise price; ii) in the case of cashless exercise, the adjustment shall be applied to reduce the exercise price prior to the cashless exercise calculations; and iii) with regard to contingent stock adjustments, issuance shall be triggered upon the Company’s common stock reaching a closing price equal to 50% of currently specified price; and b) the right to extend the exercise period of all or part of the applicable options and warrants for up to five years (one year at a time) by annual payments of $.05 per option or warrant to the Company on or before a date during the three months prior to expiration of the exercise period at least three business days before the end of the expiration period. Effective January 1, 2016 such annual payments to extend warrant exercise periods were reduced to $.01 per option or warrant. These exercise adjustments were subsequently increased to 75%.

During the year ended June 30, 2021, the Company added a 75% exercise price adjustment to the terms of 3,000,000 warrants held by a trust owned by Bassani.

As of March 31, 2024, exercise price adjustment provisions ranging from 50-90% were applicable to 11,771,600 of the Company’s outstanding options and 14,640,181 of the Company’s outstanding warrants.

Effective May 1, 2022, an entity affiliated with O’Neill was issued 1,000,000 Incentive Warrants exercisable at $1.00 per share until April 30, 2026 of which up to 700,000 Incentive Warrants were cancellable if O’Neill was not renewed at 13 months (renewal has happened) and/or fails to serve the entire contract term thereafter. These warrants each have a 75% exercise price adjustments if the terms set forth therein are met.

C: Initial Project:

On January 28, 2022 Bion Environmental Technologies, Inc. (‘Bion’), on behalf of Bion 3G1 LLC (‘3G1’), a wholly-owned subsidiary, entered into a Purchase Order Agreement with Buflovak and Hebeler Process Solutions (collectively ‘Buflovak’) in the amount of $2,665,500 (and made the initial 25% payment ($666,375) for the core of the ‘Bion System’ portion (without the crystallization modules which will be ordered and fabricated pursuant to subsequent agreements) of the previously announced 3G Tech Initial Project. This Purchase Order encompassed the core of Bion’s 3G Technology. The Company received progress billing in March 2022 and June 2022 for the second and third 25% installments, both of which have been paid as of the filing date. On January 17, 2023 the Company received an invoice from Buflovak for $533,100 which was paid on March 1, 2023 and on April 24, 2023 the Company received an invoice from Buflovak for $83,275 which was paid on May 2, 2023 bringing the aggregate payments to $2,615,500 as of the date of this filing. There remains $50,000 open on the Purchase Order has been billed on July 26, 2023. In addition to the Purchase Order, through March 31, 2024 the Company has incurred additional costs of $6,675,112 on the Initial Project for capitalized interest and costs, non-cash compensation, equipment and consulting fees. $7,191,021 has been paid and $1,756,285 has been billed and not yet paid.

Buflovak has worked with the Company on design and testing of its 3G Tech over several years. The basic design for the Initial Project’s Bion System is complete, fabrication and delivery of equipment from Buflovak from the Purchase Order Agreement has been largely completed and assembly/construction is in process. 3G1 is working in concert with Integrated Engineering Services, the primary site engineering firm for the facility, on the integration of all project components/modules at the Initial Project site. Additional agreements have been entered into various professional services providers (engineers, surveyors, utilities, etc.) for work related to the Initial Project. The Company has incurred costs of $8,346,895 on the Initial Project, not including capitalized labor and interest.

D: Lease:

The Company entered into an agreement on September 23, 2021, to lease approximately four acres of land near Fair Oaks, Indiana, for the development site of its Initial Project.

The future minimum lease payment under noncancelable operating lease with terms greater than one year as of March 31, 2024:


From April 2024 to December 2024	56,250
Undiscounted cash flow	56,250
Less imputed interest	(2,274	)
Total	53,976

The weighted average remaining lease term and discounted rate related to the Company’s lease liability as of March 31, 2024 were 0.75 years and 10%, respectively. The Company’s lease discount rate is generally based on the estimates of its incremental borrowing rate as the discount rates implicit in the Company’s lease cannot be readily determined.

E: Litigation (and related matters):

1) Convertible Bridge Loan/Default

On September 28, 2023 the Company entered into an agreement for a $1,500,000 bridge loan and executed documents including a convertible promissory note (“Note”) and a binding subscription agreement (“Subscription”) (collectively the Note and the Subscription are the “Bridge Loan Agreements”) with SEB LLC, a non-affiliated party (“Lender”). The Bridge Loan Agreements require the Lender to loan the Company $1,500,000 in six monthly tranches of $250,000 commencing October 2023. All sums advanced under the Bridge Loan Agreements (and accrued interest thereon) would due and payable (with interest accrued at 8% per annum) on October 1, 2024 if not previously converted into securities of the Company. The Note is convertible at $1.00 per unit, at the sole election of the Lender, into units consisting of one share of the Company’s common stock and a warrant to purchase one half share. The initial $250,000 tranche was received by the Company on October 5, 2023. However, no further funds were received by the Company from the Lender. During early November 2023 the Lender informed the Company verbally that it did not intend to fulfill its obligations pursuant to the Bridge Loan Agreements and since such time the Lender has been in default (“Default”). The Default (which is continuing) has created substantial problems for and materially damaged the Company and rendered the Company unable to meet its current creditor obligations on a timely basis. The Company is currently evaluating its rights regarding the Default by the Lender. See Note 10, Subsequent Events.

This situation has contributed to the substantial increase in the Company’s ‘Current Liabilities’ including ‘accounts payable’ over recent periods. See Consolidated Financial Statements. The Company has engaged in discussion/negotiation with its larger creditors (including its largest creditor--- the primary contractor on the Initial Project) but has been unable to reach agreements regarding payments due to the uncertainty as to if, when and how much funding the Company will be able to raise in future periods. As a result, the Company’s largest creditor---the general contractor for the Initial Project --- has filed a mechanics in Indiana (and its largest sub-contractor has sent notices related to its intention to file a mechanics lien) and other creditors are threatening to commence litigation and/or repossess/remove leased equipment.

2) Creditor Matters

As is described in the Company’s Financial Statements included herein and discussed in the Notes to the Financial Statements, the Company has had on-going difficulties raising needed funds for its operations/activities over the past 2 years which has rendered the Company unable to meet its current creditor obligations on a timely basis. This situation includes a substantial increase in the Company’s ‘Current Liabilities’ including ‘accounts payable’ over recent periods. The Company has engaged in discussion/negotiation with its larger creditors (including its largest creditor--- the primary contractor on the Initial Project) but has been unable to reach agreements regarding payments due to the uncertainty as to if, when and how much funding the Company will be able to raise in future periods. As a result, the Company’s largest creditor---the general contractor for the Initial Project --- has filed a mechanics in Indiana (and its largest sub-contractor has sent notices related to its intention to file a mechanics lien) and other creditors are threatening to commence litigation and/or repossess/remove leased equipment.

3) Website: Domain Sale/Resolved Litigation/Hacking/Theft

On March 23, 2022 the Company entered into an agreement to sell domain name <biontech.com> and other related assets to BioNTech SE (“BNTX”) for the sum of $950,000 (before expenses related to the transaction) which sale was closed/completed on April 2, 2022 with a one-time gain of $902,490. The Company has been using www.bionenviro.com as its primary website (and domain) since July 2021 due to the events described below. The Company has not been using biontech.com as its primary website since July 2021 so domain name <biontech.com> no longer represented a core asset of the Company.

As previously reported, on Saturday morning, July 17, 2021, our historical website domain – biontech.com – and email services were compromised and disabled. Research indicated that an unknown party had ‘hijacked’ the domain in a theft attempt. On September 10, 2021, the Company filed a federal lawsuit ‘in rem’ to recover the <biontech.com> domain and the unknown ‘John Doe’ who hacked and attempted to steal the website. The litigation was filed in the United States District Court for the Eastern District of Virginia, Alexandria Division under the heading ‘Bion Environmental Technologies, Inc., Plaintiff, vs John Doe and <biontech.com>, Defendants’ (Case No. 1:21-cv-01034), seeking recovery of the domain name and other relief as set forth therein.

On November 19, 2021, the United States District Court for the Eastern District of Virginia, Alexandria Division issued an order stating that “… ORDERED, ADJUDGED and Decreed that plaintiff Bion Environmental Technologies, Inc. (‘plaintiff) Is the lawful owner of domain name <biontech.com> ….” under the heading ‘Bion Environmental Technologies, Inc., Plaintiff, vs John Doe and <biontech.com>, Defendants’ (Case No. 1:21-cv-01034). The Company has moved the domain name <biontech.com> to a new registrar and reactivated it for the Company’s use (paired currently with its current bionenviro.com website).

No shareholder, sensitive or confidential information was available to be breached which has limited damages from the hack/theft to date. However, the Company’s email operations were subjected to disruption and expenses were incurred related to the matter including legal fees.

The Company created ‘work-arounds’ as a result. These issues have been resolved and the Company has moved our website (and email) to a new domain: bionenviro.com. Website access is now www.bionenviro.com. To send emails to Bion personnel, one uses the same name identifier previously used, but in the address, substitute ‘bionenviro.com’ for “biontech.com’: For example cscott@biontech.com (no longer functional) is cscott@bionenviro.com and mas@biontech.com (no longer functional) is now mas@bionenviro.com.

4) Pennvest Loan and Dissolution of Bion PA1, LLC (“PA1”)

PA1, the Company’s wholly-owned subsidiary, was dissolved on December 29, 2021 on which date it owed approximately $10,010,000 under the terms of the Pennvest Loan related to the construction of the Kreider 1 System including accrued interest and late charges totaling $2,255,802 as of that date. Through the date of the dissolution, PA1 was a wholly-owned subsidiary of the Company and its assets and liabilities were included on the Company’s consolidated balance sheet. At September 30, 2021, PA1’s total assets were $297 and its total liabilities were $10,154,334 (including the Pennvest Loan in the aggregate amount of $9,939,148, accounts payable of $214,235 and accrued liabilities of $950) which sums were included in the Company’s consolidated balance sheet in its Form 10-Q for the quarter ended September 30, 2021. Subsequent to the dissolution of PA1, its assets and liabilities are no longer consolidated and included in the Company’s consolidated balance sheet. As of December 29, 2021, PA1’s total assets were nil and its total liabilities were $10,234,501 (including the Pennvest Loan in the aggregate amount of $10,009,802, accounts payable of $212,263 and accrued liabilities of $12,436. The net amount of $10,234,501 was recognized as a gain on the legal dissolution of a subsidiary in other (income) expense.

During August 2012, the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider 1 system met the ‘technology guaranty’ standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan has been solely an obligation of PA1 since that date. Note, however, the Company’s consolidated balance sheet as of June 30, 2021 reflects the Pennvest Loan as a liability of $9,868,495 despite the fact that the obligation (if any) was solely an obligation of PA1.

PA1 has made no payments to vendors or other creditors in connection with the dissolution other than the payment to Pennvest set forth above. No distributions or payments of any kind have ever been made to the Company, the sole member of PA1 since inception, and no payment will be made to the Company or any affiliate in connection with the dissolution.

5) Bank Account Hacking

On June 23, 2023, an officer of the Company with personal accounts with Signature Bank was hacked and $75,000 was transferred from the Company’s accounts at Signature Bank to the officer’s personal accounts. The bank was notified and all Company accounts were placed on hold. Subsequently, the funds were released and transferred back to the Company prior to June 30, 2023, the end of the fiscal year, and there were no losses incurred. The Company has reviewed the authorized individuals on all accounts and further limited access after the hacking incident.

The Company currently is not involved in any other material litigation or similar events.

10. SUBSEQUENT EVENTS:

As is described in the Company’s Financial Statements included herein and discussed in the Notes to the Financial Statements above and in Item 2, Management’s Discussion and Analysis, the Company has had on-going difficulties raising needed funds for its operations/activities over the past 2 years which has rendered the Company unable to meet its current creditor obligations on a timely basis. The Company has engaged in discussion/negotiation with its larger creditors (including its largest creditor--- the primary contractor on the Initial Project) but has been unable to reach agreements regarding payments due to the uncertainty as to if, when and how much funding the Company will be able to raise in future periods. As a result, the Company’s largest creditor---the general contractor for the Initial Project --- has filed a mechanics in Indiana (and its largest sub-contractor has sent notices related to its intention to file a mechanics lien) and other creditors are threatening to commence litigation and/or repossess/remove leased equipment.

The Bassani Family has agreed to surrender not less than approximately 20% of its Company holdings (as of December 2023) which surrender will increase to approximately 30% based on certain financing performances set forth in Exhibit 10.1. The Bassani Family will elect exactly which Company securities it will surrender for cancellation on or before June 30, 2024, the Company’s fiscal year end. The Bassani Family Agreement also sets forth requirements regarding conversion of convertible notes held by members of the Bassani Family after the security surrender. See Exhibit 10.1 for the material terms of the contemplated transactions.

On May 10, 2024 the Company received $150,000 from affiliates of the Bridge Loan Lender on terms not yet finalized and included in an agreement. These funds were received in the context of negotiations/discussions regarding a potential larger investment by affiliates and/or associates of the Lender. There is no assurance that such larger transaction will be completed. The funds were used primarily to re-initiate operations at the Initial Project.

On May 13, 2024 the Board of Directors commenced a Board-led review of potential strategic alternatives to enhance Bion’s growth and maximize shareholder value. The review will include assessing approaches to optimize the Company’s multiple business opportunities through alternative capital return strategies, potential strategic or financial transactions, and developing strategic initiatives best applicable to each opportunity created by our technology in order to consider all possible paths towards maximizing value creation. No timetable has been established for the conclusion of this review and no decisions related to any further actions or potential strategic alternatives have been made at this time. There can be no assurance that the review will result in any transaction or other strategic change or outcome.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Statements made in this Form 10-Q that are not historical or current facts, which represent the Company's expectations or beliefs including, but not limited to, statements concerning the Company's operations, performance, financial condition, business strategies, and other information, involve substantial risks and uncertainties. The Company's actual results of operations, most of which are beyond the Company's control, could differ materially. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," anticipate," "estimate," or "continue" or the negative thereof. We wish to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected.

These factors include adverse economic conditions, entry of new and stronger competitors, inadequate capital and limited ability to obtain financing, needed personnel and equipment, unexpected costs, failure (or delay) to gain product certifications and/or regulatory approvals in the United States (or particular states) or foreign countries, loss (permanently or for any extended period of time) of the services of members of the Company’s small core management team (many of whom are age 70 or older) and failure to capitalize upon access to new markets. Additional risks and uncertainties that may affect forward looking statements about Bion's business and prospects include: i) the possibility that markets for nutrient reduction credits (discussed below) and/or other ways to monetize nutrient reductions and other environmental benefits will be slow to develop (or not develop at all), ii) PA1’s dissolution and its effect on how the Company is viewed, (if any), iii) the possibility that competitors will develop more comprehensive and/or less expensive environmental solutions, iv) delays in market awareness of Bion and our Systems, v) uncertainties and costs increases related to research and development efforts to update and improve Bion’s technologies and applications thereof, and/or vi) delays and/or costs exceeding expectations relating to Bion's development of the Initial Project, JVs and/or Projects and vii) failure of marketing strategies, each of which could have both immediate and long term material adverse effects by placing us behind our competitors and requiring expenditures of our limited resources.

THESE RISKS, UNCERTAINTIES AND FACTORS BEYOND OUR CONTROL ARE MAGNIFIED DURING THE CURRENT UNCERTAIN PERIOD RELATED TO THE COVID-19 PANDEMIC AND THE UNIQUE ECONOMIC, FINANCIAL, GOVERNMENTAL AND HEALTH-RELATED CONDITIONS IN WHICH THE COMPANY, THE ENTIRE COUNTRY AND THE ENTIRE WORLD NOW RESIDE. TO DATE THE COMPANY HAS EXPERIENCED DIRECT IMPACTS IN VARIOUS AREAS INCLUDING WITHOUT LIMITATION: I) GOVERNMENT-ORDERED SHUTDOWNS WHICH HAVE SLOWED THE COMPANY’S RESEARCH AND DEVELOPMENT PROJECTS AND OTHER INITIATIVES, II) SHIFTED FOCUS OF STATE AND FEDERAL GOVERNMENT WHICH IS LIKELY TO NEGATIVELY IMPACT THE COMPANY’S LEGISLATIVE INITIATIVES IN PENNSYLVANIA AND WASHINGTON DC, III) STRAINS AND UNCERTAINTIES IN BOTH THE EQUITY AND DEBT MARKETS HAVE MADE DISCUSSION AND PLANNING OF FUNDING OF THE COMPANY AND ITS INITIATIVES AND PROJECTS WITH INVESTMENT BANKERS, BANKS AND POTENTIAL STRATEGIC PARTNERS MORE TENUOUS, IV) STRAINS AND UNCERTAINTIES IN THE AGRICULTURAL SECTOR AND MARKETS HAVE MADE DISCUSSION AND PLANNING OF FUNDING OF THE COMPANY AND ITS INITIATIVES AND PROJECTS MORE DIFFICULT AS FUTURE INDUSTRY CONDITIONS ARE NOW MORE DIFFICULT TO ASSESS/PREDICT, V) CONSTRAINTS DUE TO PROBLEMS EXPERIENCED IN THE GLOBAL INDUSTRIAL SUPPLY CHAIN WHICH HAVE INCREASED ANTICIPATED PROJECT DEVELOPMENT COSTS, VI) DUE TO THE AGE AND HEALTH OF OUR CORE MANAGEMENT TEAM, MOST OF WHOM ARE AGE 70 OR OLDER AND HAVE HAD ONE OR MORE EXISTING HEALTH ISSUES, THE COVID-19 PANDEMIC PLACES THE COMPANY AT GREATER RISK THAN WAS PREVIOUSLY THE CASE (TO A HIGHER DEGREE THAN WOULD BE THE CASE IF THE COMPANY HAD A LARGER, DEEPER AND/OR YOUNGER CORE MANAGEMENT TEAM), AND VII) THERE ALMOST CERTAINLY WILL BE OTHER UNANTICIPATED CONSEQUENCES FOR THE COMPANY AS A RESULT OF THE CURRENT PANDEMIC EMERGENCY AND ITS AFTERMATH.

Bion disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

The following discussion and analysis should be read in conjunction with the Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements filed with this Report.

BUSINESS OVERVIEW AND PLAN

THE COMPANY HAS BEEN UNDER SUBSTANTIAL FINANCIAL AND MANAGEMENT STRESS OF THE PAST NINE MONTHS (AND THE CURRENT QUARTER TO DATE) DUE TO THE PASSING (FOLLOWING EXTENDED ILLNESS) OF DOMINIC BASSANI (WHO MOST RECENTLY SERVED AS OUR COO (FROM MAY 2022) AFTER SERVING AS OUR CEO FOR THE PRIOR DECADE) AND DIFFICULTIES IN RAISING NEEDED FUNDS (WHICH RE-EMERGED LATE IN THE 2023 FISCAL YEAR AND HAS CONTINUED). THE COMPANY IS FACING INCREASED CAPITAL NEEDS AND THE NEED TO TRANSITION TO A YOUNGER MANAGEMENT TEAM (MARK A. SMITH, THE COMPANY’S PRESIDENT AND GENERAL COUNSEL PROVIDED NOTICE DURING EARLY 2023 OF HIS INTENT TO PHASE OUT HIS MANAGEMENT ROLES EARLY THIS CALENDAR YEAR). THESE ITEMS HAVE BEEN PREVIOUSLY DISCLOSED BUT THE COMPANY BELIEVES IT IS IMPORTANT TO FEATURE THEM ‘UPFRONT’ AT THIS POINT.

PLEASE NOTE:

A: The Company is not currently generating any significant revenues. Further, the Company’s anticipated revenues, if any, from existing Projects, JVs and proposed Projects will not be sufficient to meet the Company’s anticipated operational and capital expenditure needs for many years. Current liabilities were approximately $4.5 million at March 31, 2024 which represents an increase of approximately $2.9 million from June 30, 2023 (largely due to an increase in ‘accounts payable and accrued expenses’ totaling approximately $2.1 million and an increase in ‘deferred compensation’ of approximately $.9 million as a result of the Company’s limited success in raising new financing (equity and/or debt) during the recent period combined with continued expenses (including those related to the Initial Project). Similarly, the cash on hand decreased from approximately $625,000 to approximately $50,000 over the same period. See NOTE 1, “Going Concern and Management’s Plans” and “Plan of Operations and Outlook” above.

B: On September 28, 2023 the Company entered into an agreement for a $1,500,000 bridge loan and executed documents including a convertible promissory note (“Note”) and a binding subscription agreement (“Subscription”) (collectively the Note and the Subscription are the “Bridge Loan Agreements”) with SEB LLC, a non-affiliated party (“Lender”). The Bridge Loan Agreements require the Lender to loan the Company $1,500,000 in six monthly tranches of $250,000 commencing October 2023. All sums advanced under the Bridge Loan Agreements (and accrued interest thereon) would due and payable (with interest accrued at 8% per annum) on October 1, 2024 if not previously converted into securities of the Company. The Note is convertible at $1.00 per unit, at the sole election of the Lender, into units consisting of one share of the Company’s common stock and a warrant to purchase one half share. The initial $250,000 tranche was received by the Company on October 5, 2023. However, no further funds were received by the Company from the Lender. During early November 2023 the Lender informed the Company verbally that it did not intend to fulfill its obligations pursuant to the Bridge Loan Agreements and since such time the Lender has been in default (“Default”). The Default (which is continuing) has created substantial problems for and materially damaged the Company and rendered the Company unable to meet its current creditor obligations on a timely basis. The Company is currently evaluating its rights regarding the Default by the Lender.

This situation has contributed to the substantial increase in the Company’s ‘Current Liabilities’ including ‘accounts payable’ over recent periods. See Consolidated Financial Statements. The Company has engaged in discussion/negotiation with its larger creditors (including its largest creditor--- the primary contractor on the Initial Project) but has been unable to reach agreements regarding payments due to the uncertainty as to if, when and how much funding the Company will be able to raise in future periods. As a result, the Company’s largest creditor---the general contractor for the Initial Project --- has filed a mechanics in Indiana (and its largest sub-contractor has sent notices related to its intention to file a mechanics lien) and other creditors are threatening to commence litigation and/or repossess/remove leased equipment.

Our business plan focused on executing multiple agreements and letters of intent related to additional sustainable beef JV projects over the next twenty-four (24) months while continuing our work at the Initial Project (see below) and commencing development of one (or more) of the Dalhart/Olson/DVG Projects (“LOI Projects”)(and/or other Gen3Tech beef JV projects) while pursuing other opportunities in the livestock industry (and related to industrial and municipal entities utilizing ADs for gas production and/or waste treatment) enabled by our Gen3Tech business model. The LOI announcements generated significant interest within the livestock industry (among ranchers, feedlot operators, farmers and other AG industry parties) and has led to and assisted our discussions with many major of the larger agriculture/livestock industry companies (including those involved with distribution and/or sales of meat products) in the country which are ongoing at this date. We believe that this interest, combined with consumer interest in ‘sustainable products’ and growing enthusiasm among some livestock industry parties for environmental/sustainable/regenerative practices, may provide Bion (and its partners/venturers) with an opportunity to move forward with a truly sustainable solution in this industry segment at a rapid pace.

During the 2023 calendar year, the Company constructed (construction is largely completed--- subject to installation of some final modules and repair/maintenance for some equipment which has broken down during operations over the last quarter) phase 1 of our Initial Project (our commercial scale demonstration facility) located near Fair Oaks, Indiana (our 3GTech Ammonia Recovery System (‘ARS’)) and begun its operations. Operating results to date at the Initial Project indicate ARS performance will exceed initial expectations for ammonia recovery and related economics. The Company recently announced that we have achieved multiple key technical objectives in the optimization of its ARS and which will support the final design process for full-scale systems (based on results to date and testing over the remainder of this calendar year) at the Initial Project. The ARS has achieved and maintained controlled steady-state operations under a variety of conditions. When operated at steady state, the system produces an ammonium distillate (solution), the base of Bion’s nitrogen fertilizer products. Bion has begun optimizing the ARS’s operating parameters with the goal of meeting and/or exceeding the results needed for Bion’s economic models for large-scale commercial projects. The Company expects the current optimization phase will continue during the current quarter (and through the balance of the year) and provide data required to support final design/engineering for commercial project modules. We believe this data will also provide additional potential stakeholders (including: a) cattle producers, cattle feeders, packers, distributors, retailers in the agricultural segment, b) operators of industrial and/or municipal facilities utilizing ADs and c) financial institutions) with the information they need to proceed with confidence in collaborating with Bion on projects. Final economic and energy efficiency models will be validated during the final design process. The Company intends to engage a third party engineering firm during the upcoming quarter to prepare a third-party evaluation of the ARS while also moving forward on final commercial design processes. Each of the initiatives/activities referenced above are subject to resolution of the financial constraints facing the Company that are described in multiple places in this document

Bion expects the Initial Project data will document the effectiveness of our Gen3Tech in a commercial-scale setting during the current year and support commencement of development of one or more Gen3Tech beef JV projects and an initial industrial/municipal project over the next year.. We do not presently know the order in which JV Projects will be developed as that decision will be made based on many factors not yet in place. We believe the Initial Project data will also provide additional potential stakeholders with the information they need to proceed with confidence in collaborating with Bion on multiple new projects.

At present, there is essentially no traceable and verifiable ‘sustainable beef’ available to the US market except for niche products. In response to consumer demand for transparency and sustainability, Bion expects the meat industry in general, and beef specifically, to evolve towards using new technologies to deliver these attributes in their products. While we anticipate a faster adoption of tracking, verification and sustainability technologies in other perishable food categories like produce and dairy due to their shorter product cycles (and related harvest and production techniques), meat industry leaders have also announced their willingness to move forward with initiatives in this area. Many companies have announced ‘sustainability’ initiatives but most appear to consist largely of ‘greenwashing’ marketing commitments rather than substantive undertakings at this date. Note, however, that Tyson’s Brazen beef initiative (which was announced during March 2023) may develop into a substantive competitive factor in the sustainable beef marketplace. Bion believes that within approximately five-six years, consumers will be able to track and verify claims including sustainability on 25% (or more) of the products merchandised in the meat department. Bion believes that the retail market share of verifiably sustainable beef in the US will approach 7-10 % within three-four (3-4 years (end of 2028) and 25% in five-six (5-6) years (end of 2029-30) (approximately 6-7,000,000 cattle annually) (and more thereafter).

Based on these industry trends, and assuming that Bion can successfully execute on its sustainable beef business plan (which is subject to many contingencies ---including raising adequate operating capital plus extremely large amounts of project financing for its JVs and the acquisition of adequate senior and operating management personnel to implement the business plan---and is not assured), we believe that facilities utilizing Bion’s Gen3Tech platform will potentially capture a significant market share in the premium market segment (and a higher portion of meat that is actually traceable and verifiably sustainable). Our goal is to have one or more sustainable beef projects under development by the end of 2025. Our first commercial project may be one of our current LOI Projects (or a different project might move to the foreground) with the target of commencing development of an initial sustainable beef project during the next year.

Additionally, the Company targets initiating one or more CAFO and/or industrial/municipal ‘bolt-on’ Gen3Tech ARS systems during the next fiscal year.

THERE IS NO ASSURANCE THAT THE COMPANY WILL REACH OR APPROACH THE GOALS/TARGETS SET FORTH ABOVE. REACHING SUCH GOALS/TARGETS WILL REQUIRE RESOLUTION OF THE COMPANY’S EXISTING FINANCIAL DIFFICULTIES AND ACCESS TO VERY LARGE AMOUNTS OF CAPITAL (EQUITY AND DEBT) AS EACH BEEF PROJECT MODULE IS PROJECTED TO COST IN EXCESS OF $50 MILLION (DEBT/EQUITY/GRANTS) TO CONSTRUCT AND WILL REQUIRE MOBILIZATION OF SUBSTANTIAL PERSONNEL, TECHNICAL RESOURCES AND MANAGEMENT SKILLS. THE COMPANY DOES NOT POSSESS EITHER THE FINANCIAL OR PERSONNEL RESOURCES INTERNALLY AND WILL NEED TO SOURCE SUCH RESOURCES FROM OUTSIDE ITSELF.

For expanded information regarding our ‘HISTORY, BACKGROUND AND CURRENT ACTIVITIES’, see discussion within the Notes (particularly Notes 1, 3, 5, 9 and 10) included in this report, in Forms 8-K and Forms 10-Q filed earlier this year and Item 1 (and other sections) in our Annual Reports on Form 10-K.

COVID-19 PANDEMIC RELATED MATTERS:

CRITICAL ACCOUNTING POLICIES

Revenue Recognition

The Company currently does not generate revenue and if and when the Company begins to generate revenue the Company will comply with the provisions of Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers”.

Stock-based compensation

The Company follows the provisions of ASC 718, which generally requires that share-based compensation transactions be accounted and recognized in the statement of income based upon their grant date fair values.

Options:

The Company has issued options to employees and consultants under its 2006 Plan to purchase common shares of the Company. Options are valued on the grant date using the Black-Scholes option-pricing model. The expected volatility is based on the historical price volatility of the Company’s common stock. The dividend yield represents the Company’s anticipated cash dividend on common stock over the expected term of the stock options. The U.S. Treasury bill rate for the expected term of the stock options was utilized to determine the risk-free interest rate. The expected term of stock options represents the period of time the stock options granted are expected to be outstanding based upon management’s estimates.

Warrants:

Lease Accounting:

The Company accounts for leases under ASC 842, Leases (“ASC 842”). Accordingly, the Company will determine whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the term of such lease is assessed based on the date on which the underlying asset is made available for the Company’s use by the lessor. The Company’s assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain of not exercising, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the consolidated statements of operations over the lease term.

THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2023

Revenue

Total revenues were nil for both the three months ended March 31, 2024 and 2023.

General and Administrative

Total general and administrative expenses were $527,000 and $859,000 for the three months ended March 31, 2024 and 2023, respectively.

Salaries and related payroll tax expenses were $148,000 and $194,000 for the three months ended March 31, 2024 and 2023, respectively. Consulting costs were $70,000 and $107,000 for the three months ended March 31, 2024 and 2023, respectively. . The $37,000 decrease in consulting costs is due to a decrease in activity with outside consultants during the third quarter in an effort to conserve cash. Investor relations expenses were $106,000 and $172,000 for the three months ended March 31, 2024 and 2023, respectively, and the $66,000 decrease was due to less investor related activity during the third quarter in order to conserve cash. Legal costs were nil and $23,000 for the three months ended March 31, 2024 and 2023, respectively.

Stock-based compensation for the three months ended March 31, 2024 and 2023 were $56,000 and $226,000, respectively.

Depreciation

Total depreciation expense was $331 and $461 for the three months ended March 31, 2024 and 2023, respectively.

Research and Development

Total research and development expenses were $6,000 and $24,000 for the three months ended March 31, 2024 and 2023, respectively, representing an $18,000 decrease was due to less consulting expense being allocated to research and development.

Salaries and related payroll tax expenses were $2,000 and $2,000 for the three months ended March 31, 2024 and 2023, respectively. Consulting costs were nil and $9,000 for the three months ended March 31, 2024 and 2023, respectively. The decrease of $9,000 was due to none of Brightcap’s consulting cost being allocated to research and development.

Loss from Operations

As a result of the factors described above, the loss from operations was $533,000 and $884,000 for the three months ended March 31, 2024 and 2023 respectively.

Other (Income)/Expense

Other expense was $5,000 and $26,000 for the three months ended March 31, 2024 and 2023, respectively.

Interest expense related to deferred compensation, loan payable and convertible notes prior to capitalization was $17,000 and $27,000 for the three months ended March 31, 2024 and 2023, respectively. The decrease of $10,000 is due to debt modifications and reduction of principal balances.

Net Loss Attributable to the Noncontrolling Interest

The net loss attributable to the noncontrolling interest was nil and nil for the three months ended March 31, 2024 and 2023, respectively.

Net Loss Attributable to Bion’s Common Stockholders

As a result of the factors described above, the net loss attributable to Bion’s stockholders was $538,000 and $858,000 for the three months ended March 31, 2024 and 2023, respectively, and the net loss per basic common share was $.01 and $.02 for the three months ended March 31, 2024 and 2023, respectively.

NINE MONTHS ENDED MARCH 31, 2024 COMPARED TO THE NINE MONTHS ENDED MARCH 31, 2023

Revenue

Total revenues were nil for both the nine months ended March 31, 2024 and 2023.

General and Administrative

Total general and administrative expenses were $1,829,000 and $2,356,000 for the nine months ended March 31, 2024 and 2023, respectively.

Salaries and related payroll tax expenses were $475,000 and $541,000 for the nine months ended March 31, 2024 and 2023, respectively. Consulting costs were $425,000 and $326,000 for the nine months ended March 31, 2024 and 2023, respectively. The $99,000 increase in consulting costs is due an increase in activity with outside consultants during the first three quarters. Investor relations expenses were $228,000 and $594,000 for the nine months ended March 31, 2024 and 2023, respectively, and the $366,000 decrease was due to less investor related activity during the first three quarters in order to conserve cash. Legal costs were $15,000 and $52,000 for the nine months ended March 31, 2024 and 2023, respectively.

Stock-based compensation for the nine months ended March 31, 2024 and 2023 were $185,000 and $407,000, respectively.

Depreciation

Total depreciation expense was $1,251 and $1,185 for the nine months ended March 31, 2024 and 2023, respectively.

Research and Development

Total research and development expenses were $22,000 and $68,000 for the nine months ended March 31, 2024 and 2023, respectively, representing a $46,000 decrease was mostly due to less consulting expense being allocated to research and development.

Salaries and related payroll tax expenses were $5,000 and $8,000 for the nine months ended March 31, 2024 and 2023, respectively. Consulting costs were $4,000 and $35,000 for the nine months ended March 31, 2024 and 2023, respectively. The decrease of $31,000 was due to a smaller portion of Brightcap’s consulting cost being allocated to research and development. Legal expenses were $11,000 and $10,000 for the nine months ended March 31, 2024 and 2023, respectively.

Loss from Operations

As a result of the factors described above, the loss from operations was $1,852,000 and $2,425,000 for the nine months ended March 31, 2024 and 2023 respectively.

Other Expense

Other expense was $150,000 and $82,000 for the nine months ended March 31, 2024 and 2023, respectively. The increase of $68,000 was a result of a greater interest expense for warrant modifications.

Interest expense related to deferred compensation, loan payable and convertible notes prior to capitalization was $49,000 and $132,000 for the nine months ended March 31, 2024 and 2023, respectively.

Net Loss Attributable to the Noncontrolling Interest

The net loss attributable to the noncontrolling interest was nil and nil for the nine months ended March 31, 2024 and 2023, respectively.

Net Loss Attributable to Bion’s Common Stockholders

As a result of the factors described above, the net loss attributable to Bion’s stockholders was $2,002,000 and $2,507,000 for the nine months ended March 31, 2024 and 2023, respectively, and the net loss per basic common share was $.04 and $.06 for the nine months ended March 31, 2024 and 2023, respectively.

LIQUIDITY AND CAPITAL RESOURCES

The Company's condensed consolidated financial statements for the nine months ended March 31, 2024 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Report of our Independent Registered Public Accounting Firm on the Company's consolidated financial statements as of and for the year ended June 30, 2023 includes a "going concern" explanatory paragraph which means that the auditors stated that conditions exist that raise substantial doubt about the Company's ability to continue as a going concern.

Operating Activities

As of March 31, 2024, the Company had cash of approximately $50,000. During the nine months ended March 31, 2024, net cash used in operating activities was $755,000, primarily consisting of cash operating expenses related to salaries and benefits, and other general and administrative costs such as insurance, legal, accounting, consulting and investor relations expenses as well as the purchase of property and equipment. Cash expenditures were offset in part by proceeds from financing activities, primarily the exercise of warrants and sale of common shares. As previously noted, the Company is currently not generating significant revenue and accordingly has not generated cash flows from operations. The Company does not anticipate generating sufficient revenues to offset operating and capital costs for a minimum of two to five years. While there are no assurances that the Company will be successful in its efforts to develop and construct its Projects and market its Systems, it is certain that the Company will require substantial funding from external sources. As stated in multiple places in this report, over the last 12 months the Company has had only very limited success in raising needed funds which lack of success has had material negative effects on the Company and its business. Given the unsettled state of the current credit and capital markets for companies such as Bion, there is no assurance the Company will be able to raise the funds it needs on reasonable terms.

Investing Activities

During the nine months ended March 31, 2024, the Company invested $690,000 in the purchase of property and equipment, primarily related to the Initial Project construction in process.

Financing Activities

During the nine months ended March 31, 2024, the Company received net cash proceeds of $590,000 from the sale of units of $611,000 less commissions of $20,000. During the nine months ended March 31, 2023, the Company received gross cash proceeds of $3,218,000 from the sale of units of $3,266,000 less commissions of $48,000. The decrease of $2,628,000 or 82% is due to the decrease in the Company’s ability to raise capital.

During the nine months ended March 31, 2024, the Company received gross cash proceeds of $250,000 from a convertible bridge loan.

As of March 31, 2024, the Company has debt obligations consisting of: a) deferred compensation of $1,433,000, b) convertible notes payable – affiliates of $1,711,000, and c) current note payable including accrued interest of $261,000

As of March 31, 2023, the Company had debt obligations of a) deferred compensation of $784,000, b) convertible notes payable – affiliates of $1,736,000, and c) current note payable including accrued interest of nil.

Plan of Operations and Outlook

As of March 31, 2024, the Company had cash of approximately $50,000.

The Company continues to explore sources of additional financing to satisfy its current operating requirements as it is not currently generating any significant revenues. During fiscal years 2023 and 2022 (as a whole), the Company faced less difficulty in raising equity funding (but was subject to substantial equity dilution from the larger amounts of equity financing during the periods) than was experienced in the prior 3 years. However, this positive trend did not continue during the last quarter of the 2023 fiscal year and the first three quarters of the current fiscal year (and the fourth quarter through the date of this report). The Company raised only raised very limited equity funds during such periods to meet its some of its immediate needs, therefore, the Company needs to raise substantial additional funds in the upcoming periods. The Company has faced substantial increases in demand for capital and operating expenditures for the fiscal year 2024 to date (and we anticipate such increased demands will continue during the remainder of the 2024 fiscal year and periods thereafter) as it moves toward commercial implementation of its 3G Tech and development of JVs (including costs associated with additions of personnel to carry out the business activities of the Company) and, therefore, is likely to continue to face, significant cash flow management issues due to limited capital resources and working capital constraints which had only recently begun to be alleviated. As a result, the Company has faced, and continues to face, significant cash flow management challenges due to material working capital constraints. To partially mitigate these working capital constraints, the Company's core senior management and some key employees and consultants have been deferring most of their cash compensation and/or are accepting compensation in the form of securities of the Company and members of the Company's senior management have from time-to-time made loans to the Company in the past and may do so in future periods. The Company continues to explore sources of additional financing (including potential agreements with strategic partners – both financial and ag-industry) to satisfy its current and future operating and capital expenditure requirements as it is not currently generating any significant revenues.

During the nine months ended March 31, 2024 and 2023 the Company received total proceeds of approximately $889,000 and $3,385,000, respectively, from the sale of its debt and equity securities for a decrease of over 80% in total proceeds raised to finance the Company’s operations. During the nine months ended March 31, 2024 the Company received proceeds of $250,000 from a convertible bridge loan but the provider of the bridge loan during November 2023 (and on an ongoing basis since such time) breached its contractual obligation/binding subscription agreement to fund an additional $1,250,000 to the Company, which breach (combined with management stresses related to the final illness and passing of Dominic Bassani, Bion’s then COO and former CEO, and required management transitions) has created substantial cash flow difficulties for the Company which are ongoing.

Going Concern and Management’s Plans:

The Company’s condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company incurred a net loss of $2,002,281 and $2,507,000 for the nine months ended March 31, 2024 and 2023, respectively. At March 31, 2024, the Company has a working deficit and a stockholders’ equity of approximately $4,644,000 and $3,355,000, respectively. The Company has never generated significant operating revenues (even though it earned a net income of $8,291,000 for the year ended June 30, 2022) and incurred a net loss of approximately ($3,189,000) during the year ended June 30, 2023. The net income for the year ended June 30, 2022 was largely due to a one-time, non-cash event of the dissolution of Bion PA-1, LLC (“PA-1”) resulting in a gain of approximately $10,235,000 as well as a one-time gain of $902,000 from the sale of the Company’s ‘biontech.com’ domain pursuant to a purchase agreement during the period. During the year ended June 30, 2023 the Company had debt modifications that resulted in a reduction of debt of $3,516,000 and an increase in equity. The Company’s lack of revenue and/or operating profits, together with the low likelihood of generating positive cash flow and/or net income during the next 12-24 months, raise substantial doubt about the Company’s ability to continue as a going concern.

Covid-19 pandemic related matters:

CONTRACTUAL OBLIGATIONS

We have the following material contractual obligations (in addition to employment and consulting agreements with management and employees):

The Company entered into an agreement on September 23, 2021, to lease approximately four acres of land near Fair Oaks, Indiana, for the development site of its Initial Project.

The future minimum lease payment under noncancelable operating lease with terms greater than one year as of March 31, 2024:


From January 2024 to December 2024	56,250
Undiscounted cash flow	56,250
Less imputed interest	(2,274	)
Total	53,976

OFF-BALANCE SHEET ARRANGEMENTS

The Company does not have any off-balance sheet arrangements (as that term is defined in Item 303 of Regulation S-K) that are reasonably likely to have a current or future material effect on our financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The term "disclosure controls and procedures" is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). This term refers to the controls and procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized, and reported within the required time periods. Our Chief Executive Officer and Principal Financial Officer have evaluated the effectiveness of the design and operations of our disclosure controls and procedures as of the end of the period covered by this quarterly report, and has concluded that, as of that date, our disclosure controls and procedures were not effective at ensuring that required information will be disclosed on a timely basis in our reports filed under the Exchange Act, as a result of the material weakness in internal control over financial reporting discussed in Item 9(A) of our Form 10-K for the year ended June 30, 2023.

(b) Changes in Internal Control over Financial Reporting.

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

The Company is not currently involved (and has not been involved in recent periods) in any litigation matters except:

A: Creditor Matters

B: Convertible Bridge Loan/Default

This situation has contributed to the substantial increase in the Company’s ‘Current Liabilities’ including ‘accounts payable’ over recent periods. See Consolidated Financial Statements. The Company has engaged in discussion/negotiation with its larger creditors (including its largest creditor--- the primary contractor on the Initial Project) but has been unable to reach agreements regarding payments due to the uncertainty as to if, when and how much funding the Company will be able to raise in future periods. As a result, the Company’s largest creditor---the general contractor for the Initial Project --- has filed a mechanics in Indiana (and its largest sub-contractor has sent notices related to its intention to file a mechanics lien) and other creditors are threatening to commence litigation and/or repossess/remove leased equipment.

C: Website: Domain Sale/Resolved Litigation/Hacking/Theft

No shareholder, sensitive or confidential information was available to be breached which has limited damages from the hack/theft to date. However, the Company’s email operations were subject to short term disruption and expenses were incurred related to the matter including legal fees.

D: Dissolution of Bion PA1, LLC (“PA1”)

PA1, the Company’s wholly-owned subsidiary, was dissolved on December 29, 2021 on which date it owed approximately $10,010,000 under the terms of the Pennvest Loan related to the construction of the Kreider 1 System including accrued interest and late charges totaling $2,255,802 as of that date. Through the date of the dissolution, PA1 was a wholly-owned subsidiary of the Company and its assets and liabilities were included on the Company’s condensed consolidated balance sheet. At September 30, 2021, PA1’s total assets were $297 and its total liabilities were $10,154,334 (including the Pennvest Loan in the aggregate amount of $9,939,148, accounts payable of $214,235 and accrued liabilities of $950) which sums were included in the Company’s condensed consolidated balance sheet in its Form 10-Q for the quarter ended September 30, 2021. Subsequent to the dissolution of PA1, its assets and liabilities are no longer consolidated and included in the Company’s balance sheet. As of December 29, 2021, PA1’s total assets were nil and its total liabilities were $10,234,501 (including the Pennvest Loan in the aggregate amount of $10,009,802, accounts payable of $212,263 and accrued liabilities of $12,436. The net amount of $10,234,501 was recognized as a gain on the legal dissolution of a subsidiary in other (income) expense.

PA1 has made no payments to vendors or other creditors in connection with the dissolution other than the payment to Pennvest described above. No distributions or payments of any kind have ever been made to the Company, the sole member of PA1, since inception and no payment will be made to the Company or any affiliate in connection with the dissolution.

E: Bank Account Hacking

On June 23, 2023, an officer of the Company with personal accounts with Signature Bank was hacked and $75,000 was transferred from the Company’s accounts at Signature Bank to the officer’s personal accounts. The bank was notified and all Company accounts at Signature Bank were placed on hold. Subsequently, the funds were released and transferred back to the Company prior to June 30, 2023, the end of the fiscal year, and there were no losses incurred. The Company has reviewed the authorized individuals on all accounts and further limited access after the hacking incident.

The Company currently is not involved in any other material litigation or similar events.

Item 1A. Risk Factors.

Not applicable

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

During the quarter ended March 31, 2024, the Company sold the following restricted securities: a) 190,000 units at $1.00 per unit consisting of one share of the Company’s restricted common stock and ½ warrant to purchase one share of the Company’s restricted common stock at $1.25 until December 31, 2024 and received gross proceeds of $190,000 and b) 522,231 shares were issued pursuant to our 2006 Consolidated Incentive Plan (“Plan”) upon the conversion of debt and c) 5,866,306 shares were issued when 6,846,677 warrants were exercised (using the “cashless exercise” provision of the warrants) and d) 25,770 shares were issued for consulting services and e) 3,661 shares were issued pursuant to our Plan when 5,000 options were exercised (using the “cashless exercise” provision of the options).

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

During the quarter ended March 31, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement”, as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits.

(a)

Exhibits required by Item 601 of Regulation S-K.

Exhibit		Incorporated by Reference			Filed/Furnished
No.	Description	Form	Exhibit	Filing Date	Herewith
10.1	Form of Bassani Family Agreement (dated April 1, 2024)	8-K	10.1	4/3/2024
10.2	Form of MAS Agreement (dated April 1, 2024)	8-K	10.2	4/3/2024
31.2*	Certification of Principal Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act				X
32.1**	Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act				X
32.2**	Certification of Principal Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act				X
101.INS*	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.				X
101.SCH*	Inline XBRL Taxonomy Extension Schema Document				X
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document				X
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document				X
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document				X
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document				X
104*	Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.				X

*	Filed herewith.

**	Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		BION ENVIRONMENTAL TECHNOLOGIES, INC.


Date: May 15, 2024	By:	*/s/ Mark A. Smith*
		Mark A. Smith, President and Chief Financial Officer (Principal Financial and Accounting Officer)



Date: May 15, 2024	By:	*/s/ William O’Neill*
		William O’Neill, Chief Executive Officer

Exhibit 31.1

SECTION 302 CERTIFICATION

I, William O’Neill, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Bion Environmental Technologies, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the of the registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 15, 2024

/s/ William O’Neill

William O’Neill

Chief Executive Officer

Exhibit 31.2

SECTION 302 CERTIFICATION

I, Mark A. Smith, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Bion Environmental Technologies, Inc.;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 15, 2024

/s/ Mark A. Smith

Mark A. Smith

Executive Chairman, President and Chief Financial Officer

Exhibit 32.1

CERTIFICATION OF CEO PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Form 10-Q of Bion Environmental Technologies, Inc., a company duly formed under the laws of Colorado (the "Company"), for the quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), William O’Neill, Chief Executive Officer of the Company, hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 15, 2024

/s/ William O’Neill

William O’Neill

Chief Executive Officer

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to Bion Environmental Technologies, Inc. and will be retained by Bion Environmental Technologies, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.2

CERTIFICATION OF CFO PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Form 10-Q of Bion Environmental Technologies, Inc., a company duly formed under the laws of Colorado (the "Company"), for the period ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Mark A. Smith, President (Executive Chairman) and Interim Chief Financial Officer (Principal Financial and Accounting Officer) of the Company, hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: May 15, 2024		/s/ Mark A. Smith
		Mark A. Smith Executive Chairman, President and Interim Chief Financial Officer

Cover - shares	9 Months Ended
Cover - shares	Mar. 31, 2024	May 01, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--06-30
Entity File Number	000-19333
Entity Registrant Name	Bion Environmental Technologies, Inc.
Entity Central Index Key	0000875729
Entity Tax Identification Number	84-1176672
Entity Incorporation, State or Country Code	CO
Entity Address, Address Line One	9 East Park Court
Entity Address, City or Town	Old Bethpage
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11804
City Area Code	516
Local Phone Number	586-5643
Title of 12(b) Security	Common Stock
Trading Symbol	BNET
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		56,522,939

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Current assets:
Cash	$ 49,735	$ 625,964
Prepaid expenses	121,282	16,785
Deposits and other assets	6,000	6,000
Total current assets	177,017	648,749
Operating lease right-of-use asset	51,572	93,875
Property and equipment, net (Note 3)	9,341,637	6,851,009
Total assets	9,570,226	7,593,633
Current liabilities:
Accounts payable and accrued expenses	2,718,841	677,136
Deferred compensation (Note 4)	1,432,678	864,781
Convertible Bridge Note Payable (Note 6)	261,064	0
Operating lease liability, current (Note 9)	53,977	75,000
Total current liabilities	4,466,560	1,616,917
Operating lease liability, long term (Note 9)	0	29,068
Convertible notes payable - affiliates (Note 6)	1,711,224	1,715,970
Total Liabilities	6,177,784	3,361,955
Equity (deficit):
Common stock, no par value, 250,000,000 shares authorized, 57,219,930 and 48,044,790 shares issued, respectively; 56,515,621 and 47,340,480 shares outstanding, respectively	0	0
Additional paid-in capital	133,098,463	131,935,418
Subscription receivable - affiliates (Note 8)	(504,650)	(504,650)
Accumulated deficit	(129,238,944)	(127,236,663)
Total Bion’s stockholders’ equity (deficit)	3,354,869	4,194,105
Noncontrolling interest	37,573	37,573
Total equity (deficit)	3,392,442	4,231,678
Total liabilities and deficit	$ 9,570,226	$ 7,593,633

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2024	Jun. 30, 2023
Statement of Financial Position [Abstract]
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	57,219,930	48,044,790
Common stock, shares outstanding	56,515,621	47,340,480

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 0	$ 0	$ 0	$ 0
Operating expenses:
General and administrative (including stock-based compensation)	526,644	859,011	1,828,917	2,356,047
Depreciation	331	461	1,251	1,185
Research and development (including stock-based compensation)	6,144	24,242	21,873	67,833
Total operating expenses	533,119	883,714	1,852,041	2,425,065
Loss from operations	(533,119)	(883,714)	(1,852,041)	(2,425,065)
Other (income) expense:
Interest income	(107)	(1,342)	(611)	(4,652)
Gain (loss) on disposal of assets	972	0	972	0
Interest expense	(4,161)	24,488	(149,879)	(86,892)
Total other expense	5,026	(25,830)	150,240	82,240
Net income (loss)	(538,145)	(857,884)	(2,002,281)	(2,507,305)
Net loss attributable to the noncontrolling interest	0	0	0	0
Net income (loss) applicable to Bion's common stockholders	$ (538,145)	$ (857,884)	$ (2,002,281)	$ (2,507,305)
Net income (loss) applicable to Bion's common stockholders per basic common share	$ (0.01)	$ (0.02)	$ (0.04)	$ (0.06)
Net income (loss) applicable to Bion's common stockholders per diluted common share	$ (0.01)	$ (0.02)	$ (0.04)	$ (0.06)
Weighted-average number of common shares outstanding, Basic	54,035,865	45,456,417	50,498,173	44,165,309
Weighted-average number of common shares outstanding, Diluted	54,035,865	45,456,417	50,498,173	44,165,309

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Subscriptions Receivable [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Jun. 30, 2022		$ 123,620,046	$ (504,650)	$ (124,047,548)	$ 37,573	$ (894,579)
Beginning balance, shares at Jun. 30, 2022	43,758,820
Sale of units		3,266,230				3,266,230
Sale of units, shares	2,921,230
Warrants exercised for common shares		119,125				119,125
Warrants exercised for common shares, shares	158,834
Issuance of units for services		80,000				80,000
Issuance of units for services, shares	50,000
Issuance of warrants for services		57,094				57,094
Conversion of debt and liabilities		149,889				149,889
Conversion of debt and liabilities, shares	1,155,906
Vesting of options for employees and services		220,510				220,510
Commissions on sale of units		(48,000)				(48,000)
Modification of warrants - non-cash		159,433				159,433
Modification of warrants - interest		68,088				68,088
Debt modification		3,516,345				3,516,345
Net loss				(2,507,305)		(2,507,305)
Ending balance, value at Mar. 31, 2023		131,208,759	(504,650)	(126,554,853)	37,573	4,186,829
Ending balance, shares at Mar. 31, 2023	48,044,790
Beginning balance, value at Dec. 31, 2022		124,627,172	(504,650)	(125,696,969)	37,573	(1,536,874)
Beginning balance, shares at Dec. 31, 2022	44,529,884
Sale of units		2,720,000				2,720,000
Sale of units, shares	2,375,000
Warrants exercised for common shares		63,000				63,000
Warrants exercised for common shares, shares	84,000
Issuance of warrants for services		9,844				9,844
Conversion of debt and liabilities		99,889				99,889
Conversion of debt and liabilities, shares	1,055,906
Vesting of options for employees and services		220,510				220,510
Commissions on sale of units		(48,000)				(48,000)
Debt modification		3,516,345				3,516,345
Net loss				(857,884)		(857,885)
Ending balance, value at Mar. 31, 2023		131,208,759	(504,650)	(126,554,853)	37,573	4,186,829
Ending balance, shares at Mar. 31, 2023	48,044,790
Beginning balance, value at Jun. 30, 2023		131,935,418	(504,650)	(127,236,663)	37,573	4,231,678
Beginning balance, shares at Jun. 30, 2023	48,880,237
Sale of units		610,742				610,742
Sale of units, shares	593,589
Warrants exercised under cashless exercise
Warrants exercised under cashless exercise, shares	6,131,945
Warrants exercised for common shares		28,500				28,500
Warrants exercised for common shares, shares	38,000
Options exercised under cashless exercise
Options exercised under cashless exercise, shares	3,661
Issuance of units for services		76,320				76,320
Issuance of warrants for services		35,000				35,000
Vesting of options for employees and services		159,865				159,865
Vesting of warrants for employees and services		9,844				9,844
Debt Modification		(27,983)				(27,983)
Conversion of debt and liabilities		140,951				140,951
Conversion of debt and liabilities, shares	1,489,969
Modification of warrants		150,206				150,206
Commission on sale of units		(20,400)				(20,400)
Net loss				(2,002,281)		(2,002,281)
Issuance of units for services, shares	82,529
Ending balance, value at Mar. 31, 2024		133,098,463	(504,650)	(129,238,944)	37,573	3,392,442
Ending balance, shares at Mar. 31, 2024	57,219,930
Beginning balance, value at Dec. 31, 2023		132,798,923	(504,650)	(128,700,799)	37,573	3,631,047
Beginning balance, shares at Dec. 31, 2023	50,611,962
Sale of units		190,000				190,000
Sale of units, shares	190,000
Warrants exercised under cashless exercise
Warrants exercised under cashless exercise, shares	5,866,306
Options exercised under cashless exercise
Options exercised under cashless exercise, shares	3,661
Issuance of units for services
Issuance of warrants for services		30,000				30,000
Issuance of warrants for services, shares	25,770
Vesting of options for employees and services		52,378				52,378
Vesting of warrants for employees and services		3,281				3,281
Debt Modification		(11,122)				(11,122)
Conversion of debt and liabilities		49,403				49,403
Conversion of debt and liabilities, shares	522,231
Modification of warrants
Commissions on sale of units		(14,400)				(14,400)
Net loss				(538,145)		(538,145)
Ending balance, value at Mar. 31, 2024		$ 133,098,463	$ (504,650)	$ (129,238,944)	$ 37,573	$ 3,392,442
Ending balance, shares at Mar. 31, 2024	57,219,930

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (2,002,281)	$ (2,507,305)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	1,251	1,185
Accrued interest on loans payable, deferred compensation and other	149,879	86,891
Stock- based compensation	184,709	220,510
Stock-based compensation for services	106,321	80,000
Modification of warrants	0	154,932
Warrants issued for compensation for services	5,000	57,094
Decrease in prepaid expenses	(104,497)	44,449
Increase (decrease) in deposits in other assets	0	(5,000)
Increase (decrease) in accounts payable and accrued expenses	285,420	(908,644)
Decrease (increase) in operating lease assets and liabilities	(7,788)	29,712
Increase in deferred compensation	626,834	265,000
Net cash used in operating activities	(755,152)	(2,481,176)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(689,919)	(2,403,644)
Net cash used in investing activities	(689,919)	(2,403,644)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of units	610,742	3,266,230
Commissions on sale of units	(20,400)	(48,000)
Proceeds from convertible bridge loan	250,000	0
Proceeds from exercise of warrants	28,500	119,125
Net cash provided by financing activities	868,842	3,337,355
Net decrease in cash	(576,229)	(1,547,465)
Cash at beginning of year	625,964	3,160,442
Cash at end of year	49,735	1,612,977
Supplemental disclosure of cash flow information:
Cash paid for interest	0	0
Non-cash investing and financing transactions:
Conversion of debt and liabilities into common units	140,951	149,888
Conversion of debt and liabilities into notes payable	0	23,943
Conversion of deferred compensation to notes payable	80,767	90,000
Capitalized interest in property and equipment	45,676	117,342
Purchase of property and equipment for accounts payable	$ 1,756,285	$ 372,844

Pay vs Performance Disclosure - USD ($)	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss) Attributable to Parent	$ (538,145)	$ (857,884)	$ (2,002,281)	$ (2,507,305)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

ORGANIZATION, NATURE OF BUSINESS, GOING CONCERN AND MANAGEMENT’S PLANS:

9 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION, NATURE OF BUSINESS, GOING CONCERN AND MANAGEMENT’S PLANS:

1. ORGANIZATION, NATURE OF BUSINESS, GOING CONCERN AND MANAGEMENT’S PLANS:

Organization and nature of business:

PLEASE NOTE:

HISTORY, BACKGROUND AND CURRENT ACTIVITIES

Going Concern and Management’s Plans:

Covid-19 pandemic related matters:

SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

2. SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation:

Bion PA1 LLC was dissolved on December 29, 2021 (See Note 5). Its operating losses are included in the consolidation through December 29, 2021.

Cash and cash equivalents:

Property and equipment:

Patents:

Stock-based compensation:

Derivative Financial Instruments:

Options:

Warrants:

Concentrations of credit risk:

Noncontrolling interests:

Fair value measurements:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 3 – assets and liabilities whose significant value drivers are unobservable.

Lease Accounting:

Revenue Recognition:

Income (Loss) per share:

The following table represents the warrants and options (as if exercised) and convertible securities (as if converted) that have been excluded from the calculation of basic income (loss) per share:


	March 31, 2024		March 31, 2023
Warrants		17,452,468		21,944,437
Options		11,951,600		11,506,600
Convertible debt		9,485,482		10,052,765

The following is a reconciliation of the denominators of the basic and diluted income (loss) per share computations for the three and nine months ended March 31, 2024 and 2023.


	Three months ended March 31, 2024			Three months ended March 31, 2023			Nine months ended March 31, 2024			Nine months ended March 31, 2023
Shares issued – beginning of period		50,611,962			44,529,884			48,880,237			43,758,820
Shares held by subsidiaries (Note 7)		(704,309	)		(704,309	)		(704,309	)		(704,309	)
Shares outstanding – beginning of period		49,907,653			43,825,575			48,175,928			43,054,511
Weighted average shares issued during the period		4,128,212			1,630,842			2,322,245			1,110,798
Diluted weighted average shares – end of period		54,035,865			45,456,417			50,498,173			44,165,309

Use of estimates:

Recent Accounting Pronouncements:

PROPERTY AND EQUIPMENT:

9 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT:

3. PROPERTY AND EQUIPMENT:

Property and equipment consist of the following:

Schedule of property and equipment
	March 31, 2024			June 30, 2023
Computers and office equipment		12,606			15,156
Initial Project: construction in process		9,340,612			6,847,760
Property and equipment, gross		9,353,218			6,862,916
Less accumulated depreciation		(11,581	)		(11,907	)
Property and equipment, net	$	9,341,637		$	6,851,009

Management has reviewed the remaining property and equipment for impairment as of March 31, 2024 and believes that no impairment exists.

Depreciation expense was $331 and $461 for the three months ended March 31, 2024 and 2023, respectively and $1,251 and $1,185 for the nine months ended March 31, 2024 and 2023, respectively.

DEFERRED COMPENSATION:

9 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

DEFERRED COMPENSATION:

4. DEFERRED COMPENSATION:

LOANS PAYABLE:

9 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

LOANS PAYABLE:

5. LOANS PAYABLE:

Pennvest Loan and Bion PA1 LLC (“PA1”) Dissolution

CONVERTIBLE NOTES PAYABLE:

9 Months Ended

Mar. 31, 2024

Convertible Notes Payable

CONVERTIBLE NOTES PAYABLE:

6. CONVERTIBLE NOTES PAYABLE:

Adjusted 2020 Convertible Obligations and Adjusted September 2015 Convertible Notes

2020 Convertible Obligations

September 2015 Convertible Notes

The Company recorded interest expense of $15,238 and $18,239 for the nine months ended March 31, 2024 and 2023, respectively.

Convertible Bridge Loan/Default

The Company recorded interest expense of $11,064 and nil 0 for the nine months ended March 31, 2024 and 2023, respectively.

STOCKHOLDERS’ EQUITY:

9 Months Ended

Mar. 31, 2024

Equity [Abstract]

STOCKHOLDERS’ EQUITY:

7. STOCKHOLDERS’ EQUITY:

Debt Modification to Additional Paid in Capital

Effective February 1, 2023, three (3) directors/officers of the Company agreed to adjust the provisions of long term convertible obligations (including most of the 2020 Convertible Obligations and September 2015 Convertible Notes --- see below) owed to them by the Company in a manner which reduced the indebtedness of the Company by 80% (approximately $3.47 million, in aggregate) while equitably maintaining existing conversion rights. Because the modifications where with affiliates that are related parties, the debt modification was treated as an equity transaction. The Company recorded a deemed dividend for the reductions.

Series B Preferred stock:

Common stock:

During the nine months ended March 31, 2024, 38,000 warrants were exercised to purchase 38,000 shares of the Company’s common stock at $0.75 per share for total proceeds of $28,500.

Warrants:

As of March 31, 2024, the Company had approximately 17.5 million warrants outstanding, with exercise prices from $0.60 to $2.40 and expiring on various dates through November 9, 2026.

The weighted-average exercise price for the outstanding warrants is $0.69, and the weighted-average remaining contractual life as of March 31, 2024 is 1 years.

During the nine months ended March 31, 2024, 38,000 warrants were exercised to purchase 38,000 shares of the Company’s common stock at $0.75 per share for total proceeds of $28,500.

During the nine months ended March 31, 2024, the Company issued 50,000 warrants to a consultant for services. The warrants were issued for a total value of $5,000.

During the nine months ended March 31, 2024, 223,625 warrants expired.

Stock options:

On March 15, 2023, the Company granted 30,000 options under the 2006 Plan to two consultants. The options vested equally in thirds on March 20, 2023, June 20, 2023 and September 30, 2023.

During the nine months ended March 31, 2024, the Company issued 3,661 shares of the Company’s common stock upon cashless exercise of outstanding options.

A summary of option activity under the 2006 Plan for nine months ended March 31, 2024 is as follows:

Schedule of option activity
		Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value
	Outstanding at July 1, 2023		12,006,600		$	0.85		1.83	$	5,085,659
	Granted		—			—
	Exercised		(5,000	)		—
	Forfeited		—			—
	Expired		(50,000	)		—
	Outstanding at March 31, 2024		11,951,600		$	0.85		1.08	$	1,379,033

SUBSCRIPTION RECEIVABLE - AFFILIATES:

9 Months Ended

Mar. 31, 2024

Subscription Receivable - Affiliates

SUBSCRIPTION RECEIVABLE - AFFILIATES:

8. SUBSCRIPTION RECEIVABLE - AFFILIATES:

These secured promissory notes are recorded as “Subscription receivable—affiliates” on the Company’s balance sheet pending payment.

COMMITMENTS AND CONTINGENCIES:

9 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES:

9. COMMITMENTS AND CONTINGENCIES:

A: Employment/Consulting (and related) agreements:

B: Exercise Price Adjustments/Extension Rights:

During the year ended June 30, 2021, the Company added a 75% exercise price adjustment to the terms of 3,000,000 warrants held by a trust owned by Bassani.

C: Initial Project:

D: Lease:

The Company entered into an agreement on September 23, 2021, to lease approximately four acres of land near Fair Oaks, Indiana, for the development site of its Initial Project.

The future minimum lease payment under noncancelable operating lease with terms greater than one year as of March 31, 2024:


From April 2024 to December 2024	56,250
Undiscounted cash flow	56,250
Less imputed interest	(2,274	)
Total	53,976

E: Litigation (and related matters):

1) Convertible Bridge Loan/Default

This situation has contributed to the substantial increase in the Company’s ‘Current Liabilities’ including ‘accounts payable’ over recent periods. See Consolidated Financial Statements. The Company has engaged in discussion/negotiation with its larger creditors (including its largest creditor--- the primary contractor on the Initial Project) but has been unable to reach agreements regarding payments due to the uncertainty as to if, when and how much funding the Company will be able to raise in future periods. As a result, the Company’s largest creditor---the general contractor for the Initial Project --- has filed a mechanics in Indiana (and its largest sub-contractor has sent notices related to its intention to file a mechanics lien) and other creditors are threatening to commence litigation and/or repossess/remove leased equipment.

2) Creditor Matters

3) Website: Domain Sale/Resolved Litigation/Hacking/Theft

4) Pennvest Loan and Dissolution of Bion PA1, LLC (“PA1”)

PA1, the Company’s wholly-owned subsidiary, was dissolved on December 29, 2021 on which date it owed approximately $10,010,000 under the terms of the Pennvest Loan related to the construction of the Kreider 1 System including accrued interest and late charges totaling $2,255,802 as of that date. Through the date of the dissolution, PA1 was a wholly-owned subsidiary of the Company and its assets and liabilities were included on the Company’s consolidated balance sheet. At September 30, 2021, PA1’s total assets were $297 and its total liabilities were $10,154,334 (including the Pennvest Loan in the aggregate amount of $9,939,148, accounts payable of $214,235 and accrued liabilities of $950) which sums were included in the Company’s consolidated balance sheet in its Form 10-Q for the quarter ended September 30, 2021. Subsequent to the dissolution of PA1, its assets and liabilities are no longer consolidated and included in the Company’s consolidated balance sheet. As of December 29, 2021, PA1’s total assets were nil and its total liabilities were $10,234,501 (including the Pennvest Loan in the aggregate amount of $10,009,802, accounts payable of $212,263 and accrued liabilities of $12,436. The net amount of $10,234,501 was recognized as a gain on the legal dissolution of a subsidiary in other (income) expense.

During August 2012, the Company provided Pennvest (and the PADEP) with data demonstrating that the Kreider 1 system met the ‘technology guaranty’ standards which were incorporated in the Pennvest financing documents and, as a result, the Pennvest Loan has been solely an obligation of PA1 since that date. Note, however, the Company’s consolidated balance sheet as of June 30, 2021 reflects the Pennvest Loan as a liability of $9,868,495 despite the fact that the obligation (if any) was solely an obligation of PA1.

5) Bank Account Hacking

The Company currently is not involved in any other material litigation or similar events.

SUBSEQUENT EVENTS:

9 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS:

10. SUBSEQUENT EVENTS:

SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Principles of consolidation:

Principles of consolidation:

Bion PA1 LLC was dissolved on December 29, 2021 (See Note 5). Its operating losses are included in the consolidation through December 29, 2021.

Cash and cash equivalents:

Cash and cash equivalents:

Property and equipment:

Property and equipment:

Patents:

Patents:

Stock-based compensation:

Stock-based compensation:

Derivative Financial Instruments:

Derivative Financial Instruments:

Options:

Options:

Warrants:

Warrants:

Concentrations of credit risk:

Concentrations of credit risk:

Noncontrolling interests:

Noncontrolling interests:

Fair value measurements:

Fair value measurements:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 3 – assets and liabilities whose significant value drivers are unobservable.

Lease Accounting:

Lease Accounting:

Revenue Recognition:

Revenue Recognition:

Income (Loss) per share:

Income (Loss) per share:

The following table represents the warrants and options (as if exercised) and convertible securities (as if converted) that have been excluded from the calculation of basic income (loss) per share:


	March 31, 2024		March 31, 2023
Warrants		17,452,468		21,944,437
Options		11,951,600		11,506,600
Convertible debt		9,485,482		10,052,765

The following is a reconciliation of the denominators of the basic and diluted income (loss) per share computations for the three and nine months ended March 31, 2024 and 2023.


	Three months ended March 31, 2024			Three months ended March 31, 2023			Nine months ended March 31, 2024			Nine months ended March 31, 2023
Shares issued – beginning of period		50,611,962			44,529,884			48,880,237			43,758,820
Shares held by subsidiaries (Note 7)		(704,309	)		(704,309	)		(704,309	)		(704,309	)
Shares outstanding – beginning of period		49,907,653			43,825,575			48,175,928			43,054,511
Weighted average shares issued during the period		4,128,212			1,630,842			2,322,245			1,110,798
Diluted weighted average shares – end of period		54,035,865			45,456,417			50,498,173			44,165,309

Use of estimates:

Use of estimates:

Recent Accounting Pronouncements:

Recent Accounting Pronouncements:

SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Schedule of warrants and option and convertible securities


	March 31, 2024		March 31, 2023
Warrants		17,452,468		21,944,437
Options		11,951,600		11,506,600
Convertible debt		9,485,482		10,052,765

Schedule of basic and diluted income (loss) per share


	Three months ended March 31, 2024			Three months ended March 31, 2023			Nine months ended March 31, 2024			Nine months ended March 31, 2023
Shares issued – beginning of period		50,611,962			44,529,884			48,880,237			43,758,820
Shares held by subsidiaries (Note 7)		(704,309	)		(704,309	)		(704,309	)		(704,309	)
Shares outstanding – beginning of period		49,907,653			43,825,575			48,175,928			43,054,511
Weighted average shares issued during the period		4,128,212			1,630,842			2,322,245			1,110,798
Diluted weighted average shares – end of period		54,035,865			45,456,417			50,498,173			44,165,309

PROPERTY AND EQUIPMENT: (Tables)

9 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

Schedule of property and equipment
	March 31, 2024			June 30, 2023
Computers and office equipment		12,606			15,156
Initial Project: construction in process		9,340,612			6,847,760
Property and equipment, gross		9,353,218			6,862,916
Less accumulated depreciation		(11,581	)		(11,907	)
Property and equipment, net	$	9,341,637		$	6,851,009

STOCKHOLDERS’ EQUITY: (Tables)

9 Months Ended

Mar. 31, 2024

Equity [Abstract]

Schedule of option activity

Schedule of option activity
		Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value
	Outstanding at July 1, 2023		12,006,600		$	0.85		1.83	$	5,085,659
	Granted		—			—
	Exercised		(5,000	)		—
	Forfeited		—			—
	Expired		(50,000	)		—
	Outstanding at March 31, 2024		11,951,600		$	0.85		1.08	$	1,379,033

COMMITMENTS AND CONTINGENCIES: (Tables)

9 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum lease payment


From April 2024 to December 2024	56,250
Undiscounted cash flow	56,250
Less imputed interest	(2,274	)
Total	53,976

ORGANIZATION, NATURE OF BUSINESS, GOING CONCERN AND MANAGEMENT’S PLANS: (Details Narrative) - USD ($)		1 Months Ended	9 Months Ended		12 Months Ended
	Oct. 05, 2023	Nov. 30, 2023	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2018	Oct. 31, 2023	Sep. 29, 2023	Sep. 28, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Current liabilities			$ 4,500,000	$ 1,600,000
Increase decrease in other current liabilities			2,800,000
Increase in deferred compensation			$ 2,000,000
Debt Instrument, Convertible, Conversion Price			$ 0.50
[custom:InitialTranche]	$ 250,000
Net loss			$ 2,002,000	2,507,000	$ 3,189,000	$ 8,291,000
Working capital deficit			4,290,000
Stockholders' equity			3,355,000
Gain in non-cash event						10,235,000
Gain on sale of domain						902,000
Increased shareholders equity			3,516,000		3,516,000
increase in accounts payable, accrued expenses and deferred compensation			2,900,000
Gross proceeds			611,000	3,266,000	4,038,000	1,737,000
Payments to exercise of warrants					$ 86,000	$ 19,000
Gross convertible loan			250,000	$ 0
Total of aggregate amount		$ 1,250,000					$ 2,404,000
Bridge Loan Agreements [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible Debt								$ 250,000	$ 1,500,000	$ 1,500,000
Debt Instrument, Interest Rate, Effective Percentage									8.00%	9.00%
Debt Instrument, Convertible, Conversion Price									$ 1.00	$ 1.00
SEB Farms LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible Debt									$ 1,500,000	$ 1,500,000
Maximum [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash			626,000
Capital required for capital adequacy			80,000,000
Minimum [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash			50,000
Capital required for capital adequacy			$ 20,000,000

SIGNIFICANT ACCOUNTING POLICIES - Antidilutive securities (Details) - shares	9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	17,452,468	21,944,437
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	11,951,600	11,506,600
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	9,485,482	10,052,765

SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share, Basic and Diluted (Details) - shares	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Accounting Policies [Abstract]
Shares issued – beginning of period	50,611,962	44,529,884	48,880,237	43,758,820
Shares held by subsidiaries (Note 7)	(704,309)	(704,309)	(704,309)	(704,309)
Shares outstanding – beginning of period	49,907,653	43,825,575	48,175,928	43,054,511
Weighted average shares issued during the period	4,128,212	1,630,842	2,322,245	1,110,798
Diluted weighted average shares – end of period	54,035,865	45,456,417	50,498,173	44,165,309

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Cash equivalents	$ 0	$ 0

PROPERTY AND EQUIPMENT - Property and equipment (Details) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 9,353,218	$ 6,862,916
Less accumulated depreciation	(11,581)	(11,907)
Property and equipment, net	9,341,637	6,851,009
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,606	15,156
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 9,340,612	$ 6,847,760

PROPERTY AND EQUIPMENT: (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
PROPERTY AND EQUIPMENT: (Details Narrative) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Line Items]
Capitalized interest			$ 257,657	$ 98,104
Non cash compensation			135,648	135,648
Depreciation expense	$ 331	$ 461	1,251	$ 1,185
Property Plant And Equipment Of P A 1 [Member]
Property, Plant and Equipment [Line Items]
Impairment of long lived assets			$ 0

DEFERRED COMPENSATION: (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
DEFERRED COMPENSATION: (Details Narrative) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2023
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Deferred compensation liability	$ 1,432,678	$ 784,255	$ 1,432,678	$ 784,255	$ 864,781
Interest Expense On Deferred Compensation Obligation [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Interest expense	8,201	6,817	21,830	19,328
Interest expense related party	6,817	4,428	19,328	12,893
Bassani [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Deferred compensation liability		410,585		410,585
Smith [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Deferred compensation liability		410,585		410,585
William O Neill [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Deferred compensation liability	322,500		322,500
Deferred compensation	322,500	110,000	322,500	110,000
Bassani [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Deferred compensation liability	$ 658,169		$ 658,169
Accrued interest rate	4.00%		4.00%
Deferred compensation consecutive trading days			10 days
Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Deferred compensation liability	$ 101,350		$ 101,350
Former employee compensation			72,500
Deferred compensation balance			$ 300,000
Deferred compensation, Price per share	$ 0.75		$ 0.75
Smith [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Accrued interest rate	4.00%		4.00%
Deferred compensation consecutive trading days			10 days
Consultants [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Deferred compensation liability	$ 278,158	$ 92,355	$ 278,158	$ 92,355

LOANS PAYABLE: (Details Narrative) - USD ($)			1 Months Ended		9 Months Ended	12 Months Ended
LOANS PAYABLE: (Details Narrative) - USD ($)	Jun. 15, 2022	Jan. 28, 2022	Jun. 30, 2022	Mar. 31, 2022	Mar. 31, 2024	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2023	Dec. 31, 2021	Dec. 29, 2021	Sep. 30, 2021	Sep. 25, 2014
Short-Term Debt [Line Items]
Total assets					$ 9,570,226			$ 7,593,633	$ 297
Total liabilities					6,177,784			3,361,955	10,154,334	$ 10,234,501
Accounts payable and accrued liabilities					2,718,841			$ 677,136	9,939,148	10,009,802
Accounts payable									214,235	212,263
Accrued liabilities, current									$ 950	12,436
Gain on legal dissolution of subsidiary					10,234,501
Debt instrument interest rate		25.00%	25.00%	25.00%
Loans as a liability							$ 9,868,495
PA 1 [Member]
Short-Term Debt [Line Items]
Total assets											$ 297
Total liabilities										10,234,501	10,154,334
Accounts payable and accrued liabilities										10,009,802	9,939,148
Accounts payable										212,263	214,235
Accrued liabilities, current										12,436	$ 950
Gain on legal dissolution of subsidiary					10,234,501
Debt instrument debt default amount												$ 8,137,117
Realized from the asset sale	$ 104,725
Pennvest Loan [Member]
Short-Term Debt [Line Items]
Construction loan					10,010,000					10,010,000
Accrued interest and late charges payable										$ 2,255,802
Repayments of loans					7,754,000
Principal payment					5,886,000
Long term debt maturity year two					846,000
Long term debt maturity year three					873,000
Long term debt maturity year four					$ 149,000
Interest expense, debt						$ 123,444	$ 246,887
Pennvest Loan [Member] \| Years One Through Five [Member]
Short-Term Debt [Line Items]
Debt instrument interest rate					2.547%
Pennvest Loan [Member] \| Years Six Through Maturity [Member]
Short-Term Debt [Line Items]
Debt instrument interest rate					3.184%

CONVERTIBLE NOTES PAYABLE: (Details Narrative) - USD ($)			9 Months Ended
	Oct. 05, 2023	Jan. 28, 2022	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Oct. 31, 2023	Sep. 29, 2023	Sep. 28, 2023	Jun. 30, 2023	Feb. 02, 2023	May 01, 2022	Jan. 01, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable, noncurrent			$ 1,711,224						$ 1,715,970
Convertible price			$ 0.50
Debt conversion value		$ 2,665,500
Capitalized amount			$ 45,675	$ 117,342
Convertible note			$ 261,064						0	$ 3,470,000
Initial tranche	$ 250,000
Convertible Bridge Loan Default [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible price								$ 1.00
Bridge loan						$ 250,000		$ 1,500,000
Interest accrued percentage								9.00%
Chief Executive Officer [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Warrants exercisable per share											$ 1.00
President [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Warrants exercisable per share			$ 0.75
SEB Farms LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Bridge loan							$ 1,500,000	$ 1,500,000
September 2015 Convertible Notes [Member] \| Convertible Debt [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Conversion price per unit			$ 0.60
Interest expense			$ 15,238	18,239
The 2020 Convertible Obligations [Member] \| Convertible Debt [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Conversion price per unit												$ 0.50
Debt instrument interest rate												4.00%
Debt instrument interest rate quarterly												4.00%
Interest expense			38,518	98,948
The 2020 Convertible Obligations [Member] \| Chief Executive Officer [Member] \| Convertible Debt [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable, noncurrent			370,829	358,151
The 2020 Convertible Obligations [Member] \| President [Member] \| Convertible Debt [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable, noncurrent			$ 119,904	36,072
The 2020 Convertible Obligations [Member] \| Executive Vice Chairman [Member] \| Convertible Debt [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable, noncurrent				0
Principal [Member] \| Convertible Obligations 2020 [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible price			$ 0.0946
Debt conversion value			$ 140,951
Debt conversion shares			1,489,969
Convertible Bridge Loan Default [Member] \| Convertible Debt [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Interest expense			$ 11,064	0
Restricted Common Shares [Member] \| September 2015 Convertible Notes [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Conversion price per unit			$ 0.115
Mark A Smith [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Principal amount			$ 1,109,649
Conversion price per unit			$ 0.0946
Dominic Bassani [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Principal amount			$ 1,939,670
Conversion price per unit			$ 0.0953
Ed Schafer [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Principal amount			$ 424,873
Conversion price per unit			$ 0.0953
Ed Schafer [Member] \| September 2015 Convertible Notes [Member] \| Chief Executive Officer [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable										4,012
Smith [Member] \| The 2020 Convertible Obligations [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable, noncurrent			$ 0						130,180
Smith [Member] \| The 2020 Convertible Obligations [Member] \| Chief Executive Officer [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable										262,154
Bassani Family Trusts [Member] \| September 2015 Convertible Notes [Member] \| Chief Executive Officer [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable					$ 25,143
Bassani Family Trusts [Member] \| The 2020 Convertible Obligations [Member] \| Chief Executive Officer [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable										434,016
Schafer [Member] \| September 2015 Convertible Notes [Member] \| Consultants [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable			0	0	$ 4,163
Schafer [Member] \| The 2020 Convertible Obligations [Member] \| Chief Executive Officer [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable										96,364
Bassani [Member] \| September 2015 Convertible Notes [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable, noncurrent			25,392						24,645
Bassani [Member] \| September 2015 Convertible Notes [Member] \| Chief Executive Officer [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable			162,883	157,682						$ 24,230
Bassani [Member] \| The 2020 Convertible Obligations [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable, noncurrent			454,819						441,446
Edward Schafer [Member] \| September 2015 Convertible Notes [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable, noncurrent			4,204						4,081
Edward Schafer [Member] \| The 2020 Convertible Obligations [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable, noncurrent			100,983						$ 98,014
Shareholder [Member] \| September 2015 Convertible Notes [Member] \| Executive Vice Chairman [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable			$ 472,211	$ 457,094

STOCKHOLDERS' EQUITY (Details) - USD ($)	9 Months Ended	12 Months Ended
STOCKHOLDERS' EQUITY (Details) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Equity [Abstract]
Options outstanding, beginning	12,006,600
Options outstanding, beginning weighted-average exercise price	$ 0.85
Outstanding, weighted-average remaining contractual life (Year)	1 year 29 days	1 year 9 months 29 days
Outstanding, aggregate intrinsic value beginning	$ 5,085,659
Granted, options	0
Granted, weighted-average exercise price	$ 0
Exercised, options	(5,000)
Exercised, weighted-average exercise price	$ 0
Forfeited, options	0
Forfeited, weighted-average exercise price	$ 0
Expired, options	(50,000)
Expired, weighted-average exercise price	$ 0
Options outstanding, ending	11,951,600	12,006,600
Options outstanding, ending weighted-average exercise price	$ 0.85	$ 0.85
Outstanding, aggregate intrinsic value ending	$ 1,379,033	$ 5,085,659

STOCKHOLDERS’ EQUITY: (Details Narrative) - USD ($)						1 Months Ended	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
STOCKHOLDERS’ EQUITY: (Details Narrative) - USD ($)	Sep. 26, 2023	May 09, 2023	Mar. 15, 2023	Jan. 28, 2022	Jul. 01, 2014	Oct. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2023	Jun. 30, 2022	Feb. 02, 2023	May 01, 2022	Apr. 07, 2022	Jun. 30, 2021	Jan. 01, 2020
Class of Stock [Line Items]
Convertible note							$ 261,064				$ 261,064		$ 0		$ 3,470,000
Increase to additional paid in capital													3,522,000
Reduction of additional paid in capital											27,982		14,051
Liability							$ 4,466,560				$ 4,466,560		$ 1,616,917
Shares Held by Subsidiaries							704,309	704,309			704,309	704,309
Class of warrant or right, exercised											38,000
Common Stock Shares Issued upon Exercise of Warrants											38,000
Total proceeds											$ 28,500
Debt conversion value				$ 2,665,500
Exercise bonus							75.00%				75.00%							75.00%
Shares issued for consultant services, value											$ 76,320
Shares issued for cashless exercise											5,000
Outstanding warrants							17,500,000				17,500,000
Weighted average exercise price							$ 0.85				$ 0.85		$ 0.85
Conversion price per share							$ 0.50				$ 0.50
Sale of warrants	1,003,590
Warrant exercise price per share	$ 1.25
Number of shares issued	501,795
Effective period	Oct. 01, 2023
Non-cash compensation											$ 184,709	$ 220,510
Warrant Exercised for Common Stock											$ 28,500
Number of shares granted											0
Fair value of stock options									$ 0	$ 0
Unrecognized compensation cost							$ 0				$ 0
Options Held [Member]
Class of Stock [Line Items]
Number of shares granted											0	305,000
Plan 2006 [Member]
Class of Stock [Line Items]
Number of shares granted		500,000	30,000
Minimum [Member]
Class of Stock [Line Items]
Warrants exercisable per share							$ 0.60				$ 0.60
Exercise bonus							50.00%				50.00%
Maximum [Member]
Class of Stock [Line Items]
Warrants exercisable per share							$ 2.40				$ 2.40
Exercise bonus							90.00%				90.00%
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares outstanding					200
Preferred stock, par value					$ 0.01
Preferred stock, convertible option per share					$ 2.00
Preferred stock dividend rate percentage					2.50%
Preferred stock, redemption price per share					$ 100
Redemption of convertible preferred stock											$ 41,000
Dividends payable							$ 21,000				21,000
Dividends, preferred stock													$ 0	$ 1,000
Liability							$ 0				$ 0
Restricted Common Stock [Member]
Class of Stock [Line Items]
Sale of stock, shares											28,589
Sale of units							$ 1.60				$ 1.60
Sell units							2.40				$ 2.40
Number of shares issued											28,589
Number of shares issued, value											$ 45,742
Restricted Common Stock 1 [Member]
Class of Stock [Line Items]
Sale of stock, shares											565,000
Sale of units							1.00				$ 1.00
Sell units							1.25				$ 1.25
Number of shares issued											565,000
Number of shares issued, value											$ 565,000
Common Stock [Member]
Class of Stock [Line Items]
Warrants exercisable per share							$ 0.75				$ 0.75
Chief Executive Officer [Member]
Class of Stock [Line Items]
Warrants exercisable per share																$ 1.00
Exercise bonus																75.00%
Number of shares issued																1,000,000
Non-cash compensation						$ 110,000	$ 0	$ 75,000			$ 132,500	$ 225,000
Cancellation of warrants																700,000
Exercise price																75.00%
Consultant Service [Member]
Class of Stock [Line Items]
Shares issued for consultant services											82,259
Shares issued for consultant services, value											$ 106,321
Shares issued for cashless exercise											3,661
Consultant Service [Member] \| Affiliate [Member]
Class of Stock [Line Items]
Shares issued for cashless exercise											3,661
Outstanding options warrants											5,000
Consultant Service [Member] \| Minimum [Member]
Class of Stock [Line Items]
Share price							$ 1.00				$ 1.00
Consultant Service [Member] \| Maximum [Member]
Class of Stock [Line Items]
Share price							1.20				1.20
September 2015 Convertible Notes [Member] \| Convertible Debt [Member]
Class of Stock [Line Items]
Conversion price per unit							0.60				$ 0.60
The 2020 Convertible Obligations [Member] \| Convertible Debt [Member]
Class of Stock [Line Items]
Conversion price per unit																			$ 0.50
The 2020 Convertible Obligations [Member] \| Common Stock [Member] \| Convertible Debt [Member]
Class of Stock [Line Items]
Debt conversion shares											1,489,969
The 2020 Convertible Obligations [Member] \| Principal [Member] \| Convertible Debt [Member]
Class of Stock [Line Items]
Debt conversion value											$ 140,951
Restricted Common Shares [Member] \| September 2015 Convertible Notes [Member]
Class of Stock [Line Items]
Conversion price per unit							0.115				$ 0.115
Warrants [Member]
Class of Stock [Line Items]
Weighted average exercise price							0.69				$ 0.69
Remaining contractual life											1 year
Interest expenses											$ 135,207
Non-cash compensation											$ 15,000
Warrants expired											223,625
Warrants [Member] \| Restricted Common Stock [Member]
Class of Stock [Line Items]
Sale of stock, shares											28,589
Sale of units							1.60				$ 1.60
Sell units							2.40				$ 2.40
Number of shares issued											28,589
Number of shares issued, value											$ 45,742
Warrants [Member] \| Restricted Common Stock [Member] \| Subscription Agreements [Member]
Class of Stock [Line Items]
Sale of stock, shares											565,000
Sale of units							1.00				$ 1.00
Sell units							$ 1.25				$ 1.25
Number of shares issued											565,000
Number of shares issued, value											$ 565,000
Warrants issued											282,500
Warrants [Member] \| Consultant Service [Member] \| Affiliate [Member]
Class of Stock [Line Items]
Shares issued for cashless exercise											2,524,780
Outstanding warrants							2,927,197				2,927,197
Warrants [Member] \| Consultant Service [Member] \| Non Affiliate [Member]
Class of Stock [Line Items]
Shares issued for cashless exercise											3,607,165
Outstanding warrants							4,241,034				4,241,034
Warrants [Member] \| Consultant Service 4 [Member]
Class of Stock [Line Items]
Shares issued for consultant services											50,000
Warrants [Member] \| Consultant Service 1 [Member]
Class of Stock [Line Items]
Shares issued for consultant services, value											$ 5,000
Warrants [Member] \| Consultants [Member]
Class of Stock [Line Items]
Warrants vested											350,000
Vesting period											May 01, 2023
Non cash compensation											$ 9,844
Warrants [Member] \| The 2020 Convertible Obligations [Member] \| Convertible Debt [Member]
Class of Stock [Line Items]
Debt conversion shares											1,489,969
Exercise bonus							75.00%				75.00%
Conversion price per share							$ 0.75				$ 0.75
Warrants [Member] \| The 2020 Convertible Obligations [Member] \| Principal [Member]
Class of Stock [Line Items]
Debt conversion value											$ 140,951
Share-Based Payment Arrangement, Option [Member]
Class of Stock [Line Items]
Stock options, authorized							36,000,000				36,000,000
Employee Benefits and Share-Based Compensation											$ 159,865	220,510
Share-Based Payment Arrangement, Option [Member] \| Equity Incentive Plan [Member]
Class of Stock [Line Items]
Stock options, authorized																	30,000,000
Mark A Smith [Member]
Class of Stock [Line Items]
Principal amount							$ 1,109,649				$ 1,109,649
Conversion price per unit							$ 0.0946				$ 0.0946
Dominic Bassani [Member]
Class of Stock [Line Items]
Principal amount							$ 1,939,670				$ 1,939,670
Conversion price per unit							$ 0.0953				$ 0.0953
Ed Schafer [Member]
Class of Stock [Line Items]
Principal amount							$ 424,873				$ 424,873
Conversion price per unit							$ 0.0953				$ 0.0953
Ed Schafer [Member] \| September 2015 Convertible Notes [Member] \| Chief Executive Officer [Member]
Class of Stock [Line Items]
Convertible notes															4,012
Smith [Member]
Class of Stock [Line Items]
Non-cash compensation							$ 40,000	40,000			$ 20,000	140,000
Smith [Member] \| The 2020 Convertible Obligations [Member] \| Chief Executive Officer [Member]
Class of Stock [Line Items]
Convertible notes															262,154
Bassani Family Trusts [Member] \| September 2015 Convertible Notes [Member] \| Chief Executive Officer [Member]
Class of Stock [Line Items]
Convertible notes									25,143
Bassani Family Trusts [Member] \| The 2020 Convertible Obligations [Member] \| Chief Executive Officer [Member]
Class of Stock [Line Items]
Convertible notes															434,016
Schafer [Member] \| September 2015 Convertible Notes [Member] \| Consultants [Member]
Class of Stock [Line Items]
Convertible notes							0	0	$ 4,163		0	0
Schafer [Member] \| The 2020 Convertible Obligations [Member] \| Chief Executive Officer [Member]
Class of Stock [Line Items]
Convertible notes															96,364
Bassani [Member] \| September 2015 Convertible Notes [Member] \| Chief Executive Officer [Member]
Class of Stock [Line Items]
Convertible notes							$ 162,883	$ 157,682			$ 162,883	$ 157,682			$ 24,230

SUBSCRIPTION RECEIVABLE - AFFILIATES: (Details Narrative)	Mar. 31, 2024 USD ($) $ / shares shares
President [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Exercise price \| $ / shares	$ 0.75
President [Member] \| Warrants Issued Subscription Receivable [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Exercise price \| $ / shares	$ 0.60
Former Employee [Member] \| Warrants Issued Subscription Receivable [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchases of warrants \| shares	928,000
Exercise price \| $ / shares	$ 0.75
Secured Promissory Note [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchases of warrants \| shares	5,565,000
Exercise price \| $ / shares	$ 0.75
Secured Promissory Note [Member] \| President [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate principal amount	$ 30,000
Notes receivable interest	$ 36,786
Financing receivable interest rate stated percentage	4.00%
Secured Promissory Note [Member] \| Smiths [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate principal amount	$ 30,000
Notes receivable interest	37,157
Secured Promissory Note [Member] \| Former Employee [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate principal amount	46,400
Notes receivable interest	$ 58,253
Financing receivable interest rate stated percentage	4.00%
Bassani [Member] \| Secured Promissory Note [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate principal amount	$ 428,250
Notes receivable interest	$ 530,412

COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
From April 2024 to December 2024	$ 56,250
Undiscounted cash flow	56,250
Less imputed interest	(2,274)
Total	$ 53,976

COMMITMENTS AND CONTINGENCIES: (Details Narrative) - USD ($)											1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 05, 2023	Jun. 23, 2023	May 02, 2023	Jan. 17, 2023	May 02, 2022	Apr. 30, 2022	Jan. 28, 2022	Aug. 01, 2018	Oct. 10, 2016	Feb. 10, 2015	Oct. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2021	Sep. 29, 2023	Sep. 28, 2023	Sep. 26, 2023	Jun. 30, 2023	May 01, 2022	Dec. 31, 2021	Dec. 29, 2021	Sep. 30, 2021	Feb. 28, 2018	Apr. 27, 2017	Oct. 31, 2016	Sep. 25, 2014
Loss Contingencies [Line Items]
Stock- based compensation																$ 184,709	$ 220,510
Compensation increased					$ 25,000
Exercise bonus														75.00%		75.00%			75.00%
Warrants held by trust owned																			3,000,000
Warrants and rights outstanding														14,640,181		14,640,181
Number of shares issued																						501,795
Debt instrument paid amount							$ 2,665,500
Debt instrument, interest rate							25.00%					25.00%	25.00%
Principal, interest				$ 533,100			$ 666,375
Paid invoice amount			$ 83,275
Aggregate payment			$ 2,615,500
Purchase order						$ 50,000
Capitalized labour and interest costs																$ 6,675,112
Capitalized labour and interest costs paid																7,191,021
Capitalized labour and interest costs yet to pay																1,756,285
Interests costs incurred capitalized																$ 8,346,895
Convertible price														$ 0.50		$ 0.50
Initial tranche	$ 250,000
Sale of domain, description																the Company entered into an agreement to sell domain name <biontech.com> and other related assets to BioNTech SE (“BNTX”) for the sum of $950,000 (before expenses related to the transaction) which sale was closed/completed on April 2, 2022 with a one-time gain of $902,490.
Accrued interest																										$ 2,255,802
Total assets														$ 9,570,226		$ 9,570,226							$ 7,593,633		$ 297
Total liabilities														6,177,784		6,177,784							3,361,955		10,154,334	10,234,501
Accounts payable and accrued liabilities														2,718,841		2,718,841							677,136		9,939,148	10,009,802
Accounts payable																									214,235	212,263
Accrued liabilities, current																									$ 950	12,436
Gain on legal dissolution of subsidiary																10,234,501
Loans as a liability																			$ 9,868,495
Bank account hacked amount		$ 75,000
PA 1 [Member]
Loss Contingencies [Line Items]
Total assets																											$ 297
Total liabilities																										10,234,501	10,154,334
Accounts payable and accrued liabilities																										10,009,802	9,939,148
Accounts payable																										212,263	214,235
Accrued liabilities, current																										12,436	$ 950
Gain on legal dissolution of subsidiary																10,234,501
Principal amount																															$ 8,137,117
Pennvest Loan [Member]
Loss Contingencies [Line Items]
Construction loan														10,010,000		10,010,000										$ 10,010,000
Line of credit facility, maximum borrowing capacity														7,754,000		7,754,000
Principal payment														5,886,000		5,886,000
Long-Term debt, maturity, year two														846,000		846,000
Long-Term debt, maturity, year three														873,000		873,000
Long-Term debt, maturity, year four														$ 149,000		$ 149,000
Interest expense, debt																		$ 123,444	$ 246,887
Pennvest Loan [Member] \| Years One Through Five [Member]
Loss Contingencies [Line Items]
Debt instrument, interest rate																2.547%
Pennvest Loan [Member] \| Years Six Through Maturity [Member]
Loss Contingencies [Line Items]
Debt instrument, interest rate																3.184%
Minimum [Member]
Loss Contingencies [Line Items]
Warrants exercisable per share														$ 0.60		$ 0.60
Exercise bonus														50.00%		50.00%
Maximum [Member]
Loss Contingencies [Line Items]
Warrants exercisable per share														$ 2.40		$ 2.40
Exercise bonus														90.00%		90.00%
MAS Agreement [Member]
Loss Contingencies [Line Items]
Options cancelled																2,425,000
Accrued deferred compensation														$ 56,250		$ 56,250
Conversion of stock, shares																75,000
Bridge Loan Agreements [Member]
Loss Contingencies [Line Items]
Bridge loan											$ 250,000									$ 1,500,000	$ 1,500,000
Interest accrued percentage																				8.00%	9.00%
Convertible price																				$ 1.00	$ 1.00
William O Neill [Member]
Loss Contingencies [Line Items]
Payment for cash																$ 12,500
Smith [Member]
Loss Contingencies [Line Items]
Stock- based compensation														40,000	$ 40,000	20,000	140,000
Chief Executive Officer [Member]
Loss Contingencies [Line Items]
Monthly officers cash compensation										$ 31,000						25,000
Deferred compensation														10,000		10,000
Stock- based compensation											110,000			0	75,000	$ 132,500	$ 225,000
Warrants exercisable per share																								$ 1.00
Exercise bonus																								75.00%
Number of shares issued																								1,000,000
Cancellation of warrants																								700,000
Chief Executive Officer [Member] \| Secured Promissory Note Consideration For Warrants Expiring On December 312025 [Member]
Loss Contingencies [Line Items]
Principal and accrued interest																							$ 364,490
Repayments of compensation														$ 75,000	$ 75,000
Chief Executive Officer [Member] \| Warrants Expiring On December 312025 [Member]
Loss Contingencies [Line Items]
Warrants purchase								3,000,000
President [Member]
Loss Contingencies [Line Items]
Monthly officers cash compensation									$ 18,000
Stock- based compensation											$ 80,000
Warrants exercisable per share														$ 0.75		$ 0.75
President [Member] \| Extension Bonus [Member] \| Fy 2016 Extension Agreement [Member]
Loss Contingencies [Line Items]
Deferred compensation																													$ 300,000	$ 125,000
Deferred compensation, price per share																													$ 0.75	$ 0.75
President [Member] \| Warrants Issused Subscription Receivable [Member]
Loss Contingencies [Line Items]
Warrants purchase														300,000		300,000
President [Member] \| Warrants Issued In Connection With Sale Of Units In Exchange For Salary [Member]
Loss Contingencies [Line Items]
Warrants exercisable per share														$ 0.75		$ 0.75
Bassani [Member]
Loss Contingencies [Line Items]
Salaries and wages																												$ 31,000
Additional paid amount																												$ 2,000
Interest bearing secured promissory note								$ 300,000
SEB Farms LLC [Member]
Loss Contingencies [Line Items]
Bridge loan																				$ 1,500,000	$ 1,500,000

SUBSEQUENT EVENTS: (Details Narrative) - Subsequent Event [Member]	Apr. 02, 2024 USD ($) shares
Subsequent Event [Line Items]
Options cancelled	2,425,000
Accrued deferred compensation \| $	$ 56,250
Conversion of stock, shares	75,000

Bion Environmental Techn... (QB) (USOTC:BNET)
Historical Stock Chart
From Feb 2025 to Mar 2025

Click Here for more Bion Environmental Techn... (QB) Charts.

Bion Environmental Techn... (QB) (USOTC:BNET)
Historical Stock Chart
From Mar 2024 to Mar 2025

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

BNET Bion Environmental Technologies Inc (QB)

Bion Environmental Technologies Inc (QB) News

Your Recent History

Company

Business

Popular

Get The App

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

BNET Bion Environmental Technologies Inc (QB)

Bion Environmental Technologies Inc (QB) News

Your Recent History

Company

Business

Popular

Get The App

Go Ad-Free