Document_and_Entity_Informatio
Document and Entity Information (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Feb. 04, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'TRIO TECH INTERNATIONAL | ' |
Entity Central Index Key | '0000732026 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | ' | $3,508 |
Entity Common Stock, Shares Outstanding | ' | 3,508,055 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash & cash equivalents | $2,574 | $2,793 |
Short-term deposits | 100 | 104 |
Trade accounts receivable, net of allowance for doubtful accounts of $148 and $139 | 9,223 | 8,728 |
Other receivables | 326 | 993 |
Loans receivable from property development projects, less allowance for doubtful accounts of $330 and nil | 826 | 1,139 |
Inventories, less provision for obsolete inventory of $865 and $912 | 1,314 | 2,463 |
Prepaid expenses and other current assets | 445 | 358 |
Assets held for sale | ' | ' |
Total current assets | 14,808 | 16,578 |
INVESTMENTS | ' | 791 |
INVESTMENT PROPERTIES, Net | 1,861 | 1,893 |
PROPERTY, PLANT AND EQUIPMENT, Net | 13,184 | 12,851 |
OTHER ASSETS | 1,353 | 437 |
RESTRICTED TERM DEPOSITS | 3,490 | 3,494 |
TOTAL ASSETS | 34,696 | 36,044 |
LIABILITIES | ' | ' |
Lines of credit | 3,336 | 3,864 |
Accounts payable | 4,342 | 4,136 |
Accrued expenses | 2,539 | 3,060 |
Income taxes payable | 468 | 459 |
Current portion of bank loans payable | 717 | 770 |
Current portion of capital leases | 84 | 105 |
Total current liabilities | 11,486 | 12,394 |
BANK LOANS PAYABLE, net of current portion | 2,207 | 2,613 |
CAPITAL LEASES, net of current portion | 236 | 228 |
DEFERRED TAX LIABILITIES | 165 | 191 |
OTHER NON-CURRENT LIABILITIES | 38 | 12 |
TOTAL LIABILITIES | 14,132 | 15,438 |
COMMITMENT AND CONTINGENCIES | ' | ' |
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: | ' | ' |
Common stock, no par value, 15,000,000 shares authorized; 3,508,055 and 3,321,555 shares issued and outstanding as at December 31, 2013 and June 30, 2013, respectively | 10,873 | 10,531 |
Paid-in capital | 2,956 | 2,756 |
Accumulated retained earnings | 1,286 | 1,668 |
Accumulated other comprehensive gain-translation adjustments | 3,639 | 3,680 |
Total Trio-Tech International shareholders' equity | 18,754 | 18,635 |
NON-CONTROLLING INTEREST | 1,810 | 1,971 |
TOTAL EQUITY | 20,564 | 20,606 |
TOTAL LIABILITIES AND EQUITY | $34,696 | $36,044 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $148,000 | $139,000 |
Loan receivables, allowance for doubtful accounts | 330,000 | 0 |
Provision for obsolete inventory | $865,000 | $912,000 |
Common stock, Authorized | 15,000,000 | 15,000,000 |
Common stock, Issued | 3,508,055 | 3,321,555 |
Common stock, outstanding | 3,508,055 | 3,321,555 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenue | ' | ' | ' | ' |
Products | $4,696,000 | $3,419,000 | $10,101,000 | $9,055,000 |
Testing Services | 4,597,000 | 3,769,000 | 8,645,000 | 7,678,000 |
Others | 46,000 | 33,000 | 90,000 | 63,000 |
Total | 9,339,000 | 7,221,000 | 18,836,000 | 16,796,000 |
Cost of Sales | ' | ' | ' | ' |
Cost of products sold | 4,064,000 | 2,799,000 | 8,410,000 | 7,825,000 |
Cost of testing services rendered | 3,253,000 | 2,842,000 | 6,278,000 | 5,519,000 |
Others | 35,000 | 32,000 | 70,000 | 65,000 |
Total | 7,352,000 | 5,673,000 | 14,758,000 | 13,409,000 |
Gross Margin | 1,987,000 | 1,548,000 | 4,078,000 | 3,387,000 |
Operating Expenses | ' | ' | ' | ' |
General and administrative | 1,838,000 | 1,664,000 | 3,672,000 | 3,416,000 |
Selling | 208,000 | 126,000 | 413,000 | 253,000 |
Research and development | 49,000 | 72,000 | 101,000 | 145,000 |
(Gain) / loss on disposal of property, plant and equipment | -2,000 | ' | 11,000 | -3,000 |
Total operating expenses | 2,093,000 | 1,862,000 | 4,197,000 | 3,811,000 |
Loss from Operations | -106,000 | -314,000 | -119,000 | -424,000 |
Other Income / (Expenses) | ' | ' | ' | ' |
Interest expenses | -66,000 | -76,000 | -134,000 | -154,000 |
Other (expenses) / income, net | -205,000 | 56,000 | -41,000 | 310,000 |
Total otherB income / (expenses) | -271,000 | -20,000 | -175,000 | 156,000 |
Income from Continuing Operations before Income Taxes | -377,000 | -334,000 | -294,000 | -268,000 |
Income Tax Benefits / (Expenses) | 39,000 | -2,000 | 82,000 | 122,000 |
Loss from continuing operations before non-controlling interest, net of tax | -338,000 | -336,000 | -212,000 | -146,000 |
Equity in loss of unconsolidated joint venture, net of tax | ' | ' | ' | ' |
Discontinued Operations (Note 16) | ' | ' | ' | ' |
Loss from discontinued operations, net of tax | -30,000 | -258,000 | -72,000 | -489,000 |
NET LOSS | -368,000 | -594,000 | -284,000 | -635,000 |
Less: net income/ (loss) attributable to the non-controlling interest | -3,000 | -88,000 | 98,000 | -112,000 |
Net Loss Attributable to Trio-Tech International Common Shareholders | -365,000 | -506,000 | -382,000 | -523,000 |
Amounts Attributable to Trio-Tech International Common Shareholders: | ' | ' | ' | ' |
Loss from continuing operations, net of tax | -348,000 | -374,000 | -342,000 | -281,000 |
Loss from discontinued operations, net of tax | -17,000 | -132,000 | -40,000 | -242,000 |
Net Loss Attributable to Trio-Tech International Common Shareholders | -365,000 | -506,000 | -382,000 | -523,000 |
Comprehensive Income / (Loss) Attributable to Trio-Tech International Common Shareholders: | ' | ' | ' | ' |
Net loss | -368,000 | -594,000 | -284,000 | -635,000 |
Foreign currency translation, net of tax | 39,000 | 161,000 | -144,000 | 716,000 |
Comprehensive (Loss) / Income | -329,000 | -433,000 | -428,000 | 81,000 |
Less: Comprehensive (loss) / income attributable to the non-controlling interest | -1,000 | -46,000 | -5,000 | 52,000 |
Comprehensive Income / (Loss) Attributable to Trio-Tech International Common Shareholders | ($328,000) | ($387,000) | ($423,000) | $29,000 |
Basic and Diluted Loss per Share: | ' | ' | ' | ' |
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International | ($0.10) | ($0.12) | ($0.10) | ($0.09) |
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | ' | ($0.03) | ($0.01) | ($0.07) |
Basic and Diluted Loss per Share from Net Loss Attributable to Trio-Tech International | ($0.10) | ($0.15) | ($0.11) | ($0.16) |
Weighted average number of common shares outstanding Basic | 3,508 | 3,322 | 3,508 | 3,322 |
Dilutive effect of stock options | ' | ' | ' | ' |
Number of shares used to compute earnings per share diluted | 3,508 | 3,322 | 3,508 | 3,322 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-In Capital | Accumulated Retained Earnings | Other Comprehensive Income | Noncontrolling Interest | Total |
In Thousands, except Share data | ||||||
Beginning Balance, Amount at Jun. 30, 2012 | $10,531 | $2,431 | $2,687 | $3,187 | $1,720 | $20,556 |
Beginning Balance, Shares at Jun. 30, 2012 | 3,322 | ' | ' | ' | ' | ' |
Stock option expenses | ' | 42 | ' | ' | ' | 42 |
Net (loss) Income | ' | ' | -1,019 | ' | -83 | -1,102 |
Translation adjustment | ' | ' | ' | 493 | 141 | 634 |
Dividends declared by subsidiary | ' | ' | ' | ' | -39 | -39 |
Contributions to capital by related party - loan forgiveness | ' | 283 | ' | ' | 232 | 515 |
Ending Balance, Amount at Jun. 30, 2013 | 10,531 | 2,756 | 1,668 | 3,680 | 1,971 | 20,606 |
Ending Balance, Shares at Jun. 30, 2013 | 3,322 | ' | ' | ' | ' | ' |
Stock option expenses | ' | 200 | ' | ' | ' | ' |
Net (loss) Income | ' | ' | -382 | ' | 98 | -284 |
Translation adjustment | ' | ' | ' | -41 | -103 | ' |
Dividends declared by subsidiary | ' | ' | ' | ' | -156 | -156 |
Contributions to capital by related party - loan forgiveness | ' | ' | ' | ' | ' | ' |
Stock Options Exercised, amount | 342 | ' | ' | ' | ' | 342 |
Stock Options Exercised, Shares | 186 | ' | ' | ' | ' | ' |
Ending Balance, Amount at Dec. 31, 2013 | $10,873 | $2,956 | $1,286 | $3,639 | $1,810 | $20,564 |
Ending Balance, Shares at Dec. 31, 2013 | 3,508 | ' | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
Cash Flow from Operating Activities | ' | ' | ' |
Net loss | ($284) | ($635) | ($1,102) |
Depreciation and amortization | 1,198 | 1,266 | ' |
Bad debt (reversal) / expense, net | 337 | 20 | ' |
Inventory provision | -47 | -15 | ' |
Warranty expense, net | 3 | 3 | ' |
Accrued interest expense, net of interest income | 5 | 24 | ' |
(Gain) / Loss on sale of property-continued operations | 11 | -3 | ' |
Stock option expenses | 200 | 19 | ' |
Deferred tax provision | -23 | -158 | ' |
Changes in operating assets and liabilities, net of acquisition effects | ' | ' | ' |
Accounts receivables | -504 | 4,591 | ' |
Other receivables | 1,462 | 410 | ' |
Other assets | -916 | 181 | ' |
Inventories | 1,192 | 173 | ' |
Prepaid expenses and other current assets | -87 | 5 | ' |
Accounts payable and accrued liabilities | -380 | -2,222 | ' |
Income tax payable | 8 | 15 | ' |
Other non-current liabilities | 26 | -28 | ' |
Net Cash Provided by Operating Activities | 2,201 | 3,646 | ' |
Cash Flow from Investing Activities | ' | ' | ' |
Proceeds from maturing of unrestricted and restricted term deposits, net | ' | 137 | ' |
Additions to property, plant and equipment | -1,721 | -765 | ' |
Proceeds from disposal of plant, property and equipment | 31 | 3 | ' |
Net Cash Used in Investing Activities | -1,690 | -625 | ' |
Cash Flow from Financing Activities | ' | ' | ' |
Borrowing / (Repayment) on lines of credit | -445 | -979 | ' |
Repayment of bank loans and capital leases | -556 | -602 | ' |
Proceeds from long-term bank loans | 68 | 1 | ' |
Proceeds from exercising stock options | 342 | ' | ' |
Dividend paid to non-controlling interest | -80 | ' | ' |
Net cash used in financing activities | -671 | -1,580 | ' |
Effect of Changes in Exchange Rate | -59 | -223 | ' |
NET INCREASE (DECREASE) IN CASH | -219 | 1,218 | ' |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,793 | 1,572 | 1,572 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,574 | 2,790 | 2,793 |
Cash paid during the period for Interest | 132 | 148 | ' |
Cash paid during the period for Income taxes | 20 | 35 | ' |
Non-Cash Transactions | ' | ' | ' |
Capital lease of property, plant and equipment | $68 | ' | ' |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended | ||
Dec. 31, 2013 | |||
Notes to Financial Statements | ' | ||
ORGANIZATION AND BASIS OF PRESENTATION (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||
Trio-Tech International (“the Company” or “TTI” hereafter) was incorporated in fiscal 1958 under the laws of the State of California. TTI provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia. In addition, TTI operates testing facilities in the United States. The Company also designs, develops, manufactures and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components. TTI conducts business in four business segments: Manufacturing, Testing Services, Distribution and Real Estate. In fiscal 2013 TTI conducted business in the foregoing four segments and in a fifth segment, Fabrication, which was discontinued during the fourth quarter of fiscal 2013. TTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand, China and Indonesia as follows: | |||
Ownership | Location | ||
Express Test Corporation (Dormant) | 100% | Van Nuys, California | |
Trio-Tech Reliability Services (Dormant) | 100% | Van Nuys, California | |
KTS Incorporated, dba Universal Systems (Dormant) | 100% | Van Nuys, California | |
European Electronic Test Centre (Dormant) | 100% | Dublin, Ireland | |
Trio-Tech International Pte. Ltd. | 100% | Singapore | |
Universal (Far East) Pte. Ltd. * | 100% | Singapore | |
Trio-Tech International (Thailand) Co. Ltd. * | 100% | Bangkok, Thailand | |
Trio-Tech (Bangkok) Co. Ltd. | 100% | Bangkok, Thailand | |
(49% owned by Trio-Tech International Pte. Ltd. and 51% owned by | |||
Trio-Tech International (Thailand) Co. Ltd.) | |||
Trio-Tech (Malaysia) Sdn. Bhd. | 55% | Penang and Selangor, Malaysia | |
(55% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Kuala Lumpur) Sdn. Bhd. | 55% | Selangor, Malaysia | |
(100% owned by Trio-Tech Malaysia Sdn. Bhd.) | |||
Prestal Enterprise Sdn. Bhd. | 76% | Selangor, Malaysia | |
(76% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Suzhou) Co. Ltd. * | 100% | Suzhou, China | |
Trio-Tech (Shanghai) Co. Ltd. * (Dormant) | 100% | Shanghai, China | |
Trio-Tech (Chongqing) Co. Ltd. * | 100% | Chongqing, China | |
SHI International Pte. Ltd. (Dormant) | 55% | Singapore | |
(55% owned by Trio-Tech International Pte. Ltd) | |||
PT SHI Indonesia (Dormant) | 55% | Batam, Indonesia | |
(100% owned by SHI International Pte. Ltd.) | |||
Trio-Tech (Tianjin) Co. Ltd. * | 100% | Tianjin, China | |
* 100% owned by Trio-Tech International Pte. Ltd. | |||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. All significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements are presented in U.S. dollars. The accompanying condensed consolidated financial statements do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. Operating results for the six months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2014. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report for the fiscal year ended June 30, 2013. |
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
NEW ACCOUNTING PRONOUNCEMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' |
New pronouncements issued but not yet effective until after December 31, 2013 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
INVENTORIES
INVENTORIES | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
INVENTORIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
Inventories consisted of the following: | |||||||||
Dec. 31, | |||||||||
2013 | June 30, | ||||||||
(Unaudited) | 2013 | ||||||||
Raw materials | $ | 1,012 | $ | 1,072 | |||||
Work in progress | 953 | 1,930 | |||||||
Finished goods | 210 | 356 | |||||||
Less: provision for obsolete inventory | (865 | ) | (912 | ) | |||||
Currency translation effect | 4 | 17 | |||||||
$ | 1,314 | $ | 2,463 | ||||||
The following table represents the changes in provision for obsolete inventory: | |||||||||
Dec. 31, | |||||||||
2013 | June 30, | ||||||||
(Unaudited) | 2013 | ||||||||
Beginning | $ | 912 | $ | 884 | |||||
Additions charged to expenses | - | 38 | |||||||
Usage - disposition | (47 | ) | (14 | ) | |||||
Currency translation effect | - | 4 | |||||||
Ending | $ | 865 | $ | 912 |
STOCK_OPTIONS
STOCK OPTIONS | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
STOCK OPTIONS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||||||||||
On September 24, 2007, the Company’s Board of Directors unanimously adopted the 2007 Employee Stock Option Plan (the “2007 Employee Plan”) and the 2007 Directors Equity Incentive Plan (the “2007 Directors Plan”) each of which was approved by the shareholders on December 3, 2007. Each of those plans was amended by the Board in 2010 to increase the number of shares covered thereby, which amendments were approved by the shareholders on December 14, 2010. At present, the 2007 Employee Plan provides for awards of up to 600,000 shares of the Company’s Common Stock to employees, consultants and advisors. The Board also amended the 2007 Directors Plan in November 2013 to further increase the number of shares covered thereby from 400,000 shares to 500,000 shares, which amendment was approved by the shareholders on December 9, 2013. The 2007 Directors Plan provides for awards of up to 500,000 shares of the Company’s Common Stock to the members of the Board of Directors in the form of non-qualified options and restricted stock. These two plans are administered by the Board, which also establishes the terms of the awards. | |||||||||||||||||
Assumptions | |||||||||||||||||
The fair value for the options granted were estimated using the Black-Scholes option pricing model with the following weighted average assumptions, assuming no expected dividends: | |||||||||||||||||
Year Ended | Six Months Ended | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Expected volatility | 92.53 | % | 88.53 - 104.94 | % | |||||||||||||
Risk-free interest rate | 0.26 | % | 0.3 | % | |||||||||||||
Expected life (years) | 2.5 | 2.50 - 3.25 | |||||||||||||||
The expected volatilities are based on the historical volatility of the Company’s stock. The observation is made on a weekly basis. The observation period covered is consistent with the expected life of options. The expected life of the options granted to employees has been determined utilizing the “simplified” method as prescribed by ASC Topic 718 Stock Based Compensation, which, among other provisions, allowed companies without access to adequate historical data about employee exercise behavior to use a simplified approach for estimating the expected life of a "plain vanilla" option grant. The simplified rule for estimating the expected life of such an option was the average of the time to vesting and the full term of the option. The risk-free rate is consistent with the expected life of the stock options and is based on the United States Treasury yield curve in effect at the time of grant. | |||||||||||||||||
2007 Employee Stock Option Plan | |||||||||||||||||
The Company’s 2007 Employee Plan permits the grant of stock options to its employees covering up to an aggregate of 600,000 shares of Common Stock. Under the 2007 Employee Plan, all options must be granted with an exercise price of not less than fair value as of the grant date and the options granted must be exercisable within a maximum of ten years after the date of grant, or such lesser period of time as is set forth in the stock option agreements. The options may be exercisable (a) immediately as of the effective date of the stock option agreement granting the option, or (b) in accordance with a schedule related to the date of the grant of the option, the date of first employment, or such other date as may be set by the Compensation Committee. Generally, options granted under the 2007 Employee Plan are exercisable within five years after the date of grant, and vest over the period as follows: 25% vesting on the grant date and the remaining balance vesting in equal installments on the next three succeeding anniversaries of the grant date. The share-based compensation will be recognized in terms of the grade method on a straight-line basis for each separately vesting portion of the award. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2007 Employee Plan). | |||||||||||||||||
On September 17, 2013, stock options covering a total of 15,000 shares of the Company’s Common Stock were granted to certain employees pursuant to the 2007 Employee Plan, with an exercise price equal to the fair value of the Company’s Common Stock (as defined under the 2007 Employee Plan in conformity with Regulation 409A of the Internal Revenue Code of 1986, as amended) on September 17, 2013, the date of grant. These options vested as of the grant date. The fair value as of December 31, 2013 of the options to purchase 15,000 shares of the Company’s Common Stock was approximately $22 based on the fair value of $1.52 per share determined by using the Black Scholes option pricing model. | |||||||||||||||||
On December 9, 2013, stock options covering a total of 35,000 shares of the Company’s Common Stock were granted to certain employees pursuant to the 2007 Employee Plan, with an exercise price equal to the fair value of the Company’s Common Stock (as defined under the 2007 Employee Plan in conformity with Regulation 409A of the Internal Revenue Code of 1986, as amended) on December 9, 2013, the date of grant. These stock option vest over the period as follows: 25% vesting on the grant date and the remaining balance vesting in equal installments on the next three succeeding anniversaries of the grant date. The fair value as of December 31, 2013 of the options to purchase 35,000 shares of the Company’s Common Stock was approximately $3 based on the fair value of $2.04 per share determined by using the Black Scholes option pricing model. | |||||||||||||||||
Stock options to purchase 121,500 shares of its Common Stock were exercised during the six month period ended December 31, 2013. The total proceeds received were $230. The Company recognized stock-based compensation expenses of $25 in the six months ended December 31, 2013 under the 2007 Employee Plan. The balance of unamortized stock-based compensation of $43 based on fair value on the grant date related to options granted under the 2007 Employee Plan is to be recognized over a period of three years. | |||||||||||||||||
The Company did not grant any options pursuant to the 2007 Employee Plan during the six months ended December 31, 2012. The Company recognized stock-based compensation expenses of $19 in the six months ended December 31, 2012 under the 2007 Employee Plan. The balance of unamortized stock-based compensation of $17 based on fair value on the grant date related to options granted under the 2007 Employee Plan is to be recognized over a period of two years. | |||||||||||||||||
As of December 31, 2013, there were vested employee stock options covering a total of 125,750 shares of Common Stock. The weighted-average exercise price was $3.72 and the weighted average contractual term was 2.20 years. The total fair value of vested and outstanding employee stock options as of December 31, 2013 was $467. | |||||||||||||||||
As of December 31, 2012, there were vested employee stock options covering a total of 248,250 shares of Common Stock. The weighted-average exercise price was $2.95 and the weighted average remaining contractual term was 1.90 years. The total fair value of vested employee stock options as of December 31, 2012 was $496. | |||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the six month period ended December 31, 2013 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2013 | 263,500 | $ | 3.06 | 1.57 | $ | 122 | |||||||||||
Granted | 50,000 | 3.26 | 4.87 | - | |||||||||||||
Exercised | (121,500 | ) | (1.90 | ) | - | (181 | ) | ||||||||||
Forfeited or expired | (40,000 | ) | (4.72 | ) | - | - | |||||||||||
Outstanding at December 31, 2013 | 152,000 | $ | 3.61 | 2.67 | $ | 45 | |||||||||||
Exercisable at December 31, 2013 | 125,750 | $ | 3.72 | 2.2 | 38 | ||||||||||||
The fair value of the 121,500 shares of common stock acquired upon exercise of options was $181. Cash received from the options exercised during the six months ended December 31, 2013 was approximately $230. | |||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the six month period ended December 31, 2012 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2012 | 313,000 | $ | 3.85 | 2.31 | $ | - | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | (44,000 | ) | -8.69 | - | - | ||||||||||||
Outstanding at December 31, 2012 | 269,000 | $ | 3.05 | 2.06 | $ | - | |||||||||||
Exercisable at December 31, 2012 | 248,250 | $ | 2.95 | 1,90 | - | ||||||||||||
A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2013 is presented below: | |||||||||||||||||
Weighted Average Grant-Date | |||||||||||||||||
Options | Fair Value | ||||||||||||||||
Non-vested at July 1, 2013 | 20,375 | $ | 3.26 | ||||||||||||||
Granted | 50,000 | 1.65 | |||||||||||||||
Vested | (44,125 | ) | (2.33 | ) | |||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at December 31, 2013 | 26,250 | $ | 1.69 | ||||||||||||||
A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2012 is presented below: | |||||||||||||||||
Weighted Average Grant-Date | |||||||||||||||||
Options | Fair Value | ||||||||||||||||
Non-vested at July 1, 2012 | 43,250 | $ | 3.29 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | (21,375 | ) | (3.16 | ) | |||||||||||||
Forfeited | (1,125 | ) | (3.16 | ) | |||||||||||||
Non-vested at December 31, 2012 | 20,250 | $ | 2.08 | ||||||||||||||
2007 Directors Equity Incentive Plan | |||||||||||||||||
The 2007 Directors Plan permits the grant of options covering up to an aggregate of 500,000 shares of Common Stock to its non-employee directors in the form of non-qualified options and restricted stock. The exercise price of the non-qualified options is 100% of the fair value of the underlying shares on the grant date. The options have five-year contractual terms and are generally exercisable immediately as of the grant date. | |||||||||||||||||
During the three months ended September 30, 2013, the Company granted options to purchase 60,000 shares of its Common Stock to our directors pursuant to the 2007 Directors Plan with an exercise price equal to the fair market value of our Common Stock (as defined under the 2007 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) at the date of grant. The fair value of the options granted to purchase 60,000 shares of the Company's Common Stock was approximately $92 based on the fair value of $1.52 per share determined by the Black Scholes option pricing model. | |||||||||||||||||
During the three months ended December 31, 2013, the Company granted options to purchase 40,000 shares of its Common Stock to our directors pursuant to the 2007 Directors Plan with an exercise price equal to the fair market value of our Common Stock (as defined under the 2007 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) at the date of grant. The fair value of the options granted to purchase 40,000 shares of the Company's Common Stock was approximately $83 based on the fair value of $1.61 per share determined by the Black Scholes option pricing model. | |||||||||||||||||
Stock options to purchase 65,000 shares of its Common Stock were exercised during the six month period ended December 31, 2013. The total proceeds received were $112. The Company recognized stock-based compensation expenses of $175 in the six month period ended December 31, 2013 under the 2007 Directors Plan. | |||||||||||||||||
During the six months ended December 31, 2012, the Company did not grant any options pursuant to the 2007 Director Plan. There were no stock options exercised during the six months ended December 31, 2012. The Company did not recognize any stock-based compensation expenses during the six months ended December 31, 2012. | |||||||||||||||||
As of December 31, 2013, there were vested director stock options covering a total of 315,000 shares of Common Stock. The weighted-average exercise price was $3.62 and the weighted average remaining contractual term was 3.12 years. The total fair value of vested and outstanding directors' stock options as of December 31, 2013 was $1,140. All of our director stock options vest immediately at the date of grant. There were no unvested director stock options as of December 31, 2013. | |||||||||||||||||
As of December 31, 2012, there were vested director stock options covering a total of 325,000 shares of Common Stock. The weighted-average exercise price was $3.59 and the weighted average remaining contractual term was 2.32 years. The total fair value of vested and outstanding directors' stock options as of December 31, 2012 was $698. All of our director stock options vest immediately at the date of grant. There were no unvested director stock options as of December 31, 2012. | |||||||||||||||||
A summary of option activities under the 2007 Directors Plan during the three months ended December 31, 2013 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2013 | 340,000 | $ | 3.53 | 1.96 | $ | 80 | |||||||||||
Granted | 100,000 | 3.41 | 3.41 | - | |||||||||||||
Exercised | -65,000 | 1.72 | - | - | |||||||||||||
Forfeited or expired | (60,000 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at December 31, 2013 | 315,000 | $ | 3.62 | 3.12 | $ | 82 | |||||||||||
Exercisable at December 31, 2013 | 315,000 | $ | 3.62 | 3.12 | 82 | ||||||||||||
A summary of option activities under the 2007 Directors Plan during the three months ended December 31, 2012 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2012 | 385,000 | $ | 4.52 | 2.45 | $ | - | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | (60,000 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at December 31, 2012 | 325,000 | $ | 3.59 | 2.32 | $ | - | |||||||||||
Exercisable at December 31, 2012 | 325,000 | $ | 3.59 | 2.32 | $ | - | |||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
EARNINGS PER SHARE (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||||||||||
The Company adopted ASC Topic 260, Earnings Per Share. Basic EPS are computed by dividing net income available to common shareholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential common shares outstanding during a period. In computing diluted EPS, the average price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants. | |||||||||||||||||
Stock options to purchase 467.000 shares of Common Stock at exercise prices ranging from $1.72 to $9.57 per share were outstanding as of December 31, 2013 and were excluded in the computation of diluted EPS because their effect would have been anti-dilutive. | |||||||||||||||||
Stock options to purchase 594,000 shares of Common Stock at exercise prices ranging from $1.72 to $9.57 per share were outstanding as of December 31, 2012 and were excluded in the computation of diluted EPS because their effect would have been anti-dilutive. | |||||||||||||||||
The following table is a reconciliation of the weighted average shares used in the computation of basic and diluted EPS for the years presented herein: | |||||||||||||||||
Six Months Ended | Three Months Ended | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Loss attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ | (342 | ) | $ | (281 | ) | $ | (348 | ) | $ | (374 | ) | |||||
Loss attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | (40 | ) | (242 | ) | -17 | (132 | ) | ||||||||||
Net loss attributable to Trio-Tech International common shareholders | $ | (382 | ) | $ | (523 | ) | $ | (365 | ) | $ | (506 | ) | |||||
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International | $ | (0.10 | ) | (0.09) | (0.10 | ) | (0.12 | ) | |||||||||
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | (0.01 | ) | (0.07 | ) | - | (0.03 | ) | ||||||||||
Basic and diluted loss per share from net loss attributable to Trio-Tech International | $ | (0.11 | ) | $ | (0.16 | ) | $ | (0.10 | ) | $ | (0.15 | ) | |||||
Weighted average number of common shares outstanding - basic | 3,508 | 3,322 | 3,508 | 3,322 | |||||||||||||
Dilutive effect of stock options | - | - | - | - | |||||||||||||
Number of shares used to compute earnings per share - diluted | 3,508 | 3,322 | 3,508 | 3,322 |
ACCOUNTS_RECEIVABLE_AND_ALLOWA
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
Accounts receivable consists of customer obligations due under normal trade terms. Although management generally does not require collateral, letters of credit may be required from the customers in certain circumstances. Management periodically performs credit evaluations of the customers’ financial conditions. | |||||||||
Senior management reviews accounts receivable on a monthly basis to determine if any receivables will potentially be uncollectible. Management includes any accounts receivable balances that are determined to be uncollectible in the allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to us, management believed the allowance for doubtful accounts as of December 31, 2013 and June 30, 2013 was adequate. | |||||||||
The following table represents the changes in the allowance for doubtful accounts: | |||||||||
Dec. 31, | |||||||||
2013 | June 30, | ||||||||
(Unaudited) | 2013 | ||||||||
Beginning | $ | 139 | $ | 122 | |||||
Additions charged to expenses | 10 | 196 | |||||||
Recovered / Write-off | (3 | ) | (131 | ) | |||||
Currency translation effect | 2 | (48 | ) | ||||||
Ending | $ | 148 | $ | 139 | |||||
WARRANTY_ACCRUAL
WARRANTY ACCRUAL | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
WARRANTY ACCRUAL (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded. The Company provides warranty for products manufactured in the term of one year. The Company estimates the warranty costs based on the historical rates of warranty returns. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. | |||||||||
Dec. 31, | |||||||||
2013 | June 30, | ||||||||
(Unaudited) | 2013 | ||||||||
Beginning | $ | 61 | $ | 60 | |||||
Additions charged to cost and expenses | 18 | 1 | |||||||
Recovered | - | - | |||||||
Actual usage | (15 | ) | - | ||||||
Currency translation effect | - | - | |||||||
Ending | 64 | 61 | |||||||
INCOME_TAX
INCOME TAX | 6 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
INCOME TAX (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' |
The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of ASC Topic 740 Income Tax. The Company had an income tax benefit of $39 and $82 for the three and six months ended December 31, 2013, respectively, as compared to the income tax expense of $2 and income tax benefit of $122, respectively, for the same periods in the last fiscal year. | |
The Company accrues penalties and interest related to unrecognized tax benefits when necessary as a component of penalties and interest expenses, respectively. The Company had not accrued any penalties or interest expenses relating to unrecognized benefits at June 30, 2013 and December 31, 2013. | |
The major tax jurisdictions in which the Company files income tax returns are the United States, Singapore and Malaysia. The statute of limitations, in general, is open for years 2004 to 2013 for tax authorities in those jurisdictions to audit or examine income tax returns. The Company is under annual review by the government of Singapore. However, the Company is not currently under tax examination in any other jurisdiction. |
INVESTMENT_PROPERTIES
INVESTMENT PROPERTIES | 6 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements | ' | |||||||||
INVESTMENT PROPERTIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | |||||||||
The following table presents the Company’s investment in properties in China and Malaysia as of December 31, 2013. The exchange rate is based on the exchange rate as of December 31, 2013 published by the Monetary Authority of Singapore. | ||||||||||
Investment Date | Investment Amount (RMB) | Investment Amount (U.S. Dollars) | ||||||||
Purchase of rental property – Property I - MaoYe | 1/4/08 | 5,554 | 917 | |||||||
Purchase of rental property – Property II - JiangHuai | 1/6/10 | 3,600 | 595 | |||||||
Purchase of rental property – Property III - Fu Li | 1/6/10 | 4,025 | 665 | |||||||
Gross investment in rental property | 13,179 | 2,177 | ||||||||
Accumulated depreciation on rental property | (2,631 | ) | (434 | ) | ||||||
Net investment in property – China | 10,548 | 1,743 | ||||||||
Investment Date | Investment Amount | Investment Amount (U.S. Dollars) | ||||||||
(RM) | ||||||||||
Purchase of rental property – Penang Property I | 31/12/2012 | 681 | 209 | |||||||
Gross investment in rental property | 681 | 209 | ||||||||
Accumulated depreciation on rental property | (294 | ) | (91 | ) | ||||||
Net investment in property – Malaysia | 387 | 118 | ||||||||
Rental Property I | ||||||||||
In fiscal 2008, Trio-Tech (Chongqing) Co. Ltd. (“TTCQ”) purchased an office in Chongqing, China from MaoYe Property Ltd. (“MaoYe”), for a total cash purchase price of RMB 5,554, or approximately $917 based on the exchange rate as of December 31, 2013 published by the Monetary Authority of Singapore. TTCQ rented this property to a third party on July 13, 2008. The term of the rental agreement was five years. The rental agreement was renewed on July 16, 2013 for a further period of five years. The rental agreement provides for a rent increase of 8% every year after July 15, 2015. The renewed agreement expires on July 15, 2018. | ||||||||||
Property purchased from MaoYe generated a rental income of RMB 179, or approximately $29, and RMB 350, or approximately $57, for the three and six months ended December 31, 2013, respectively, and RMB 135, or approximately $22, and RMB 269, or approximately $43, for the same periods in the last fiscal year, respectively. | ||||||||||
Rental Property II | ||||||||||
In fiscal 2010, TTCQ purchased eight units of commercial property in Chonqing, China, from Chongqing JiangHuai Real Estate Development Co., Ltd, (“JiangHuai”) for a total purchase price of RMB 3,600, or approximately $595 based on the exchange rate as of December 31, 2013 published by the Monetary Authority of Singapore. TTCQ rented these commercial units to a third party and renewed the rental agreement of this property on January 8, 2011. The rental agreement provided for a one-year renewable term with an annual rental income of RMB 720, or approximately $118 based on the average rate for the period six month period ended December 31, 2013. | ||||||||||
Property purchased from JiangHuai generated a rental income of RMB 27, or approximately $5, and RMB 55, or approximately $9, for the three and six months ended December 31, 2013, respectively, and did not generate any rental income for the same periods in last fiscal year. | ||||||||||
Other Properties III – Fu Li | ||||||||||
In fiscal 2010, TTCQ entered into a Memorandum Agreement with Chongqing Fu Li Real Estate Development Co. Ltd., (“FuLi”) to purchase two commercial properties totaling 311.99 square meters (“office space”) located in Jiang Bei District Chongqing. Although TTCQ currently rents its office premises from a third party, it intends to use the office space as its office premises. The total purchase price committed and paid was RMB 4,025, or approximately $665 based on the exchange rate as of December 31, 2013 published by the Monetary Authority of Singapore. The development was completed and the property was handed over during April 2012 and the title deed was received during the third quarter of fiscal 2013. | ||||||||||
Property purchased from Fu Li generated a rental income of RMB 74, or approximately $12, and RMB 147, or approximately $24 for the three and six months ended December 31, 2013, respectively, and RMB 70, or approximately $11, and RMB 127, or approximately $20, respectively, for the same periods in the last fiscal year. | ||||||||||
Penang Property I | ||||||||||
Since the market value of the factory building in Penang, Malaysia is increasing significantly, during the second quarter of fiscal 2013 Trio-Tech Malaysia (“TTM”) changed the plans of sale and concluded to hold the factory building in Penang and is looking for a tenant to rent the factory building. Hence, TTM has re-classified the factory building as investment property, which has a net book value of $118. | ||||||||||
Summary | ||||||||||
Total rental income for all investment properties (Property I, II and III) in China was $46 and $90 for the three and six months ended December 31, 2013, respectively, and was $33 and $63, respectively, for the same periods in the last fiscal year. | ||||||||||
Rental income from the Penang property was nil for the three and six months ended December 31, 2013 as the property in Penang, Malaysia is vacant at the date of this report. TTM is in the process of identifying a suitable tenant. | ||||||||||
Depreciation expenses for all investment properties in China were $26 and $54 for the three and six months ended December 31, 2013, respectively, and were $28 and $54, respectively, for the same periods in the last fiscal year. | ||||||||||
LOANS_RECEIVABLE_FROM_PROPERTY
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | 6 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements | ' | |||||||||
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | |||||||||
The following table presents TTCQ’s loan receivable from property development projects in China as of December 31, 2013. The exchange rate is based on the date published by the Monetary Authority of Singapore as on December 31, 2013. | ||||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Date | (RMB) | (U.S. Dollars) | ||||||||
Investment in JiaSheng (Project B-48 Phase 2) | 31-Oct-13 | 5,000 | 826 | |||||||
Investment in JiangHuai (Project - Yu Jin Jiang An) | 31-May-13 | 2,000 | 330 | |||||||
Less : Allowance for doubtful receivables | (2,000 | ) | (330 | ) | ||||||
Net loan receivable from property development projects | 5,000 | 826 | ||||||||
On November 1, 2010, TTCQ entered into a Memorandum Agreement with JiaSheng Property Development Co. Ltd. (“JiaSheng”) to invest in their property development projects (Project B-48 Phase 2) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310-10-25 Receivables, amounting to RMB 5,000, or approximately $826, based on the exchange rate as at December 31, 2013 published by the Monetary Authority of Singapore. The agreement guaranteed TTCQ an income of RMB 1,250, or approximately $196, payable in four installments of RMB 313, or approximately $51. The amount is unsecured and repayable at the end of the term. The loan was renewed in November 2011 for a period of one year, which expired on October 31, 2012 and was renewed in November 2012 and expired in November 2013. On November 1, 2013 the loan was transferred by JiaSheng to and is now payable by Chong Qing Jun Zhou Zhi Ye Co. Ltd., and the transferred agreement expires on October 31, 2016. The book value of the loan receivable approximates its fair value. TTCQ recorded other income of RMB 313, or approximately $51, and RMB 625, or approximately $102, from JiaSheng for the three and six months ended December 31, 2013. | ||||||||||
On November 1, 2010, TTCQ entered into another Memorandum Agreement with JiangHuai Property Development Co. Ltd. (“JiangHuai”) to invest in their property development projects (Project - Yu Jin Jiang An) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310-10-25 Receivables, amounting to RMB 2,000, or approximately $330 based on the exchange rate as at December 31, 2013 published by the Monetary Authority of Singapore. The agreement guaranteed TTCQ an income of RMB 400, or approximately $66, payable in 12 installments of RMB 33, or approximately $5. The amount is secured by the underlying property and repayable at the end of the term. The loan was renewed, but expired on May 31, 2013. TTCQ is in the process of recovering the outstanding amount. TTCQ did not generate other income from JiangHuai for the three and six months ended December 31, 2013, while it recorded other income of $11 and $26 for the same periods in the last fiscal year, respectively. An allowance for doubtful receivables of $330 was provided for during the second quarter of fiscal 2014, based on the company’s financial policy. |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Notes to Financial Statements | ' | |||||||||||||||||||||
BUSINESS SEGMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | |||||||||||||||||||||
In fiscal 2014, the Company operates in four segments: the testing service industry (which performs structural and electronic tests of semiconductor devices), the designing and manufacturing of equipment (which equipment tests the structural integrity of integrated circuits and other products), distribution of various products from other manufacturers in Singapore and Southeast Asia, and the real estate segment in China. In the fourth quarter of fiscal 2013, the Company discontinued operations in the fabrication segment. | ||||||||||||||||||||||
The real estate segment recorded other income of $46 and $90, respectively, for the three and six months ended December 31, 2013 as compared to $33 and $63, respectively, for the same periods in the last fiscal year. Due to the short-term nature of the investment, the amount was classified as a loan receivables based on ASC Topic 310-10-25 Receivables, hence the investment income was also classified under other income, which is not part of the below table. | ||||||||||||||||||||||
The revenue allocated to individual countries was based on where the customers were located. The allocation of the cost of equipment, the current year investment in new equipment and depreciation expense have been made on the basis of the primary purpose for which the equipment was acquired. | ||||||||||||||||||||||
All inter-segment revenue was from the manufacturing segment to the testing and distribution segments. Total inter-segment revenue was $48 and $196 for the three and six months ended December 31, 2013, respectively, as compared to $91 and $399, respectively, for the same periods in the last fiscal year. Corporate assets mainly consisted of cash and prepaid expenses. Corporate expenses mainly consisted of stock option expenses, salaries, insurance, professional expenses and directors' fees. In fiscal 2014, corporate expenses are allocated to the four segments, in fiscal 2013, corporate expenses were allocated to the five then operating segments. The following tables report segment operating (loss) / income and include Corporate expenses allocated to the segments, which expenses are eliminated in the consolidation. | ||||||||||||||||||||||
The following segment information is un-audited for the six months ended December 31, 2013: | ||||||||||||||||||||||
Business Segment Information: | ||||||||||||||||||||||
Six months | Operating | Depr. | ||||||||||||||||||||
Ended | Net | (Loss) | Total | and | Capital | |||||||||||||||||
Dec. 31, | Revenue | Income | Assets | Amort. | Expenditures | |||||||||||||||||
Manufacturing | 2013 | $ | 8,569 | $ | (328 | ) | $ | 10,872 | $ | 77 | $ | 221 | ||||||||||
2012 | 8,371 | (431 | ) | 9,777 | 90 | 19 | ||||||||||||||||
Testing Services | 2013 | 8,645 | 391 | 19,331 | 1,067 | 1,500 | ||||||||||||||||
2012 | 7,678 | 70 | 19,292 | 1,120 | 745 | |||||||||||||||||
Distribution | 2013 | 1,532 | 199 | 418 | - | - | ||||||||||||||||
2012 | 684 | 84 | 378 | 2 | 1 | |||||||||||||||||
Real Estate | 2013 | 90 | (45 | ) | 3,893 | 54 | - | |||||||||||||||
2012 | 63 | (121 | ) | 4,161 | 54 | - | ||||||||||||||||
Fabrication * | 2013 | - | - | 106 | - | - | ||||||||||||||||
Services | 2012 | - | (34 | ) | 367 | - | - | |||||||||||||||
Corporate & | 2013 | - | (336 | ) | 76 | - | - | |||||||||||||||
Unallocated | 2012 | - | 8 | 58 | - | - | ||||||||||||||||
Total Company | 2013 | $ | 18,836 | $ | (119 | ) | $ | 34,696 | $ | 1,198 | $ | 1,721 | ||||||||||
2012 | $ | 16,796 | $ | (424 | ) | $ | 34,033 | $ | 1,266 | $ | 765 | |||||||||||
The following segment information is unaudited for the three months ended December 31, 2013: | ||||||||||||||||||||||
Business Segment Information: | ||||||||||||||||||||||
Three months | Operating | Depr. | ||||||||||||||||||||
Ended | Net | (Loss) | Total | and | Capital | |||||||||||||||||
Dec. 31, | Revenue | Income | Assets | Amort. | Expenditures | |||||||||||||||||
Manufacturing | 2013 | $ | 4,368 | $ | (201 | ) | $ | 10,872 | $ | 38 | $ | 91 | ||||||||||
2012 | 3,079 | (191 | ) | 9,777 | 44 | 13 | ||||||||||||||||
Testing Services | 2013 | 4,597 | 289 | 19,331 | 531 | 1,146 | ||||||||||||||||
2012 | 3,769 | (34 | ) | 19,292 | 569 | 78 | ||||||||||||||||
Distribution | 2013 | 328 | 7 | 418 | - | - | ||||||||||||||||
2012 | 340 | 38 | 378 | 1 | 1 | |||||||||||||||||
Real Estate | 2013 | 46 | (22 | ) | 3,893 | 27 | - | |||||||||||||||
2012 | 33 | (57 | ) | 4,161 | 27 | - | ||||||||||||||||
Fabrication * | 2013 | - | - | 106 | - | - | ||||||||||||||||
Services | 2012 | - | (10 | ) | 367 | - | - | |||||||||||||||
Corporate & | 2013 | - | (179 | ) | 76 | - | - | |||||||||||||||
Unallocated | 2012 | - | (60 | ) | 58 | - | - | |||||||||||||||
Total Company | 2013 | $ | 9,339 | $ | (106 | ) | $ | 34,696 | $ | 596 | $ | 1,237 | ||||||||||
2012 | $ | 7,221 | $ | (314 | ) | $ | 34,033 | $ | 641 | $ | 92 | |||||||||||
* Fabrication services is a discontinued operation (Note 16) | ||||||||||||||||||||||
NONCONTROLLING_INTEREST
NON-CONTROLLING INTEREST | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
NON-CONTROLLING INTEREST (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
In accordance with the provisions of ASC Topic 810 Consolidation, the Company has classified the non-controlling interest as a component of stockholders’ equity in the accompanying condensed consolidated balance sheets. Additionally, the Company has presented the net income attributable to the Company and the non-controlling ownership interests separately in the accompanying condensed consolidated financial statements. | |||||||||
Non-controlling interest represents the minority stockholders’ share of 45% of the equity of Trio-Tech Malaysia Sdn. Bhd. 45% interest in SHI International Pte. Ltd. and 24% interest in Prestal Enterprise Sdn. Bhd., which are subsidiaries of the Company. | |||||||||
The table below reflects a reconciliation of the equity attributable to non-controlling interest: | |||||||||
Dec. 31, 2013 | June 30, 2013 | ||||||||
Non-controlling interest | (Unaudited) | ||||||||
Beginning balance | $ | 1,971 | $ | 1,720 | |||||
Net income / (loss) | 98 | (83 | ) | ||||||
Dividend declared by a subsidiary | (156 | ) | 244 | ||||||
Contributions to capital by related party – loan forgiveness | - | (39 | ) | ||||||
Translation adjustment | (103 | ) | 129 | ||||||
Ending balance | $ | 1,810 | $ | 1,971 |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | 6 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
FAIR VALUE MEASUREMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' |
In accordance with ASC Topic 825, the Company considers the following: | |
Term deposits – The carrying amount approximates fair value because of the short maturity of these instruments. | |
Loan receivables from property development projects – The carrying amount approximates fair value because of the short-term nature. | |
Restricted term deposits – The carrying amount approximates fair value because of the short maturity of these instruments. | |
Lines of credit – The carrying value of the lines of credit approximates fair value due to their short-term nature of the obligations. | |
Bank loans payable – The carrying value of the Company’s bank loan payables approximates its fair value as the interest rates associated with long-term debt is adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. | |
BANK_LOANS_PAYABLE
BANK LOANS PAYABLE | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
BANK LOANS PAYABLE (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
Bank loans payable consisted of the following: | |||||||||
Dec. 31, 2013 | June 30, 2013 | ||||||||
(Unaudited) | |||||||||
Note payable denominated in Malaysian ringgit to a commercial bank for infrastructure investment, maturing in August 2024, bearing interest at the bank’s prime rate (5.1% at December 31, 2013) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with the net book value of Malaysian ringgit 12,133, or approximately $3,697 | 573 | 885 | |||||||
Note payable denominated in U.S. dollars to a financial institution for working capital plans in Singapore and its subsidiaries, maturing in December 2014, bearing interest at the bank’s prime rate plus 1.50% (5.1% at December 31, 2013) per annum, monthly payments of principal plus interest through December 2014. This note payable is secured by plant and equipment with the net book value of Singapore dollars 679, or approximately $537. | 2,351 | 2,498 | |||||||
Current portion | (717 | ) | (770 | ) | |||||
Long term portion of bank loans payable | $ | 2,207 | $ | 2,613 | |||||
Future minimum payments (excluding interest) as at December 31, 2013 were as follows: | |||||||||
2013 | $ | 717 | |||||||
2014 | 152 | ||||||||
2015 | 160 | ||||||||
2016 | 168 | ||||||||
2017 | 175 | ||||||||
Thereafter | 1,552 | ||||||||
Total obligations and commitments | $ | 2,924 | |||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
COMMITMENTS AND CONTINGENCIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' |
Trio-Tech (Malaysia) Sdn. Bhd. has expansion plans to meet the growing demands of a major customer in Malaysia, as the existing facility is inadequate to meet the demands of that customer. The Company has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RM 110, or approximately $34 based on the exchange rate as on December 31, 2013 published by the Monetary Authority of Singapore, in the Malaysia operations. | |
Trio-Tech (Tianjin) Co. Ltd. in China has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RMB 53, or approximately $9 based on the exchange rate as on December 31, 2013 published by the Monetary Authority of Singapore. |
DISCONTINUED_OPERATION_AND_COR
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||||||||||
The Company’s Indonesia operation and the Indonesia operation’s immediate holding company, which comprise the fabrication services segment, suffered continued operating losses in the past four fiscal years, and the cash flow was minimal for the past four years. The Company established a restructuring plan to close the fabrication services operation, and in accordance with ASC Topic 205-20, Presentation of Financial Statement Discontinued Operations (“ASC Topic 250-20”), the Company presented the operation results from fabrication services as a discontinued operation, as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component. In accordance with the restructuring plan, the Company is negotiating with its suppliers to settle the outstanding balance of accounts payable of $387 and is collecting the accounts receivable of $61. The Company’s fabrication operation in Indonesia is in the process of winding down. | |||||||||||||||||
In January 2010, the Company established a restructuring plan to close the Testing operation in Shanghai, China. Based on the restructuring plan and in accordance with ASC Topic 205-20, the Company presented the operation results from Shanghai as a discontinued operation, as the Company believed that no continued cash flow would be generated by the discontinued component (Shanghai subsidiary) and that the Company would have no significant continuing involvement in the operations of the discontinued component. | |||||||||||||||||
The discontinued operations in Shanghai and in Indonesia incurred general and administrative expenses of $3 and $7, respectively, for the three and six months ended December 31, 2013 and incurred general and administrative expenses and selling expenses of $70 and $147, respectively, for the same periods in the last fiscal year. The Company anticipates that it may incur additional costs and expenses at the time of winding down the business of the subsidiary through which the facilities operated. The Shanghai operation has an outstanding balance of accounts payable of $41 and is collecting the accounts receivable of $2. | |||||||||||||||||
Loss from discontinued operations was as follows: | |||||||||||||||||
Six Months Ended | Three Months Ended | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||||
REVENUE | $ | - | $ | 302 | $ | - | $ | 130 | |||||||||
COST OF SALES | 3 | 578 | - | 331 | |||||||||||||
GROSS LOSS | (3 | ) | (276 | ) | - | (201 | ) | ||||||||||
OPERATING EXPENSES | |||||||||||||||||
General and administrative | 7 | 139 | 3 | 66 | |||||||||||||
Selling | - | 8 | - | 4 | |||||||||||||
Total | 7 | 147 | 3 | 70 | |||||||||||||
LOSS FROM DISCONTINUED OPERATION | (10 | ) | (423 | ) | -3 | (271 | ) | ||||||||||
OTHER INCOME | (62 | ) | -66 | -27 | 13 | ||||||||||||
LOSS FROM DISCONTINUED OPERATIONS | $ | (72 | ) | $ | (489 | ) | $ | (30 | ) | $ | (258 | ) | |||||
The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of the discontinued operation was immaterial. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
INVESTMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' |
During the second quarter of fiscal 2011, the Company entered into a joint-venture agreement with JiaSheng to develop real estate projects in China. The Company invested RMB 10,000, or approximately $1,653 based on the exchange rate as of December 31, 2013 published by the Monetary Authority of Singapore, for a 10% interest in the newly formed joint venture, which was incorporated as a limited liability company, Chong Qing Jun Zhou Zhi Ye Co. Ltd. (the “joint venture”), in China. The agreement stipulated that the Company would nominate two of the five members of the Board of Directors of the joint venture and had the ability to assign two members of management to the joint venture. The agreement also stipulated that the Company would receive a fee of RMB 10,000, or approximately $1,653 based on the exchange rate as of December 31, 2013 published by the Monetary Authority of Singapore, for the services rendered in connection with obtaining priority to bid in certain real estate projects from the local government. Upon signing of the agreement, JiaSheng paid the Company RMB 5,000 in cash, or approximately $827 based on the exchange rate published by the Monetary Authority of Singapore as of December 31, 2013. The remaining RMB 5,000 would be paid over 72 months commencing in 36 months from the date of the agreement when the joint venture secured a property development project stated inside the joint venture agreement. The Company considered the RMB 5,000, or approximately $827 based on the exchange rate as of December 31, 2013 published by the Monetary Authority of Singapore, received in cash from JiaSheng, the controlling venturer in the joint venture, as a partial return of the Company’s initial investment of RMB 10,000, or approximately $1,653 based on the exchange rate as of December 31, 2013 published by the Monetary Authority of Singapore. Therefore, the RMB 5,000, received in cash was offset against the initial investment of RMB 10,000 resulting in a net investment of RMB 5,000 as of December 31, 2013. The Company further reduced its investments by RMB 137, or approximately $23, towards the losses from operations incurred by the joint-venture, resulting in a net investment of RMB 4,863, or approximately $804 based on exchange rates published by the Monetary Authority of Singapore as of December 31, 2013. The Company considered the collectability of the remaining RMB 5,000 uncertain due to the extended terms of the payment, and therefore has not recorded this amount as a receivable as of December 31, 2013. | |
“Investment in unconsolidated joint venture” as shown in the balance sheet consists of the cost of an investment in a joint venture, in which we have a 10% interest. Prior to the first quarter of fiscal 2012, the investment in this China affiliate was recorded on the equity basis. In the first quarter of fiscal 2012, due to the resignation of two directors representing Trio-Tech on the board of the joint venture, the Company concluded that it could no longer exert significant influence over the joint venture. Therefore, the Company began accounting for this investment using the cost method effective September 29, 2011. During the second quarter of fiscal 2014, TTCQ disposed of its 10% interest in the joint venture. The joint venture had to raise funds for the development of the project. As a joint-venture partner, TTCQ was required to stand guarantee for the funds to be borrowed; considering the amount of borrowing, the risk involved was higher than the investment made and hence TTCQ decided to dispose of the 10% interest in the joint venture investment. On October 2, 2013, TTCQ entered into a share transfer agreement with Zhu Shu. Based on the agreement the purchase price was to be paid by (1) RMB 10,000, or approximately $1,634 based on exchange rates published by the Monetary Authority of Singapore as of October 2, 2013, by non-monetary consideration and (2) the remaining RMB 8,000, or approximately $1,307 based on exchange rates published by the Monetary Authority of Singapore as of October 2, 2013, by cash consideration. The consideration consists of (1) commercial units measuring 668 square meters to be delivered in June 2016 and (2) sixteen quarterly equal installments of RMB 500 per quarter commencing from January 2014. Based on ASC Topic 845 Non-monetary consideration, the Company deferred the recognition of the gain on disposal of the 10% interest in joint venture investment until such time that the consideration is paid, so that the gain can be ascertained. Thus the recorded value of the disposed investment amounting to $804 is classified as “other assets” under non-current assets, because it is considered as a down-payment for the purchase of the commercial property in Chongqing. | |
In accordance with ASC Topic 323 Investments – Other, Cost Method Investments, ‘‘Investments’’ as shown on the Company’s Balance Sheet consists of the cost of an investment in the joint venture, in which the Company has a 10% interest. Prior to the first quarter of fiscal 2012, the Company’s 10% ownership in this China affiliate was recorded on the equity basis. | |
In accordance with ASC Topic 810-10-50, Disclosure for Variable Interest Entities, the Company analyzes its investments in joint ventures to determine if the joint venture is a variable interest entity (“VIE”) and would require consolidation. The Company (a) evaluates the sufficiency of the total equity at risk, (b) reviews the voting rights and decision-making authority of the equity investment holders as a group, and whether there are any guaranteed returns, protection against losses, or capping of residual returns within the group, and (c) establishes whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. The Company would consolidate a venture that is determined to be a VIE if it was the primary beneficiary. Beginning January 1, 2010, a new accounting standard became effective and changed the method by which the primary beneficiary of a VIE is determined, a primarily qualitative approach whereby the variable interest holder, if any, has the power to direct the VIE’s most significant activities and is the primary beneficiary. The Company has determined that although the investment is a VIE, the Company is not the primary beneficiary. Therefore, the Company does not consolidate the joint venture and it is accounted for using the cost method, since there is no significant influence. |
LINES_OF_CREDIT
LINES OF CREDIT | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
LINES OF CREDIT (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||||||||||
The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of December 31, 2013, the Company had certain lines of credit that are collateralized by restricted deposits. | |||||||||||||||||
Entity with | Type of | Interest | Expiration | Credit | Unused | ||||||||||||
Facility | Facility | Rate | Date | Limitation | Credit | ||||||||||||
Trio-Tech International Pte. Ltd., Singapore | With interest rates ranging from 1.77% to 6.04% | -- | $ | 8,298 | $ | 4,731 | |||||||||||
Line of Credit | |||||||||||||||||
Trio-Tech (Malaysia) Sdn. Bhd. | With interest rates ranging from 4.60% to 8.60% | -- | $ | 914 | $ | 914 | |||||||||||
Line of Credit | |||||||||||||||||
ASSET_HELD_FOR_SALE
ASSET HELD FOR SALE | 6 Months Ended |
Dec. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
ASSET HELD FOR SALE | ' |
During the third quarter of fiscal 2011, Trio-Tech (Malaysia) Sdn. Bhd. (“TTM”), a 55% owned subsidiary of the Registrant, planned to sell the factory building in Penang, Malaysia which was being used as its testing facility before the Company moved the entire operation to Petaling Jaya, Malaysia. The Malaysia operation ceased the depreciation of that property in accordance with ASC Topic 360 Property, plant and equipment. | |
Since the market value of the factory building in Penang, Malaysia is increasing significantly, during the second quarter of fiscal 2013 TTM changed the plans of sale and concluded to hold the factory building in Penang and is looking for a tenant to rent the factory building. Hence TTM has re-classified the factory building as investment property, which then had a net book value of $135. |
RELATED_PARTY_TRANSACTION
RELATED PARTY TRANSACTION | 6 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTION (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' |
A subsidiary of SHI International Pte. Ltd. owed $515 to a related party. The loan was forgiven by the related party during the second quarter of fiscal 2012. The forgiveness of the loan amounting to $515 was recorded as additional paid in capital during the second quarter of fiscal 2013 and non-controlling interest for their portion of the related forgiveness. |
OTHER_ASSETS
OTHER ASSETS | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
OTHER ASSETS | ' | ||||||||
Dec. 31, 2013 | June 30, 2013 | ||||||||
(Unaudited) | |||||||||
Down payment for purchase of commercial property | $ | 804 | $ | - | |||||
Down payment for property, plant and equipment | 28 | 74 | |||||||
Deposit for rental and utilities | 156 | 157 | |||||||
Long term receivables | 74 | - | |||||||
Deferred tax asset | 289 | 203 | |||||||
Others | 2 | 3 | |||||||
Ending balance | $ | 1,353 | $ | 437 | |||||
OTHER_INCOME
OTHER INCOME | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
OTHER INCOME | ' | ||||||||||||||||
Other income consisted of the following: | |||||||||||||||||
Six Months Ended | Three Months Ended | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||||
Allowance for doubtful loan receivables | $ | (338 | ) | $ | - | $ | (338 | ) | $ | - | |||||||
Investment income deemed interest income | 102 | 132 | 51 | 66 | |||||||||||||
Interest income | 2 | - | 1 | - | |||||||||||||
Other rental income | 165 | 27 | 60 | 11 | |||||||||||||
Exchange gain / (loss) | 32 | 157 | (6 | ) | (21 | ) | |||||||||||
Other miscellaneous (expense) / income | (4 | ) | (6 | ) | 27 | - | |||||||||||
Total | (41 | ) | 310 | (205 | ) | 56 | |||||||||||
Other income for both the three and six months ending December 31, 2013 included $338 allowance for doubtful loan and doubtful interest receivables, as compared to nil for the same period in the last fiscal year. Investment income which was deemed to be interest income since the investment was deemed and classified as a loan receivables based on ASC Topic 310-10-25 Receivables amounted to $51 and $102 for the three and six months ending December 31, 2013, respectively, as compared to $66 and $132 for the same periods in the last fiscal year, respectively. | |||||||||||||||||
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 6 Months Ended | ||
Dec. 31, 2013 | |||
Organization And Basis Of Presentation Policies | ' | ||
Basis of presentation | ' | ||
Trio-Tech International (“the Company” or “TTI” hereafter) was incorporated in fiscal 1958 under the laws of the State of California. TTI provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia. In addition, TTI operates testing facilities in the United States. The Company also designs, develops, manufactures and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components. TTI conducts business in four business segments: Manufacturing, Testing Services, Distribution and Real Estate. In fiscal 2013 TTI conducted business in the foregoing four segments and in a fifth segment, Fabrication, which was discontinued during the fourth quarter of fiscal 2013. TTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand, China and Indonesia as follows: | |||
Ownership | Location | ||
Express Test Corporation (Dormant) | 100% | Van Nuys, California | |
Trio-Tech Reliability Services (Dormant) | 100% | Van Nuys, California | |
KTS Incorporated, dba Universal Systems (Dormant) | 100% | Van Nuys, California | |
European Electronic Test Centre (Dormant) | 100% | Dublin, Ireland | |
Trio-Tech International Pte. Ltd. | 100% | Singapore | |
Universal (Far East) Pte. Ltd. * | 100% | Singapore | |
Trio-Tech International (Thailand) Co. Ltd. * | 100% | Bangkok, Thailand | |
Trio-Tech (Bangkok) Co. Ltd. | 100% | Bangkok, Thailand | |
(49% owned by Trio-Tech International Pte. Ltd. and 51% owned by | |||
Trio-Tech International (Thailand) Co. Ltd.) | |||
Trio-Tech (Malaysia) Sdn. Bhd. | 55% | Penang and Selangor, Malaysia | |
(55% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Kuala Lumpur) Sdn. Bhd. | 55% | Selangor, Malaysia | |
(100% owned by Trio-Tech Malaysia Sdn. Bhd.) | |||
Prestal Enterprise Sdn. Bhd. | 76% | Selangor, Malaysia | |
(76% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Suzhou) Co. Ltd. * | 100% | Suzhou, China | |
Trio-Tech (Shanghai) Co. Ltd. * (Dormant) | 100% | Shanghai, China | |
Trio-Tech (Chongqing) Co. Ltd. * | 100% | Chongqing, China | |
SHI International Pte. Ltd. (Dormant) | 55% | Singapore | |
(55% owned by Trio-Tech International Pte. Ltd) | |||
PT SHI Indonesia (Dormant) | 55% | Batam, Indonesia | |
(100% owned by SHI International Pte. Ltd.) | |||
Trio-Tech (Tianjin) Co. Ltd. * | 100% | Tianjin, China | |
* 100% owned by Trio-Tech International Pte. Ltd. | |||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. All significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements are presented in U.S. dollars. The accompanying condensed consolidated financial statements do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. Operating results for the six months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2014. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report for the fiscal year ended June 30, 2013. |
ORGANIZATION_AND_BASIS_OF_PRES2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 6 Months Ended | ||
Dec. 31, 2013 | |||
Organization And Basis Of Presentation Tables | ' | ||
Subsidiaries | ' | ||
Ownership | Location | ||
Express Test Corporation (Dormant) | 100% | Van Nuys, California | |
Trio-Tech Reliability Services (Dormant) | 100% | Van Nuys, California | |
KTS Incorporated, dba Universal Systems (Dormant) | 100% | Van Nuys, California | |
European Electronic Test Centre (Dormant) | 100% | Dublin, Ireland | |
Trio-Tech International Pte. Ltd. | 100% | Singapore | |
Universal (Far East) Pte. Ltd. * | 100% | Singapore | |
Trio-Tech International (Thailand) Co. Ltd. * | 100% | Bangkok, Thailand | |
Trio-Tech (Bangkok) Co. Ltd. | 100% | Bangkok, Thailand | |
(49% owned by Trio-Tech International Pte. Ltd. and 51% owned by | |||
Trio-Tech International (Thailand) Co. Ltd.) | |||
Trio-Tech (Malaysia) Sdn. Bhd. | 55% | Penang and Selangor, Malaysia | |
(55% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Kuala Lumpur) Sdn. Bhd. | 55% | Selangor, Malaysia | |
(100% owned by Trio-Tech Malaysia Sdn. Bhd.) | |||
Prestal Enterprise Sdn. Bhd. | 76% | Selangor, Malaysia | |
(76% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Suzhou) Co. Ltd. * | 100% | Suzhou, China | |
Trio-Tech (Shanghai) Co. Ltd. * (Dormant) | 100% | Shanghai, China | |
Trio-Tech (Chongqing) Co. Ltd. * | 100% | Chongqing, China | |
SHI International Pte. Ltd. (Dormant) | 55% | Singapore | |
(55% owned by Trio-Tech International Pte. Ltd) | |||
PT SHI Indonesia (Dormant) | 55% | Batam, Indonesia | |
(100% owned by SHI International Pte. Ltd.) | |||
Trio-Tech (Tianjin) Co. Ltd. * | 100% | Tianjin, China | |
* 100% owned by Trio-Tech International Pte. Ltd. | |||
INVENTORIES_Tables
INVENTORIES (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories Tables | ' | ||||||||
Inventories | ' | ||||||||
Dec. 31, | |||||||||
2013 | June 30, | ||||||||
(Unaudited) | 2013 | ||||||||
Raw materials | $ | 1,012 | $ | 1,072 | |||||
Work in progress | 953 | 1,930 | |||||||
Finished goods | 210 | 356 | |||||||
Less: provision for obsolete inventory | (865 | ) | (912 | ) | |||||
Currency translation effect | 4 | 17 | |||||||
$ | 1,314 | $ | 2,463 | ||||||
Changes in provision for obsolete inventory | ' | ||||||||
Dec. 31, | |||||||||
2013 | June 30, | ||||||||
(Unaudited) | 2013 | ||||||||
Beginning | $ | 912 | $ | 884 | |||||
Additions charged to expenses | - | 38 | |||||||
Usage - disposition | (47 | ) | (14 | ) | |||||
Currency translation effect | - | 4 | |||||||
Ending | $ | 865 | $ | 912 |
STOCK_OPTIONS_Tables
STOCK OPTIONS (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||
Stock Options Tables | ' | ' | ||||||||||||||||||||||||||||||||
Fair value weighted average assumptions | ' | ' | ||||||||||||||||||||||||||||||||
Year Ended | Six Months Ended | |||||||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||||||||||
Expected volatility | 92.53 | % | 88.53-104.94 | % | ||||||||||||||||||||||||||||||
Risk-free interest rate | 0.26 | % | 0.3 | % | ||||||||||||||||||||||||||||||
Expected life (years) | 2.5 | 2.50-3.25 | ||||||||||||||||||||||||||||||||
Option activities | ' | ' | ||||||||||||||||||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | Options | Weighted Average | Weighted Average Remaining | Aggregate | |||||||||||||||||||||||||||
Exercise | Contractual | Intrinsic | Exercise | Contractual | Intrinsic | |||||||||||||||||||||||||||||
Price | Term (Years) | Value | Price | Term (Years) | Value | |||||||||||||||||||||||||||||
Outstanding at July 1, 2013 | 263,500 | $ | 3.06 | 1.57 | $ | 122 | Outstanding at July 1, 2012 | 313,000 | $ | 3.85 | 2.31 | $ | - | |||||||||||||||||||||
Granted | 50,000 | 3.26 | 4.87 | - | Granted | - | - | - | - | |||||||||||||||||||||||||
Exercised | (121,500 | ) | (1.90 | ) | - | (181 | ) | Exercised | - | - | - | - | ||||||||||||||||||||||
Forfeited or expired | (40,000 | ) | (4.72 | ) | - | - | Forfeited or expired | (44,000 | ) | -8.69 | - | - | ||||||||||||||||||||||
Outstanding at December 31, 2013 | 152,000 | $ | 3.61 | 2.67 | $ | 45 | Outstanding at December 31, 2012 | 269,000 | $ | 3.05 | 2.06 | $ | - | |||||||||||||||||||||
Exercisable at December 31, 2013 | 125,750 | $ | 3.72 | 2.2 | 38 | Exercisable at December 31, 2012 | 248,250 | $ | 2.95 | 1,90 | - | |||||||||||||||||||||||
Company's non-vested employee stock options | ' | ' | ||||||||||||||||||||||||||||||||
Weighted Average Grant-Date | Weighted Average Grant-Date | |||||||||||||||||||||||||||||||||
Options | Fair Value | Options | Fair Value | |||||||||||||||||||||||||||||||
Non-vested at July 1, 2013 | 20,375 | $ | 3.26 | Non-vested at July 1, 2012 | 43,250 | $ | 3.29 | |||||||||||||||||||||||||||
Granted | 50,000 | 1.65 | Granted | - | - | |||||||||||||||||||||||||||||
Vested | (44,125 | ) | (2.33 | ) | Vested | (21,375 | ) | (3.16 | ) | |||||||||||||||||||||||||
Forfeited | - | - | Forfeited | (1,125 | ) | (3.16 | ) | |||||||||||||||||||||||||||
Non-vested at December 31, 2013 | 26,250 | $ | 1.69 | Non-vested at December 31, 2012 | 20,250 | $ | 2.08 | |||||||||||||||||||||||||||
2007 Directors plan option activities | ' | ' | ||||||||||||||||||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | Options | Weighted Average | Weighted Average Remaining | Aggregate | |||||||||||||||||||||||||||
Exercise | Contractual | Intrinsic | Exercise | Contractual | Intrinsic | |||||||||||||||||||||||||||||
Price | Term (Years) | Value | Price | Term (Years) | Value | |||||||||||||||||||||||||||||
Outstanding at July 1, 2013 | 340,000 | $ | 3.53 | 1.96 | $ | 80 | Outstanding at July 1, 2012 | 385,000 | $ | 4.52 | 2.45 | $ | - | |||||||||||||||||||||
Granted | 100,000 | 3.41 | 3.41 | - | Granted | - | - | - | - | |||||||||||||||||||||||||
Exercised | -65,000 | 1.72 | - | - | Exercised | - | - | - | - | |||||||||||||||||||||||||
Forfeited or expired | (60,000 | ) | (4.81 | ) | - | - | Forfeited or expired | (60,000 | ) | (4.81 | ) | - | - | |||||||||||||||||||||
Outstanding at December 31, 2013 | 315,000 | $ | 3.62 | 3.12 | $ | 82 | Outstanding at December 31, 2012 | 325,000 | $ | 3.59 | 2.32 | $ | - | |||||||||||||||||||||
Exercisable at December 31, 2013 | 315,000 | $ | 3.62 | 3.12 | 82 | Exercisable at December 31, 2012 | 325,000 | $ | 3.59 | 2.32 | $ | - |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Earnings Per Share Tables | ' | ||||||||||||||||
Reconciliation of the weighted average shares | ' | ||||||||||||||||
Six Months Ended | Three Months Ended | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Loss attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ | (342 | ) | $ | (281 | ) | $ | (348 | ) | $ | (374 | ) | |||||
Loss attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | (40 | ) | (242 | ) | -17 | (132 | ) | ||||||||||
Net loss attributable to Trio-Tech International common shareholders | $ | (382 | ) | $ | (523 | ) | $ | (365 | ) | $ | (506 | ) | |||||
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International | $ | (0.10 | ) | (0.09) | (0.10 | ) | (0.12 | ) | |||||||||
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | (0.01 | ) | (0.07 | ) | - | (0.03 | ) | ||||||||||
Basic and diluted loss per share from net loss attributable to Trio-Tech International | $ | (0.11 | ) | $ | (0.16 | ) | $ | (0.10 | ) | $ | (0.15 | ) | |||||
Weighted average number of common shares outstanding - basic | 3,508 | 3,322 | 3,508 | 3,322 | |||||||||||||
Dilutive effect of stock options | - | - | - | - | |||||||||||||
Number of shares used to compute earnings per share - diluted | 3,508 | 3,322 | 3,508 | 3,322 |
ACCOUNTS_RECEIVABLE_AND_ALLOWA1
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts Receivable And Allowance For Doubtful Accounts Tables | ' | ||||||||
Changes in the allowance for doubtful accounts | ' | ||||||||
Dec. 31, | |||||||||
2013 | June 30, | ||||||||
(Unaudited) | 2013 | ||||||||
Beginning | $ | 139 | $ | 122 | |||||
Additions charged to expenses | 10 | 196 | |||||||
Recovered / Write-off | (3 | ) | (131 | ) | |||||
Currency translation effect | 2 | (48 | ) | ||||||
Ending | $ | 148 | $ | 139 |
WARRANTY_ACCRUAL_Tables
WARRANTY ACCRUAL (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Warranty Accrual Tables | ' | ||||||||
Warranty liability | ' | ||||||||
Dec. 31, | |||||||||
2013 | June 30, | ||||||||
(Unaudited) | 2013 | ||||||||
Beginning | $ | 61 | $ | 60 | |||||
Additions charged to cost and expenses | 18 | 1 | |||||||
Recovered | - | - | |||||||
Actual usage | (15 | ) | - | ||||||
Currency translation effect | - | - | |||||||
Ending | 64 | 61 |
INVESTMENT_PROPERTIES_Tables
INVESTMENT PROPERTIES (Tables) | 6 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Investment Properties Tables | ' | |||||||||
Companys investment in the property based on the exchange rate | ' | |||||||||
Investment Date | Investment Amount (RMB) | Investment Amount (U.S. Dollars) | ||||||||
Purchase of rental property – Property I - MaoYe | 1/4/08 | 5,554 | 917 | |||||||
Purchase of rental property – Property II - JiangHuai | 1/6/10 | 3,600 | 595 | |||||||
Purchase of rental property – Property III - Fu Li | 1/6/10 | 4,025 | 665 | |||||||
Gross investment in rental property | 13,179 | 2,177 | ||||||||
Accumulated depreciation on rental property | (2,631 | ) | (434 | ) | ||||||
Net investment in property – China | 10,548 | 1,743 | ||||||||
Investment Date | Investment Amount | Investment Amount (U.S. Dollars) | ||||||||
(RM) | ||||||||||
Purchase of rental property – Penang Property I | 31/12/2012 | 681 | 209 | |||||||
Gross investment in rental property | 681 | 209 | ||||||||
Accumulated depreciation on rental property | (294 | ) | (91 | ) | ||||||
Net investment in property – Malaysia | 387 | 118 | ||||||||
LOANS_RECEIVABLE_FROM_PROPERTY1
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Tables) | 6 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Loans Receivable From Property Development Projects Tables | ' | |||||||||
Companys loans receivable from property development projects | ' | |||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Date | (RMB) | (U.S. Dollars) | ||||||||
Investment in JiaSheng (Project B-48 Phase 2) | 31-Oct-13 | 5,000 | 826 | |||||||
Investment in JiangHuai (Project - Yu Jin Jiang An) | 31-May-13 | 2,000 | 330 | |||||||
Less : Allowance for doubtful receivables | (2,000 | ) | (330 | ) | ||||||
Net loan receivable from property development projects | 5,000 | 826 |
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 6 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Business Segments Tables | ' | |||||||||||||||||||||
BUSINESS SEGMENTS | ' | |||||||||||||||||||||
Business Segment Information: | ||||||||||||||||||||||
Six months | Operating | Depr. | ||||||||||||||||||||
Ended | Net | (Loss) | Total | and | Capital | |||||||||||||||||
Dec. 31, | Revenue | Income | Assets | Amort. | Expenditures | |||||||||||||||||
Manufacturing | 2013 | $ | 8,569 | $ | (328 | ) | $ | 10,872 | $ | 77 | $ | 221 | ||||||||||
2012 | 8,371 | (431 | ) | 9,777 | 90 | 19 | ||||||||||||||||
Testing Services | 2013 | 8,645 | 391 | 19,331 | 1,067 | 1,500 | ||||||||||||||||
2012 | 7,678 | 70 | 19,292 | 1,120 | 745 | |||||||||||||||||
Distribution | 2013 | 1,532 | 199 | 418 | - | - | ||||||||||||||||
2012 | 684 | 84 | 378 | 2 | 1 | |||||||||||||||||
Real Estate | 2013 | 90 | (45 | ) | 3,893 | 54 | - | |||||||||||||||
2012 | 63 | (121 | ) | 4,161 | 54 | - | ||||||||||||||||
Fabrication * | 2013 | - | - | 106 | - | - | ||||||||||||||||
Services | 2012 | - | (34 | ) | 367 | - | - | |||||||||||||||
Corporate & | 2013 | - | (336 | ) | 76 | - | - | |||||||||||||||
Unallocated | 2012 | - | 8 | 58 | - | - | ||||||||||||||||
Total Company | 2013 | $ | 18,836 | $ | (119 | ) | $ | 34,696 | $ | 1,198 | $ | 1,721 | ||||||||||
2012 | $ | 16,796 | $ | (424 | ) | $ | 34,033 | $ | 1,266 | $ | 765 | |||||||||||
The following segment information is unaudited for the three months ended December 31, 2013: | ||||||||||||||||||||||
Business Segment Information: | ||||||||||||||||||||||
Three months | Operating | Depr. | ||||||||||||||||||||
Ended | Net | (Loss) | Total | and | Capital | |||||||||||||||||
Dec. 31, | Revenue | Income | Assets | Amort. | Expenditures | |||||||||||||||||
Manufacturing | 2013 | $ | 4,368 | $ | (201 | ) | $ | 10,872 | $ | 38 | $ | 91 | ||||||||||
2012 | 3,079 | (191 | ) | 9,777 | 44 | 13 | ||||||||||||||||
Testing Services | 2013 | 4,597 | 289 | 19,331 | 531 | 1,146 | ||||||||||||||||
2012 | 3,769 | (34 | ) | 19,292 | 569 | 78 | ||||||||||||||||
Distribution | 2013 | 328 | 7 | 418 | - | - | ||||||||||||||||
2012 | 340 | 38 | 378 | 1 | 1 | |||||||||||||||||
Real Estate | 2013 | 46 | (22 | ) | 3,893 | 27 | - | |||||||||||||||
2012 | 33 | (57 | ) | 4,161 | 27 | - | ||||||||||||||||
Fabrication * | 2013 | - | - | 106 | - | - | ||||||||||||||||
Services | 2012 | - | (10 | ) | 367 | - | - | |||||||||||||||
Corporate & | 2013 | - | (179 | ) | 76 | - | - | |||||||||||||||
Unallocated | 2012 | - | (60 | ) | 58 | - | - | |||||||||||||||
Total Company | 2013 | $ | 9,339 | $ | (106 | ) | $ | 34,696 | $ | 596 | $ | 1,237 | ||||||||||
2012 | $ | 7,221 | $ | (314 | ) | $ | 34,033 | $ | 641 | $ | 92 | |||||||||||
* Fabrication services is a discontinued operation (Note 16) | ||||||||||||||||||||||
NONCONTROLLING_INTEREST_Tables
NON-CONTROLLING INTEREST (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Non-Controlling Interest Tables | ' | ||||||||
Equity attributable to non-controlling interest | ' | ||||||||
Dec. 31, 2013 | June 30, 2013 | ||||||||
Non-controlling interest | (Unaudited) | ||||||||
Beginning balance | $ | 1,971 | $ | 1,720 | |||||
Net income / (loss) | 98 | (83 | ) | ||||||
Dividend declared by a subsidiary | (156 | ) | 244 | ||||||
Contributions to capital by related party – loan forgiveness | - | (39 | ) | ||||||
Translation adjustment | (103 | ) | 129 | ||||||
Ending balance | $ | 1,810 | $ | 1,971 |
BANK_LOANS_PAYABLE_Tables
BANK LOANS PAYABLE (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Bank Loans Payable Tables | ' | ||||||||
Bank loans payable | ' | ||||||||
Dec. 31, 2013 | June 30, 2013 | ||||||||
(Unaudited) | |||||||||
Note payable denominated in Malaysian ringgit to a commercial bank for infrastructure investment, maturing in August 2024, bearing interest at the bank’s prime rate (5.1% at December 31, 2013) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with the net book value of Malaysian ringgit 12,133, or approximately $3,697 | 573 | 885 | |||||||
Note payable denominated in U.S. dollars to a financial institution for working capital plans in Singapore and its subsidiaries, maturing in December 2014, bearing interest at the bank’s prime rate plus 1.50% (5.1% at December 31, 2013) per annum, monthly payments of principal plus interest through December 2014. This note payable is secured by plant and equipment with the net book value of Singapore dollars 679, or approximately $537. | 2,351 | 2,498 | |||||||
Current portion | (717 | ) | (770 | ) | |||||
Long term portion of bank loans payable | $ | 2,207 | $ | 2,613 | |||||
Future minimum payments | ' | ||||||||
2013 | $ | 717 | |||||||
2014 | 152 | ||||||||
2015 | 160 | ||||||||
2016 | 168 | ||||||||
2017 | 175 | ||||||||
Thereafter | 1,552 | ||||||||
Total obligations and commitments | $ | 2,924 |
DISCONTINUED_OPERATION_AND_COR1
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Discontinued Operation And Corresponding Restructuring Plan Tables | ' | ||||||||||||||||
Loss from discontinued operations | ' | ||||||||||||||||
Six Months Ended | Three Months Ended | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||||
REVENUE | $ | - | $ | 302 | $ | - | $ | 130 | |||||||||
COST OF SALES | 3 | 578 | - | 331 | |||||||||||||
GROSS LOSS | (3 | ) | (276 | ) | - | (201 | ) | ||||||||||
OPERATING EXPENSES | |||||||||||||||||
General and administrative | 7 | 139 | 3 | 66 | |||||||||||||
Selling | - | 8 | - | 4 | |||||||||||||
Total | 7 | 147 | 3 | 70 | |||||||||||||
LOSS FROM DISCONTINUED OPERATION | (10 | ) | (423 | ) | -3 | (271 | ) | ||||||||||
OTHER INCOME | (62 | ) | -66 | -27 | 13 | ||||||||||||
LOSS FROM DISCONTINUED OPERATIONS | $ | (72 | ) | $ | (489 | ) | $ | (30 | ) | $ | (258 | ) |
LINES_OF_CREDIT_Tables
LINES OF CREDIT (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Lines Of Credit Tables | ' | ||||||||||||||||
Lines of credit | ' | ||||||||||||||||
Entity with | Type of | Interest | Expiration | Credit | Unused | ||||||||||||
Facility | Facility | Rate | Date | Limitation | Credit | ||||||||||||
Trio-Tech International Pte. Ltd., Singapore | With interest rates ranging from 1.77% to 6.04% | -- | $ | 8,298 | $ | 4,731 | |||||||||||
Line of Credit | |||||||||||||||||
Trio-Tech (Malaysia) Sdn. Bhd. | With interest rates ranging from 4.60% to 8.60% | -- | $ | 914 | $ | 914 | |||||||||||
Line of Credit |
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
Other assets | ' | ||||||||
Dec. 31, 2013 | June 30, 2013 | ||||||||
(Unaudited) | |||||||||
Down payment for purchase of commercial property | $ | 804 | $ | - | |||||
Down payment for property, plant and equipment | 28 | 74 | |||||||
Deposit for rental and utilities | 156 | 157 | |||||||
Long term receivables | 74 | - | |||||||
Deferred tax asset | 289 | 203 | |||||||
Others | 2 | 3 | |||||||
Ending balance | $ | 1,353 | $ | 437 |
OTHER_INCOME_Tables
OTHER INCOME (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
Other income | ' | ||||||||||||||||
Six Months Ended | Three Months Ended | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||||
Allowance for doubtful loan receivables | $ | (338 | ) | $ | - | $ | (338 | ) | $ | - | |||||||
Investment income deemed interest income | 102 | 132 | 51 | 66 | |||||||||||||
Interest income | 2 | - | 1 | - | |||||||||||||
Other rental income | 165 | 27 | 60 | 11 | |||||||||||||
Exchange gain / (loss) | 32 | 157 | (6 | ) | (21 | ) | |||||||||||
Other miscellaneous income | (4 | ) | (6 | ) | 27 | - | |||||||||||
Total | (41 | ) | 310 | (205 | ) | 56 |
1_ORGANIZATION_AND_BASIS_OF_PR
1. ORGANIZATION AND BASIS OF PRESENTATION (Details) | Dec. 31, 2013 |
Express Test Corporation (Dormant) | ' |
Ownership | 100.00% |
Location | 'Van Nuys, California |
Trio-Tech Reliability Services (Dormant) | ' |
Ownership | 100.00% |
Location | 'Van Nuys, California |
KTS Incorporated, dba Universal Systems (Dormant) | ' |
Ownership | 100.00% |
Location | 'Van Nuys, California |
European Electronic Test Centre (Operation ceased on November 1, 2005) | ' |
Ownership | 100.00% |
Location | 'Dublin, Ireland |
Trio-Tech International Pte. Ltd | ' |
Ownership | 100.00% |
Location | 'Singapore |
Universal (Far East) Pte. Ltd | ' |
Ownership | 100.00% |
Location | 'Singapore |
Trio-Tech International (Thailand) Co. Ltd | ' |
Ownership | 100.00% |
Location | 'Bangkok, Thailand |
Trio-Tech (Bangkok) Co. Ltd. (49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) | ' |
Ownership | 100.00% |
Location | 'Bangkok, Thailand |
Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) | ' |
Ownership | 55.00% |
Location | 'Penang and Selangor, Malaysia |
Trio-Tech (Kuala Lumpur) Sdn. Bhd. (100% owned by Trio-Tech Malaysia Sdn. Bhd.) | ' |
Ownership | 55.00% |
Location | 'Selangor, Malaysia |
Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.) | ' |
Ownership | 76.00% |
Location | 'Selangor, Malaysia |
Trio-Tech (Suzhou) Co. Ltd. | ' |
Ownership | 100.00% |
Location | 'Suzhou, China |
Trio-Tech (Shanghai) Co. Ltd. | ' |
Ownership | 100.00% |
Location | 'Shanghai, China |
Trio-Tech (Chongqing) Co. Ltd. SHI International Pte. Ltd. | ' |
Ownership | 100.00% |
Location | 'Chongqing, China |
SHI International Pte. Ltd. (55% owned by Trio-Tech International Pte. Ltd.) | ' |
Ownership | 55.00% |
Location | 'Singapore |
PT SHI Indonesia (100% owned by SHI International Pte. Ltd) | ' |
Ownership | 55.00% |
Location | 'Batam, Indonesia |
Trio-Tech (Tianjin) Co. Ltd. | ' |
Ownership | 100.00% |
Location | 'Tianjin, China |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Notes to Financial Statements | ' | ' |
Raw materials | $1,012,000 | $1,072,000 |
Work in progress | 953,000 | 1,930,000 |
Finished goods | 210,000 | 356,000 |
Less: provision for obsolete inventory | -865,000 | -912,000 |
Currency translation effect | 4,000 | 17,000 |
Inventory net | $1,314,000 | $2,463,000 |
INVENTORIES_Details_1
INVENTORIES (Details 1) (USD $) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Jun. 30, 2013 | |
Notes to Financial Statements | ' | ' |
Beginning | $912,000 | $884,000 |
Additions charged to expenses | ' | 38,000 |
Usage - disposition | -47,000 | -14,000 |
Currency translation effect | ' | 4,000 |
Ending | $865,000 | $912,000 |
STOCK_OPTIONS_Details
STOCK OPTIONS (Details) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Jun. 30, 2013 | |
Expected volatility | ' | 92.53% |
Risk-free interest rate | 30.00% | 0.26% |
Expected life (years) | ' | '2 years 6 months |
Minimum [Member] | ' | ' |
Expected volatility | ' | 88.53% |
Expected life (years) | ' | '2 years 6 months |
Maximum [Member] | ' | ' |
Expected volatility | 104.94% | ' |
Expected life (years) | '3 years 3 months | ' |
STOCK_OPTIONS_Details_1
STOCK OPTIONS (Details 1) (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Notes to Financial Statements | ' | ' |
Outstanding at July 1, 2013, Options | 263,500 | 313,000 |
Granted, Options | 50,000 | ' |
Exercised, Options | -121,500 | ' |
Forfeited or expired, Options | -40,000 | -44,000 |
Outstanding at December 31, 2013, Options | 152,000 | 269,000 |
Exercisable at December 31, 2013, Options | 125,750 | 248,250 |
Outstanding at July 1, 2013, Weighted- Average Exercise Price | $3.06 | $3.85 |
Granted, Weighted- Average Exercise Price | $3.26 | ' |
Exercised, Weighted- Average Exercise Price | ($1.90) | ' |
Forfeited or expired, Weighted- Average Exercise Price | ($4.72) | ($8.69) |
Outstanding at December 31, 2013, Weighted- Average Exercise Price | $3.61 | $3.05 |
Exercisable at December 31, 2013, Weighted- Average Exercise Price | $3.72 | $2.95 |
Outstanding at July 1, 2013, Weighted - Average Remaining Contractual Term (Years) | '1 year 6 months 26 days | '2 years 3 months 22 days |
Granted, Weighted - Average Remaining Contractual Term (Years) | '4 years 10 months 13 days | ' |
Outstanding at December 31, 2013, Weighted - Average Remaining Contractual Term (Years) | '2 years 8 months 1 day | '2 years 0 months 22 days |
Exercisable at December 31, 2013, Weighted - Average Remaining Contractual Term (Years) | '2 years 2 months 12 days | '1 year 10 months 24 days |
Outstanding at July 1, 2013, Aggregate Intrinsic Value | $122,000 | ' |
Granted, Aggregate Intrinsic Value | ' | ' |
Exercised, Aggregate Intrinsic Value | -181,000 | ' |
Forfeited or expired, Aggregate Intrinsic Value | ' | ' |
Outstanding at December 31, 2013, Aggregate Intrinsic Value | 45,000 | ' |
Exercisable at December 31, 2013, Aggregate Intrinsic Value | $38,000 | ' |
STOCK_OPTIONS_Details_2
STOCK OPTIONS (Details 2) (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Notes to Financial Statements | ' | ' |
Non-vested at July 1, 2013, Options | 20,375 | 43,250 |
Granted, Options | 50,000 | ' |
Vested, Options | -44,125 | -21,375 |
Forfeited, Options | ' | -1,125 |
Non-vested at December 31, 2013, Options | 26,250 | 20,250 |
Non-vested at July 1, 2013, Weighted-Average Grant-Date Fair Value | $3.26 | $3.29 |
Granted, Options, Weighted-Average Grant-Date Fair Value | $1.65 | ' |
Vested, Options, Weighted-Average Grant-Date Fair Value | ($2.33) | ($3.16) |
Forfeited, Options, Weighted-Average Grant-Date Fair Value | ' | ($3.16) |
Non-vested at December 31, 2013, Options , Weighted-Average Grant-Date Fair Value | $1.69 | $2.08 |
STOCK_OPTIONS_Details_3
STOCK OPTIONS (Details 3) (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Notes to Financial Statements | ' | ' |
Outstanding at July 1, 2013, Options | 340,000 | 385,000 |
Granted, Options | 100,000 | ' |
Exercised, Options | -65,000 | ' |
Forfeited or expired, Options | -60,000 | -60,000 |
Outstanding at December 31, 2013, Options | 315,000 | 325,000 |
Exercisable at December 31, 2013, Options | 315,000 | 325,000 |
Outstanding at July 1, 2013, Weighted- Average Exercise Price | $3.53 | $4.52 |
Granted, Weighted- Average Exercise Price | $3.41 | ' |
Exercised, Weighted- Average Exercise Price | $1.72 | ' |
Forfeited or expired, Weighted- Average Exercise Price | ($4.81) | ($4.81) |
Outstanding at December 31, 2013, Weighted- Average Exercise Price | $3.62 | $3.59 |
Exercisable at December 31, 2013, Weighted- Average Exercise Price | $3.62 | $3.59 |
Outstanding at July 1, 2013, Weighted - Average Remaining Contractual Term (Years) | '1 year 11 months 16 days | '2 years 5 months 12 days |
Granted, Weighted - Average Remaining Contractual Term (Years) | '3 years 4 months 28 days | ' |
Outstanding at December 31, 2013, Weighted - Average Remaining Contractual Term (Years) | '3 years 1 month 13 days | '2 years 3 months 26 days |
Exercisable at December 31, 2013, Weighted - Average Remaining Contractual Term (Years) | '3 years 1 month 13 days | '2 years 3 months 26 days |
Outstanding at July 1, 2013, Aggregate Intrinsic Value | $80,000 | ' |
Granted, Aggregate Intrinsic Value | ' | ' |
Exercised, Aggregate Intrinsic Value | ' | ' |
Forfeited or expired, Aggregate Intrinsic Value | ' | ' |
Outstanding at December 31, 2013, Aggregate Intrinsic Value | 82,000 | ' |
Exercisable at December 31, 2013, Aggregate Intrinsic Value | $82,000 | ' |
STOCK_OPTIONS_Details_Narrativ
STOCK OPTIONS (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Exercised during period | ' | 121,500 | ' |
Stock-based compensation expense | ' | $200,000 | $19,000 |
Proceeds from stock options exercised | ' | 342,000 | ' |
Employee 2007 [Member] | ' | ' | ' |
Shares authorized | 600,000 | 600,000 | ' |
Options granted | 35,000 | 15,000 | ' |
Fair value of shares granted during period | 3,000 | 22,000 | ' |
Fair value of shares granted during period | $2.04 | $1.52 | ' |
Stock-based compensation expense | ' | ' | 19,000 |
Unamortized stock-based compensation | 17,000 | 17,000 | ' |
Vested stock options | 125,750 | 125,750 | 248,250 |
Weighted-average exercise price, vested options | $3.72 | $3.72 | $2.95 |
Weighted average contractual term, vested options | ' | '2 years 2 months 10 days | '1 year 8 months 10 days |
Fair value of stock options, vested and outstanding | 467,000 | 467,000 | 496,000 |
Stock issued upon exercise of options | ' | 121,500 | ' |
Fair value options exercised | ' | 181,000 | ' |
Proceeds from stock options exercised | ' | 230,000 | ' |
Director 2007 [Member] | ' | ' | ' |
Shares authorized | 500,000 | 500,000 | ' |
Options granted | 40,000 | ' | ' |
Fair value of shares granted during period | 83,000 | ' | ' |
Fair value of shares granted during period | $1.61 | ' | ' |
Exercised during period | ' | 65,000 | ' |
Stock-based compensation expense | ' | 175,000 | ' |
Vested stock options | 315,000 | 315,000 | 325,000 |
Weighted-average exercise price, vested options | $3.62 | $3.62 | $3.59 |
Weighted average contractual term, vested options | ' | '3 years 2 months 25 days | '2 years 2 months 19 days |
Fair value of stock options, vested and outstanding | 1,140,000 | 1,140,000 | 698,000 |
Proceeds from stock options exercised | ' | $112,000 | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Notes to Financial Statements | ' | ' | ' | ' |
Loss attributable to Trio-Tech International common shareholders from continuing operations, net of tax | ($348,000) | ($374,000) | ($342,000) | ($281,000) |
Loss attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | -17,000 | -132,000 | -40,000 | -242,000 |
Net loss attributable to Trio-Tech International common shareholders | ($365,000) | ($506,000) | ($382,000) | ($523,000) |
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International | ($0.10) | ($0.12) | ($0.10) | ($0.09) |
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | ' | ($0.03) | ($0.01) | ($0.07) |
Basic and diluted loss per share from net loss attributable to Trio-Tech International | ($0.10) | ($0.15) | ($0.11) | ($0.16) |
Weighted average number of common shares outstanding basic | 3,508 | 3,322 | 3,508 | 3,322 |
Dilutive effect of stock options | ' | ' | ' | ' |
Number of shares used to compute earnings per share diluted | 3,508 | 3,322 | 3,508 | 3,322 |
EARNINGS_PER_SHARE_Details_Nar
EARNINGS PER SHARE (Details Narrative) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Options to purchase shares of Common Stock | 467,000 | 594,000 |
Minimum Member | ' | ' |
Exercise Price | 1.72 | 1.72 |
Maximum Member | ' | ' |
Exercise Price | 9.57 | 9.57 |
ACCOUNTS_RECEIVABLE_AND_ALLOWA2
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Jun. 30, 2013 | |
Notes to Financial Statements | ' | ' |
Beginning | $139,000 | $122,000 |
Additions charged to expenses | 10,000 | 196,000 |
Recovered/Write-Off | -3,000 | -131,000 |
Currency translation effect | 2,000 | -48,000 |
Ending | $148,000 | $139,000 |
WARRANTY_ACCRUAL_Details
WARRANTY ACCRUAL (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Jun. 30, 2013 | |
Notes to Financial Statements | ' | ' |
Beginning | $61,000 | $60,000 |
Additions charged to cost and expenses | 18,000 | 1,000 |
Recovered | ' | ' |
Actual usage | -15,000 | ' |
Currency translation effect | ' | ' |
Ending | $64,000 | $61,000 |
INCOME_TAX_Details_Narrative
INCOME TAX (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income Tax Expense Benefit | $39,000 | ($2,000) | $82,000 | $122,000 |
INVESTMENT_PROPERTIES_Details
INVESTMENT PROPERTIES (Details) (USD $) | Dec. 31, 2013 |
China RMB[Member] | ' |
Gross investment in rental property | $13,179,000 |
Accumulated depreciation on rental property | -2,631,000 |
Net investment in property | 10,548,000 |
China USD [Member] | ' |
Gross investment in rental property | 2,177,000 |
Accumulated depreciation on rental property | -434,000 |
Net investment in property | 1,743,000 |
Malaysia RM [Member] | ' |
Gross investment in rental property | 681,000 |
Accumulated depreciation on rental property | -294,000 |
Net investment in property | 387,000 |
Malaysia USD [Member] | ' |
Gross investment in rental property | 209,000 |
Accumulated depreciation on rental property | -91,000 |
Net investment in property | 118,000 |
MaoYe [Member] | ' |
Investment Date | 4-Jan-08 |
Investment Amount (RMB) | 5,554,000 |
Investment Amount (U.S. Dollars) | 917,000 |
JiangHuai [Member] | ' |
Investment Date | 6-Jan-10 |
Investment Amount (RMB) | 3,600,000 |
Investment Amount (U.S. Dollars) | 595,000 |
FuLi [Member] | ' |
Investment Date | 6-Jan-10 |
Investment Amount (RMB) | 4,025,000 |
Investment Amount (U.S. Dollars) | 665,000 |
Penang [Member] | ' |
Investment Date | 31-Dec-12 |
Investment Amount (U.S. Dollars) | 209,000 |
Investment Amount (RM) | $681,000 |
INVESTMENT_PROPERTIES_Details_
INVESTMENT PROPERTIES (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Rental income | $46,000 | $33,000 | $90,000 | $63,000 |
Factory reclassified to investment property | 118,000 | ' | ' | ' |
Depreciation expenses | 26,000 | 28,000 | 54,000 | 54,000 |
MaoYe RMB [Member] | ' | ' | ' | ' |
Cash purchase price | ' | ' | 5,554,000 | ' |
Rental agreement term | '5 years | ' | ' | ' |
Annual rent increase | 8.00% | ' | ' | ' |
Rental income | 179,000 | 135,000 | 350,000 | 269,000 |
MaoYe USD [Member] | ' | ' | ' | ' |
Cash purchase price | ' | ' | 917,000 | ' |
Rental income | 29,000 | 22,000 | 57,000 | 43,000 |
JiangJuai RMB [Member] | ' | ' | ' | ' |
Cash purchase price | ' | ' | 3,600,000 | ' |
Rental agreement term | ' | '1 year | ' | ' |
Arranged rental agreement income | ' | ' | 720,000 | ' |
Rental income | 27,000 | 0 | 55,000 | 0 |
JiangJuai USD [Member] | ' | ' | ' | ' |
Cash purchase price | ' | ' | 595,000 | ' |
Arranged rental agreement income | ' | ' | 118,000 | ' |
Rental income | 5,000 | 0 | 9,000 | 0 |
Fu Li RMB [Member] | ' | ' | ' | ' |
Cash purchase price | ' | ' | 4,025,000 | ' |
Rental income | 74,000 | 70,000 | 147,000 | 127,000 |
Fu Li USD [Member] | ' | ' | ' | ' |
Cash purchase price | ' | ' | 665,000 | ' |
Rental income | $12,000 | $11,000 | $24,000 | $20,000 |
LOANS_RECEIVABLE_FROM_PROPERTY2
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) (USD $) | Dec. 31, 2013 |
JiaSheng RMB [Member] | ' |
Net loan receivable from property development projects | $5,000,000 |
Net loan receivable from property development projects | 5,000,000 |
JiaSheng US [Member] | ' |
Loan Date | '2013-10-31 |
Net loan receivable from property development projects | 826,000 |
Net loan receivable from property development projects | 826,000 |
JiangHuai RMB [Member] | ' |
Net loan receivable from property development projects | 2,000,000 |
Allowance for doubtful receivables | -2,000,000 |
JiangHuai US [Member] | ' |
Loan Date | '2013-05-31 |
Net loan receivable from property development projects | 330,000 |
Allowance for doubtful receivables | ($330,000) |
LOANS_RECEIVABLE_FROM_PROPERTY3
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Loan income receivable | ($205,000) | $56,000 | ($41,000) | $310,000 |
Other income | 46,000 | 33,000 | 90,000 | 63,000 |
JiaSheng RMB [Member] | ' | ' | ' | ' |
Loan income receivable | ' | ' | 5,000,000 | ' |
Guaranteed income | ' | ' | 1,250,000 | ' |
Other income | ' | ' | 625,000 | ' |
JiaSheng [Member] | ' | ' | ' | ' |
Loan income receivable | ' | ' | 826,000 | ' |
Guaranteed income | ' | ' | 196,000 | ' |
Other income | ' | ' | 102,000 | ' |
JiangHuai RMB [Member] | ' | ' | ' | ' |
Loan income receivable | ' | ' | 2,000,000 | ' |
Guaranteed income | ' | ' | 400,000 | ' |
Other income | ' | ' | ' | ' |
Allwance for doubtful receivables | ' | ' | 330,000 | ' |
JiangHuai [Member] | ' | ' | ' | ' |
Loan income receivable | ' | ' | 330,000 | ' |
Guaranteed income | ' | ' | 66,000 | ' |
Other income | ' | ' | ' | $26,000 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net revenue | $9,339,000 | $7,221,000 | $18,836,000 | $16,796,000 |
Operating (loss) income | -106,000 | -314,000 | -119,000 | -424,000 |
Total assets | 34,696,000 | 34,033,000 | 34,696,000 | 34,033,000 |
Depreciation and amortization | 596,000 | 641,000 | 1,198,000 | 1,266,000 |
Capital expenditures | 1,237,000 | 92,000 | 1,721,000 | 765,000 |
Manufacturing [Member] | ' | ' | ' | ' |
Net revenue | 4,368,000 | 3,079,000 | 8,569,000 | 8,371,000 |
Operating (loss) income | -201,000 | -191,000 | -328,000 | -431,000 |
Total assets | 10,872,000 | 9,777,000 | 10,872,000 | 9,777,000 |
Depreciation and amortization | 38,000 | 44,000 | 77,000 | 90,000 |
Capital expenditures | 91,000 | 13,000 | 221,000 | 19,000 |
Testing Services [Member] | ' | ' | ' | ' |
Net revenue | 4,597,000 | 3,769,000 | 8,645,000 | 7,678,000 |
Operating (loss) income | 289,000 | -34,000 | 391,000 | 70,000 |
Total assets | 19,331,000 | 19,292,000 | 19,331,000 | 19,292,000 |
Depreciation and amortization | 531,000 | 569,000 | 1,067,000 | 1,120,000 |
Capital expenditures | 1,146,000 | 78,000 | 1,500,000 | 745,000 |
Distribution [Member] | ' | ' | ' | ' |
Net revenue | 328,000 | 340,000 | 1,532,000 | 684,000 |
Operating (loss) income | 7,000 | 38,000 | 199,000 | 84,000 |
Total assets | 418,000 | 378,000 | 418,000 | 378,000 |
Depreciation and amortization | ' | 1,000 | ' | 2,000 |
Capital expenditures | ' | 1,000 | ' | 1,000 |
RealEstate [Member] | ' | ' | ' | ' |
Net revenue | 46,000 | 33,000 | 90,000 | 63,000 |
Operating (loss) income | -22,000 | -57,000 | -45,000 | -121,000 |
Total assets | 3,893,000 | 4,161,000 | 3,893,000 | 4,161,000 |
Depreciation and amortization | 27,000 | 27,000 | 54,000 | 54,000 |
Capital expenditures | ' | ' | ' | ' |
Fabrication Services [Member] | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' |
Operating (loss) income | ' | ' | ' | -34,000 |
Total assets | ' | ' | 106,000 | 367,000 |
Depreciation and amortization | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' |
CorporateAndUnallocated [Member] | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' |
Operating (loss) income | -179,000 | -60,000 | -336,000 | 8,000 |
Total assets | 76,000 | 58,000 | 76,000 | 58,000 |
Depreciation and amortization | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' |
BUSINESS_SEGMENTS_Details_1
BUSINESS SEGMENTS (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net revenue | $9,339,000 | $7,221,000 | $18,836,000 | $16,796,000 |
Operating (loss) income | -106,000 | -314,000 | -119,000 | -424,000 |
Total assets | 34,696,000 | 34,033,000 | 34,696,000 | 34,033,000 |
Depreciation and amortization | 596,000 | 641,000 | 1,198,000 | 1,266,000 |
Capital expenditures | 1,237,000 | 92,000 | 1,721,000 | 765,000 |
Manufacturing [Member] | ' | ' | ' | ' |
Net revenue | 4,368,000 | 3,079,000 | 8,569,000 | 8,371,000 |
Operating (loss) income | -201,000 | -191,000 | -328,000 | -431,000 |
Total assets | 10,872,000 | 9,777,000 | 10,872,000 | 9,777,000 |
Depreciation and amortization | 38,000 | 44,000 | 77,000 | 90,000 |
Capital expenditures | 91,000 | 13,000 | 221,000 | 19,000 |
Testing Services [Member] | ' | ' | ' | ' |
Net revenue | 4,597,000 | 3,769,000 | 8,645,000 | 7,678,000 |
Operating (loss) income | 289,000 | -34,000 | 391,000 | 70,000 |
Total assets | 19,331,000 | 19,292,000 | 19,331,000 | 19,292,000 |
Depreciation and amortization | 531,000 | 569,000 | 1,067,000 | 1,120,000 |
Capital expenditures | 1,146,000 | 78,000 | 1,500,000 | 745,000 |
Distribution [Member] | ' | ' | ' | ' |
Net revenue | 328,000 | 340,000 | 1,532,000 | 684,000 |
Operating (loss) income | 7,000 | 38,000 | 199,000 | 84,000 |
Total assets | 418,000 | 378,000 | 418,000 | 378,000 |
Depreciation and amortization | ' | 1,000 | ' | 2,000 |
Capital expenditures | ' | 1,000 | ' | 1,000 |
RealEstate [Member] | ' | ' | ' | ' |
Net revenue | 46,000 | 33,000 | 90,000 | 63,000 |
Operating (loss) income | -22,000 | -57,000 | -45,000 | -121,000 |
Total assets | 3,893,000 | 4,161,000 | 3,893,000 | 4,161,000 |
Depreciation and amortization | 27,000 | 27,000 | 54,000 | 54,000 |
Capital expenditures | ' | ' | ' | ' |
Fabrication [Member] | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' |
Operating (loss) income | ' | -10,000 | ' | ' |
Total assets | 106,000 | 367,000 | ' | ' |
Depreciation and amortization | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' |
CorporateAndUnallocated [Member] | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' |
Operating (loss) income | -179,000 | -60,000 | -336,000 | 8,000 |
Total assets | 76,000 | 58,000 | 76,000 | 58,000 |
Depreciation and amortization | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' |
BUSINESS_SEGMENTS_Details_Narr
BUSINESS SEGMENTS (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Segments Details Narrative | ' | ' | ' | ' |
Other income | $46,000 | $33,000 | $90,000 | $63,000 |
Total inter-segment revenue | $48,000 | $91,000 | $196,000 | $399,000 |
NONCONTROLLING_INTEREST_Detail
NON-CONTROLLING INTEREST (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Jun. 30, 2013 | |
Notes to Financial Statements | ' | ' |
Beginning balance | $1,971,000 | $1,720,000 |
Net income/(loss) | 98,000 | -83,000 |
Translation adjustment | -103,000 | -39,000 |
Dividend declared by subsidiary | -156,000 | 244,000 |
Contributions to capital by related party - loan forgiveness | ' | 515,000 |
Ending balance | $1,810,000 | $1,971,000 |
BANK_LOANS_PAYABLE_Details
BANK LOANS PAYABLE (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Notes to Financial Statements | ' | ' |
Note payable denominated in Malaysian ringgit to a commercial bank for infrastructure investment, maturing in August 2024, bearing interest at the bankbs prime rate (5.1% at December 31, 2013) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building, with NBV of RM 12,133 or approx. $3,697. | $573,000 | $885,000 |
Note payable denominated in U.S. dollars to a financial institution for working capital plans in Singapore and its subsidiaries, maturing in December 2014, bearing interest at the bankbs prime rate plus 1.50% (5.1% at December 31, 2013) per annum, monthly payments of principal plus interest through December 2014. This note payable is secured by plant and equipment with the net book value of Singapore dollars 679, or approximately $537. | 2,351,000 | 2,498,000 |
Current portion | -717,000 | -770,000 |
Long term portion of bank loans payable | $2,207,000 | $2,613,000 |
BANK_LOANS_PAYABLE_Details_1
BANK LOANS PAYABLE (Details 1) (USD $) | Dec. 31, 2013 |
Notes to Financial Statements | ' |
2013 | $717,000 |
2014 | 152,000 |
2015 | 160,000 |
2016 | 168,000 |
2017 | 175,000 |
Thereafter | 1,552,000 |
Total obligations and commitments | $2,924,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $) | Dec. 31, 2013 |
Malaysia_RMB [Member] | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | $110,000 |
Malaysia US [Member] | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | 34,000 |
TianjinRMB [Member] | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | 53,000 |
TianjnUS [Member] | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | $9,000 |
DISCONTINUED_OPERATION_AND_COR2
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Notes to Financial Statements | ' | ' | ' | ' |
Revenue | ' | $130,000 | ' | $302,000 |
Cost of sales | ' | 331,000 | 3,000 | 578,000 |
Gross loss | ' | -201,000 | -3,000 | -276,000 |
General and administrative | 3,000 | 66,000 | 7,000 | 139,000 |
Selling | ' | 4,000 | ' | 8,000 |
Total | 3,000 | 70,000 | 7,000 | 147,000 |
Loss from discontinued operation | -3,000 | -271,000 | -10,000 | -423,000 |
Other income | -27,000 | 13,000 | -62,000 | -66,000 |
Loss from discontinued operations, net of tax | ($17,000) | ($132,000) | ($40,000) | ($242,000) |
DISCONTINUED_OPERATION_AND_COR3
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Notes to Financial Statements | ' | ' | ' | ' |
Outstanding balance of accounts payable, discontinued operations | $387,000 | ' | $387,000 | ' |
Outstanding balance accounts receivable, discontinued operations | 61,000 | ' | 61,000 | ' |
General and administrative expenses, discontinued operations | $3,000 | $70,000 | $7,000 | $147,000 |
INVESTMENTS_Details_Narrative
INVESTMENTS (Details Narrative) (USD $) | Dec. 31, 2013 |
Cash offset Received | $827,000 |
Net investment | 1,653,000 |
Agreement purchase price, non-monetary consideration | 1,634 |
Agreement purchase price, cash consideration | 1,307 |
Acquisition percentage | 10.00% |
Investment reduced | 23,000 |
Receivables | 827,000 |
Carrying value of investment | 804,000 |
Malaysia_RMB [Member] | ' |
Cash offset Received | 5,000,000 |
Net investment | 10,000,000 |
Agreement purchase price, non-monetary consideration | 10,000 |
Agreement purchase price, cash consideration | 8,000 |
Acquisition percentage | 10.00% |
Investment reduced | 137,000 |
Receivables | 5,000,000 |
Carrying value of investment | $4,863,000 |
LINES_OF_CREDIT_Details
LINES OF CREDIT (Details) (USD $) | 6 Months Ended |
Dec. 31, 2013 | |
TrioTech Singapore [Member] | ' |
Type of facility | 'Line of Credit |
Interst rate | 'With interest rates ranging from 1.77% to 6.04% |
Expiration date | '- |
Credit limitation | $8,298,000 |
Unused credit | 4,731,000 |
TrioTech Malaysia [Member] | ' |
Type of facility | 'Line of Credit |
Interst rate | 'With interest rates ranging from 4.60% to 8.60% |
Expiration date | '- |
Credit limitation | 914,000 |
Unused credit | $914,000 |
RELATED_PARTY_TRANSACTION_Deta
RELATED PARTY TRANSACTION (Details Narrative) (USD $) | Dec. 31, 2013 |
Notes to Financial Statements | ' |
Other payable related party | $515,000 |
Related Party receivable forgiveness | $515,000 |
OTHER_ASSETS_Other_assets_Deta
OTHER ASSETS - Other assets (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Down payment for purchase of commercial property | $804,000 | ' |
Down payment for property, plant and equipment | 28,000 | 74,000 |
Deposit for rental and utilities | 156,000 | 157,000 |
Long term receivables | 74,000 | ' |
Deferred tax asset | 289,000 | 203,000 |
Others | 2,000 | 3,000 |
Ending balance | $1,353,000 | $437,000 |
OTHER_INCOME_Details
OTHER INCOME (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Income Details | ' | ' | ' | ' |
Allowance for doubtful loan receivables | ($338,000) | ' | ($338,000) | ' |
Investment income deemed interest income | 51,000 | 66,000 | 102,000 | 132,000 |
Interest income | 1,000 | ' | 2,000 | ' |
Other rental income | 60,000 | 11,000 | 165,000 | 27,000 |
Exchange gain / (loss) | -6,000 | -21,000 | 32,000 | 157,000 |
Other miscellaneous (expense) / income | 27,000 | ' | -4,000 | -6,000 |
Total | ($205,000) | $56,000 | ($41,000) | $310,000 |
OTHER_INCOME_Details_Narrative
OTHER INCOME (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Allowance for doubtful loan | $338,000 | ' | $338,000 | ' |
Other investment income | $51,000 | $66,000 | $102,000 | $132,000 |