Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 30, 2014 | Nov. 12, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'TRIO-TECH INTERNATIONAL | ' |
Entity Central Index Key | '0000732026 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
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 Common Stock, Shares Outstanding | ' | 3,513,055 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2015 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $2,157 | $2,938 |
Short-term deposits | 104 | 102 |
Trade accounts receivable, less allowance for doubtful accounts of $485 and $438 | 7,850 | 8,625 |
Other receivables | 413 | 311 |
Loans receivable from property development projects - short term | ' | ' |
Inventories, less provision for obsolete inventory of $841 and $844 | 1,494 | 1,106 |
Prepaid expenses and other current assets | 260 | 205 |
Total current assets | 12,278 | 13,287 |
NON-CURRENT ASSETS | ' | ' |
Deferred tax asset | 382 | 388 |
Investments | ' | ' |
Investment properties, Net | 1,752 | 1,765 |
Property, plant and equipment, net | 13,326 | 13,541 |
Loans receivable from property development projects - long term | 814 | 805 |
Other assets | 1,306 | 1,263 |
Restricted term deposits | 3,477 | 3,541 |
Total non-current assets | 21,057 | 21,303 |
TOTAL ASSETS | 33,335 | 34,590 |
CURRENT LIABILITIES: | ' | ' |
Lines of credit | 3,048 | 3,767 |
Accounts payable | 3,244 | 3,162 |
Accrued expenses | 2,685 | 3,046 |
Income taxes payable | 216 | 214 |
Current portion of bank loans payable | 292 | 448 |
Current portion of capital leases | 71 | 81 |
Total current liabilities | 9,556 | 10,718 |
NON-CURRENT LIABILITIES | ' | ' |
Bank loans payable, net of current portion | 2,504 | 2,598 |
Capital leases, net of current portion | 185 | 200 |
Deferred tax liabilities | 129 | 202 |
Other non-current liabilities | 39 | 39 |
Total non-current liabilities | 2,857 | 3,039 |
TOTAL LIABILITIES | 12,413 | 13,757 |
Commitment and contingencies | ' | ' |
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: | ' | ' |
Common stock, no par value, 15,000,000 shares authorized; 3,513,055 shares issued and outstanding as at September 30, 2014 and June 30, 2014 | 10,882 | 10,882 |
Paid-in capital | 2,981 | 2,972 |
Accumulated retained earnings | 1,589 | 1,725 |
Accumulated other comprehensive gain-translation adjustments | 3,625 | 3,522 |
Total Trio-Tech International shareholders' equity | 19,077 | 19,101 |
Non-controlling interest | 1,845 | 1,732 |
TOTAL EQUITY | 20,922 | 20,833 |
TOTAL LIABILITIES AND EQUITY | $33,335 | $34,590 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $485 | $438 |
Provision for obsolete inventory | $841 | $844 |
Common stock, Authorized | 15,000,000 | 15,000,000 |
Common stock, Issued | 3,513,055 | 3,513,055 |
Common stock, outstanding | 3,513,055 | 3,513,055 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue | ' | ' |
Products | $3,432 | $5,405 |
Testing services | 4,618 | 4,048 |
Others | 43 | 44 |
Total | 8,093 | 9,497 |
Cost of Sales | ' | ' |
Cost of products sold | 3,213 | 4,346 |
Cost of testing services rendered | 3,049 | 3,025 |
Others | 34 | 35 |
Total | 6,296 | 7,406 |
Gross Margin | 1,797 | 2,091 |
Operating Expenses | ' | ' |
General and administrative | 1,738 | 1,834 |
Selling | 131 | 205 |
Research and development | 47 | 52 |
Impairment loss of property, plant and equipment | 15 | ' |
Loss on disposal of property, plant and equipment | ' | 13 |
Total operating expenses | 1,931 | 2,104 |
Loss from Operations | -134 | -13 |
Other Income / (Expenses) | ' | ' |
Interest expenses | -64 | -68 |
Other income, net | 46 | 164 |
Total other (expenses) / income | -18 | 96 |
(Loss) / Income from Continuing Operations before Income Taxes | -152 | 83 |
Income Tax Benefits | 46 | 43 |
(Loss) / income from continuing operations before non-controlling interest, net of tax | -106 | 126 |
Other Operating Activities | ' | ' |
Equity in earnings of unconsolidated jointB venture, net of tax | ' | ' |
Discontinued Operations (Note 19) | ' | ' |
Income / (Loss) from discontinued operations, net of tax | 26 | -42 |
NET (LOSS) / INCOME | -80 | 84 |
Less: net income attributable to the non-controlling interest | 56 | 101 |
Net Loss Attributable to Trio-Tech International Common Shareholders | -136 | -17 |
Amounts Attributable to Trio-Tech International Common Shareholders: | ' | ' |
(Loss) / income from continuing operations, net of tax | -150 | 6 |
Income / (loss) from discontinued operations, net of tax | 14 | -23 |
Net Loss Attributable to Trio-Tech International Common Shareholders | -136 | -17 |
Comprehensive Income / (Loss) Attributable to Trio-Tech International Common Shareholders: | ' | ' |
Net (loss) / income | -80 | 84 |
Foreign currency translation, net of tax | 160 | -183 |
Comprehensive Income / (Loss) | 80 | -99 |
Less: comprehensive income / (loss) attributable to the non-controlling interest | 113 | -4 |
Comprehensive Loss Attributable to Trio-Tech International Common Shareholders | ($33) | ($95) |
Basic and Diluted Loss per share: | ' | ' |
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International | ($0.04) | ' |
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | ' | ($0.01) |
Basic and Diluted Loss per Share from Net Loss Attributable to Trio-Tech International | ($0.04) | ($0.01) |
Weighted average number of common shares outstanding | ' | ' |
Basic | 3,513 | 3,399 |
Dilutive effect of stock options | ' | ' |
Number of shares used to compute earnings per share diluted | 3,513 | 3,399 |
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, 2013 | $10,531 | $2,756 | $1,668 | $3,680 | $1,971 | $20,606 |
Beginning Balance, Shares at Jun. 30, 2013 | 3,322 | ' | ' | ' | ' | ' |
Stock option expenses | ' | 216 | ' | ' | ' | 216 |
Net income | ' | ' | 57 | ' | 144 | 201 |
Translation adjustment | ' | ' | ' | -158 | -70 | -228 |
Dividends declared by subsidiary | ' | ' | ' | ' | -313 | -313 |
Stock options exercised, amount | 351 | ' | ' | ' | ' | 351 |
Stock options exercised, Shares | 191 | ' | ' | ' | ' | ' |
Ending Balance, Amount at Jun. 30, 2014 | 10,882 | 2,972 | 1,725 | 3,522 | 1,732 | 20,833 |
Ending Balance, Shares at Jun. 30, 2014 | 3,513 | ' | ' | ' | ' | ' |
Stock option expenses | ' | 9 | ' | ' | ' | 9 |
Net income | ' | ' | -136 | ' | 56 | -80 |
Translation adjustment | ' | ' | ' | 103 | 57 | 160 |
Ending Balance, Amount at Sep. 30, 2014 | $10,882 | $2,981 | $1,589 | $3,625 | $1,845 | $20,922 |
Ending Balance, Shares at Sep. 30, 2014 | 3,513 | ' | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 |
Cash Flow from Operating Activities | ' | ' | ' |
Net (loss) / income | ($80) | $84 | $201 |
Depreciation and amortization | 623 | 602 | ' |
Stock compensation | 9 | 114 | ' |
Inventory provision / (reversal) | 8 | -17 | ' |
Bad debt provision / (reversal) | 55 | -3 | ' |
Accrued interest expense, net of accrued interest income | 24 | 3 | ' |
Impairment loss of property, plant and equipment | 15 | ' | ' |
Loss on disposal of property, plant and equipment | ' | 13 | ' |
Warranty expense, net | 6 | 4 | ' |
Deferred tax benefit | -77 | -64 | ' |
Changes in operating assets and liabilities, net of acquisition effects | ' | ' | ' |
Accounts receivables | 728 | -266 | ' |
Other receivables | -102 | 599 | ' |
Other assets | -42 | -364 | ' |
Inventories | -413 | 524 | ' |
Prepaid expenses and other current assets | -55 | -52 | ' |
Accounts payable and accrued liabilities | -234 | 25 | ' |
Income tax payable | 1 | -12 | ' |
Other non-current liabilities | ' | 23 | ' |
Net cash provided by operating activities | 466 | 1,213 | ' |
Cash Flow from Investing Activities | ' | ' | ' |
Additions to property, plant and equipment | -467 | -484 | ' |
Proceeds from disposal of plant, property and equipment | ' | 28 | ' |
Net cash used in investing activities | -467 | -456 | ' |
Cash Flow from Financing Activities | ' | ' | ' |
Repayment on lines of credit | -689 | -869 | ' |
Repayment of bank loans and capital leases | -261 | -285 | ' |
Proceeds from long-term bank loans | ' | 66 | ' |
Proceeds from exercising stock options | ' | 134 | ' |
Net cash used in financing activities | -950 | -954 | ' |
Effect of Changes in Exchange Rate | 171 | -75 | ' |
NET DECREASE IN CASH | -781 | -272 | ' |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,938 | 2,793 | 2,793 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,157 | 2,521 | 2,938 |
Cash paid during the period for Interest | 66 | 68 | ' |
Cash paid during the period for Income taxes | 18 | 19 | ' |
Non-Cash Transactions | ' | ' | ' |
Capital lease of property, plant and equipment | ' | $66 | ' |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended | |||
Sep. 30, 2014 | ||||
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 year 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. In the first quarter of fiscal year 2015, TTI conducted business in four business segments: Manufacturing, Testing Services, Distribution and Real Estate. TTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand and China 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 un-audited 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 three months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2015. 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, 2014. | ||||
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended | ||
Sep. 30, 2014 | |||
Notes to Financial Statements | ' | ||
NEW ACCOUNTING PRONOUNCEMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||
The Financial Accounting Standards Board (“FASB”) amended ASU 2014-15 to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. | |||
Under GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. | |||
Currently, GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. | |||
This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. | |||
The amendments in the ASU are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |||
FASB has issued converged standards on revenue recognition. Specifically, the Board has issued the following document: | |||
· | FASB Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers: Topic 606 | ||
ASU 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. | |||
For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |||
The FASB has issued ASU No. 2014-08, Presentation of Financial Statements (“Topic 205”) and Property, Plant, and Equipment (“Topic 360”): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. | |||
Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. | |||
In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. | |||
The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. | |||
The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. For most nonpublic organizations, it is effective for annual financial statements with fiscal years beginning on or after December 15, 2014. Early adoption is permitted. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |||
Other new pronouncements issued but not yet effective until September 30, 2014 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
INVENTORIES
INVENTORIES | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
INVENTORIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
Inventories consisted of the following: | |||||||||
Sept. 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Raw materials | $ | 1,234 | $ | 1,165 | |||||
Work in progress | 980 | 583 | |||||||
Finished goods | 148 | 184 | |||||||
Less: provision for obsolete inventory | (841 | ) | (844 | ) | |||||
Currency translation effect | (27 | ) | 18 | ||||||
$ | 1,494 | $ | 1,106 | ||||||
The following table represents the changes in provision for obsolete inventory: | |||||||||
Sept. 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Beginning | $ | 844 | $ | 912 | |||||
Additions charged to expenses | 12 | - | |||||||
Usage - disposition | (3 | ) | (76 | ) | |||||
Currency translation effect | (12 | ) | 8 | ||||||
Ending | $ | 841 | $ | 844 |
STOCK_OPTIONS
STOCK OPTIONS | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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 its 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. At present, the 2007 Directors Plan provides for awards of up to 500,000 shares of the Company’s Common Stock to the members of the Company’s 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: | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected volatility | 70.01% - 104.94 | % | 70.01 | % | |||||||||||||
Risk-free interest rate | 0.30% - 0.78 | % | 0.39% - 0.78 | % | |||||||||||||
Expected life (years) | 2.50 - 3.25 | 3-Feb | |||||||||||||||
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, 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). | |||||||||||||||||
The Company did not grant any options pursuant to the 2007 Employee Plan during the three months ended September 30, 2014. There were no options exercised during the three months ended September 30, 2014. The Company recognized stock-based compensation expenses of $9 in the three months ended September 30, 2014 under the 2007 Employee Plan. The balance of unamortized stock-based compensation of $27 based on fair value on the grant date related to options granted under the 2007 Employee Plan is expected to be recognized over a period of two years. | |||||||||||||||||
The Company granted stock options pursuant to the 2007 Employee Plan covering a total of 15,000 shares of the Company’s Common Stock during the three months ended September 30, 2013. The Company recognized stock-based compensation expenses of $22 in the three months ended September 30, 2013 under the 2007 Employee Plan. These options vested as of the grant date. | |||||||||||||||||
As of September 30, 2014, there were vested employee stock options covering a total of 103,750 shares of Common Stock. The weighted-average exercise price was $4.14 and the weighted average contractual term was 1.85 years. The aggregate intrinsic value of employees’ stock options outstanding and the aggregate intrinsic value of employees’ stock options exercisable as of September 30, 2014 were $31 and $10, respectively. | |||||||||||||||||
As of September 30, 2013, there were vested employee stock options covering a total of 147,625 shares of Common Stock. The weighted-average exercise price was $2.95 and the weighted average contractual term was 1.49 years. Both the aggregate intrinsic value of employees’ stock options outstanding and the aggregate intrinsic value of employees’ stock options exercisable as of September 30, 2013 was $78. | |||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the three months ended September 30, 2014 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2014 | 130,000 | $ | 3.93 | 2.57 | $ | 13 | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | - | - | - | - | |||||||||||||
Outstanding at September 30, 2014 | 130,000 | $ | 3.93 | 2.33 | $ | 31 | |||||||||||
Exercisable at September 30, 2014 | 103,750 | $ | 4.14 | 1.85 | $ | 10 | |||||||||||
No stock options were exercised during the three months ended September 30, 2014. | |||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the three months ended September 30, 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 | 15,000 | 3.62 | 4.96 | - | |||||||||||||
Exercised | (73,000 | ) | 1.72 | - | (111 | ) | |||||||||||
Forfeited or expired | (37,500 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at September 30, 2013 | 168,000 | $ | 3.28 | 1.57 | $ | 78 | |||||||||||
Exercisable at September 30, 2013 | 147,625 | $ | 2.95 | 1.49 | $ | 78 | |||||||||||
During the three months ended September 30, 2013, options covering 73,000 shares of common stock were exercised. The intrinsic value of options exercised was $111. Cash received from the options exercised was $126. | |||||||||||||||||
A summary of the status of the Company’s non-vested employee stock options during the three months ended September 30, 2014 is presented below: | |||||||||||||||||
Options | Weighted Average Grant-Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at July 1, 2014 | 26,250 | $ | 1.69 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | - | - | |||||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at September 30, 2014 | 26,250 | $ | 1.69 | ||||||||||||||
A summary of the status of the Company’s non-vested employee stock options during the three months ended September 30, 2013 is presented below: | |||||||||||||||||
Options | Weighted Average Grant-Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at July 1, 2013 | 20,375 | $ | 3.26 | ||||||||||||||
Granted | 15,000 | 3.62 | |||||||||||||||
Vested | (15,000 | ) | 3.62 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at September 30, 2013 | 20,375 | $ | 4.35 | ||||||||||||||
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 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 first quarter of fiscal year 2015, the Company did not grant any options pursuant to the 2007 Directors Plan. There were no stock options exercised during the three month period ended September 30, 2014. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2014. | |||||||||||||||||
During the three months ended September 30, 2013, the Company granted options to purchase 60,000 shares of its Common Stock to certain of 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 $92 based on the grant date fair value of $1.52 per share determined by the Black Scholes option pricing model. No stock options were exercised during the three month period ended September 30, 2013. | |||||||||||||||||
As of September 30, 2014, there were vested stock options granted under the 2007 Directors Plan 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 2.37 years. Both the aggregate intrinsic value of such stock options outstanding and the aggregate intrinsic value of such options exercisable as of September 30, 2014 were $151. As, all of the stock options granted under the 2007 Directors Plan vest immediately at the date of grant, there were no unvested stock options granted under the 2007 Directors Plan as of September 30, 2014. | |||||||||||||||||
As of September 30, 2013, there were vested stock options granted under the 2007 Directors Plan covering a total of 340,000 shares of Common Stock. The weighted-average exercise price was $3.32 and the weighted average remaining contractual term was 2.62 years. Both the aggregate intrinsic value of such stock options outstanding and the aggregate intrinsic value of such options exercisable as of September 30, 2013 were $163. As, all of the stock options granted under the 2007 Directors Plan vest immediately at the date of grant, there were no unvested stock options granted under the 2007 Directors Plan as of September 30, 2013. | |||||||||||||||||
A summary of option activities under the 2007 Directors Plan during the three months ended September 30, 2014 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted | Aggregate | ||||||||||||||
Exercise | Average | Intrinsic | |||||||||||||||
Price | Remaining | Value | |||||||||||||||
Contractual | |||||||||||||||||
Term (Years) | |||||||||||||||||
Outstanding at July 1, 2014 | 315,000 | $ | 3.62 | 2.63 | $ | 24 | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | - | - | - | - | |||||||||||||
Outstanding at September 30, 2014 | 315,000 | $ | 3.62 | 2.37 | $ | 151 | |||||||||||
Exercisable at September 30, 2014 | 315,000 | $ | 3.62 | 2.37 | $ | 151 | |||||||||||
A summary of option activities under the 2007 Directors Plan during the three months ended September 30, 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 | 60,000 | 3.62 | 4.96 | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | (60,000 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at September 30, 2013 | 340,000 | $ | 3.32 | 2.62 | $ | 163 | |||||||||||
Exercisable at September 30, 2013 | 340,000 | $ | 3.32 | 2.62 | $ | 163 | |||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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 is 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. | |||||||||
Stock options to purchase 445,000 of Common Stock at exercise prices ranging from $2.07 to $4.35 per share were outstanding as of September 30, 2014 and were excluded in the computation of diluted EPS because their effect would have been anti-dilutive. All the outstanding options were excluded in the computation of diluted EPS for the three months ended September 30, 2014 because they were anti-dilutive. | |||||||||
Stock options to purchase 508,000 shares of Common Stock at exercise prices ranging from $1.72 to $9.57 per share were outstanding as of September 30, 2013. All the outstanding options were excluded in the computation of diluted EPS for the three months ended September 30, 2013 because they were 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: | |||||||||
Three Months Ended | |||||||||
Sept. 30, | Sept. 30, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | (Unaudited) | ||||||||
(Loss) / income attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ | (150 | ) | $ | 6 | ||||
Income/ (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | 14 | (23 | ) | ||||||
Net loss attributable to Trio-Tech International common shareholders | $ | (136 | ) | $ | (17 | ) | |||
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International | (0.04 | ) | - | ||||||
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | - | (0.01 | ) | ||||||
Basic and diluted loss per share from net loss attributable to Trio-Tech International | $ | (0.04 | ) | $ | (0.01 | ) | |||
Weighted average number of common shares outstanding - basic | 3,513 | 3,399 | |||||||
Dilutive effect of stock options | - | - | |||||||
Number of shares used to compute earnings per share – diluted | 3,513 | 3,399 |
ACCOUNTS_RECEIVABLE_AND_ALLOWA
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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 September 30, 2014 and June 30, 2014 was adequate. | |||||||||
The following table represents the changes in the allowance for doubtful accounts: | |||||||||
Sept. 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Beginning | $ | 438 | $ | 139 | |||||
Additions charged to expenses | 55 | 303 | |||||||
Recovered | - | (2 | ) | ||||||
Currency translation effect | (8 | ) | (2 | ) | |||||
Ending | $ | 485 | $ | 438 | |||||
WARRANTY_ACCRUAL
WARRANTY ACCRUAL | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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 a one-year warranty for products manufactured by it. 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. | |||||||||
Sept. 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Beginning | $ | 60 | $ | 61 | |||||
Additions charged to cost and expenses | - | 23 | |||||||
Recovered | (4 | ) | (25 | ) | |||||
Actual usage | (2 | ) | - | ||||||
Currency translation effect | (4 | ) | 1 | ||||||
Ending | $ | 50 | $ | 60 |
INCOME_TAX
INCOME TAX | 3 Months Ended |
Sep. 30, 2014 | |
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 $46 for the three months ended September 30, 2014 as compared to $43 for the same period 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 September 30, 2014 and June 30, 2014. | |
The major tax jurisdictions in which the Company files income tax returns are the United States, China, Singapore, Malaysia and Thailand. The statute of limitations, in general, is open for years 2004 to 2014 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 | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
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 September 30, 2014. The exchange rate is based on the exchange rate as of September 30, 2014 published by the Monetary Authority of Singapore. | ||||||||||
Investment Date | Investment | Investment Amount | ||||||||
Amount | (U.S. Dollars) | |||||||||
(RMB) | ||||||||||
Purchase of rental property – Property I - MaoYe | 4-Jan-08 | 5,554 | 894 | |||||||
Purchase of rental property – Property II - JiangHuai | 6-Jan-10 | 3,600 | 580 | |||||||
Purchase of rental property – Property III - Fu Li | 8-Apr-10 | 4,025 | 648 | |||||||
Currency translation | - | 22 | ||||||||
Gross investment in rental property | 13,179 | 2,144 | ||||||||
Accumulated depreciation on rental property | (3,125 | ) | (508 | ) | ||||||
Net investment in property – China | 10,054 | 1,636 | ||||||||
Investment Date | Investment | Investment Amount | ||||||||
Amount | (U.S. Dollars) | |||||||||
(RM) | ||||||||||
Reclassification of rental property – Penang Property I | 31-Dec-12 | 681 | 208 | |||||||
Gross investment in rental property | 681 | 208 | ||||||||
Accumulated depreciation on rental property | (302 | ) | (92 | ) | ||||||
Net investment in property – Malaysia | 379 | 116 | ||||||||
The following table presents the Company’s investment in properties in China and Malaysia as of June 30, 2014. The exchange rate is based on the exchange rate as of June 30, 2014 published by the Monetary Authority of Singapore. | ||||||||||
Investment | Investment Amount | |||||||||
Investment Date | Amount | (U.S. Dollars) | ||||||||
(RMB) | ||||||||||
Purchase of rental property – Property I - MaoYe | 4-Jan-08 | 5,554 | 904 | |||||||
Purchase of rental property – Property II - JiangHuai | 6-Jan-10 | 3,600 | 586 | |||||||
Purchase of rental property – Property III - Fu Li | 8-Apr-10 | 4,025 | 655 | |||||||
Currency translation | - | (23 | ) | |||||||
Gross investment in rental property | 13,179 | 2,122 | ||||||||
Accumulated depreciation on rental property | (2,961 | ) | (476 | ) | ||||||
Net investment in property – China | 10,218 | 1,646 | ||||||||
Investment | Investment Amount | |||||||||
Investment Date | Amount | (U.S. Dollars) | ||||||||
(RM) | ||||||||||
Reclassification of rental property – Penang Property I | 31-Dec-12 | 681 | 212 | |||||||
Gross investment in rental property | 681 | 212 | ||||||||
Accumulated depreciation on rental property | (300 | ) | (93 | ) | ||||||
Net investment in property – Malaysia | 381 | 119 | ||||||||
Rental Property I – Mao Ye | ||||||||||
In fiscal year 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 $894 based on the exchange rate as of September 30, 2014 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 $29, for the three months ended September 30, 2014, and $28 for the same period in the last fiscal year. | ||||||||||
Rental Property II - JiangHuai | ||||||||||
In fiscal year 2010, TTCQ purchased eight units of commercial property in Chongqing, China from Chongqing JiangHuai Real Estate Development Co. Ltd., (“JiangHuai”) for a total purchase price of RMB 3,600, or approximately $580 based on the exchange rate as of September 30, 2014 published by the Monetary Authority of Singapore. TTCQ rented all of these commercial units to a third party until the agreement expired in January 2012. TTCQ then rented three of the eight commercial units to another party during the fourth quarter of fiscal year 2013 under a rental agreement that expired on March 31, 2014. Currently all the units are vacant and TTCQ is actively looking for suitable tenants for renting all the commercial units. TTCQ is yet to receive the title deed for these properties. TTCQ is in the legal process to obtain the title deed which is dependent on JiangHuai completing the entire project. | ||||||||||
Property purchased from JiangHuai did not generate any rental income during the three months ended September 30, 2014, while it generated a rental income of $4 for the same period in the last fiscal year. | ||||||||||
Other Properties III – Fu Li | ||||||||||
In fiscal year 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. The total purchase price committed and paid was RMB 4,025, or approximately $648 based on the exchange rate as of September 30, 2014 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 year 2013. One of the two rental agreements expired in April 2014 and the other expired in August 2014. For the unit for which the agreement expired in April 2014, a new tenant was identified and a new agreement has been executed, which expires on April 30, 2017. The new agreement carries an increase in rental of 20% in the first year, as compared to the expired rental agreement. Thereafter the rental increases by approximately 10% for the subsequent years until April 2017. For the unit for which the agreement expired in August 2014, a new tenant was identified and a new agreement has been executed, which expires on August 9, 2016. The new agreement carries an increase in rental of approximately 21% in the first year, as compared to the expired rental agreement. Thereafter the rent increases by approximately 6% for the subsequent years until August 2016. | ||||||||||
Properties purchased from Fu Li were rented to a third party effective fourth quarter of fiscal year 2012 and generated a rental income of $14 for the three months ended September 30, 2014, and $12 for the same period in the last fiscal year. | ||||||||||
Penang Property I | ||||||||||
In the fourth quarter of fiscal year 2013, Trio-Tech Malaysia Sdn. Bhd. (“TTM”) determined to sell the factory building in Penang. However, as the government authorities did not approve the transaction, the sale did not take place. Because the market value was increasing during the second quarter of fiscal year 2013, TTM decided to hold the factory building in Penang as an investment rental property. Hence TTM reclassified the factory building as investment property at the end of the second quarter of fiscal year 2013, which had a net book value of RM 379 or approximately $116. In the first quarter of fiscal year 2015 the depreciation expenses were approximately $1. There were no such depreciation expenses for the same period in the last fiscal year, since the asset was classified as “Assets held for sale.” | ||||||||||
Summary | ||||||||||
Total rental income for all investment properties in China was $43 for the three months ended September 30, 2014, and was $44 for the same period in the last fiscal year. | ||||||||||
Depreciation expenses for all investment properties in China were $27 for the three months ended September 30, 2014 and 2013. |
LOAN_RECEIVABLE_FROM_PROPERTY_
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
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 September 30, 2014. The exchange rate is based on the date published by the Monetary Authority of Singapore as on September 30, 2014. | ||||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Date | (RMB) | (U.S. Dollars) | ||||||||
Short-term loan receivables | ||||||||||
JiangHuai (Project – Yu Jin Jiang An) | May 31,2013 | 2,000 | 325 | |||||||
Less: allowance for impairment | 31-Dec-13 | (2,000 | ) | (325 | ) | |||||
Net short-term loan receivables | - | - | ||||||||
Long-term loan receivables | ||||||||||
Jun Zhou Zhi Ye | 31-Oct-16 | 5,000 | 814 | |||||||
Net loan-term loan receivables from property development projects | 5,000 | 814 | ||||||||
The following table presents TTCQ’s loan receivable from property development projects in China as of June 30, 2014. The exchange rate is based on the date published by the Monetary Authority of Singapore as on June 30, 2014. | ||||||||||
Loan Amount | Loan Amount | |||||||||
Loan Expiry | (RMB) | (U.S. Dollars) | ||||||||
Date | ||||||||||
Short-term loan receivables | ||||||||||
JiangHuai (Project – Yu Jin Jiang An) | May 31,2013 | 2,000 | 325 | |||||||
Less: allowance for impairment | 31-Dec-13 | (2,000 | ) | (325 | ) | |||||
Net short-term loan receivables | - | - | ||||||||
Long-term loan receivables | ||||||||||
Jun Zhou Zhi Ye | 31-Oct-16 | 5,000 | 805 | |||||||
Net loan-term loan receivables from property development projects | 5,000 | 805 | ||||||||
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 $814 based on the exchange rate as at September 30, 2014 published by the Monetary Authority of Singapore. The amount was 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. (“Jun Zhou Zhi Ye”) and the transferred agreement expires on October 31, 2016. Hence the loan receivable has been reclassified as a long-term loan receivable. The book value of the loan receivable approximates its fair value. TTCQ recorded other income of $51, based on the average exchange rate for the three months ended September 30, 2014 published by the Monetary Authorities of Singapore, as compared to $49 for the same period in the last year. | ||||||||||
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 $325. The amount was 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 legal process of recovering the outstanding amount of $325. TTCQ did not generate other income from JiangHuai for both the periods ending three months ended September 30, 2014 and three months ended September 30, 2013. An impairment of $325 was recorded during the second fiscal quarter ended December 31, 2013. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Sep. 30, 2014 | |
Notes to Financial Statements | ' |
INVESTMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' |
During the second quarter of fiscal year 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 $1,606 based on the exchange rate as of March 31, 2014 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 $1,606 based on the exchange rate as of March 31, 2014 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 $803 based on the exchange rate published by the Monetary Authority of Singapore as of March 31, 2014. The remaining RMB 5,000, which was not recorded as a receivable as the Company considered the collectability uncertain, 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 $803 based on the exchange rate as of March 31, 2014 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 $1,606 based on the exchange rate as of March 31, 2014 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 March 31, 2014. The Company further reduced its investments by RMB 137, or approximately $22, towards the losses from operations incurred by the joint-venture, resulting in a net investment of RMB 4,863, or approximately $781 based on exchange rates published by the Monetary Authority of Singapore as of March 31, 2014. | |
“Investment” as shown in the balance sheet consists of the cost of an investment in a joint venture in which we have a 10% interest. During the second quarter of fiscal year 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 worth of commercial property in Chongqing China, 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. The recorded value of the disposed investment amounting to $783, based on exchange rates published by the Monetary Authority of Singapore as of June 30, 2014, is classified as “other assets” under non-current assets, because it is considered a down payment for the purchase of the commercial property in Chongqing. The first installment amount of RMB 500 was due in January 2014 and was outstanding as at March 31, 2014. The second and third installment amounts of RMB 500 each were due in April 2014 and July 2014. During May 2014, TTCQ had received RMB 100. As at the date of this 10-Q report the remaining amounts are still outstanding. |
NONCONTROLLING_INTEREST
NON-CONTROLLING INTEREST | 3 Months Ended |
Sep. 30, 2014 | |
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. | |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
Notes to Financial Statements | ' | |||||||||||||||||||||
BUSINESS SEGMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | |||||||||||||||||||||
In fiscal year 2015, 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. | ||||||||||||||||||||||
The real estate segment recorded other income of $51 and $49, for the first quarter of fiscal year 2015 and fiscal year 2014, respectively, based on the average exchange rate for the respective periods published by the Monetary Authority of Singapore. Due to the short-term nature of the investment, the amount was classified as a loan receivable 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 $45 for the three months ending September 30, 2014, as compared to $255 for the same period 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. Corporate expenses are allocated to the four segments. The following segment information table includes segment operating (loss) / income after including the corporate expenses allocated to the segments, which gets eliminated in the consolidation. | ||||||||||||||||||||||
The following segment information is un-audited for the three months ended September 30, 2014 and September 30, 2013: | ||||||||||||||||||||||
Business Segment Information: | ||||||||||||||||||||||
Net | Operating | Total | Depr. | Capital | ||||||||||||||||||
Three Months | Revenue | (Loss) | Assets | And | Expenditures | |||||||||||||||||
Ended | Income | Amort. | ||||||||||||||||||||
Sept. 30, | ||||||||||||||||||||||
Manufacturing | 2014 | $ | 3,047 | $ | (618 | ) | $ | 10,437 | $ | 27 | $ | 17 | ||||||||||
2013 | 4,201 | (127 | ) | 11,869 | 39 | 130 | ||||||||||||||||
Testing Services | 2014 | 4,618 | 576 | 18,471 | 569 | 444 | ||||||||||||||||
2013 | 4,048 | 102 | 18,149 | 536 | 354 | |||||||||||||||||
Distribution | 2014 | 385 | (36 | ) | 494 | - | 6 | |||||||||||||||
2013 | 1,204 | 192 | 678 | - | - | |||||||||||||||||
Real Estate | 2014 | 43 | (48 | ) | 3,807 | 27 | - | |||||||||||||||
2013 | 44 | (23 | ) | 4,134 | 27 | - | ||||||||||||||||
Fabrication | 2014 | - | - | 51 | - | - | ||||||||||||||||
Services * | 2013 | - | - | 126 | - | - | ||||||||||||||||
Corporate & | 2014 | - | (8 | ) | 75 | - | - | |||||||||||||||
Unallocated | 2013 | - | (157 | ) | 79 | - | - | |||||||||||||||
Total Company | 2014 | $ | 8,093 | $ | (134 | ) | $ | 33,335 | $ | 623 | $ | 467 | ||||||||||
2013 | $ | 9,497 | $ | (13 | ) | $ | 35,035 | $ | 602 | $ | 484 | |||||||||||
* Fabrication Services is a discontinued operation (Note 19). | ||||||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | 3 Months Ended |
Sep. 30, 2014 | |
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 | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
BANK LOANS PAYABLE (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
Bank loans payable consisted of the following: | |||||||||
Sept. 30, 2014 | 30-Jun-14 | ||||||||
(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 (4.6% and 5.1% at September 30, 2014) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with a carrying value of $3,804. | 2,692 | 2,786 | |||||||
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% (4.75% at September 30, 2014) with monthly payments of principal plus interest through December 2014. This note payable is secured by plant and equipment with a carrying value of $429. | 104 | 260 | |||||||
Current portion | (292 | ) | (448 | ) | |||||
Long term portion of bank loans payable | $ | 2,504 | $ | 2,598 | |||||
Future minimum payments (excluding interest) as at September 30, 2014 and June 30, 2014 | |||||||||
were as follows: | |||||||||
2015 | $ | 292 | $ | 448 | |||||
2016 | 197 | 198 | |||||||
2017 | 208 | 209 | |||||||
2018 | 219 | 220 | |||||||
2019 | 230 | 138 | |||||||
Thereafter | 1,650 | 1,833 | |||||||
Total obligations and commitments | $ | 2,796 | $ | 3,046 | |||||
Carrying value of the Company’s bank loan payable approximates its fair value because the interest rates associated with long-term debt are adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. | |||||||||
LINES_OF_CREDIT
LINES OF CREDIT | 3 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||||
LINES OF CREDIT (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||||||||||||
Carrying value of the Company’s lines of credit approximates its fair value because the interest rates associated with the lines of credit are adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. | |||||||||||||||||||
The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of September 30, 2014, 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 1.88% to 8.06% | — | $ | 8,905 | $ | 5,857 | |||||||||||||
Lines of Credit | |||||||||||||||||||
The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of June 30, 2014, 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% | — | $ | 9,073 | $ | 5,306 | |||||||||||||
Lines of Credit | |||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2014 | |
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 128, or approximately $39 based on the exchange rate as on September 30, 2014 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 259, or approximately $42, based on the exchange rate as on September 30, 2014 published by the Monetary Authority of Singapore. | |
Trio-Tech International Pte. Ltd. in Singapore has capital commitments for the purchase of equipment and other related infrastructure costs amounting to SGD 100, or approximately $79, based on the exchange rate as on September 30, 2014 published by the Monetary Authority of Singapore. |
OTHER_INCOME
OTHER INCOME | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Other Income and Expenses [Abstract] | ' | ||||||||
OTHER INCOME (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
Other income consisted of the following: | |||||||||
For the Quarter Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Investment income deemed interest income | $ | 51 | 49 | ||||||
Interest income | 3 | 3 | |||||||
Other rental income | 26 | 51 | |||||||
Exchange (loss) / gain | (10 | ) | 38 | ||||||
Usage of inventory previously provided for obsolescence | - | 17 | |||||||
Allowance for doubtful deemed interest receivables | (51 | ) | - | ||||||
Other miscellaneous income | 27 | 6 | |||||||
Total | $ | 46 | $ | 164 | |||||
Other income included $51 and $49 from investment income which was deemed to be interest income since the investment was deemed and classified as a loan based on ASC Topic 310-10-25 Receivables, for the first quarter of fiscal year 2015 and fiscal year 2014, respectively. | |||||||||
DISCONTINUED_OPERATION_AND_COR
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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 $53 and there is no accounts receivable since all the amounts due have been collected.The Company’s fabrication operation in Indonesia is in the process of commencing winding down the operations. | |||||||||
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, did not incur general and administrative expenses for the quarter ended September 30, 2014, and incurred general and administrative expenses and selling expenses of $4 for the same period 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. | |||||||||
Loss from discontinued operations for the quarter ended September 30, 2014 and 2013 was as follows: | |||||||||
For the Quarter Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Revenue | $ | - | $ | - | |||||
Cost of sales | - | (3 | ) | ||||||
Gross loss | - | (3 | ) | ||||||
Operating expenses | |||||||||
General and administrative | - | (4 | ) | ||||||
Selling | - | - | |||||||
Impairment loss of property, plant and equipment | - | - | |||||||
Total | - | (4 | ) | ||||||
Loss from discontinued operation | - | (7 | ) | ||||||
Other income / (charges) | 26 | (35 | ) | ||||||
Net income / (loss) from discontinued operation | 26 | (42 | ) | ||||||
Less: net income / (loss) attributable to the non-controlling interest | 12 | (19 | ) | ||||||
Income/ (loss) from discontinued operation, net of tax | $ | 14 | (23 | ) | |||||
The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of this discontinued operation was immaterial. |
ACCRUED_EXPENSES
ACCRUED EXPENSES | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
ACCRUED EXPENSES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
Accrued expenses consisted of the following: | |||||||||
For the Quarter Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Payroll and related costs | $ | 1,166 | $ | 1,096 | |||||
Commissions | 32 | 47 | |||||||
Customer deposits | 84 | 79 | |||||||
Legal and audit | 205 | 177 | |||||||
Sales tax | 109 | 120 | |||||||
Utilities | 146 | 156 | |||||||
Warranty | 55 | 60 | |||||||
Accrued purchase of materials and fixed assets | 396 | 358 | |||||||
Provision for re-instatement | 408 | 367 | |||||||
Other accrued expenses | 135 | 602 | |||||||
Currency translation effect | (51 | ) | (16 | ) | |||||
Total | $ | 2,685 | $ | 3,046 | |||||
OTHER_ASSETS
OTHER ASSETS | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
OTHER ASSETS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
Other assets consisted of the following: | |||||||||
For the Quarter Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Down-payment for purchase of fixed assets | $ | 1,150 | $ | 1,103 | |||||
Deposits for rental and utilities | 150 | 158 | |||||||
Others | 6 | 2 | |||||||
Total | $ | 1,306 | $ | 1,263 |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 3 Months Ended | ||
Sep. 30, 2014 | |||
Subsequent Events [Abstract] | ' | ||
SUBSEQUENT EVENT (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||
Subsequent to September 30, 2014, TTCQ and Jun Zhou Zhi Ye entered into a memorandum of understanding on October 14, 2014. Based on the memorandum of understanding, both parties have agreed to register a sales and purchase agreement upon Jun Zhou Zhi Ye obtaining the license to sell the properties of the commercial property (the Singapore Themed Resort Project), located in Chongqing China. The proposed agreement is for the sale of shop lots with a total area of 1,484.55 square meters as consideration for all the outstanding amounts owed to TTCQ by Jun Zhou Zhi Ye, with the exception of RMB 2,000 or approximately $326, which will be paid in cash, as follows: | |||
a) | Long term loan receivable RMB 5,000, or approximately $814, as disclosed in Note 10, plus the unrecognized interest receivable on long term loan receivable of RMB 1,250 | ||
b) | Commercial units measuring 668 square meters, as disclosed in Note 11; and | ||
c) | RMB 5,900 for the part of the unrecognized cash consideration of RMB 8,000 relating to the disposal of joint venture, as disclosed in Note 11. | ||
The shop lots are to be delivered to TTCQ upon completion of the construction of the shop lots in the Singapore Themed Resort Project, which is expected to be no later than December 31, 2016. |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 3 Months Ended | |||
Sep. 30, 2014 | ||||
Organization And Basis Of Presentation Policies | ' | |||
Basis of presentation | ' | |||
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. | ||||
New accounting pronouncements | ' | |||
The Financial Accounting Standards Board (“FASB”) amended ASU 2014-15 to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. | ||||
Under GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. | ||||
Currently, GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. | ||||
This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. | ||||
The amendments in the ASU are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | ||||
FASB has issued converged standards on revenue recognition. Specifically, the Board has issued the following document: | ||||
· | FASB Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers: Topic 606 | |||
ASU 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. | ||||
For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | ||||
The FASB has issued ASU No. 2014-08, Presentation of Financial Statements (“Topic 205”) and Property, Plant, and Equipment (“Topic 360”): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. | ||||
Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. | ||||
In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. | ||||
The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. | ||||
The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. For most nonpublic organizations, it is effective for annual financial statements with fiscal years beginning on or after December 15, 2014. Early adoption is permitted. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | ||||
Other new pronouncements issued but not yet effective until September 30, 2014 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
ORGANIZATION_AND_BASIS_OF_PRES2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 3 Months Ended | |||
Sep. 30, 2014 | ||||
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 | ||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventories Tables | ' | ||||||||
Inventories (In Thousands) | ' | ||||||||
Sept. 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Raw materials | $ | 1,234 | $ | 1,165 | |||||
Work in progress | 980 | 583 | |||||||
Finished goods | 148 | 184 | |||||||
Less: provision for obsolete inventory | (841 | ) | (844 | ) | |||||
Currency translation effect | (27 | ) | 18 | ||||||
$ | 1,494 | $ | 1,106 | ||||||
Changes in provision for obsolete inventory | ' | ||||||||
Sept. 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Beginning | $ | 844 | $ | 912 | |||||
Additions charged to expenses | 12 | - | |||||||
Usage - disposition | (3 | ) | (76 | ) | |||||
Currency translation effect | (12 | ) | 8 | ||||||
Ending | $ | 841 | $ | 844 |
STOCK_OPTIONS_Tables
STOCK OPTIONS (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair value weighted average assumptions | ' | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected volatility | 70.01% - 104.94 | % | 70.01 | % | |||||||||||||
Risk-free interest rate | 0.30% - 0.78 | % | 0.39% - 0.78 | % | |||||||||||||
Expected life (years) | 2.50 - 3.25 | 3-Feb | |||||||||||||||
Company's non-vested employee stock options | ' | ||||||||||||||||
A summary of the status of the Company’s non-vested employee stock options during the three months ended September 30, 2014 is presented below: | |||||||||||||||||
Options | Weighted Average Grant-Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at July 1, 2014 | 26,250 | $ | 1.69 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | - | - | |||||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at September 30, 2014 | 26,250 | $ | 1.69 | ||||||||||||||
A summary of the status of the Company’s non-vested employee stock options during the three months ended September 30, 2013 is presented below: | |||||||||||||||||
Options | Weighted Average Grant-Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at July 1, 2013 | 20,375 | $ | 3.26 | ||||||||||||||
Granted | 15,000 | 3.62 | |||||||||||||||
Vested | (15,000 | ) | 3.62 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at September 30, 2013 | 20,375 | $ | 4.35 | ||||||||||||||
Employee 2007 [Member] | ' | ||||||||||||||||
Option activities | ' | ||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the three months ended September 30, 2014 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2014 | 130,000 | $ | 3.93 | 2.57 | $ | 13 | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | - | - | - | - | |||||||||||||
Outstanding at September 30, 2014 | 130,000 | $ | 3.93 | 2.33 | $ | 31 | |||||||||||
Exercisable at September 30, 2014 | 103,750 | $ | 4.14 | 1.85 | $ | 10 | |||||||||||
No stock options were exercised during the three months ended September 30, 2014. | |||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the three months ended September 30, 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 | 15,000 | 3.62 | 4.96 | - | |||||||||||||
Exercised | (73,000 | ) | 1.72 | - | (111 | ) | |||||||||||
Forfeited or expired | (37,500 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at September 30, 2013 | 168,000 | $ | 3.28 | 1.57 | $ | 78 | |||||||||||
Exercisable at September 30, 2013 | 147,625 | $ | 2.95 | 1.49 | $ | 78 | |||||||||||
Director 2007 [Member] | ' | ||||||||||||||||
Option activities | ' | ||||||||||||||||
A summary of option activities under the 2007 Directors Plan during the three months ended September 30, 2014 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted | Aggregate | ||||||||||||||
Exercise | Average | Intrinsic | |||||||||||||||
Price | Remaining | Value | |||||||||||||||
Contractual | |||||||||||||||||
Term (Years) | |||||||||||||||||
Outstanding at July 1, 2014 | 315,000 | $ | 3.62 | 2.63 | $ | 24 | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | - | - | - | - | |||||||||||||
Outstanding at September 30, 2014 | 315,000 | $ | 3.62 | 2.37 | $ | 151 | |||||||||||
Exercisable at September 30, 2014 | 315,000 | $ | 3.62 | 2.37 | $ | 151 | |||||||||||
A summary of option activities under the 2007 Directors Plan during the three months ended September 30, 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 | 60,000 | 3.62 | 4.96 | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | (60,000 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at September 30, 2013 | 340,000 | $ | 3.32 | 2.62 | $ | 163 | |||||||||||
Exercisable at September 30, 2013 | 340,000 | $ | 3.32 | 2.62 | $ | 163 | |||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Earnings Per Share Tables | ' | ||||||||
Reconciliation of the weighted average shares | ' | ||||||||
Three Months Ended | |||||||||
Sept. 30, | Sept. 30, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | (Unaudited) | ||||||||
(Loss) / income attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ | (150 | ) | $ | 6 | ||||
Income/ (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | 14 | (23 | ) | ||||||
Net loss attributable to Trio-Tech International common shareholders | $ | (136 | ) | $ | (17 | ) | |||
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International | (0.04 | ) | - | ||||||
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | - | (0.01 | ) | ||||||
Basic and diluted loss per share from net loss attributable to Trio-Tech International | $ | (0.04 | ) | $ | (0.01 | ) | |||
Weighted average number of common shares outstanding - basic | 3,513 | 3,399 | |||||||
Dilutive effect of stock options | - | - | |||||||
Number of shares used to compute earnings per share – diluted | 3,513 | 3,399 | |||||||
ACCOUNTS_RECEIVABLE_AND_ALLOWA1
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accounts Receivable And Allowance For Doubtful Accounts Tables | ' | ||||||||
Changes in the allowance for doubtful accounts | ' | ||||||||
The following table represents the changes in the allowance for doubtful accounts: | |||||||||
Sept. 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Beginning | $ | 438 | $ | 139 | |||||
Additions charged to expenses | 55 | 303 | |||||||
Recovered | - | (2 | ) | ||||||
Currency translation effect | (8 | ) | (2 | ) | |||||
Ending | $ | 485 | $ | 438 | |||||
WARRANTY_ACCRUAL_Tables
WARRANTY ACCRUAL (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Warranty Accrual Tables | ' | ||||||||
Warranty liability | ' | ||||||||
Sept. 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Beginning | $ | 60 | $ | 61 | |||||
Additions charged to cost and expenses | - | 23 | |||||||
Recovered | (4 | ) | (25 | ) | |||||
Actual usage | (2 | ) | - | ||||||
Currency translation effect | (4 | ) | 1 | ||||||
Ending | $ | 50 | $ | 60 |
INVESTMENT_PROPERTIES_Tables
INVESTMENT PROPERTIES (Tables) | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Investment Properties Tables | ' | |||||||||
Companys investment in the property based on the exchange rate | ' | |||||||||
The following table presents the Company’s investment in properties in China and Malaysia as of September 30, 2014. The exchange rate is based on the exchange rate as of September 30, 2014 published by the Monetary Authority of Singapore. | ||||||||||
Investment Date | Investment | Investment Amount | ||||||||
Amount | (U.S. Dollars) | |||||||||
(RMB) | ||||||||||
Purchase of rental property – Property I - MaoYe | 4-Jan-08 | 5,554 | 894 | |||||||
Purchase of rental property – Property II - JiangHuai | 6-Jan-10 | 3,600 | 580 | |||||||
Purchase of rental property – Property III - Fu Li | 8-Apr-10 | 4,025 | 648 | |||||||
Currency translation | - | 22 | ||||||||
Gross investment in rental property | 13,179 | 2,144 | ||||||||
Accumulated depreciation on rental property | (3,125 | ) | (508 | ) | ||||||
Net investment in property – China | 10,054 | 1,636 | ||||||||
Investment Date | Investment | Investment Amount | ||||||||
Amount | (U.S. Dollars) | |||||||||
(RM) | ||||||||||
Reclassification of rental property – Penang Property I | 31-Dec-12 | 681 | 208 | |||||||
Gross investment in rental property | 681 | 208 | ||||||||
Accumulated depreciation on rental property | (302 | ) | (92 | ) | ||||||
Net investment in property – Malaysia | 379 | 116 | ||||||||
The following table presents the Company’s investment in properties in China and Malaysia as of June 30, 2014. The exchange rate is based on the exchange rate as of June 30, 2014 published by the Monetary Authority of Singapore. | ||||||||||
Investment | Investment Amount | |||||||||
Investment Date | Amount | (U.S. Dollars) | ||||||||
(RMB) | ||||||||||
Purchase of rental property – Property I - MaoYe | 4-Jan-08 | 5,554 | 904 | |||||||
Purchase of rental property – Property II - JiangHuai | 6-Jan-10 | 3,600 | 586 | |||||||
Purchase of rental property – Property III - Fu Li | 8-Apr-10 | 4,025 | 655 | |||||||
Currency translation | - | (23 | ) | |||||||
Gross investment in rental property | 13,179 | 2,122 | ||||||||
Accumulated depreciation on rental property | (2,961 | ) | (476 | ) | ||||||
Net investment in property – China | 10,218 | 1,646 | ||||||||
Investment | Investment Amount | |||||||||
Investment Date | Amount | (U.S. Dollars) | ||||||||
(RM) | ||||||||||
Reclassification of rental property – Penang Property I | 31-Dec-12 | 681 | 212 | |||||||
Gross investment in rental property | 681 | 212 | ||||||||
Accumulated depreciation on rental property | (300 | ) | (93 | ) | ||||||
Net investment in property – Malaysia | 381 | 119 |
LOAN_RECEIVABLE_FROM_PROPERTY_1
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Tables) | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Loan Receivable From Property Development Projects Tables | ' | |||||||||
Companys loans receivable from property development projects | ' | |||||||||
The following table presents TTCQ’s loan receivable from property development projects in China as of September 30, 2014. The exchange rate is based on the date published by the Monetary Authority of Singapore as on September 30, 2014. | ||||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Date | (RMB) | (U.S. Dollars) | ||||||||
Short-term loan receivables | ||||||||||
JiangHuai (Project – Yu Jin Jiang An) | May 31,2013 | 2,000 | 325 | |||||||
Less: allowance for impairment | 31-Dec-13 | (2,000 | ) | (325 | ) | |||||
Net short-term loan receivables | - | - | ||||||||
Long-term loan receivables | ||||||||||
Jun Zhou Zhi Ye | 31-Oct-16 | 5,000 | 814 | |||||||
Net loan-term loan receivables from property development projects | 5,000 | 814 | ||||||||
The following table presents TTCQ’s loan receivable from property development projects in China as of June 30, 2014. The exchange rate is based on the date published by the Monetary Authority of Singapore as on June 30, 2014. | ||||||||||
Loan Amount | Loan Amount | |||||||||
Loan Expiry | (RMB) | (U.S. Dollars) | ||||||||
Date | ||||||||||
Short-term loan receivables | ||||||||||
JiangHuai (Project – Yu Jin Jiang An) | May 31,2013 | 2,000 | 325 | |||||||
Less: allowance for impairment | 31-Dec-13 | (2,000 | ) | (325 | ) | |||||
Net short-term loan receivables | - | - | ||||||||
Long-term loan receivables | ||||||||||
Jun Zhou Zhi Ye | 31-Oct-16 | 5,000 | 805 | |||||||
Net loan-term loan receivables from property development projects | 5,000 | 805 | ||||||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
Business Segments Tables | ' | |||||||||||||||||||||
BUSINESS SEGMENTS | ' | |||||||||||||||||||||
Net | Operating | Total | Depr. | Capital | ||||||||||||||||||
Three Months | Revenue | (Loss) | Assets | And | Expenditures | |||||||||||||||||
Ended | Income | Amort. | ||||||||||||||||||||
Sept. 30, | ||||||||||||||||||||||
Manufacturing | 2014 | $ | 3,047 | $ | (618 | ) | $ | 10,437 | $ | 27 | $ | 17 | ||||||||||
2013 | 4,201 | (127 | ) | 11,869 | 39 | 130 | ||||||||||||||||
Testing Services | 2014 | 4,618 | 576 | 18,471 | 569 | 444 | ||||||||||||||||
2013 | 4,048 | 102 | 18,149 | 536 | 354 | |||||||||||||||||
Distribution | 2014 | 385 | (36 | ) | 494 | - | 6 | |||||||||||||||
2013 | 1,204 | 192 | 678 | - | - | |||||||||||||||||
Real Estate | 2014 | 43 | (48 | ) | 3,807 | 27 | - | |||||||||||||||
2013 | 44 | (23 | ) | 4,134 | 27 | - | ||||||||||||||||
Fabrication | 2014 | - | - | 51 | - | - | ||||||||||||||||
Services * | 2013 | - | - | 126 | - | - | ||||||||||||||||
Corporate & | 2014 | - | (8 | ) | 75 | - | - | |||||||||||||||
Unallocated | 2013 | - | (157 | ) | 79 | - | - | |||||||||||||||
Total Company | 2014 | $ | 8,093 | $ | (134 | ) | $ | 33,335 | $ | 623 | $ | 467 | ||||||||||
2013 | $ | 9,497 | $ | (13 | ) | $ | 35,035 | $ | 602 | $ | 484 |
BANK_LOANS_PAYABLE_Tables
BANK LOANS PAYABLE (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Bank Loans Payable Tables | ' | ||||||||
Bank loans payable | ' | ||||||||
Sept. 30, 2014 | 30-Jun-14 | ||||||||
(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 (4.6% and 5.1% at September 30, 2014) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with a carrying value of $3,804. | 2,692 | 2,786 | |||||||
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% (4.75% at September 30, 2014) with monthly payments of principal plus interest through December 2014. This note payable is secured by plant and equipment with a carrying value of $429. | 104 | 260 | |||||||
Current portion | (292 | ) | (448 | ) | |||||
Long term portion of bank loans payable | $ | 2,504 | $ | 2,598 | |||||
Future minimum payments | ' | ||||||||
2015 | $ | 292 | $ | 448 | |||||
2016 | 197 | 198 | |||||||
2017 | 208 | 209 | |||||||
2018 | 219 | 220 | |||||||
2019 | 230 | 138 | |||||||
Thereafter | 1,650 | 1,833 | |||||||
Total obligations and commitments | $ | 2,796 | $ | 3,046 |
LINES_OF_CREDIT_Tables
LINES OF CREDIT (Tables) | 3 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Lines Of Credit Tables | ' | ||||||||||||||
Lines of credit | ' | ||||||||||||||
The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of September 30, 2014, 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 1.88% to 8.06% | -- | $ | 8,905 | $ | 5,857 | |||||||||
Lines of Credit | |||||||||||||||
The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of June 30, 2014, 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% | -- | $ | 9,073 | $ | 5,306 | |||||||||
Lines of Credit | |||||||||||||||
OTHER_INCOME_Tables
OTHER INCOME (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Other Income and Expenses [Abstract] | ' | ||||||||
Other income | ' | ||||||||
For the Quarter Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Investment income deemed interest income | $ | 51 | 49 | ||||||
Interest income | 3 | 3 | |||||||
Other rental income | 26 | 51 | |||||||
Exchange (loss) / gain | (10 | ) | 38 | ||||||
Usage of inventory previously provided for obsolescence | - | 17 | |||||||
Allowance for doubtful deemed interest receivables | (51 | ) | - | ||||||
Other miscellaneous income | 27 | 6 | |||||||
Total | $ | 46 | $ | 164 |
DISCONTINUED_OPERATION_AND_COR1
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Discontinued Operation And Corresponding Restructuring Plan Tables | ' | ||||||||
Loss from discontinued operations | ' | ||||||||
Loss from discontinued operations for the quarter ended September 30, 2014 and 2013 was as follows: | |||||||||
For the Quarter Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Revenue | $ | - | $ | - | |||||
Cost of sales | - | (3 | ) | ||||||
Gross loss | - | (3 | ) | ||||||
Operating expenses | |||||||||
General and administrative | - | (4 | ) | ||||||
Selling | - | - | |||||||
Impairment loss of property, plant and equipment | - | - | |||||||
Total | - | (4 | ) | ||||||
Loss from discontinued operation | - | (7 | ) | ||||||
Other income / (charges) | 26 | (35 | ) | ||||||
Net income / (loss) from discontinued operation | 26 | (42 | ) | ||||||
Less: net income / (loss) attributable to the non-controlling interest | 12 | (19 | ) | ||||||
Income/ (loss) from discontinued operation, net of tax | $ | 14 | $ | (23 | ) | ||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued expenses | ' | ||||||||
For the Quarter Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Payroll and related costs | $ | 1,166 | $ | 1,096 | |||||
Commissions | 32 | 47 | |||||||
Customer deposits | 84 | 79 | |||||||
Legal and audit | 205 | 177 | |||||||
Sales tax | 109 | 120 | |||||||
Utilities | 146 | 156 | |||||||
Warranty | 55 | 60 | |||||||
Accrued purchase of materials and fixed assets | 396 | 358 | |||||||
Provision for re-instatement | 408 | 367 | |||||||
Other accrued expenses | 135 | 602 | |||||||
Currency translation effect | (51 | ) | (16 | ) | |||||
Total | $ | 2,685 | $ | 3,046 |
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
Other assets | ' | ||||||||
Other assets consisted of the following: | |||||||||
For the Quarter Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Down-payment for purchase of fixed assets | $ | 1,150 | $ | 1,103 | |||||
Deposits for rental and utilities | 150 | 158 | |||||||
Others | 6 | 2 | |||||||
Total | $ | 1,306 | $ | 1,263 |
1_ORGANIZATION_AND_BASIS_OF_PR
1. ORGANIZATION AND BASIS OF PRESENTATION (Details) | Sep. 30, 2014 |
Express Test Corporation (Dormant) | ' |
Ownership | 100.00% |
Trio-Tech Reliability Services (Dormant) | ' |
Ownership | 100.00% |
KTS Incorporated, dba Universal Systems (Dormant) | ' |
Ownership | 100.00% |
European Electronic Test Centre (Operation ceased on November 1, 2005) | ' |
Ownership | 100.00% |
Trio-Tech International Pte. Ltd | ' |
Ownership | 100.00% |
Universal (Far East) Pte. Ltd | ' |
Ownership | 100.00% |
Trio-Tech International (Thailand) Co. Ltd | ' |
Ownership | 100.00% |
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% |
Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) | ' |
Ownership | 55.00% |
Trio-Tech (Kuala Lumpur) Sdn. Bhd. (100% owned by Trio-Tech Malaysia Sdn. Bhd.) | ' |
Ownership | 55.00% |
Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.) | ' |
Ownership | 76.00% |
Trio-Tech (Suzhou) Co. Ltd. | ' |
Ownership | 100.00% |
Trio-Tech (Shanghai) Co. Ltd. | ' |
Ownership | 100.00% |
Trio-Tech (Chongqing) Co. Ltd. SHI International Pte. Ltd. | ' |
Ownership | 100.00% |
SHI International Pte. Ltd. (55% owned by Trio-Tech International Pte. Ltd.) | ' |
Ownership | 55.00% |
PT SHI Indonesia (100% owned by SHI International Pte. Ltd) | ' |
Ownership | 55.00% |
Trio-Tech (Tianjin) Co. Ltd. | ' |
Ownership | 100.00% |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Notes to Financial Statements | ' | ' |
Raw materials | $1,234 | $1,165 |
Work in progress | 980 | 583 |
Finished goods | 148 | 184 |
Less: provision for obsolete inventory | -841 | -844 |
Currency translation effect | -27 | 18 |
Inventory net | $1,494 | $1,106 |
INVENTORIES_Details_1
INVENTORIES (Details 1) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 |
Notes to Financial Statements | ' | ' |
Beginning | $844 | $912 |
Additions charged to expenses | 12 | ' |
Usage - disposition | -3 | -76 |
Currency translation effect | -12 | 8 |
Ending | $841 | $844 |
STOCK_OPTIONS_Details
STOCK OPTIONS (Details) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Expected volatility | ' | 70.01% |
Minimum [Member] | ' | ' |
Expected volatility | 70.01% | ' |
Risk-free interest rate | 0.30% | 0.39% |
Expected life (years) | '2 years 6 months | '2 years |
Maximum [Member] | ' | ' |
Expected volatility | 104.94% | ' |
Risk-free interest rate | 0.78% | 0.78% |
Expected life (years) | '3 years 3 months | '3 years |
STOCK_OPTIONS_Details_1
STOCK OPTIONS (Details 1) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Notes to Financial Statements | ' | ' |
Outstanding at beginning of period, Options | 130,000 | 263,500 |
Granted, Options | ' | 15,000 |
Exercised, Options | ' | 73,000 |
Forfeited or expired, Options | ' | 37,500 |
Outstanding at end of period, Options | 130,000 | 168,000 |
Exercisable at end of period, Options | 103,750 | 147,625 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $3.93 | $3.06 |
Granted, Weighted- Average Exercise Price | ' | $3.62 |
Exercised, Weighted- Average Exercise Price | ' | $1.72 |
Forfeited or expired, Weighted- Average Exercise Price | ' | $4.81 |
Outstanding at end of period, Weighted- Average Exercise Price | $3.93 | $3.28 |
Exercisable at end of period, Weighted- Average Exercise Price | $4.14 | $2.95 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | '2 years 6 months 26 days | '1 year 6 months 26 days |
Granted, Weighted - Average Remaining Contractual Term (Years) | ' | '4 years 11 months 16 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | '2 years 3 months 29 days | '1 year 6 months 26 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | '1 year 10 months 6 days | '1 year 5 months 27 days |
Outstanding at beginning of period, Aggregate Intrinsic Value | $13 | $122 |
Granted, Aggregate Intrinsic Value | ' | ' |
Exercised, Aggregate Intrinsic Value | ' | 111 |
Forfeited or expired, Aggregate Intrinsic Value | ' | ' |
Outstanding at end of period, Aggregate Intrinsic Value | 31 | 78 |
Exercisable at end of period, Aggregate Intrinsic Value | $10 | $78 |
STOCK_OPTIONS_Details_2
STOCK OPTIONS (Details 2) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Notes to Financial Statements | ' | ' |
Non-vested at beginning of period, Options | 26,250 | 20,375 |
Granted, Options | ' | 15,000 |
Vested, Options | ' | -15,000 |
Forfeited, Options | ' | ' |
Non-vested at end of period, Options | 2,650 | 20,375 |
Non-vested at beginning of period, Weighted-Average Grant-Date Fair Value | $1.69 | $3.26 |
Granted, Options, Weighted-Average Grant-Date Fair Value | ' | $3.62 |
Vested, Options, Weighted-Average Grant-Date Fair Value | ' | $3.62 |
Forfeited, Options, Weighted-Average Grant-Date Fair Value | ' | ' |
Non-vested at end of period, Options , Weighted-Average Grant-Date Fair Value | $1.69 | $4.35 |
STOCK_OPTIONS_Details_3
STOCK OPTIONS (Details 3) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Outstanding at beginning of period, Options | 130,000 | 263,500 |
Granted, Options | ' | 15,000 |
Exercised, Options | ' | 73,000 |
Forfeited or expired, Options | ' | 37,500 |
Outstanding at end of period, Options | 130,000 | 168,000 |
Exercisable at end of period, Options | 103,750 | 147,625 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $3.93 | $3.06 |
Granted, Weighted- Average Exercise Price | ' | $3.62 |
Exercised, Weighted- Average Exercise Price | ' | $1.72 |
Forfeited or expired, Weighted- Average Exercise Price | ' | $4.81 |
Outstanding at end of period, Weighted- Average Exercise Price | $3.93 | $3.28 |
Exercisable at end of period, Weighted- Average Exercise Price | $4.14 | $2.95 |
Granted, Weighted - Average Remaining Contractual Term (Years) | ' | '4 years 11 months 16 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | '1 year 10 months 6 days | '1 year 5 months 27 days |
Outstanding at beginning of period, Aggregate Intrinsic Value | $13 | $122 |
Granted, Aggregate Intrinsic Value | ' | ' |
Exercised, Aggregate Intrinsic Value | ' | 111 |
Forfeited or expired, Aggregate Intrinsic Value | ' | ' |
Outstanding at end of period, Aggregate Intrinsic Value | 31 | 78 |
Exercisable at end of period, Aggregate Intrinsic Value | 10 | 78 |
2007 Directors Plan [Member] | ' | ' |
Outstanding at beginning of period, Options | 315,000 | 340,000 |
Granted, Options | ' | 60,000 |
Exercised, Options | ' | ' |
Forfeited or expired, Options | ' | 60,000 |
Outstanding at end of period, Options | 315,000 | 340,000 |
Exercisable at end of period, Options | 315,000 | 340,000 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $3.62 | $3.53 |
Granted, Weighted- Average Exercise Price | ' | $3.62 |
Exercised, Weighted- Average Exercise Price | ' | ' |
Forfeited or expired, Weighted- Average Exercise Price | ' | $4.81 |
Outstanding at end of period, Weighted- Average Exercise Price | $3.62 | $3.32 |
Exercisable at end of period, Weighted- Average Exercise Price | $3.62 | $3.32 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | '2 years 7 months 17 days | '1 year 11 months 16 days |
Granted, Weighted - Average Remaining Contractual Term (Years) | ' | '4 years 11 months 16 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | '2 years 4 months 13 days | '2 years 7 months 13 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | '2 years 4 months 13 days | '2 years 7 months 13 days |
Outstanding at beginning of period, Aggregate Intrinsic Value | 24 | 80 |
Granted, Aggregate Intrinsic Value | ' | ' |
Exercised, Aggregate Intrinsic Value | ' | ' |
Forfeited or expired, Aggregate Intrinsic Value | ' | ' |
Outstanding at end of period, Aggregate Intrinsic Value | 151 | 163 |
Exercisable at end of period, Aggregate Intrinsic Value | $151 | $163 |
STOCK_OPTIONS_Details_Narrativ
STOCK OPTIONS (Details Narrative) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Exercised during period | ' | -73,000 |
Proceeds from stock options exercised | ' | $134 |
Employee 2007 [Member] | ' | ' |
Shares authorized | 600,000 | ' |
Options granted | ' | 15,000 |
Exercised during period | ' | ' |
Stock-based compensation expense | 9 | 22 |
Vested stock options | 103,750 | 147,625 |
Weighted-average exercise price, vested options | $4.14 | $2.95 |
Weighted average contractual term, vested options | '1 year 10 months 6 days | '1 year 5 months 29 days |
Fair value of stock options, outstanding | 31 | 78 |
Fair value of stock options, exercisable | 10 | 78 |
Stock issued upon exercise of options | 0 | 73,000 |
Fair value options exercised | ' | 111 |
Proceeds from stock options exercised | ' | 126 |
Director 2007 [Member] | ' | ' |
Shares authorized | 500,000 | ' |
Options granted | ' | 60,000 |
Exercised during period | ' | ' |
Stock-based compensation expense | ' | ' |
Vested stock options | 315,000 | 340,000 |
Weighted-average exercise price, vested options | $3.62 | $3.32 |
Weighted average contractual term, vested options | ' | '2 years 7 months 14 days |
Fair value of stock options, outstanding | 151 | 163 |
Fair value of stock options, exercisable | 151 | 163 |
Director 2007 Grant 2 [Member] | ' | ' |
Stock option term | '5 years | ' |
Options granted | ' | ' |
Exercised during period | ' | ' |
Stock-based compensation expense | ' | ' |
Weighted average contractual term, vested options | '2 years 4 months 14 days | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Notes to Financial Statements | ' | ' |
(Loss) / income attributable to Trio-Tech International common shareholders from continuing operations, net of tax | ($150) | $6 |
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | 14 | -23 |
Net (loss)/ income attributable to Trio-Tech International common shareholders | ($136) | ($17) |
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International | ($0.04) | ' |
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | ' | ($0.01) |
Basic and diluted loss per share from net loss attributable to Trio-Tech International | ($0.04) | ($0.01) |
Weighted average number of common shares outstanding basic | 3,513 | 3,399 |
Dilutive effect of stock options | ' | ' |
Number of shares used to compute earnings per share diluted | 3,513 | 3,399 |
EARNINGS_PER_SHARE_Details_Nar
EARNINGS PER SHARE (Details Narrative) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Options to purchase shares of Common Stock | 445,000 | 508,000 |
Shares excluded from Earnings per share amount | 445,000 | 508,000 |
Minimum Member | ' | ' |
Exercise Price | 2.07 | 1.72 |
Maximum Member | ' | ' |
Exercise Price | 4.35 | 9.57 |
ACCOUNTS_RECEIVABLE_AND_ALLOWA2
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 |
Notes to Financial Statements | ' | ' |
Beginning | $438 | $139 |
Additions charged to expenses | 55 | 303 |
Recovered | ' | -2 |
Currency translation effect | -8 | -2 |
Ending | $485 | $438 |
WARRANTY_ACCRUAL_Details
WARRANTY ACCRUAL (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 |
Notes to Financial Statements | ' | ' |
Beginning | $60 | $61 |
Additions charged to cost and expenses | ' | 23 |
Recovered | -4 | -25 |
Actual Usage | -2 | ' |
Currency translation effect | -4 | 1 |
Ending | $50 | $60 |
INCOME_TAX_Details_Narrative
INCOME TAX (Details Narrative) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Income Tax Expense Benefit | ($46) | ($43) |
INVESTMENT_PROPERTIES_Details
INVESTMENT PROPERTIES (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Malaysia RM [Member] | ' | ' |
Gross investment in rental property | $681 | ' |
Accumulated depreciation on rental property | -302 | ' |
Net investment in property | 379 | ' |
Malaysia USD [Member] | ' | ' |
Gross investment in rental property | 208 | ' |
Accumulated depreciation on rental property | -92 | ' |
Net investment in property | 116 | ' |
Mao Ye RMB [Member] | ' | ' |
Investment Amount | 5,554 | 5,554 |
Mao Ye USD [Member] | ' | ' |
Investment Amount | 894 | 904 |
Jiang Huai RMB [Member] | ' | ' |
Investment Amount | 3,600 | 3,600 |
Jiang Huai USD [Member] | ' | ' |
Investment Amount | 580 | 586 |
Fu Li RMB [Member] | ' | ' |
Investment Amount | 4,025 | 4,025 |
Fu Li USD [Member] | ' | ' |
Investment Amount | 648 | 655 |
China RMB [Member] | ' | ' |
Currency translation | ' | ' |
Gross investment in rental property | 13,179 | 13,179 |
Accumulated depreciation on rental property | -3,125 | -2,961 |
Net investment in property | 10,054 | 10,218 |
China USD [Member] | ' | ' |
Currency translation | 22 | ' |
Gross investment in rental property | 2,144 | ' |
Accumulated depreciation on rental property | -508 | ' |
Net investment in property | 1,636 | ' |
Penang RM [Member] | ' | ' |
Reclassification of rental property | 681 | 681 |
Accumulated depreciation on rental property | -302 | ' |
Net investment in property | 379 | ' |
Penang USD [Member] | ' | ' |
Reclassification of rental property | 208 | 212 |
Accumulated depreciation on rental property | -92 | ' |
Net investment in property | 116 | ' |
China USD [Member] | ' | ' |
Currency translation | ' | -23 |
Gross investment in rental property | ' | 2,122 |
Accumulated depreciation on rental property | ' | -476 |
Net investment in property | ' | 1,646 |
Malaysia RM [Member] | ' | ' |
Gross investment in rental property | ' | 681 |
Accumulated depreciation on rental property | ' | -300 |
Net investment in property | ' | 381 |
Malaysia USD [Member] | ' | ' |
Gross investment in rental property | ' | 212 |
Accumulated depreciation on rental property | ' | -93 |
Net investment in property | ' | $119 |
INVESTMENT_PROPERTIES_Details_
INVESTMENT PROPERTIES (Details Narrative) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 |
Mao Ye RMB [Member] | Mao Ye RMB [Member] | Jiang Huai RMB [Member] | Jiang Huai RMB [Member] | Fu Li RMB [Member] | Fu Li RMB [Member] | Fu Li U S D Lease 2 [Member] | Penang RM [Member] | ||||||||||||||
Investment Date | ' | ' | 4-Jan-08 | ' | ' | ' | ' | ' | ' | 6-Jan-10 | ' | ' | ' | ' | 8-Apr-10 | ' | ' | ' | ' | 31-Dec-12 | ' |
Cash purchase price | ' | ' | $5,554 | $5,554 | $894 | ' | $904 | $3,600 | $3,600 | $580 | ' | $586 | $4,025 | $4,025 | $648 | ' | $655 | ' | ' | ' | ' |
Rental agreement term | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial rental increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | 21.00% | ' | ' | ' |
Annual rent increase | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | 6.00% | ' | ' | ' |
Rental income | 43 | 44 | ' | ' | 29 | 28 | ' | ' | ' | ' | 4 | ' | ' | ' | 14 | 12 | ' | ' | ' | ' | ' |
Factory reclassified to investment property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 379 | 116 | ' |
Depreciation expenses | $27 | $27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' |
LOAN_RECEIVABLE_FROM_PROPERTY_2
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Short-term loan receivables | ' | ' |
Less: Impairment | ($325) | ($325) |
Short-term loan receivables, net | ' | ' |
Long-term loan receivables | ' | ' |
Net loans receivable | 814 | 805 |
RMB [Member] | ' | ' |
Short-term loan receivables | ' | ' |
Less: Impairment | -2,000 | ' |
Short-term loan receivables, net | ' | ' |
Long-term loan receivables | ' | ' |
Net loans receivable | 5,000 | ' |
Jiang Huai RMB [Member] | ' | ' |
Short-term loan receivables | ' | ' |
Short-term | 2,000 | 2,000 |
Long-term loan receivables | ' | ' |
Long-term | 2,000 | ' |
Jiang Huai USD [Member] | ' | ' |
Short-term loan receivables | ' | ' |
Short-term | 325 | 325 |
Long-term loan receivables | ' | ' |
Long-term | 325 | ' |
Jun Zhou Zhi Ye RMB [Member] | ' | ' |
Long-term loan receivables | ' | ' |
Long-term | 5,000 | 5,000 |
Jun Zhou Zhi Ye U S D [Member] | ' | ' |
Long-term loan receivables | ' | ' |
Long-term | 814 | 805 |
China RMB [Member] | ' | ' |
Short-term loan receivables | ' | ' |
Less: Impairment | ' | -2,000 |
Short-term loan receivables, net | ' | ' |
Long-term loan receivables | ' | ' |
Net loans receivable | ' | $5,000 |
LOAN_RECEIVABLE_FROM_PROPERTY_3
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details Narrative) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 |
Jiang Huai RMB [Member] | ' | ' | ' |
Other income | ' | ' | ' |
Allwance for doubtful receivables | 325 | ' | ' |
Jun Zhou Zhi Ye RMB [Member] | ' | ' | ' |
Loan income receivable | 5,000 | ' | 5,000 |
Jun Zhou Zhi Ye U S D [Member] | ' | ' | ' |
Loan income receivable | 814 | ' | 805 |
Other income | 51 | 49 | ' |
Jiang Huai RMB [Member] | ' | ' | ' |
Loan income receivable | 2,000 | ' | ' |
Jiang Huai USD [Member] | ' | ' | ' |
Loan income receivable | $325 | ' | ' |
INVESTMENTS_Details_Narrative
INVESTMENTS (Details Narrative) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Cash offset Received | $803 |
Net investment | 1,606 |
Agreement purchase price, non-monetary consideration | 1,606 |
Agreement purchase price, cash consideration | 1,307 |
Acquisition percentage | 10.00% |
Investment reduced | 22 |
Carrying value of investment | 781 |
China RMB [Member] | ' |
Cash offset Received | 5,000 |
Net investment | 10,000 |
Agreement purchase price, non-monetary consideration | 10,000 |
Agreement purchase price, cash consideration | 8,000 |
Acquisition percentage | 10.00% |
Investment reduced | 137 |
Carrying value of investment | $4,863 |
NONCONTROLLING_INTEREST_Detail
NON-CONTROLLING INTEREST (Details Narrative) | Sep. 30, 2014 |
Controlling Interest 1 [Member] | ' |
Non controlling interest | 45.00% |
Controlling Interest 2 [Member] | ' |
Non controlling interest | 45.00% |
Controlling Interest 3 [Member] | ' |
Non controlling interest | 24.00% |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | ||
Net revenue | $8,093 | $9,497 | ||
Operating (loss) income | -134 | -13 | ||
Total assets | 33,335 | 35,035 | ||
Depreciation and amortization | 623 | 602 | ||
Additions to property, plant and equipment | -467 | -484 | ||
Manufacturing [Member] | ' | ' | ||
Net revenue | 3,047 | 4,201 | ||
Operating (loss) income | -618 | -127 | ||
Total assets | 10,437 | 11,869 | ||
Depreciation and amortization | 27 | 39 | ||
Additions to property, plant and equipment | 17 | 130 | ||
Testing Services [Member] | ' | ' | ||
Net revenue | 4,618 | 4,048 | ||
Operating (loss) income | 576 | 102 | ||
Total assets | 18,471 | 18,149 | ||
Depreciation and amortization | 569 | 536 | ||
Additions to property, plant and equipment | 444 | 354 | ||
Distribution [Member] | ' | ' | ||
Net revenue | 385 | 1,204 | ||
Operating (loss) income | -36 | 192 | ||
Total assets | 494 | 678 | ||
Depreciation and amortization | ' | ' | ||
Additions to property, plant and equipment | 6 | ' | ||
RealEstate [Member] | ' | ' | ||
Net revenue | 43 | 44 | ||
Operating (loss) income | -48 | -23 | ||
Total assets | 3,807 | 4,134 | ||
Depreciation and amortization | 27 | 27 | ||
Additions to property, plant and equipment | ' | ' | ||
Fabrication Services [Member] | ' | ' | ||
Net revenue | ' | [1] | ' | [1] |
Operating (loss) income | ' | [1] | ' | [1] |
Total assets | 51 | [1] | 126 | [1] |
Depreciation and amortization | ' | [1] | ' | [1] |
Additions to property, plant and equipment | ' | [1] | ' | [1] |
CorporateAndUnallocated [Member] | ' | ' | ||
Net revenue | ' | ' | ||
Operating (loss) income | -8 | -157 | ||
Total assets | 75 | 79 | ||
Depreciation and amortization | ' | ' | ||
Additions to property, plant and equipment | ' | ' | ||
[1] | Fabrication Services is a discontinued operation (Note 19). |
BUSINESS_SEGMENTS_Details_Narr
BUSINESS SEGMENTS (Details Narrative) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Other income | $46 | $164 |
Total inter-segment revenue | 45 | 255 |
RealEstate [Member] | ' | ' |
Other income | $51 | $49 |
BANK_LOANS_PAYABLE_Details
BANK LOANS PAYABLE (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current portion | ($292) | ($448) |
Long term portion of bank loans payable | 2,504 | 2,598 |
Commercial Bank Note [Member] | ' | ' |
Bank loan payable | 2,692 | 2,786 |
Financial Institution Note [Member] | ' | ' |
Bank loan payable | $104 | $260 |
BANK_LOANS_PAYABLE_Details_1
BANK LOANS PAYABLE (Details 1) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Notes to Financial Statements | ' | ' |
2015 | $292 | $448 |
2016 | 197 | 198 |
2017 | 208 | 209 |
2018 | 219 | 220 |
2019 | 230 | 138 |
Thereafter | 1,650 | 1,833 |
Total obligations and commitments | $2,796 | $3,046 |
LINES_OF_CREDIT_Details
LINES OF CREDIT (Details) (Trio Tech Singapore [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 |
Trio Tech Singapore [Member] | ' | ' |
Type of facility | 'Line of Credit | 'Line of Credit |
Interst rate | 'With interest rates ranging from 1.88% to 8.06% | 'With interest rates ranging from 1.77% to 6.04% |
Credit limitation | $8,905 | $9,073 |
Unused credit | $5,857 | $5,306 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $396 | $358 |
Malaysia_RMB [Member] | ' | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | 128 | ' |
Malaysia US [Member] | ' | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | 39 | ' |
TianjinRMB [Member] | ' | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | 259 | ' |
TianjnUS [Member] | ' | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | 42 | ' |
Trio Tech International Singapore SGD [Member] | ' | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | 100 | ' |
Trio Tech International Singapore U S D [Member] | ' | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | $79 | ' |
OTHER_INCOME_Details
OTHER INCOME (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Other Income Details | ' | ' |
Investment income deemed interest income | $51 | $49 |
Interest income | 3 | 3 |
Other rental income | 26 | 51 |
Exchange (loss) / gain | -10 | 38 |
Usage of inventory prevoiusly provided for obsolecense | ' | 17 |
Allowance for doubtful deemed loan interest receivables | -51 | ' |
Other miscellaneous income | 27 | 6 |
Total | $46 | $164 |
OTHER_INCOME_Details_Narrative
OTHER INCOME (Details Narrative) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' |
Other investment income | $51 | $49 |
DISCONTINUED_OPERATION_AND_COR2
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Notes to Financial Statements | ' | ' |
Revenue | ' | ' |
Cost of sales | ' | -3 |
Gross loss | ' | -3 |
Operating Expenses | ' | ' |
General and administrative | ' | -4 |
Selling | ' | ' |
Impairment loss of property, plant and equipment | ' | ' |
Total | ' | -4 |
Loss from discontinued operations | ' | -7 |
Other income / (charges) | 26 | -35 |
Income / (Loss) from discontinued operations, net of tax | 26 | -42 |
Less: net income / (loss) attributable to the non-controlling interest | 12 | -19 |
Income / (loss) from discontinued operations, net of tax | $14 | ($23) |
DISCONTINUED_OPERATION_AND_COR3
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details Narrative) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
General and administrative expenses, discontinued operations | $0 | $4 |
Indonesia [Member] | ' | ' |
Outstanding balance of accounts payable, discontinued operations | 53 | ' |
Outstanding balance accounts receivable, discontinued operations | $0 | ' |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Payables and Accruals [Abstract] | ' | ' | ' |
Payroll and related costs | $1,166 | ' | $1,096 |
Commissions | 32 | ' | 47 |
Customer deposits | 84 | ' | 79 |
Legal and audit | 205 | ' | 177 |
Sales tax | 109 | ' | 120 |
Utilities | 146 | ' | 156 |
Warranty | 55 | ' | 60 |
Accrued purchase of materials and fixed assets | 396 | ' | 358 |
Provision for re-instatement | 408 | ' | 367 |
Other accrued expenses | 135 | ' | 602 |
Currency translation effect | -51 | ' | -16 |
Total | $2,685 | $3,046 | $3,046 |
OTHER_ASSETS_Other_assets_Deta
OTHER ASSETS - Other assets (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Down-payment for purchase of fixed assets | $1,150 | $1,103 |
Deposits for rental and utilities | 150 | 158 |
Others | 6 | 2 |
Total | $1,306 | $1,263 |
SUBSEQUENT_EVENT_Details_Narra
SUBSEQUENT EVENT (Details Narrative) (USD $) | 1 Months Ended |
In Thousands, unless otherwise specified | Nov. 14, 2014 |
Cash | $326 |
Long term loan receivable | 814 |
R M B [Member] | ' |
Cash | 2,000 |
Long term loan receivable | 5,000 |
Unrecognized interest receivable on long term loan receivable | 1,250 |
Unrecognized cash consideration | $8,000 |