Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2015 | Nov. 09, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | TRIO-TECH INTERNATIONAL | |
Entity Central Index Key | 732,026 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
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 | 2,016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,001 | $ 3,711 |
Short-term deposits | 92 | 101 |
Trade accounts receivable, less allowance for doubtful accounts of $303 and $313 | 7,644 | 7,875 |
Other receivables | $ 351 | $ 389 |
Loans receivable from property development projects - short term | ||
Inventories, less provision for obsolete inventory of $685 and $764 | $ 1,201 | $ 1,141 |
Prepaid expenses and other current assets | 287 | 244 |
Assets held for sale | 83 | 98 |
Total current assets | 13,659 | 13,559 |
NON-CURRENT ASSETS | ||
Deferred tax asset | $ 433 | $ 453 |
Investments | ||
Investment properties, net | $ 1,478 | $ 1,540 |
Property, plant and equipment, net | $ 11,188 | $ 12,522 |
Loans receivable from property development projects - long term | ||
Other assets | $ 1,753 | $ 1,823 |
Restricted term deposits | 1,969 | 2,140 |
Total non-current assets | 16,821 | 18,478 |
TOTAL ASSETS | 30,480 | 32,037 |
CURRENT LIABILITIES: | ||
Lines of credit | 1,905 | 1,578 |
Accounts payable | 2,980 | 2,770 |
Accrued expenses | 2,660 | 3,084 |
Income taxes payable | 250 | 296 |
Current portion of bank loans payable | 310 | 346 |
Current portion of capital leases | 169 | 197 |
Total current liabilities | 8,274 | 8,271 |
NON-CURRENT LIABILITIES: | ||
Bank loans payable, net of current portion | 1,810 | 2,198 |
Capital leases, net of current portion | 394 | 475 |
Deferred tax liabilities | 292 | 333 |
Other non-current liabilities | 32 | 38 |
Total non-current liabilities | 2,528 | 3,044 |
TOTAL LIABILITIES | $ 10,802 | $ 11,315 |
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, 2015, and June 30, 2015 | $ 10,882 | $ 10,882 |
Paid-in capital | 3,091 | 3,087 |
Accumulated retained earnings | 2,505 | 2,246 |
Accumulated other comprehensive gain-translation adjustments | 1,716 | 2,771 |
Total Trio-Tech International shareholders' equity | 18,194 | 18,986 |
Non-controlling interest | 1,484 | 1,736 |
TOTAL EQUITY | 19,678 | 20,722 |
TOTAL LIABILITIES AND EQUITY | $ 30,480 | $ 32,037 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 303 | $ 313 |
Provision for obsolete inventory | $ 685 | $ 764 |
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 STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue | ||
Manufacturing | $ 3,140 | $ 3,047 |
Testing services | 3,783 | 4,618 |
Distribution | 975 | 385 |
Others | 32 | 43 |
Total | 7,930 | 8,093 |
Cost of Sales | ||
Cost of manufactured products sold | 2,109 | 2,873 |
Cost of testing services rendered | 2,758 | 3,049 |
Cost of distribution | 853 | 340 |
Others | 32 | 34 |
Total | 5,752 | 6,296 |
Gross Margin | 2,178 | 1,797 |
Operating Expenses | ||
General and administrative | 1,662 | 1,738 |
Selling | 171 | 131 |
Research and development | $ 46 | 47 |
Impairment loss of property, plant and equipment | 15 | |
Total operating expenses | $ 1,879 | 1,931 |
Income / (Loss) from Operations | 299 | (134) |
Other Income / (Expenses) | ||
Interest expenses | (53) | (64) |
Other income, net | 208 | 46 |
Total other income / (expenses) | 155 | (18) |
Income / (Loss) from Continuing Operations before Income Taxes | 454 | (152) |
Income Tax (Expenses) / Benefits | (67) | 46 |
Income / (loss) from continuing operations before non-controlling interest, net of tax | $ 387 | $ (106) |
Other Operating Activities | ||
Equity in earnings of unconsolidated joint venture, net of tax | ||
Discontinued Operations (Note 18) | ||
(Loss) / income from discontinued operations, net of tax | $ (10) | $ 26 |
NET INCOME / (LOSS) | 377 | (80) |
Less: net income attributable to the non-controlling interest | 118 | 56 |
Net Income / (Loss) Attributable to Trio-Tech International Common Shareholder | 259 | (136) |
Amounts Attributable to Trio-Tech International Common Shareholders: | ||
Income / (loss) from continuing operations, net of tax | 264 | (150) |
(Loss) / income from discontinued operations, net of tax | (5) | 14 |
Net Income / (Loss) Attributable to Trio-Tech International Common Shareholders | $ 259 | $ (136) |
Basic and Diluted Earnings / (Loss) per Share: | ||
Basic and diluted earnings / (loss) per share from continuing operations attributable to Trio-Tech International | $ 0.08 | $ (0.04) |
Basic and diluted earnings per share from discontinued operations attributable to Trio-Tech International | ||
Basic and Diluted Earnings / (Loss) per Share from Net Income / (Loss) Attributable to Trio-Tech International | $ .08 | $ (.04) |
Weighted average number of common shares outstanding Basic | 3,513 | 3,513 |
Dilutive effect of stock options | 8 | |
Number of shares used to compute earnings per share diluted | 3,521 | 3,513 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Comprehensive Income / (Loss) Attributable to Trio-Tech International Common Shareholders: | ||
Net income / (loss) | $ 377 | $ (80) |
Foreign currency translation, net of tax | (1,425) | 160 |
Comprehensive (Loss) / Income | (1,048) | 80 |
Less: comprehensive (loss) / income attributable to the non-controlling interest | (252) | 113 |
Comprehensive Loss Attributable to Trio-Tech International Common Shareholders | $ (796) | $ (33) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total |
Beginning Balance, Amount at Jun. 30, 2014 | $ 10,882 | $ 2,972 | $ 1,725 | $ 3,522 | $ 1,732 | $ 20,833 |
Beginning Balance, No. of Shares at Jun. 30, 2014 | 3,513 | |||||
Stock option expenses | $ 106 | 106 | ||||
Net income | $ 521 | $ 303 | 824 | |||
Translation adjustment | $ (751) | $ (299) | (1,050) | |||
Contributions to capital payable to forgiveness | $ 9 | $ 9 | ||||
Stock options exercised, amount | ||||||
Stock options exercised, No. of Shares | ||||||
Ending Balance, Amount at Jun. 30, 2015 | $ 10,882 | $ 3,087 | $ 2,246 | $ 2,771 | $ 1,736 | $ 20,722 |
Ending Balance, No. of Shares at Jun. 30, 2015 | 3,513 | |||||
Stock option expenses | $ 4 | 4 | ||||
Net income | $ 259 | $ 118 | 377 | |||
Translation adjustment | $ (1,055) | (370) | (1,425) | |||
Ending Balance, Amount at Sep. 30, 2015 | $ 10,882 | $ 3,091 | $ 2,505 | $ 1,716 | $ 1,484 | $ 19,678 |
Ending Balance, No. of Shares at Sep. 30, 2015 | 3,513 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | |
Cash Flow from Operating Activities | |||
Net income / (loss) | $ 377 | $ (80) | $ 824 |
Adjustments to reconcile net income / (loss) to net cash flow provided by operating activities | |||
Depreciation and amortization | 484 | 623 | |
Stock compensation | 4 | 9 | |
Inventory (reversal) / provision | $ (51) | 8 | |
Bad debt provision / (reversal) | 55 | ||
Accrued interest expense, net accrued interest income | $ 33 | 24 | |
Impairment loss of property, plant and equipment | $ 15 | ||
Write-off of property, plant and equipment | $ 2 | ||
Warranty (recovery) / expense, net | (3) | $ 6 | |
Deferred tax provision | (5) | (77) | |
Changes in operating assets and liabilities | |||
Trade accounts receivable | (75) | 728 | |
Other receivables | 11 | (102) | |
Other assets | 18 | (42) | |
Inventories | (52) | (413) | |
Prepaid expenses and other current assets | (62) | (55) | |
Accounts payable and accrued expenses | 49 | (234) | |
Income taxes payable | (39) | $ 1 | |
Other non-current liabilities | (3) | ||
Net Cash Provided by Operating Activities | 688 | $ 466 | |
Cash Flow from Investing Activities | |||
Proceeds from maturing of unrestricted term deposits and short-term deposits | 38 | ||
Additions to property, plant and equipment | (254) | $ (467) | |
Proceeds from disposal of plant, property, and equipment | 19 | ||
Net Cash used in Investing Activities | (197) | $ (467) | |
Cash Flow from Financing Activities | |||
Proceeds from / (repayments on) lines of credit | 440 | (689) | |
Repayment of bank loans and capital leases | (169) | (261) | |
Net cash Used in Financing Activities | 271 | (950) | |
Effect of Changes in Exchange Rate | (472) | 171 | |
NET INCREASE / (DECREASE) IN CASH | 290 | (781) | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3,711 | 2,938 | 2,938 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 4,001 | 2,157 | $ 3,711 |
Supplementary Information of Cash Flows | |||
Cash paid during the period for Interest | 53 | 66 | |
Cash paid during the period for Income taxes | $ 91 | $ 18 | |
Non-Cash Transactions | |||
Capital lease of property, plant and equipment |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
ORGANIZATION AND BASIS OF PRESENTATION | 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 2016, 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% owned by Trio-Tech International Pte. Ltd.) 55% Penang and Selangor, Malaysia 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% owned by Trio-Tech International Pte. Ltd) 55% Singapore PT SHI Indonesia (Dormant) (100% owned by SHI International Pte. Ltd.) 55% Batam, Indonesia 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, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2016. 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, 2015. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NEW ACCOUNTING PRONOUNCEMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | The amendments in Accounting Standards Updates (“ASU”) 2015-14 ASC Topic 606: Deferral of the Effective Date (“ASC Topic 606”) defers the effective date of update 2014-09 for all entities by one year. For a public entity, the amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2017, 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. FASB has issued converged standards on revenue recognition. Specifically, the Board has issued ASU. 2014-09 (“ASU 2014-09”), ASC 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 non-financial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). ASU 2014-09 will supersede the revenue recognition requirements in ASC Topic 605, Revenue Recognition, (“ASC Topic 605”) and most industry-specific guidance. ASU 2014-09 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 non-financial assets that are not in a contract with a customer (e.g., assets within the scope of ASC Topic 360, Property, Plant, and Equipment, (“ASC Topic 360”) 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 ASU 2014-09. For a public entity, the amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The amendments in ASU 2015-11 ASC Topic 330: Simplifying the Measurement of Inventory (“ASC Topic 330”) specify that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using Last-In-First-Out or the retail inventory method. The amendments in ASU 2015-011 are effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. A reporting entity should apply the amendments retrospectively to all periods presented. While early adoption is permitted, the Company has not elected to early adopt. 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 amended ASU 2015-07 ASC Topic 820: Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent), which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments in ASU 2015-07 are effective for public business entities for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. A reporting entity should apply the amendments retrospectively to all periods presented. While early adoption is permitted, the Company has not elected to early adopt. 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 amendments in ASU 2015-06 ASC Topic 260: Effects on Historical Earnings Per Unit of Master Limited Partnership Dropdown Transactions (“ASC Topic 260”) specify that for purposes of calculating historical earnings per unit under the two-class method, the earnings or (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. The amendments in ASU 2015-06 are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. While early adoption is permitted, the Company has not elected to early adopt. The amendments should be applied retrospectively for all financial statements presented. 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 amendments in ASU 2015-02 ASC Topic 810: Amendments to the Consolidation Analysis are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The amendments in ASU 2015-02 are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. While early adoption is permitted, including adoption in an interim period, the Company has not elected to early adopt. ASU 2015-02 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings as of the beginning of the first year restated. The company has not yet determined the effects on the Company’s consolidated financial position or results of operations on the adoption of this update. The amendments in ASU 2015-01 eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, (“ASC Topic 225”) requires that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. The amendments in ASU 2015-01 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company has not elected to early adopt. 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 amended ASU 2014-15 Subtopic 205-40, Presentation of Financial Statements – Going Concern (“ASC Topic 205”) 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. ASU 2014-15 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 ASU 2014-15 are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. While early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued, the Company has not elected to early adopt. 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, ASC Topic 205 Presentation of Financial Statements (“ASC Topic 205”) and ASC Topic 360 Property, Plant, and Equipment (“ASC Topic 360”): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in ASU 2014-08 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 2014-08 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 did not 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, 2015 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
ACCOUNTS RECEIVABLE AND ALLOWAN
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 3 Months Ended |
Sep. 30, 2015 | |
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 customers’ financial conditions. Senior management reviews accounts receivable on a periodical 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, management believed the allowance for doubtful accounts as of September 30, 2015 and June 30, 2015 was adequate. The following table represents the changes in the allowance for doubtful accounts: Sept. 30, June 30, Beginning $ 313 $ 438 Additions charged to expenses — 84 Recovered / write-off — (180 ) Currency translation effect (10 ) (29 ) Ending $ 303 $ 313 |
LOANS RECEIVABLE FROM PROPERTY
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | 3 Months Ended |
Sep. 30, 2015 | |
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, 2015. The exchange rate is based on the date published by the Monetary Authority of Singapore as of March 31, 2015, since the net loan receivable was “nil” as at September 30, 2015. Loan Expiry Date Loan Amount (RMB) Loan Amount (U.S. Dollars) Short-term loan receivables JiangHuai (Project – Yu Jin Jiang An) May 31,2013 2,000 325 Less: allowance for impairment (2,000 ) (325 ) Net loan receivables from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment properties (5,000 ) (814 ) Net loan receivables from property development projects - - The following table presents TTCQ’s loan receivable from property development projects in China as of June 30, 2015. The exchange rate is based on the date published by the Monetary Authority of Singapore as of March 31, 2015, since the net loan receivable was “nil” as at June 30, 2015. Loan Expiry Date Loan Amount (RMB) Loan Amount (U.S. Dollars) Short-term loan receivables JiangHuai (Project – Yu Jin Jiang An) May 31,2013 2,000 325 Less: allowance for impairment (2,000 ) (325 ) Net loan receivables from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment properties (5,000 ) (814 ) Net loan receivables from property development projects - - On November 1, 2010, TTCQ entered into a 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 Receivables (“ASC Topic 310”), amounting to RMB 2,000, or approximately $325. 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 the three months ended September, 2015 and the twelve months ended June 30, 2015. Based on TTI’s financial policy, an impairment of $325 on the investment in JiangHuai was provided for during the second quarter of fiscal 2014. On November 1, 2010, TTCQ entered into another 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, amounting to RMB 5,000, or approximately $814 based on the exchange rate as at March 31, 2015 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 again 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 was reclassified as a long-term receivable. The book value of the loan receivable approximates its fair value. TTCQ did not generate other income from this investment for the three months ended September 30, 2015. However, for the twelve months ended June 30, 2015, TTCQ recorded other income of RMB 417, or approximately $68. In fiscal year 2015, an allowance for doubtful deemed interest receivables from Jun Zhou Zhi Ye of $68 was made on the other income. In the second quarter of fiscal year 2015, the loan receivable was transferred to down payment for purchase of investment property that is being developed in the Singapore Themed Resort Project. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
INVENTORIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Inventories consisted of the following: Sept. 30, June 30, Raw materials $ 974 $ 1,038 Work in progress 692 611 Finished goods 291 348 Less: provision for obsolete inventory (685 ) (764 ) Currency translation effect (71 ) (92 ) $ 1,201 $ 1,141 The following table represents the changes in provision for obsolete inventory: Sept. 30, June 30, Beginning $ 764 $ 844 Additions charged to expenses — 67 Usage - disposition (51 ) (103 ) Currency translation effect (28 ) (44 ) Ending $ 685 $ 764 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 3 Months Ended |
Sep. 30, 2015 | |
Assets Held For Sale | |
ASSETS HELD FOR SALE | During the fourth quarter of 2015, the operations in Malaysia planned to sell its factory building in Penang, Malaysia. In May 2015, Trio-Tech Malaysia (“TTM”) was approached by a potential buyer to purchase the factory building. Negotiation is still ongoing and is subject to approval by the Penang Development Corporation (“PDC”). In accordance to ASC Topic 360, the property was reclassified from investment property, which had a net book value of RM 371, or approximately $98, to assets held for sale since there was an intention to sell the factory building. As of September 30, 2015 the net book value was RM 369, or approximately $83. On September 14, 2015, application to sell the property was rejected by PDC. The rejection was based on the business activity of the purchaser not suitable to the industry that is being promoted on the said property. However management is actively looking for a suitable buyer. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
INVESTMENT (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Investments were nil as at September 30, 2015 and June 30, 2015. 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. “Investments” in the real estate segment was the cost of an investment in a joint venture in which we had 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 On October 14, 2014, TTCQ and Jun Zhou Zhi Ye entered into a memorandum of understanding. 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 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 as follows: a) Long term loan receivable RMB 5,000, or approximately $814, as disclosed in Note 4, plus the interest receivable on long term loan receivable of RMB 1,250; b) Commercial units measuring 668 square meters, as mentioned above; and c) RMB 5,900 for the part of the unrecognized cash consideration of RMB 8,000 relating to the disposal of the joint venture. 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. However, should there be further delays in the project completion, based on the discussion with the developers it is estimated to be completed by June 30, 2017. The consideration does not include the remaining outstanding amount of RMB 2,000, or approximately $325, which will be paid in cash. |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 3 Months Ended |
Sep. 30, 2015 | |
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, 2015. The exchange rate is based on the exchange rate as of September 30, 2015 published by the Monetary Authority of Singapore. Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I - MaoYe Jan 04, 2008 5,554 894 Purchase of rental property – Property II - JiangHuai Jan 06, 2010 3,600 580 Purchase of rental property – Property III - Fu Li Apr 08, 2010 4,025 648 Currency translation - (48 ) Gross investment in rental property 13,179 2,074 Accumulated depreciation on rental property (3,781 ) (596 ) Net investment in property – China 9,398 1,478 Investment Date Investment Amount (RM) Investment Amount (U.S. Dollars) Reclassification of rental property – Penang Property I Dec 31, 2012 681 154 Gross investment in rental property 681 154 Accumulated depreciation on rental property (312 ) (71 ) Reclassified as “Assets held for sale” June 30, 2015 (369 ) (83 ) Net investment in property – Malaysia - - The following table presents the Company’s investment in properties in China and Malaysia as of June 30, 2015. The exchange rate is based on the exchange rate as of June 30, 2015 published by the Monetary Authority of Singapore. Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I - MaoYe Jan 04, 2008 5,554 894 Purchase of rental property – Property II - JiangHuai Jan 06, 2010 3,600 580 Purchase of rental property – Property III - Fu Li Apr 08, 2010 4,025 648 Currency translation - 1 Gross investment in rental property 13,179 2,123 Accumulated depreciation on rental property (3,619 ) (583 ) Net investment in property – China 9,560 1,540 Investment Date Investment Amount (RM) Investment Amount (U.S. Dollars Reclassification of rental property – Penang Property I Dec 31, 2012 681 181 Gross investment in rental property 681 181 Accumulated depreciation on rental property (310 ) (83 ) Reclassified as “Assets held for sale” June 30, 2015 (371 ) (98 ) Net investment in property – Malaysia - - Rental Property I – Mao Ye In fiscal 2008, 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, 2015 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, 2014 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, however as at the date of this report, this rental agreement (1,104 square meters at a monthly rental of RMB 38,645) has been terminated. TTCQ has identified a new tenant and signed a new rental agreement (653 square meters at a monthly rental of RMB 38,520) on August 1, 2015. This rental agreement provides for a rent increase of 5% every year on January 31, commencing the year 2017 till the rental agreement expires on July 31, 2020. Property purchased from MaoYe generated a rental income of $22 during the three months ended September 30, 2015 as compared to $29 for the same period in 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, 2015 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 working with the developer to find a suitable buyer to purchase all the commercial units. TTCQ has yet to receive the title deed for these properties; however TTCQ has the vacant possession with the exception of two units, which is in the process of clarification. TTCQ is in the legal process to obtain the title deed, which is dependent on JiangHuai completing the entire project. In August 2014, TTCQ performed a valuation on one of the commercial units and its market value was higher than the carrying amount. As of the date of this report, there was no other valuation performed. Property purchased from JiangHuai did not generate any rental income during the three months ended September 30, 2015 or 2014. Other Properties III – Fu Li In fiscal 2010, TTCQ entered into a Memorandum Agreement with Chongqing FuLi Real Estate Development Co. Ltd. (“FuLi”) to purchase two commercial properties totaling 311.99 square meters (“office space”) located in Jiang Bei District Chongqing. Although TTCQ currently rents its office premises from a third party, it intends to use the office space as its office premises. The total purchase price committed and paid was RMB 4,025, or approximately $648 based on the exchange rate as of September 30, 2015 published by the Monetary Authority of Singapore. The development was completed and the property was handed over during April 2013 and the title deed was received during the third quarter of fiscal 2014. The two commercial properties were leased to third parties under two separate rental agreements, one of which 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 was executed, which expires on April 30, 2017. The new agreement carries an increase in rent by 20% in the first year, as compared to the expired rental agreement. Thereafter the rent 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 was 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. The tenant of this unit had defaulted on payment of the quarterly rental due in August 2015. In early October 2015, TTCQ had issued a legal letter to this tenant on the outstanding amounts and the tenant has not responded. As of the date of this report, this rental agreement (161 square meters at a monthly rental of RMB 16,081) has been terminated and a new rental agreement with a new tenant (161 square meters at a monthly rental of RMB 13,669) has been signed on October 21, 2015. This rental agreement provides for a rent increase of 6% every year on October 21, commencing from the year 2016 till the rental agreement expires on October 20, 2017. Properties purchased from Fu Li were rented to a third party effective fourth quarter of fiscal year 2012 and generated a rental income of $10 for the three months ended September 30, 2015, and $14 for the same period in the last fiscal year. Penang Property I During the fourth quarter of 2015, the operations in Malaysia planned to sell its factory building in Penang, Malaysia. In May 2015, TTM was approached by a potential buyer to purchase the factory building. Negotiation is still ongoing and is subject to approval by the PDC. In accordance to ASC Topic 360, the property was reclassified from investment property, which had a net book value of RM 371, or approximately $98, to assets held for sale since there was an intention to sell the factory building. As of September 30, 2015 the net book value was RM 369, or approximately $83. On September 14, 2015, application to sell the property was rejected by PDC. The rejection was based on the business activity of the purchaser not suitable to the industry that is being promoted on the said property. However management is actively looking for a suitable buyer. Summary Total rental income for all investment properties in China was $32 for the three months ended September 30, 2015, and was $43 for the same period in the last fiscal year. Depreciation expenses for all investment properties in China were $26 for the three months ended September 30, 2015 and $27 for same period in the last fiscal year. |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Sep. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | Other assets consisted of the following: Sept. 30, 2015 (Unaudited) June 30, 2015 Down-payment for purchase of investment properties $ 1,645 $ 1,645 Down-payment for purchase of property, plant and equipment 20 31 Deposits for rental and utilities 140 147 Currency translation effect (52 ) - Total $ 1,753 $ 1,823 |
LINES OF CREDIT
LINES OF CREDIT | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
LINES OF CREDIT (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Carrying value of the CompanyÂ’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. As of September 30, 2015, 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 Lines of Credit Ranging from 1.9% to 5.6% - $ 5,437 $ 3,533 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 371 $ 371 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 1,259 $ 1,259 As of June 30, 2015, 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 Lines of Credit Ranging from 1.9% to 5.6% - $ 7,422 $ 6,161 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 396 $ 79 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 1,289 $ 1,289 On April 10, 2015, Trio-Tech Tianjin signed an agreement with a bank for an Accounts Receivable Financing facility for RMB 8,000, or approximately $1,289, interest is charged at the bankÂ’s lending rate plus a floating interest rate. The effective interest rate is 130% of the bankÂ’s lending rate. The financing facility was set up to facilitate the growing testing operations in our Tianjin operations in China. The immediate holding company, Trio-Tech International Pte. Ltd., acted as the guarantor for this bank facility. The bank account for this facility was set up on August 24, 2015 and has not been put to use as of the date of these financial statements. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses | |
ACCRUED EXPENSES | Accrued expenses consisted of the following: Sept. 30, 2015 (Unaudited) June 30, 2015 Payroll and related costs $ 1,257 $ 1,513 Commissions 66 52 Customer deposits 43 41 Legal and audit 261 244 Sales tax 103 131 Utilities 110 129 Warranty 100 109 Accrued purchase of materials and property, plant and equipment 241 430 Provision for re-instatement 410 422 Other accrued expenses 230 243 Currency translation effect (161 ) (230 ) Total $ 2,660 $ 3,084 |
WARRANTY ACCRUAL
WARRANTY ACCRUAL | 3 Months Ended |
Sep. 30, 2015 | |
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, 2015 (Unaudited) June 30, 2015 Beginning $ 103 $ 60 Additions charged to cost and expenses 12 114 Utilization / reversal (15 ) (65 ) Currency translation effect (5 ) (6 ) Ending $ 95 $ 103 |
BANK LOANS PAYABLE
BANK LOANS PAYABLE | 3 Months Ended |
Sep. 30, 2015 | |
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, 2015 (Unaudited) June 30, 2015 Note payable denominated in Malaysian ringgit to a commercial bank for expansion plans in Malaysia, maturing in August 2024, bearing interest at the bankÂ’s prime rate (7.3% at September 30, 2015 and June 30, 2015) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with a carrying value of $2,667. 1,854 2,218 Note payable denominated in U.S. dollars to a financial institution for working capital plans in Singapore and its subsidiaries, maturing in December 2015, bearing interest at the bankÂ’s prime rate plus 1.50% (4.1% to 6.9% at September 30, 2015 and June 30, 2015) with monthly payments of principal plus interest through December 2014. This note payable is secured by plant and equipment with a carrying value of $337. 266 326 Current portion (310 ) (346 ) Long term portion of bank loans payable $ 1,810 $ 2,198 Future minimum payments (excluding interest) as at September 30, 2015 were as follows: 2017 $ 310 2018 248 2019 158 2020 166 2021 175 Thereafter 1,063 Total obligations and commitments $ 2,120 Future minimum payments (excluding interest) as at June 30, 2015 were as follows: 2016 $ 346 2017 322 2018 183 2019 193 2020 203 Thereafter 1,297 Total obligations and commitments $ 2,544 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
COMMITMENTS AND CONTINGENCIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Trio-Tech (Tianjin) Co. Ltd. in China has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RMB 155, or approximately $24, based on the exchange rate as on September 30, 2015 published by the Monetary Authority of Singapore as compared to nil capital commitments as at June 30, 2015. Trio-Tech (Malaysia) Sdn. Bhd. has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RM 6, or approximately $1, based on the exchange rate as at September 30, 2015 as compared to the capital commitment as at June 30, 2015 amounting to RM 33, or approximately $9 for the purchase of equipment and other related expenses. Deposits with banks in China are not insured by the local government or agency, and are consequently exposed to risk of loss. The Company believes the probability of a bank failure, causing loss to the Company, is remote. The Company is, from time to time, the subject of litigation claims and assessments arising out of matters occurring in its normal business operations. In the opinion of management, resolution of these matters will not have a material adverse effect on the CompanyÂ’s financial statements. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
BUSINESS SEGMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | In fiscal year 2016, 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 did not record other income for the first quarter of fiscal 2016, as compared to other income of $51, for the first quarter of fiscal year 2015, 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 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 $115 for the three months ending September 30, 2015, as compared to $45 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 income or loss 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, 2015 and September 30, 2014: Business Segment Information: Three Months Net Operating Total Depr. Capital Manufacturing 2015 $ 3,140 $ 242 $ 5,618 $ 54 $ 17 2014 3,047 (618 ) 10,437 27 17 Testing Services 2015 3,783 78 20,495 403 237 2014 4,618 576 18,471 569 444 Distribution 2015 975 19 749 — — 2014 385 (36 ) 494 — 6 Real Estate 2015 32 (24 ) 3,530 27 — 2014 43 (48 ) 3,807 27 — Fabrication 2015 — — 26 — — Services * 2014 — — 51 — — Corporate & 2015 — (16 ) 62 — — Unallocated 2014 — (8 ) 75 — — Total Company 2015 $ 7,930 $ 299 $ 30,480 $ 484 $ 254 2014 $ 8,093 $ (134 ) $ 33,335 $ 623 $ 467 * Fabrication Services is a discontinued operation (Note 18). |
OTHER INCOME
OTHER INCOME | 3 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME | Other income consisted of the following: Three Months Ended September 30, 2015 2014 Investment income deemed interest income $ - 51 Interest income 3 3 Other rental income 24 26 Exchange gain / (loss) 184 (10 ) Allowance for doubtful deemed interest receivables - (51 ) Other miscellaneous income (3 ) 27 Total $ 208 $ 46 Other income included nil and $51 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, |
INCOME TAX
INCOME TAX | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
INCOME TAX | 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 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, 2015 and June 30, 2015. 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 2015 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. |
DISCONTINUED OPERATION AND CORR
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN | 3 Months Ended |
Sep. 30, 2015 | |
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 six fiscal years, and the cash flow was minimal for the past six 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”) 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 Shanghai operation has no outstanding accounts payable and no accounts receivable. The discontinued operations in Shanghai and in Indonesia did not incur general and administrative expenses for the three months ended September 30, 2015, 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 / income from discontinued operations for the three months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, 2015 2014 Revenue $ - $ - Cost of sales - - Gross margin - - Operating expenses General and administrative - - Selling - - Impairment loss of property, plant and equipment - - Total - - Income from discontinued operation - - Other (charges) / income (10 ) 26 Net (loss) / income from discontinued operation (10 ) 26 Less: net (income) / loss attributable to the non-controlling interest (5 ) 12 (Loss) / income from discontinued operation, net of tax $ (5 ) 14 The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of this discontinued operation was immaterial. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Sep. 30, 2015 | |
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. Stock options to purchase 495,000 of Common Stock at exercise prices ranging from $2.26 to $3.20 per share were outstanding as of September 30, 2015, and were excluded in the computation of diluted EPS because their effect would have been anti-dilutive. 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. 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 September 30, 2015 2014 (Unaudited) (Unaudited) Income / (loss) attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ 264 $ (150 ) (Loss) / income attributable to Trio-Tech International common shareholders from discontinued operations, net of tax (5 ) 14 Net income / (loss) attributable to Trio-Tech International common shareholders $ 259 $ (136 ) Basic and diluted earnings / (loss) per share from continuing operations attributable to Trio-Tech International 0.08 (0.04 ) Basic and diluted earnings per share from discontinued operations attributable to Trio-Tech International - - Basic and diluted earnings / (loss) per share from net loss attributable to Trio-Tech International $ 0.08 $ (0.04 ) Weighted average number of common shares outstanding - basic 3,513 3,513 Dilutive effect of stock options 8 - Number of shares used to compute earnings per share – diluted 3,521 3,513 |
STOCK OPTIONS
STOCK OPTIONS | 3 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 2014 Expected volatility 71.44% to 104.94% 70.01% to 104.94% Risk-free interest rate 0.30% to 0.78% 0.30% to 0.78% Expected life (years) 2.50 2.50 to 3.25 The expected volatilities are based on the historical volatility of the Company’s stock. The observation is made on a weekly basis. The observation period covered is consistent with the expected life of options. The expected life of the options granted to employees has been determined utilizing the “simplified” method as prescribed by ASC Topic 718, 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, 2015. There were no options exercised during the three months ended September 30, 2015. The Company recognized stock-based compensation expenses of $4 in the three months ended September 30, 2015 under the 2007 Employee Plan. There was no balance of unamortized stock-based compensation based on fair value on the grant date related to options granted under the 2007. No stock options were exercised during the three months ended September 30, 2015. The weighted-average remaining contractual term for non-vested options was 1.19years. 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. No stock options were exercised during the three months ended September 30, 2014. The weighted-average remaining contractual term for non-vested options was 2.19 years. As of September 30, 2015, there were vested employee stock options covering a total of 112,500 shares of Common Stock. The weighted-average exercise price was $4.06 and the weighted average contractual term was 1.03 years. The total fair value of vested employee stock option was $457 and remains outstanding as of September 30, 2015. 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 total fair value of vested employee stock option was $430 and remains outstanding as of September 30, 2014. A summary of option activities under the 2007 Employee Plan during the three months ended September 30, 2015 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2015 130,000 $ 3.93 1.57 $ - Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at September 30, 2015 130,000 $ 3.93 1.32 $ - Exercisable at September 30, 2015 112,500 $ 4.06 1.03 $ - 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 Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic 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 A summary of the status of the Company’s non-vested employee stock options during the three months ended September 30, 2015 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2015 17,500 $ 1.69 Granted - - Vested - - Forfeited - - Non-vested at September 30, 2015 17,500 $ 1.69 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 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 2016, 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, 2015. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2015. 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. As of September 30, 2015, there were vested stock options granted under the 2007 Directors Plan covering a total of 365,000 shares of Common Stock. The weighted-average exercise price was $3.64 and the weighted average remaining contractual term was 1.74 years. Both the aggregate intrinsic value of such stock options outstanding and the aggregate intrinsic value of such options exercisable as of September 30, 2015 were $13. 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, 2015. 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. A summary of option activities under the 2007 Directors Plan during the three months ended September 30, 2015 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2015 365,000 $ 3.64 1.99 $ 53 Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at September 30, 2015 365,000 $ 3.64 1.74 $ 13 Exercisable at September 30, 2015 365,000 $ 3.64 1.74 $ 13 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 Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value 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 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | In accordance with the ASC Topic 825, the following presents assets and liabilities measured and carried at fair value and classified by level of the following fair value measurement hierarchy in accordance to ASC Topic 820: There were no transfers between Levels 1 and 2 during the three months ended September 30, 2015 and 2014. Term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments. Loans receivable from property development projects (Level 3) – The carrying amount approximates fair value because of the short-term nature. Restricted term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments. Lines of credit (Level 3) – The carrying value of the lines of credit approximates fair value due to the short-term nature of the obligations. Bank loans payable (Level 3) – 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. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | On October 5, 2015, the Company granted options to purchase 50,000 shares of its Common Stock to directors pursuant to the 2007 Directors Plan with an exercise price equal to the fair market value of 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 50,000 shares of the CompanyÂ’s Common Stock was approximately $54 based on the fair value of $2.69 per share determined by the Black Scholes option pricing model. |
ORGANIZATION AND BASIS OF PRE30
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Sep. 30, 2015 | |
Organization And Basis Of Presentation Policies | |
Basis of Presentation | 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, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2016. 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, 2015. |
New Accounting Pronouncements | The amendments in Accounting Standards Updates (“ASU”) 2015-14 ASC Topic 606: Deferral of the Effective Date (“ASC Topic 606”) defers the effective date of update 2014-09 for all entities by one year. For a public entity, the amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2017, 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. FASB has issued converged standards on revenue recognition. Specifically, the Board has issued ASU. 2014-09 (“ASU 2014-09”), ASC 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 non-financial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). ASU 2014-09 will supersede the revenue recognition requirements in ASC Topic 605, Revenue Recognition, (“ASC Topic 605”) and most industry-specific guidance. ASU 2014-09 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 non-financial assets that are not in a contract with a customer (e.g., assets within the scope of ASC Topic 360, Property, Plant, and Equipment, (“ASC Topic 360”) 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 ASU 2014-09. For a public entity, the amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The amendments in ASU 2015-11 ASC Topic 330: Simplifying the Measurement of Inventory (“ASC Topic 330”) specify that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using Last-In-First-Out or the retail inventory method. The amendments in ASU 2015-011 are effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. A reporting entity should apply the amendments retrospectively to all periods presented. While early adoption is permitted, the Company has not elected to early adopt. 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 amended ASU 2015-07 ASC Topic 820: Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent), which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments in ASU 2015-07 are effective for public business entities for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. A reporting entity should apply the amendments retrospectively to all periods presented. While early adoption is permitted, the Company has not elected to early adopt. 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 amendments in ASU 2015-06 ASC Topic 260: Effects on Historical Earnings Per Unit of Master Limited Partnership Dropdown Transactions (“ASC Topic 260”) specify that for purposes of calculating historical earnings per unit under the two-class method, the earnings or (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. The amendments in ASU 2015-06 are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. While early adoption is permitted, the Company has not elected to early adopt. The amendments should be applied retrospectively for all financial statements presented. 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 amendments in ASU 2015-02 ASC Topic 810: Amendments to the Consolidation Analysis are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The amendments in ASU 2015-02 are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. While early adoption is permitted, including adoption in an interim period, the Company has not elected to early adopt. ASU 2015-02 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings as of the beginning of the first year restated. The company has not yet determined the effects on the Company’s consolidated financial position or results of operations on the adoption of this update. The amendments in ASU 2015-01 eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, (“ASC Topic 225”) requires that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. The amendments in ASU 2015-01 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company has not elected to early adopt. 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 amended ASU 2014-15 Subtopic 205-40, Presentation of Financial Statements – Going Concern (“ASC Topic 205”) 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. ASU 2014-15 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 ASU 2014-15 are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. While early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued, the Company has not elected to early adopt. 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, ASC Topic 205 Presentation of Financial Statements (“ASC Topic 205”) and ASC Topic 360 Property, Plant, and Equipment (“ASC Topic 360”): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in ASU 2014-08 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 2014-08 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 did not 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, 2015 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
ORGANIZATION AND BASIS OF PRE31
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
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% owned by Trio-Tech International Pte. Ltd.) 55% Penang and Selangor, Malaysia 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% owned by Trio-Tech International Pte. Ltd) 55% Singapore PT SHI Indonesia (Dormant) (100% owned by SHI International Pte. Ltd.) 55% Batam, Indonesia Trio-Tech (Tianjin) Co., Ltd. * 100% Tianjin, China |
ACCOUNTS RECEIVABLE AND ALLOW32
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable And Allowance For Doubtful Accounts Tables | |
Changes in the allowance for doubtful accounts | Sept. 30, 2015 (Unaudited) June 30, 2015 Beginning $ 313 $ 438 Additions charged to expenses - 84 Recovered / write-off - (180 ) Currency translation effect (10 ) (29 ) Ending $ 303 $ 313 |
LOAN RECEIVABLE FROM PROPERTY D
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
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, 2015. The exchange rate is based on the date published by the Monetary Authority of Singapore as of March 31, 2015, since the net loan receivable was “nil” as at September 30, 2015. Loan Expiry Date Loan Amount (RMB) Loan Amount (U.S. Dollars) Short-term loan receivables JiangHuai (Project – Yu Jin Jiang An) May 31,2013 2,000 325 Less: allowance for impairment (2,000 ) (325 ) Net loan receivables from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment properties (5,000 ) (814 ) Net loan receivables from property development projects - - The following table presents TTCQ’s loan receivable from property development projects in China as of June 30, 2015. The exchange rate is based on the date published by the Monetary Authority of Singapore as of March 31, 2015, since the net loan receivable was “nil” as at June 30, 2015. Loan Expiry Date Loan Amount (RMB) Loan Amount (U.S. Dollars) Short-term loan receivables JiangHuai (Project – Yu Jin Jiang An) May 31,2013 2,000 325 Less: allowance for impairment (2,000 ) (325 ) Net loan receivables from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment properties (5,000 ) (814 ) Net loan receivables from property development projects - - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Inventories Tables | |
Inventories | Sept. 30, June 30, Raw materials $ 974 $ 1,038 Work in progress 692 611 Finished goods 291 348 Less: provision for obsolete inventory (685 ) (764 ) Currency translation effect (71 ) (92 ) $ 1,201 $ 1,141 |
Changes in provision for obsolete inventory | Sept. 30, June 30, Beginning $ 764 $ 844 Additions charged to expenses — 67 Usage - disposition (51 ) (103 ) Currency translation effect (28 ) (44 ) Ending $ 685 $ 764 |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
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, 2015. The exchange rate is based on the exchange rate as of September 30, 2015 published by the Monetary Authority of Singapore. Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I - MaoYe Jan 04, 2008 5,554 894 Purchase of rental property – Property II - JiangHuai Jan 06, 2010 3,600 580 Purchase of rental property – Property III - Fu Li Apr 08, 2010 4,025 648 Currency translation - (48 ) Gross investment in rental property 13,179 2,074 Accumulated depreciation on rental property (3,781 ) (596 ) Net investment in property – China 9,398 1,478 Investment Date Investment Amount (RM) Investment Amount (U.S. Dollars) Reclassification of rental property – Penang Property I Dec 31, 2012 681 154 Gross investment in rental property 681 154 Accumulated depreciation on rental property (312 ) (71 ) Reclassified as “Assets held for sale” June 30, 2015 (369 ) (83 ) Net investment in property – Malaysia - - The following table presents the Company’s investment in properties in China and Malaysia as of June 30, 2015. The exchange rate is based on the exchange rate as of June 30, 2015 published by the Monetary Authority of Singapore. Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars) Purchase of rental property – Property I - MaoYe Jan 04, 2008 5,554 894 Purchase of rental property – Property II - JiangHuai Jan 06, 2010 3,600 580 Purchase of rental property – Property III - Fu Li Apr 08, 2010 4,025 648 Currency translation - 1 Gross investment in rental property 13,179 2,123 Accumulated depreciation on rental property (3,619 ) (583 ) Net investment in property – China 9,560 1,540 Investment Date Investment Amount (RM) Investment Amount (U.S. Dollars) Reclassification of rental property – Penang Property I Dec 31, 2012 681 181 Gross investment in rental property 681 181 Accumulated depreciation on rental property (310 ) (83 ) Reclassified as “Assets held for sale” June 30, 2015 (371 ) (98 ) Net investment in property – Malaysia - - |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other assets | Sept. 30, 2015 (Unaudited) June 30, 2015 Down-payment for purchase of investment properties $ 1,645 $ 1,645 Down-payment for purchase of property, plant and equipment 20 31 Deposits for rental and utilities 140 147 Currency translation effect (52 ) - Total $ 1,753 $ 1,823 |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Lines Of Credit Tables | |
Lines of credit | As of September 30, 2015, 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 Lines of Credit Ranging from 1.9% to 5.6% - $ 5,437 $ 3,533 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 371 $ 371 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 1,259 $ 1,259 As of June 30, 2015, 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 Lines of Credit Ranging from 1.9% to 5.6% - $ 7,422 $ 6,161 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 396 $ 79 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 1,289 $ 1,289 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses Tables | |
Accrued expenses | Sept. 30, 2015 (Unaudited) June 30, 2015 Payroll and related costs $ 1,257 $ 1,513 Commissions 66 52 Customer deposits 43 41 Legal and audit 261 244 Sales tax 103 131 Utilities 110 129 Warranty 100 109 Accrued purchase of materials and property, plant and equipment 241 430 Provision for re-instatement 410 422 Other accrued expenses 230 243 Currency translation effect (161 ) (230 ) Total $ 2,660 $ 3,084 |
WARRANTY ACCRUAL (Tables)
WARRANTY ACCRUAL (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Warranty Accrual Tables | |
Warranty liability | Sept. 30, June 30, Beginning $ 103 $ 60 Additions charged to cost and expenses 12 114 Utilization / reversal (15 ) (65 ) Currency translation effect (5 ) (6 ) Ending $ 95 $ 103 |
BANK LOANS PAYABLE (Tables)
BANK LOANS PAYABLE (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Bank Loans Payable Tables | |
Bank loans payable | Sept. 30, 2015 (Unaudited) June 30, 2015 Note payable denominated in Malaysian ringgit to a commercial bank for expansion plans in Malaysia, maturing in August 2024, bearing interest at the bankÂ’s prime rate (7.3% at September 30, 2015 and June 30, 2015) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with a carrying value of $2,667. 1,854 2,218 Note payable denominated in U.S. dollars to a financial institution for working capital plans in Singapore and its subsidiaries, maturing in December 2015, bearing interest at the bankÂ’s prime rate plus 1.50% (4.1% to 6.9% at September 30, 2015 and June 30, 2015) with monthly payments of principal plus interest through December 2014. This note payable is secured by plant and equipment with a carrying value of $337. 266 326 Current portion (310 ) (346 ) Long term portion of bank loans payable $ 1,810 $ 2,198 |
Future minimum payments | Future minimum payments (excluding interest) as at September 30, 2015 were as follows: 2017 $ 310 2018 248 2019 158 2020 166 2021 175 Thereafter 1,063 Total obligations and commitments $ 2,120 Future minimum payments (excluding interest) as at June 30, 2015 were as follows: 2016 $ 346 2017 322 2018 183 2019 193 2020 203 Thereafter 1,297 Total obligations and commitments $ 2,544 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Business Segments Tables | |
BUSINESS SEGMENTS | Three Months Net Operating Total Depr. Capital Manufacturing 2015 $ 3,140 $ 242 $ 5,618 $ 54 $ 17 2014 3,047 (618 ) 10,437 27 17 Testing Services 2015 3,783 78 20,495 403 237 2014 4,618 576 18,471 569 444 Distribution 2015 975 19 749 — — 2014 385 (36 ) 494 — 6 Real Estate 2015 32 (24 ) 3,530 27 — 2014 43 (48 ) 3,807 27 — Fabrication 2015 — — 26 — — Services * 2014 — — 51 — — Corporate & 2015 — (16 ) 62 — — Unallocated 2014 — (8 ) 75 — — Total Company 2015 $ 7,930 $ 299 $ 30,480 $ 484 $ 254 2014 $ 8,093 $ (134 ) $ 33,335 $ 623 $ 467 |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other income | Three Months Ended September 30, 2015 2014 Investment income deemed interest income $ - 51 Interest income 3 3 Other rental income 24 26 Exchange gain / (loss) 184 (10 ) Allowance for doubtful deemed interest receivables - (51 ) Other miscellaneous income (3 ) 27 Total $ 208 $ 46 |
DISCONTINUED OPERATION AND CO43
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Discontinued Operation And Corresponding Restructuring Plan Tables | |
Loss / income from discontinued operations | Three Months Ended September 30, 2015 2014 Revenue $ - $ - Cost of sales - - Gross margin - - Operating expenses General and administrative - - Selling - - Impairment loss of property, plant and equipment - - Total - - Income from discontinued operation - - Other (charges) / income (10 ) 26 Net (loss) / income from discontinued operation (10 ) 26 Less: net (income) / loss attributable to the non-controlling interest (5 ) 12 (Loss) / income from discontinued operation, net of tax $ (5 ) 14 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share Tables | |
Reconciliation of the weighted average shares | Three Months Ended September 30, 2015 2014 (Unaudited) (Unaudited) Income / (loss) attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ 264 $ (150 ) (Loss) / income attributable to Trio-Tech International common shareholders from discontinued operations, net of tax (5 ) 14 Net income / (loss) attributable to Trio-Tech International common shareholders $ 259 $ (136 ) Basic and diluted earnings / (loss) per share from continuing operations attributable to Trio-Tech International 0.08 (0.04 ) Basic and diluted earnings per share from discontinued operations attributable to Trio-Tech International - - Basic and diluted earnings / (loss) per share from net loss attributable to Trio-Tech International $ 0.08 $ (0.04 ) Weighted average number of common shares outstanding - basic 3,513 3,513 Dilutive effect of stock options 8 - Number of shares used to compute earnings per share – diluted 3,521 3,513 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Fair value weighted average assumptions | Three Months Ended September 30, 2015 2014 Expected volatility 71.44% to 104.94% 70.01% to 104.94% Risk-free interest rate 0.30% to 0.78% 0.30% to 0.78% Expected life (years) 2.50 2.50 to 3.25 |
Company's non-vested employee stock options | A of the status of the CompanyÂ’s non-vested employee stock options during the three months ended September 30, 2015 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2015 17,500 $ 1.69 Granted - - Vested - - Forfeited - - Non-vested at September 30, 2015 17,500 $ 1.69 A summary of the status of the CompanyÂ’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 |
2007 Employee Plan [Member] | |
Option activities | A summary of option activities under the 2007 Employee Plan during the three months ended September 30, 2015 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2015 130,000 $ 3.93 1.57 $ - Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at September 30, 2015 130,000 $ 3.93 1.32 $ - Exercisable at September 30, 2015 112,500 $ 4.06 1.03 $ - 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 Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic 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 |
2007 Directors Equity Incentive Plan [Member] | |
Option activities | A summary of option activities under the 2007 Directors Plan during the three months ended September 30, 2015 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2015 365,000 $ 3.64 1.99 $ 53 Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at September 30, 2015 365,000 $ 3.64 1.74 $ 13 Exercisable at September 30, 2015 365,000 $ 3.64 1.74 $ 13 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 Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value 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 |
ORGANIZATION AND BASIS OF PRE46
ORGANIZATION AND BASIS OF PRESENTATION (Details) | Sep. 30, 2015 |
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% |
ORGANIZATION AND BASIS OF PRE47
ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) | 3 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Date of incorporation | Jan. 1, 1958 |
State of incorporation | California |
ACCOUNTS RECEIVABLE AND ALLOW48
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Jun. 30, 2015 | |
Notes to Financial Statements | ||
Beginning | $ 313 | $ 438 |
Additions charged to expenses | 84 | |
Recovered/write-Off | (180) | |
Currency translation effect | $ (10) | (29) |
Ending | $ 303 | $ 313 |
LOANS RECEIVABLE FROM PROPERT49
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 |
Short-term loan receivables | |||
Less: allowance for doubtful receivables | $ (51) | ||
Jiang Huai [Member] | |||
Short-term loan receivables | |||
Short-term | $ 325 | $ 325 | |
Less: allowance for impairment | (325) | (325) | |
Jun Zhou Zhi Ye [Member] | |||
Short-term loan receivables | |||
Less: allowance for doubtful receivables | (68) | ||
Long-term loan receivables | |||
Long-term | 814 | 814 | |
Less: transfer – down-payment for purchase of property | $ (814) | $ (814) | |
Long-term loan receivables, net | |||
Yuan RMB | Jiang Huai [Member] | |||
Short-term loan receivables | |||
Short-term | $ 2,000 | $ 2,000 | |
Less: allowance for impairment | (2,000) | (2,000) | |
Yuan RMB | Jun Zhou Zhi Ye [Member] | |||
Long-term loan receivables | |||
Long-term | 5,000 | 5,000 | |
Less: transfer – down-payment for purchase of property | $ (5,000) | $ (5,000) | |
Long-term loan receivables, net |
LOANS RECEIVABLE FROM PROPERT50
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | |
Allowance for doubtful deemed interest receivables | $ 51 | ||
Jiang Huai [Member] | |||
Short-term Loan income receivable | $ 325 | $ 325 | |
Other income | |||
Impairment charge | $ 325 | ||
Jun Zhou Zhi Ye [Member] | |||
Long-term Loan income receivable | 814 | $ 814 | |
Other income | 68 | ||
Allowance for doubtful deemed interest receivables | 68 | ||
Yuan RMB | Jiang Huai [Member] | |||
Short-term Loan income receivable | 2,000 | 2,000 | |
Yuan RMB | Jun Zhou Zhi Ye [Member] | |||
Long-term Loan income receivable | $ 5,000 | 5,000 | |
Other income | $ 417 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Notes to Financial Statements | ||
Raw materials | $ 974 | $ 1,038 |
Work in progress | 692 | 611 |
Finished goods | 291 | 348 |
Less: provision for obsolete inventory | (685) | (764) |
Currency translation effect | (71) | (92) |
Inventory net | $ 1,201 | $ 1,141 |
INVENTORIES (Details 1)
INVENTORIES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Jun. 30, 2015 | |
Notes to Financial Statements | ||
Beginning | $ 764 | $ 844 |
Additions charged to expenses | 67 | |
Usage - disposition | $ (51) | (103) |
Currency translation effect | (28) | (44) |
Ending | $ 685 | $ 764 |
ASSETS HELD FOR SALE (Details N
ASSETS HELD FOR SALE (Details Narrative) - Property, Plant and Equipment [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Assets held for sale, net bok value | $ 83 | $ 98 |
Ringgit RM | ||
Assets held for sale, net bok value | $ 369 | $ 371 |
INVESTMENTS (Details Narrative)
INVESTMENTS (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | ||||||
May. 30, 2014 | Oct. 02, 2013 | Oct. 14, 2014 | Jul. 02, 2014 | Apr. 01, 2014 | Mar. 31, 2014 | Jan. 01, 2014 | |
Jia Sheng Jun Zhou Zhi [Member] | |||||||
Net investment | $ 1,606 | ||||||
Fee agreement | 1,606 | ||||||
Cash offset Received | 803 | ||||||
Investment reduced | 22 | ||||||
Carrying value of investment | $ 781 | ||||||
Acquisition percentage | 10.00% | ||||||
Installment payment amount outstanding | $ 325 | ||||||
Long term loan receivable | 814 | ||||||
Jia Sheng Jun Zhou Zhi [Member] | Yuan RMB | |||||||
Net investment | $ 10,000 | ||||||
Fee agreement | 10,000 | ||||||
Cash offset Received | 5,000 | ||||||
Uncollected fee | 5,000 | ||||||
Investment reduced | 137 | ||||||
Carrying value of investment | $ 4,863 | ||||||
Acquisition percentage | 10.00% | ||||||
Installment payment amount outstanding | $ 2,000 | ||||||
Long term loan receivable | 5,000 | ||||||
Interest receivable | 1,250 | ||||||
Cash consideration for disposal of joint venture | 5,900 | ||||||
Total disposal of joint venture amount | $ 8,000 | ||||||
ZhuShu [Member] | |||||||
Net investment | $ 1,634 | ||||||
Agreement purchase price, cash consideration | 1,307 | ||||||
Installment payment amount | 500 | ||||||
ZhuShu [Member] | Yuan RMB | |||||||
Net investment | 10,000 | ||||||
Agreement purchase price, cash consideration | $ 8,000 | ||||||
Installment payment amount outstanding | $ 8,000 | $ 500 | $ 500 | $ 500 | |||
Receipt of outstanding debt | $ 100 |
INVESTMENT PROPERTIES (Details)
INVESTMENT PROPERTIES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Reclassified as Assets held for sale | $ 83 | $ 98 |
MaoYe [Member] | ||
Investment Amount | 894 | 894 |
MaoYe [Member] | Yuan RMB | ||
Investment Amount | 5,554 | 5,554 |
Jiang Huai [Member] | ||
Investment Amount | 580 | 580 |
Jiang Huai [Member] | Yuan RMB | ||
Investment Amount | 3,600 | 3,600 |
Fu Li [Member] | ||
Investment Amount | 648 | 648 |
Fu Li [Member] | Yuan RMB | ||
Investment Amount | 4,025 | 4,025 |
China [Member] | ||
Currency translation | (48) | 1 |
Gross investment in rental property | 2,074 | 2,123 |
Accumulated depreciation on rental property | (596) | (583) |
Net investment in property | $ 1,478 | $ 1,540 |
China [Member] | Yuan RMB | ||
Currency translation | ||
Gross investment in rental property | $ 13,179 | $ 13,179 |
Accumulated depreciation on rental property | (3,781) | (3,619) |
Net investment in property | 9,398 | 9,560 |
Penang-Malaysia RM [Member] | ||
Investment Amount | 681 | 681 |
Gross investment in rental property | 681 | 681 |
Accumulated depreciation on rental property | (312) | (310) |
Reclassified as Assets held for sale | $ (369) | $ (371) |
Net investment in property | ||
Penang-Malaysia [Member] | ||
Investment Amount | $ 154 | $ 181 |
Gross investment in rental property | 154 | 181 |
Accumulated depreciation on rental property | (71) | (83) |
Reclassified as Assets held for sale | $ (83) | $ (98) |
Net investment in property |
INVESTMENT PROPERTIES (Details
INVESTMENT PROPERTIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | |
Rental income | $ 32 | $ 43 | |
Depreciation expenses | 26 | 27 | |
MaoYe [Member] | |||
Investment Amount | $ 894 | $ 894 | |
Rental agreement term | 5 years | ||
Rental increase | 5.00% | 8.00% | |
Rental income | $ 22 | $ 29 | |
MaoYe [Member] | Yuan RMB | |||
Investment Amount | 5,554 | $ 5,554 | |
Monthly rental | 38,520 | 38,645 | |
Jiang Huai [Member] | |||
Investment Amount | 580 | 580 | |
Jiang Huai [Member] | Yuan RMB | |||
Investment Amount | $ 3,600 | 3,600 | |
Rental income | |||
Fu Li [Member] | |||
Investment Amount | $ 648 | 648 | |
Rental increase | 6.00% | ||
Rental income | $ 10 | 14 | |
Fu Li [Member] | Yuan RMB | |||
Investment Amount | 4,025 | 4,025 | |
Monthly rental | 13,669 | 16,081 | |
Penang-Malaysia RM [Member] | |||
Investment Amount | 681 | 681 | |
Factory reclassified to investment property | 369 | ||
Penang [Member] | |||
Investment Amount | 154 | 181 | |
Factory reclassified to investment property | $ 83 | $ 98 |
OTHER ASSETS - Other assets (De
OTHER ASSETS - Other assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Down payment for purchase of investment properties | $ 1,645 | $ 1,645 |
Down payment for purchase of property, plant and equipment | 20 | 31 |
Deposit for rental and utilities | 140 | $ 147 |
Currency translation effect | (52) | |
Ending balance | $ 1,753 | $ 1,823 |
LINES OF CREDIT (Details)
LINES OF CREDIT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Jun. 30, 2015 | |
TrioTech Intl Credit Facility [Member] | ||
Credit limitation | $ 5,437 | $ 7,422 |
Unused credit | $ 3,533 | $ 6,161 |
TrioTech Intl Credit Facility [Member] | MinimumMember | ||
Type of facility | Lines of Credit | Lines of Credit |
Interest rate | 1.90% | 1.90% |
TrioTech Intl Credit Facility [Member] | Maximum Member | ||
Interest rate | 5.60% | 5.60% |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | ||
Type of facility | Lines of Credit | |
Credit limitation | $ 371 | $ 396 |
Unused credit | $ 371 | $ 79 |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | MinimumMember | ||
Type of facility | Lines of Credit | |
Interest rate | 6.30% | 6.30% |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | Maximum Member | ||
Interest rate | 6.70% | 6.70% |
TrioTech Tianjin Credit Facility [Member] | ||
Type of facility | Lines of Credit | |
Credit limitation | $ 1,259 | $ 1,289 |
Unused credit | $ 1,259 | $ 1,289 |
TrioTech Tianjin Credit Facility [Member] | MinimumMember | ||
Type of facility | Lines of Credit | |
Interest rate | 4.90% | 4.90% |
TrioTech Tianjin Credit Facility [Member] | Maximum Member | ||
Interest rate | 6.30% | 6.30% |
LINES OF CREDIT (Details Narrat
LINES OF CREDIT (Details Narrative) - Accounts Receivable Financing Facility [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Jun. 30, 2015 | |
Credit limitation | $ 1,289 | |
Effective interest rate | 130.00% | |
LOC start date | Aug. 24, 2015 | |
Yuan RMB | ||
Credit limitation | $ 8,000 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Notes to Financial Statements | ||
Payroll and related costs | $ 1,257 | $ 1,513 |
Commissions | 66 | 52 |
Customer deposits | 43 | 41 |
Legal and audit | 261 | 244 |
Sales tax | 103 | 131 |
Utilities | 110 | 129 |
Warranty | 100 | 109 |
Accrued purchase of materials and property, plant and equipment | 241 | 430 |
Provision for re-instatement | 410 | 422 |
Other accrued expenses | 230 | 243 |
Currency translation effect | (161) | (230) |
Total | $ 2,660 | $ 3,084 |
WARRANTY ACCRUAL (Details)
WARRANTY ACCRUAL (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Jun. 30, 2015 | |
Notes to Financial Statements | ||
Beginning | $ 103 | $ 60 |
Additions charged to cost and expenses | 12 | 114 |
Utilization / reversal | (15) | (65) |
Currency translation effect | (5) | (6) |
Ending | $ 95 | $ 103 |
WARRANTY ACCRUAL (Details Narra
WARRANTY ACCRUAL (Details Narratives) | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Product warranty term | The Company provides a one-year warranty for products manufactured by it. |
BANK LOANS PAYABLE (Details)
BANK LOANS PAYABLE (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Current portion | $ (310) | $ (346) |
Long term portion of bank loans payable | 1,810 | 2,198 |
Bank Note [Member] | ||
Bank loan payable | $ 1,854 | $ 2,218 |
Bank prime rate | 7.30% | 7.30% |
Loan collatoral | $ 2,667 | |
NotesPayableOtherPayablesMember | ||
Bank loan payable | $ 266 | $ 326 |
Bank prime rate | 4.10% | 6.90% |
Loan collatoral | $ 337 |
BANK LOANS PAYABLE (Details 1)
BANK LOANS PAYABLE (Details 1) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Notes to Financial Statements | ||
2,016 | $ 346 | |
2,017 | $ 310 | 322 |
2,018 | 248 | 183 |
2,019 | 158 | 193 |
2,020 | 166 | 203 |
2,020 | 175 | |
Thereafter | 1,063 | 1,297 |
Total obligations and commitments | $ 2,120 | $ 2,544 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Malaysia US [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 9 | |
Tianjin [Member] | Yuan RMB | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 155 | |
TianjnUS [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 24 | |
Malaysia [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 1 | |
Malaysia [Member] | Ringgit RM | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 6 | $ 33 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Net revenue | $ 7,930 | $ 8,093 | |
Operating Income (Loss) | 299 | (134) | |
Total assets | 30,480 | 33,335 | |
Depreciation and amortization | 484 | 623 | |
Capital expenditures | 254 | 467 | |
Manufacturing [Member] | |||
Net revenue | 3,140 | 3,047 | |
Operating Income (Loss) | 242 | (618) | |
Total assets | 5,618 | 10,437 | |
Depreciation and amortization | 54 | 27 | |
Capital expenditures | 17 | 17 | |
Testing Services [Member] | |||
Net revenue | 3,783 | 4,618 | |
Operating Income (Loss) | 78 | 576 | |
Total assets | 20,495 | 18,471 | |
Depreciation and amortization | 403 | 569 | |
Capital expenditures | 237 | 444 | |
Distribution [Member] | |||
Net revenue | 975 | 385 | |
Operating Income (Loss) | 19 | (36) | |
Total assets | $ 749 | $ 494 | |
Depreciation and amortization | |||
Capital expenditures | $ 6 | ||
RealEstate [Member] | |||
Net revenue | $ 32 | 43 | |
Operating Income (Loss) | (24) | (48) | |
Total assets | 3,530 | 3,807 | |
Depreciation and amortization | $ 27 | $ 27 | |
Capital expenditures | |||
Fabrication Services [Member] | |||
Net revenue | [1] | ||
Operating Income (Loss) | [1] | ||
Total assets | [1] | $ 26 | $ 51 |
Depreciation and amortization | [1] | ||
Capital expenditures | [1] | ||
CorporateAndUnallocated [Member] | |||
Net revenue | |||
Operating Income (Loss) | $ (16) | $ (8) | |
Total assets | $ 62 | $ 75 | |
Depreciation and amortization | |||
Capital expenditures | |||
[1] | Fabrication Services is a discontinued operation. |
BUSINESS SEGMENTS (Details Narr
BUSINESS SEGMENTS (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
RealEstate [Member] | ||
Other income | $ 51 | |
Inter Segment [Member] | ||
Net revenue | $ 115 | $ 45 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Other Income Details | ||
Investment income deemed interest income | $ 51 | |
Interest income | $ 3 | 3 |
Other rental income | 24 | 26 |
Exchange gain / (loss) | $ 184 | (10) |
Allowance for doubtful deemed interest receivables | (51) | |
Other miscellaneous income | $ (3) | 27 |
Total | $ 208 | $ 46 |
OTHER INCOME (Details Narrative
OTHER INCOME (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Other Income and Expenses [Abstract] | ||
Other investment income | $ 51 | |
Allowance for doubtful interest receivables | $ 51 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 67 | $ (46) |
DISCONTINUED OPERATION AND CO71
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Notes to Financial Statements | ||
Revenue | ||
Cost of sales | ||
Gross margin | ||
Operating expenses | ||
General and administrative | ||
Selling | ||
Impairment loss of property, plant and equipment | ||
Total | ||
Income from discontinued operation | ||
Other (charges) / income | $ (10) | $ 26 |
Net (loss) / income from discontinued operation | (10) | 26 |
Less: net (income) / loss attributable to the non-controlling interest | (5) | 12 |
(Loss) / income from discontinued operations, net of tax | $ (5) | $ 14 |
DISCONTINUED OPERATION AND CO72
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | |
General and administrative expenses, discontinued operations | $ 4 | ||
Accounts payable | $ 2,980 | $ 2,770 | |
Fabrication Services [Member] | |||
Accounts payable | $ 60 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Notes to Financial Statements | ||
Income / (loss) attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ 264 | $ (150) |
(Loss) / income attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | (5) | 14 |
Net income / (loss) attributable to Trio-Tech International common shareholders | $ 259 | $ (136) |
Basic and diluted earnings / (loss) per share from continuing operations attributable to Trio-Tech International | $ 0.08 | $ (0.04) |
Basic and diluted earnings per share from discontinued operations attributable to Trio-Tech International | ||
Basic and diluted earnings / (loss) per share from net loss attributable to Trio-Tech International | $ .08 | $ (.04) |
Weighted average number of common shares outstanding - basic | 3,513 | 3,513 |
Dilutive effect of stock options | 8 | |
Number of shares used to compute earnings per share - diluted | 3,521 | 3,513 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - $ / shares | Sep. 30, 2015 | Sep. 30, 2014 |
Options outstanding | 495,000 | 445,000 |
MinimumMember | ||
Exercise Price | $ 2.26 | $ 2.07 |
Maximum Member | ||
Exercise Price | $ 3.20 | $ 4.35 |
STOCK OPTIONS (Details)
STOCK OPTIONS (Details) | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Expected life (years) | 2 years 6 months | |
MinimumMember | ||
Expected volatility | 71.44% | 70.01% |
Risk-free interest rate | 0.30% | 0.30% |
Expected life (years) | 2 years 6 months | |
Maximum Member | ||
Expected volatility | 104.94% | 104.94% |
Risk-free interest rate | 0.78% | 0.78% |
Expected life (years) | 3 years 3 months |
STOCK OPTIONS (Details 1)
STOCK OPTIONS (Details 1) - 2007 Employee Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Outstanding at beginning of period | 130,000 | 130,000 |
Granted, Options | ||
Exercised, Options | ||
Forfeited or expired, Options | ||
Options outstanding | 130,000 | 130,000 |
Exercisable at end of period | 112,500 | 103,750 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.93 | $ 3.93 |
Granted, Weighted- Average Exercise Price | ||
Exercised, Weighted- Average Exercise Price | ||
Forfeited or expired, Weighted- Average Exercise Price | ||
Outstanding at end of period, Weighted- Average Exercise Price | $ 3.93 | $ 3.93 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 4.06 | $ 4.14 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 6 months 25 days | 2 years 6 months 25 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 3 months 25 days | 2 years 3 months 19 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 11 days | 1 year 10 months 6 days |
Outstanding at beginning of period | $ 13 | |
Granted, Aggregate Intrinsic Value | ||
Exercised, Aggregate Intrinsic Value | ||
Forfeited or expired, Aggregate Intrinsic Value | ||
Outstanding at end of period | $ 31 | |
Exercisable at end of period, Aggregate Intrinsic Value | $ 10 |
STOCK OPTIONS (Details 2)
STOCK OPTIONS (Details 2) - $ / shares | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Notes to Financial Statements | ||
Non-vested at beginning of period, Options | 17,500 | 26,250 |
Granted, Options | ||
Vested, Options | ||
Forfeited, Options | ||
Non-vested at end of period, Options | 17,500 | 26,250 |
Non-vested at beginning of period, Weighted-Average Grant-Date Fair Value | $ 1.69 | $ 1.69 |
Granted, Options, Weighted-Average Grant-Date Fair Value | ||
Vested, Options, Weighted-Average Grant-Date Fair Value | ||
Forfeited, Options, Weighted-Average Grant-Date Fair Value | ||
Non-vested at end of period, Options , Weighted-Average Grant-Date Fair Value | $ 1.69 | $ 1.69 |
STOCK OPTIONS (Details 3)
STOCK OPTIONS (Details 3) - 2007 Directors Equity Incentive Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Summary of option activities under the 2007 Directors Equity Incentive Plan | ||
Outstanding at beginning of period | 365,000 | 315,000 |
Granted, Options | ||
Exercised, Options | ||
Forfeited or expired, Options | ||
Options outstanding | 365,000 | 315,000 |
Exercisable at end of period | 365,000 | 315,000 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.64 | $ 3.62 |
Granted, Weighted- Average Exercise Price | ||
Exercised, Weighted- Average Exercise Price | ||
Forfeited or expired, Weighted- Average Exercise Price | ||
Outstanding at end of period, Weighted- Average Exercise Price | $ 3.64 | $ 3.62 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 3.64 | $ 3.62 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 11 months 26 days | 2 years 7 months 17 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 8 months 26 days | 2 years 4 months 13 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 8 months 26 days | 2 years 4 months 13 days |
Aggregate Intrinsic Value | ||
Outstanding at beginning of period | $ 53 | $ 24 |
Granted, Aggregate Intrinsic Value | ||
Exercised, Aggregate Intrinsic Value | ||
Forfeited or expired, Aggregate Intrinsic Value | ||
Outstanding at end of period | $ 13 | $ 151 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 13 | $ 151 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 08, 2013 | |
Stock-based compensation expense | $ 4 | $ 9 | |
Employee 2007 [Member] | |||
Shares authorized | 600,000 | ||
Options granted | |||
Exercised during period | |||
Stock-based compensation expense | $ 4 | $ 9 | |
Weighted average contractual term, nonvested | 1 year 2 months 9 days | 2 years 2 months 9 days | |
Unamortized stock-based compensation | $ 27 | ||
Vested stock options | 112,500 | 103,750 | |
Weighted-average exercise price, vested options | $ 4.06 | $ 4.14 | |
Weighted average contractual term | 1 year 11 days | 1 year 10 months 6 days | |
Fair value of stock options, vested | $ 457 | $ 430 | |
Employee 2007 [Member] | Maximum Member | |||
Weighted average contractual term | 10 years | ||
Employee 2007 [Member] | Weighted Average [Member] | |||
Weighted average contractual term | 5 years | ||
Director 2007 [Member] | |||
Shares authorized | 500,000 | 400,000 | |
Options granted | |||
Exercised during period | |||
Stock-based compensation expense | |||
Vested stock options | 365,000 | 315,000 | |
Weighted-average exercise price, vested options | $ 3.64 | $ 3.62 | |
Weighted average contractual term | 1 year 8 months 26 days | 2 years 4 months 13 days | |
Fair value of stock options, vested | $ 13 | $ 151 | |
Director 2007 [Member] | Weighted Average [Member] | |||
Weighted average contractual term | 5 years |
SUBSEQUENT EVENT (Details Narra
SUBSEQUENT EVENT (Details Narrative) - Director 2007 [Member] $ / shares in Units, $ in Thousands | Oct. 05, 2015USD ($)$ / sharesshares |
Option grant | 50,000 |
Fair value of options granted | $ | $ 54 |
Option grant share price | $ / shares | $ 2.69 |