Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | TRIO-TECH INTERNATIONAL | |
Entity Central Index Key | 0000732026 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 3,673,055 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,602 | $ 6,539 |
Short-term deposits | 3,646 | 653 |
Trade accounts receivable, less allowance for doubtful accounts of $256 and $259 | 7,120 | 7,747 |
Other receivables | 1,034 | 881 |
Inventories, less provision for obsolete inventory of $660 and $695 | 2,918 | 2,930 |
Prepaid expenses and other current assets | 307 | 208 |
Assets held for sale | 90 | 91 |
Total current assets | 19,717 | 19,049 |
NON-CURRENT ASSETS | ||
Deferred tax assets | 335 | 400 |
Investment properties, net | 828 | 1,146 |
Property, plant and equipment, net | 12,687 | 11,935 |
Other assets | 1,728 | 2,249 |
Restricted term deposits | 1,705 | 1,695 |
Total non-current assets | 17,283 | 17,425 |
TOTAL ASSETS | 37,000 | 36,474 |
CURRENT LIABILITIES: | ||
Lines of credit | 622 | 2,043 |
Accounts payable | 3,021 | 3,704 |
Accrued expenses | 3,882 | 3,172 |
Income taxes payable | 404 | 285 |
Current portion of bank loans payable | 492 | 367 |
Current portion of capital leases | 257 | 250 |
Total current liabilities | 8,678 | 9,821 |
NON-CURRENT LIABILITIES: | ||
Bank loans payable, net of current portion | 2,442 | 1,437 |
Capital leases, net of current portion | 325 | 524 |
Deferred tax liabilities | 343 | 327 |
Income taxes payable | 613 | 828 |
Other non-current liabilities | 32 | 36 |
Total non-current liabilities | 3,755 | 3,152 |
TOTAL LIABILITIES | 12,433 | 12,973 |
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: | ||
Common stock, no par value, 15,000,000 shares authorized; 3,673,055 shares issued and outstanding as at March 31, 2019, and 3,553,055 shares as at June 30, 2018 | 11,424 | 11,023 |
Paid-in capital | 3,261 | 3,249 |
Accumulated retained earnings | 6,621 | 5,525 |
Accumulated other comprehensive gain-translation adjustments | 2,055 | 2,182 |
Total Trio-Tech International shareholders' equity | 23,361 | 21,979 |
Non-controlling interest | 1,206 | 1,522 |
TOTAL EQUITY | 24,567 | 23,501 |
TOTAL LIABILITIES AND EQUITY | $ 37,000 | $ 36,474 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 256 | $ 259 |
Provision for obsolete inventory | $ 660 | $ 695 |
Common stock, authorized | 15,000,000 | 15,000,000 |
Common stock, issued | 3,673,055 | 3,553,055 |
Common stock, outstanding | 3,673,055 | 3,553,055 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | ||||
Manufacturing | $ 3,097 | $ 3,124 | $ 10,086 | $ 11,862 |
Testing services | 3,989 | 4,913 | 12,819 | 14,454 |
Distribution | 1,727 | 2,033 | 5,587 | 5,175 |
Real estate | 25 | 34 | 81 | 110 |
Total | 8,838 | 10,104 | 28,573 | 31,601 |
Cost of Sales | ||||
Cost of manufactured products sold | 2,303 | 2,530 | 7,806 | 9,247 |
Cost of testing services rendered | 2,862 | 3,491 | 9,351 | 9,881 |
Cost of distribution | 1,483 | 1,821 | 4,831 | 4,598 |
Cost of real estate | 16 | 30 | 52 | 88 |
Total | 6,664 | 7,872 | 22,040 | 23,814 |
Gross Margin | 2,174 | 2,232 | 6,533 | 7,787 |
Operating Expenses | ||||
General and administrative | 1,742 | 1,773 | 5,223 | 5,339 |
Selling | 246 | 181 | 580 | 612 |
Research and development | 76 | 75 | 270 | 377 |
Gain on disposal of property, plant and equipment | (13) | (31) | (13) | (20) |
Total operating expenses | 2,051 | 1,998 | 6,060 | 6,308 |
Income from Operations | 123 | 234 | 473 | 1,479 |
Other Income / (Expenses) | ||||
Interest expenses | (74) | (64) | (250) | (174) |
Other income, net | 128 | 111 | 220 | 311 |
Gain on sale of assets held for sale | 685 | 0 | 685 | 0 |
Total other income | 739 | 47 | 655 | 137 |
Income from Continuing Operations before Income Taxes | 862 | 281 | 1,128 | 1,616 |
Income Tax Expenses | (209) | (980) | (159) | (1,035) |
Income / (loss) from continuing operations before non-controlling interest, net of tax | 653 | (699) | 969 | 581 |
Discontinued Operations | ||||
Income / (loss) from discontinued operations, net of tax | 2 | (6) | (2) | (11) |
NET INCOME / (LOSS) | 655 | (705) | 967 | 570 |
Less: net (loss) / income attributable to non-controlling interest | (28) | 34 | (129) | 61 |
Net Income Attributable to Trio-Tech International Common Shareholder | 683 | (739) | 1,096 | 509 |
Amounts Attributable to Trio-Tech International Common Shareholders: | ||||
Income / (loss) from continuing operations, net of tax | 682 | (736) | 1,097 | 520 |
Income / (loss) from discontinued operations, net of tax | 1 | (3) | (1) | (11) |
Net Income Attributable to Trio-Tech International Common Shareholders | $ 683 | $ (739) | $ 1,096 | $ 509 |
Basic Earnings per Share: | ||||
Basic earnings per share from continuing operations attributable to Trio-Tech International | $ 0.19 | $ (0.21) | $ 0.3 | $ 0.15 |
Basic earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | 0 | 0 |
Basic Earnings per Share from Net Income Attributable to Trio-Tech International | 0.19 | (0.21) | 0.3 | 0.15 |
Diluted Earnings per Share: | ||||
Diluted earnings per share from continuing operations attributable to Trio-Tech International | 0.19 | (0.20) | 0.29 | 0.14 |
Diluted earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | 0 | 0 |
Diluted Earnings per Share from Net Income Attributable to Trio-Tech International | $ 0.19 | $ (0.20) | $ 0.29 | $ 0.14 |
Weighted average number of common shares outstanding basic | 3,673 | 3,553 | 3,673 | 3,553 |
Dilutive effect of stock options | 12 | 219 | 73 | 225 |
Number of shares used to compute earnings per share diluted | 3,685 | 3,772 | 3,746 | 3,778 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Comprehensive Income Attributable to Trio-Tech International Common Shareholders: | ||||
Net income / (loss) | $ 655 | $ (705) | $ 967 | $ 570 |
Foreign currency translation, net of tax | 401 | 849 | (189) | 1,809 |
Comprehensive Income | 1,056 | 144 | 778 | 2,379 |
Less: comprehensive income / (loss) attributable to non-controlling interest | 1 | 142 | (191) | 255 |
Comprehensive Income attributable to Trio-Tech International Common Shareholders | $ 1,055 | $ 2 | $ 969 | $ 2,124 |
CONDENSED CONSOLIDATED STATEM_3
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, 2017 | $ 10,921 | $ 3,206 | $ 4,341 | $ 1,633 | $ 1,426 | $ 21,527 |
Beginning Balance, No. of Shares at Jun. 30, 2017 | 3,523 | |||||
Stock option expenses | 40 | 40 | ||||
Net income | 509 | 61 | 570 | |||
Dividend declared by subsidiary | (125) | (125) | ||||
Exercise of options, Amount | $ 51 | 51 | ||||
Exercise of options, No. of Shares | 20 | |||||
Issue of restricted shares to consultant, Amount | $ 51 | 51 | ||||
Issue of restricted shares to consultant, No. of Shares | 10 | |||||
Translation adjustment | 1,615 | 194 | 1,809 | |||
Ending Balance, Amount at Mar. 31, 2018 | $ 11,013 | 3,246 | 4,850 | 3,248 | 1,556 | 23,923 |
Ending Balance, No. of Shares at Mar. 31, 2018 | 3,553 | |||||
Beginning Balance, Amount at Jun. 30, 2018 | $ 11,023 | 3,249 | 5,525 | 2,182 | 1,522 | 23,501 |
Beginning Balance, No. of Shares at Jun. 30, 2018 | 3,553 | |||||
Stock option expenses | 12 | 12 | ||||
Net income | 1,096 | (129) | 967 | |||
Dividend declared by subsidiary | (125) | (125) | ||||
Exercise of options, Amount | $ 401 | 401 | ||||
Exercise of options, No. of Shares | 120 | |||||
Translation adjustment | (127) | (62) | (189) | |||
Ending Balance, Amount at Mar. 31, 2019 | $ 11,424 | $ 3,261 | $ 6,621 | $ 2,055 | $ 1,206 | $ 24,567 |
Ending Balance, No. of Shares at Mar. 31, 2019 | 3,673 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flow from Operating Activities | ||
Net income | $ 967 | $ 570 |
Adjustments to reconcile net income to net cash flow provided by operating activities | ||
Gain on sale of assets held for sale | (685) | 0 |
Depreciation and amortization | 1,777 | 1,594 |
Stock compensation | 12 | 40 |
Usage of provision for obsolete inventory | (37) | (4) |
Reversal of income tax provision | (145) | 0 |
Bad debt recovery | 1 | 0 |
Accrued interest expense, net accrued interest income | 34 | 148 |
Gain on sale of property, plant and equipment - continued operations | (13) | (20) |
Issuance of shares to service provider | 0 | 51 |
Warranty recovery, net | (35) | 1 |
Fixed assets written off | (33) | 0 |
Deferred tax benefit / (provision) | 78 | 33 |
Changes in operating assets and liabilities, net of acquisition effect | ||
Trade accounts receivable | 626 | 392 |
Other receivables | (153) | 9 |
Other assets | 489 | (327) |
Inventories | 60 | (506) |
Prepaid expenses and other current assets | (99) | 7 |
Accounts payable and accrued liabilities | 60 | 250 |
Income tax payable | 58 | 884 |
Net Cash Provided by Operating Activities | 2,962 | 3,122 |
Cash Flow from Investing Activities | ||
Proceeds from sale of assets held for sale | 943 | 0 |
Proceeds from maturing of unrestricted and restricted term deposits and short-term deposits, net | 0 | 484 |
Proceeds from disposal of plant, property and equipment | 3 | 42 |
Investments in restricted and unrestricted deposits | (2,939) | (281) |
Additions to property, plant and equipment | (2,576) | (2,050) |
Net Cash Used in Investing Activities | (4,569) | (1,805) |
Cash Flow from Financing Activities | ||
Repayments on lines of credit | (7,316) | (7,397) |
Repayment of bank loans and capital leases | (625) | (554) |
Dividends paid to non-controlling interest | (125) | (125) |
Proceeds from exercising of stock option | 401 | 51 |
Proceeds from bank loans and capital leases | 7,470 | 6,570 |
Net Cash Generated from / (Used in) Financing Activities | (195) | (1,455) |
Effect of Changes in Exchange Rate | (125) | 742 |
Net (Decrease) / Increase in Cash, Cash Equivalents, and Restricted Cash | (1,927) | 604 |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 8,234 | 4,772 |
Cash, Cash Equivalents, and Restricted Cash at End of Period | 6,307 | 8,234 |
Supplementary Information of Cash Flows | ||
Cash paid during the period for Interest | 217 | 138 |
Cash paid during the period for Income taxes | 114 | 225 |
Non-Cash Transactions | ||
Capital lease of property, plant and equipment | 0 | 228 |
Reconciliation of Cash, cash equivalents, and restricted cash | ||
Cash | 4,602 | 6,539 |
Restricted term-deposits in non-current assets | 1,705 | 1,695 |
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ 6,307 | $ 8,234 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Mar. 31, 2019 | |
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 third quarter of fiscal year 2019, 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 (SIP) Co. Ltd. * 100% Suzhou, 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 (“GAAP”) 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 GAAP 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 and nine months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2019. 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, 2018. Except as otherwise specifically noted in this Form 10-Q, the Company’s operating results are presented based on the translation of foreign currencies using the respective quarter’s average exchange rate. Certain reclassifications have been made to prior period amounts to conform to the current presentation. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
NEW ACCOUNTING PRONOUNCEMENTS | The amendments in ASU 2018-19 ASC Topic 326: Codification Improvements to Financial Instruments – Credit Losses The amendments in ASU 2018-18 ASC Topic 808: Collaborative Arrangements: Clarifying the Interaction between Topic 808 and Topic 606 The amendments in ASU 2018-13 ASC Topic 820: Fair Value Measurement: Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement The amendments in ASU 2018-09 Codification Improvements The amendments in ASU 2018-02 ASC Topic 220: Income Statement – Reporting Comprehensive Income The amendments in Accounting Standards Update (“ASU”) 2017-11: Earnings Per Share ; Distinguishing Liabilities from Equity ; Derivatives and Hedging The amendments in ASU 2017-04 ASC Topic 350 — ' Intangibles - Goodwill and Other The amendments in ASU 2016-13 ASC Topic 326: Financial Instruments — Credit losses In February 2016, the FASB issued an ASU 2016-12 ASC Topic 842: Leases Codification Improvements to Leases Leases Leases: Targeted Improvements Leases: Narrow-Scope Improvements for Lessors Other new pronouncements issued but not yet effective until after March 31, 2019 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
TERM DEPOSITS
TERM DEPOSITS | 9 Months Ended |
Mar. 31, 2019 | |
Term Deposits | |
TERM DEPOSITS | Mar. 31, 2019 (Unaudited) June 30, 2018 Short-term deposits $ 3,615 $ 606 Currency translation effect on short-term deposits 31 47 Total short-term deposits 3,646 653 Restricted term deposits 1,690 1,664 Currency translation effect on restricted term deposits 15 31 Total restricted term deposits 1,705 1,695 Total term deposits $ 5,351 $ 2,348 Restricted deposits represent the amount of cash pledged to secure loans payable granted by financial institutions and serve as collateral for public utility agreements such as electricity and water. Restricted deposits are classified as non-current assets, as they relate to long-term obligations and will become unrestricted only upon discharge of the obligations. Short-term deposits represent bank deposits, which do not qualify as cash equivalents. |
TRADE ACCOUNTS RECEIVABLE AND A
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 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 periodic 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 reasonable 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 March 31, 2019 and June 30, 2018 was adequate. The following table represents the changes in the allowance for doubtful accounts: Mar. 31, 2019 (Unaudited) June 30, 2018 Beginning $ 259 $ 247 Additions charged to expenses 85 8 Recovered (84 ) (1 ) Currency translation effect (4 ) 5 Ending $ 256 $ 259 |
LOANS RECEIVABLE FROM PROPERTY
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | The following table presents Trio-Tech (Chongqing) Co. Ltd. (“TTCQ”)’s loan receivable from property development projects in China as of March 31, 2019. 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 of March 31, 2019. 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 doubtful receivables (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 property (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 310-10-25 Receivables On November 1, 2010, TTCQ entered into a Memorandum Agreement with JiaSheng Property Development Co. Ltd. (“JiaSheng”) to invest in their property development projects (Project B-48 Phase 2) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310, 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 expired on October 31, 2016. Prior to the second quarter of fiscal year 2015, the loan receivable was classified as a long-term receivable. The book value of the loan receivable approximates its fair value. In the second quarter of fiscal year 2015, the loan receivable was transferred to the down payment for the purchase of an investment property that is being developed in the Singapore Themed Resort Project (see Note 8). |
INVENTORIES
INVENTORIES | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
INVENTORIES | Inventories consisted of the following: Mar. 31, 2019 (Unaudited) June 30, 2018 Raw materials $ 1,206 $ 1,153 Work in progress 1,839 1,947 Finished goods 520 505 Currency translation effect 13 20 Less: provision for obsolete inventory (660 ) (695 ) $ 2,918 $ 2,930 The following table represents the changes in provision for obsolete inventory: Mar. 31, 2019 (Unaudited) June 30, 2018 Beginning $ 695 $ 686 Additions charged to expenses 5 9 Usage – disposition (42 ) (5 ) Currency translation effect 2 5 Ending $ 660 $ 695 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 9 Months Ended |
Mar. 31, 2019 | |
Assets Held For Sale | |
ASSETS HELD FOR SALE | Penang Property During the fourth quarter of 2015, the operations in Malaysia planned to sell its factory building in Penang, Malaysia. In accordance with ASC Topic 360, during fiscal year 2015 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. In May 2015, Trio-Tech Malaysia was approached by a potential buyer to purchase the factory building. On September 14, 2015, application to sell the property was rejected by Penang Development Corporation (PDC). The rejection was because the business activity of the purchaser was not suitable to the industry that is being promoted on said property. PDC made an offer to purchase the property, which was not at the expected value and the offer expired on March 28, 2016 and no further conversations with PDC have occurred since. Management received an expression of interest from a potential buyer in acquiring the property during second quarter of fiscal year 2019 and the sale is still under negotiation with the potential buyer during third quarter of fiscal year 2019. The completion of the sale is also subject to the approval by Penang Development Corporation. The net book values of the building was RM371, or $90, as at March 31, 2019 and RM371, or $91, as at June 30, 2018. Mao Ye Property During the first quarter of 2019, management decided to sell Mao Ye Property, which is one of our earlier investment properties. In order to monetize the capital gain on property, TTCQ appointed a sole agent for 6 months as of September 1, 2018 to search for suitable buyers for this property. The Company has completed the sale of thirteen of the fifteen units constituting the Mao Ye Property as the end of the third quarter 2019 which contributed the gain of $685. During the third quarter 2019, considering the current market conditions in China, management has decided not to sell the remaining two units of Mao Ye properties and as of third quarter 2019, the properties were reclassified to investment property from assets held for sale. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
INVESTMENTS | 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 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 Company would receive a fee of RMB 10,000, or approximately $1,606 for the services rendered in connection with bidding 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. 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 received in cash from JiaSheng, the controlling venturer in the joint venture, as a partial return of the Company’s initial investment, 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. Transaction amounts in this paragraph were translated into US dollars based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore. During the second quarter of fiscal year 2014, TTCQ decided to dispose of its 10% interest in the joint venture after TTCQ revalued certain monetary risks relating to the development of the project. On October 2, 2013, TTCQ entered into a share transfer agreement (the “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 consisting of commercial units measuring 668 square meters to be delivered in June 2016, and (2) the remaining RMB 8,000, or approximately $1,307 by cash consideration to be paid in sixteen quarterly equal instalments 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 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 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 5, 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 consideration does not include the remaining outstanding amount of RMB 2,000, or approximately $326, which will be paid to TTCQ in cash. The shop lots are to be delivered to TTCQ upon completion of the construction of the shop lots in the Singapore Themed Resort Project. The initial targeted date of completion was December 31, 2016. Based on discussions with the developers, the completion date is currently estimated to be December 31, 2021. The Share Transfer Agreement (10% interest in the joint venture) was registered with the relevant authorities in China during October 2016. |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
INVESTMENT PROPERTIES | The following table presents the Company’s investment in properties in China as of March 31, 2019. The exchange rate is based on the market rate as of March 31, 2019. Investment Date / Reclassification Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I – Mao Ye Property Jan 04, 2008 5,554 894 Currency translation - (87 ) Reclassification as “Assets held for sale” July 01, 2018 (5,554 ) (807 ) Reclassification from “Assets held for sale” Mar 31, 2019 2,024 301 2,024 301 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 - (93 ) Gross investment in rental property 9,649 1,436 Accumulated depreciation on rental property Mar 31, 2019 (5,879 ) (875 ) Reclassified as “Assets held for sale” July 01, 2018 2,822 410 Reclassification from “Assets held for sale” Mar 31, 2019 (1,029 ) (143 ) (4,086 ) (608 ) Net investment in property – China 5,563 828 The following table presents the Company’s investment in properties in China as of June 30, 2018. The exchange rate is based on the market rate as of June 30, 2018. Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I - Mao Ye Property 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 - (131 ) Gross investment in rental property 13,179 1,991 Accumulated depreciation on rental property June 30, 2018 (5,596 ) (845 ) Net investment in property – China 7,583 1,146 The following table presents the Company’s investment properties in Malaysia as of March 31, 2019 and June 30, 2018. 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 Investment Amount (RM) (U.S. Dollars) Purchase of Penang Property Dec 31, 2012 681 181 Currency translation - (16 ) Reclassification as “Assets held for sale” June 30, 2015 (681 ) (165 ) - - Accumulated depreciation on rental property June 30, 2015 (310 ) (83 ) Currency translation - 7 Reclassified as “Assets held for sale” June 30, 2015 (310 ) (76 ) Net investment in rental property - Malaysia - - Rental Property I - Mao Ye Property In fiscal 2008, TTCQ purchased an office in Chongqing, China from Mao Ye Property Ltd. (“Mao Ye”), for a total cash purchase price of RMB 5,554, or approximately $894. TTCQ identified a new tenant and signed a new rental agreement (653 square meters at a monthly rent of RMB 39, or approximately $6) on August 1, 2015 which expires on July 31, 2020. TTCQ signed a new rental agreement (451 square meters at a monthly rent of RMB 24, or approximately $4) on February 1, 2018 which expires on January 31, 2021. During the first quarter of 2019, management decided to sell Mao Ye Property, which is one of our earlier investment properties. In order to monetize the capital gain on property, TTCQ appointed a sole agent for 6 months as of September 1, 2018 to search for suitable buyers for this property. The Company has completed the sale of thirteen of the fifteen units constituting the Mao Ye Property as the end of third quarter 2019 which contributed the gain of $685. During the third quarter 2019, considering the current market conditions in China, management has decided not to sell the remaining two units of Mao Ye properties and as of third quarter 2019, the properties were reclassified to investment property from assets held for sale. Property purchased from Mao Ye generated a rental income of $15 and $58 during the three and nine months ended March 31, 2019, respectively, and $22 and $75 for the same periods 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. Although these units were rented in the past, all eight units are currently 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 vacancies in possession with the exception of two units, which are 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. Property purchased from JiangHuai did not generate any rental income during the three and nine months ended March 31, 2019 or during the same period in the prior fiscal year. Rental Property III – FuLi In fiscal 2010, TTCQ entered into a Memorandum Agreement with Chongqing FuLi Real Estate Development Co. Ltd. (“FuLi”) to purchase two commercial properties totalling 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. The development was completed and the property was handed over in 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 such leases provides for a rent increase of 5% every year on May 1, commencing in 2017 until the rental agreement expires on April 30, 2019. The rental agreement of this lease has been extended for 3 years, commencing from May 01, 2019 to Apr 30, 2021 with a term of rent increase of 6% every year. For the other lease expired on March 31, 2018, TTCQ identified a new tenant and signed a new rental agreement (161 square meters at a monthly rent of RMB 62, or approximately $9) on November 1, 2018 which expires on October 31, 2019. Properties purchased from Fu Li generated a rental income of $10 and $23 for the three and nine months ended March 31, 2019, respectively, while it generated a rental income of $12 and $35 for the same periods in the last fiscal year. Summary Total rental income for all investment properties in China was $25 and $81 for the three and nine months ended March 31, 2019, respectively, and were $34 and $110 for the same periods in the last fiscal year. Depreciation expenses for all investment properties in China were $14 and $42 and for the three and nine months ended March 31, 2019, respectively, and were $25 and $74 for the same periods in the last fiscal year. |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | Other assets consisted of the following: Mar. 31, 2019 (Unaudited) June 30, 2018 Down payment for purchase of investment properties $ 1,645 $ 1,645 Down payment for purchase of property, plant and equipment 71 561 Deposits for rental and utilities 140 140 Currency translation effect (128 ) (97 ) Total $ 1,728 $ 2,249 |
LINES OF CREDIT
LINES OF CREDIT | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
LINES OF CREDIT | Carrying value of the Company’s lines of credit approximates its fair value because the interest rates associated with the lines of credit are adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of March 31, 2019, 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 Lines of Credit - $ 4,206 $ 4,072 Trio-Tech (Tianjin) Co., Ltd. - $ 1,490 $ 1,250 - $ 369 $ 121 As of June 30, 2018, 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 Lines of Credit - $ 4,183 $ 3,325 Trio-Tech (Tianjin) Co., Ltd. - $ 1,511 $ 437 - $ 367 $ 256 Trio-Tech International Pte. Ltd. signed an agreement with a bank to sub-allocate a portion of the facility thereunder to Universal (Far East) Pte. Ltd. for an Accounts Payable Financing facility for Singapore Dollar of 500, or approximately $369. Interest charged ranges between 1.83% and 5.5%. The financing facility was set up to facilitate the working capital in our operations in Singapore. The Company started to use this facility in fiscal year 2018. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Mar. 31, 2019 | |
Accrued Expenses | |
ACCRUED EXPENSES | Accrued expenses consisted of the following: Mar. 31, 2019 (Unaudited) June 30, 2018 Payroll and related costs $ 1,129 $ 1,545 Commissions 135 89 Customer deposits 1,117 17 Legal and audit 300 265 Sales tax 16 17 Utilities 117 130 Warranty 47 82 Accrued purchase of materials and property, plant and equipment 355 454 Provision for re-instatement 302 289 Other accrued expenses 363 203 Currency translation effect 1 81 Total $ 3,882 $ 3,172 |
WARRANTY ACCRUAL
WARRANTY ACCRUAL | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
WARRANTY ACCRUAL | The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded. The warranty period of the products manufactured by the Company is generally one year or the warranty period agreed with the customer. 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. Mar. 31, 2019 (Unaudited) June 30, 2018 Beginning $ 82 $ 48 Additions charged to cost and expenses 11 64 Reversal (46 ) (30 ) Currency translation effect - - Ending $ 47 $ 82 |
BANK LOANS PAYABLE
BANK LOANS PAYABLE | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
BANK LOANS PAYABLE | Bank loans payable consisted of the following: Mar. 31, 2019 (Unaudited) June 30, 2018 Note payable denominated in RM for expansion plans in Malaysia, maturing in August 2028, bearing interest at the bank’s prime rate less 1.50% (5.00% at March 31, 2019 and June 30, 2018) per annum, with monthly payments of principal plus interest through August 2028, collateralized by the acquired building with a carrying value of $2,727 and $2,809, as at March 31, 2019 and June 30, 2018, respectively. 2,779 1,615 Note payable denominated in U.S. dollars for expansion plans in Singapore and its subsidiaries, maturing in April 2020, bearing interest at the bank’s lending rate (3.96% for March 31, 2019 and June 30, 2018) with monthly payments of principal plus interest through June 2020. This note payable is secured by plant and equipment with a carrying value of $158 and $187, as at March 31, 2019 and June 30, 2018, respectively. 180 293 Currency translation effect on bank loan payable (25 ) (104 ) Total bank loans payable $ 2,934 $ 1,804 Current portion of bank loan payable 495 380 Currency translation effect on current portion of bank loan (3 ) (13 ) Current portion of bank loan payable 492 367 Long term portion of bank loan payable 2,465 1,528 Currency translation effect on long-term portion of bank loan (23 ) (91 ) Long term portion of bank loans payable $ 2,442 $ 1,437 Future minimum payments (excluding interest) as at March 31, 2019 were as follows: 2019 $ 492 2020 383 2021 375 2022 394 2023 205 Thereafter 1,085 Total obligations and commitments $ 2,934 Future minimum payments (excluding interest) as at June 30, 2018 were as follows: 2019 $ 367 2020 372 2021 242 2022 254 2023 267 Thereafter 302 Total obligations and commitments $ 1,804 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
COMMITMENTS AND CONTINGENCIES | Trio-Tech (Malaysia) Sdn. Bhd. has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RM 315, or approximately $77, based on the exchange rate as at March 31, 2019, as compared to the capital commitment as at June 30, 2018 amounting to RM 62, or approximately $16. Trio-Tech (Tianjin) Co., Ltd. in China has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RMB 265, or approximately $40, based on the exchange rate as at March 31, 2019, as compared to the capital commitment as at June 30, 2018 amounting to RMB 3,927, or approximately $593. Trio-Tech (SIP) Co., Ltd. in China has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RMB 632, or approximately $94, based on the exchange rate as at March 31, 2019 as compared to the capital commitment as at June 30, 2018 amounting to RMB 6,084, or approximately $919. 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 Company’s financial statements. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
BUSINESS SEGMENTS | In fiscal year 2019, 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 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 based on 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 $15 and $416 for the three and nine months ended March 31, 2019, as compared to $587 and $681 for the same periods in the last fiscal year. Corporate assets mainly consisted of cash and prepaid expenses. Corporate expenses mainly consisted of stock option expenses, salaries, insurance, professional expenses and directors' fees. 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 and nine months ended March 31, 2019 and March 31, 2018: Nine months Operating Depr. Ended Net Income / Total and Capital Mar. 31 Revenue (Loss) Assets Amort. Expenditures Manufacturing 2019 $ 10,086 $ 175 $ 9,205 $ 88 $ 40 2018 $ 11,862 $ 188 $ 7,035 $ 86 $ 63 Testing Services 2019 12,819 (134 ) 22,842 1,647 2,535 2018 14,454 1,281 24,790 1,432 1,987 Distribution 2019 5,587 492 780 - - 2018 5,175 337 631 - - Real Estate 2019 81 (30 ) 3,914 42 - 2018 110 (38 ) 3,732 76 - Fabrication * 2019 - - 26 - - Services 2018 - - 28 - - Corporate & 2019 - (30 ) 233 - - Unallocated 2018 - (289 ) 172 - - Total 2019 $ 28,573 $ 473 $ 37,000 $ 1,777 $ 2,575 2018 $ 31,601 $ 1,479 $ 36,388 $ 1,594 $ 2,050 The following segment information is unaudited for the period referenced below: Three months Operating Depr. Ended Net Income / Total and Capital Mar. 31 Revenue (Loss) Assets Amort. Expenditures Manufacturing 2019 $ 3,097 $ (8 ) $ 9,205 $ 30 $ 39 2018 $ 3,124 $ (105 ) $ 7,035 $ 30 $ 26 Testing Services 2019 3,989 (17 ) 22,842 588 239 2018 4,913 428 24,790 519 429 Distribution 2019 1,727 150 780 - - 2018 2,033 117 631 - - Real Estate 2019 25 (13 ) 3,914 14 - 2018 34 (18 ) 3,732 26 - Fabrication * 2019 - - 26 - - Services 2018 - - 28 - - Corporate & 2019 - 11 233 - - Unallocated 2018 - (188 ) 172 - - Total 2019 $ 8,838 $ 123 $ 37,000 $ 632 $ 278 2018 $ 10,104 $ 234 $ 36,388 $ 575 $ 455 * Fabrication services is a discontinued operation. |
OTHER INCOME, NET
OTHER INCOME, NET | 9 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | Other income / (expenses) consisted of the following: Three Months Ended Nine Months Ended Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2019 2018 2019 2018 Unaudited Unaudited Unaudited Unaudited Interest income 31 19 67 39 Other rental income 28 28 84 81 Exchange loss (11 ) (5 ) (78 ) (27 ) Bad debt recovery - - 2 - Other miscellaneous income 80 69 145 218 Total $ 128 $ 111 $ 220 $ 311 |
INCOME TAX
INCOME TAX | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
INCOME TAX | The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgment is required in determining the provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws. The statute of limitations, in general, is open for years 2014 to 2017 for tax authorities in those jurisdictions to audit or examine income tax returns. The Company is under annual review by the tax authorities of the respective jurisdiction to which the subsidiaries belong. The U.S. Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act, among other things reduced the U.S. federal corporate tax rate from 35.0% to 21.0%, eliminated corporate Alternative Minimum Tax, modified rules for expensing capital investment, and limited the deduction of interest expense for certain companies. The Tax Act is a fundamental change to the taxation of multinational companies, including a shift from a system of worldwide taxation with some deferral elements to a territorial system, current taxation of certain foreign income, a minimum tax on low tax foreign earnings, and new measures to curtail base erosion and promote U.S. production. As the Company has a June 30 fiscal year end, the lower corporate income tax rate will be phased in, resulting in a lower U.S. statutory federal rate. In accordance with Section 15 of the Internal Revenue Code, the Company applied a blended U.S. statutory federal income tax rate of 27.5% for the year ended June 30, 2018. Accounting Standard Codification (“ASC”) 740 requires filers to record the effect of tax law changes in the period enacted. During fiscal year 2018, the Company recognized income tax expenses of $900 related to the one-time deemed repatriation. No expenses have been recognized related to the deferred tax re-measurement and minimum tax on low tax foreign earnings. However, SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), that permits filers who may not have the necessary information available, prepared, or analyzed (including computations) for certain income tax effects of the Act in order to determine a reasonable estimate to be recorded as provisional amounts during a measurement period ending no later than one year from the date of enactment. Certain material provisions affecting the Company is provided below. One-Time Mandatory Repatriation One of the effects of the Tax Act is to transition from a world-wide to a territorial tax system. The Tax Act requires a mandatory one-time repatriation of certain post-1986 earnings and profits that were deferred from U.S. taxation by the Company’s foreign subsidiaries. The basis of the tax is on cash held and specified assets which are taxed at 15.5% and 8%, respectively. The Company has elected to pay the repatriation tax over an 8-year period. The Company recorded an estimated $900 charge in fiscal 2018 related to the one-time transition tax on the deemed repatriation of deferred foreign income, which was included in the provision for income taxes on our consolidated income statements and income taxes on our consolidated balance sheets, based on existing tax laws and the best information available as of the date of estimate. As of second quarter of fiscal year 2019, the initial estimate for the one-time transition tax was adjusted to reflect final computation using all available data and tax legislation published post estimate. In the second quarter of fiscal 2019 upon finalization of our accounting analysis, we reversed $145 from the provision of income tax thus reducing the tax liability related to the one-time transition tax to $755. That adjustment materially impacts our provision for income taxes and effective tax rate. The significant change is due to the update of information from additional analysis performed on foreign tax pools and earnings and profits computations where the information is only available post-estimate. As at March 31, 2019, the U.S. Treasury Department and the Internal Revenue Services are still in the process of issuing various regulations related to the Tax Act. The transition tax may change in the future due to changes in tax law as enacted by the U.S. Government, new guidance from federal and state regulators and related interpretations of the Tax Act. Minimum Tax on Low Tax Foreign Earnings The Tax Act implemented the inclusion in gross income for the Global Intangible Low-Tax Income (GILTI) for any taxable year beginning on or after January 1, 2018. This provision significantly expands current taxation of foreign subsidiary corporate earnings. The Company must generally include in current income all earnings of the foreign subsidiaries in excess of the assumed deemed return on tangible assets of the foreign subsidiaries. The Company has elected to provide for the minimum tax as future income tax expense as a period expense. The Company recorded $19 of income tax expense related to GILTI for the nine months ended March 31, 2019. Deferred Tax Re-Measurement The re-measurement is based on the expected reversals of the deferred taxes at the estimated U.S. federal tax rates of 28.0% for the current fiscal year and 21.0% for future fiscal years. As the Company established a full valuation allowance on the U.S. deferred tax assets, the Company has not recognized any income tax effects for the deferred tax re-measurement under the Tax Act. The Company’s accounting for any possible income tax effects for the deferred tax re-measurement will be completed during the measurement period, which should not extend beyond one year from the enactment date. 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 as of March 31, 2019. |
REVENUE
REVENUE | 9 Months Ended |
Mar. 31, 2019 | |
Revenue | |
REVENUE | The Company generates revenue primarily from 3 different segments: Manufacturing, Testing and Distribution. The Company accounts for a contract with a customer when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company’s revenues are measured based on consideration stipulated in the arrangement with each customer, net of any sales incentives and amounts collected on behalf of third parties, such as sales taxes. The revenues are recognized as separate performance obligations that are satisfied by transferring control of the product or service to the customer. Significant Judgments The Company’s arrangements with its customers include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. A product or service is considered distinct if it is separately identifiable from other deliverables in the arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company allocates the transaction price to each performance obligation on a relative standalone selling price basis (SSP). Determining the SSP for each distinct performance obligation and allocation of consideration from an arrangement to the individual performance obligations and the appropriate timing of revenue recognition are significant judgments with respect to these arrangements. The Company typically establishes the SSP based on observable prices of products or services sold separately in comparable circumstances to similar clients. The Company may estimate SSP by considering internal costs, profit objectives and pricing practices in certain circumstances. Warranties, discounts and allowances are estimated using historical and recent data trends. The Company includes estimates in the transaction price only to the extent that a significant reversal of revenue is not probable in subsequent periods. The Company’s products and services are generally not sold with a right of return, nor has the Company experienced significant returns from or refunds to its customers. Manufacturing The Company primarily derives revenue from the sale of both front-end and back-end semiconductor test equipment and related peripherals, maintenance and support of all these products, installation and training services and the sale of spare parts. The Company’s revenues are measured based on consideration stipulated in the arrangement with each customer, net of any sales incentives and amounts collected on behalf of third parties, such as sales taxes. The Company recognizes revenue at a point in time when the Company has satisfied its performance obligation by transferring control of the product to the customer. The Company uses judgment to evaluate whether the control has transferred by considering several indicators, including: ● whether the Company has a present right to payment; ● the customer has legal title; ● the customer has physical possession; ● the customer has significant risk and rewards of ownership; and ● the customer has accepted the product, or whether customer acceptance is considered a formality based on history of acceptance of similar products (for example, when the customer has previously accepted the same equipment, with the same specifications, and when we can objectively demonstrate that the tool meets all of the required acceptance criteria, and when the installation of the system is deemed perfunctory). Not all of the indicators need to be met for the Company to conclude that control has transferred to the customer. In circumstances in which revenue is recognized prior to the product acceptance, the portion of revenue associated with its performance obligations to install product is deferred and recognized upon acceptance. The majority of sales under the Manufacturing segment include a standard 12-month warranty. The Company has concluded that the warranty provided for standard products are assurance type warranties and are not separate performance obligations. Warranty provided for customized products are service warranties and are separate performance obligations. Transaction prices are allocated to this performance obligation using cost plus method. The portion of revenue associated with warranty service is deferred and recognized as revenue over the warranty period, as the customer simultaneously receives and consumes the benefits of warranty services provided by the Company. Testing The Company rendered testing services to manufacturers and purchasers of semiconductors and other entities who either lack testing capabilities or whose in-house screening facilities are insufficient. The Company primarily derives testing revenue from burn-in services, manpower supply and other associated services. Standalone Selling price is directly observable from the sales orders. Revenue is allocated to performance obligations satisfied at a point in time depending upon terms of the sales order. Generally, there is no other performance obligation other than what has been stated inside the sales order for each of these sales. Terms of contract that may indicate potential variable consideration included warranty, late delivery penalty and reimbursement to solve non-conformance issues for rejected products. Based on historical and recent data trends, it is concluded that these terms of the contract do not represent potential variable consideration. The transaction price is not contingent on the occurrence of any future event. Distribution The Company distributes complementary products particularly equipment, industrial products and components by manufacturers mainly from the U.S., Europe, Taiwan and Japan. The Company recognizes revenue from product sales at a point in time when the Company has satisfied its performance obligation by transferring control of the product to the customer. The Company uses judgment to evaluate whether the control has transferred by considering several indicators discussed above. The Company recognizes the revenue at a point in time, generally upon shipment or delivery of the products to the customer or distributors, depending upon terms of the sales order. Method and Impact of Adoption Effective as of July 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) An assessment was made on the impact of all existing arrangements as at the date of adoption, under ASC 606, to identify the cumulative effect of applying ASC 606 on the beginning retained earnings. The Company quantified the impact of the adoption on its financial position, results of operations and cash flow. The impact amounted to 0.06% of fiscal 2018 revenue or $28, which is immaterial to the Company. Hence, based on materiality principle, the Company concluded that the cumulative adjustment is not required to be made to the Company’s Beginning Retained Earnings. The impact is primarily driven by the changes related to the accounting of standard warranty. Prior to adoption of ASC 606, the Company accounted for the estimated warranty cost as a charge to costs of sales when revenue was recognized. Upon adoption of ASC 606, the standard warranty for customized products is recognized as a separate performance obligation. The Company has completed its adoption and implemented policies, processes and controls to support the standard’s measurement and disclosure requirements. The Company recognizes net product revenue when it satisfies the obligations as evidenced by the transfer of control of its products and services to customers. The guidance did not have material impact on the Company’s consolidated financial results. Contract Balances The timing of revenue recognition, billings and cash collections may result in accounts receivable, contract assets, and contract liabilities (deferred revenue) on the Company’s condensed consolidated balance sheet. A receivable is recorded in the period the Company delivers products or provides services when the Company has an unconditional right to payment. Contract assets primarily relate to the value of products and services transferred to the customer for which the right to payment is not just dependent on the passage of time. Contract assets are transferred to receivable when rights to payment become unconditional. A contract liability is recognized when the Company receives payment or has an unconditional right to payment in advance of the satisfaction of performance. The contract liabilities represent (1) Deferred product revenue related to the value of products that have been shipped and billed to customers and for which the control has not been transferred to the customers, and (2) Deferred service revenue, which is recorded when the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring services to the customer under the terms of a sales contract. Deferred service revenue typically results from warranty services, and maintenance and other service contracts. As of July 1, 2018, deferred income amounting to $260 was reclassified from other receivables to contract assets and customer deposits amounting to $31 was reclassified from accrued expenses to contract liabilities in order to establish the new opening balance for contract assets and liabilities. The Company’s payment terms and conditions vary by contract type, although terms generally include a requirement of payment of 70% to 90% of total contract consideration within 30 to 60 days of shipment, with the remainder payable within 30 days of acceptance. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component. C The following table is the reconciliation of contract balances. Mar 31, 2019 (Unaudited) $ July 1, 2018 (Unaudited) $ Trade Accounts Receivable 7,120 7,747 Trade Accounts Payable 3,021 3,704 Contract Assets 357 260 Contract Liabilities 1,077 31 Remaining Performance Obligation The remaining performance obligation (RPO) disclosure provides the aggregate amount of the transaction price yet to be recognized as of the end of the reporting period and an explanation as to when the company expects to recognize these amounts in revenue. It is intended to be a statement of overall work under contract that has not yet been performed and does not include contracts in which the customer is not committed. The customer is not considered committed when they are able to terminate for convenience without payment of a substantive penalty. The disclosure includes estimates of variable consideration, except when the variable consideration is a sale based or usage-based royalty promised in exchange for a license of intellectual property. Additionally, as a practical expedient, the Company does not include contracts that have an original duration of one year or less. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, and adjustment for revenue that has not materialized and adjustments for currency. As at March 31, 2019, the aggregate amount of the transaction price allocated to RPO related to customer contracts that are unsatisfied or partially unsatisfied was $1,061. Given the profile of contract terms, approximately 23.5% percent of this amount is expected to be recognized as revenue over the next two years, approximately 76.5% percent between three and five years and the balance thereafter. Practical Expedients The Company applies the following practical expedients: ● The Company accounts for shipping and handling costs as activities to fulfil the promise to transfer the goods, instead of a promised service to its customer. ● The Company has not elected to adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will generally be one year or less. ● The Company has elected to adopt the practical expedient for contract costs, specifically in relation to incremental costs of obtaining a contract. Costs to obtain a contract are not material, and the Company generally expenses such costs as incurred because the amortization period is one year or less. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
EARNINGS PER SHARE | The Company adopted ASC Topic 260, Earnings Per Share. The following table is a reconciliation of the weighted average shares used in the computation of basic and diluted EPS for the periods presented herein: Three Months Ended Nine Months Ended Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ 682 $ (736 ) $ 1,097 $ 520 Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax 1 (3 ) (1 ) (11 ) Net Income Attributable to Trio-Tech International Common Shareholders $ 683 $ 739 $ 1,096 $ 509 Weighted average number of common shares outstanding - basic 3,673 3,553 3,673 3,553 Dilutive effect of stock options 12 219 73 225 Number of shares used to compute earnings per share - diluted 3,685 3,772 3,746 3,778 Basic earnings per share from continuing operations attributable to Trio-Tech International $ 0.19 (0.21 ) 0.30 0.15 Basic earnings per share from discontinued operations attributable to Trio-Tech International — — — — Basic Earnings Per Share from Net Income Attributable to Trio-Tech International $ 0.19 $ (0.21 ) $ 0.30 $ 0.15 Diluted earnings per share from continuing operations attributable to Trio-Tech International $ 0.19 (0.20 ) 0.29 0.14 Diluted earnings per share from discontinued operations attributable to Trio-Tech International — — — — Diluted Earnings Per Share from Net Income Attributable to Trio-Tech International $ 0.19 $ (0.20 ) $ 0.29 $ 0.14 |
STOCK OPTIONS
STOCK OPTIONS | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
STOCK OPTIONS | 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 during the term of such plan to increase the number of shares covered thereby. As of the last amendment thereof, the 2007 Employee Plan covered an aggregate of 600,000 shares of the Company’s Common Stock and the 2007 Directors Plan covered an aggregate of 500,000 shares of the Company’s Common Stock. Each of those plans terminated by its respective terms on September 24, 2017. These two plans were administered by the Board, which also established the terms of the awards. On September 14, 2017, the Company’s Board of Directors unanimously adopted the 2017 Employee Stock Option Plan (the “2017 Employee Plan”) and the 2017 Directors Equity Incentive Plan (the “2017 Directors Plan”) each of which was approved by the shareholders on December 4, 2017. Each of these plans is administered by the Board of Directors of the Company. 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: Nine Months Ended March 31, 2019 2018 Expected volatility 47.29% to 97.48 % 47.29% to 104.94 % Risk-free interest rate 0.30% to 1.05 % 0.30% to 1.05 % Expected life (years) 2.50 – 3.25 2.50 – 3.25 The expected volatilities are based on the historical volatility of the Company’s stock. Due to higher volatility, the observation is made on a daily basis for the three months ended March 31, 2019. The observation period covered is consistent with the expected life of options. The expected life of the options granted to employees has been determined utilizing the “simplified” method as prescribed by ASC Topic 718 Stock Based Compensation 2017 Employee Stock Option Plan The Company’s 2017 Employee Plan permits the grant of stock options to its employees covering up to an aggregate of 300,000 shares of Common Stock. Under the 2017 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 2017 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 instalments 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 2017 Employee Plan). The Company granted options to purchase 16,000 shares of its Common Stock to employee pursuant to the 2017 Employee Plan during the nine months ended March 31, 2019. There were no stock options exercised during the nine months ended March 31, 2019. The Company recognized stock-based compensation expenses of $3 and $11 in the three and nine months ended March 31, 2019 under the 2017 Employee Plan. The balance of unamortized stock-based compensation of $14 based on fair value on the grant date related to options granted under the 2017 Employee Plan is to be recognized over a period of three years. As of March 31, 2019, there were vested employee stock options granted under the Employee Plan 2017 covering a total of 34,000 shares of Common Stock. The weighted-average exercise price was $5.72, and the weighted average contractual term was 4.06 years. On March 23, 2018, the Company granted options to purchase 60,000 shares of its Common Stock to employee directors pursuant to the 2017 Employee Plan during the nine-month ended March 31, 2018. The Company recognized stock-based compensation expenses of $4 in the nine months ended March 31, 2018 under the 2017 Employee Plan. The balance of unamortized stock-based compensation of $11 based on fair value on the grant date related to options granted under the 2017 Employee Plan is to be recognized over a period of three years. As of March 31, 2018, there were vested employee stock options covering a total of 15,000 shares of Common Stock. The weighted-average exercise price was $5.98, and the weighted average contractual term was 4.98 years. The total fair value of vested employee stock options was $90 and remains outstanding as of March 31, 2018. A summary of option activities under the 2017 Employee Plan during the nine months ended March 31, 2019 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 60,000 $ 5.98 4.73 $ - Granted 16,000 3.75 4.68 - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2019 76,000 5.51 4.13 - Exercisable at March 31, 2019 34,000 5.72 4.06 - A summary of the status of the Company’s non-vested employee stock options during the nine months ended March 31, 2019 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2018 45,000 $ 5.98 Granted 16,000 3.75 Vested (19,000 ) (5.72 ) Forfeited - - Non-vested at March 31, 2019 42,000 $ 5.34 A summary of option activities under the 2017 Employee Plan during the nine-month period ended March 31, 2018 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 - $ - - $ - Granted 60,000 5.98 4.98 - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2018 60,000 5.98 4.98 - Exercisable at March 31, 2018 60,000 5.98 4.98 - A summary of the status of the Company’s non-vested employee stock options during the nine months ended March 31, 2018 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2017 - $ - Granted 60,000 5.98 Vested (15,000 ) 5.98 Forfeited - - 45,000 $ 3.83 2007 Employee Stock Option Plan The Company’s 2007 Employee Plan terminated by its terms on September 24, 2017 and no further options may be granted thereunder. However, the options outstanding thereunder continue to remain outstanding and in effect in accordance with their terms. The Employee Plan permitted 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 were required to be granted with an exercise price of not less than fair value as of the grant date and the options granted were required to 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 were permitted to 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 instalments 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 for nine months ended March 31, 2019. There were 50,000 options exercised during the nine months ended March 31, 2019. The Company recognized stock-based compensation expenses of $1 in the nine months ended March 31, 2019 under the 2007 Employee Plan. The Company did not grant any options pursuant to the 2007 Employee Plan during the nine months ended March 31, 2018. There were no options exercised during the nine months ended March 31, 2018. The Company recognized stock-based compensation expenses of $3 in the nine months ended March 31, 2018 under the 2007 Employee Plan. The balance unamortized stock-based compensation of $2 based on fair value on the grant date related to options granted under the 2007 Employee Plan is to be recognized over a period of three years. As of March 31, 2019, there were vested employee stock options covering a total of 68,125 shares of Common Stock. The weighted-average exercise price was $3.62, and the weighted average contractual term was 2.40 years. As of March 31, 2018, there were vested employee stock options covering a total of 98,750 shares of Common Stock. The weighted-average exercise price was $3.43, and the weighted average contractual term was 1.98 years. A summary of option activities under the 2007 Employee Plan during the nine months ended March 31, 2019 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 127,500 $ 3.52 2.10 $ 121 Granted - - - - Exercised (50,000 ) 3.25 - - Forfeited or expired - - - - Outstanding at March 31, 2019 77,500 $ 3.69 2.47 $ - Exercisable at March 31, 2019 68,125 $ 3.62 2.40 $ - A summary of the status of the Company’s non-vested employee stock options during the nine months ended March 31, 2019 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2018 28,750 $ 3.83 Granted - - Vested (19,375 ) 4.14 Forfeited - - Non-vested at March 31, 2019 9,375 $ 4.14 A summary of option activities under the 2007 Employee Plan during the nine-month period ended March 31, 2018 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 127,500 $ 3.52 3.10 $ 187 Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2018 127,500 3.52 2.35 285 Exercisable at March 31, 2018 98,750 3.43 1.98 230 A summary of the status of the Company’s non-vested employee stock options during the nine months ended March 31, 2018 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2017 48,125 $ 3.77 Granted - - Vested (19,375 ) (3.43 ) Forfeited - - Non-vested at March 31, 2018 28,750 $ 3.83 2017 Directors Equity Incentive Plan The 2017 Directors Plan permits the grant of options covering up to an aggregate of 300,000 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. The Company did not grant any options pursuant to the 2017 Director Plan during the nine months ended March 31, 2019. There were no options exercised during the nine months ended March 31, 2019. The Company did not recognize any stock-based compensation expenses during the nine months ended March 31, 2019. On March 23, 2018, the Company granted options to purchase 80,000 shares of its Common Stock to directors pursuant to the 2017 Directors Plan with an exercise price equal to the fair market value of Common Stock (as defined under the 2017 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 80,000 shares of the Company’s Common Stock was approximately $478 based on the fair value of $5.98 per share determined by the Black Scholes option pricing model. As all of the stock options granted under the 2017 Directors Plan vest immediately at the date of grant, there were no unvested stock options granted under the 2017 Directors Plan as of March 31, 2018. The Company recognized stock-based compensation expenses of $33 in the nine months ended March 31, 2018 under the 2017 Directors Plan. A summary of option activities under the 2017 Directors Plan during the nine months ended March 31, 2019 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 80,000 $ 5.98 4.73 $ - Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2019 80,000 5.98 3.98 - Exercisable at March 31, 2019 80,000 5.98 3.98 - A summary of option activities under the 2017 Directors Plan during the nine months ended March 31, 2018 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 - $ - - $ - Granted 80,000 5.98 4.98 - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2018 80,000 5.98 4.98 - Exercisable at March 31, 2018 80,000 5.98 4.98 - 2007 Directors Equity Incentive Plan The 2007 Directors Plan terminated by its terms on September 24, 2017 and no further options may be granted thereunder. However, the options outstanding thereunder continue to remain outstanding and in effect in accordance with their terms. The Directors Plan permitted 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. The Company did not grant any options pursuant to the 2007 Director Plan during the nine months ended March 31, 2019. There were 70,000 stock options exercised during the nine months period ended March 31, 2019. The Company did not recognize any stock-based compensation expenses during the nine months ended March 31, 2019. The Company did not grant any options pursuant to the 2007 Director Plan during the nine months ended March 31, 2018. There were 20,000 stock options exercised during the nine-month period ended March 31, 2018. The Company did not recognize any stock-based compensation expenses during the nine months ended March 31, 2018. A summary of option activities under the 2007 Directors Plan during the nine months ended March 31, 2019 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 390,000 $ 3.41 2.05 $ 412 Granted - - - - Exercised (70,000) 3.39 - - Forfeited or expired (20,000 ) (3.62 ) - - Outstanding at March 31, 2019 300,000 $ 3.40 1.83 $ - Exercisable at March 31, 2019 300,000 $ 3.40 1.83 $ - A summary of option activities under the 2007 Directors Plan during the nine months ended March 31, 2018 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 415,000 $ 3.36 2.93 $ 673 Granted - - - - Exercised (20,000 ) 2.59 - - Forfeited or expired (5,000 ) 2.07 - - Outstanding at March 31, 2018 390,000 3.41 2.30 911 Exercisable at March 31, 2018 390,000 3.41 2.30 911 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | In accordance with ASC Topics 825 and 820, the following presents assets and liabilities measured and carried at fair value and classified by level of fair value measurement hierarchy: There were no transfers between Levels 1 and 2 during the three and nine months ended March 31, 2019 and 2018. Term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments. 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. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
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 (SIP) Co. Ltd. * 100% Suzhou, 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 |
TERM DEPOSITS (Tables)
TERM DEPOSITS (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Term Deposits Tables | |
TERM DEPOSITS | Mar. 31, 2019 (Unaudited) June 30, 2018 Short-term deposits $ 3,615 $ 606 Currency translation effect on short-term deposits 31 47 Total short-term deposits 3,646 653 Restricted term deposits 1,690 1,664 Currency translation effect on restricted term deposits 15 31 Total restricted term deposits 1,705 1,695 Total term deposits $ 5,351 $ 2,348 |
TRADE ACCOUNTS RECEIVABLE AND_2
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Accounts Receivable And Allowance For Doubtful Accounts Tables | |
Changes in the allowance for doubtful accounts | Mar. 31, 2019 (Unaudited) June 30, 2018 Beginning $ 259 $ 247 Additions charged to expenses 85 8 Recovered (84 ) (1 ) Currency translation effect (4 ) 5 Ending $ 256 $ 259 |
LOAN RECEIVABLE FROM PROPERTY D
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Loan Receivable From Property Development Projects Tables | |
Companys loans receivable from property development projects | 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 doubtful receivables (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 property (5,000 ) (814 ) Net loan receivables from property development projects - - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Inventories Tables | |
Inventories | Mar. 31, 2019 (Unaudited) June 30, 2018 Raw materials $ 1,206 $ 1,153 Work in progress 1,839 1,947 Finished goods 520 505 Currency translation effect 13 20 Less: provision for obsolete inventory (660 ) (695 ) $ 2,918 $ 2,930 |
Changes in provision for obsolete inventory | Mar. 31, 2019 (Unaudited) June 30, 2018 Beginning $ 695 $ 686 Additions charged to expenses 5 9 Usage – disposition (42 ) (5 ) Currency translation effect 2 5 Ending $ 660 $ 695 |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Investment Properties Tables | |
Companys investment in the property based on the exchange rate | Investment Date / Reclassification Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I – Mao Ye Property Jan 04, 2008 5,554 894 Currency translation - (87 ) Reclassification as “Assets held for sale” July 01, 2018 (5,554 ) (807 ) Reclassification from “Assets held for sale” Mar 31, 2019 2,024 301 2,024 301 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 - (93 ) Gross investment in rental property 9,649 1,436 Accumulated depreciation on rental property Mar 31, 2019 (5,879 ) (875 ) Reclassified as “Assets held for sale” July 01, 2018 2,822 410 Reclassification from “Assets held for sale” Mar 31, 2019 (1,029 ) (143 ) (4,086 ) (608 ) Net investment in property – China 5,563 828 Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I - Mao Ye Property 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 - (131 ) Gross investment in rental property 13,179 1,991 Accumulated depreciation on rental property June 30, 2018 (5,596 ) (845 ) Net investment in property – China 7,583 1,146 Investment Date Investment Amount Investment Amount (RM) (U.S. Dollars) Purchase of Penang Property Dec 31, 2012 681 181 Currency translation - (16 ) Reclassification as “Assets held for sale” June 30, 2015 (681 ) (165 ) - - Accumulated depreciation on rental property June 30, 2015 (310 ) (83 ) Currency translation - 7 Reclassified as “Assets held for sale” June 30, 2015 (310 ) (76 ) Net investment in rental property - Malaysia - - |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other assets | Mar. 31, 2019 (Unaudited) June 30, 2018 Down payment for purchase of investment properties $ 1,645 $ 1,645 Down payment for purchase of property, plant and equipment 71 561 Deposits for rental and utilities 140 140 Currency translation effect (128 ) (97 ) Total $ 1,728 $ 2,249 |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Lines Of Credit Tables | |
Lines of credit | As of March 31, 2019, 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 Lines of Credit - $ 4,206 $ 4,072 Trio-Tech (Tianjin) Co., Ltd. - $ 1,490 $ 1,250 - $ 369 $ 121 As of June 30, 2018, 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 Lines of Credit - $ 4,183 $ 3,325 Trio-Tech (Tianjin) Co., Ltd. - $ 1,511 $ 437 - $ 367 $ 256 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Accrued Expenses Tables | |
Accrued expenses | Mar. 31, 2019 (Unaudited) June 30, 2018 Payroll and related costs $ 1,129 $ 1,545 Commissions 135 89 Customer deposits 1,117 17 Legal and audit 300 265 Sales tax 16 17 Utilities 117 130 Warranty 47 82 Accrued purchase of materials and property, plant and equipment 355 454 Provision for re-instatement 302 289 Other accrued expenses 363 203 Currency translation effect 1 81 Total $ 3,882 $ 3,172 |
WARRANTY ACCRUAL (Tables)
WARRANTY ACCRUAL (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Warranty Accrual Tables | |
Warranty liability | Mar. 31, 2019 (Unaudited) June 30, 2018 Beginning $ 82 $ 48 Additions charged to cost and expenses 11 64 Reversal (46 ) (30 ) Currency translation effect - - Ending $ 47 $ 82 |
BANK LOANS PAYABLE (Tables)
BANK LOANS PAYABLE (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Bank Loans Payable Tables | |
Bank loans payable | Mar. 31, 2019 (Unaudited) June 30, 2018 Note payable denominated in RM for expansion plans in Malaysia, maturing in August 2028, bearing interest at the bank’s prime rate less 1.50% (5.00% at March 31, 2019 and June 30, 2018) per annum, with monthly payments of principal plus interest through August 2028, collateralized by the acquired building with a carrying value of $2,727 and $2,809, as at March 31, 2019 and June 30, 2018, respectively. 2,779 1,615 Note payable denominated in U.S. dollars for expansion plans in Singapore and its subsidiaries, maturing in April 2020, bearing interest at the bank’s lending rate (3.96% for March 31, 2019 and June 30, 2018) with monthly payments of principal plus interest through June 2020. This note payable is secured by plant and equipment with a carrying value of $158 and $187, as at March 31, 2019 and June 30, 2018, respectively. 180 293 Currency translation effect on bank loan payable (25 ) (104 ) Total bank loans payable $ 2,934 $ 1,804 Current portion of bank loan payable 495 380 Currency translation effect on current portion of bank loan (3 ) (13 ) Current portion of bank loan payable 492 367 Long term portion of bank loan payable 2,465 1,528 Currency translation effect on long-term portion of bank loan (23 ) (91 ) Long term portion of bank loans payable $ 2,442 $ 1,437 |
Future minimum payments | Future minimum payments (excluding interest) as at March 31, 2019 were as follows: 2019 $ 492 2020 383 2021 375 2022 394 2023 205 Thereafter 1,085 Total obligations and commitments $ 2,934 Future minimum payments (excluding interest) as at June 30, 2018 were as follows: 2019 $ 367 2020 372 2021 242 2022 254 2023 267 Thereafter 302 Total obligations and commitments $ 1,804 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Business Segments Tables | |
BUSINESS SEGMENTS | Business Segment Information: Nine months Operating Depr. Ended Net Income / Total and Capital Mar. 31 Revenue (Loss) Assets Amort. Expenditures Manufacturing 2019 $ 10,086 $ 175 $ 9,205 $ 88 $ 40 2018 $ 11,862 $ 188 $ 7,035 $ 86 $ 63 Testing Services 2019 12,819 (134 ) 22,842 1,647 2,535 2018 14,454 1,281 24,790 1,432 1,987 Distribution 2019 5,587 492 780 - - 2018 5,175 337 631 - - Real Estate 2019 81 (30 ) 3,914 42 - 2018 110 (38 ) 3,732 76 - Fabrication * 2019 - - 26 - - Services 2018 - - 28 - - Corporate & 2019 - (30 ) 233 - - Unallocated 2018 - (289 ) 172 - - Total 2019 $ 28,573 $ 473 $ 37,000 $ 1,777 $ 2,575 2018 $ 31,601 $ 1,479 $ 36,388 $ 1,594 $ 2,050 The following segment information is unaudited for the period referenced below: Three months Operating Depr. Ended Net Income / Total and Capital Mar. 31 Revenue (Loss) Assets Amort. Expenditures Manufacturing 2019 $ 3,097 $ (8 ) $ 9,205 $ 30 $ 39 2018 $ 3,124 $ (105 ) $ 7,035 $ 30 $ 26 Testing Services 2019 3,989 (17 ) 22,842 588 239 2018 4,913 428 24,790 519 429 Distribution 2019 1,727 150 780 - - 2018 2,033 117 631 - - Real Estate 2019 25 (13 ) 3,914 14 - 2018 34 (18 ) 3,732 26 - Fabrication * 2019 - - 26 - - Services 2018 - - 28 - - Corporate & 2019 - 11 233 - - Unallocated 2018 - (188 ) 172 - - Total 2019 $ 8,838 $ 123 $ 37,000 $ 632 $ 278 2018 $ 10,104 $ 234 $ 36,388 $ 575 $ 455 * Fabrication services is a discontinued operation. |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other income / (expenses) | Three Months Ended Nine Months Ended Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2019 2018 2019 2018 Unaudited Unaudited Unaudited Unaudited Interest income 31 19 67 39 Other rental income 28 28 84 81 Exchange loss (11 ) (5 ) (78 ) (27 ) Bad debt recovery - - 2 - Other miscellaneous income 80 69 145 218 Total $ 128 $ 111 $ 220 $ 311 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Revenue | |
Contract assets and liabilities | Mar 31, 2019 (Unaudited) $ July 1, 2018 (Unaudited) $ Trade Accounts Receivable 7,120 7,747 Trade Accounts Payable 3,021 3,704 Contract Assets 357 260 Contract Liabilities 1,077 31 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share Tables | |
Reconciliation of the weighted average shares | Three Months Ended Nine Months Ended Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ 682 $ (736 ) $ 1,097 $ 520 Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax 1 (3 ) (1 ) (11 ) Net Income Attributable to Trio-Tech International Common Shareholders $ 683 $ 739 $ 1,096 $ 509 Weighted average number of common shares outstanding - basic 3,673 3,553 3,673 3,553 Dilutive effect of stock options 12 219 73 225 Number of shares used to compute earnings per share - diluted 3,685 3,772 3,746 3,778 Basic earnings per share from continuing operations attributable to Trio-Tech International $ 0.19 (0.21 ) 0.30 0.15 Basic earnings per share from discontinued operations attributable to Trio-Tech International — — — — Basic Earnings Per Share from Net Income Attributable to Trio-Tech International $ 0.19 $ (0.21 ) $ 0.30 $ 0.15 Diluted earnings per share from continuing operations attributable to Trio-Tech International $ 0.19 (0.20 ) 0.29 0.14 Diluted earnings per share from discontinued operations attributable to Trio-Tech International — — — — Diluted Earnings Per Share from Net Income Attributable to Trio-Tech International $ 0.19 $ (0.20 ) $ 0.29 $ 0.14 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Fair value weighted average assumptions | Nine Months Ended March 31, 2019 2018 Expected volatility 47.29% to 97.48 % 47.29% to 104.94 % Risk-free interest rate 0.30% to 1.05 % 0.30% to 1.05 % Expected life (years) 2.50 – 3.25 2.50 – 3.25 |
2017 Employee Plan [Member] | |
Option activities | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 60,000 $ 5.98 4.73 $ - Granted 16,000 3.75 4.68 - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2019 76,000 5.51 4.13 - Exercisable at March 31, 2019 34,000 5.72 4.06 - Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 - $ - - $ - Granted 60,000 5.98 4.98 - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2018 60,000 5.98 4.98 - Exercisable at March 31, 2018 60,000 5.98 4.98 - |
Company's non-vested employee stock options | Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2018 45,000 $ 5.98 Granted 16,000 3.75 Vested (19,000 ) (5.72 ) Forfeited - - Non-vested at March 31, 2019 42,000 $ 5.34 Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2017 - $ - Granted 60,000 5.98 Vested (15,000 ) 5.98 Forfeited - - 45,000 $ 3.83 |
2007 Employee Plan [Member] | |
Option activities | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 127,500 $ 3.52 2.10 $ 121 Granted - - - - Exercised (50,000 ) 3.25 - - Forfeited or expired - - - - Outstanding at March 31, 2019 77,500 $ 3.69 2.47 $ - Exercisable at March 31, 2019 68,125 $ 3.62 2.40 $ - Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 127,500 $ 3.52 3.10 $ 187 Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2018 127,500 3.52 2.35 285 Exercisable at March 31, 2018 98,750 3.43 1.98 230 |
Company's non-vested employee stock options | Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2018 28,750 $ 3.83 Granted - - Vested (19,375 ) 4.14 Forfeited - - Non-vested at March 31, 2019 9,375 $ 4.14 Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2017 48,125 $ 3.77 Granted - - Vested (19,375 ) (3.43 ) Forfeited - - Non-vested at March 31, 2018 28,750 $ 3.83 |
Directors2017EquityIncentivePlanMember | |
Option activities | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 80,000 $ 5.98 4.73 $ - Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2019 80,000 5.98 3.98 - Exercisable at March 31, 2019 80,000 5.98 3.98 - Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 - $ - - $ - Granted 80,000 5.98 4.98 - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2018 80,000 5.98 4.98 - Exercisable at March 31, 2018 80,000 5.98 4.98 - |
2007 Directors Equity Incentive Plan [Member] | |
Option activities | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 390,000 $ 3.41 2.05 $ 412 Granted - - - - Exercised (70,000 3.39 - - Forfeited or expired (20,000 ) (3.62 ) - - Outstanding at March 31, 2019 300,000 $ 3.40 1.83 $ - Exercisable at March 31, 2019 300,000 $ 3.40 1.83 $ - Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 415,000 $ 3.36 2.93 $ 673 Granted - - - - Exercised (20,000 ) 2.59 - - Forfeited or expired (5,000 ) 2.07 - - Outstanding at March 31, 2018 390,000 3.41 2.30 911 Exercisable at March 31, 2018 390,000 3.41 2.30 911 |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Details) | Mar. 31, 2019 |
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 [Member] | |
Ownership | 76.00% |
Trio-Tech (Suzhou) Co. Ltd. | |
Ownership | 100.00% |
Trio-Tech (Chongqing) Co. Ltd. SHI International Pte. Ltd. | |
Ownership | 100.00% |
SHI International [Member] | |
Ownership | 55.00% |
PT SHI Indonesia (100% owned by SHI International Pte. Ltd) | |
Ownership | 55.00% |
Trio-Tech (Tianjin) Co. Ltd. | |
Ownership | 100.00% |
TERM DEPOSITS (Details)
TERM DEPOSITS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Term Deposits Details | ||
Short-term deposits | $ 3,615 | $ 606 |
Currency translation effect on short-term deposits | 31 | 47 |
Total short-term deposits | 3,646 | 653 |
Restricted term deposits | 1,690 | 1,664 |
Currency translation effect on restricted term deposits | 15 | 31 |
Total restricted term deposits | 1,705 | 1,695 |
Total Term deposits | $ 5,351 | $ 2,348 |
TRADE ACCOUNTS RECEIVABLE AND_3
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Notes to Financial Statements | ||
Beginning | $ 259 | $ 247 |
Additions charged to expenses | 85 | 8 |
Recovered | (84) | (1) |
Currency translation effect | (4) | 5 |
Ending | $ 256 | $ 259 |
LOANS RECEIVABLE FROM PROPERT_2
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Jiang Huai [Member] | |
Short-term loan receivables | |
Short-term | $ 325 |
Less: allowance for doubtful receivables | (325) |
Short-term loan receivables, net | 0 |
Jun Zhou Zhi Ye [Member] | |
Long-term loan receivables | |
Long-term | 814 |
Less: transfer - down-payment for purchase of property | (814) |
Long-term loan receivables, net | 0 |
Yuan RMB | Jiang Huai [Member] | |
Short-term loan receivables | |
Short-term | 2,000 |
Less: allowance for doubtful receivables | (2,000) |
Short-term loan receivables, net | 0 |
Yuan RMB | Jun Zhou Zhi Ye [Member] | |
Long-term loan receivables | |
Long-term | 5,000 |
Less: transfer - down-payment for purchase of property | (5,000) |
Long-term loan receivables, net | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Notes to Financial Statements | |||
Raw materials | $ 1,206 | $ 1,153 | |
Work in progress | 1,839 | 1,947 | |
Finished goods | 520 | 505 | |
Currency translation effect | 13 | 20 | |
Less: provision for obsolete inventory | (660) | (695) | $ (686) |
Inventory net | $ 2,918 | $ 2,930 |
INVENTORIES (Details 1)
INVENTORIES (Details 1) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Notes to Financial Statements | ||
Beginning | $ 695 | $ 686 |
Additions charged to expenses | 5 | 9 |
Usage - disposition | (42) | (5) |
Currency translation effect | 2 | 5 |
Ending | $ 660 | $ 695 |
ASSETS HELD FOR SALE (Details N
ASSETS HELD FOR SALE (Details Narrative) - Property, Plant and Equipment [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Assets held for sale, net bok value | $ 89 | $ 89 |
Ringgit RM | ||
Assets held for sale, net bok value | $ 371 | $ 371 |
INVESTMENT PROPERTIES (Details)
INVESTMENT PROPERTIES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Reclassified as "Assets held for sale" | $ (90) | $ (91) |
MaoYe [Member] | ||
Investment Amount | 894 | 894 |
Currency translation | (87) | |
Reclassified as "Assets held for sale" | (807) | |
Reclassification from “Assets held for sale” | 301 | |
Net investment in property | 301 | |
Jiang Huai [Member] | ||
Investment Amount | 580 | 580 |
FuLi [Member] | ||
Investment Amount | 648 | 648 |
China [Member] | ||
Currency translation | (93) | (131) |
Gross investment in rental property | 1,436 | 1,991 |
Accumulated depreciation on rental property | (875) | (845) |
Reclassified as "Assets held for sale" | 410 | |
Reclassification from “Assets held for sale” | (143) | |
Net investment in property | 828 | 1,146 |
Penang [Member] | ||
Investment Amount | 181 | |
Malaysia [Member] | ||
Gross investment in rental property | 181 | |
Accumulated depreciation on rental property | (83) | |
Reclassified as "Assets held for sale" | (98) | |
Net investment in property | 0 | |
Yuan RMB | MaoYe [Member] | ||
Investment Amount | 5,554 | 5,554 |
Currency translation | 0 | |
Reclassified as "Assets held for sale" | (5,554) | |
Reclassification from “Assets held for sale” | 2,024 | |
Net investment in property | 2,024 | |
Yuan RMB | Jiang Huai [Member] | ||
Investment Amount | 3,600 | 3,600 |
Yuan RMB | FuLi [Member] | ||
Investment Amount | 4,025 | 4,025 |
Yuan RMB | China [Member] | ||
Currency translation | 0 | 0 |
Gross investment in rental property | 9,649 | 13,179 |
Accumulated depreciation on rental property | (5,879) | (5,596) |
Reclassified as "Assets held for sale" | 2,822 | |
Reclassification from “Assets held for sale” | (1,029) | |
Net investment in property | $ 5,563 | 7,583 |
Penang-Malaysia RM [Member] | Penang [Member] | ||
Investment Amount | 681 | |
Ringgit RM | Malaysia [Member] | ||
Gross investment in rental property | 681 | |
Accumulated depreciation on rental property | (310) | |
Reclassified as "Assets held for sale" | (371) | |
Net investment in property | $ 0 |
INVESTMENT PROPERTIES (Details
INVESTMENT PROPERTIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
MaoYe [Member] | ||||
Rental income | $ 15 | $ 22 | $ 58 | $ 75 |
Jiang Huai [Member] | ||||
Rental income | 0 | 0 | 0 | 0 |
FuLi [Member] | ||||
Rental income | 10 | 12 | 23 | 35 |
China [Member] | ||||
Rental income | 25 | 34 | 81 | 110 |
Depreciation expense | $ 14 | $ 25 | $ 42 | $ 74 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
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 | 71 | 561 |
Deposit for rental and utilities | 140 | 140 |
Currency translation effect | (128) | (97) |
Ending balance | $ 1,728 | $ 2,249 |
LINES OF CREDIT (Details)
LINES OF CREDIT (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
TrioTech Intl Credit Facility [Member] | ||
Type of facility | Lines of Credit | Lines of Credit |
Credit limitation | $ 4,206 | $ 4,183 |
Unused credit | $ 4,072 | $ 3,325 |
TrioTech Intl Credit Facility [Member] | Minimum [Member] | ||
Interest rate | 1.83% | 1.60% |
TrioTech Intl Credit Facility [Member] | Maximum [Member] | ||
Interest rate | 5.50% | 5.50% |
TrioTech Tianjin Credit Facility [Member] | ||
Type of facility | Lines of Credit | Lines of Credit |
Interest rate | 5.22% | |
Credit limitation | $ 1,490 | $ 1,511 |
Unused credit | $ 1,250 | $ 437 |
TrioTech Tianjin Credit Facility [Member] | Minimum [Member] | ||
Interest rate | 5.22% | 5.22% |
TrioTech Tianjin Credit Facility [Member] | Maximum [Member] | ||
Interest rate | 6.30% | |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | ||
Type of facility | Lines of Credit | Lines of Credit |
Credit limitation | $ 369 | $ 367 |
Unused credit | $ 121 | $ 256 |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | Minimum [Member] | ||
Interest rate | 1.83% | 1.60% |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | Maximum [Member] | ||
Interest rate | 5.50% | 5.50% |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Notes to Financial Statements | ||
Payroll and related costs | $ 1,129 | $ 1,545 |
Commissions | 135 | 89 |
Customer deposits | 1,117 | 17 |
Legal and audit | 300 | 265 |
Sales tax | 16 | 17 |
Utilities | 117 | 130 |
Warranty | 47 | 82 |
Accrued purchase of materials and property, plant and equipment | 355 | 454 |
Provision for re-instatement | 302 | 289 |
Other accrued expenses | 363 | 203 |
Currency translation effect | 1 | 81 |
Total | $ 3,882 | $ 3,172 |
WARRANTY ACCRUAL (Details)
WARRANTY ACCRUAL (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Notes to Financial Statements | ||
Beginning | $ 82 | $ 48 |
Additions charged to cost and expenses | 11 | 64 |
Reversal | (46) | (30) |
Currency translation effect | 0 | 0 |
Ending | $ 47 | $ 82 |
BANK LOANS PAYABLE (Details)
BANK LOANS PAYABLE (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Bank loan payable | $ 2,934 | $ 1,804 |
Current portion of bank loan payable | 495 | 380 |
Currency translation effect on short-term portion of bank loan | (3) | (13) |
Current portion of bank loan payable | 492 | 367 |
Long term portion of bank loan payable | 2,465 | 1,528 |
Currency translation effect on long-term portion of bank loan | (23) | (91) |
Long term portion of bank loans payable | 2,442 | 1,437 |
Bank Note [Member] | ||
Bank loan payable | 2,779 | 1,615 |
Bank Note 2 [Member] | ||
Bank loan payable | 180 | 293 |
Currency Translation Effect [Member] | ||
Bank loan payable | $ (25) | $ (104) |
BANK LOANS PAYABLE (Details 1)
BANK LOANS PAYABLE (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Notes to Financial Statements | ||
2019 | $ 492 | $ 367 |
2020 | 383 | 372 |
2021 | 375 | 242 |
2022 | 394 | 254 |
2023 | 205 | 267 |
Thereafter | 1,085 | 302 |
Total obligations and commitments | $ 2,934 | $ 1,804 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Malaysia [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 77 | $ 16 |
Tianjin [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 40 | 593 |
SIP [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 94 | 919 |
Ringgit RM | Malaysia [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 315 | 62 |
Ringgit RM | SIP [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 632 | 6,084 |
Yuan RMB | Tianjin [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 265 | $ 3,927 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Net revenue | $ 8,838 | $ 10,104 | $ 28,573 | $ 31,601 | |
Operating Income (Loss) | 123 | 234 | 473 | 1,479 | |
Total assets | 37,000 | 36,388 | 37,000 | 36,388 | |
Depreciation and amortization | 632 | 575 | 1,777 | 1,594 | |
Capital expenditures | 278 | 455 | 2,576 | 2,050 | |
Manufacturing [Member] | |||||
Net revenue | 3,097 | 3,124 | 10,086 | 11,862 | |
Operating Income (Loss) | (8) | (105) | 175 | 188 | |
Total assets | 9,205 | 7,035 | 9,205 | 7,035 | |
Depreciation and amortization | 30 | 30 | 88 | 86 | |
Capital expenditures | 39 | 26 | 40 | 63 | |
Testing Services [Member] | |||||
Net revenue | 3,989 | 4,913 | 12,819 | 14,454 | |
Operating Income (Loss) | (17) | 428 | (134) | 1,281 | |
Total assets | 22,842 | 24,790 | 22,842 | 24,790 | |
Depreciation and amortization | 588 | 519 | 1,647 | 1,432 | |
Capital expenditures | 239 | 429 | 2,535 | 1,987 | |
Distribution [Member] | |||||
Net revenue | 1,727 | 2,033 | 5,587 | 5,175 | |
Operating Income (Loss) | 150 | 117 | 492 | 337 | |
Total assets | 780 | 631 | 780 | 631 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Real Estate [Member] | |||||
Net revenue | 25 | 34 | 81 | 110 | |
Operating Income (Loss) | (13) | (18) | (30) | (38) | |
Total assets | 3,914 | 3,732 | 3,914 | 3,732 | |
Depreciation and amortization | 14 | 26 | 42 | 76 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Fabrication Services [Member] | |||||
Net revenue | 0 | 0 | 0 | 0 | |
Operating Income (Loss) | 0 | 0 | 0 | 0 | |
Total assets | [1] | 26 | 28 | 26 | 28 |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Corporate And Unallocated [Member] | |||||
Net revenue | 0 | 0 | 0 | 0 | |
Operating Income (Loss) | 11 | (188) | (30) | (289) | |
Total assets | 233 | 172 | 233 | 172 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Capital expenditures | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | Fabrication services is a discontinued operation. |
OTHER INCOME, NET (Details)
OTHER INCOME, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income Net Details | ||||
Interest income | $ 31 | $ 19 | $ 67 | $ 39 |
Other rental income | 28 | 28 | 84 | 81 |
Exchange loss | (11) | (5) | (78) | (27) |
Bad debt recovery | 0 | 0 | 2 | 0 |
Other miscellaneous income | 80 | 69 | 145 | 218 |
Total | $ 128 | $ 111 | $ 220 | $ 311 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Revenue | ||
Trade Accounts Receivable | $ 7,120 | $ 7,747 |
Accounts Payable | 3,021 | 3,704 |
Contract Assets | 357 | 260 |
Contract Liabilities | $ 1,077 | $ 31 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Notes to Financial Statements | ||||
Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ 682 | $ (736) | $ 1,097 | $ 520 |
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | 1 | (3) | (1) | (11) |
Net income attributable to Trio-Tech International common shareholders | $ 683 | $ (739) | $ 1,096 | $ 509 |
Weighted average number of common shares outstanding - basic | 3,673 | 3,553 | 3,673 | 3,553 |
Dilutive effect of stock options | 12 | 219 | 73 | 225 |
Number of shares used to compute earnings per share - diluted | 3,685 | 3,772 | 3,746 | 3,778 |
Basic earnings per share from continuing operations attributable to Trio-Tech International | $ 0.19 | $ (0.21) | $ 0.3 | $ 0.15 |
Basic earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | 0 | 0 |
Basic Earnings per Share from Net Income Attributable to Trio-Tech International | 0.19 | (0.21) | 0.3 | 0.15 |
Diluted earnings per share from continuing operations attributable to Trio-Tech International | 0.19 | (0.20) | 0.29 | 0.14 |
Diluted earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | 0 | 0 |
Diluted Earnings per Share from Net Income Attributable to Trio-Tech International | $ 0.19 | $ (0.20) | $ 0.29 | $ 0.14 |
STOCK OPTIONS (Details)
STOCK OPTIONS (Details) | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Minimum [Member] | ||
Expected volatility | 47.29% | 47.29% |
Risk-free interest rate | 0.30% | 0.30% |
Expected life (years) | 2 years 6 months | 2 years 6 months |
Maximum [Member] | ||
Expected volatility | 97.48% | 104.94% |
Risk-free interest rate | 1.05% | 1.05% |
Expected life (years) | 3 years 3 months | 3 years 3 months |
STOCK OPTIONS (Details 1)
STOCK OPTIONS (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
2017 Employee Plan [Member] | ||
Outstanding at beginning of period | 60,000 | 0 |
Granted, Options | 16,000 | 60,000 |
Exercised, Options | 0 | 0 |
Forfeited or expired, Options | 0 | 0 |
Options outstanding | 76,000 | 60,000 |
Exercisable at end of period | 34,000 | 60,000 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 5.98 | $ 0 |
Granted, Weighted- Average Exercise Price | 3.75 | 5.98 |
Exercised, Weighted- Average Exercise Price | 0 | 0 |
Forfeited or expired, Weighted- Average Exercise Price | 0 | 0 |
Outstanding at end of period, Weighted- Average Exercise Price | 5.51 | 5.98 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 5.72 | $ 5.98 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 8 months 23 days | |
Granted, Weighted - Average Remaining Contractual Term (Years) | 4 years 8 months 5 days | 4 years 11 months 23 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 1 month 17 days | 4 years 11 months 23 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 22 days | 4 years 11 months 23 days |
Outstanding at beginning of period | $ 0 | $ 0 |
Granted, Aggregate Intrinsic Value | 0 | 0 |
Exercised, Aggregate Intrinsic Value | 0 | 0 |
Forfeited or expired, Aggregate Intrinsic Value | 0 | 0 |
Outstanding at end of period | 0 | 0 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 0 | $ 0 |
2007 Employee Plan [Member] | ||
Outstanding at beginning of period | 127,500 | 127,500 |
Granted, Options | 0 | 0 |
Exercised, Options | (50,000) | 0 |
Forfeited or expired, Options | 0 | 0 |
Options outstanding | 77,500 | 127,500 |
Exercisable at end of period | 68,125 | 98,750 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.52 | $ 3.52 |
Granted, Weighted- Average Exercise Price | 0 | 0 |
Exercised, Weighted- Average Exercise Price | 3.25 | 0 |
Forfeited or expired, Weighted- Average Exercise Price | 0 | 0 |
Outstanding at end of period, Weighted- Average Exercise Price | 3.69 | 3.52 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 3.62 | $ 3.43 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 1 month 6 days | 3 years 1 month 6 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 5 months 19 days | 2 years 4 months 6 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 4 months 24 days | 1 year 11 months 23 days |
Outstanding at beginning of period | $ 121 | $ 187 |
Granted, Aggregate Intrinsic Value | 0 | 0 |
Exercised, Aggregate Intrinsic Value | 0 | 0 |
Forfeited or expired, Aggregate Intrinsic Value | 0 | 0 |
Outstanding at end of period | 0 | 285 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 0 | $ 230 |
Directors2017EquityIncentivePlanMember | ||
Outstanding at beginning of period | 80,000 | 0 |
Granted, Options | 0 | 80,000 |
Exercised, Options | 0 | 0 |
Forfeited or expired, Options | 0 | 0 |
Options outstanding | 80,000 | 80,000 |
Exercisable at end of period | 80,000 | 80,000 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 5.98 | $ 0 |
Granted, Weighted- Average Exercise Price | 0 | 5.98 |
Exercised, Weighted- Average Exercise Price | 0 | 0 |
Forfeited or expired, Weighted- Average Exercise Price | 0 | 0 |
Outstanding at end of period, Weighted- Average Exercise Price | 5.98 | 5.98 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 5.98 | $ 5.98 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 8 months 23 days | |
Granted, Weighted - Average Remaining Contractual Term (Years) | 4 years 11 months 23 days | |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 11 months 23 days | 4 years 11 months 23 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 11 months 23 days | 4 years 11 months 23 days |
Outstanding at beginning of period | $ 0 | $ 0 |
Granted, Aggregate Intrinsic Value | 0 | 0 |
Exercised, Aggregate Intrinsic Value | 0 | 0 |
Forfeited or expired, Aggregate Intrinsic Value | 0 | 0 |
Outstanding at end of period | 0 | 0 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 0 | $ 0 |
2007 Directors Equity Incentive Plan [Member] | ||
Outstanding at beginning of period | 390,000 | 415,000 |
Granted, Options | 0 | 0 |
Exercised, Options | (70,000) | (20,000) |
Forfeited or expired, Options | (20,000) | (5,000) |
Options outstanding | 300,000 | 390,000 |
Exercisable at end of period | 300,000 | 390,000 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.41 | $ 3.36 |
Granted, Weighted- Average Exercise Price | 0 | 0 |
Exercised, Weighted- Average Exercise Price | 3.39 | 2.59 |
Forfeited or expired, Weighted- Average Exercise Price | (3.62) | 2.07 |
Outstanding at end of period, Weighted- Average Exercise Price | 3.4 | 3.41 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 3.4 | $ 3.41 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 18 days | 2 years 11 months 5 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 9 months 29 days | 2 years 3 months 18 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 9 months 29 days | 2 years 3 months 18 days |
Outstanding at beginning of period | $ 412 | $ 673 |
Granted, Aggregate Intrinsic Value | 0 | 0 |
Exercised, Aggregate Intrinsic Value | 0 | 0 |
Forfeited or expired, Aggregate Intrinsic Value | 0 | 0 |
Outstanding at end of period | 0 | 911 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 0 | $ 911 |
STOCK OPTIONS (Details 2)
STOCK OPTIONS (Details 2) - $ / shares | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
2017 Employee Plan [Member] | ||
Non-vested at beginning of period, Options | 45,000 | 0 |
Granted, Options | 16,000 | 60,000 |
Vested, Options | (19,000) | (15,000) |
Forfeited, Options | 0 | 0 |
Non-vested at end of period, Options | 42,000 | 45,000 |
Non-vested at beginning of period, Weighted-Average Grant-Date Fair Value | $ 5.98 | $ 0 |
Granted, Options, Weighted-Average Grant-Date Fair Value | 3.75 | 5.98 |
Vested, Options, Weighted-Average Grant-Date Fair Value | (5.72) | 5.98 |
Forfeited, Options, Weighted-Average Grant-Date Fair Value | 0 | 0 |
Non-vested at end of period, Options , Weighted-Average Grant-Date Fair Value | $ 5.34 | $ 3.83 |
2007 Employee Plan [Member] | ||
Non-vested at beginning of period, Options | 28,750 | 48,125 |
Granted, Options | 0 | 0 |
Vested, Options | (19,375) | (19,375) |
Forfeited, Options | 0 | 0 |
Non-vested at end of period, Options | 9,375 | 28,750 |
Non-vested at beginning of period, Weighted-Average Grant-Date Fair Value | $ 3.83 | $ 3.77 |
Granted, Options, Weighted-Average Grant-Date Fair Value | 0 | 0 |
Vested, Options, Weighted-Average Grant-Date Fair Value | 4.14 | (3.43) |
Forfeited, Options, Weighted-Average Grant-Date Fair Value | 0 | 0 |
Non-vested at end of period, Options , Weighted-Average Grant-Date Fair Value | $ 4.14 | $ 3.83 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Stock-based compensation expense | $ 12 | $ 40 | |
2017 Employee Plan [Member] | |||
Stock-based compensation expense | $ 3 | 11 | 4 |
Unamortized stock-based compensation | $ 14 | $ 14 | $ 11 |
Vested stock options | 34,000 | 34,000 | 60,000 |
Weighted-average exercise price, vested options | $ 5.72 | $ 5.72 | $ 5.98 |
Weighted average contractual term | 4 years 22 days | 4 years 11 months 23 days | |
Employee 2007 [Member] | |||
Stock-based compensation expense | $ 1 | $ 3 | |
Unamortized stock-based compensation | $ 2 | ||
Vested stock options | 68,125 | 68,125 | 98,750 |
Weighted-average exercise price, vested options | $ 3.62 | $ 3.62 | $ 3.43 |
Weighted average contractual term | 2 years 4 months 24 days | 1 year 11 months 23 days | |
2017 Directors Equity Incentive Plan [Member] | |||
Stock-based compensation expense | $ 33 |