Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Sep. 01, 2021 | Dec. 31, 2020 | |
Document And Entity Information | |||
Entity Registrant Name | TRIO-TECH INTERNATIONAL | ||
Entity Central Index Key | 0000732026 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2021 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | CA | ||
Entity File Number | 1-14523 | ||
Entity Public Float | $ 6,644,000 | ||
Entity Common Stock, Shares Outstanding | 3,913,055 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | [1] |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 5,836 | $ 4,150 | |
Short-term deposits | 6,651 | 6,838 | |
Trade accounts receivable, less allowance for doubtful accounts of $311 and $314 | 8,293 | 5,951 | |
Other receivables | 662 | 998 | |
Inventories, less provision for obsolete inventory of $679 and $678 | 2,080 | 1,922 | |
Prepaid expenses and other current assets | 418 | 341 | |
Financed sales receivable | 19 | 0 | |
Total current assets | 23,959 | 20,200 | |
NON-CURRENT ASSETS | |||
Deferred tax assets | 217 | 247 | |
Investment properties, net | 681 | 690 | |
Property, plant and equipment, net | 9,531 | 10,310 | |
Operating lease right-of-use assets | 1,876 | 944 | |
Other assets | 262 | 1,609 | |
Financed sales receivable | 39 | 0 | |
Restricted term deposits | 1,741 | 1,660 | |
Total non-current assets | 14,347 | 15,460 | |
TOTAL ASSETS | 38,306 | 35,660 | |
CURRENT LIABILITIES: | |||
Lines of credit | 72 | 172 | |
Accounts payable | 3,702 | 2,590 | |
Accrued expenses | 3,363 | 3,005 | |
Income taxes payable | 314 | 344 | |
Current portion of bank loans payable | 439 | 370 | |
Current portion of finance leases | 197 | 231 | |
Current portion of operating leases | 672 | 477 | |
Current portion of PPP loan | 0 | 54 | |
Total current liabilities | 8,759 | 7,243 | |
NON-CURRENT LIABILITIES: | |||
Bank loans payable, net of current portion | 1,621 | 1,836 | |
Finance leases, net of current portion | 253 | 435 | |
Operating leases, net of current portion | 1,204 | 467 | |
Income taxes payable | 385 | 430 | |
PPP loan, net of current portion | 0 | 67 | |
Other non-current liabilities | 31 | 36 | |
Total non-current liabilities | 3,494 | 3,271 | |
TOTAL LIABILITIES | 12,253 | 10,514 | |
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: | |||
Common stock, no par value, 15,000,000 shares authorized; 3,913,055 and 3,673,055 shares issued and outstanding as at June 30, 2021 and June 30, 2020, respectively | 12,178 | 11,424 | |
Paid-in capital | 4,233 | 3,984 | |
Accumulated retained earnings | 6,824 | 7,415 | |
Accumulated other comprehensive gain-translation adjustments | 2,399 | 1,143 | |
Total Trio-Tech International shareholders' equity | 25,634 | 25,146 | |
Non-controlling interests | 419 | 1,180 | |
TOTAL EQUITY | 26,053 | 23,966 | |
TOTAL LIABILITIES AND EQUITY | $ 38,306 | $ 35,660 | |
[1] | Restated |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 311 | $ 314 |
Provision for obsolete inventory | $ 679 | $ 678 |
Common stock, authorized | 15,000,000 | 15,000,000 |
Common stock, issued | 3,913,055 | 3,673,055 |
Common stock, outstanding | 3,913,055 | 3,673,055 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Revenue | |||
Manufacturing | $ 13,151 | $ 11,605 | |
Testing services | 13,846 | 14,840 | |
Distribution | 5,437 | 7,958 | |
Real estate | 28 | 62 | |
Total | 32,462 | 34,465 | |
Cost of Sales | |||
Cost of manufactured products sold | 9,809 | 8,927 | |
Cost of testing services rendered | 10,431 | 11,353 | |
Cost of distribution | 4,475 | 6,847 | |
Cost of real estate | 77 | 72 | |
Total | 24,792 | 27,199 | |
Gross Margin | 7,670 | 7,266 | |
Operating Expenses | |||
General and administrative | 6,938 | 7,064 | |
Selling | 446 | 679 | |
Research and development | 357 | 355 | |
Impairment loss on long-lived assets | 0 | 139 | |
Gain on disposal of property, plant and equipment | (1) | (24) | |
Total operating expenses | 7,740 | 8,213 | |
Loss from Operations | (70) | (947) | |
Other (Expenses) / Income | |||
Interest expenses | (126) | (230) | |
Other income, net | 363 | 334 | |
Government grants | 514 | 778 | |
Gain on sale of properties | 0 | 1,172 | |
Impariment loss on other assets | (1,580) | 0 | |
Total other (expenses) / income | (829) | 2,054 | |
(Loss) / Income from Continuing Operations before Income Taxes | (899) | 1,107 | |
Income Tax Benefits / (Expenses) | (228) | 12 | |
(Loss) / Income from continuing operations before non-controlling interests, net of tax | (1,127) | 1,119 | |
Discontinued Operations | |||
Loss from discontinued operations, net of tax | (28) | (3) | |
NET (LOSS) / INCOME | (1,155) | 1,116 | [1] |
Less: net income/(loss) attributable to non-controlling interests | (564) | 238 | |
(Loss) / Net Income Attributable to Trio-Tech International Common Shareholders | (591) | 878 | |
Amounts Attributable to Trio-Tech International Common Shareholders: | |||
(Loss) / Income from continuing operations, net of tax | (575) | 879 | |
Loss from discontinued operations, net of tax | (16) | (1) | |
Net (Loss) / Income Attributable to Trio-Tech International Common Shareholders | $ (591) | $ 878 | |
Basic Earnings per Share: | |||
Basic (loss) / earnings per share from continuing operations attributable to Trio-Tech International | $ (.16) | $ .24 | |
Basic earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | |
Basic (loss) / earnings per Share from Net Income Attributable to Trio-Tech International | (.16) | 0.24 | |
Diluted (Loss) / Earnings per Share: | |||
Diluted (loss) / earnings per share from continuing operations attributable to Trio-Tech International | (.15) | .24 | |
Diluted earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | |
Diluted (Loss) / Earnings per Share from Net Income Attributable to Trio-Tech International | $ (.15) | $ 0.24 | |
Weighted average number of common shares outstanding Basic | 3,768 | 3,673 | |
Dilutive effect of stock options | 117 | 53 | |
Number of shares used to compute earnings per share diluted | 3,885 | 3,726 | |
[1] | Restated |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Comprehensive Income Attributable to Trio-Tech International Common Shareholders: | |||
Net (loss) / income | $ (1,155) | $ 1,116 | [1] |
Foreign currency translation, net of tax | 1,248 | (742) | |
Comprehensive Income | 93 | 374 | |
Less: comprehensive (loss) / income attributable to the non-controlling interests | (572) | 220 | |
Comprehensive Income Attributable to Trio-Tech International Common Shareholders | $ 2,665 | $ 154 | |
[1] | Restated |
CONSOLIDATED STATEMENTS OF SHAR
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, shares at Jun. 30, 2019 | 3,673 | |||||||
Beginning balance, amount at Jun. 30, 2019 | [1] | $ 11,424 | $ 3,838 | $ 6,537 | $ 1,867 | $ 1,195 | $ 24,861 | |
Stock option expenses | [1] | 146 | 146 | |||||
Net (loss) / income | [1] | 878 | 238 | 1,116 | ||||
Dividend declared by subsidiary | (235) | (235) | ||||||
Translation adjustment | (724) | (18) | (742) | |||||
Ending balance, shares at Jun. 30, 2020 | 3,673 | |||||||
Ending balance, amount at Jun. 30, 2020 | $ 11,424 | 3,984 | 7,415 | 1,143 | 1,180 | 25,146 | [1] | |
Stock option expenses | $ 249 | 249 | ||||||
Net (loss) / income | $ (591) | (564) | (1,155) | |||||
Dividend declared by subsidiary | (189) | (189) | ||||||
Exercise of options, shares | 240 | |||||||
Exercise of options, amount | $ 754 | 754 | ||||||
Translation adjustment | $ 1,256 | $ (8) | 1,248 | |||||
Ending balance, shares at Jun. 30, 2021 | 3,913 | |||||||
Ending balance, amount at Jun. 30, 2021 | $ 25,634 | |||||||
[1] | Restated |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Cash Flow from Operating Activities | |||
Net (loss) / income | $ (1,155) | $ 1,116 | [1] |
Adjustments to reconcile net income to net cash flow provided by operating activities | |||
Gain on sale of assets held for sale | 0 | (1,172) | |
Depreciation and amortization | 3,059 | 3,100 | |
Impairment loss on other assets | (1,580) | 0 | |
Impairment loss on long-lived assets | 0 | 139 | |
Stock option expenses | 249 | 146 | |
(Reversal) / Addition of obsolete inventory | (15) | 18 | |
Payment of interest portion of finance leases | 40 | 61 | |
Bad debt (recovery) / expenses | (9) | 59 | |
Accrued interest expense, net accrued interest income | 29 | (69) | |
PPP loan forgiveness income | 121 | 0 | |
Dividend income | (32) | 0 | |
Dividend received | 32 | 0 | |
Gain on sale of property, plant and equipment | (1) | (24) | |
Warranty addition / (recovery), net | (3) | (26) | |
Deferred tax (benefit) / expenses | (139) | 63 | |
Changes in operating assets and liabilities | |||
Trade accounts receivables | (2,347) | 1,110 | |
Other receivables | 336 | (181) | |
Other assets | (327) | 100 | |
Inventories | (98) | 430 | |
Prepaid expenses and other current assets | (97) | (54) | |
Accounts payable and accrued expenses | 1,377 | (968) | |
Income tax payable | 118 | 12 | |
Operating lease liabilities | 764 | 727 | |
Net Cash Provided by Operating Activities | 1,638 | 3,011 | |
Cash Flow from Investing Activities | |||
Proceeds from sale of assets held for sale | 0 | 1,167 | |
Proceeds from disposal of property, plant and equipment | 0 | 39 | |
Withdrawal of un-restricted deposit | 2,335 | 0 | |
Investments in restricted and un-restricted deposits | (1,790) | (2,806) | |
Additions to property, plant and equipment | (1,112) | (1,017) | |
Net Cash used in Investing Activities | (567) | (2,617) | |
Cash Flow from Financing Activities | |||
Payment on lines of credit | (589) | (2,437) | |
Payment of bank loans | (412) | (486) | |
Payment of principal portion of finance leases | (253) | (344) | |
Dividends paid on non-controlling interest | (189) | (235) | |
Proceeds from exercising stock options | 754 | 0 | |
Proceeds from bank loans | 205 | 0 | |
Proceeds from lines of credit | 482 | 2,370 | |
Proceeds from finance leases | 0 | 279 | |
Proceeds from PPP loan | 0 | 121 | |
Net Cash Used in Financing Activities | (2) | (732) | |
Effect of Changes in Exchange Rate | 698 | (421) | |
Net (Decrease) / Increase in Cash, Cash Equivalents, and Restricted Cash | 1,767 | (759) | |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 5,810 | 6,569 | |
Cash, Cash Equivalents, and Restricted Cash at End of Period | 7,577 | 5,810 | |
Supplementary Information of Cash Flows | |||
Cash paid during the period for Interest | 122 | 229 | |
Cash paid during the period for Income taxes | 207 | 126 | |
Non-Cash Transactions | |||
Finance lease of property, plant and equipment | 0 | 279 | |
Reconciliation of Cash, cash equivalents, and restricted cash | |||
Cash | 5,836 | 4,150 | [1] |
Restricted Term Deposits | 1,741 | 1,660 | |
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ 7,577 | $ 5,810 | |
[1] | Restated |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation and Principles of Consolidation - 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 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 consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP’’). The basis of accounting differs from that used in the statutory financial statements of the Company’s subsidiaries and equity investee companies, which are prepared in accordance with the accounting principles generally accepted in their respective countries of incorporation. In the opinion of management, the consolidated financial statements have reflected all costs incurred by the Company and its subsidiaries in operating the business. All dollar amounts in the consolidated financial statements and in the notes herein are presented in thousands of United States dollars (US$’000) unless otherwise designated. Liquidity The Company’s core businesses - testing services, manufacturing and distribution - operate in a volatile industry, whereby its average selling prices and product costs are influenced by competitive factors. These factors create pressures on sales, costs, earnings and cash flows, which will impact liquidity. Foreign Currency Translation and Transactions The Company translates assets and liabilities of its subsidiaries outside the U.S. into U.S. dollars using the rate of exchange prevailing at the fiscal year end, and the consolidated statements of operations and comprehensive income or loss is translated at average rates during the reporting period. Adjustments resulting from the translation of the subsidiaries’ financial statements from foreign currencies into U.S. dollars are recorded in shareholders' equity as part of accumulated other comprehensive gain - translation adjustments. Gains or losses resulting from transactions denominated in currencies other than functional currencies of the Company’s subsidiaries are reflected in income for the reporting period. Use of Estimates — Revenue Recognition Revenue from Contracts with Customers We apply a five-step approach as defined in ASC Topic 606 in determining the amount and timing of revenue to be recognized: (1) identifying the contract with customer; (2) identifying the performance obligations in the contracts; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. Revenue derived from testing services is recognized when testing services are rendered. Revenue generated from sale of products in the manufacturing and distribution segments are recognized when persuasive evidence of an arrangement exists, delivery of the products has occurred, customer acceptance has been obtained (which means the significant risks and rewards of ownership have been transferred to the customer), the price is fixed or determinable and collectability is reasonably assured. Certain customers can request for installation and training services to be performed for certain products sold in the manufacturing segment. These services are mainly for helping customers with the test runs of the machines sold and are considered a separate performance obligation. Such services can be provided by other entities as well and these do not significantly modify the product. The Company recognizes the revenue at point in time when the Company has satisfied its performance obligation. In the real estate segment: (1) revenue from property development is earned and recognized on the earlier of the dates when the underlying property is sold or upon the maturity of the agreement; if this amount is uncollectible, the agreement empowers the repossession of the property, and (2) rental revenue is recognized on a straight-line basis over the terms of the respective leases. This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue is commenced when the tenant assumes possession of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. GST / Indirect Taxes Trade Account Receivables and Allowance for Doubtful Accounts — The Company’s management considers the following factors when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. The Company includes any account balances that are determined to be uncollectible, along with a general reserve, in the overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to management, the Company believed that its allowance for doubtful accounts was adequate as of June 30, 2021 and 2020. Warranty Costs — Cash and Cash Equivalents — Term Deposits — Restricted Term Deposits — Inventories Property, Plant and Equipment and Investment Properties Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and improvements to the assets are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the consolidated statements of operations and comprehensive income or loss. Long-Lived Assets and Impairment – The Company evaluates the long-lived assets, including property, plant and equipment and investment property, for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for our business, significant negative industry or economic trends, and a significant decline in the stock price for a sustained period of time. Impairment is recognized based on the difference between the fair value of the asset and its carrying value, and fair value is generally measured based on discounted cash flow analysis, if there is significant adverse change. The Company applies the provisions of ASC Topic 360, Accounting for the Impairment or Disposal of Long-Lived Assets Leases - Company as Lessee Accounting Standards Codification Topic 842 ("ASC Topic 842") introduced new requirements to increase transparency and comparability among organizations for leasing transactions for both lessees and lessors. It requires a lessee to record a right-of-use asset and a lease liability for all leases with terms longer than 12 months. These leases will be either finance or operating, with classification affecting the pattern of expense recognition. The Company applies the guidance in ASC Topic 842 to its individual leases of assets. When the Company receives substantially all of the economic benefits from and directs the use of specified property, plant and equipment, the transactions give rise to leases. The Company’s classes of assets include real estate leases. Operating leases are included in operating lease right-of-use ("ROU") assets under the noncurrent asset portion of our consolidated balance sheets and under this current portion and noncurrent liabilities portion of our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the related lease. Finance leases are included in property, plant and equipment under the noncurrent asset portion of our consolidated balance sheets and under the current portion and noncurrent liabilities portion of our consolidated balance sheets. The Company has elected the practical expedient within ASC Topic 842 to not separate lease and non-lease components within lease transactions for all classes of assets. Additionally, the Company has elected the short-term lease exception for all classes of assets, does not apply the recognition requirements for leases of 12 months or less, and recognizes lease payments for short-term leases as expense either straight-line over the lease term or as incurred depending on whether the lease payments are fixed or variable. These elections are applied consistently for all leases. As part of applying the transition method, the Company has elected to apply the package of transition practical expedients within the new guidance. As required by the new standard, these expedients have been elected as a package and are consistently applied across the Company’s lease portfolio. Given this election, the Company need not reassess: ● whether any expired or existing contracts are or contain leases; ● the lease classification for any expired or existing leases; ● treatment of initial direct costs relating to any existing leases. When discount rates implicit in leases cannot be readily determined, the Company uses the applicable incremental borrowing rate at lease commencement to perform lease classification tests on lease components and to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate over a similar term. At each reporting period when there is a new lease initiated, the rates established for that quarter will be used. Leases - Company as Lessor All of the leases under which the Company is the lessor will continue to be classified as operating leases and sales-type lease under the new standard The new standard did not have a material effect on our consolidated financial statements and will not have a significant change in our leasing activities. Comprehensive Income or Loss — Reporting Comprehensive Income, Income Taxes — Accounting for Income Taxes . The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The Company recognizes potential liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. Retained Earnings — Research and Development Costs — Stock-based compensation Determining the fair value of stock-based awards at the grant date requires significant judgement. The determination of the grant date fair value of stock-based awards using the Black-Scholes option-pricing model is affected by our estimated common stock fair value as well as other subjective assumptions including the expected term of the awards, the expected volatility over the expected term of the awards, expected dividend yield and risk-free interest rates. The assumptions used in our option-pricing model represent management’s best estimates and are as follows: ● Fair Value of Common Stock. We determined the fair value of each share of underlying common stock based on the closing price of our common stock on the date of grant. ● Expected Term. The expected term of employee stock options reflects the period for which we believe the option will remain outstanding based on historical experience and future expectations. ● Expected Volatility. We base expected volatility on our historical information over a similar expected term. Earnings per Share — Fair Values of Financial Instruments ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The financial assets and financial liabilities that require recognition under the guidance include available-for-sale investments, employee deferred compensation plan and foreign currency derivatives. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. As such, fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. The hierarchy is broken down into three levels based on the reliability of inputs as follows: ● Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Financial assets utilizing Level 1 inputs include U.S. treasuries, most money market funds, marketable equity securities and our employee deferred compensation plan; ● Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, directly or indirectly. Financial assets and liabilities utilizing Level 2 inputs include foreign currency forward exchange contracts, most commercial paper and corporate notes and bonds; and ● Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Concentration of Credit Risk Investments Equity Method Cost Method Loan Receivables from Property Development Projects Interest income on the loan receivables from property development projects are recognized on an accrual basis. Discounts and premiums on loans are amortized to income using the interest method over the remaining period to contractual maturity. The amortization of discounts into income is discontinued on loans that are contractually 90 days past due or when collection of interest appears doubtful. Contingent Liabilities If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. |
RESTATEMENTS
RESTATEMENTS | 12 Months Ended |
Jun. 30, 2021 | |
Restatements | |
RESTATEMENTS | During the preparation of the Annual Report on Form 10-K for the year ended June 30, 2021, the Company has discovered errors in the accounting treatment of expensing stock option issued to the Company’s directors and employees from fiscal year 2016 to 2020 under FASB ASC Topic 718, Compensation – Stock Compensation Accounting Changes and Error Corrections The impact of the restatement on the consolidated financial statements as previously reported is summarized below: For the year ended June 30, 2020 (as previously reported) For the year ended June 30, 2020 (Restated) CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) Paid-in capital 3,363 3,984 Accumulated retained earnings 8,036 7,415 Total Trio-tech International shareholders' equity 23,966 23,966 TOTAL EQUITY 25,146 25,146 For the year ended June 30, 2020 (as previously reported) For the year ended June 30, 2020 (Restated) CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY Accumulated retained earnings $ 8,036 $ 7,415 Paid-in capital 3,363 3,984 For the year ended June 30, 2020 (as previously reported) For the year ended June 30, 2020 (Restated) CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) General and administrative expenses $ 6,976 $ 7,054 Total operating expenses 8,125 8,213 Loss from operation (859 ) (947 ) Income from Continuing Operations before Income Taxes 1,195 1,107 Income from continuing operations before non-controlling interests, net of tax 1,207 1,119 NET INCOME 1,204 1,116 Net Income Attributable to Trio-Tech International Common Shareholders 966 878 Basic Earnings per Share: Basic earnings per share from continuing operations attributable to Trio-Tech International 0.26 0.24 Diluted Earnings per Share: Diluted earnings per share from continuing operations attributable to Trio-Tech International 0.26 0.24 |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | In August 2020, the FASB issued ASU 2020-06: Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivative and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) In March 2020, FASB issued ASU 2020-04 ASC Topic 848: Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in ASU 2019-12 ASC Topic 740: Income Taxes: Simplifying Accounting for Income Taxes In June 2016, FASB issued ASU 2016-13 ASC Topic 326: Financial Instruments — Credit Losses Other new pronouncements issued but not yet effective until after June 30, 2021 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
TERM DEPOSITS
TERM DEPOSITS | 12 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
TERM DEPOSITS | June 30, 2021 June 30, 2020 Short-term deposits $ 6,353 $ 7,028 Currency translation effect on short-term deposits 298 (190 ) Total short-term deposits 6,651 6,838 Restricted term deposits 1,682 1,712 Currency translation effect on restricted term deposits 59 (52 ) Total restricted term deposits 1,741 1,660 Total term deposits $ 8,392 $ 8,498 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 and performance bonds related to customs duty payable. Restricted term deposits are classified as noncurrent 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 | 12 Months Ended |
Jun. 30, 2021 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | Account receivables are customer obligations due under normal trade terms. The Company performs continuing credit evaluations of its customers’ financial conditions, and although management generally does not require collateral, letters of credit may be required from its customers in certain circumstances. Senior management reviews trade account receivables on a periodic basis to determine if any receivables will potentially be uncollectible. Management includes any trade account receivables balances that are determined to be uncollectible in the allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to us, management believed the allowance for doubtful accounts as of June 30, 2021 and June 30, 2020, was adequate. The following table represents the changes in the allowance for doubtful accounts: For the Year Ended June 30, 2021 2020 Beginning $ 314 $ 263 Additions charged to expenses 5 351 Recovered (14 ) (284 ) Write-off (16 ) (9 ) Currency translation effect 22 (7 ) Ending $ 311 $ 314 |
LOANS RECEIVABLE FROM PROPERTY
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | 12 Months Ended |
Jun. 30, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
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 June 30, 2021. Loan Expiry Loan Amount Loan Amount Date (RMB) (U.S. Dollars) Short-term loan receivables JiangHuai (Project - Yu Jin Jiang An) May 31, 2013 2,000 309 Less: allowance for doubtful receivables (2,000 ) (309 ) Net loan receivable from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 773 Less: transfer – down payment for purchase of investment property (5,000 ) (773 ) Net loan receivable from property development projects - - The short-term loan receivables of renminbi (“RMB”) 2,000, or approximately $309, arose due to TTCQ entering 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 in fiscal 2011. TTCQ is in the legal process of recovering the outstanding amount of $309. The long-term loan receivable of RMB 5,000, or approximately $773, arose from TTCQ entering into a Memorandum Agreement with JiaSheng Property Development Co. Ltd. (“JiaSheng”) to invest in JiaSheng’s property development projects (Project B-48 Phase 2) located in Chongqing City, China in fiscal 2011. The loan receivable was secured and repayable at the end of the term. The book value of the loan receivable approximates its fair value. During fiscal year 2015, the loan receivable was transferred to down payment for purchase of investment property that is being developed in the Singapore Themed Resort Project (See Note 10). |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | Inventories consisted of the following: For the Year Ended June 30, 2021 2020 Raw materials $ 1,152 $ 1,281 Work in progress 1,218 968 Finished goods 325 422 Less: provision for obsolete inventories (679 ) (678 ) Currency translation effect 64 (71 ) $ 2,080 $ 1,922 The following table represents the changes in provision for obsolete inventories: For the Year Ended June 30, 2021 2020 Beginning $ 678 $ 673 Additions charged to expenses 13 26 Usage - disposition (28 ) (8 ) Currency translation effect 16 (13 ) Ending $ 679 $ 678 |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 12 Months Ended |
Jun. 30, 2021 | |
Investments [Abstract] | |
INVESTMENT PROPERTIES | The following table presents the Company’s investment in properties in China as of June 30, 2021. The exchange rate is based on the market rate as of June 30, 2021. Investment Date / Reclassification Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I – MaoYe 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 - FuLi Apr 08, 2010 4,025 648 Currency translation - (36 ) Gross investment in rental property 9,649 1,493 Accumulated depreciation on rental property June 30, 2021 (7,040 ) (1,079 ) Reclassified as “Assets held for sale” July 01, 2018 2,822 410 Reclassification from “Assets held for sale” Mar 31, 2019 (1,029 ) (143 ) (5,247 ) (812 ) Net investment in property – China 4,402 681 The following table presents the Company’s investment in properties in China as of June 30, 2020. The exchange rate is based on the market rate as of June 30, 2020. Investment Date / Reclassification Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I – MaoYe 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 - FuLi Apr 08, 2010 4,025 648 Currency translation - (166 ) Gross investment in rental property 9,649 1,363 Accumulated depreciation on rental property June 30, 2020 (6,558 ) (940 ) Reclassified as “Assets held for sale” July 01, 2018 2,822 410 Reclassification from “Assets held for sale” Mar 31, 2019 (1,029 ) (143 ) (4,765 ) (673 ) Net investment in property – China 4,884 690 Rental Property I - MaoYe Property In fiscal 2008, TTCQ purchased an office in Chongqing, China from MaoYe Property Ltd. (“MaoYe”) for a total cash purchase price of RMB 5,554, or approximately $894. During the fiscal year 2019, the Company sold thirteen of the fifteen units constituting the MaoYe Property. Management has decided not to sell the remaining two units of MaoYe properties in the near future, considering the market conditions in China. These properties are vacant as of June 30, 2021, since the last lease agreement expired in March 2021. A new lease agreement had subsequently been signed in September 2021 at a monthly rate of RMB14, or approximately $2, commencing from September 1, 2021 to February 28, 2022. Property purchased from MaoYe generated a rental income of $9 and $32 for the years ended June 30, 2021 and 2020, respectively. Depreciation expense for MaoYe was $15 and $13 for the years ended June 30, 2021 and 2020, respectively. 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. TTCQ had yet to receive the title deed for these properties. TTCQ was in the legal process of obtaining the title deed until the developer encountered cash flow difficulties in the recent years. Since then, JiangHuai company is under liquidation and is now undergoing asset distribution. Nonetheless, this is not expected to affect the property’s market value but, in view of the COVID-19 pandemic and current economic situation, it is likely to be more tedious and time-consuming for the Court in their execution of the sale. Property purchased from JiangHuai did not generate any rental income for both the years ended June 30, 2021 and 2020. Depreciation expense for JiangHuai was $27 and $26 for the years ended June 30, 2021 and 2020, respectively. 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 totaling 311.99 square meters (“office space”) located in Jiang Bei District Chongqing. The total purchase price committed and paid was RMB 4,025, or approximately $648. The development was completed, and the property was handed over to TTCQ in April 2013 and the title deed was received during the third quarter of fiscal 2014. One of the two commercial properties were leased by TTCQ by a third party under a two years lease to rent out the 154.49 square meter at a monthly rate of RMB9, or approximately $1, commencing from May 21, 2021 to May 23, 2023. For the other leased property, TTCQ renewed the lease agreement to rent out the 161 square meter space at a monthly rate of RMB10, or approximately $1, from November 1, 2019 to October 31, 2020. After which, TTCQ renewed the lease agreement at a monthly rate of RMB10, or approximately $1, from November 1, 2020 to April 30, 2021 and May 1, 2021 to October 31, 2021. Properties purchased from FuLi generated a rental income of $19 and $30 for the years ended June 30, 2021 and 2020, respectively. Depreciation expense for FuLi was $30 and $28 for the years ended June 30, 2021 and 2020, respectively. Summary Total rental income for all investment properties in China was $28 for the year ended June 30, 2021, and $62 for the same period in the prior fiscal year. Depreciation expenses for all investment properties in China were $72 and $67 for the years ended June 30, 2021 and 2020, respectively. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Property, plant and equipment consisted of the following: Estimated Useful Life in Years June 30, June 30, Building and improvements 3-20 $ 5,141 $ 5,102 Leasehold improvements 3-27 6,174 6,170 Machinery and equipment 3-7 26,804 26,578 Furniture and fixtures 3-5 1,170 1,134 Equipment under finance leases 3-5 1,413 1,066 Property, plant and equipment, gross $ 40,702 $ 40,050 Less: accumulated depreciation (28,751 ) (27,148 ) Accumulated amortization on equipment under finance leases (1,199 ) (719 ) Total accumulated depreciation $ (29,950 ) $ (27,867 ) Property, plant and equipment before currency translation effect, net 10,752 12,183 Currency translation effect (1,221 ) (1,873 ) Property, plant and equipment, net $ 9,531 $ 10,310 Depreciation and amortization expenses for property, plant and equipment during fiscal years 2021 and 2020 were $2,419 and $2,341, respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Jun. 30, 2021 | |
Other Assets [Abstract] | |
OTHER ASSETS | June 30, June 30, 2021 2020 Down payment for purchase of investment properties* $ - $ 1,645 Down payment for purchase of property, plant and equipment 372 8 Deposits for rental and utilities and others 160 171 Currency translation effect (270 ) (215 ) Total $ 262 $ 1,609 *Down payment for purchase of investment properties included: RMB U.S. Dollars Original Investment (10% of Junzhou equity) $ 10,000 $ 1,606 Less: Management Fee (5,000 ) (803 ) Net Investment 5,000 803 Less: Share of Loss on Joint Venture (137 ) (22 ) Net Investment as Down Payment (Note *a) 4,863 781 Loans Receivable 5,000 814 Interest Receivable 1,250 200 Less: Impairment of Interest (906 ) (150 ) Transferred to Down Payment (Note *b) 5,344 864 * Down Payment for Purchase of Investment Properties 10,207 1,645 Less: Provision of Impairment loss on other assets (10,207 ) (1,645 ) Down Payment for Purchase of Investment Properties - - a) On December 2, 2010, the Company signed a Joint Venture agreement (“agreement”) with Jia Sheng Property Development Co. Ltd. (“Developer”) to form a new company, Junzhou Co. Limited (“Joint Venture” or “Junzhou”), to jointly develop the “Singapore Themed Park” project (the “project”). The Company paid RMB10 million for the 10% investment in the joint venture. The Developer paid the Company a management fee of RMB 5 million in cash upon signing of the agreement, with a remaining fee of RMB 5 million payable upon fulfilment of certain conditions in accordance with the agreement. The Company further reduced its investment by RMB 137, or approximately $22, through the losses from operations incurred by the Joint Venture. On October 2, 2013, the Company disposed of its entire 10% interest in the Joint Venture but to date has not received payment in full therefor. The Company recognized that disposal based on the recorded net book value of RMB 5 million, or equivalent to $803K, from net considerations paid, in accordance with GAAP under ASC Topic 845 Non-monetary Consideration b) Amounts of RMB 5,000, or approximately $773, as disclosed in Note 6, plus the interest receivable on long term loan receivable of RMB 1,250, or approximately $200, and impairment on interest of RMB 906, or approximately $150. The shop lots in the Singapore Themed Resort Project being developed by the Developer under the agreement are to be delivered to TTCQ upon completion thereof. The initial targeted date of completion was December 31, 2016. Based on discussion with the Developer, the completion date is currently estimated to be December 31, 2022. The delay was primarily due to the time needed by the Developer to work with various parties to inject sufficient funds into this project, especially during the COVID-19 pandemic. During the fourth quarter of 2021, The Company accrued an impairment charge of $1,580 related to the doubtful recovery of the down payment on shop lots in the Singapore Theme Resort Project in Chongging, China. The Company elected to take this non-cash impairment charge because of increased uncertainties regarding the project’s viability given the developers weakening financial condition as well as uncertainties arising from the negative real-estate environment in China, implementation of control measures on real-estate lending and its relevant government policies, together with effects of the ongoing pandemic. |
LINES OF CREDIT
LINES OF CREDIT | 12 Months Ended |
Jun. 30, 2021 | |
Line of Credit Facility [Abstract] | |
LINES OF CREDIT | The 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 June 30, 2021, the Company had certain lines of credit that are collateralized by restricted deposits. Entity with Type of Interest Expiration Credit Unused Facility Facility Rate Date Limitation Credit Trio-Tech International Pte. Ltd., Singapore Lines of Credit Ranging from 1.85% to 5.5%, SIBOR rate +1.2% and LIBOR rate +1.25% - $ 4,237 $ 4,237 Universal (Far East) Pte. Ltd., Singapore Lines of Credit Ranging from 1.85% to 5.5% - $ 1,115 $ 1,043 Trio-Tech Malaysia Sdn. Bhd., Malaysia Revolving Credit Cost of Funds Rate +2% - $ 361 $ 361 As of June 30, 2020, the Company had certain lines of credit that are collateralized by restricted deposits. Entity with Type of Interest Expiration Credit Unused Facility Facility Rate Date Limitation Credit Trio-Tech International Pte. Ltd., Singapore Lines of Credit Ranging from 1.85% to 5.5%, SIBOR rate +1.25% and LIBOR rate +1.30% - $ 4,806 $ 4,806 Universal (Far East) Pte. Ltd., Singapore Lines of Credit Ranging from 1.85% to 5.5% - $ 359 $ 187 Trio-Tech Malaysia Sdn. Bhd., Malaysia Revolving Credit Cost of Funds Rate +2% - $ 350 $ 350 On November 18, 2019, Trio-Tech International Pte. Ltd. signed an agreement with JECC Leasing (Singapore) Pte. Ltd. for an Account Receivables Financing facility for SGD 1,000, or approximately $742 based on the market exchange rate. Interest is charged at LIBOR rate +1.3% for USD financing and SIBOR rate +1.25% for SGD financing. The financing facility was set up to facilitate the working capital in our operations in Singapore. The Company started to use this facility in the second quarter of fiscal year 2020. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | Accrued expenses consisted of the following: For the Year Ended June 30, 2021 2020 (Restated) Payroll and related costs 1,362 1,185 Commissions 51 104 Customer deposits 45 30 Legal and audit 321 315 Sales tax 9 19 Utilities 91 80 Warranty 14 12 Accrued purchase of materials and property, plant and equipment 144 186 Provision for reinstatement 290 300 Deferred income 67 88 Contract liabilities 628 476 Other accrued expenses 279 287 Currency translation effect 62 (77 ) Total $ 3,363 $ 3,005 |
WARRANTY ACCRUAL
WARRANTY ACCRUAL | 12 Months Ended |
Jun. 30, 2021 | |
Warranty Accrual | |
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 for products manufactured by the Company is generally one year or the warranty period agreed upon 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. For the Year Ended June 30, 2021 2020 Beginning $ 12 $ 39 Additions charged to cost and expenses 7 1 Utilization (4 ) (27 ) Currency translation effect (1 ) (1 ) Ending $ 14 $ 12 |
BANK LOANS PAYABLE
BANK LOANS PAYABLE | 12 Months Ended |
Jun. 30, 2021 | |
Loans Payable [Abstract] | |
BANK LOANS PAYABLE | Bank loans payable consisted of the following: June 30, 2021 June 30, 2020 Note payable denominated in RM for expansion plans in Malaysia, maturing in August 2024, bearing interest at the bank’s prime rate less 2.00% (3.60% and 3.85% at June 30, 2021 and June 30, 2020) per annum, respectively, with monthly payments of principal plus interest through August 2028, collateralized by the acquired building with a carrying value of $2,579 and $2,543, as at June 30, 2021 and June 30, 2020, respectively. $ 1,885 $ 2,206 Financial arrangement at fixed interest rate 3.2% per annum with monthly payments of principal plus interest through July 2025 $ 175 - Total bank loans payable 2,060 2,206 Current portion of bank loans payable 428 384 Currency translation effect on current portion of bank loans 11 (14 ) Current portion of bank loans payable 439 370 Long term portion of bank loans payable 1,564 1,911 Currency translation effect on long-term portion of bank loans 57 (75 ) Long term portion of bank loans payable $ 1,621 $ 1,836 Future minimum payments (excluding interest) as of June 30, 2021, were as follows: 2022 $ 439 2023 457 2024 462 2025 208 2026 171 Thereafter 323 Total obligations and commitments $ 2,060 Future minimum payments (excluding interest) as of June 30, 2020, were as follows: 2021 $ 370 2022 384 2023 400 2024 403 2025 158 Thereafter 491 Total obligations and commitments $ 2,206 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | The Company had capital commitments in Malaysia for the purchase of equipment and other related infrastructure costs amounting to RM305, or approximately $74 as at June 30, 2021, as compared to no capital commitment as at June 30, 2020. 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 consolidated financial statements. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | 12 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | In accordance with ASC Topic 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 fiscal year ended June 30, 2021, or for the same period in the prior fiscal year. 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. PPP loan (Level 2) – The carrying amount approximates its fair value based on similar short-term debt issues available to the Company. 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. |
CONCENTRATION OF CUSTOMERS
CONCENTRATION OF CUSTOMERS | 12 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CUSTOMERS | The Company had two major customer that accounted for the following revenue and trade account receivables: For the Year Ended June 30, 2021 2020 Revenue Customer A 37.7 % 38.4 % Customer B 9.7 % 17.6 % Trade Account Receivables Customer A 34.7 % 40.6 % Customer B 11.8 % 6.3 % |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | In fiscal year 2021, the Company operated in four segments; the testing service industry (which performs structural and electronic tests of semiconductor devices), the designing and manufacturing of equipment (assembly of equipment that tests the structural integrity of integrated circuits and other products), distribution of various products from other manufacturers in Singapore and 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 on the basis of the primary purpose for which the equipment was acquired. All intersegment sales were sales from the manufacturing segment to the testing and distribution segment. Total intersegment sales were $410 in fiscal year 2021 and $816 in fiscal year 2020. 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 on a predetermined fixed amount calculated based on the annual budgeted sales, except the Malaysia operation, which is calculated based on actual sales. The following segment information table includes segment operating income or loss after including corporate expenses allocated to the segments, which gets eliminated in the consolidation. Year Operating Depr. Ended Net Income Total and Capital June 30, Revenue (Loss) Assets Amort. Expenditures Manufacturing 2021 $ 13,151 $ 376 $ 13,622 $ 411 $ 350 2020 $ 11,605 $ (326 ) $ 9,807 $ 346 $ 134 Testing Services 2021 13,846 (997 ) 21,099 2,570 762 2020 14,840 (1,040 ) 21,086 2,578 834 Distribution 2021 5,437 657 1,156 4 - 2020 7,958 751 875 100 - Real Estate 2021 28 (116 ) 2,070 74 2020 62 (97 ) 3,587 76 Fabrication 2021 - - - - - Services* 2020 - - 27 - - Corporate & 2021 - (10 ) 359 - Unallocated 2020 (Restated) - (235 ) 278 - Total Company 2021 $ 32,462 $ (70 ) $ 38,306 $ 3,059 $ 1,112 2020 $ 34,465 $ (947 ) $ 35,660 $ 3,100 $ 1,017 * Fabrication services is a discontinued operation. |
OTHER INCOME, NET
OTHER INCOME, NET | 12 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | Other income, net consisted of the following: For the Year Ended June 30, 2021 2020 Interest income 118 177 Other rental income 100 110 Exchange loss (69 ) (35 ) Bad debt recovery/ (expense) 9 (59 ) Extinguishment of PPP loan 121 - Dividend income 32 - Other miscellaneous income 52 141 Total $ 363 $ 334 |
GOVERNMENT GRANTS
GOVERNMENT GRANTS | 12 Months Ended |
Jun. 30, 2021 | |
Government Grants | |
GOVERNMENT GRANTS | For the Year Ended June 30, 2021 2020 Government grants 514 778 During fiscal year 2021, the Company received government grants amounting to $514, of which $401 were the financial assistance received from the Singapore and Malaysia governments amid the COVID-19 pandemic. During fiscal year 2020, the Company received government grants amounting to $778, of which $718 were the financial assistance received from the Singapore, Malaysia and China governments amid the COVID-19 pandemic. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | (Loss)/Income before provision for income taxes consists of the following: For the Year Ended June 30, 2021 2020 United States (53 ) (740 ) International (846 ) 1,847 Total $ (899 ) $ 1,107 The components of the provision for income taxes are as follows: For the Year Ended June 30, 2021 2020 Current: Federal $ 13 $ (1 ) State 2 2 Foreign 352 212 $ 367 $ 213 Deferred: Federal $ - $ - State - - Foreign (139 ) (225 ) (139 ) (225 ) Total provisions $ 228 $ (12 ) A reconciliation of income tax benefit compared to the amount of income tax expense that would result by applying the U.S. federal statutory income tax rate to pre-tax income is as follows: For the Year Ended June 30, 2021 2020 Statutory federal tax rate 21.00 % 21.00 % State taxes, net of federal benefit (0.41 ) (0.50 ) Permanent items and credits 4.1 13.95 Foreign rate differential 74.02 (33.86 ) Other 0.67 2.14 Changes in valuation allowance (74.02 ) (3.73 ) Tax reform related to one-time repatriation tax - - Effective rate 25.36 % (1.00 )% The provision for income taxes has been determined based upon the tax laws and rates in the countries in which we operate. 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. Due to the enactment of Tax Cuts and Jobs Act, the Company is subject to a tax on global intangible low-taxed income (“GILTI”). GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences including outside basis differences expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost, and therefore has included GILTI expense in its effective tax rate calculation for the year ended June 30, 2021. On March 27, 2020, The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted by the US Government in response to the COVID-19 pandemic. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act did not have a material impact to the consolidated financial statements as of June 30, 2021. During fiscal year ended June 30, 2021, the Company received acknowledgement of forgiveness of its paycheck protection program loan which is treated as tax-exempt income for US federal tax purposes. The Company has maintained an indefinite reinvestment assertion as of June 30, 2021. Accordingly, no deferred taxes related to withholding taxes or unrealized foreign currency gains or losses have been recorded. In assessing the ability to realize the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on these criteria, management believes it is more likely than not the Company will not realize the benefits of the federal, state, and foreign deductible differences. Accordingly, a full valuation allowance has been established. Temporary differences that give rise to a significant portion of deferred tax assets and deferred tax liabilities are as follows for the year ended June 30: For the Year Ended June 30, Deferred tax assets: 2021 2020 Net operating losses and credits $ 782 $ 487 Inventory valuation 144 121 Provision for bad debts - 785 Accrued vacation 12 37 Accrued expenses 134 188 Fixed asset basis 3 1 Investment in subsidiaries 77 277 Unrealized gain 4 24 Other 12 51 Total deferred tax assets $ 1,168 $ 1,971 Deferred tax liabilities: Depreciation (329 ) (359 ) Others (-) (76 ) Total deferred income tax liabilities $ (329 ) $ (435 ) Subtotal 839 1,536 Valuation allowance (622 ) (1,289 ) Net deferred tax assets $ 217 $ 247 Presented as follows in the balance sheets: Deferred tax assets 217 247 Deferred tax liabilities - - Net deferred tax assets $ 217 $ 247 The valuation allowance decreased by $667 and increased by $527 in fiscal years 2021 and 2020, respectively. At June 30, 2021, the Company had federal net operating loss carryforwards and state net operating loss carryforward of $1,248, which expire through 2033. These carryovers may be subject to limitations under I.R.C. Section 382. Management of the Company is uncertain whether it is more likely than not that these future benefits will be realized. Accordingly, a full valuation allowance was established. Generally, U.S. federal, state, and foreign authorities may examine the Company’s tax returns for three years, four years, and five years, respectively, from the date an income tax return is filed. However, the taxing authorities may continue to adjust the Company’s net operating loss carryforwards until the statute of limitations closes on the tax years in which the net operating losses are utilized. |
REVENUE
REVENUE | 12 Months Ended |
Jun. 30, 2021 | |
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 stand-alone 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 of product installation and training services are 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 renders 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. SSP 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 nonconformance 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 Topic 606, to identify the cumulative effect of applying ASC Topic 606 on the beginning retained earnings. The Company quantified the impact of the adoption on its financial position, results of operations and cash flow, and the impact was insignificant to the Company. The impact is primarily driven by the changes related to the accounting of standard warranty. Prior to adoption of ASC Topic 606, the Company accounted for the estimated warranty cost as a charge to costs of sales when revenue was recognized. Upon adoption of ASC Topic 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 collections may result in billed account receivables, unbilled receivables (contract assets), and customer advances and deposits (contract 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. Contract assets were recorded under other receivable while contract liabilities were recorded under accrued expenses in the balance sheet. The following table is the reconciliation of contract balances. June 30, June 30, 2021 2020 Trade Account Receivables 8,293 5,951 Accounts Payable 3,702 2,590 Contract Assets 337 216 Contract Liabilities 628 476 Remaining Performance Obligation As at June 30, 2021, the Company had $924 of remaining performance obligations, which represents our obligation to deliver products and services. Given the profile of contract terms, approximately 82.2% of this amount is expected to be recognized as revenue over the next two years, while the remaining amount is expected to be recognized between three and five years. Refer to note 18 “Business Segments” of the Notes to Consolidated Financial Statements for information related to revenue. Practical Expedients The Company applies the following practical expedients: ● The Company accounts for shipping and handling costs as activities to fulfill 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 | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | The Company adopted ASC Topic 260, Earnings Per Share. Options to purchase 674,500 shares of Common Stock at exercise prices ranging from $2.53 to $5.98 per share were outstanding as of June 30, 2021. 348,000 stock options were excluded in the computation of diluted EPS for fiscal year 2021 because they were anti-dilutive. Options to purchase 763,500 shares of Common Stock at exercise prices ranging from $2.53 to $5.98 per share were outstanding as of June 30, 2020. 410,000 (restated) stock options were excluded in the computation of diluted EPS for fiscal year 2020 because they were anti-dilutive. The following table is a reconciliation of the weighted average shares used in the computation of basic and diluted EPS for the years presented herein: For the Year Ended June 30, 2021 2020 (Restated) (Loss) / Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ (575 ) $ 879 Loss attributable to Trio-Tech International common shareholders from discontinued operations, net of tax $ (16 ) $ (1 ) Net (Loss) / income attributable to Trio-Tech International common shareholders (591 ) 878 Weighted average number of common shares outstanding - basic 3,768 3,673 Dilutive effect of stock options 117 53 Number of shares used to compute earnings per share - diluted 3,885 3,726 Basic (Loss) / Earnings per Share: Basic (loss) / earnings per share from continuing operations attributable to Trio-Tech International $ (0.16 ) $ 0.24 Basic loss per share from discontinued operations attributable to Trio-Tech International $ - $ - Basic (Loss) / Earnings per Share from net income attributable to Trio-Tech International $ (0.16 ) $ 0.24 Diluted (Loss) / Earnings per Share: Diluted (loss) / earnings per share from continuing operations attributable to Trio-Tech International $ (0.15 ) $ 0.24 Diluted loss per share from discontinued operations attributable to Trio-Tech International - - Diluted (Loss) / Earnings per Share from net income attributable to Trio-Tech International $ (0.15 ) $ 0.24 |
STOCK OPTIONS (RESTATED)
STOCK OPTIONS (RESTATED) | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS (RESTATED) | 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. The Company’s board of directors approved an amendment to the 2017 Directors Plan in September 2020 to increase the shares covered thereby from 300,000 shares to an aggregate of 600,000 shares, which amendment was approved by the Company’s shareholders at the annual meeting held in December 2020. 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: For the Year Ended June 30, 2021 2020 Expected volatility 40.89% to 69.03% 40.89% to 55.19% Risk-free interest rate 0.14% to 2.35% 0.30% to 2.35% Expected life (years) 2.5 -3.25 2.5 -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 twelve months ended June 30, 2021 and 2020 respectively. The observation period covered is consistent with the expected life of the 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 no 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 installments on the next three succeeding anniversaries of the grant date. The share-based compensation will be recognized in terms of the grade method on a straight-line basis for each separately vesting portion of the award. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2017 Employee Plan). The Company granted options to purchase 71,000 shares of its Common Stock to employees pursuant to the 2017 Employee Plan during the twelve months ended June 30, 2021. The weighted average grant-date fair value of stock options granted during the year ended June 30, 2021 was $1.88. The total fair value of vested employee stock options granted during the year ended June 30, 2021 was $39. There were no stock options exercised during the twelve months ended June 30, 2021. The Company recognized stock-based compensation expenses of $10 and $105 in the three and twelve months ended June 30, 2021, respectively under the 2017 Employee Plan. The balance of unamortized stock-based compensation of $71 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. The weighted average remaining contractual term for non-vested options was 2.00 years. As of June 30, 2021, there were vested employee stock options granted under the 2017 Employee Plan covering a total of 164,750 shares of Common Stock. The weighted average exercise price was $4.35, and the weighted average contractual term was 2.74 years. The total fair value of vested employee stock options as of June 30, 2021 was $268. The Company granted options to purchase 60,000 shares of its Common Stock to employees pursuant to the 2017 Employee Plan during the twelve months ended June 30, 2020. The weighted average grant-date fair value of stock options granted during the year ended June 30, 2020 was $0.85. The total fair value of vested employee stock options granted during the year ended June 30, 2020 was $16. There were no stock options exercised during the twelve months ended June 30, 2020. The Company recognized stock-based compensation expenses of $18* and $85* in the three and twelve months ended June 30, 2020, respectively under the 2017 Employee Plan. The balance of unamortized stock-based compensation of $54* 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. The weighted average remaining contractual term for non-vested options was 2.03 years. As of June 30, 2020, there were vested employee stock options granted under the 2017 Employee Plan covering a total of 98,000 shares of Common Stock. The weighted average exercise price was $4.44 and the weighted average contractual term was 3.41 years. The total fair value of vested employee stock options as of June 30, 2020 was $164*. A summary of option activities under the 2017 Employee Plan during the twelve-month period ended June 30, 2021 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2020 196,000 $ 3.92 3.72 $ 36 Granted 71,000 5.03 4.16 14 Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2021 267,000 4.21 3.22 290 Exercisable at June 30, 2021 164,750 4.35 2.74 173 A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2021 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2020 98,000 $ 1.79 Granted 71,000 1.88 Vested (66,750 ) 1.83 Forfeited - - Non-vested at June 30, 2021 102,250 $ 2.29 A summary of option activities under the 2017 Employee Plan during the twelve-month period ended June 30, 2020 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2019 136,000 $ 4.53 4.28 $ - Granted 60,000 2.53 2.73 36 Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2020 196,000 3.92 3.72 36 Exercisable at June 30, 2020 98,000 4.44 3.41 9 A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2020 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2019 87,000 $ 1.43 Granted 60,000 0.85 Vested (49,000 ) 1.51 Forfeited - - Non-vested at June 30, 2020 98,000 $ 1.79 2007 Employee Stock Option Plan The 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 2007 Employee Plan permitted the issuance of options to employees. There were 40,000 options exercised during the twelve months ended June 30, 2021. The Company recognized stock-based compensation expenses of $Nil in the twelve months ended June 30, 2021 under the 2007 Employee Plan. There were no options exercised during the twelve months ended June 30, 2020. The Company recognized stock-based compensation expenses of $Nil in the twelve months ended June 30, 2020 under the 2007 Employee Plan. As of June 30, 2021, there were vested employee stock options that were exercisable covering a total of 37,500 shares of Common Stock. The weighted average exercise price was $4.14 and the weighted average contractual term was 0.75 years. The total fair value of vested employee stock options as of June 30, 2021 was $61. As of June 30, 2020, there were vested employee stock options that were exercisable covering a total of 77,500 shares of Common Stock. The weighted average exercise price was $3.69 and the weighted average contractual term was 1.22 years. The total fair value of vested employee stock options as of June 30, 2020 was $120. A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2021, is presented as follows: Options Weighted Average Weighted Average Remaining Aggregate Outstanding at July 1, 2020 77,500 $ 3.69 1.22 $ Granted Exercised (40,000 ) 3.26 Forfeited or expired Outstanding at June 30, 2021 37,500 $ 4.14 0.75 $ Exercisable at June 30, 2021 37,500 $ 4.14 0.75 $ A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2020, is presented as follows: Options Weighted Average Weighted Average Remaining Aggregate Outstanding at July 1, 2019 77,500 $ 3.69 2.22 $ Granted Exercised Forfeited or expired Outstanding at June 30, 2020 77,500 $ 3.69 1.22 $ Exercisable at June 30, 2020 77,500 $ 3.69 1.22 $ A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2021, is presented below: Weighted Average Grant-Date Options Fair Value Non-vested at July 1, 2020 - $ - Granted - - Vested - - Forfeited - - Non-vested at June 30, 2021 - $ - A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2020, is presented below: Weighted Average Grant-Date Options Fair Value Non-vested at July 1, 2019 9,375 $ 1.22 Granted - - Vested (9,375 ) 1.22 Forfeited - - Non-vested at June 30, 2020 - $ - 2017 Directors Equity Incentive Plan The 2017 Directors Plan initially covered an aggregate of 300,000 shares of the Company’s common stock. The Company’s board of directors approved an amendment to the 2017 Directors Plan in September 2020 to increase the shares covered thereby from 300,000 shares to an aggregate of 600,000 shares, which amendment was approved by the Company’s shareholders at the annual meeting held in December 2020. The 2017 Directors Plan permits the grant of options to its directors in the form of non-qualified options and restricted stock. The exercise price of the non-qualified options is required to be 100% of the fair value of the underlying shares on the grant date. The options have five-year contractual terms and are exercisable immediately as of the grant date. In the fiscal year ended June 30, 2021, 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 $143 based on the fair value of $1.79 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 June 30, 2021. There were no options exercised during the twelve months ended June 30, 2021. The Company recognized stock-based compensation expenses of $143 in the twelve months ended June 30, 2021 under the 2017 Directors Plan. In the fiscal year ended June 30, 2020, 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 $61 based on the fair value of $0.76 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 June 30, 2020. There were no options exercised during the twelve months ended June 30, 2020. The Company recognized stock-based compensation expenses of $61 in the twelve months ended June 30, 2020, under the 2017 Directors Plan. A summary of option activities under the 2017 Directors Plan during the twelve months ended June 30, 2021, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2020 240,000 $ 3.93 3.75 $ 48 Granted 80,000 5.27 4.64 - Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2021 320,000 4.27 3.22 340 Exercisable at June 30, 2021 320,000 4.27 3.22 340 A summary of option activities under the 2017 Directors Plan during the twelve months ended June 30, 2020, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2019 160,000 $ 4.63 4.25 $ - Granted 80,000 2.53 4.73 48 Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2020 240,000 3.93 3.75 48 Exercisable at June 30, 2020 240,000 3.93 3.75 48 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 2007 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 nonqualified options and restricted stock. The exercise price of the nonqualified 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. As the 2007 Directors plan terminated in fiscal 2018, the Company did not grant any options pursuant to the 2007 Director Plan during the twelve months ended June 30, 2021. There were 200,000 stock options exercised during the twelve-month ended June 30, 2021. The Company did not recognize any stock-based compensation expenses during the twelve months ended June 30, 2021. There were 50,000 stock options expired, while no stock options were exercised during the twelve-month ended June 30, 2020. The Company did not recognize any stock-based compensation expenses during the twelve-month ended June 30, 2020. As of June 30, 2021, there were vested director stock options covering a total of 50,000 shares of Common Stock. The weighted average exercise price was $4.14 and the weighted average remaining contractual term was 0.75 years. The total fair value of vested directors' stock options as of June 30, 2021 was $72. All director stock options vest immediately at the date of grant. There were no unvested director stock options as of June 31, 2021. As of June 30, 2020, there were vested director stock options covering a total of 250,000 shares of Common Stock. The weighted average exercise price was $3.32 and the weighted average remaining contractual term was 0.83 years. The total fair value of vested directors' stock options as of June 30, 2020 was $301. All director stock options vest immediately at the date of grant. There were no unvested director stock options as of June 30, 2020. A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2021, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2020 250,000 3.32 0.83 22 Granted - - - - Exercised (200,000 ) 3.12 - - Forfeited or expired - - - - Outstanding at June 30, 2021 50,000 4.14 0.75 45 Exercisable at June 30, 2021 50,000 4.14 0.75 45 A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2020, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2019 300,000 3.40 1.58 9 Granted - - - - Exercised - - - - Forfeited or expired (50,000 ) 3.81 - - Outstanding at June 30, 2020 250,000 3.32 0.83 22 Exercisable at June 30, 2020 250,000 3.32 0.83 22 |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | Company as Lessor Operating leases under which the Company is the lessor arise from leasing the Company’s commercial real estate investment property to third parties. Initial lease terms generally range from 12 to 60 months. Depreciation expense for assets subject to operating leases is taken into account primarily on the straight-line method over a period of twenty years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expenses relating to the property held as investments in operating leases were $72 and $67 for the years ended June 30, 2021 and 2020, respectively. Future minimum rental income in China and Thailand to be received from fiscal year 2022 to fiscal year 2023 on non-cancellable operating leases is contractually due as of June 30, 2021, as follows: 2022 $ 145 2023 $ 16 $ 161 Future minimum rental income in China and Thailand to be received from fiscal year 2021 to fiscal year 2022 on non-cancellable operating leases is contractually due as of June 30, 2020, as follows: 2021 $ 120 2022 $ 114 $ 234 Sales-type lease which the Company is the lessor arise from lease of four units Chiller System. The Company classifies its lease arrangements at inception of the arrangement. The lease term is 3 years, contains an automatic transfer of title at the end of the lease term and a guarantee of residual value at the end of the lease term. The customer is required to pay for executory cost such as taxes. Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales of four units of chiller systems are as follows: June 30, Components of Lease Balances 2021 Assets Gross financial sales receivable $ 65 Unearned finance income (7 ) Financed Sales Receivable $ 58 Net financed sales receivables due within one year $ 19 Net financed sales receivables due after one year $ 39 As of June 30, 2021, the financed sale receivables had a weighted average effective interest rate of 13.2% and weighted average remaining lease term of 2.75 years. Company as Lessee The Company has operating leases for corporate offices and research and development facilities with remaining lease terms of one year to three years and finance leases for plant and equipment. Supplemental balance sheet information related to leases is as follows (in thousands): June 30, Components of Lease Balances Classification 2021 Assets Operating lease assets Right-of-use asset-operating, net $ 1,876 Finance lease assets Property, plant & equipment 1,413 Accumulated amortization Right-of-use asset (1,199 ) Assets Property, plant & equipment $ 214 Total Leased Assets $ 2,090 Liabilities Operating Lease Liabilities Current portion Current portion of lease liability- operating $ 672 Long-term portion Lease liability- operating, net of current portion 1,204 Total Operating Lease Liabilities $ 1,876 Finance Lease Liabilities Current portion of finance leases Current portion of lease liability- finance $ 197 Net of current portion of finance leases Lease liability- finance, net of current portion 253 Total Finance Lease Liabilities $ 450 Total Lease Liabilities $ 2,326 3 Months Ended 12 Months Ended Lease Cost June 30, 2021 Finance lease cost: Interest on lease liabilities 7 $ 42 Amortization of right-of-use asset 74 334 Total Finance Lease Cost 81 376 Operating Lease Costs $ 199 $ 765 Other information related to leases was as follows (in thousands except lease term and discount rate): June 30, 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ (40 ) Operating cash flows from operating leases $ (764 ) Right-of-use assets obtained in exchange for new operating lease liabilities $ 932 Weighted average remaining lease term (years): Finance leases 2.72 Operating leases 3.09 Weighted average discount rate: Finance leases 3.56 Operating leases 4.60 As of June 30, 2021, the maturities of the Company's operating and finance lease liabilities were as follow: Operating Lease Liabilities Finance Lease Liabilities Fiscal Year 2022 748 218 2023 537 137 2024 313 111 2025 291 22 Thereafter 156 - Total future minimum lease payments $ 2,045 $ 488 Less: amount representing interest (169 ) (38 ) Present value of net minimum lease payments 1,876 450 Presentation on statement of financial position Current $ 672 $ 197 Non-Current $ 1,204 $ 253 As of June 30, 2020, the maturities of the Company's operating and finance lease liabilities were as follows: Operating Lease Liabilities Finance Lease Liabilities Fiscal Year 2021 509 265 2022 317 211 2023 168 133 2024 - 107 Thereafter - 20 Total future minimum lease payments $ 994 $ 736 Less: amount representing interest (50 ) (70 ) Present value of net minimum lease payments 944 666 Presentation on statement of financial position Current $ 477 $ 231 Non-Current $ 467 $ 435 |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | In accordance with the provisions of ASC Topic 810, the Company has classified the noncontrolling interest as a component of stockholders’ equity in the accompanying consolidated balance sheets. Additionally, the Company has presented the net income attributable to the Company and the noncontrolling ownership interests separately in the accompanying consolidated financial statements. Noncontrolling interest represents the minority stockholders’ share of 45% of the equity of Trio-Tech Malaysia Sdn. Bhd., 45% interest in SHI International Pte. Ltd., and 24% interest in Prestal Enterprise Sdn. Bhd., which are subsidiaries of the Company. The table below reflects a reconciliation of the equity attributable to noncontrolling interest: For the Year Ended June 30, Noncontrolling interest 2021 2020 Beginning balance $ 1,180 $ 1,195 Net (loss)/ income (564 ) 238 Dividend declared by a subsidiary (189 ) (235 ) Translation adjustment (8 ) (18 ) Ending balance $ 419 $ 1,180 |
PAYCHECK PROTECTION PROGRAM LOA
PAYCHECK PROTECTION PROGRAM LOAN | 12 Months Ended |
Jun. 30, 2021 | |
Loans Payable [Abstract] | |
PAYCHECK PROTECTION PROGRAM LOAN | The Coronavirus Aid, Relief, and Economic Security (CARES) Act created the Paycheck Protection Program (PPP) to provide certain small businesses with liquidity to support their operations during the COVID-19 pandemic. The PPP is a loan program designed to provide a direct incentive for small businesses to keep their employees on payroll. The loans have a 1% fixed interest rate and are due in two years with payment deferred for the first six months. However, they are eligible for forgiveness (in full or in part, including any accrued interest) under certain conditions and are subject to audit by the U.S. government. The loans will be forgiven if In May 2020, the Company received loan proceeds in the amount of approximately $121 under the PPP. The Company accounted for the PPP loan as a financial liability in accordance with Accounting Standards Codification (ASC) 470 Debt Under ASC 470, the Company recognizes a liability for the full amount of PPP proceeds received and accrues interest over the term of the loan. No additional interest was imputed at a market rate because the guidance on imputing interest in ASC 835-30 excludes transactions where interest rates are prescribed by a government agency. If any amount is ultimately forgiven (i.e., the Company is legally released from being the loan’s primary obligor in accordance with ASC 405-20), income from the extinguishment of the liability would be recognized in the income statement as a gain on loan extinguishment. The Company intended to use the proceeds for purposes consistent with the PPP. Hence, the Company expects that its use of the loan proceeds will meet the conditions for forgiveness of the loan. During fiscal 2021, the Company received approval from the Small Business Administration (SBA) that the full loan of $121 had been forgiven. The forgiveness of the PPP loan has been included as a separate line under disclosure note Other income, net. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation - 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 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 consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP’’). The basis of accounting differs from that used in the statutory financial statements of the Company’s subsidiaries and equity investee companies, which are prepared in accordance with the accounting principles generally accepted in their respective countries of incorporation. In the opinion of management, the consolidated financial statements have reflected all costs incurred by the Company and its subsidiaries in operating the business. All dollar amounts in the consolidated financial statements and in the notes herein are presented in thousands of United States dollars (US$’000) unless otherwise designated. |
Liquidity | Liquidity |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The Company translates assets and liabilities of its subsidiaries outside the U.S. into U.S. dollars using the rate of exchange prevailing at the fiscal year end, and the consolidated statements of operations and comprehensive income or loss is translated at average rates during the reporting period. Adjustments resulting from the translation of the subsidiaries’ financial statements from foreign currencies into U.S. dollars are recorded in shareholders' equity as part of accumulated other comprehensive gain - translation adjustments. Gains or losses resulting from transactions denominated in currencies other than functional currencies of the Company’s subsidiaries are reflected in income for the reporting period. |
Use of Estimates | Use of Estimates — |
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers We apply a five-step approach as defined in ASC Topic 606 in determining the amount and timing of revenue to be recognized: (1) identifying the contract with customer; (2) identifying the performance obligations in the contracts; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. Revenue derived from testing services is recognized when testing services are rendered. Revenue generated from sale of products in the manufacturing and distribution segments are recognized when persuasive evidence of an arrangement exists, delivery of the products has occurred, customer acceptance has been obtained (which means the significant risks and rewards of ownership have been transferred to the customer), the price is fixed or determinable and collectability is reasonably assured. Certain customers can request for installation and training services to be performed for certain products sold in the manufacturing segment. These services are mainly for helping customers with the test runs of the machines sold and are considered a separate performance obligation. Such services can be provided by other entities as well and these do not significantly modify the product. The Company recognizes the revenue at point in time when the Company has satisfied its performance obligation. In the real estate segment: (1) revenue from property development is earned and recognized on the earlier of the dates when the underlying property is sold or upon the maturity of the agreement; if this amount is uncollectible, the agreement empowers the repossession of the property, and (2) rental revenue is recognized on a straight-line basis over the terms of the respective leases. This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue is commenced when the tenant assumes possession of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. |
GST / Indirect Taxes | GST / Indirect Taxes |
Trade accounts Receivable and Allowance for Doubtful Accounts | Trade Account Receivables and Allowance for Doubtful Accounts — The Company’s management considers the following factors when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. The Company includes any account balances that are determined to be uncollectible, along with a general reserve, in the overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to management, the Company believed that its allowance for doubtful accounts was adequate as of June 30, 2021 and 2020. |
Warranty Costs | Warranty Costs — |
Cash and Cash Equivalents | Cash and Cash Equivalents — |
Term Deposits and Restricted Term Deposits | Term Deposits — Restricted Term Deposits — |
Inventories | Inventories |
Property, Plant and Equipment & Investment Property | Property, Plant and Equipment and Investment Properties Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and improvements to the assets are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the consolidated statements of operations and comprehensive income or loss. |
Long-Lived Assets and Impairment | Long-Lived Assets and Impairment – The Company evaluates the long-lived assets, including property, plant and equipment and investment property, for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for our business, significant negative industry or economic trends, and a significant decline in the stock price for a sustained period of time. Impairment is recognized based on the difference between the fair value of the asset and its carrying value, and fair value is generally measured based on discounted cash flow analysis, if there is significant adverse change. The Company applies the provisions of ASC Topic 360, Accounting for the Impairment or Disposal of Long-Lived Assets |
Leases | Leases - Company as Lessee Accounting Standards Codification Topic 842 ("ASC Topic 842") introduced new requirements to increase transparency and comparability among organizations for leasing transactions for both lessees and lessors. It requires a lessee to record a right-of-use asset and a lease liability for all leases with terms longer than 12 months. These leases will be either finance or operating, with classification affecting the pattern of expense recognition. The Company applies the guidance in ASC Topic 842 to its individual leases of assets. When the Company receives substantially all of the economic benefits from and directs the use of specified property, plant and equipment, the transactions give rise to leases. The Company’s classes of assets include real estate leases. Operating leases are included in operating lease right-of-use ("ROU") assets under the noncurrent asset portion of our consolidated balance sheets and under this current portion and noncurrent liabilities portion of our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the related lease. Finance leases are included in property, plant and equipment under the noncurrent asset portion of our consolidated balance sheets and under the current portion and noncurrent liabilities portion of our consolidated balance sheets. The Company has elected the practical expedient within ASC Topic 842 to not separate lease and non-lease components within lease transactions for all classes of assets. Additionally, the Company has elected the short-term lease exception for all classes of assets, does not apply the recognition requirements for leases of 12 months or less, and recognizes lease payments for short-term leases as expense either straight-line over the lease term or as incurred depending on whether the lease payments are fixed or variable. These elections are applied consistently for all leases. As part of applying the transition method, the Company has elected to apply the package of transition practical expedients within the new guidance. As required by the new standard, these expedients have been elected as a package and are consistently applied across the Company’s lease portfolio. Given this election, the Company need not reassess: ● whether any expired or existing contracts are or contain leases; ● the lease classification for any expired or existing leases; ● treatment of initial direct costs relating to any existing leases. When discount rates implicit in leases cannot be readily determined, the Company uses the applicable incremental borrowing rate at lease commencement to perform lease classification tests on lease components and to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate over a similar term. At each reporting period when there is a new lease initiated, the rates established for that quarter will be used. Leases - Company as Lessor All of the leases under which the Company is the lessor will continue to be classified as operating leases and sales-type lease under the new standard The new standard did not have a material effect on our consolidated financial statements and will not have a significant change in our leasing activities. |
Comprehensive Income or Loss | Comprehensive Income or Loss — Reporting Comprehensive Income, |
Income Taxes | Income Taxes — Accounting for Income Taxes . The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The Company recognizes potential liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. |
Retained Earnings | Retained Earnings — |
Research and Development Costs | Research and Development Costs — |
Stock Based Compensation | Stock-based compensation Determining the fair value of stock-based awards at the grant date requires significant judgement. The determination of the grant date fair value of stock-based awards using the Black-Scholes option-pricing model is affected by our estimated common stock fair value as well as other subjective assumptions including the expected term of the awards, the expected volatility over the expected term of the awards, expected dividend yield and risk-free interest rates. The assumptions used in our option-pricing model represent management’s best estimates and are as follows: ● Fair Value of Common Stock. We determined the fair value of each share of underlying common stock based on the closing price of our common stock on the date of grant. ● Expected Term. The expected term of employee stock options reflects the period for which we believe the option will remain outstanding based on historical experience and future expectations. ● Expected Volatility. We base expected volatility on our historical information over a similar expected term. |
Earnings per Share | Earnings per Share — |
Fair Values of Financial Instruments | Fair Values of Financial Instruments ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The financial assets and financial liabilities that require recognition under the guidance include available-for-sale investments, employee deferred compensation plan and foreign currency derivatives. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. As such, fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. The hierarchy is broken down into three levels based on the reliability of inputs as follows: ● Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Financial assets utilizing Level 1 inputs include U.S. treasuries, most money market funds, marketable equity securities and our employee deferred compensation plan; ● Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, directly or indirectly. Financial assets and liabilities utilizing Level 2 inputs include foreign currency forward exchange contracts, most commercial paper and corporate notes and bonds; and ● Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
Concentration of Credit Risk | Concentration of Credit Risk |
Investments | Investments |
Equity Method | Equity Method |
Cost Method | Cost Method |
Loan Receivables from Property Development Projects | Loan Receivables from Property Development Projects Interest income on the loan receivables from property development projects are recognized on an accrual basis. Discounts and premiums on loans are amortized to income using the interest method over the remaining period to contractual maturity. The amortization of discounts into income is discontinued on loans that are contractually 90 days past due or when collection of interest appears doubtful. |
Contingent liabilities | Contingent Liabilities If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
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 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 |
RESTATEMENTS (Tables)
RESTATEMENTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Restatements Disclosure Abstract | |
Restatements | For the year ended June 30, 2020 (as previously reported) For the year ended June 30, 2020 (Restated) CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) Paid-in capital 3,363 3,984 Accumulated retained earnings 8,036 7,415 Total Trio-tech International shareholders' equity 23,966 23,966 TOTAL EQUITY 25,146 25,146 For the year ended June 30, 2020 (as previously reported) For the year ended June 30, 2020 (Restated) CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY Accumulated retained earnings $ 8,036 $ 7,415 Paid-in capital 3,363 3,984 For the year ended June 30, 2020 (as previously reported) For the year ended June 30, 2020 (Restated) CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) General and administrative expenses $ 6,976 $ 7,054 Total operating expenses 8,125 8,213 Loss from operation (859 ) (947 ) Income from Continuing Operations before Income Taxes 1,195 1,107 Income from continuing operations before non-controlling interests, net of tax 1,207 1,119 NET INCOME 1,204 1,116 Net Income Attributable to Trio-Tech International Common Shareholders 966 878 Basic Earnings per Share: Basic earnings per share from continuing operations attributable to Trio-Tech International 0.26 0.24 Diluted Earnings per Share: Diluted earnings per share from continuing operations attributable to Trio-Tech International 0.26 0.24 |
TERM DEPOSITS (Tables)
TERM DEPOSITS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
Term deposits | June 30, 2021 June 30, 2020 Short-term deposits $ 6,353 $ 7,028 Currency translation effect on short-term deposits 298 (190 ) Total short-term deposits 6,651 6,838 Restricted term deposits 1,682 1,712 Currency translation effect on restricted term deposits 59 (52 ) Total restricted term deposits 1,741 1,660 Total term deposits $ 8,392 $ 8,498 |
TRADE ACCOUNTS RECEIVABLE AND_2
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Changes in the allowance for doubtful accounts | For the Year Ended June 30, 2021 2020 Beginning $ 314 $ 263 Additions charged to expenses 5 351 Recovered (14 ) (284 ) Write-off (16 ) (9 ) Currency translation effect 22 (7 ) Ending $ 311 $ 314 |
LOAN RECEIVABLE FROM PROPERTY D
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Companys loans receivable from property development projects | Loan Expiry Loan Amount Loan Amount Date (RMB) (U.S. Dollars) Short-term loan receivables JiangHuai (Project - Yu Jin Jiang An) May 31, 2013 2,000 309 Less: allowance for doubtful receivables (2,000 ) (309 ) Net loan receivable from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 773 Less: transfer – down payment for purchase of investment property (5,000 ) (773 ) Net loan receivable from property development projects - - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | For the Year Ended June 30, 2021 2020 Raw materials $ 1,152 $ 1,281 Work in progress 1,218 968 Finished goods 325 422 Less: provision for obsolete inventories (679 ) (678 ) Currency translation effect 64 (71 ) $ 2,080 $ 1,922 |
Changes in provision for obsolete inventory | For the Year Ended June 30, 2021 2020 Beginning $ 678 $ 673 Additions charged to expenses 13 26 Usage - disposition (28 ) (8 ) Currency translation effect 16 (13 ) Ending $ 679 $ 678 |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Investments [Abstract] | |
Companys investment in the property based on the exchange rate | The following table presents the Company’s investment in properties in China as of June 30, 2021. The exchange rate is based on the market rate as of June 30, 2021. Investment Date / Reclassification Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I – MaoYe 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 - FuLi Apr 08, 2010 4,025 648 Currency translation - (36 ) Gross investment in rental property 9,649 1,493 Accumulated depreciation on rental property June 30, 2021 (7,040 ) (1,079 ) Reclassified as “Assets held for sale” July 01, 2018 2,822 410 Reclassification from “Assets held for sale” Mar 31, 2019 (1,029 ) (143 ) (5,247 ) (812 ) Net investment in property – China 4,402 681 The following table presents the Company’s investment in properties in China as of June 30, 2020. The exchange rate is based on the market rate as of June 30, 2020. Investment Date / Reclassification Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I – MaoYe 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 - FuLi Apr 08, 2010 4,025 648 Currency translation - (166 ) Gross investment in rental property 9,649 1,363 Accumulated depreciation on rental property June 30, 2020 (6,558 ) (940 ) Reclassified as “Assets held for sale” July 01, 2018 2,822 410 Reclassification from “Assets held for sale” Mar 31, 2019 (1,029 ) (143 ) (4,765 ) (673 ) Net investment in property – China 4,884 690 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Estimated Useful Life in Years June 30, June 30, Building and improvements 3-20 $ 5,141 $ 5,102 Leasehold improvements 3-27 6,174 6,170 Machinery and equipment 3-7 26,804 26,578 Furniture and fixtures 3-5 1,170 1,134 Equipment under finance leases 3-5 1,413 1,066 Property, plant and equipment, gross $ 40,702 $ 40,050 Less: accumulated depreciation (28,751 ) (27,148 ) Accumulated amortization on equipment under finance leases (1,199 ) (719 ) Total accumulated depreciation $ (29,950 ) $ (27,867 ) Property, plant and equipment before currency translation effect, net 10,752 12,183 Currency translation effect (1,221 ) (1,873 ) Property, plant and equipment, net $ 9,531 $ 10,310 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Other Assets [Abstract] | |
Other assets | June 30, June 30, 2021 2020 Down payment for purchase of investment properties* $ - $ 1,645 Down payment for purchase of property, plant and equipment 372 8 Deposits for rental and utilities and others 160 171 Currency translation effect (270 ) (215 ) Total $ 262 $ 1,609 *Down payment for purchase of investment properties included: RMB U.S. Dollars Original Investment (10% of Junzhou equity) $ 10,000 $ 1,606 Less: Management Fee (5,000 ) (803 ) Net Investment 5,000 803 Less: Share of Loss on Joint Venture (137 ) (22 ) Net Investment as Down Payment (Note *a) 4,863 781 Loans Receivable 5,000 814 Interest Receivable 1,250 200 Less: Impairment of Interest (906 ) (150 ) Transferred to Down Payment (Note *b) 5,344 864 * Down Payment for Purchase of Investment Properties 10,207 1,645 Less: Provision of Impairment loss on other assets (10,207 ) (1,645 ) Down Payment for Purchase of Investment Properties - - |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Line of Credit Facility [Abstract] | |
Lines of credit | As of June 30, 2021, the Company had certain lines of credit that are collateralized by restricted deposits. Entity with Type of Interest Expiration Credit Unused Facility Facility Rate Date Limitation Credit Trio-Tech International Pte. Ltd., Singapore Lines of Credit Ranging from 1.85% to 5.5%, SIBOR rate +1.2% and LIBOR rate +1.25% - $ 4,237 $ 4,237 Universal (Far East) Pte. Ltd., Singapore Lines of Credit Ranging from 1.85% to 5.5% - $ 1,115 $ 1,043 Trio-Tech Malaysia Sdn. Bhd., Malaysia Revolving Credit Cost of Funds Rate +2% - $ 361 $ 361 As of June 30, 2020, the Company had certain lines of credit that are collateralized by restricted deposits. Entity with Type of Interest Expiration Credit Unused Facility Facility Rate Date Limitation Credit Trio-Tech International Pte. Ltd., Singapore Lines of Credit Ranging from 1.85% to 5.5%, SIBOR rate +1.25% and LIBOR rate +1.30% - $ 4,806 $ 4,806 Universal (Far East) Pte. Ltd., Singapore Lines of Credit Ranging from 1.85% to 5.5% - $ 359 $ 187 Trio-Tech Malaysia Sdn. Bhd., Malaysia Revolving Credit Cost of Funds Rate +2% - $ 350 $ 350 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued expenses | Accrued expenses consisted of the following: For the Year Ended June 30, 2021 2020 (Restated) Payroll and related costs 1,362 1,185 Commissions 51 104 Customer deposits 45 30 Legal and audit 321 315 Sales tax 9 19 Utilities 91 80 Warranty 14 12 Accrued purchase of materials and property, plant and equipment 144 186 Provision for reinstatement 290 300 Deferred income 67 88 Contract liabilities 628 476 Other accrued expenses 279 287 Currency translation effect 62 (77 ) Total $ 3,363 $ 3,005 |
WARRANTY ACCRUAL (Tables)
WARRANTY ACCRUAL (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Warranty Accrual | |
Warranty liability | For the Year Ended June 30, 2021 2020 Beginning $ 12 $ 39 Additions charged to cost and expenses 7 1 Utilization (4 ) (27 ) Currency translation effect (1 ) (1 ) Ending $ 14 $ 12 |
BANK LOANS PAYABLE (Tables)
BANK LOANS PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Loans Payable [Abstract] | |
Bank loans payable | June 30, 2021 June 30, 2020 Note payable denominated in RM for expansion plans in Malaysia, maturing in August 2024, bearing interest at the bank’s prime rate less 2.00% (3.60% and 3.85% at June 30, 2021 and June 30, 2020) per annum, respectively, with monthly payments of principal plus interest through August 2028, collateralized by the acquired building with a carrying value of $2,579 and $2,543, as at June 30, 2021 and June 30, 2020, respectively. $ 1,885 $ 2,206 Financial arrangement at fixed interest rate 3.2% per annum with monthly payments of principal plus interest through July 2025 $ 175 - Total bank loans payable 2,060 2,206 Current portion of bank loans payable 428 384 Currency translation effect on current portion of bank loans 11 (14 ) Current portion of bank loans payable 439 370 Long term portion of bank loans payable 1,564 1,911 Currency translation effect on long-term portion of bank loans 57 (75 ) Long term portion of bank loans payable $ 1,621 $ 1,836 |
Future minimum payments | Future minimum payments (excluding interest) as of June 30, 2021, were as follows: 2022 $ 439 2023 457 2024 462 2025 208 2026 171 Thereafter 323 Total obligations and commitments $ 2,060 Future minimum payments (excluding interest) as of June 30, 2020, were as follows: 2021 $ 370 2022 384 2023 400 2024 403 2025 158 Thereafter 491 Total obligations and commitments $ 2,206 |
CONCENTRATION OF CUSTOMERS (Tab
CONCENTRATION OF CUSTOMERS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration of customers | For the Year Ended June 30, 2021 2020 Revenue Customer A 37.7 % 38.4 % Customer B 9.7 % 17.6 % Trade Account Receivables Customer A 34.7 % 40.6 % Customer B 11.8 % 6.3 % |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business segments | Year Operating Depr. Ended Net Income Total and Capital June 30, Revenue (Loss) Assets Amort. Expenditures Manufacturing 2021 $ 13,151 $ 376 $ 13,622 $ 411 $ 350 2020 $ 11,605 $ (326 ) $ 9,807 $ 346 $ 134 Testing Services 2021 13,846 (997 ) 21,099 2,570 762 2020 14,840 (1,040 ) 21,086 2,578 834 Distribution 2021 5,437 657 1,156 4 - 2020 7,958 751 875 100 - Real Estate 2021 28 (116 ) 2,070 74 2020 62 (97 ) 3,587 76 Fabrication 2021 - - - - - Services* 2020 - - 27 - - Corporate & 2021 - (10 ) 359 - Unallocated 2020 (Restated) - (235 ) 278 - Total Company 2021 $ 32,462 $ (70 ) $ 38,306 $ 3,059 $ 1,112 2020 $ 34,465 $ (947 ) $ 35,660 $ 3,100 $ 1,017 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other income | For the Year Ended June 30, 2021 2020 Interest income 118 177 Other rental income 100 110 Exchange loss (69 ) (35 ) Bad debt recovery/ (expense) 9 (59 ) Extinguishment of PPP loan 121 - Dividend income 32 - Other miscellaneous income 52 141 Total $ 363 $ 334 |
GOVERNMENT GRANTS (Tables)
GOVERNMENT GRANTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Government Grants | |
Government grants | For the Year Ended June 30, 2021 2020 Government grants 514 778 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income before provision for income taxes | For the Year Ended June 30, 2021 2020 United States (53 ) (740 ) International (846 ) 1,847 Total $ (899 ) $ 1,107 |
Components of income tax provision (benefits) | For the Year Ended June 30, 2021 2020 Current: Federal $ 13 $ (1 ) State 2 2 Foreign 352 212 $ 367 $ 213 Deferred: Federal $ - $ - State - - Foreign (139 ) (225 ) (139 ) (225 ) Total provisions $ 228 $ (12 ) |
Reconciliation of income tax rate | For the Year Ended June 30, 2021 2020 Statutory federal tax rate 21.00 % 21.00 % State taxes, net of federal benefit (0.41 ) (0.50 ) Permanent items and credits 4.1 13.95 Foreign rate differential 74.02 (33.86 ) Other 0.67 2.14 Changes in valuation allowance (74.02 ) (3.73 ) Tax reform related to one-time repatriation tax - - Effective rate 25.36 % (1.00 )% |
Deferred income tax assets (liabilities) | For the Year Ended June 30, Deferred tax assets: 2021 2020 Net operating losses and credits $ 782 $ 487 Inventory valuation 144 121 Provision for bad debts - 785 Accrued vacation 12 37 Accrued expenses 134 188 Fixed asset basis 3 1 Investment in subsidiaries 77 277 Unrealized gain 4 24 Other 12 51 Total deferred tax assets $ 1,168 $ 1,971 Deferred tax liabilities: Depreciation (329 ) (359 ) Others (-) (76 ) Total deferred income tax liabilities $ (329 ) $ (435 ) Subtotal 839 1,536 Valuation allowance (622 ) (1,289 ) Net deferred tax assets $ 217 $ 247 Presented as follows in the balance sheets: Deferred tax assets 217 247 Deferred tax liabilities - - Net deferred tax assets $ 217 $ 247 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Revenue | |
Contract assets and liabilities | June 30, June 30, 2021 2020 Trade Account Receivables 8,293 5,951 Accounts Payable 3,702 2,590 Contract Assets 337 216 Contract Liabilities 628 476 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of the weighted average shares | For the Year Ended June 30, 2021 2020 (Restated) (Loss) / Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ (575 ) $ 879 Loss attributable to Trio-Tech International common shareholders from discontinued operations, net of tax $ (16 ) $ (1 ) Net (Loss) / income attributable to Trio-Tech International common shareholders (591 ) 878 Weighted average number of common shares outstanding - basic 3,768 3,673 Dilutive effect of stock options 117 53 Number of shares used to compute earnings per share - diluted 3,885 3,726 Basic (Loss) / Earnings per Share: Basic (loss) / earnings per share from continuing operations attributable to Trio-Tech International $ (0.16 ) $ 0.24 Basic loss per share from discontinued operations attributable to Trio-Tech International $ - $ - Basic (Loss) / Earnings per Share from net income attributable to Trio-Tech International $ (0.16 ) $ 0.24 Diluted (lLss) / Earnings per Share: Diluted (loss) / earnings per share from continuing operations attributable to Trio-Tech International $ (0.15 ) $ 0.24 Diluted loss per share from discontinued operations attributable to Trio-Tech International - - Diluted (Loss) / Earnings per Share from net income attributable to Trio-Tech International $ (0.15 ) $ 0.24 |
STOCK OPTIONS (RESTATED) (Table
STOCK OPTIONS (RESTATED) (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Fair value weighted average assumptions | For the Year Ended June 30, 2021 2020 Expected volatility 40.89% to 69.03% 40.89% to 55.19% Risk-free interest rate 0.14% to 2.35% 0.30% to 2.35% Expected life (years) 2.5-3.25 2.5 -3.25 |
2017 Employee Plan | |
Option activities | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2020 196,000 $ 3.92 3.72 $ 36 Granted 71,000 5.03 4.16 14 Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2021 267,000 4.21 3.22 290 Exercisable at June 30, 2021 164,750 4.35 2.74 173 Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2019 136,000 $ 4.53 4.28 $ - Granted 60,000 2.53 2.73 36 Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2020 196,000 3.92 3.72 36 Exercisable at June 30, 2020 98,000 4.44 3.41 9 |
Company's non-vested employee stock options | Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2020 98,000 $ 1.79 Granted 71,000 1.88 Vested (66,750 ) 1.83 Forfeited - - Non-vested at June 30, 2021 102,250 $ 2.29 Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2019 87,000 $ 1.43 Granted 60,000 0.85 Vested (49,000 ) 1.51 Forfeited - - Non-vested at June 30, 2020 98,000 $ 1.79 |
2007 Employee Plan | |
Option activities | A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2021, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2020 77,500 $ 3.69 1.22 $ - Granted - - - - Exercised (40,000 ) 3.26 - - Forfeited or expired - - - - Outstanding at June 30, 2021 37,500 $ 4.14 0.75 $ - Exercisable at June 30, 2021 37,500 $ 4.14 0.75 $ - A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2020, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2019 77,500 $ 3.69 2.22 $ - Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2020 77,500 $ 3.69 1.22 $ - Exercisable at June 30, 2020 77,500 $ 3.69 1.22 $ - |
Company's non-vested employee stock options | A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2021, is presented below: Weighted Average Grant-Date Options Fair Value Non-vested at July 1, 2020 - $ - Granted - - Vested - - Forfeited - - Non-vested at June 30, 2021 - $ - A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2020, is presented below: Weighted Average Grant-Date Options Fair Value Non-vested at July 1, 2019 9,375 $ 1.22 Granted - - Vested (9,375 ) 1.22 Forfeited - - Non-vested at June 30, 2020 - $ - |
2017 Directors Equity Incentive Plan | |
Option activities | A summary of option activities under the 2017 Directors Plan during the twelve months ended June 30, 2021, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2020 240,000 $ 3.93 3.75 $ 48 Granted 80,000 5.27 4.64 - Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2021 320,000 4.27 3.22 340 Exercisable at June 30, 2021 320,000 4.27 3.22 340 A summary of option activities under the 2017 Directors Plan during the twelve months ended June 30, 2020, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2019 160,000 $ 4.63 4.25 $ - Granted 80,000 2.53 4.73 48 Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2020 240,000 3.93 3.75 48 Exercisable at June 30, 2020 240,000 3.93 3.75 48 |
2007 Directors Equity Incentive Plan | |
Option activities | A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2021, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2020 250,000 3.32 0.83 22 Granted - - - - Exercised (200,000 ) 3.12 - - Forfeited or expired - - - - Outstanding at June 30, 2021 50,000 4.14 0.75 45 Exercisable at June 30, 2021 50,000 4.14 0.75 45 A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2020, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2019 300,000 3.40 1.58 9 Granted - - - - Exercised - - - - Forfeited or expired (50,000 ) 3.81 - - Outstanding at June 30, 2020 250,000 3.32 0.83 22 Exercisable at June 30, 2020 250,000 3.32 0.83 22 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Future minimum rental income | Future minimum rental income in China and Thailand to be received from fiscal year 2022 to fiscal year 2023 on non-cancellable operating leases is contractually due as of June 30, 2021, as follows: 2022 $ 145 2023 $ 16 $ 161 Future minimum rental income in China and Thailand to be received from fiscal year 2021 to fiscal year 2022 on non-cancellable operating leases is contractually due as of June 30, 2020, as follows: 2021 $ 120 2022 $ 114 $ 234 |
Supplemental lease information | June 30, Components of Lease Balances 2021 Assets Gross financial sales receivable $ 65 Unearned finance income (7 ) Financed Sales Receivable $ 58 Net financed sales receivables due within one year $ 19 Net financed sales receivables due after one year $ 39 Supplemental balance sheet information related to leases is as follows (in thousands): June 30, Components of Lease Balances Classification 2021 Assets Operating lease assets Right-of-use asset-operating, net $ 1,876 Finance lease assets Property, plant & equipment 1,413 Accumulated amortization Right-of-use asset (1,199 ) Assets Property, plant & equipment $ 214 Total Leased Assets $ 2,090 Liabilities Operating Lease Liabilities Current portion Current portion of lease liability- operating $ 672 Long-term portion Lease liability- operating, net of current portion 1,204 Total Operating Lease Liabilities $ 1,876 Finance Lease Liabilities Current portion of finance leases Current portion of lease liability- finance $ 197 Net of current portion of finance leases Lease liability- finance, net of current portion 253 Total Finance Lease Liabilities $ 450 Total Lease Liabilities $ 2,326 |
Lease cost | 3 Months Ended 12 Months Ended Lease Cost June 30, 2021 Finance lease cost: Interest on lease liabilities 7 $ 42 Amortization of right-of-use asset 74 334 Total Finance Lease Cost 81 376 Operating Lease Costs $ 199 $ 765 |
Other information related to leases | June 30, 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ (40 ) Operating cash flows from operating leases $ (764 ) Right-of-use assets obtained in exchange for new operating lease liabilities $ 932 Weighted average remaining lease term (years): Finance leases 2.72 Operating leases 3.09 Weighted average discount rate: Finance leases 3.56 Operating leases 4.60 |
Maturities of lease liabilities | As of June 30, 2021, the maturities of the Company's operating and finance lease liabilities were as follow: Operating Lease Liabilities Finance Lease Liabilities Fiscal Year 2022 748 218 2023 537 137 2024 313 111 2025 291 22 Thereafter 156 - Total future minimum lease payments $ 2,045 $ 488 Less: amount representing interest (169 ) (38 ) Present value of net minimum lease payments 1,876 450 Presentation on statement of financial position Current $ 672 $ 197 Non-Current $ 1,204 $ 253 As of June 30, 2020, the maturities of the Company's operating and finance lease liabilities were as follows: Operating Lease Liabilities Finance Lease Liabilities Fiscal Year 2021 509 265 2022 317 211 2023 168 133 2024 - 107 Thereafter - 20 Total future minimum lease payments $ 994 $ 736 Less: amount representing interest (50 ) (70 ) Present value of net minimum lease payments 944 666 Presentation on statement of financial position Current $ 477 $ 231 Non-Current $ 467 $ 435 |
NON-CONTROLLING INTEREST (Table
NON-CONTROLLING INTEREST (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling interest | For the Year Ended June 30, Noncontrolling interest 2021 2020 Beginning balance $ 1,180 $ 1,195 Net (loss)/ income (564 ) 238 Dividend declared by a subsidiary (189 ) (235 ) Translation adjustment (8 ) (18 ) Ending balance $ 419 $ 1,180 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Jun. 30, 2021 |
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 (Dormant) | |
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. | |
Ownership | 100.00% |
Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) | |
Ownership | 55.00% |
Trio-Tech (Kuala Lumpur) Sdn. Bhd. (100% owned by Trio-Tech Malaysia Sdn. Bhd.) | |
Ownership | 55.00% |
Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.) | |
Ownership | 76.00% |
Trio-Tech (SIP) Co. Ltd. | |
Ownership | 100.00% |
Trio-Tech (Chongqing) Co. Ltd. SHI International Pte. Ltd. | |
Ownership | 100.00% |
SHI International Pte. Ltd. (55% owned by Trio-Tech International Pte. Ltd.) | |
Ownership | 55.00% |
PT SHI Indonesia (100% owned by SHI International Pte. Ltd) | |
Ownership | 55.00% |
Trio-Tech (Tianjin) Co. Ltd. | |
Ownership | 100.00% |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Net Income Attributable to Trio-Tech International Common Shareholders | $ (591) | $ 878 |
Earnings retained in subsidiaries | 16,683 | 15,585 |
Research and development costs | $ 357 | $ 355 |
RESTATEMENTS (Details)
RESTATEMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | [1] | |
Paid-in capital | $ 4,233 | $ 3,984 | [1] | ||
Accumulated retained earnings | 6,824 | 7,415 | [1] | ||
Total Trio-Tech International shareholders' equity | 26,053 | 23,966 | [1] | ||
TOTAL EQUITY | $ 25,634 | 25,146 | [1] | $ 24,861 | |
Previously Reported | |||||
Paid-in capital | 3,363 | ||||
Accumulated retained earnings | 8,036 | ||||
Total Trio-Tech International shareholders' equity | 23,966 | ||||
TOTAL EQUITY | $ 25,146 | ||||
[1] | Restated |
RESTATEMENTS (Details 1)
RESTATEMENTS (Details 1) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated retained earnings | $ 6,824 | $ 7,415 | [1] |
Paid-in capital | $ 4,233 | 3,984 | [1] |
Previously Reported | |||
Accumulated retained earnings | 8,036 | ||
Paid-in capital | $ 3,363 | ||
[1] | Restated |
RESTATEMENTS (Details 2)
RESTATEMENTS (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
General and administrative | $ 6,938 | $ 7,064 | |
Total operating expenses | 7,740 | 8,213 | |
Loss from Operations | (70) | (947) | |
Income from Continuing Operations before Income Taxes | (899) | 1,107 | |
Income from continuing operations before non-controlling interests, net of tax | (1,127) | 1,119 | |
NET (LOSS) / INCOME | (1,155) | 1,116 | [1] |
Net Income Attributable to Trio-Tech International Common Shareholders | $ (591) | $ 878 | |
Basic earnings per share from continuing operations attributable to Trio-Tech International | $ (.16) | $ .24 | |
Diluted earnings per share from continuing operations attributable to Trio-Tech International | $ (.15) | $ .24 | |
Previously Reported | |||
General and administrative | $ 6,976 | ||
Total operating expenses | 8,125 | ||
Loss from Operations | (859) | ||
Income from Continuing Operations before Income Taxes | 1,195 | ||
Income from continuing operations before non-controlling interests, net of tax | 1,207 | ||
NET (LOSS) / INCOME | 1,204 | ||
Net Income Attributable to Trio-Tech International Common Shareholders | $ 966 | ||
Basic earnings per share from continuing operations attributable to Trio-Tech International | $ .26 | ||
Diluted earnings per share from continuing operations attributable to Trio-Tech International | $ .26 | ||
[1] | Restated |
TERM DEPOSITS (Details)
TERM DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Deposits [Abstract] | ||
Short-term deposits | $ 6,353 | $ 7,028 |
Currency translation effect on short-term deposits | 298 | (190) |
Total short-term deposits | 6,651 | 6,838 |
Restricted term deposits | 1,682 | 1,712 |
Currency translation effect on restricted term deposits | 59 | (52) |
Total restricted term deposits | 1,741 | 1,660 |
Total term deposits | $ 8,392 | $ 8,498 |
TRADE ACCOUNTS RECEIVABLE AND_3
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Beginning | $ 314 | $ 263 |
Additions charged to expenses | 5 | 351 |
Recovered | (14) | (284) |
Write-off | (16) | (9) |
Currency translation effect | 22 | (7) |
Ending | $ 311 | $ 314 |
LOANS RECEIVABLE FROM PROPERT_2
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Jiang Huai | |
Short-term loan receivables | |
Short-term | $ 309 |
Less: allowance for doubtful receivables | (309) |
Short-term loan receivables, net | 0 |
Jiang Huai | Yuan RMB | |
Short-term loan receivables | |
Short-term | 2,000 |
Less: allowance for doubtful receivables | (2,000) |
Short-term loan receivables, net | 0 |
Jun Zhou Zhi Ye | Yuan RMB | |
Short-term loan receivables | |
Short-term | 5,000 |
Less: allowance for doubtful receivables | (5,000) |
Short-term loan receivables, net | 0 |
Jun Zhou Zhi Ye | USD | |
Short-term loan receivables | |
Short-term | 773 |
Less: allowance for doubtful receivables | (773) |
Short-term loan receivables, net | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 1,152 | $ 1,281 | |
Work in progress | 1,218 | 968 | |
Finished goods | 325 | 422 | |
Less: provision for obsolete inventories | (679) | (678) | |
Currency translation effect | 64 | (71) | |
Inventory net | $ 2,080 | $ 1,922 | [1] |
[1] | Restated |
INVENTORIES (Details 1)
INVENTORIES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | ||
Beginning | $ 678 | $ 673 |
Additions charged to expenses | 13 | 26 |
Usage - disposition | (28) | (8) |
Currency translation effect | 16 | (13) |
Ending | $ 679 | $ 678 |
INVESTMENT PROPERTIES (Details)
INVESTMENT PROPERTIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
MaoYe | ||
Investment amount | $ 894 | $ 894 |
Currency translation | (87) | (87) |
Reclassified as "Assets held for sale" | (807) | (807) |
Reclassification from "Assets held for sale" | 301 | 301 |
Net investment in property | 301 | 301 |
MaoYe | Yuan RMB | ||
Investment amount | 5,554 | 5,554 |
Currency translation | 0 | 0 |
Reclassified as "Assets held for sale" | (5,554) | (5,554) |
Reclassification from "Assets held for sale" | 2,024 | 2,024 |
Net investment in property | 2,024 | 2,024 |
Jiang Huai | ||
Investment amount | 580 | 580 |
Net investment in property | 580 | |
Jiang Huai | Yuan RMB | ||
Investment amount | 3,600 | 3,600 |
Net investment in property | 3,600 | |
Fu Li | ||
Investment amount | 648 | 648 |
Currency translation | (36) | (166) |
Gross investment in rental property | 1,363 | |
Net investment in property | 673 | |
Fu Li | Yuan RMB | ||
Investment amount | 4,025 | 4,025 |
Currency translation | 0 | 0 |
Gross investment in rental property | 9,649 | |
Net investment in property | 4,765 | |
China | ||
Gross investment in rental property | 1,493 | |
Accumulated depreciation on rental property | (1,079) | (940) |
Reclassified as "Assets held for sale" | 410 | 410 |
Reclassification from "Assets held for sale" | (143) | (143) |
Net investment in property | 681 | 690 |
China | Yuan RMB | ||
Gross investment in rental property | 9,649 | |
Accumulated depreciation on rental property | (7,040) | (6,558) |
Reclassified as "Assets held for sale" | 2,822 | 2,822 |
Reclassification from "Assets held for sale" | (1,029) | (1,029) |
Net investment in property | $ 4,402 | $ 4,884 |
INVESTMENT PROPERTIES (Details
INVESTMENT PROPERTIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
MaoYe | ||
Investment amount | $ 894 | $ 894 |
Rental income | 9 | 32 |
Depreciation expenses | 15 | 13 |
MaoYe | Yuan RMB | ||
Investment amount | 5,554 | 5,554 |
Jiang Huai | ||
Investment amount | 580 | 580 |
Rental income | 0 | 0 |
Depreciation expenses | 27 | 26 |
Jiang Huai | Yuan RMB | ||
Investment amount | 3,600 | 3,600 |
Fu Li | ||
Investment amount | 648 | 648 |
Rental income | 19 | 30 |
Depreciation expenses | 30 | 28 |
Fu Li | Yuan RMB | ||
Investment amount | 4,025 | 4,025 |
China | ||
Rental income | 62 | 28 |
Depreciation expenses | $ 67 | $ 72 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Property, plant and equipment, gross | $ 40,702 | $ 40,050 | |
Accumulated depreciation | (28,751) | (27,148) | |
Accumulated amortization on equipment under capital leases | (1,199) | (719) | |
Total accumulated amortization depreciation | (29,950) | (27,867) | |
Property, plant and equipment before currency translation effect | 10,752 | 12,183 | |
Currency translation effect | (1,221) | (1,873) | |
Property, plant and equipment, net | 9,531 | 10,310 | [1] |
Building and improvements | |||
Property, plant and equipment, gross | $ 5,141 | 5,102 | |
Building and improvements | Minimum | |||
Estimated useful life in years | 3 years | ||
Building and improvements | Maximum | |||
Estimated useful life in years | 20 years | ||
Leasehold improvements | |||
Property, plant and equipment, gross | $ 6,174 | 6,170 | |
Leasehold improvements | Minimum | |||
Estimated useful life in years | 3 years | ||
Leasehold improvements | Maximum | |||
Estimated useful life in years | 27 years | ||
Machinery and equipment | |||
Property, plant and equipment, gross | $ 26,804 | 1,134 | |
Machinery and equipment | Minimum | |||
Estimated useful life in years | 3 years | ||
Machinery and equipment | Maximum | |||
Estimated useful life in years | 7 years | ||
Furniture and fixtures | |||
Property, plant and equipment, gross | $ 1,170 | 26,578 | |
Furniture and fixtures | Minimum | |||
Estimated useful life in years | 3 years | ||
Furniture and fixtures | Maximum | |||
Estimated useful life in years | 5 years | ||
Equipment under finance leases | |||
Property, plant and equipment, gross | $ 1,413 | $ 1,066 | |
Equipment under finance leases | Minimum | |||
Estimated useful life in years | 3 years | ||
Equipment under finance leases | Maximum | |||
Estimated useful life in years | 5 years | ||
[1] | Restated |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expenses | $ 2,419 | $ 2,341 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Other Assets [Abstract] | ||
Down payment for purchase of investment properties | $ 0 | $ 1,645 |
Down payment for purchase of property, plant and equipment | 372 | 8 |
Deposit for rental and utilities | 160 | 171 |
Currency translation effect | (270) | (215) |
Ending balance | $ 262 | $ 1,609 |
OTHER ASSETS (Details 1)
OTHER ASSETS (Details 1) $ in Thousands | Jun. 30, 2021USD ($) | |
Yuan RMB | ||
Original investment | $ 10,000 | |
Less: management fee | (5,000) | |
Net investment | 5,000 | |
Less: share of loss on joint venture | (137) | |
Net investment as down payment | 4,863 | [1] |
Loans receivable | 5,000 | |
Interest receivable | 1,250 | |
Less: impairment of interest | (906) | |
Transferred to down payment | 5,344 | [2] |
*Down payment for purchase of investment properties | 10,207 | |
Less: Provision of Impairment loss on other assets | (10,207) | |
Down Payment for Purchase of Investment Properties | 0 | |
USD | ||
Original investment | 1,606 | |
Less: management fee | (803) | |
Net investment | 803 | |
Less: share of loss on joint venture | (22) | |
Net investment as down payment | 781 | [1] |
Loans receivable | 814 | |
Interest receivable | 200 | |
Less: impairment of interest | (150) | |
Transferred to down payment | 864 | [2] |
*Down payment for purchase of investment properties | 1,645 | |
Less: Provision of Impairment loss on other assets | (1,645) | |
Down Payment for Purchase of Investment Properties | $ 0 | |
[1] | On December 2, 2010, the Company signed a Joint Venture agreement (agreement) with Jia Sheng Property Development Co. Ltd. (Developer) to form a new company, Junzhou Co. Limited (Joint Venture or Junzhou), to jointly develop the Singapore Themed Park project (the project). The Company paid RMB10 million for the 10% investment in the joint venture. The Developer paid the Company a management fee of RMB 5 million in cash upon signing of the agreement, with a remaining fee of RMB 5 million payable upon fulfilment of certain conditions in accordance with the agreement. The Company further reduced its investment by RMB 137, or approximately $22, through the losses from operations incurred by the Joint Venture. On October 2, 2013, the Company disposed of its entire 10% interest in the Joint Venture but to date has not received payment in full therefor. The Company recognized that disposal based on the recorded net book value of RMB 5 million, or equivalent to $803K, from net considerations paid, in accordance with GAAP under ASC Topic 845 Non-monetary Consideration. It is presented under Other Assets as noncurrent assets to defer the recognition of the gain on the disposal of the 10% interest in the joint venture investment until such time that the consideration is paid, so that the gain can be ascertained | |
[2] | Amounts of RMB 5,000, or approximately $773, as disclosed in Note 5, plus the interest receivable on long term loan receivable of RMB 1,250, or approximately $200, and impairment on interest of RMB 906, or approximately $150. The shop lots in the Singapore Themed Resort Project being developed by the Developer under the agreement are to be delivered to TTCQ upon completion thereof. The initial targeted date of completion was December 31, 2016. Based on discussion with the Developer, the completion date is currently estimated to be December 31, 2022. The delay was primarily due to the time needed by the Developer to work with various parties to inject sufficient funds into this project, especially during the COVID-19 pandemic. Based on the available information, the developer had applied for asset reorganization and this application is currently pending for further approvals by the local government departments. Nonetheless, the Company believes that the recent events will not affect the market value of these properties despite the on-going pandemic and the developers recent application. |
LINES OF CREDIT (Details)
LINES OF CREDIT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
TrioTech Intl Credit Facility | ||
Type of facility | Lines of Credit | |
Credit limitation | $ 4,237 | $ 4,806 |
Unused credit | $ 4,237 | 4,806 |
TrioTech Intl Credit Facility | Minimum | ||
Interest rate | 1.85% | |
TrioTech Intl Credit Facility | Maximum | ||
Interest rate | 5.50% | |
Universal (Far East) Pte. Ltd | ||
Type of facility | Lines of Credit | |
Credit limitation | $ 1,115 | 359 |
Unused credit | $ 1,043 | 187 |
Universal (Far East) Pte. Ltd | Minimum | ||
Interest rate | 1.85% | |
Universal (Far East) Pte. Ltd | Maximum | ||
Interest rate | 5.50% | |
TrioTech Malaysia | ||
Type of facility | Revolving Credit | |
Credit limitation | $ 361 | 350 |
Unused credit | $ 361 | $ 350 |
TrioTech Malaysia | Minimum | ||
Interest rate | 2.00% | |
TrioTech Malaysia | Maximum | ||
Interest rate | 2.00% |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Payables and Accruals [Abstract] | ||
Payroll and related costs | $ 1,362 | $ 1,185 |
Commissions | 51 | 104 |
Customer deposits | 45 | 30 |
Legal and audit | 321 | 315 |
Sales tax | 9 | 19 |
Utilities | 91 | 80 |
Warranty | 14 | 12 |
Accrued purchase of materials and property, plant and equipment | 144 | 186 |
Provision for re-instatement | 290 | 300 |
Deferred income | 67 | 88 |
Contract liabilities | 628 | 476 |
Other accrued expenses | 279 | 287 |
Currency translation effect | 62 | (77) |
Total | $ 3,363 | $ 3,005 |
WARRANTY ACCRUAL (Details)
WARRANTY ACCRUAL (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Warranty Accrual | ||
Beginning | $ 12 | $ 39 |
Additions charged to cost and expenses | 7 | 1 |
Utilization / reversal | (4) | (27) |
Currency translation effect | (1) | (1) |
Ending | $ 14 | $ 12 |
BANK LOANS PAYABLE (Details)
BANK LOANS PAYABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | |
Bank loan payable | $ 2,060 | $ 2,206 | |
Current portion of bank loan payable | 428 | 384 | |
Currency translation effect on short-term portion of bank loan | 11 | (14) | |
Current portion of bank loan payable | 439 | 370 | [1] |
Long term portion of bank loan payable | 1,564 | 1,911 | |
Currency translation effect on long-term portion of bank loan | 57 | (75) | |
Long term portion of bank loans payable | 1,621 | 1,836 | [1] |
Commercial Bank Note 1 | |||
Bank loan payable | 1,885 | 2,206 | |
Commercial Bank Note 2 | |||
Bank loan payable | $ 175 | $ 0 | |
[1] | Restated |
BANK LOANS PAYABLE (Details 1)
BANK LOANS PAYABLE (Details 1) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Loans Payable [Abstract] | ||
2021 | $ 0 | $ 370 |
2022 | 439 | 384 |
2023 | 457 | 400 |
2024 | 462 | 403 |
2025 | 208 | 158 |
2026 | 171 | 0 |
Thereafter | 323 | 491 |
Total obligations and commitments | $ 2,060 | $ 2,206 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) $ in Thousands | Jun. 30, 2021USD ($) |
Malaysia US | |
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 93 |
Malaysia | Ringgit RM | |
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 388 |
CONCENTRATION OF CUSTOMERS (Det
CONCENTRATION OF CUSTOMERS (Details) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Sales | Customer A | ||
Concentration risk | 37.70% | 38.40% |
Sales | Customer B | ||
Concentration risk | 9.70% | 17.60% |
Account Receivable | Customer A | ||
Concentration risk | 34.70% | 40.60% |
Account Receivable | Customer B | ||
Concentration risk | 11.80% | 6.30% |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Net revenue | $ 32,462 | $ 34,465 |
Operating Income (Loss) | (70) | (947) |
Total assets | 38,306 | 35,660 |
Depreciation and amortization | 3,059 | 3,100 |
Capital expenditures | 1,112 | 1,017 |
Manufacturing | ||
Net revenue | 13,151 | 11,605 |
Operating Income (Loss) | 376 | (326) |
Total assets | 13,622 | 9,807 |
Depreciation and amortization | 411 | 346 |
Capital expenditures | 350 | 134 |
Testing Services | ||
Net revenue | 13,846 | 14,840 |
Operating Income (Loss) | (997) | (1,040) |
Total assets | 21,099 | 21,086 |
Depreciation and amortization | 2,570 | 2,578 |
Capital expenditures | 762 | 834 |
Distribution | ||
Net revenue | 5,437 | 7,958 |
Operating Income (Loss) | 657 | 751 |
Total assets | 1,156 | 875 |
Depreciation and amortization | 4 | 100 |
Capital expenditures | 0 | 0 |
Real Estate | ||
Net revenue | 28 | 62 |
Operating Income (Loss) | (116) | (97) |
Total assets | 2,070 | 3,587 |
Depreciation and amortization | 74 | 76 |
Capital expenditures | 0 | 0 |
Fabrication Services | ||
Net revenue | 0 | 0 |
Operating Income (Loss) | 0 | 0 |
Total assets | 0 | 27 |
Depreciation and amortization | 0 | 0 |
Capital expenditures | 0 | 0 |
Corporate And Unallocated | ||
Net revenue | 0 | 0 |
Operating Income (Loss) | (10) | (235) |
Total assets | 359 | 278 |
Depreciation and amortization | 0 | 0 |
Capital expenditures | $ 0 | $ 0 |
OTHER INCOME, NET (Details)
OTHER INCOME, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 118 | $ 177 |
Other rental income | 100 | 110 |
Exchange gain / (loss) | (69) | (35) |
Bad debt recovery | 9 | (59) |
Extinguishment of PPP loan | (121) | 0 |
Dividend Income | 32 | 0 |
Other miscellaneous income | 52 | 0 |
Total | $ 363 | $ 334 |
GOVERNMENT GRANTS (Details)
GOVERNMENT GRANTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Government Grants | ||
Government Grants | $ 514 | $ 778 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income before provision for income taxes | $ (899) | $ 1,107 |
United States | ||
Income before provision for income taxes | (53) | (740) |
International | ||
Income before provision for income taxes | $ (846) | $ 1,847 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Current | ||
Federal | $ 13 | $ (1) |
State | 2 | 2 |
Foreign | 352 | 212 |
Total | 367 | 213 |
Deferred | ||
Federal | 0 | 0 |
State | 0 | 0 |
Foreign | (139) | (225) |
Total | (139) | (225) |
Total provision | $ 228 | $ (12) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal tax rate | 21.00% | 21.00% |
State taxes, net of federal benefit | (0.41%) | (0.50%) |
Permanent items and credits | 4.10% | 13.95% |
Foreign rate differential | 74.02% | 33.86% |
Other | 0.67% | 2.14% |
Changes in valuation allowance | (74.02%) | (3.73%) |
Tax reform | 0.00% | 0.00% |
Effective rate | 25.36% | (1.00%) |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred tax assets: | ||
Net operating losses and credits | $ 782 | $ 487 |
Inventory valuation | 144 | 121 |
Provision for bad debts | 0 | 785 |
Accrued vacation | 12 | 37 |
Accrued expenses | 134 | 188 |
Fixed asset basis | 3 | 1 |
Investment in subsidiaries | 77 | 277 |
Unrealized gain | 4 | 24 |
Other | 12 | 51 |
Total deferred tax assets | 1,168 | 1,971 |
Deferred tax liabilities: | ||
Depreciation | (329) | (359) |
Others | 0 | (76) |
Total deferred income tax liabilities | (329) | (435) |
Subtotal | 839 | 1,536 |
Valuation allowance | (622) | (1,289) |
Net deferred tax assets | 217 | 247 |
Presented as follows in the balance sheets: | ||
Deferred tax assets | 217 | 247 |
Deferred tax liabilities | 0 | 0 |
Net deferred tax assets / (liability) | $ 217 | $ 247 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Increase (decrease) in valuation allowance | $ 667 | $ 527 |
Federal | ||
Net operating loss carryforwards | 1,248 | |
State | ||
Net operating loss carryforwards | $ 1,248 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Revenue | ||
Trade accounts receivable | $ 8,293 | $ 5,951 |
Accounts payable | 3,702 | 2,590 |
Contract assets | 337 | 216 |
Contract liabilities | $ 628 | $ 476 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||
(Loss) / Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ (575) | $ 879 |
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | (16) | (1) |
Net (Loss) / income attributable to Trio-Tech International common shareholders | $ (591) | $ 878 |
Weighted average number of common shares outstanding - basic | 3,768 | 3,673 |
Dilutive effect of stock options | 117 | 53 |
Number of shares used to compute earnings per share - diluted | 3,885 | 3,726 |
Basic (Loss) / Earnings per Share: | ||
Basic (Loss) / earnings per share from continuing operations attributable to Trio-Tech International | $ (.16) | $ .24 |
Basic (Loss) / earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 |
Basic (Loss) / Earnings per Share from Net Income Attributable to Trio-Tech International | (.16) | 0.24 |
Diluted (Loss) / Earnings per Share: | ||
Diluted (Loss) / earnings per share from continuing operations attributable to Trio-Tech International | (.15) | .24 |
Diluted (Loss) / earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 |
Diluted (Loss) / Earnings per Share from Net Income Attributable to Trio-Tech International | $ (.15) | $ 0.24 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Options outstanding | 674,500 | 763,500 |
Employee Stock Option [Member] | ||
Options outstanding | 348,000 | 410,000 |
Employee Stock Option [Member] | Minimum | ||
Weighted average exercise price | $ 2.53 | $ 2.53 |
Employee Stock Option [Member] | Maximum [Member] | ||
Weighted average exercise price | $ 5.98 | $ 5.98 |
STOCK OPTIONS (RESTATED) (Detai
STOCK OPTIONS (RESTATED) (Details) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Minimum | ||
Expected volatility | 40.89% | 40.89% |
Risk-free interest rate | 0.14% | 0.30% |
Expected life (years) | 2 years 6 months | 2 years 6 months |
Maximum | ||
Expected volatility | 69.03% | 55.19% |
Risk-free interest rate | 2.35% | 2.35% |
Expected life (years) | 3 years 4 months | 3 years 4 months |
STOCK OPTIONS (RESTATED) (Det_2
STOCK OPTIONS (RESTATED) (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Options outstanding, beginning | 763,500 | |
Options outstanding | 674,500 | 763,500 |
2017 Employee Plan | ||
Options outstanding, beginning | 196,000 | 136,000 |
Granted | 71,000 | 60,000 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Options outstanding | 267,000 | 196,000 |
Options exercisable | 164,750 | 98,000 |
Weighted average exercise price outstanding, beginning | $ 3.92 | $ 4.53 |
Granted | 5.03 | 2.53 |
Exercised | .00 | .00 |
Forfeited or expired | .00 | .00 |
Weighted average exercise price outstanding | 4.21 | 3.92 |
Weighted average exercise price exercisable | $ 4.35 | $ 4.44 |
Weighted average remaining contractual term outstanding, beginning | 3 years 11 months 1 day | 4 years 3 months 11 days |
Granted | 4 years 1 month 28 days | 2 years 8 months 23 days |
Weighted average remaining contractual term outstanding, ending | 4 years 2 months 16 days | 3 years 8 months 19 days |
Weighted average remaining contractual term exercisable | 4 years 4 months 6 days | 3 years 4 months 28 days |
Aggregate intrinsic value outstanding, beginning | $ 36 | $ 0 |
Granted | 14 | 36 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Aggregate intrinsic value outstanding, ending | 290 | 36 |
Aggregate intrinsic value exercisable | $ 173 | $ 9 |
2007 Employee Plan | ||
Options outstanding, beginning | 77,500 | 77,500 |
Granted | 0 | 0 |
Exercised | (40,000) | 0 |
Forfeited or expired | 0 | 0 |
Options outstanding | 37,500 | 77,500 |
Options exercisable | 37,500 | 77,500 |
Weighted average exercise price outstanding, beginning | $ 3.69 | $ 3.69 |
Granted | .00 | .00 |
Exercised | 3.26 | .00 |
Forfeited or expired | .00 | .00 |
Weighted average exercise price outstanding | 4.14 | 3.69 |
Weighted average exercise price exercisable | $ 4.14 | $ 3.69 |
Weighted average remaining contractual term outstanding, beginning | 1 year 2 months 19 days | 2 years 2 months 19 days |
Weighted average remaining contractual term outstanding, ending | 9 months | 1 year 2 months 19 days |
Weighted average remaining contractual term exercisable | 9 months | 1 year 2 months 19 days |
Aggregate intrinsic value outstanding, beginning | $ 0 | $ 0 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Aggregate intrinsic value outstanding, ending | 0 | 0 |
Aggregate intrinsic value exercisable | $ 0 | $ 0 |
2017 Directors Equity Incentive Plan | ||
Options outstanding, beginning | 240,000 | 160,000 |
Granted | 80,000 | 80,000 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Options outstanding | 320,000 | 240,000 |
Options exercisable | 320,000 | 240,000 |
Weighted average exercise price outstanding, beginning | $ 3.93 | $ 4.63 |
Granted | 5.27 | 2.53 |
Exercised | .00 | .00 |
Forfeited or expired | .00 | .00 |
Weighted average exercise price outstanding | 4.27 | 3.93 |
Weighted average exercise price exercisable | $ 4.27 | $ 3.93 |
Weighted average remaining contractual term outstanding, beginning | 3 years 9 months | 4 years 3 months |
Granted | 4 years 7 months 20 days | 4 years 8 months 23 days |
Weighted average remaining contractual term outstanding, ending | 3 years 2 months 19 days | 4 years 9 months |
Weighted average remaining contractual term exercisable | 3 years 2 months 19 days | 4 years 9 months |
Aggregate intrinsic value outstanding, beginning | $ 48 | $ 0 |
Granted | 0 | 48 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Aggregate intrinsic value outstanding, ending | 340 | 48 |
Aggregate intrinsic value exercisable | $ 340 | $ 48 |
2007 Directors Equity Incentive Plan | ||
Options outstanding, beginning | 250,000 | 300,000 |
Granted | 0 | 0 |
Exercised | (200,000) | 0 |
Forfeited or expired | 0 | (50,000) |
Options outstanding | 50,000 | 250,000 |
Options exercisable | 50,000 | 250,000 |
Weighted average exercise price outstanding, beginning | $ 3.32 | $ 3.40 |
Granted | .00 | .00 |
Exercised | 3.12 | 0 |
Forfeited or expired | .00 | 3.81 |
Weighted average exercise price outstanding | 4.14 | 3.32 |
Weighted average exercise price exercisable | $ 4.14 | $ 3.32 |
Weighted average remaining contractual term outstanding, beginning | 9 months 29 days | 1 year 6 months 29 days |
Weighted average remaining contractual term outstanding, ending | 9 months | 9 months 29 days |
Weighted average remaining contractual term exercisable | 9 months | 9 months 29 days |
Aggregate intrinsic value outstanding, beginning | $ 22 | $ 9 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Aggregate intrinsic value outstanding, ending | 45 | 22 |
Aggregate intrinsic value exercisable | $ 45 | $ 22 |
STOCK OPTIONS (RESTATED) (Det_3
STOCK OPTIONS (RESTATED) (Details 2) - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
2017 Employee Plan | ||
Non-vested options outstanding, beginning | 98,000 | 87,000 |
Granted | 71,000 | 60,000 |
Vested | (66,750) | (49,000) |
Forfeited | 0 | 0 |
Non-vested options outstanding, ending | 102,250 | 98,000 |
Weighted average grant-date fair value outstanding, beginning | $ 1.79 | $ 1.43 |
Granted | 1.88 | 0.85 |
Vested | (1.83) | (1.51) |
Forfeited | .00 | .00 |
Weighted average grant-date fair value outstanding, ending | $ 2.29 | $ 1.79 |
2007 Employee Plan | ||
Non-vested options outstanding, beginning | 0 | 9,375 |
Granted | 0 | 0 |
Vested | 0 | (9,375) |
Forfeited | 0 | 0 |
Non-vested options outstanding, ending | 0 | 0 |
Weighted average grant-date fair value outstanding, beginning | $ 0 | $ .00 |
Granted | 0 | 1.22 |
Vested | 0 | (.00) |
Forfeited | 0 | 1.22 |
Weighted average grant-date fair value outstanding, ending | $ 0 | $ 0 |
STOCK OPTIONS (RESTATED) (Det_4
STOCK OPTIONS (RESTATED) (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-based compensation expense | $ 249 | $ 146 |
Aggregate intrinsic value options exercised | $ 754 | |
Employee 2017 | ||
Options granted | 71,000 | 60,000 |
Exercised during period | 0 | 0 |
Stock-based compensation expense | $ 105 | $ 85 |
Unamortized stock-based compensation | $ 71 | $ 54 |
Weighted average remaining term, nonvested | 2 years 11 days | |
Vested stock options | 164,750 | 98,000 |
Weighted-average exercise price, vested options | $ 4.35 | $ 4.44 |
Weighted average contractual term | 2 years 8 months 27 days | 3 years 4 months 28 days |
Fair value of stock options, vested and outstanding | $ 268 | $ 164 |
Employee 2007 | ||
Options granted | 0 | 0 |
Exercised during period | 40,000 | |
Stock-based compensation expense | $ 0 | $ 0 |
Vested stock options | 37,500 | 77,500 |
Weighted-average exercise price, vested options | $ 4.14 | $ 3.69 |
Weighted average contractual term | 9 months | 1 year 2 months 19 days |
Fair value of stock options, vested and outstanding | $ 61 | $ 120 |
Director 2017 | ||
Options granted | 80,000 | 80,000 |
Stock-based compensation expense | $ 143 | $ 61 |
Vested stock options | 320,000 | 240,000 |
Weighted-average exercise price, vested options | $ 4.27 | $ 3.93 |
Fair value of stock options, vested and outstanding | $ 143 | $ 61 |
Director 2007 | ||
Exercised during period | 200,000 | 50,000 |
Vested stock options | 50,000 | 250,000 |
Weighted-average exercise price, vested options | $ 4.14 | $ 3.32 |
Weighted average contractual term | 9 months | 9 months 29 days |
Fair value of stock options, vested and outstanding | $ 72 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Leases [Abstract] | ||
2021 | $ 0 | $ 120 |
2022 | 145 | 114 |
2023 | 16 | 0 |
Total | 161 | $ 234 |
Gross financial sales receivable | 65 | |
Unearned finance income | (7) | |
Financed sales receivable | 58 | |
Net financed sales receivables due within one year | 19 | |
Net financed sales receivables due after one year | $ 39 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Leases | |||
Operating lease right-of-use assets | $ 1,876 | $ 944 | [1] |
Current portion of operating leases | 672 | 477 | [1] |
Net of current portion of operating leases | 1,204 | 467 | [1] |
Total operating lease liabilities | 1,876 | 944 | |
Finance Leases | |||
Property and equipment, at cost | 1,413 | ||
Accumulated depreciation | (1,199) | ||
Property and equipment, net | 214 | ||
Current portion of finance leases | 197 | 231 | [1] |
Net of current portion of finance leases | 253 | 435 | [1] |
Total finance lease liabilities | 450 | $ 666 | |
Total leased assets | 2,090 | ||
Total lease liabilities | $ 2,326 | ||
[1] | Restated |
LEASES (Details 2)
LEASES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Jun. 30, 2021 | |
Lease Cost | ||
Interest on lease liability | $ 7 | $ 42 |
Amortization of right-of-use asset | 74 | 334 |
Total finance lease cost | 81 | 376 |
Operating lease costs | $ 199 | $ 765 |
LEASES (Details 3)
LEASES (Details 3) $ in Thousands | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Leases [Abstract] | |
Operating cash flows from finance lease | $ (40) |
Operating cash flows from operating leases | (764) |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 932 |
Weighted-average remaining lease term: finance leases | 2 years 8 months 19 days |
Weighted-average remaining lease term: operating leases | 3 years 1 month 2 days |
Weighted-average discount rate: finance leases | 356.00% |
Weighted-average discount rate: operating leases | 460.00% |
LEASES (Details 4)
LEASES (Details 4) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Lease Liabilities | |||
2021 | $ 0 | $ 509 | |
2022 | 748 | 317 | |
2023 | 537 | 168 | |
2024 | 313 | 0 | |
2025 | 291 | 0 | |
Thereafter | 156 | 0 | |
Total future minimum lease payments | 2,045 | 994 | |
Less: amount representing interest | (169) | (50) | |
Present value of net minimum lease payments | 1,876 | 944 | |
Current | 672 | 477 | [1] |
Non-current | 1,204 | 467 | [1] |
Finance Leases Liabilities | |||
2021 | 0 | 265 | |
2022 | 218 | 211 | |
2023 | 137 | 133 | |
2024 | 111 | 107 | |
2025 | 22 | 0 | |
Thereafter | 0 | 20 | |
Total future minimum lease payments | 488 | 736 | |
Less: amount representing interest | (38) | (70) | |
Present value of net minimum lease payments | 450 | 666 | |
Current | 197 | 231 | [1] |
Non-current | $ 253 | $ 435 | [1] |
[1] | Restated |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Non-controlling interest | |||
Net (loss) / income | $ (1,155) | $ 1,116 | [1] |
Dividend declared by subsidiary | (189) | (235) | |
Translation adjustment | 1,248 | (742) | |
Noncontrolling Interest | |||
Non-controlling interest | |||
Beginning balance | 1,180 | 1,195 | |
Net (loss) / income | (564) | 238 | [1] |
Dividend declared by subsidiary | (189) | (235) | |
Translation adjustment | (8) | (18) | |
Ending balance | $ 419 | $ 1,180 | |
[1] | Restated |
NON-CONTROLLING INTEREST (Det_2
NON-CONTROLLING INTEREST (Details Narrative) | Jun. 30, 2021 |
Controlling Interest 1 | |
Non controlling interest | 45.00% |
Controlling Interest 2 | |
Non controlling interest | 45.00% |
Controlling Interest 3 | |
Non controlling interest | 24.00% |