Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Oct. 02, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'TRIO-TECH INTERNATIONAL | ' |
Entity Central Index Key | '0000732026 | ' |
Document Type | '10-K | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | ' | $3,513 |
Entity Common Stock, Shares Outstanding | ' | 3,513,055 |
Document Fiscal Period Focus | 'FY | ' |
Document Fiscal Year Focus | '2014 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $2,938 | $2,793 |
Short-term deposits | 102 | 104 |
Trade accounts receivable, less allowance for doubtful accounts of $438 and $139 | 8,625 | 8,728 |
Other receivables | 311 | 993 |
Loans receivable from property development projects | ' | 1,139 |
Inventories, less provision for obsolete inventory of $844 and $912 | 1,106 | 2,463 |
Prepaid expenses and other current assets | 205 | 358 |
Total current assets | 13,287 | 16,578 |
Deferred tax assets | 388 | 203 |
Investments | ' | 791 |
Investment properties, net | 1,765 | 1,893 |
Property, plant and equipment, net | 13,541 | 12,851 |
Loan receivables from property development projects | 805 | ' |
Other assets | 1,263 | 234 |
Restricted term deposits | 3,541 | 3,494 |
TOTAL ASSETS | 34,590 | 36,044 |
LIABILITIES | ' | ' |
Lines of credit | 3,767 | 3,864 |
Accounts payable | 3,162 | 4,136 |
Accrued expenses | 3,046 | 3,060 |
Income taxes payable | 214 | 459 |
Current portion of bank loans payable | 448 | 770 |
Current portion of capital leases | 81 | 105 |
Total current liabilities | 10,718 | 12,394 |
Bank loans payable, net of current portion | 2,598 | 2,613 |
Capital leases, net of current portion | 200 | 228 |
Deferred tax liabilities | 202 | 191 |
Other non-current liabilities | 39 | 12 |
TOTAL LIABILITIES | 13,757 | 15,438 |
Commitment and contingencies | ' | ' |
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: | ' | ' |
Common stock, no par value, 15,000,000 shares authorized; 3,513,055 shares issued and outstanding as of June 30, 2014 and June 30, 2013, respectively | 10,882 | 10,531 |
Paid-in capital | 2,972 | 2,756 |
Accumulated retained earnings | 1,725 | 1,668 |
Accumulated other comprehensive gain-translation adjustments | 3,522 | 3,680 |
Total Trio-Tech International shareholders' equity | 19,101 | 18,635 |
Non-controlling interest | 1,732 | 1,971 |
TOTAL EQUITY | 20,833 | 20,606 |
TOTAL LIABILITIES AND EQUITY | $34,590 | $36,044 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $438 | $139 |
Provision for obsolete inventory | $844 | $912 |
Common stock, Authorized | 15,000,000 | 15,000,000 |
Common stock, Issued | 3,513,055 | 3,321,555 |
Common stock, outstanding | 3,513,055 | 3,321,555 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue | ' | ' |
Products | $18,068 | $16,609 |
Testing services | 18,017 | 15,029 |
Others | 177 | 132 |
Total | 36,262 | 31,770 |
Cost of Sales | ' | ' |
Cost of products sold | 15,223 | 14,414 |
Cost of testing services rendered | 12,601 | 10,874 |
Others | 139 | 131 |
Total | 27,963 | 25,419 |
Gross Margin | 8,299 | 6,351 |
Operating Expenses | ' | ' |
General and administrative | 7,363 | 6,450 |
Selling | 732 | 537 |
Research and development | 196 | 281 |
Loss / (gain) on disposal of property, plant and equipment | 10 | -56 |
Total operating expenses | 8,301 | 7,212 |
Loss from Operations | -2 | -861 |
Other Income / (Expenses) | ' | ' |
Interest expenses | -263 | -287 |
Other income, net | 163 | 520 |
Total other (expenses) / income | -100 | 233 |
Loss from Continuing Operations before Income Taxes | -102 | -628 |
Income Tax Benefits | 344 | 260 |
Income / (loss) from continuing operations before non-controlling interest, net of tax | 242 | -368 |
Discontinued Operations (Note 19) | ' | ' |
Loss from discontinued operations, net of tax | -41 | -734 |
NET INCOME / (LOSS) | 201 | -1,102 |
Less: net (income)/ loss attributable to the non-controlling interest | -144 | 83 |
Net Income / (Loss) Attributable to Trio-Tech International Common Shareholders | 57 | -1,019 |
Amounts Attributable to Trio-Tech International Common Shareholders: | ' | ' |
Income / (Loss) from continuing operations, net of tax | 81 | -671 |
Loss from discontinued operations, net of tax | -24 | -348 |
Net Income / (Loss) Attributable to Trio-Tech International Common Shareholders | 57 | -1,019 |
Comprehensive Income / (Loss) Attributable to Trio-Tech International Common Shareholders: | ' | ' |
Net income / (loss) | 201 | -1,102 |
Foreign currency translation, net of tax | -228 | 634 |
Comprehensive Loss | -27 | -468 |
Less: comprehensive income attributable to the non-controlling interest | 74 | 58 |
Comprehensive Loss Attributable to Trio-Tech International Common Shareholders | ($101) | ($526) |
Basic and Diluted Loss per Share: | ' | ' |
Basic and diluted loss per share from continuing operations attributable to Trio-Tech International | $0.02 | ($0.20) |
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | ($0.01) | ($0.11) |
Basic and Diluted Loss per Share from Net Loss Attributable to Trio-Tech International | $0.01 | ($0.31) |
Weighted average number of common shares outstanding Basic | 3,513 | 3,322 |
Dilutive effect of stock options | 36 | ' |
Number of shares used to compute earnings per share diluted | 3,549 | 3,322 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-In Capital | Accumulated Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total |
In Thousands, except Share data | ||||||
Beginning Balance, Amount at Jun. 30, 2012 | $10,531 | $2,431 | $2,687 | $3,187 | $1,720 | $20,556 |
Beginning Balance, No. of Shares at Jun. 30, 2012 | 3,322 | ' | ' | ' | ' | ' |
Stock option expenses | ' | 42 | ' | ' | ' | 42 |
Net income (loss) | ' | ' | -1,019 | ' | -83 | -1,102 |
Translation adjustment | ' | ' | ' | 493 | 141 | 634 |
Dividend declared by subsidiary | ' | ' | ' | ' | -39 | -39 |
Contributions to capital by related party - loan forgiveness, Amount | ' | 283 | ' | ' | 232 | 515 |
Stock options exercised, amount | ' | ' | ' | ' | ' | ' |
Stock options exercised, No. of Shares | ' | ' | ' | ' | ' | ' |
Ending Balance, Amount at Jun. 30, 2013 | 10,531 | 2,756 | 1,668 | 3,680 | 1,971 | 20,606 |
Ending Balance, No. of Shares at Jun. 30, 2013 | 3,322 | ' | ' | ' | ' | ' |
Stock option expenses | ' | 216 | ' | ' | ' | 216 |
Net income (loss) | ' | ' | 57 | ' | 144 | 201 |
Translation adjustment | ' | ' | ' | -158 | -70 | -228 |
Dividend declared by subsidiary | ' | ' | ' | ' | -313 | -313 |
Contributions to capital by related party - loan forgiveness, Amount | ' | ' | ' | ' | ' | ' |
Stock options exercised, amount | 351 | ' | ' | ' | ' | 351 |
Stock options exercised, No. of Shares | 191 | ' | ' | ' | ' | ' |
Ending Balance, Amount at Jun. 30, 2014 | $10,882 | $2,972 | $1,725 | $3,522 | $1,732 | $20,833 |
Ending Balance, No. of Shares at Jun. 30, 2014 | 3,513 | ' | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flow from Operating Activities | ' | ' |
Net income (loss) | $201 | ($1,102) |
Depreciation and amortization | 2,294 | 2,491 |
Bad debt expenses, net | 706 | 196 |
Inventory (recovery) / provision | -76 | 24 |
Warranty expense, net | -2 | 1 |
Accrued interest expense, net accrued interest income | 28 | 127 |
Impairment loss | ' | ' |
Loss / (gain) on sale of property, plant & equipment | 10 | -56 |
Stock compensation | 216 | 42 |
Deferred tax provision | -176 | -314 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivables | -198 | 2,481 |
Other receivables | 1,474 | -6 |
Other assets | -1,029 | 355 |
Inventories | 1,443 | -167 |
Prepaid expenses and other current assets | 153 | 51 |
Accounts payable and accrued liabilities | -972 | -628 |
Income tax payable | -243 | -17 |
Other non-current liabilities | 30 | 13 |
Net Cash Provided by Operating Activities | 3,860 | 3,492 |
Cash Flow from Investing Activities | ' | ' |
Proceeds from maturing of / (investment in) unrestricted and restricted term deposits, net | ' | 137 |
Additions to property, plant and equipment | -3,090 | -1,838 |
Proceeds from disposal of plant, property and equipment | 31 | 59 |
Net Cash used in Investing Activities | -3,059 | -1,642 |
Cash Flow from Financing Activities | ' | ' |
(Repayment) / borrowing on lines of credit | -79 | 336 |
Dividends paid on non-controlling interest | -312 | ' |
Repayment of bank loans and capital leases | -1,065 | -1,195 |
Proceeds from exercising stock options | 351 | ' |
Proceeds from long-term bank loans | 524 | 124 |
Net cash Used in financing activities | -581 | -735 |
Effect of Changes in Exchange Rate | -76 | 106 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 145 | 1,221 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 2,793 | 1,572 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 2,938 | 2,793 |
Cash paid during the period for Interest | 262 | 272 |
Cash paid during the period for Income taxes | 47 | 70 |
Non-Cash Transactions | ' | ' |
Capital lease of property, plant and equipment | $67 | $124 |
BASIS_OF_PRESENTATION_AND_SUMM
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||
Jun. 30, 2014 | ||||||
Notes to Financial Statements | ' | |||||
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | |||||
Basis of Presentation and Principles of Consolidation - Trio-Tech International (“the Company”, “Trio-Tech”, or “TTI” hereafter) was incorporated in fiscal year 1958 under the laws of the State of California. TTI provides third-party semiconductor testing and burn-in services primarily through its laboratories in Asia. In addition, TTI operates testing facilities in the United States (“U.S”). The Company also designs, develops, manufactures and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components. In fiscal 2013 TTI conducted business in five business segments: Testing Services, Manufacturing, Distribution, Real Estate and Fabrication Services. The Fabrication segment was discontinued during the fourth quarter of fiscal year 2013, hence in fiscal year 2014 it carried its business in four segments. TTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand, China and Indonesia as follows: | ||||||
Ownership | Location | |||||
Express Test Corporation (Dormant) | 100 | % | Van Nuys, California | |||
Trio-Tech Reliability Services (Dormant) | 100 | % | Van Nuys, California | |||
KTS Incorporated, dba Universal Systems (Dormant) | 100 | % | Van Nuys, California | |||
European Electronic Test Centre (Dormant) | 100 | % | Dublin, Ireland | |||
Trio-Tech International Pte. Ltd. | 100 | % | Singapore | |||
Universal (Far East) Pte. Ltd. * | 100 | % | Singapore | |||
Trio-Tech International (Thailand) Co. Ltd. * | 100 | % | Bangkok, Thailand | |||
Trio-Tech (Bangkok) Co. Ltd. | 100 | % | Bangkok, Thailand | |||
(49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) | ||||||
Trio-Tech (Malaysia) Sdn. Bhd. | 55 | % | Penang & Selangor, Malaysia | |||
(55% owned by Trio-Tech International Pte. Ltd.) | ||||||
Trio-Tech (Kuala Lumpur) Sdn. Bhd. | 55 | % | Selangor, Malaysia | |||
(100% owned by Trio-Tech Malaysia Sdn. Bhd.) | ||||||
Prestal Enterprise Sdn. Bhd. | 76 | % | Selangor, Malaysia | |||
(76% owned by Trio-Tech International Pte. Ltd.) | ||||||
Trio-Tech (Suzhou) Co., Ltd. * | 100 | % | Suzhou, China | |||
Trio-Tech (Shanghai) Co., Ltd. * (Dormant) | 100 | % | Shanghai, China | |||
Trio-Tech (Chongqing) Co. Ltd. * | 100 | % | Chongqing, China | |||
SHI International Pte. Ltd. (Dormant) | 55 | % | Singapore | |||
(55% owned by Trio-Tech International Pte. Ltd) | ||||||
PT SHI Indonesia (Dormant) | 55 | % | Batam, Indonesia | |||
(100% owned by SHI International Pte. Ltd.) | ||||||
Trio-Tech (Tianjin) Co., Ltd. * | 100 | % | Tianjin, China | |||
* 100% owned by Trio-Tech International Pte. Ltd. | ||||||
The 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 financial statements and in the notes herein are United States dollars (‘‘U.S. dollars’’) unless otherwise designated. | ||||||
Liquidity– The Company earned net income of $57 for fiscal year 2014 and incurred a net loss of $1,019 for fiscal year 2013. | ||||||
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 United States dollar (“U.S. dollar”) is the functional currency of the U.S. parent company. The Singapore dollar, the national currency of Singapore, is the primary currency of the economic environment in which the operations in Singapore are conducted. The Company also operates in Malaysia, Thailand, China and Indonesia, of which the Malaysian ringgit, Thai baht, Chinese renminbi and Indonesian rupiah, are the national currencies. The Company uses the U.S. dollar for financial reporting purposes. | ||||||
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 statement of operations and comprehensive income (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 — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Among the more significant estimates included in these financial statements are the estimated allowance for doubtful accounts receivable, reserve for obsolete inventory, reserve for warranty, impairments and the deferred income tax asset allowance. Actual results could materially differ from those estimates. | ||||||
Revenue Recognition — Revenue derived from testing services is recognized when testing services are rendered. Revenues generated from sales 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 products sold (in the manufacturing segment) require installation and training to be performed. | ||||||
Revenue from product sales is also recorded in accordance with the provisions of ASC Topic 605 and Staff Accounting Bulletin (“SAB”) 104 Revenue Recognition in Financial Statements, which generally require revenue earned on product sales involving multiple-elements to be allocated to each element based on the relative fair values of those elements. Accordingly, the Company allocates revenue to each element in a multiple-element arrangement based on the element’s respective fair value, with the fair value determined by the price charged when that element is sold and specifically defined in a quotation or contract. The Company allocates a portion of the invoice value to products sold and the remaining portion of invoice value to installation work in proportion to the fair value of products sold and installation work to be performed. Training elements are valued based on hourly rates, which services the Company charges for when sold apart from product sales. The fair value determination of products sold and the installation and training work is also based on our specific historical experience of the relative fair values of the elements if there is no easily observable market price to be considered. In fiscal years 2014 and 2013, the installation revenues generated in connection with product sales were immaterial and were included in the product sales revenue line on the consolidated statements of operations and comprehensive income (loss). | ||||||
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 — The Company’s policy is to present taxes collected from customers and remitted to governmental authorities on a net basis. The Company records the amounts collected as a current liability and relieves such liability upon remittance to the taxing authority without impacting revenues or expenses. | ||||||
Accounts Receivable and Allowance for Doubtful Accounts — During the normal course of business, the Company extends unsecured credit to its customers in all segments. Typically, credit terms require payment to be made between 30 to 90 days from the date of the sale. The Company generally does not require collateral from our customers. | ||||||
The Company’s management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, 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, 2014 and 2013. | ||||||
Warranty Costs — The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded in its manufacturing segment. The Company estimates 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. | ||||||
Cash and Cash Equivalents — The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. | ||||||
Term Deposits — Term deposits consist of bank balances and interest bearing deposits having maturities of 4 to 12 months. As of June 30, 2014, the Company held approximately $102 of unrestricted term deposits in the Company’s 100% owned Thailand subsidiary, which were denominated in the currency of Thai baht, as compared to $104 as of June 30, 2013. | ||||||
Restricted Deposits — The Company held certain term deposits in the Singapore and Malaysia operations which were considered restricted as they were held as security against certain facility granted by the financial institutions. As of June 30, 2014 the Company held approximately $3,287 of restricted term deposits in the Company’s 100% owned Trio-Tech International Pte. Ltd., which were denominated in Singapore currency, and $254 of restricted term deposits in the Company’s 55% owned Malaysian subsidiary, which were denominated in the currency of Malaysia, as compared to June 30, 2013 when the Company held approximately $3,245 of restricted term deposits in the Company’s 100% owned Trio-Tech International Pte. Ltd., which were denominated in Singapore currency, and $249 of restricted term deposits in the Company’s 55% owned Malaysian subsidiary, which were denominated in the currency of Malaysia. | ||||||
Inventories — Inventories in the Company’s manufacturing and distribution segments consisting principally of raw materials, works in progress, and finished goods are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or market value. The semiconductor industry is characterized by rapid technological change, short-term customer commitments and rapid changes in demand. Provisions for estimated excess and obsolete inventory are based on our regular reviews of inventory quantities on hand and the latest forecasts of product demand and production requirements from our customers. Inventories are written down for not saleable, excess or obsolete raw materials, works-in-process and finished goods by charging such write-downs to cost of sales. In addition to write-downs based on newly introduced parts, statistics and judgments are used for assessing provisions of the remaining inventory based on salability and obsolescence. | ||||||
Property, Plant and Equipment & Investment Property — Property, plant and equipment and investment property are stated at cost, less accumulated depreciation and amortization. Depreciation is provided for over the estimated useful lives of the assets using the straight-line method. Amortization of leasehold improvements is provided for over the lease terms or the estimated useful lives of the assets, whichever is shorter, using the straight-line method. | ||||||
Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and improvements to the asset 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 (loss). | ||||||
Long-Lived Assets and Impairment – The Company’s business requires heavy investment in manufacturing facilities and equipment that are technologically advanced but can quickly become significantly under-utilized or rendered obsolete by rapid changes in demand. | ||||||
The Company evaluates the long-lived assets, including property, plant and equipment, 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 (“ASC Topic 360”) to property, plant and equipment. ASC Topic 360 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. | ||||||
Leases — The Company leases certain property, plant and equipment in the ordinary course of business. The leases have varying terms. Some may have included renewal and/or purchase options, escalation clauses, restrictions, penalties or other obligations that the Company considered in determining minimum lease payments. The leases were classified as either capital leases or operating leases, in accordance with ASC Topic 840, Accounting for Leases. The Company records monthly rental expense equal to the total amount of the payments due in the reporting period over the lease term in accordance with U.S. GAAP. The difference between rental expense recorded and the amount paid is credited or charged to deferred rent, which is included in accrued expenses in the accompanying consolidated balance sheets. | ||||||
The Company’s management expects that in the normal course of business, operating leases will be renewed or replaced by other leases. The future minimum operating lease payments, for which the Company is contractually obligated as of June 30, 2014, are disclosed in these notes to the consolidated financial statements. | ||||||
Assets under capital leases are capitalized using interest rates appropriate at the inception of each lease and are depreciated over either the estimated useful life of the asset or the lease term on a straight-line basis. The present value of the related lease payments is recorded as a contractual obligation. The future minimum annual capital lease payments are included in the total future contractual obligations as disclosed in the notes to the consolidated financial statements. | ||||||
Comprehensive Income (Loss) — ASC Topic 220, Reporting Comprehensive Income, establishes standards for reporting and presentation of comprehensive income (loss) and its components in a full set of general-purpose financial statements. The Company has chosen to report comprehensive income (loss) in the statements of operations and comprehensive income (loss). Comprehensive income (loss) is comprised of net income (loss) and all changes to shareholders’ equity except those due to investments by owners and distributions to owners. | ||||||
Income Taxes — The Company accounts for income taxes using the liability method in accordance with ASC Topic 740, Accounting for Income Taxes (“ASC Topic 740”). ASC Topic 740 requires an entity to recognize deferred tax liabilities and assets. Deferred tax assets and liabilities are recognized for the future tax consequence attributable to the difference between the tax bases of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in future years. Further, the effects of enacted tax laws or rate changes are included as part of deferred tax expenses or benefits in the period that covers the enactment date. | ||||||
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 United States 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 — It is the intention of the Company to reinvest earnings of its foreign subsidiaries in the operations of those subsidiaries. Accordingly, no provision has been made for U.S. income and foreign withholding taxes that would result if such earnings were repatriated. These taxes are undeterminable at this time. The amount of earnings retained in subsidiaries was $7,582 and $6,408 at June 30, 2014 and 2013, respectively. | ||||||
Research and Development Costs — The Company incurred research and development costs of $196 and $281 in fiscal year 2014 and in fiscal year 2013, respectively, which were charged to operating expenses as incurred. | ||||||
Stock Based Compensation — The Company adopted the fair value recognition provisions under ASC Topic 718, Share Based Payments (“ASC Topic 718”), using the modified prospective application method. Under this transition method, compensation cost recognized during the twelve months ended June 30, 2014 included the applicable amounts of: (a) compensation cost of all share-based payments granted prior to, but not yet vested as of July 1, 2005 (based on the grant-date fair value estimated in accordance with the original provisions of ASC Topic 718) and (b) compensation cost for all share-based payments granted subsequent to June 30, 2005. | ||||||
Earnings per Share — Computation of basic earnings per share is conducted by dividing net income available to common shares (numerator) by the weighted average number of common shares outstanding (denominator) during a reporting period. Computation of diluted earnings per share gives effect to all dilutive potential common shares outstanding during a reporting period. In computing diluted earnings per share, the average market price of common shares for a reporting period is used in determining the number of shares assumed to be purchased from the exercise of stock options. In fiscal year 2013, all the outstanding options were excluded in the computation of diluted EPS because they were anti-dilutive. | ||||||
Fair Values of Financial Instruments — Carrying values of trade accounts receivable, accounts payable, accrued expenses, and term deposits approximate their fair value due to their short-term maturities. Carrying values of the Company’s lines of credit and long-term debt are considered to approximate their fair value because the interest rates associated with the lines of credit and long-term debt are adjustable in accordance with market situations when the Company tries to borrow funds with similar terms and remaining maturities. See Note 22 for detailed discussion of the fair value measurement of financial instruments. | ||||||
ASC Topic 820, Fair Value Measurements and Disclosures (“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. Financial assets utilizing Level 3 inputs primarily include auction rate securities. We use an income approach valuation model to estimate the exit price of the auction rate securities, which is derived as the weighted-average present value of expected cash flows over various periods of illiquidity, using a risk adjusted discount rate that is based on the credit risk and liquidity risk of the securities. | ||||||
Concentration of Credit Risk — Financial instruments that subject the Company to credit risk compose accounts receivable. The Company performs ongoing credit evaluations of its customers for potential credit losses. The Company generally does not require collateral. The Company believes that its credit policies do not result in significant adverse risk and historically it has not experienced significant credit related losses. | ||||||
Investments - The Company analyzes its investments to determine if it is a variable interest entity (a “VIE”) and would require consolidation. The Company (a) evaluates the sufficiency of the total equity at risk, (b) reviews the voting rights and decision-making authority of the equity investment holders as a group, and whether there are any guaranteed returns, protection against losses, or capping of residual returns within the group and (c) establishes whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. The Company would consolidate an investment that is determined to be a VIE if it was the primary beneficiary. The primary beneficiary of a VIE is determined by a primarily qualitative approach, whereby the variable interest holder, if any, has the power to direct the VIE’s most significant activities and is the primary beneficiary. A new accounting standard became effective and changed the method by which the primary beneficiary of a VIE is determined by a primarily qualitative approach whereby the variable interest holder, if any, has the power to direct the VIE’s most significant activities and is the primary beneficiary. To the extent that the investment does not qualify as VIE, the Company further assesses the existence of a controlling financial interest under a voting interest model to determine whether the investment should be consolidated. | ||||||
Equity Method - The Company analyzes its investments to determine if they should be accounted for using the equity method. Management evaluates both Common Stock to determine and in-substance Common Stock whether they give the Company the ability to exercise significant influence over operating and financial policies of the investment even though the Company holds less than 50% of the Common Stock and in-substance Common Stock. The net income of the investment will be reported as “Equity in earnings of unconsolidated joint ventures, net of tax” in the Company’s consolidated statements of operations and comprehensive income (loss). | ||||||
Cost Method - Investee companies not accounted for under the consolidation or the equity method of accounting are accounted for under the cost method of accounting. Under this method, the Company’s share of the earnings or losses of such Investee companies is not included in the consolidated balance sheet or statement of operations and comprehensive income (loss). However, impairment charges are recognized in the consolidated statement of operations and comprehensive income (loss). If circumstances suggest that the value of the Investee company has subsequently recovered, such recovery is not recorded. | ||||||
Loan Receivables from Property Development Projects - The loan receivables from property development projects are classified as current assets, carried at face value and are individually evaluated for impairment. The allowance for loan losses reflects management’s best estimate of probable losses determined principally on the basis of historical experience and specific allowances for known loan accounts. All loans or portions thereof deemed to be uncollectible or to require an excessive collection cost are written off to the allowance for losses. | ||||||
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 - Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. | ||||||
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 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. | ||||||
Reclassification — Certain reclassification have been made to the previous year’s financial statements to conform to current year presentation, with no effect on previously reported net income. |
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended | ||
Jun. 30, 2014 | |||
Notes to Financial Statements | ' | ||
NEW ACCOUNTING PRONOUNCEMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||
The FASB has issued converged standards on revenue recognition. Specifically, the Board has issued the following document: | |||
· | FASB Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers: Topic 606 | ||
ASU 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. | |||
For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |||
The FASB has issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. | |||
Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. | |||
In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. | |||
The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. | |||
The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. For most nonpublic organizations, it is effective for annual financial statements with fiscal years beginning on or after December 15, 2014. Early adoption is permitted. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |||
The FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exists (a consensus of the FASB Emerging Issues Task Force). U.S. GAAP do not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward, except as follows. To the extent a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. | |||
This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |||
The FASB has published a new ASU that defers indefinitely certain disclosures about investments held by nonpublic employee benefit plans in their plan sponsors’ own nonpublic equity securities. The ASU was approved by the FASB on June 12, 2013. ASU No. 2013-09, Fair Value Measurement (Topic 820): Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update No. 2011-04, applies to disclosures of certain quantitative information about the significant unobservable inputs used in Level 3 fair value measurement for investments held by certain employee benefit plans. | |||
The deferral applies specifically to employee benefit plans, other than those plans that are subject to SEC filing requirements, which hold investments in their plan sponsors’ own nonpublic entity equity securities, including equity securities of their nonpublic affiliated entities. The deferral is effective immediately for all financial statements that have not yet been issued. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |||
The FASB has issued ASU No. 2013-05, Foreign Currency Matters (Topic 830) Parent’s Accounting for the Cumulative Translation Adjustment upon De-recognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. | |||
For an equity method investment that is a foreign entity, the partial sale guidance in Section 830-30-40 still applies. As such, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. However, this treatment does not apply to an equity method investment that is not a foreign entity. In those instances, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. | |||
Additionally, the amendments in this ASU clarify that the sale of an investment in a foreign entity includes both: (1) events that result in the loss of a controlling financial interest in a foreign entity (i.e., irrespective of any retained investment); and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. | |||
The FASB has issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. | |||
The new amendments will require an organization to: | |||
● Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. | |||
● Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | |||
The amendments apply to all public companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting period beginning after December 15, 2013, and for public companies early adoption is permitted. The adoption of this update did not have a significant effect on the Company’s consolidated financial position or results of operations. | |||
Other new pronouncements issued but not yet effective until after June 30, 2014 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |||
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
INVENTORIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
Inventories consisted of the following: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,165 | $ | 1,072 | |||||
Work in progress | 583 | 1,930 | |||||||
Finished goods | 184 | 356 | |||||||
Less: provision for obsolete inventory | (844 | ) | (912 | ) | |||||
Currency translation effect | 18 | 17 | |||||||
$ | 1,106 | $ | 2,463 | ||||||
The following table represents the changes in provision for obsolete inventory: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Beginning | $ | 912 | $ | 884 | |||||
Additions charged to expenses | - | 38 | |||||||
Usage - disposition | (76 | ) | (14 | ) | |||||
Currency translation effect | 8 | 4 | |||||||
Ending | $ | 844 | $ | 912 | |||||
STOCK_OPTIONS
STOCK OPTIONS | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
STOCK OPTIONS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||||||||||
On September 24, 2007, the Company’s Board of Directors unanimously adopted the 2007 Employee Stock Option Plan (the “2007 Employee Plan”) and the 2007 Directors Equity Incentive Plan (the “2007 Directors Plan”), each of which was approved by the shareholders on December 3, 2007. The Board amended each of those plans in 2010 to increase the number of shares covered thereby, which amendments were approved by the shareholders on December 14, 2010. At present, the 2007 Employee Plan provides for awards of up to 600,000 shares of the Company’s Common Stock to employees, consultants and advisors. The Board also amended the 2007 Directors Plan in November 2013 to further increase the number of shares covered thereby from 400,000 shares to 500,000 shares, which amendment was approved by the shareholders on December 9, 2013. The 2007 Directors Plan provides for awards of up to 500,000 shares of the Company’s Common Stock to the members of the Board of Directors in the form of non-qualified options and restricted stock. These two plans are administered by the Board, which also establishes the terms of the awards. | |||||||||||||||||
Assumptions | |||||||||||||||||
The fair value for the options granted were estimated using the Black-Scholes option pricing model with the following weighted average assumptions, assuming no expected dividends: | |||||||||||||||||
For the Year Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected volatility | 70.01-104.94 | % | 92.53 | % | |||||||||||||
Risk-free interest rate | 0.30% to 0.78 | % | 0.26 | % | |||||||||||||
Expected life (years) | 2.50-3.25 | 2.5 | |||||||||||||||
The expected volatilities are based on the historical volatility of the Company’s stock. The observation is made on a weekly basis. The observation period covered is consistent with the expected life of options. The expected life of the options granted to employees has been determined utilizing the “simplified” method as prescribed by ASC Topic 718, which, among other provisions, allowed companies without access to adequate historical data about employee exercise behavior to use a simplified approach for estimating the expected life of a "plain vanilla" option grant. The simplified rule for estimating the expected life of such an option was the average of the time to vesting and the full term of the option. The risk-free rate is consistent with the expected life of the stock options and is based on the United States Treasury yield curve in effect at the time of grant. | |||||||||||||||||
2007 Employee Stock Option Plan | |||||||||||||||||
The Company’s 2007 Employee Plan permits the grant of stock options to its employees covering up to an aggregate of 600,000 shares of Common Stock. Under the 2007 Employee Plan, all options must be granted with an exercise price of not less than fair value as of the grant date and the options granted must be exercisable within a maximum of ten years after the date of grant, or such lesser period of time as is set forth in the stock option agreements. The options may be exercisable (a) immediately as of the effective date of the stock option agreement granting the option, or (b) in accordance with a schedule related to the date of the grant of the option, the date of first employment, or such other date as may be set by the Compensation Committee. Generally, options granted under the 2007 Employee Plan are exercisable within five years after the date of grant, and vest over the period as follows: 25% vesting on the grant date and the remaining balance vesting in equal installments on the next three succeeding anniversaries of the grant date. The share-based compensation will be recognized in terms of the grade method on a straight-line basis for each separately vesting portion of the award. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2007 Employee Plan). | |||||||||||||||||
On September 17, 2013, stock options covering a total of 15,000 shares of the Company’s Common Stock were granted to certain employees pursuant to the 2007 Employee Plan, with an exercise price equal to the fair value of the Company’s Common Stock (as defined under the 2007 Employee Plan in conformity with Regulation 409A of the Internal Revenue Code of 1986, as amended) on September 17, 2013, the date of grant. These options vested as of the grant date. The fair value as of June 30, 2014 of the options to purchase 15,000 shares of the Company’s Common Stock was approximately $54 based on the fair value of $3.62 per share determined by using the Black-Scholes option pricing model. | |||||||||||||||||
On December 9, 2013, stock options covering a total of 35,000 shares of the Company’s Common Stock were granted to certain employees pursuant to the 2007 Employee Plan, with an exercise price equal to the fair value of the Company’s Common Stock (as defined under the 2007 Employee Plan in conformity with Regulation 409A of the Internal Revenue Code of 1986, as amended) as of that date. These stock options vest over the period as follows: 25% vesting on the grant date and the remaining balance vesting in equal installments on the next three succeeding anniversaries of the grant date. The fair value as of June 30, 2014 of the options to purchase 35,000 shares of the Company’s Common Stock was approximately $109 based on the fair value of $3.10 per share determined by using the Black-Scholes option pricing model. | |||||||||||||||||
Stock options to purchase 126,500 shares of its Common Stock were exercised during the year ended June 30, 2014. The total proceeds received were $239. The Company recognized stock-based compensation expenses of $41 in fiscal year ended June 30, 2014 under the 2007 Employee Plan. The balance of unamortized stock-based compensation of $43 based on fair value on the grant date related to options granted under the 2007 Employee Plan is to be recognized over a period of three years. | |||||||||||||||||
The Company did not grant any options pursuant to the 2007 Employee Plan during the year ended June 30, 2013. There were no options exercised during the twelve months ended June 30, 2013. The Company recognized stock-based compensation expenses of $25 in the year ended June 30, 2013 under the 2007 Employee Plan. The balance of unamortized stock-based compensation of $7 based on fair value on the grant date related to options granted under the 2007 Employee Plan is expected to be recognized over a period of one year. | |||||||||||||||||
As of June 30, 2014, there were vested employee stock options covering a total of 103,750 shares of Common Stock. The weighted-average exercise price was $4.14 and the weighted average contractual term was 2.10 years. The total fair value of vested employee stock options was $429 and remains outstanding as of June 30, 2014. | |||||||||||||||||
As of June 30, 2013, there were vested employee stock options covering a total of 243,125 shares of Common Stock. The weighted-average exercise price was $2.95 and the weighted average contractual term was 1.49 years. The total fair value of vested and outstanding employee stock options as of June 30, 2013 was $485. | |||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the twelve month period ended June 30, 2014 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2013 | 263,500 | $ | 3.06 | 1.57 | $ | - | |||||||||||
Granted | 50,000 | 3.26 | - | - | |||||||||||||
Exercised | (126,500 | ) | (1.89 | ) | - | - | |||||||||||
Forfeited or expired | (57,000 | ) | (3.81 | ) | - | - | |||||||||||
Outstanding at June 30, 2014 | 130,000 | $ | 3.93 | 2.57 | $ | 13 | |||||||||||
Exercisable at June 30, 2014 | 103,750 | $ | 4.14 | 2.1 | $ | 3 | |||||||||||
The aggregate intrinsic value of the 126,500 shares of common stock upon exercise of options was $175. | |||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2013 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2012 | 313,000 | $ | 3.85 | 2.31 | $ | - | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | (49,500 | ) | (8.06 | ) | - | - | |||||||||||
Outstanding at June 30, 2013 | 263,500 | $ | 3.06 | 1.57 | $ | 122 | |||||||||||
Exercisable at June 30, 2013 | 243,125 | $ | 2.95 | 1.49 | $ | 122 | |||||||||||
A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2014 is presented below: | |||||||||||||||||
Weighted Average Grant-Date | |||||||||||||||||
Options | Fair Value | ||||||||||||||||
Non-vested at July 1, 2013 | 20,375 | $ | 3.26 | ||||||||||||||
Granted | 50,000 | 1.65 | |||||||||||||||
Vested | (44,125 | ) | (2.33 | ) | |||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at June 30, 2014 | 26,250 | $ | 1.69 | ||||||||||||||
A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 31, 2013 is presented below: | |||||||||||||||||
Weighted Average Grant-Date | |||||||||||||||||
Options | Fair Value | ||||||||||||||||
Non-vested at July 1, 2012 | 43,250 | $ | 3.29 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | (21,375 | ) | (3.16 | ) | |||||||||||||
Forfeited | (1,500 | ) | (3.16 | ) | |||||||||||||
Non-vested at June 30, 2013 | 20,375 | $ | 3.26 | ||||||||||||||
2007 Directors Equity Incentive Plan | |||||||||||||||||
The 2007 Directors Plan permits the grant of options covering up to an aggregate of 500,000 shares of Common Stock to its non-employee directors in the form of non-qualified options and restricted stock. The exercise price of the non-qualified options is 100% of the fair value of the underlying shares on the grant date. The options have five-year contractual terms and are generally exercisable immediately as of the grant date. | |||||||||||||||||
During the twelve months ended June 30, 2014, the Company granted options to purchase (a) 60,000 shares of its Common Stock to our directors pursuant to the 2007 Directors Plan with an exercise price equal to the fair market value of our Common Stock (as defined under the 2007 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) on September 17, 2013, the date of grant thereof, and (b) 40,000 shares of its Common Stock to our directors pursuant to the 2007 Directors Plan with an exercise price equal to the fair market value of our Common Stock (as defined under the 2007 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) on December 9, 2013, the date of grant thereof. The fair value of the options granted to purchase 60,000 shares of the Company's Common Stock was $217 based on the grant date fair value of $3.62 per share determined by the Black-Scholes option pricing model. The fair value of the options granted to purchase 40,000 shares of the Company's Common Stock was $124 based on the grant date fair value of $3.10 per share determined by the Black Scholes option pricing mode. | |||||||||||||||||
Stock options to purchase 65,000 shares of its Common Stock were exercised during the twelve-month period ended June 30, 2014. The total proceeds received were $112. The Company recognized stock-based compensation expenses of $175 in the twelve-month period ended June 30, 2014 under the 2007 Directors Plan. | |||||||||||||||||
During the twelve months ended June 30, 2013, the Company granted options to purchase 15,000 shares of its Common Stock to our directors pursuant to the 2007 Directors Plan with an exercise price equal to the fair market value of our Common Stock (as defined under the 2007 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) at the date of grant. The fair value of the options granted to purchase 15,000 shares of the Company's Common Stock was approximately $17 based on the fair value of $1.11 per share determined by the Black Scholes option pricing model. There were no options exercised during the twelve month period ended June 30, 2013. The Company recognized stock-based compensation expense of $17 in the twelve-month period ended June 30, 2013 under the 2007 Directors Plan. | |||||||||||||||||
As of June 30, 2014, there were vested director stock options covering a total of 315,000 shares of Common Stock. The weighted-average exercise price was $3.62 and the weighted average remaining contractual term was 2.63 years. The total fair value of vested directors' stock options as of June 30, 2014 was $24. All of our director stock options vest immediately at the date of grant. There were no unvested director stock options as of June 30, 2014. | |||||||||||||||||
As of June 30, 2013, there were vested director stock options covering a total of 350,000 shares of Common Stock. The weighted-average exercise price was $3.53 and the weighted average remaining contractual term was 1.96 years. The total fair value of vested directors' stock options as of June 30, 2013 was $715. All of our director stock options vest immediately at the date of grant. There were no unvested director stock options as of June 30, 2013. | |||||||||||||||||
A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2014 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2013 | 350,000 | $ | 3.53 | 1.96 | $ | 80 | |||||||||||
Granted | 100,000 | 3.41 | 4.31 | - | |||||||||||||
Exercised | -65,000 | 1.72 | - | 98 | |||||||||||||
Forfeited or expired | (70,000 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at June 30, 2014 | 315,000 | $ | 3.62 | 2.63 | $ | 24 | |||||||||||
Exercisable at June 30, 2014 | 315,000 | $ | 3.62 | 2.63 | $ | 24 | |||||||||||
A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2013 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2012 | 385,000 | $ | 4.52 | 2.45 | $ | - | |||||||||||
Granted | 15,000 | 2.07 | 4.72 | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | (50,000 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at June 30, 2013 | 350,000 | $ | 3.53 | 1.96 | $ | - | |||||||||||
Exercisable at June 30, 2013 | 350,000 | $ | 3.53 | 1.96 | $ | - | |||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
EARNINGS PER SHARE (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
The Company adopted ASC Topic 260, Earnings Per Share. Basic earnings per share (“EPS”) are computed by dividing net income available to common shareholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential common shares outstanding during a period. In computing diluted EPS, the average price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants. | |||||||||
Options to purchase 445,000 shares of Common Stock at exercise prices ranging from $2.07 to $4.35 per share were outstanding as of June 30, 2014. | |||||||||
Options to purchase 613,500 shares of Common Stock at exercise prices ranging from $1.72 to $9.57 per share were outstanding as of June 30, 2013. All the outstanding options were excluded in the computation of diluted EPS for fiscal year 2013 since 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, | |||||||||
2014 | 2013 | ||||||||
Income / (loss) attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ | 81 | $ | (671 | ) | ||||
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | $ | (24 | ) | $ | (348 | ) | |||
Net income/(loss) attributable to Trio-Tech International common shareholders | $ | 57 | $ | (1,019 | ) | ||||
Basic and diluted earnings/(loss) per share from continuing operations attributable to Trio-Tech International | $ | 0.02 | $ | (0.20 | ) | ||||
Basic and diluted (loss) per share from discontinued operations attributable to Trio-Tech International | $ | (0.01 | ) | $ | (0.11 | ) | |||
Basic and diluted earnings/(loss) per share from net income/(loss) attributable to Trio-Tech International | $ | 0.01 | $ | (0.31 | ) | ||||
Weighted average number of common shares outstanding - basic | 3,513 | 3,322 | |||||||
Dilutive effect of stock options | 36 | - | |||||||
Number of shares used to compute earnings per share - diluted | 3,549 | 3,322 |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||||
For the Year Ended June 30, | ||||||||||
Estimated Useful Life in Years | 2014 | 2013 | ||||||||
Building and improvements | 20-Mar | $ | 5,042 | $ | 4,999 | |||||
Leasehold improvements | 27-Mar | 5,403 | 4,869 | |||||||
Machinery and equipment | 7-Mar | 20,158 | 20,719 | |||||||
Furniture and fixtures | 5-Mar | 658 | 1,096 | |||||||
Equipment under capital leases | 5-Mar | 674 | 545 | |||||||
Currency translation effect for fixed assets, gross | (251 | ) | 335 | |||||||
$ | 31,684 | $ | 32,563 | |||||||
Less: | ||||||||||
Accumulated depreciation | $ | (17,853 | ) | $ | -19,155 | |||||
Accumulated amortization on equipment under capital leases | (370 | ) | -422 | |||||||
Currency translation effect | 80 | -135 | ||||||||
Property, plant and equipment, net | $ | 13,541 | $ | 12,851 | ||||||
Depreciation and amortization expenses for property, plant and equipment during fiscal year 2014 and 2013 were $2,294 and $2,491, respectively. | ||||||||||
ACCOUNTS_RECEIVABLE_AND_ALLOWA
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
Accounts receivable 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 accounts receivable on a periodical basis to determine if any receivables will potentially be uncollectible. Management includes any accounts receivable balances that are determined to be uncollectible in the allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to us, management believed the allowance for doubtful accounts as of June 30, 2014 and June 30, 2013 was adequate. | |||||||||
The following table represents the changes in the allowance for doubtful accounts: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Beginning | $ | 139 | $ | 122 | |||||
Additions charged to expenses | 303 | 196 | |||||||
(Recovered) / (Write-off) | (2 | ) | (131 | ) | |||||
Currency translation effect | (2 | ) | (48 | ) | |||||
Ending | $ | 438 | $ | 139 |
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accrued Expenses | ' | ||||||||
ACCRUED EXPENSES | ' | ||||||||
Accrued expenses consisted of the following: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Payroll and related costs | 1,096 | 1,022 | |||||||
Commissions | 47 | 10 | |||||||
Customer deposits | 79 | 89 | |||||||
Legal and audit | 177 | 136 | |||||||
Sales tax | 120 | 76 | |||||||
Utilities | 156 | 138 | |||||||
Warranty | 60 | 61 | |||||||
Accrued purchase of materials and fixed assets | 358 | 1,033 | |||||||
Provision for re-instatement | 367 | 360 | |||||||
Other accrued expenses | 602 | 230 | |||||||
Currency translation effect | (16 | ) | (95 | ) | |||||
Total | $ | 3,046 | $ | 3,060 | |||||
WARRANTY_ACCRUAL
WARRANTY ACCRUAL | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
WARRANTY ACCRUAL (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded. The Company provides warranty for products manufactured in the term of one year. The Company estimates the warranty costs based on the historical rates of warranty returns. The Company periodically assesses the adequacy of its recorded warranty liability and records the amounts as necessary. | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Beginning | $ | 61 | $ | 60 | |||||
Additions charged to cost and expenses | 23 | 1 | |||||||
Recovered | (25 | ) | - | ||||||
Currency translation effect | 1 | - | |||||||
Ending | $ | 60 | $ | 61 | |||||
BANK_LOANS_PAYABLE
BANK LOANS PAYABLE | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
BANK LOANS PAYABLE (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
Bank loans payable consisted of the following: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Note payable denominated in Singapore dollars to a commercial bank for expansion plans in Singapore and China, bearing interest at the bank’s prime rate plus 1.50% (4.75% at June 30, 2014 and 2013), with monthly payments of principal plus interest of $54 through December 2014. This note payable is secured by equipment with a carrying value of $469 and $537 on the consolidated balance sheet. | 260 | 885 | |||||||
Note payable denominated in Malaysian ringgit to a commercial bank for expansion plans in Malaysia, maturing in August 2024, bearing interest at the bank’s lending rate (5.35% at June 30, 2014 and 2013), with monthly payments of principal plus interest of $23 through August 2024 in fiscal year 2014, and $29 through August 2024 in fiscal year 2013. This loan payable is secured by a charge on the property in Malaysia with a carrying value of $3,748 and $4,252 as at June 30, 2014 and 2013, respectively. | 2,786 | 2,498 | |||||||
Current portion | (448 | ) | (770 | ) | |||||
Long term portion of bank loans payable | $ | 2,598 | $ | 2,613 | |||||
Future minimum payments (excluding interest) as of June 30, 2014 were as follows: | |||||||||
2015 | $ | 448 | |||||||
2016 | 198 | ||||||||
2017 | 209 | ||||||||
2018 | 220 | ||||||||
2019 | 138 | ||||||||
Thereafter | 1,833 | ||||||||
Total obligations and commitments | $ | 3,046 | |||||||
Future minimum payments (excluding interest) as of June 30, 2013 were as follows: | |||||||||
2014 | $ | 770 | |||||||
2015 | 413 | ||||||||
2016 | 161 | ||||||||
2017 | 169 | ||||||||
2018 | 178 | ||||||||
Thereafter | 1,692 | ||||||||
Total obligations and commitments | $ | 3,383 | |||||||
ADOPTION_OF_ASC_TOPIC_740
ADOPTION OF ASC TOPIC 740 | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Adoption Of Asc Topic 740 | ' | ||||
ADOPTION OF ASC TOPIC 740 | ' | ||||
The Company adopted ASC Topic 740, Accounting for Income Taxes - Interpretation of Topic 740. | |||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||
Balance at July 1, 2012 | $ | (249 | ) | ||
Additions based on current year tax positions | - | ||||
Additions for prior year(s) tax positions | (1 | ) | |||
Reductions for prior year(s) tax positions | - | ||||
Settlements | - | ||||
Expiration of statute of limitations | - | ||||
Balance at June 30, 2013 | $ | (250 | ) | ||
Additions based on current year tax positions | - | ||||
Additions for prior year(s) tax positions | - | ||||
Reductions for prior year(s) tax positions | - | ||||
Settlements | - | ||||
Expiration of statute of limitations | - | ||||
Settlements | - | ||||
Balance at June 30, 2014 | $ | (250 | ) | ||
The Company accrues penalties and interest on unrecognized tax benefits as a component of penalties and interest expense, respectively. The Company has not accrued any penalties or interest expense relating to the unrecognized benefits at June 30, 2014 and June 30, 2013. | |||||
The major tax jurisdictions in which the Company files income tax returns are the United States of America, Singapore, Malaysia, China and Indonesia. The statute of limitations, in general, is open for years 2004 to 2014 for tax authorities in those jurisdictions to audit or examine income tax returns. The Company is under annual review by the governments of Singapore, Malaysia, China and Indonesia. However, the Company is not currently under tax examination in any other jurisdiction. | |||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
INCOME TAXES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
On a consolidated basis, the Company’s net income tax provisions (benefits) were as follows: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | - | $ | - | |||||
State | 5 | 2 | |||||||
Foreign | (175 | ) | (956 | ) | |||||
$ | (170 | ) | $ | (954 | ) | ||||
Deferred: | |||||||||
Federal | $ | - | $ | - | |||||
State | - | - | |||||||
Foreign | (174 | ) | 694 | ||||||
(174 | ) | 694 | |||||||
Total provision | $ | (344 | ) | $ | (260 | ) | |||
The reconciliation between the U.S. federal tax rate and the effective income tax rate was as follows: | |||||||||
Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Statutory federal tax rate | (34 | )% | (34 | )% | |||||
State taxes, net of federal benefit | (6 | ) | (6 | ) | |||||
Foreign tax related to profits making subsidiaries | (400 | ) | (1 | ) | |||||
NOL Expiration | 5 | 0 | |||||||
Other | 5 | 5 | |||||||
Changes in valuation allowance | 95 | 0 | |||||||
Effective rate | (335 | )% | (41 | )% | |||||
At June 30, 2014, the Company had net operating loss carry forwards of approximately $459 and $931 for federal and state tax purposes, respectively, expiring through 2023. The Company also had tax credit carry forwards of approximately $834 for federal income tax purposes expiring through 2032. 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 has been established. | |||||||||
The components of deferred income tax assets (liabilities) were as follows: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating losses and credits | $ | 1,572 | $ | 956 | |||||
Inventory valuation | 99 | 99 | |||||||
Depreciation | - | - | |||||||
Provision for bad debts | 788 | 3 | |||||||
Accrued vacation | 15 | 16 | |||||||
Capital loss | 78 | - | |||||||
Accrued expenses | 217 | 135 | |||||||
Investment in subsidiaries | 182 | - | |||||||
Deferred Income | 201 | - | |||||||
Other | 112 | 3 | |||||||
Total deferred tax assets | $ | 3,264 | $ | 1,212 | |||||
Deferred tax liabilities: | |||||||||
Accrued expenses | (10 | ) | - | ||||||
Depreciation | (192 | ) | (191 | ) | |||||
Other | - | - | |||||||
Total deferred income tax liabilities | $ | (202 | ) | $ | (191 | ) | |||
Subtotal | 3,062 | 1,019 | |||||||
Valuation allowance | (2,876 | ) | (1,007 | ) | |||||
Net deferred tax assets | $ | 186 | $ | 12 | |||||
Presented as follows in the balance sheets: | |||||||||
Deferred tax assets | 388 | 203 | |||||||
Deferred tax liabilities | (202 | ) | (191 | ) | |||||
Net deferred tax assets | $ | 186 | $ | 12 | |||||
The valuation allowance was increased by $1,869 in fiscal year 2014 and decreased by $134 in fiscal year years 2014 and 2013, respectively. | |||||||||
For U.S. income tax purposes no provision has been made for U.S. taxes on undistributed earnings amounting to $1,152 and $1,026 as at June 30, 2014 and 2013, respectively, of overseas subsidiaries with which the Company intends to continue to reinvest. It is not practicable to estimate the amount of additional tax that might be payable on the foreign earnings if they were remitted as dividends or lent to the Company, or if the Company should sell its stock in the subsidiary. However, the Company believes that the existing U.S. foreign tax credits and net operating losses available would substantially eliminate any additional tax effects. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
COMMITMENTS AND CONTINGENCIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||||||||||
The Company leases certain of its facilities and equipment under long-term agreements expiring at various dates through fiscal year 2015 and thereafter. Certain of these leases require the Company to pay real estate taxes and insurance and provide for escalation of lease costs based on certain indices. | |||||||||||||||||
Future minimum payments under capital leases and non-cancelable operating leases and net rental income under non-cancelable sub-leased properties as of June 30, 2014 were as follows: | |||||||||||||||||
Capital | Operating | Sub-lease Rental | Net Operating | ||||||||||||||
For the Year Ending June 30, | Leases | Leases | (Income) | Leases | |||||||||||||
2015 | $ | 81 | $ | 710 | $ | (111 | ) | $ | 599 | ||||||||
2016 | 85 | 795 | (130 | ) | 665 | ||||||||||||
2017 | 83 | 600 | (42 | ) | 558 | ||||||||||||
Thereafter | 32 | 3,001 | (18 | ) | 2,983 | ||||||||||||
Total future minimum lease payments | $ | 281 | $ | 5,106 | $ | (301 | ) | $ | 4,805 | ||||||||
Less amount representing interest | - | ||||||||||||||||
Present value of net minimum lease payments | 281 | ||||||||||||||||
Less current portion of capital lease obligations | (81 | ) | |||||||||||||||
Long-term obligations under capital leases | 200 | ||||||||||||||||
Future minimum payments under capital leases and non-cancelable operating leases and net rental income under non-cancelable sub-leased properties as of June 30, 2013 were as follows: | |||||||||||||||||
Capital | Operating | Sub-lease Rental | Net Operating | ||||||||||||||
For the Year Ending June 30, | Leases | Leases | (Income) | Leases | |||||||||||||
2014 | $ | 105 | $ | 723 | $ | (32 | ) | $ | 691 | ||||||||
2015 | 68 | 639 | - | 639 | |||||||||||||
2016 | 72 | 666 | - | 666 | |||||||||||||
Thereafter | 88 | 1,057 | - | 1,057 | |||||||||||||
Total future minimum lease payments | $ | 333 | $ | 3,085 | $ | (32 | ) | $ | 3,053 | ||||||||
Less amount representing interest | - | ||||||||||||||||
Present value of net minimum lease payments | 333 | ||||||||||||||||
Less current portion of capital lease obligations | (105 | ) | |||||||||||||||
Long-term obligations under capital leases | 228 | ||||||||||||||||
The Company purchased equipment under the capital lease agreements with rates ranging from 1.88% to 4.30%. These agreements mature ranging from July 2013 to June 2018. | |||||||||||||||||
The sublease agreement of the Penang property expired in November 2012 and was not renewed due to the fact that the operation in Malaysia planned to sell the factory building. The sublease agreement of the Petaling Jaya Plant II property will expire in November 2013. However, the lease of the Petaling Jaya Plant II property was terminated on July 31, 2013 without any penalties or cost to the Company. Total net income from rental generated from subleases amounted to $1 in fiscal year 2014 and $9 in fiscal year 2013, since the rental for fiscal year 2014 was only for a single month, as the rental agreement was terminated in July 2013. | |||||||||||||||||
Total rental expense on all operating leases, cancelable and non-cancelable, amounted to $687 in fiscal year 2014 and $941 in fiscal year 2013. | |||||||||||||||||
Trio-Tech (Malaysia) Sdn. Bhd. has capital lease for the purchase of equipment and other related infrastructure costs amounting to Malaysia Ringgit 601, or approximately $184 based on the exchange rate on June 30, 2014 published by the Monetary Authority of Singapore. | |||||||||||||||||
Trio-Tech (Tianjin) Co. Ltd has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RMB 2,199, or approximately $353 based on the exchange rate as of June 30, 2014 published by the Monetary Authority of Singapore. | |||||||||||||||||
Deposits with banks in China are not insured by the local government or agency, and are consequently exposed to risk of loss. The Company believes the probability of a bank failure, causing loss to the Company, is remote. | |||||||||||||||||
The Company is, from time to time, the subject of litigation claims and assessments arising out of matters occurring in its normal business operations. In the opinion of management, resolution of these matters will not have a material adverse effect on the Company’s financial statements. |
CONCENTRATION_OF_CUSTOMERS
CONCENTRATION OF CUSTOMERS | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Concentration Of Customers | ' | ||||||||
CONCENTRATION OF CUSTOMERS | ' | ||||||||
The Company had one major customer that accounted for the following accounts receivable and sales during the fiscal years ended: | |||||||||
Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Sales | |||||||||
- Customer A | 60.6 | % | 62.3 | % | |||||
Accounts Receivable | |||||||||
- Customer A | 74.3 | % | 66.4 | % | |||||
INVESTMENT_PROPERTIES
INVESTMENT PROPERTIES | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Notes to Financial Statements | ' | |||||||||
INVESTMENT PROPERTIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | |||||||||
The following table presents the Company’s investment properties in China as of June 30, 2014. The exchange rate is based on the exchange rate as of June 30, 2014 published by the Monetary Authority of Singapore. | ||||||||||
Investment | Investment Amount | |||||||||
Amount | ||||||||||
Investment Date | (RMB) | (U.S. Dollars) | ||||||||
Purchase of Property I – MaoYe | 4-Jan-08 | 5,554 | 904 | |||||||
Purchase of Property II – JiangHuai | 6-Jan-10 | 3,600 | 586 | |||||||
Purchase of Property III – FuLi | 8-Apr-10 | 4,025 | 655 | |||||||
Currency Translation | - | (23 | ) | |||||||
Gross investment in rental property | 13,179 | 2,122 | ||||||||
Accumulated depreciation on rental property | 30-Jun-14 | (2,961 | ) | (476 | ) | |||||
Net investment in properties – China | 10,218 | 1,646 | ||||||||
The following table presents the Company’s investment properties in China as of June 30, 2013. | ||||||||||
Investment | Investment Amount | |||||||||
Amount | ||||||||||
Investment Date | (RMB) | (U.S. Dollars) | ||||||||
Purchase of Property I – MaoYe | 4-Jan-08 | 5,554 | 904 | |||||||
Purchase of Property II – JiangHuai | 6-Jan-10 | 3,600 | 586 | |||||||
Purchase of Property III – FuLi | 8-Apr-10 | 4,025 | 655 | |||||||
Gross investment in rental property | 13,179 | 2,145 | ||||||||
Accumulated depreciation on rental property | 30-Jun-13 | (2,302 | ) | (375 | ) | |||||
Net investment in properties – China | 10,877 | 1,770 | ||||||||
The following table presents the Company’s investment properties in Malaysia as of June 30, 2014. The exchange rate is based on the exchange rate as of June 30, 2014 published by the Monetary Authority of Singapore. | ||||||||||
Investment | Investment Amount | |||||||||
Amount | ||||||||||
Investment Date | (RM) | (U.S. Dollars) | ||||||||
Reclassification of Penang Property I | 31-Dec-12 | 681 | 212 | |||||||
Gross investment in rental property | 681 | 212 | ||||||||
Accumulated depreciation on rental property | 30-Jun-14 | (300 | ) | (93 | ) | |||||
Net investment in rental properties - Malaysia | 381 | 119 | ||||||||
The following table presents the Company’s investment properties in Malaysia as of June 30, 2013. | ||||||||||
Investment | Investment Amount | |||||||||
Amount | ||||||||||
Investment Date | (RM) | (U.S. Dollars) | ||||||||
Reclassification of Penang Property I | 31-Dec-12 | 681 | 214 | |||||||
Gross investment in rental property | 681 | 214 | ||||||||
Accumulated depreciation on rental property | 30-Jun-13 | (294 | ) | (91 | ) | |||||
Net investment in rental properties - Malaysia | 387 | 123 | ||||||||
Rental Property I | ||||||||||
In fiscal year 2008, Trio-Tech (Chongqing) Co. Ltd. (“TTCQ”) entered into a Memorandum Agreement with MaoYe Property Ltd. to purchase an office space in Chongqing, China for a total cash purchase price of RMB 5,554, or approximately $904 based on the exchange rate as of June 30, 2014 published by the Monetary Authority of Singapore. TTCQ rented this property to a third party on July 13, 2008. The term of the rental agreement was five years. The rental agreement was renewed on July 16, 2013 for a further period of five years. The rental agreement provides for a rent increase of 8% every year after July 15, 2015. The renewed agreement expires on July 15, 2018. | ||||||||||
Property purchased from MaoYe generated a rental income of $115 for the year ended June 30, 2014, and $86 for the same period in the last fiscal year. | ||||||||||
Rental Property II | ||||||||||
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 $586 based on the exchange rate as of June 30, 2014 published by the Monetary Authority of Singapore. The title deeds for these properties are yet to be received. TTCQ rented these commercial units to a third party until the lease agreement expired in January 2012. TTCQ then rented three of the eight commercial units to another party during the fourth quarter of fiscal year 2013 under a rental agreement that expired on March 31, 2014. TTCQ is actively looking for suitable tenants for the eight units. | ||||||||||
Property purchased from JiangHuai generated a rental income of $13 for the year ended June 30, 2014 and $3 for the same period in the last fiscal year. | ||||||||||
Other Properties III – FuLi | ||||||||||
In fiscal year 2010, TTCQ entered into a Memorandum Agreement with Chongqing Fu Li Real Estate Development Co. Ltd. (“FuLi”) to purchase two commercial properties totaling 311.99 square meters (“office space”) located in Jiang Bei District Chongqing. Although TTCQ currently rents its office premises from a third party, it intends to use the purchased office space as its office premises. The total purchase price committed and paid was RMB 4,025, or approximately $655 based on the exchange rate as of June 30, 2014 published by the Monetary Authority of Singapore. The development was completed and the property was handed over during April 2012 and the title deed was received during the third quarter of fiscal year 2013. One of the two rental agreements expired in April 2014 and the other will expire in August 2014. For the unit for which the agreement expired in April 2014, a new tenant was identified and a new agreement has been executed, which expires on April 30, 2017. The new agreement carries an increase in rental of 20% in the first year, as compared to the expired rental agreement. Thereafter the rental increases by approximately 10% for the subsequent years until April 2017. | ||||||||||
Property purchased from FuLi generated a rental income of $49 for the year ended June 30, 2014, and $43 for the same period in the last fiscal year. | ||||||||||
Penang Property I | ||||||||||
Since the market value of the factory building in Penang, Malaysia is increasing significantly, during the second quarter of fiscal year 2013 Trio-Tech Malaysia (“TTM”) changed its plans to sell the factory building and decided to hold that as an investment rental property. Hence, TTM re-classified the factory building to investment property at the end of the second quarter of fiscal year 2013, which had a net book value of $119. In fiscal year 2014 the depreciation expenses were $2, as compared to a depreciation of $7 in fiscal year 2013. | ||||||||||
Summary | ||||||||||
Total rental income for all investment properties (Property I, II and III) in China was $177 for the year ended June 30, 2014, and was $132 for the same period in the last fiscal year. | ||||||||||
Rental income from the Penang property was nil for the year ended June 30, 2014 and 2013 as the property in Penang, Malaysia is vacant at the date of this report. TTM is in the process of identifying a suitable tenant. | ||||||||||
Depreciation expenses for all investment properties in China and Malaysia were $109 for the year ended June 30, 2014, and were $112 for the same period in the last fiscal year. |
LOAN_RECEIVABLE_FROM_PROPERTY_
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Notes to Financial Statements | ' | |||||||||
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | |||||||||
The following table presents TTCQ’s loans receivable from property development projects in China as of June 30, 2014. The exchange rate is based on the rate published by the Monetary Authority of Singapore as on June 30, 2014. | ||||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Short-term loan receivables | Date | (RMB) | (U.S. Dollars) | |||||||
Investment in JiangHuai (Project - Yu Jin Jiang An) | 31-May-13 | 2,000 | 325 | |||||||
Less: Allowance for impairment | (2,000 | ) | (325 | ) | ||||||
Net short-term loans receivables from property development projects | - | - | ||||||||
Long-term loan receivables | ||||||||||
Investment in Jun Zhou Zhi Ye | Oct 31, 2016 | 5,000 | 805 | |||||||
Net long-term loans receivables from property development projects | 5,000 | 805 | ||||||||
The following table presents TTCQ’s loans receivable from property development projects in China as of June 30, 2013. | ||||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Short-term loan receivables | Date | (RMB) | (U.S. Dollars) | |||||||
Investment in JiaSheng Property Development Co. Ltd. | 30-Nov-13 | 5,000 | 814 | |||||||
Investment in JiangHuai (Project - Yu Jin Jiang An) | 31-May-13 | 2,000 | 325 | |||||||
Net short-term loan receivables from property development projects | 7,000 | 1,139 | ||||||||
On November 1, 2010, TTCQ entered into a Memorandum Agreement with JiaSheng Property Development Co. Ltd. (“JiaSheng”) to invest in their property development projects (Project B-48 Phase 2) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310-10-25 Receivables, amounting to RMB 5,000, or approximately $805 based on the exchange rate as at June 30, 2014 published by the Monetary Authority of Singapore. The agreement guaranteed TTCQ an income of RMB 1,250, or approximately $196, payable in four installments of RMB 313, or approximately $51. The amount is unsecured and repayable at the end of the term. The loan was renewed in November 2011 for a period of one year, which expired on October 31, 2012, and was renewed in November 2012 and expired in November 2013. On November 1, 2013 the loan was transferred by JiaSheng to, and is now payable by, Chong Qing Jun Zhou Zhi Ye Co. Ltd. (“Jun Zhou Zhi Ye”) and the transferred agreement expires on October 31, 2016. Hence the loan receivable has been reclassified as a long-term loan receivable. The book value of the loan receivable approximates its fair value. TTCQ recorded other income of $202 for the year ended June 30, 2014, as compared to $200 for the year ended June 30, 2013. | ||||||||||
On November 1, 2010, TTCQ entered into another Memorandum Agreement with JiangHuai Property Development Co. Ltd. (“JiangHuai”) to invest in their property development projects (Project - Yu Jin Jiang An) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310-10-25 Receivables, amounting to RMB 2,000, or approximately $322 based on the exchange rate as at June 30, 2014 published by the Monetary Authority of Singapore. The agreement guaranteed TTCQ an income of $66, payable in 12 installments of RMB 33, or approximately $5. The amount is secured by the underlying property and repayable at the end of the term. The loan was renewed, but expired on May 31, 2013. TTCQ is in the legal process of recovering the outstanding amount of $325. TTCQ did not generate other income from JiangHuai for the year ended June 30, 2014, while it recorded other income of $59 for the same period in the last fiscal year. An impairment of $325 was recorded during the second quarter of fiscal year 2014. |
INVESTMENT
INVESTMENT | 12 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
INVESTMENT (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' |
During the second quarter of fiscal year 2011, the Company entered into a joint-venture agreement with JiaSheng to develop real estate projects in China. The Company invested RMB 10,000, or approximately $1,606 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore, for a 10% interest in the newly formed joint venture, which was incorporated as a limited liability company, Chong Qing Jun Zhou Zhi Ye Co. Ltd. (the “joint venture”), in China. The agreement stipulated that the Company would nominate two of the five members of the Board of Directors of the joint venture and had the ability to assign two members of management to the joint venture. The agreement also stipulated that the Company would receive a fee of RMB 10,000, or approximately $1,606 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore, for the services rendered in connection with obtaining priority to bid in certain real estate projects from the local government. Upon signing of the agreement, JiaSheng paid the Company RMB 5,000 in cash, or approximately $803 based on the exchange rate published by the Monetary Authority of Singapore as of March 31, 2014. The remaining RMB 5,000 would be paid over 72 months commencing in 36 months from the date of the agreement when the joint venture secured a property development project stated inside the joint venture agreement. The Company considered the RMB 5,000, or approximately $803 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore, received in cash from JiaSheng, the controlling venturer in the joint venture, as a partial return of the Company’s initial investment of RMB 10,000, or approximately $1,606 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore. Therefore, the RMB 5,000 received in cash was offset against the initial investment of RMB 10,000, resulting in a net investment of RMB 5,000 as of March 31, 2014. The Company further reduced its investments by RMB 137, or approximately $22, towards the losses from operations incurred by the joint-venture, resulting in a net investment of RMB 4,863, or approximately $781 based on exchange rates published by the Monetary Authority of Singapore as of March 31, 2014. The Company considered the collectability of the remaining RMB 5,000 uncertain due to the extended terms of the payment, and therefore has not recorded this amount as a receivable as of March 31, 2014. | |
“Investment in unconsolidated joint venture” as shown in the balance sheet consists of the cost of an investment in a joint venture in which we have a 10% interest. Prior to the first quarter of fiscal year 2012, the investment in this China affiliate was recorded on the equity basis. In the first quarter of fiscal year 2012, due to the resignation of two directors representing Trio-Tech on the board of the joint venture, the Company concluded that it could no longer exert significant influence over the joint venture. Therefore, the Company began accounting for this investment using the cost method effective September 29, 2011. During the second quarter of fiscal year 2014, TTCQ disposed of its 10% interest in the joint venture. The joint venture had to raise funds for the development of the project. As a joint-venture partner, TTCQ was required to stand guarantee for the funds to be borrowed; considering the amount of borrowing, the risk involved was higher than the investment made and hence TTCQ decided to dispose of the 10% interest in the joint venture investment. On October 2, 2013, TTCQ entered into a share transfer agreement with Zhu Shu. Based on the agreement the purchase price was to be paid by (1) RMB 10,000, or approximately $1,634 based on exchange rates published by the Monetary Authority of Singapore as of October 2, 2013, by non-monetary consideration and (2) the remaining RMB 8,000, or approximately $1,307 based on exchange rates published by the Monetary Authority of Singapore as of October 2, 2013, by cash consideration. The consideration consists of (1) commercial units measuring 668 square meters to be delivered in June 2016 and (2) sixteen quarterly equal installments of RMB 500 per quarter commencing from January 2014. Based on ASC Topic 845 Non-monetary Consideration, the Company deferred the recognition of the gain on disposal of the 10% interest in joint venture investment until such time that the consideration is paid, so that the gain can be ascertained. The recorded value of the disposed investment amounting to $783, based on exchange rates published by the Monetary Authority of Singapore as of June 30, 2014, is classified as “other assets” under non-current assets, because it is considered a down payment for the purchase of the commercial property in Chongqing. The first installment amount of RMB 500 was due in January 2014 and was outstanding as at March 31, 2014. The second installment amount of RMB 500 was due in April 2014. As at May 14, 2014, TTCQ had received RMB 100. | |
In accordance with ASC Topic 323 Investments – Other, Cost Method Investments, ‘‘Investments’’ as shown on the Company’s Balance Sheet consists of the cost of an investment in the joint venture in which the Company has a 10% interest. Prior to the first quarter of fiscal year 2012, the Company’s 10% ownership in this China affiliate was recorded on the equity basis. | |
In accordance with ASC Topic 810-10-50, Disclosure for Variable Interest Entities, the Company analyzes its investments in joint ventures to determine if the joint venture is a variable interest entity (“VIE”) and would require consolidation. The Company (a) evaluates the sufficiency of the total equity at risk, (b) reviews the voting rights and decision-making authority of the equity investment holders as a group, and whether there are any guaranteed returns, protection against losses, or capping of residual returns within the group, and (c) establishes whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. The Company would consolidate a venture that is determined to be a VIE if it was the primary beneficiary. Beginning January 1, 2010, a new accounting standard became effective and changed the method by which the primary beneficiary of a VIE is determined, a primarily qualitative approach whereby the variable interest holder, if any, has the power to direct the VIE’s most significant activities and is the primary beneficiary. The Company has determined that although the investment is a VIE, the Company is not the primary beneficiary. Therefore, the Company does not consolidate the joint venture and it is accounted for using the cost method, since there is no significant influence. |
OTHER_INCOME_NET
OTHER INCOME, NET | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Other Income and Expenses [Abstract] | ' | ||||||||
OTHER INCOME, NET | ' | ||||||||
Other income consisted of the following: | |||||||||
Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Investment income deemed interest income | $ | 202 | 259 | ||||||
Interest income | 45 | 33 | |||||||
Other rental income | 215 | 51 | |||||||
Exchange (loss) / gain | (25 | ) | 65 | ||||||
Allowance for doubtful deemed loan receivables | (325 | ) | - | ||||||
Allowance for doubtful deemed interest receivables | (80 | ) | - | ||||||
Other miscellaneous income | 131 | 112 | |||||||
Total | $ | 163 | $ | 520 | |||||
Other income included $202 and $259 investment income for the year ending June 30, 2014 and 2013, which was deemed to be interest income since the investment was deemed and classified as a loan based on ASC Topic 310-10-25 Receivables. | |||||||||
DISCONTINUED_OPERATION_AND_COR
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
The Company’s Indonesia operation and the Indonesia operation’s immediate holding company, which comprise the fabrication services segment, suffered continued operating losses in the past four fiscal years, and the cash flow was minimal for the past five years. The Company established a restructuring plan to close the fabrication services operation, and in accordance with ASC Topic 205-20, Presentation of Financial Statement Discontinued Operations (“ASC Topic 250-20”), the Company presented the operation results from fabrication services as a discontinued operation as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component. In accordance with the restructuring plan, the Company is negotiating with its suppliers to settle the outstanding balance of accounts payable of $293. | |||||||||
The Company’s fabrication operation in Batam, Indonesia is in the process of commencing winding up the operations. The Company anticipates that it may incur costs and expenses when the winding up of the subsidiary in Indonesia takes place. | |||||||||
In January 2010, the Company established a restructuring plan to close the Testing operation in Shanghai, China. Based on the restructuring plan and in accordance with ASC Topic 205-20, the Company presented the operation results from Shanghai as a discontinued operation as the Company believed that no continued cash flow would be generated by the discontinued component (Shanghai subsidiary) and that the Company would have no significant continuing involvement in the operations of the discontinued component. | |||||||||
The Company anticipates that it may incur additional costs and expenses at the time of the winding up of the business of the subsidiary through which the Shanghai, China facility operated. | |||||||||
Loss from discontinued operations for the years ended June 30, 2014 and 2013, respectively, was as follows: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Revenue | $ | (16 | ) | $ | 389 | ||||
Cost of sales | 1 | 821 | |||||||
Gross loss | (17 | ) | (432 | ) | |||||
Operating expenses | |||||||||
General and administrative | 13 | 179 | |||||||
Selling | - | 12 | |||||||
Impairment | - | - | |||||||
Total | 13 | 191 | |||||||
Loss from discontinued operation | (30 | ) | (623 | ) | |||||
Other charges | (11 | ) | (111 | ) | |||||
Net loss from discontinued operation | $ | (41 | ) | (734 | ) | ||||
The above excludes Corporate expense allocation of $63 for fiscal year 2013. There were no such allocations in fiscal year 2014. | |||||||||
The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of this discontinued operation was immaterial. | |||||||||
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Notes to Financial Statements | ' | |||||||||||||||||||||
BUSINESS SEGMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | |||||||||||||||||||||
The Company operates in four segments: the testing service industry (which performs structural and electronic tests of semiconductor devices), the designing and manufacturing of equipment (which equipment tests the structural integrity of integrated circuits and other products), the distribution of various products from other manufacturers in Singapore and Southeast Asia, and the real estate segment in China. | ||||||||||||||||||||||
The real estate segment recorded other income of $202 for fiscal year 2014 and $259 for fiscal year 2013, based on the average exchange rate for the twelve months ended June 30, 2014 and 2013, respectively, published by the Monetary Authority of Singapore. Due to the nature of the investment, the amount was classified as a loan receivables based on ASC Topic 310-10-25 Receivables, hence the investment income was also classified under other income, which is not part of the below table. | ||||||||||||||||||||||
The revenue allocated to individual countries was based on where the customers were located. The allocation of the cost of equipment, the current year investment in new equipment and depreciation expense were made on the basis of the primary purpose for which the equipment was acquired. | ||||||||||||||||||||||
All inter-segment sales were sales from the manufacturing segment to the testing and distribution segment. Total inter-segment sales were $591 in fiscal year 2014 and $794 in fiscal year 2013. Corporate assets mainly consisted of cash and prepaid expenses. Corporate expenses mainly consisted of salaries, insurance, professional expenses and directors' fees. | ||||||||||||||||||||||
Business Segment Information | ||||||||||||||||||||||
Year | Operating | Depr. | ||||||||||||||||||||
Ended | Net | (Loss) | Total | and | Capital | |||||||||||||||||
June 30, | Revenue | Income | Assets | Amort. | Expenditures | |||||||||||||||||
Manufacturing | 2014 | $ | 15,715 | $ | (761 | ) | $ | 10,761 | $ | 162 | $ | 340 | ||||||||||
2013 | 15,254 | (1,089 | ) | 13,867 | 158 | 46 | ||||||||||||||||
Testing Services | 2014 | 18,017 | 984 | 19,367 | 2,023 | 2,749 | ||||||||||||||||
2013 | 15,029 | 383 | 17,268 | 2,222 | 1,788 | |||||||||||||||||
Distribution | 2014 | 2,353 | 232 | 465 | - | - | ||||||||||||||||
2013 | 1,355 | 173 | 514 | 2 | 1 | |||||||||||||||||
Real Estate | 2014 | 177 | (93 | ) | 3,788 | 109 | 1 | |||||||||||||||
2013 | 132 | (206 | ) | 4,173 | 109 | 3 | ||||||||||||||||
Fabrication | 2014 | - | - | 77 | - | - | ||||||||||||||||
Services* | 2013 | 389 | (686 | ) | 127 | - | - | |||||||||||||||
Corporate & | 2014 | - | (364 | ) | 132 | - | - | |||||||||||||||
Unallocated | 2013 | - | (59 | ) | 95 | - | - | |||||||||||||||
Total Company | 2014 | $ | 36,262 | $ | (2 | ) | $ | 34,590 | $ | 2,294 | $ | 3,090 | ||||||||||
2013 | $ | 32,159 | $ | (1,484 | ) | $ | 36,044 | $ | 2,491 | $ | 1,838 | |||||||||||
* Discontinued operations | ||||||||||||||||||||||
The operating loss of $1,484 for the year ended June 30, 2013 includes operating loss of $686 from fabrication services (discontinued operations). The operating loss of fabrication services includes corporate expenses allocation of $63, which is considered as income in the corporate segment for the purpose of the above segment information. |
LINES_OF_CREDIT
LINES OF CREDIT | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
LINES OF CREDIT (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' | ||||||||
covenants. As of June 30, 2014, the Company was in compliance with these covenants. | |||||||||
Entity with | Type of | Interest | Expiration | Credit | Unused | ||||
Facility | Facility | Rate | Date | Limitation | Credit | ||||
Trio-Tech Singapore | With interest rates ranging from 1.77% to 6.04% | ||||||||
Lines of Credit | - | $ | 9,073 | $ | 5,306 | ||||
As of June 30, 2013, the Company was in compliance with these covenants. | |||||||||
Entity with | Type of | Interest | Expiration | Credit | Unused | ||||
Facility | Facility | Rate | Date | Limitation | Credit | ||||
Trio-Tech Singapore | With interest rates ranging from 1.77% to 6.04% | ||||||||
Lines of Credit | - | $ | 8,299 | $ | 4,435 | ||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | 12 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' |
In accordance with ASC Topic 825, the Company considers the following: | |
Term deposits – The carrying amount approximates fair value because of the short maturity of these instruments. | |
Loan receivables from property development projects – The carrying amount approximates fair value because of the short-term nature. | |
Restricted term deposits – The carrying amount approximates fair value because of the short maturity of these instruments. | |
Lines of credit – The carrying value of the lines of credit approximates fair value due to their short-term nature of the obligations. | |
Bank loans payable – The carrying value of the Company’s bank loan payables approximates its fair value as the interest rates associated with long-term debt is adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. | |
NONCONTROLLING_INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
NON-CONTROLLING INTEREST (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' |
The Company adopted ASC Topic 810, Consolidation (“ASC Topic 810”), accounting and disclosure requirements for subsidiaries that are not wholly-owned. In accordance with the provisions of ASC Topic 810, the Company has recorded the non-controlling 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 non-controlling ownership interests separately in the accompanying consolidated financial statements. | |
Non-controlling interest represents the minority stockholders’ share of 45% of the equity of Trio-Tech (Malaysia) Sdn. Bhd, Trio-Tech (Kuala Lumpur) Sdn. Bhd., SHI International Pte. Ltd. and PT SHI Indonesia, and 24% interest in Prestal Enterprise Sdn. Bhd., which are subsidiaries of Trio-Tech International Pte. Ltd. | |
OPERATING_LEASES
OPERATING LEASES | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Operating Leases | ' | ||||
OPERATING LEASES | ' | ||||
Operating leases arise from the leasing of the Company’s commercial and residential real estate investment property. 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 expense relating to the property held as investments in operating leases was $109 and $112 for fiscal years 2014 and 2013, respectively. | |||||
Future minimum rental income in China to be received from fiscal year 2015 to fiscal year 2019 on non-cancellable operating leases is contractually due as follows as of June 30, 2014: | |||||
2015 | $ | 115 | |||
2016 | 126 | ||||
2017 | 136 | ||||
2018 | 145 | ||||
2019 | 6 | ||||
$ | 528 | ||||
Future minimum rental income in China to be received from fiscal year 2014 to fiscal year 2018 on non-cancellable operating leases is contractually due as follows as of June 30, 2013: | |||||
2014 | $ | 174 | |||
2015 | 112 | ||||
2016 | 123 | ||||
2017 | 133 | ||||
2018 | 150 | ||||
$ | 692 |
TERM_DEPOSITS
TERM DEPOSITS | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Term Deposits | ' | ||||||||
TERM DEPOSITS | ' | ||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Short-term deposits | $ | 102 | $ | 104 | |||||
Restricted term deposits | 3,541 | 3,494 | |||||||
Total | $ | 3,643 | $ | 3,598 | |||||
Restricted deposits represent the amounts 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 deposits are classified as non-current assets, as they relate to long-term obligations and will become unrestricted only upon discharge of the obligations. Short-term deposits represent bank deposits, which do not qualify as cash equivalents. |
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
OTHER ASSETS | ' | ||||||||
Other assets consisted of the following: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Down-payment for purchase of fixed assets | $ | 1,103 | $ | 74 | |||||
Deposits for rental and utilities | 158 | 157 | |||||||
Others | 2 | 3 | |||||||
Total | $ | 1,263 | $ | 234 |
RELATED_PARTY_TRANSACTION
RELATED PARTY TRANSACTION | 12 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTION (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | ' |
There was no related party transaction in fiscal year 2014 as compared to fiscal year 2013, during which period a subsidiary of SHI International Pte. Ltd. owed $515 to a related party and the related party forgave the loan during the quarter ended December 31, 2012. The forgiveness of the loan amounting to $515 was recorded as additional paid in capital during the second quarter of fiscal year 2013 and non-controlling interest for their portion of the related forgiveness. |
BASIS_OF_PRESENTATION_AND_SUMM1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||
Jun. 30, 2014 | ||||||
Basis Of Presentation And Summary Of Significant Accounting Policies Policies | ' | |||||
Basis of Presentation and Principles of Consolidation | ' | |||||
Basis of Presentation and Principles of Consolidation - Trio-Tech International (“the Company”, “Trio-Tech”, or “TTI” hereafter) was incorporated in fiscal year 1958 under the laws of the State of California. TTI provides third-party semiconductor testing and burn-in services primarily through its laboratories in Asia. In addition, TTI operates testing facilities in the United States (“U.S”). The Company also designs, develops, manufactures and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components. In fiscal 2013 TTI conducted business in five business segments: Testing Services, Manufacturing, Distribution, Real Estate and Fabrication Services. The Fabrication segment was discontinued during the fourth quarter of fiscal year 2013, hence in fiscal year 2014 it carried its business in four segments. TTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand, China and Indonesia as follows: | ||||||
Ownership | Location | |||||
Express Test Corporation (Dormant) | 100 | % | Van Nuys, California | |||
Trio-Tech Reliability Services (Dormant) | 100 | % | Van Nuys, California | |||
KTS Incorporated, dba Universal Systems (Dormant) | 100 | % | Van Nuys, California | |||
European Electronic Test Centre (Dormant) | 100 | % | Dublin, Ireland | |||
Trio-Tech International Pte. Ltd. | 100 | % | Singapore | |||
Universal (Far East) Pte. Ltd. * | 100 | % | Singapore | |||
Trio-Tech International (Thailand) Co. Ltd. * | 100 | % | Bangkok, Thailand | |||
Trio-Tech (Bangkok) Co. Ltd. | 100 | % | Bangkok, Thailand | |||
(49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) | ||||||
Trio-Tech (Malaysia) Sdn. Bhd. | 55 | % | Penang & Selangor, Malaysia | |||
(55% owned by Trio-Tech International Pte. Ltd.) | ||||||
Trio-Tech (Kuala Lumpur) Sdn. Bhd. | 55 | % | Selangor, Malaysia | |||
(100% owned by Trio-Tech Malaysia Sdn. Bhd.) | ||||||
Prestal Enterprise Sdn. Bhd. | 76 | % | Selangor, Malaysia | |||
(76% owned by Trio-Tech International Pte. Ltd.) | ||||||
Trio-Tech (Suzhou) Co., Ltd. * | 100 | % | Suzhou, China | |||
Trio-Tech (Shanghai) Co., Ltd. * (Dormant) | 100 | % | Shanghai, China | |||
Trio-Tech (Chongqing) Co. Ltd. * | 100 | % | Chongqing, China | |||
SHI International Pte. Ltd. (Dormant) | 55 | % | Singapore | |||
(55% owned by Trio-Tech International Pte. Ltd) | ||||||
PT SHI Indonesia (Dormant) | 55 | % | Batam, Indonesia | |||
(100% owned by SHI International Pte. Ltd.) | ||||||
Trio-Tech (Tianjin) Co., Ltd. * | 100 | % | Tianjin, China | |||
* 100% owned by Trio-Tech International Pte. Ltd. | ||||||
The 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 financial statements and in the notes herein are United States dollars (‘‘U.S. dollars’’) unless otherwise designated. | ||||||
Liquidity | ' | |||||
Liquidity– The Company earned net income of $57 for fiscal year 2014 and incurred a net loss of $1,019 for fiscal year 2013. | ||||||
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 | ' | |||||
Foreign Currency Translation and Transactions — The United States dollar (“U.S. dollar”) is the functional currency of the U.S. parent company. The Singapore dollar, the national currency of Singapore, is the primary currency of the economic environment in which the operations in Singapore are conducted. The Company also operates in Malaysia, Thailand, China and Indonesia, of which the Malaysian ringgit, Thai baht, Chinese renminbi and Indonesian rupiah, are the national currencies. The Company uses the U.S. dollar for financial reporting purposes. | ||||||
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 statement of operations and comprehensive income (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 — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Among the more significant estimates included in these financial statements are the estimated allowance for doubtful accounts receivable, reserve for obsolete inventory, reserve for warranty, impairments and the deferred income tax asset allowance. Actual results could materially differ from those estimates. | ||||||
Revenue Recognition | ' | |||||
Revenue Recognition — Revenue derived from testing services is recognized when testing services are rendered. Revenues generated from sales 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 products sold (in the manufacturing segment) require installation and training to be performed. | ||||||
Revenue from product sales is also recorded in accordance with the provisions of ASC Topic 605 and Staff Accounting Bulletin (“SAB”) 104 Revenue Recognition in Financial Statements, which generally require revenue earned on product sales involving multiple-elements to be allocated to each element based on the relative fair values of those elements. Accordingly, the Company allocates revenue to each element in a multiple-element arrangement based on the element’s respective fair value, with the fair value determined by the price charged when that element is sold and specifically defined in a quotation or contract. The Company allocates a portion of the invoice value to products sold and the remaining portion of invoice value to installation work in proportion to the fair value of products sold and installation work to be performed. Training elements are valued based on hourly rates, which services the Company charges for when sold apart from product sales. The fair value determination of products sold and the installation and training work is also based on our specific historical experience of the relative fair values of the elements if there is no easily observable market price to be considered. In fiscal years 2014 and 2013, the installation revenues generated in connection with product sales were immaterial and were included in the product sales revenue line on the consolidated statements of operations and comprehensive income (loss). | ||||||
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 — The Company’s policy is to present taxes collected from customers and remitted to governmental authorities on a net basis. The Company records the amounts collected as a current liability and relieves such liability upon remittance to the taxing authority without impacting revenues or expenses. | ||||||
Accounts Receivable and Allowance for Doubtful Accounts | ' | |||||
Accounts Receivable and Allowance for Doubtful Accounts — During the normal course of business, the Company extends unsecured credit to its customers in all segments. Typically, credit terms require payment to be made between 30 to 90 days from the date of the sale. The Company generally does not require collateral from our customers. | ||||||
The Company’s management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, 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, 2014 and 2013. | ||||||
Warranty Costs | ' | |||||
Warranty Costs — The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded in its manufacturing segment. The Company estimates 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. | ||||||
Cash and Cash Equivalents | ' | |||||
Cash and Cash Equivalents — The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. | ||||||
Term Deposits | ' | |||||
Term Deposits — Term deposits consist of bank balances and interest bearing deposits having maturities of 4 to 12 months. As of June 30, 2014, the Company held approximately $102 of unrestricted term deposits in the Company’s 100% owned Thailand subsidiary, which were denominated in the currency of Thai baht, as compared to $104 as of June 30, 2013. | ||||||
Restricted Deposits | ' | |||||
Restricted Deposits — The Company held certain term deposits in the Singapore and Malaysia operations which were considered restricted as they were held as security against certain facility granted by the financial institutions. As of June 30, 2014 the Company held approximately $3,287 of restricted term deposits in the Company’s 100% owned Trio-Tech International Pte. Ltd., which were denominated in Singapore currency, and $254 of restricted term deposits in the Company’s 55% owned Malaysian subsidiary, which were denominated in the currency of Malaysia, as compared to June 30, 2013 when the Company held approximately $3,245 of restricted term deposits in the Company’s 100% owned Trio-Tech International Pte. Ltd., which were denominated in Singapore currency, and $249 of restricted term deposits in the Company’s 55% owned Malaysian subsidiary, which were denominated in the currency of Malaysia. | ||||||
Inventories | ' | |||||
Inventories — Inventories in the Company’s manufacturing and distribution segments consisting principally of raw materials, works in progress, and finished goods are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or market value. The semiconductor industry is characterized by rapid technological change, short-term customer commitments and rapid changes in demand. Provisions for estimated excess and obsolete inventory are based on our regular reviews of inventory quantities on hand and the latest forecasts of product demand and production requirements from our customers. Inventories are written down for not saleable, excess or obsolete raw materials, works-in-process and finished goods by charging such write-downs to cost of sales. In addition to write-downs based on newly introduced parts, statistics and judgments are used for assessing provisions of the remaining inventory based on salability and obsolescence. | ||||||
Property, Plant and Equipment & Investment Property | ' | |||||
Property, Plant and Equipment & Investment Property — Property, plant and equipment and investment property are stated at cost, less accumulated depreciation and amortization. Depreciation is provided for over the estimated useful lives of the assets using the straight-line method. Amortization of leasehold improvements is provided for over the lease terms or the estimated useful lives of the assets, whichever is shorter, using the straight-line method. | ||||||
Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and improvements to the asset 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 (loss). | ||||||
Long-Lived Assets and Impairment | ' | |||||
Long-Lived Assets and Impairment – The Company’s business requires heavy investment in manufacturing facilities and equipment that are technologically advanced but can quickly become significantly under-utilized or rendered obsolete by rapid changes in demand. | ||||||
The Company evaluates the long-lived assets, including property, plant and equipment, 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 (“ASC Topic 360”) to property, plant and equipment. ASC Topic 360 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. | ||||||
Leases | ' | |||||
Leases — The Company leases certain property, plant and equipment in the ordinary course of business. The leases have varying terms. Some may have included renewal and/or purchase options, escalation clauses, restrictions, penalties or other obligations that the Company considered in determining minimum lease payments. The leases were classified as either capital leases or operating leases, in accordance with ASC Topic 840, Accounting for Leases. The Company records monthly rental expense equal to the total amount of the payments due in the reporting period over the lease term in accordance with U.S. GAAP. The difference between rental expense recorded and the amount paid is credited or charged to deferred rent, which is included in accrued expenses in the accompanying consolidated balance sheets. | ||||||
The Company’s management expects that in the normal course of business, operating leases will be renewed or replaced by other leases. The future minimum operating lease payments, for which the Company is contractually obligated as of June 30, 2014, are disclosed in these notes to the consolidated financial statements. | ||||||
Assets under capital leases are capitalized using interest rates appropriate at the inception of each lease and are depreciated over either the estimated useful life of the asset or the lease term on a straight-line basis. The present value of the related lease payments is recorded as a contractual obligation. The future minimum annual capital lease payments are included in the total future contractual obligations as disclosed in the notes to the consolidated financial statements. | ||||||
Comprehensive Income (Loss) | ' | |||||
Comprehensive Income (Loss) — ASC Topic 220, Reporting Comprehensive Income, establishes standards for reporting and presentation of comprehensive income (loss) and its components in a full set of general-purpose financial statements. The Company has chosen to report comprehensive income (loss) in the statements of operations and comprehensive income (loss). Comprehensive income (loss) is comprised of net income (loss) and all changes to shareholders’ equity except those due to investments by owners and distributions to owners. | ||||||
Income Taxes | ' | |||||
Income Taxes — The Company accounts for income taxes using the liability method in accordance with ASC Topic 740, Accounting for Income Taxes (“ASC Topic 740”). ASC Topic 740 requires an entity to recognize deferred tax liabilities and assets. Deferred tax assets and liabilities are recognized for the future tax consequence attributable to the difference between the tax bases of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in future years. Further, the effects of enacted tax laws or rate changes are included as part of deferred tax expenses or benefits in the period that covers the enactment date. | ||||||
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 United States 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 — It is the intention of the Company to reinvest earnings of its foreign subsidiaries in the operations of those subsidiaries. Accordingly, no provision has been made for U.S. income and foreign withholding taxes that would result if such earnings were repatriated. These taxes are undeterminable at this time. The amount of earnings retained in subsidiaries was $7,582 and $6,408 at June 30, 2014 and 2013, respectively. | ||||||
Research and Development Costs | ' | |||||
Research and Development Costs — The Company incurred research and development costs of $196 and $281 in fiscal year 2014 and in fiscal year 2013, respectively, which were charged to operating expenses as incurred. | ||||||
Stock Based Compensation | ' | |||||
Stock Based Compensation — The Company adopted the fair value recognition provisions under ASC Topic 718, Share Based Payments (“ASC Topic 718”), using the modified prospective application method. Under this transition method, compensation cost recognized during the twelve months ended June 30, 2014 included the applicable amounts of: (a) compensation cost of all share-based payments granted prior to, but not yet vested as of July 1, 2005 (based on the grant-date fair value estimated in accordance with the original provisions of ASC Topic 718) and (b) compensation cost for all share-based payments granted subsequent to June 30, 2005. | ||||||
Earnings per Share | ' | |||||
Earnings per Share — Computation of basic earnings per share is conducted by dividing net income available to common shares (numerator) by the weighted average number of common shares outstanding (denominator) during a reporting period. Computation of diluted earnings per share gives effect to all dilutive potential common shares outstanding during a reporting period. In computing diluted earnings per share, the average market price of common shares for a reporting period is used in determining the number of shares assumed to be purchased from the exercise of stock options. In fiscal year 2013, all the outstanding options were excluded in the computation of diluted EPS because they were anti-dilutive. | ||||||
Fair Values of Financial Instruments | ' | |||||
Fair Values of Financial Instruments — Carrying values of trade accounts receivable, accounts payable, accrued expenses, and term deposits approximate their fair value due to their short-term maturities. Carrying values of the Company’s lines of credit and long-term debt are considered to approximate their fair value because the interest rates associated with the lines of credit and long-term debt are adjustable in accordance with market situations when the Company tries to borrow funds with similar terms and remaining maturities. See Note 22 for detailed discussion of the fair value measurement of financial instruments. | ||||||
ASC Topic 820, Fair Value Measurements and Disclosures (“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. Financial assets utilizing Level 3 inputs primarily include auction rate securities. We use an income approach valuation model to estimate the exit price of the auction rate securities, which is derived as the weighted-average present value of expected cash flows over various periods of illiquidity, using a risk adjusted discount rate that is based on the credit risk and liquidity risk of the securities. | ||||||
Concentration of Credit Risk — Financial instruments that subject the Company to credit risk compose accounts receivable. The Company performs ongoing credit evaluations of its customers for potential credit losses. The Company generally does not require collateral. The Company believes that its credit policies do not result in significant adverse risk and historically it has not experienced significant credit related losses. | ||||||
Investments | ' | |||||
Investments - The Company analyzes its investments to determine if it is a variable interest entity (a “VIE”) and would require consolidation. The Company (a) evaluates the sufficiency of the total equity at risk, (b) reviews the voting rights and decision-making authority of the equity investment holders as a group, and whether there are any guaranteed returns, protection against losses, or capping of residual returns within the group and (c) establishes whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. The Company would consolidate an investment that is determined to be a VIE if it was the primary beneficiary. The primary beneficiary of a VIE is determined by a primarily qualitative approach, whereby the variable interest holder, if any, has the power to direct the VIE’s most significant activities and is the primary beneficiary. A new accounting standard became effective and changed the method by which the primary beneficiary of a VIE is determined by a primarily qualitative approach whereby the variable interest holder, if any, has the power to direct the VIE’s most significant activities and is the primary beneficiary. To the extent that the investment does not qualify as VIE, the Company further assesses the existence of a controlling financial interest under a voting interest model to determine whether the investment should be consolidated. | ||||||
Equity Method | ' | |||||
Equity Method - The Company analyzes its investments to determine if they should be accounted for using the equity method. Management evaluates both Common Stock to determine and in-substance Common Stock whether they give the Company the ability to exercise significant influence over operating and financial policies of the investment even though the Company holds less than 50% of the Common Stock and in-substance Common Stock. The net income of the investment will be reported as “Equity in earnings of unconsolidated joint ventures, net of tax” in the Company’s consolidated statements of operations and comprehensive income (loss). | ||||||
Cost Method | ' | |||||
Cost Method - Investee companies not accounted for under the consolidation or the equity method of accounting are accounted for under the cost method of accounting. Under this method, the Company’s share of the earnings or losses of such Investee companies is not included in the consolidated balance sheet or statement of operations and comprehensive income (loss). However, impairment charges are recognized in the consolidated statement of operations and comprehensive income (loss). If circumstances suggest that the value of the Investee company has subsequently recovered, such recovery is not recorded. | ||||||
Loan Receivables from Property Development Projects | ' | |||||
Loan Receivables from Property Development Projects - The loan receivables from property development projects are classified as current assets, carried at face value and are individually evaluated for impairment. The allowance for loan losses reflects management’s best estimate of probable losses determined principally on the basis of historical experience and specific allowances for known loan accounts. All loans or portions thereof deemed to be uncollectible or to require an excessive collection cost are written off to the allowance for losses. | ||||||
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 - Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. | ||||||
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 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. | ||||||
Reclassification | ' | |||||
Reclassification — Certain reclassification have been made to the previous year’s financial statements to conform to current year presentation, with no effect on previously reported net income. |
BASIS_OF_PRESENTATION_AND_SUMM2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||
Jun. 30, 2014 | ||||||
Basis Of Presentation And Summary Of Significant Accounting Policies Tables | ' | |||||
Subsidiaries | ' | |||||
Ownership | Location | |||||
Express Test Corporation (Dormant) | 100 | % | Van Nuys, California | |||
Trio-Tech Reliability Services (Dormant) | 100 | % | Van Nuys, California | |||
KTS Incorporated, dba Universal Systems (Dormant) | 100 | % | Van Nuys, California | |||
European Electronic Test Centre (Dormant) | 100 | % | Dublin, Ireland | |||
Trio-Tech International Pte. Ltd. | 100 | % | Singapore | |||
Universal (Far East) Pte. Ltd. * | 100 | % | Singapore | |||
Trio-Tech International (Thailand) Co. Ltd. * | 100 | % | Bangkok, Thailand | |||
Trio-Tech (Bangkok) Co. Ltd. | 100 | % | Bangkok, Thailand | |||
(49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) | ||||||
Trio-Tech (Malaysia) Sdn. Bhd. | 55 | % | Penang & Selangor, Malaysia | |||
(55% owned by Trio-Tech International Pte. Ltd.) | ||||||
Trio-Tech (Kuala Lumpur) Sdn. Bhd. | 55 | % | Selangor, Malaysia | |||
(100% owned by Trio-Tech Malaysia Sdn. Bhd.) | ||||||
Prestal Enterprise Sdn. Bhd. | 76 | % | Selangor, Malaysia | |||
(76% owned by Trio-Tech International Pte. Ltd.) | ||||||
Trio-Tech (Suzhou) Co., Ltd. * | 100 | % | Suzhou, China | |||
Trio-Tech (Shanghai) Co., Ltd. * (Dormant) | 100 | % | Shanghai, China | |||
Trio-Tech (Chongqing) Co. Ltd. * | 100 | % | Chongqing, China | |||
SHI International Pte. Ltd. (Dormant) | 55 | % | Singapore | |||
(55% owned by Trio-Tech International Pte. Ltd) | ||||||
PT SHI Indonesia (Dormant) | 55 | % | Batam, Indonesia | |||
(100% owned by SHI International Pte. Ltd.) | ||||||
Trio-Tech (Tianjin) Co., Ltd. * | 100 | % | Tianjin, China |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventories Tables | ' | ||||||||
Inventories | ' | ||||||||
Inventories consisted of the following: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,165 | $ | 1,072 | |||||
Work in progress | 583 | 1,930 | |||||||
Finished goods | 184 | 356 | |||||||
Less: provision for obsolete inventory | (844 | ) | (912 | ) | |||||
Currency translation effect | 18 | 17 | |||||||
$ | 1,106 | $ | 2,463 | ||||||
Changes in provision for obsolete inventory | ' | ||||||||
The following table represents the changes in provision for obsolete inventory: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Beginning | $ | 912 | $ | 884 | |||||
Additions charged to expenses | - | 38 | |||||||
Usage - disposition | (76 | ) | (14 | ) | |||||
Currency translation effect | 8 | 4 | |||||||
Ending | $ | 844 | $ | 912 | |||||
STOCK_OPTIONS_Tables
STOCK OPTIONS (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair value weighted average 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, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected volatility | 70.01-104.94 | % | 92.53 | % | |||||||||||||
Risk-free interest rate | 0.30% to 0.78 | % | 0.26 | % | |||||||||||||
Expected life (years) | 2.50-3.25 | 2.5 | |||||||||||||||
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, 2014 is presented below: | |||||||||||||||||
Weighted Average Grant-Date | |||||||||||||||||
Options | Fair Value | ||||||||||||||||
Non-vested at July 1, 2013 | 20,375 | $ | 3.26 | ||||||||||||||
Granted | 50,000 | 1.65 | |||||||||||||||
Vested | (44,125 | ) | (2.33 | ) | |||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at June 30, 2014 | 26,250 | $ | 1.69 | ||||||||||||||
A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 31, 2013 is presented below: | |||||||||||||||||
Weighted Average Grant-Date | |||||||||||||||||
Options | Fair Value | ||||||||||||||||
Non-vested at July 1, 2012 | 43,250 | $ | 3.29 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | (21,375 | ) | (3.16 | ) | |||||||||||||
Forfeited | (1,500 | ) | (3.16 | ) | |||||||||||||
Non-vested at June 30, 2013 | 20,375 | $ | 3.26 | ||||||||||||||
2007 Employee Plan [Member] | ' | ||||||||||||||||
Option activities | ' | ||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the twelve month period ended June 30, 2014 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2013 | 263,500 | $ | 3.06 | 1.57 | $ | - | |||||||||||
Granted | 50,000 | 3.26 | - | - | |||||||||||||
Exercised | (126,500 | ) | (1.89 | ) | - | - | |||||||||||
Forfeited or expired | (57,000 | ) | (3.81 | ) | - | - | |||||||||||
Outstanding at June 30, 2014 | 130,000 | $ | 3.93 | 2.57 | $ | 13 | |||||||||||
Exercisable at June 30, 2014 | 103,750 | $ | 4.14 | 2.1 | $ | 3 | |||||||||||
The aggregate intrinsic value of the 126,500 shares of common stock upon exercise of options was $175. | |||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2013 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2012 | 313,000 | $ | 3.85 | 2.31 | $ | - | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | (49,500 | ) | (8.06 | ) | - | - | |||||||||||
Outstanding at June 30, 2013 | 263,500 | $ | 3.06 | 1.57 | $ | 122 | |||||||||||
Exercisable at June 30, 2013 | 243,125 | $ | 2.95 | 1.49 | $ | 122 | |||||||||||
2007 Directors Equity Incentive Plan [Member] | ' | ||||||||||||||||
Option activities | ' | ||||||||||||||||
A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2014 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2013 | 350,000 | $ | 3.53 | 1.96 | $ | 80 | |||||||||||
Granted | 100,000 | 3.41 | 4.31 | - | |||||||||||||
Exercised | -65,000 | 1.72 | - | 98 | |||||||||||||
Forfeited or expired | (70,000 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at June 30, 2014 | 315,000 | $ | 3.62 | 2.63 | $ | 24 | |||||||||||
Exercisable at June 30, 2014 | 315,000 | $ | 3.62 | 2.63 | $ | 24 | |||||||||||
A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2013 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2012 | 385,000 | $ | 4.52 | 2.45 | $ | - | |||||||||||
Granted | 15,000 | 2.07 | 4.72 | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | (50,000 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at June 30, 2013 | 350,000 | $ | 3.53 | 1.96 | $ | - | |||||||||||
Exercisable at June 30, 2013 | 350,000 | $ | 3.53 | 1.96 | $ | - | |||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Earnings Per Share Tables | ' | ||||||||
Reconciliation of the weighted average shares | ' | ||||||||
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, | |||||||||
2014 | 2013 | ||||||||
Income / (loss) attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ | 81 | $ | (671 | ) | ||||
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | $ | (24 | ) | $ | (348 | ) | |||
Net income/(loss) attributable to Trio-Tech International common shareholders | $ | 57 | $ | (1,019 | ) | ||||
Basic and diluted earnings/(loss) per share from continuing operations attributable to Trio-Tech International | $ | 0.02 | $ | (0.20 | ) | ||||
Basic and diluted (loss) per share from discontinued operations attributable to Trio-Tech International | $ | (0.01 | ) | $ | (0.11 | ) | |||
Basic and diluted earnings/(loss) per share from net income/(loss) attributable to Trio-Tech International | $ | 0.01 | $ | (0.31 | ) | ||||
Weighted average number of common shares outstanding - basic | 3,513 | 3,322 | |||||||
Dilutive effect of stock options | 36 | - | |||||||
Number of shares used to compute earnings per share - diluted | 3,549 | 3,322 | |||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Property Plant And Equipment Tables | ' | |||||||||
Schedule of property, plant and equipment | ' | |||||||||
For the Year Ended June 30, | ||||||||||
Estimated Useful Life in Years | 2014 | 2013 | ||||||||
Building and improvements | 20-Mar | $ | 5,042 | $ | 4,999 | |||||
Leasehold improvements | 27-Mar | 5,403 | 4,869 | |||||||
Machinery and equipment | 7-Mar | 20,158 | 20,719 | |||||||
Furniture and fixtures | 5-Mar | 658 | 1,096 | |||||||
Equipment under capital leases | 5-Mar | 674 | 545 | |||||||
Currency translation effect for fixed assets, gross | (251 | ) | 335 | |||||||
$ | 31,684 | $ | 32,563 | |||||||
Less: | ||||||||||
Accumulated depreciation | $ | (17,853 | ) | $ | -19,155 | |||||
Accumulated amortization on equipment under capital leases | (370 | ) | -422 | |||||||
Currency translation effect | 80 | -135 | ||||||||
Property, plant and equipment, net | $ | 13,541 | $ | 12,851 |
ACCOUNTS_RECEIVABLE_AND_ALLOWA1
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounts Receivable And Allowance For Doubtful Accounts Tables | ' | ||||||||
Changes in the allowance for doubtful accounts | ' | ||||||||
The following table represents the changes in the allowance for doubtful accounts: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Beginning | $ | 139 | $ | 122 | |||||
Additions charged to expenses | 303 | 196 | |||||||
(Recovered) / (Write-off) | (2 | ) | (131 | ) | |||||
Currency translation effect | (2 | ) | (48 | ) | |||||
Ending | $ | 438 | $ | 139 |
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accrued Expenses Tables | ' | ||||||||
Accrued expenses | ' | ||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Payroll and related costs | 1,096 | 1,022 | |||||||
Commissions | 47 | 10 | |||||||
Customer deposits | 79 | 89 | |||||||
Legal and audit | 177 | 136 | |||||||
Sales tax | 120 | 76 | |||||||
Utilities | 156 | 138 | |||||||
Warranty | 60 | 61 | |||||||
Accrued purchase of materials and fixed assets | 358 | 1,033 | |||||||
Provision for re-instatement | 367 | 360 | |||||||
Other accrued expenses | 602 | 230 | |||||||
Currency translation effect | (16 | ) | (95 | ) | |||||
Total | $ | 3,046 | $ | 3,060 |
WARRANTY_ACCRUAL_Tables
WARRANTY ACCRUAL (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Warranty Accrual Tables | ' | ||||||||
Warranty liability | ' | ||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Beginning | $ | 61 | $ | 60 | |||||
Additions charged to cost and expenses | 23 | 1 | |||||||
Recovered | (25 | ) | - | ||||||
Currency translation effect | 1 | - | |||||||
Ending | $ | 60 | $ | 61 |
BANK_LOANS_PAYABLE_Tables
BANK LOANS PAYABLE (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Bank Loans Payable Tables | ' | ||||||||
Bank loans payable | ' | ||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Note payable denominated in Singapore dollars to a commercial bank for expansion plans in Singapore and China, bearing interest at the bank’s prime rate plus 1.50% (4.75% at June 30, 2014 and 2013), with monthly payments of principal plus interest of $54 through December 2014. This note payable is secured by equipment with a carrying value of $469 and $537 on the consolidated balance sheet. | 260 | 885 | |||||||
Note payable denominated in Malaysian ringgit to a commercial bank for expansion plans in Malaysia, maturing in August 2024, bearing interest at the bank’s lending rate (5.35% at June 30, 2014 and 2013), with monthly payments of principal plus interest of $23 through August 2024 in fiscal year 2014, and $29 through August 2024 in fiscal year 2013. This loan payable is secured by a charge on the property in Malaysia with a carrying value of $3,748 and $4,252 as at June 30, 2014 and 2013, respectively. | 2,786 | 2,498 | |||||||
Current portion | (448 | ) | (770 | ) | |||||
Long term portion of bank loans payable | $ | 2,598 | $ | 2,613 | |||||
Future minimum payments | ' | ||||||||
Future minimum payments (excluding interest) as of June 30, 2014 were as follows: | |||||||||
2015 | $ | 448 | |||||||
2016 | 198 | ||||||||
2017 | 209 | ||||||||
2018 | 220 | ||||||||
2019 | 138 | ||||||||
Thereafter | 1,833 | ||||||||
Total obligations and commitments | $ | 3,046 | |||||||
Future minimum payments (excluding interest) as of June 30, 2013 were as follows: | |||||||||
2014 | $ | 770 | |||||||
2015 | 413 | ||||||||
2016 | 161 | ||||||||
2017 | 169 | ||||||||
2018 | 178 | ||||||||
Thereafter | 1,692 | ||||||||
Total obligations and commitments | $ | 3,383 | |||||||
ADOPTION_OF_ASC_TOPIC_740_Tabl
ADOPTION OF ASC TOPIC 740 (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Adoption Of Asc Topic 740 Tables | ' | ||||
Income tax reconciliation | ' | ||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||
Balance at July 1, 2012 | $ | (249 | ) | ||
Additions based on current year tax positions | - | ||||
Additions for prior year(s) tax positions | (1 | ) | |||
Reductions for prior year(s) tax positions | - | ||||
Settlements | - | ||||
Expiration of statute of limitations | - | ||||
Balance at June 30, 2013 | $ | (250 | ) | ||
Additions based on current year tax positions | - | ||||
Additions for prior year(s) tax positions | - | ||||
Reductions for prior year(s) tax positions | - | ||||
Settlements | - | ||||
Expiration of statute of limitations | - | ||||
Settlements | - | ||||
Balance at June 30, 2014 | $ | (250 | ) | ||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Taxes Tables | ' | ||||||||
Components of income tax provision (benefits) | ' | ||||||||
On a consolidated basis, the Company’s net income tax provisions (benefits) were as follows: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | - | $ | - | |||||
State | 5 | 2 | |||||||
Foreign | (175 | ) | (956 | ) | |||||
$ | (170 | ) | $ | (954 | ) | ||||
Deferred: | |||||||||
Federal | $ | - | $ | - | |||||
State | - | - | |||||||
Foreign | (174 | ) | 694 | ||||||
(174 | ) | 694 | |||||||
Total provision | $ | (344 | ) | $ | (260 | ) | |||
Reconciliation of income tax rate | ' | ||||||||
The reconciliation between the U.S. federal tax rate and the effective income tax rate was as follows: | |||||||||
Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Statutory federal tax rate | (34 | )% | (34 | )% | |||||
State taxes, net of federal benefit | (6 | ) | (6 | ) | |||||
Foreign tax related to profits making subsidiaries | (400 | ) | (1 | ) | |||||
NOL Expiration | 5 | 0 | |||||||
Other | 5 | 5 | |||||||
Changes in valuation allowance | 95 | 0 | |||||||
Effective rate | (335 | )% | (41 | )% | |||||
Deferred income tax assets (liabilities) | ' | ||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating losses and credits | $ | 1,572 | $ | 956 | |||||
Inventory valuation | 99 | 99 | |||||||
Depreciation | - | - | |||||||
Provision for bad debts | 788 | 3 | |||||||
Accrued vacation | 15 | 16 | |||||||
Capital loss | 78 | - | |||||||
Accrued expenses | 217 | 135 | |||||||
Investment in subsidiaries | 182 | - | |||||||
Deferred Income | 201 | - | |||||||
Other | 112 | 3 | |||||||
Total deferred tax assets | $ | 3,264 | $ | 1,212 | |||||
Deferred tax liabilities: | |||||||||
Accrued expenses | (10 | ) | - | ||||||
Depreciation | (192 | ) | (191 | ) | |||||
Other | - | - | |||||||
Total deferred income tax liabilities | $ | (202 | ) | $ | (191 | ) | |||
Subtotal | 3,062 | 1,019 | |||||||
Valuation allowance | (2,876 | ) | (1,007 | ) | |||||
Net deferred tax assets | $ | 186 | $ | 12 | |||||
Presented as follows in the balance sheets: | |||||||||
Deferred tax assets | 388 | 203 | |||||||
Deferred tax liabilities | (202 | ) | (191 | ) | |||||
Net deferred tax assets | $ | 186 | $ | 12 | |||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Commitments And Contingencies Tables | ' | ||||||||||||||||
Future minimum payments under leases | ' | ||||||||||||||||
Future minimum payments under capital leases and non-cancelable operating leases and net rental income under non-cancelable sub-leased properties as of June 30, 2014 were as follows: | |||||||||||||||||
Capital | Operating | Sub-lease Rental | Net Operating | ||||||||||||||
For the Year Ending June 30, | Leases | Leases | (Income) | Leases | |||||||||||||
2015 | $ | 81 | $ | 710 | $ | (111 | ) | $ | 599 | ||||||||
2016 | 85 | 795 | (130 | ) | 665 | ||||||||||||
2017 | 83 | 600 | (42 | ) | 558 | ||||||||||||
Thereafter | 32 | 3,001 | (18 | ) | 2,983 | ||||||||||||
Total future minimum lease payments | $ | 281 | $ | 5,106 | $ | (301 | ) | $ | 4,805 | ||||||||
Less amount representing interest | - | ||||||||||||||||
Present value of net minimum lease payments | 281 | ||||||||||||||||
Less current portion of capital lease obligations | (81 | ) | |||||||||||||||
Long-term obligations under capital leases | 200 | ||||||||||||||||
Future minimum payments under capital leases and non-cancelable operating leases and net rental income under non-cancelable sub-leased properties as of June 30, 2013 were as follows: | |||||||||||||||||
Capital | Operating | Sub-lease Rental | Net Operating | ||||||||||||||
For the Year Ending June 30, | Leases | Leases | (Income) | Leases | |||||||||||||
2014 | $ | 105 | $ | 723 | $ | (32 | ) | $ | 691 | ||||||||
2015 | 68 | 639 | - | 639 | |||||||||||||
2016 | 72 | 666 | - | 666 | |||||||||||||
Thereafter | 88 | 1,057 | - | 1,057 | |||||||||||||
Total future minimum lease payments | $ | 333 | $ | 3,085 | $ | (32 | ) | $ | 3,053 | ||||||||
Less amount representing interest | - | ||||||||||||||||
Present value of net minimum lease payments | 333 | ||||||||||||||||
Less current portion of capital lease obligations | (105 | ) | |||||||||||||||
Long-term obligations under capital leases | 228 | ||||||||||||||||
CONCENTRATION_OF_CUSTOMERS_Tab
CONCENTRATION OF CUSTOMERS (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Concentration Of Customers Tables | ' | ||||||||
Concentration of customers | ' | ||||||||
Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Sales | |||||||||
- Customer A | 60.6 | % | 62.3 | % | |||||
Accounts Receivable | |||||||||
- Customer A | 74.3 | % | 66.4 | % |
INVESTMENT_PROPERTIES_Tables
INVESTMENT PROPERTIES (Tables) | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Investment Properties Tables | ' | |||||||||
Companys investment in the property based on the exchange rate | ' | |||||||||
The following table presents the Company’s investment properties in China as of June 30, 2014. The exchange rate is based on the exchange rate as of June 30, 2014 published by the Monetary Authority of Singapore. | ||||||||||
Investment | Investment Amount | |||||||||
Amount | ||||||||||
Investment Date | (RMB) | (U.S. Dollars) | ||||||||
Purchase of Property I – MaoYe | 4-Jan-08 | 5,554 | 904 | |||||||
Purchase of Property II – JiangHuai | 6-Jan-10 | 3,600 | 586 | |||||||
Purchase of Property III – FuLi | 8-Apr-10 | 4,025 | 655 | |||||||
Currency Translation | - | (23 | ) | |||||||
Gross investment in rental property | 13,179 | 2,122 | ||||||||
Accumulated depreciation on rental property | 30-Jun-14 | (2,961 | ) | (476 | ) | |||||
Net investment in properties – China | 10,218 | 1,646 | ||||||||
The following table presents the Company’s investment properties in China as of June 30, 2013. | ||||||||||
Investment | Investment Amount | |||||||||
Amount | ||||||||||
Investment Date | (RMB) | (U.S. Dollars) | ||||||||
Purchase of Property I – MaoYe | 4-Jan-08 | 5,554 | 904 | |||||||
Purchase of Property II – JiangHuai | 6-Jan-10 | 3,600 | 586 | |||||||
Purchase of Property III – FuLi | 8-Apr-10 | 4,025 | 655 | |||||||
Gross investment in rental property | 13,179 | 2,145 | ||||||||
Accumulated depreciation on rental property | 30-Jun-13 | (2,302 | ) | (375 | ) | |||||
Net investment in properties – China | 10,877 | 1,770 | ||||||||
The following table presents the Company’s investment in Malaysia as of June 30, 2014. The exchange rate is based on the exchange rate as of June 30, 2014 published by the Monetary Authority of Singapore. | ||||||||||
Investment | Investment Amount | |||||||||
Amount | ||||||||||
Investment Date | (RM) | (U.S. Dollars) | ||||||||
Reclassification of Penang Property I | 31-Dec-12 | 681 | 212 | |||||||
Gross investment in rental property | 681 | 212 | ||||||||
Accumulated depreciation on rental property | 30-Jun-14 | (300 | ) | (93 | ) | |||||
Net investment in rental properties - Malaysia | 381 | 119 | ||||||||
The following table presents the Company’s investment properties in Malaysia as of June 30, 2013. | ||||||||||
Investment | Investment Amount | |||||||||
Amount | ||||||||||
Investment Date | (RM) | (U.S. Dollars) | ||||||||
Reclassification of Penang Property I | 31-Dec-12 | 681 | 214 | |||||||
Gross investment in rental property | 681 | 214 | ||||||||
Accumulated depreciation on rental property | 30-Jun-13 | (294 | ) | (91 | ) | |||||
Net investment in rental properties - Malaysia | 387 | 123 |
LOAN_RECEIVABLE_FROM_PROPERTY_1
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Tables) | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Loan Receivable From Property Development Projects Tables | ' | |||||||||
Companys loans receivable from property development projects | ' | |||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Short-term loan receivables | Date | (RMB) | (U.S. Dollars) | |||||||
Investment in JiangHuai (Project - Yu Jin Jiang An) | 31-May-13 | 2,000 | 325 | |||||||
Less: Allowance for impairment | (2,000 | ) | (325 | ) | ||||||
Net short-term loans receivables from property development projects | - | - | ||||||||
Long-term loan receivables | ||||||||||
Investment in Jun Zhou Zhi Ye | Oct 31, 2016 | 5,000 | 805 | |||||||
Net long-term loans receivables from property development projects | 5,000 | 805 | ||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Short-term loan receivables | Date | (RMB) | (U.S. Dollars) | |||||||
Investment in JiaSheng Property Development Co. Ltd. | 30-Nov-13 | 5,000 | 814 | |||||||
Investment in JiangHuai (Project - Yu Jin Jiang An) | 31-May-13 | 2,000 | 325 | |||||||
Net short-term loan receivables from property development projects | 7,000 | 1,139 |
OTHER_INCOME_NET_Tables
OTHER INCOME, NET (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Other Income and Expenses [Abstract] | ' | ||||||||
Other income | ' | ||||||||
Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Investment income deemed interest income | $ | 202 | 259 | ||||||
Interest income | 45 | 33 | |||||||
Other rental income | 215 | 51 | |||||||
Exchange (loss) / gain | (25 | ) | 65 | ||||||
Allowance for doubtful deemed loan receivables | (325 | ) | - | ||||||
Allowance for doubtful deemed interest receivables | (80 | ) | - | ||||||
Other miscellaneous income | 131 | 112 | |||||||
Total | $ | 163 | $ | 520 |
DISCONTINUED_OPERATION_AND_COR1
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Discontinued Operation And Corresponding Restructuring Plan Tables | ' | ||||||||
Loss from discontinued operations | ' | ||||||||
Loss from discontinued operations for the years ended June 30, 2014 and 2013, respectively, was as follows: | |||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Revenue | $ | (16 | ) | $ | 389 | ||||
Cost of sales | 1 | 821 | |||||||
Gross loss | (17 | ) | (432 | ) | |||||
Operating expenses | |||||||||
General and administrative | 13 | 179 | |||||||
Selling | - | 12 | |||||||
Impairment | - | - | |||||||
Total | 13 | 191 | |||||||
Loss from discontinued operation | (30 | ) | (623 | ) | |||||
Other charges | (11 | ) | (111 | ) | |||||
Net loss from discontinued operation | $ | (41 | ) | (734 | ) | ||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Business Segments Tables | ' | |||||||||||||||||||||
BUSINESS SEGMENTS | ' | |||||||||||||||||||||
Business Segment Information | ||||||||||||||||||||||
Year | Operating | Depr. | ||||||||||||||||||||
Ended | Net | (Loss) | Total | and | Capital | |||||||||||||||||
June 30, | Revenue | Income | Assets | Amort. | Expenditures | |||||||||||||||||
Manufacturing | 2014 | $ | 15,715 | $ | (761 | ) | $ | 10,761 | $ | 162 | $ | 340 | ||||||||||
2013 | 15,254 | (1,089 | ) | 13,867 | 158 | 46 | ||||||||||||||||
Testing Services | 2014 | 18,017 | 984 | 19,367 | 2,023 | 2,749 | ||||||||||||||||
2013 | 15,029 | 383 | 17,268 | 2,222 | 1,788 | |||||||||||||||||
Distribution | 2014 | 2,353 | 232 | 465 | - | - | ||||||||||||||||
2013 | 1,355 | 173 | 514 | 2 | 1 | |||||||||||||||||
Real Estate | 2014 | 177 | (93 | ) | 3,788 | 109 | 1 | |||||||||||||||
2013 | 132 | (206 | ) | 4,173 | 109 | 3 | ||||||||||||||||
Fabrication | 2014 | - | - | 77 | - | - | ||||||||||||||||
Services* | 2013 | 389 | (686 | ) | 127 | - | - | |||||||||||||||
Corporate & | 2014 | - | (364 | ) | 132 | - | - | |||||||||||||||
Unallocated | 2013 | - | (59 | ) | 95 | - | - | |||||||||||||||
Total Company | 2014 | $ | 36,262 | $ | (2 | ) | $ | 34,590 | $ | 2,294 | $ | 3,090 | ||||||||||
2013 | $ | 32,159 | $ | (1,484 | ) | $ | 36,044 | $ | 2,491 | $ | 1,838 |
LINES_OF_CREDIT_Tables
LINES OF CREDIT (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Lines Of Credit Tables | ' | ||||||||
Lines of credit | ' | ||||||||
As of June 30, 2014, the Company was in compliance with these covenants. | |||||||||
Entity with | Type of | Interest | Expiration | Credit | Unused | ||||
Facility | Facility | Rate | Date | Limitation | Credit | ||||
Trio-Tech Singapore | With interest rates ranging from 1.77% to 6.04% | ||||||||
Lines of Credit | - | $ | 9,073 | $ | 5,306 | ||||
As of June 30, 2013, the Company was in compliance with these covenants. | |||||||||
Entity with | Type of | Interest | Expiration | Credit | Unused | ||||
Facility | Facility | Rate | Date | Limitation | Credit | ||||
Trio-Tech Singapore | With interest rates ranging from 1.77% to 6.04% | ||||||||
Lines of Credit | - | $ | 8,299 | $ | 4,435 |
OPERATING_LEASES_Tables
OPERATING LEASES (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Operating Leases Tables | ' | ||||
Future minimum rental income | ' | ||||
Future minimum rental income in China to be received from fiscal year 2015 to fiscal year 2019 on non-cancellable operating leases is contractually due as follows as of June 30, 2014: | |||||
2015 | $ | 115 | |||
2016 | 126 | ||||
2017 | 136 | ||||
2018 | 145 | ||||
2019 | 6 | ||||
$ | 528 | ||||
Future minimum rental income in China to be received from fiscal year 2014 to fiscal year 2018 on non-cancellable operating leases is contractually due as follows as of June 30, 2013: | |||||
2014 | $ | 174 | |||
2015 | 112 | ||||
2016 | 123 | ||||
2017 | 133 | ||||
2018 | 150 | ||||
$ | 692 | ||||
TERM_DEPOSITS_Tables
TERM DEPOSITS (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Term Deposits Tables | ' | ||||||||
Term deposits | ' | ||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Short-term deposits | $ | 102 | $ | 104 | |||||
Restricted term deposits | 3,541 | 3,494 | |||||||
Total | $ | 3,643 | $ | 3,598 |
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
Other assets | ' | ||||||||
For the Year Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Down-payment for purchase of fixed assets | $ | 1,103 | $ | 74 | |||||
Deposits for rental and utilities | 158 | 157 | |||||||
Others | 2 | 3 | |||||||
Total | $ | 1,263 | $ | 234 |
BASIS_OF_PRESENTATION_AND_SUMM3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Jun. 30, 2014 |
Express Test Corporation (Dormant) | ' |
Ownership | 100.00% |
Trio-Tech Reliability Services (Dormant) | ' |
Ownership | 100.00% |
KTS Incorporated, dba Universal Systems (Dormant) | ' |
Ownership | 100.00% |
European Electronic Test Centre (Operation ceased on November 1, 2005) | ' |
Ownership | 100.00% |
Trio-Tech International Pte. Ltd | ' |
Ownership | 100.00% |
Universal (Far East) Pte. Ltd | ' |
Ownership | 100.00% |
Trio-Tech International (Thailand) Co. Ltd | ' |
Ownership | 100.00% |
Trio-Tech (Bangkok) Co. Ltd. (49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) | ' |
Ownership | 100.00% |
Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) | ' |
Ownership | 55.00% |
Trio-Tech (Kuala Lumpur) Sdn. Bhd. (100% owned by Trio-Tech Malaysia Sdn. Bhd.) | ' |
Ownership | 55.00% |
Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.) | ' |
Ownership | 76.00% |
Trio-Tech (Suzhou) Co. Ltd. | ' |
Ownership | 100.00% |
Trio-Tech (Shanghai) Co. Ltd. | ' |
Ownership | 100.00% |
Trio-Tech (Chongqing) Co. Ltd. SHI International Pte. Ltd. | ' |
Ownership | 100.00% |
SHI International Pte. Ltd. (55% owned by Trio-Tech International Pte. Ltd.) | ' |
Ownership | 55.00% |
PT SHI Indonesia (100% owned by SHI International Pte. Ltd) | ' |
Ownership | 55.00% |
Trio-Tech (Tianjin) Co. Ltd. | ' |
Ownership | 100.00% |
BASIS_OF_PRESENTATION_AND_SUMM4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Net income (loss) | $57 | ($1,019) |
Term deposits | 3,541 | 3,494 |
Restricted term deposits | 3,541 | 3,494 |
Trio-Tech Thailand | ' | ' |
Term deposits | 102 | 104 |
Trio-Tech International [Member] | ' | ' |
Restricted term deposits | 3,287 | 3,245 |
55% owned Malaysian subsidiary | ' | ' |
Restricted term deposits | $254 | $249 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Notes to Financial Statements | ' | ' |
Raw materials | $1,165 | $1,072 |
Work in progress | 583 | 1,930 |
Finished goods | 184 | 356 |
Less: provision for obsolete inventory | -844 | -912 |
Currency translation effect | 18 | 17 |
Inventory net | $1,106 | $2,463 |
INVENTORIES_Details_1
INVENTORIES (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Notes to Financial Statements | ' | ' |
Beginning | $912 | $884 |
Additions charged to expenses | ' | 38 |
Usage - disposition | -76 | -14 |
Currency translation effect | 8 | 4 |
Ending | $844 | $912 |
STOCK_OPTIONS_Details
STOCK OPTIONS (Details) | 12 Months Ended | ||
Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Minimum Member | Maximum Member | ||
Expected volatility | 92.53% | 70.01% | 104.94% |
Risk-free interest rate | 0.26% | 0.30% | 0.78% |
Expected life (years) | '2 years 6 months | '2 years 6 months | '3 years 3 months |
STOCK_OPTIONS_Details_1
STOCK OPTIONS (Details 1) (2007 Employee Plan [Member], USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
2007 Employee Plan [Member] | ' | ' |
Outstanding at July 1, 2013, Options | 263,500 | 313,000 |
Granted, Options | 50,000 | ' |
Exercised, Options | -126,500 | ' |
Forfeited or expired, Options | -57,000 | -49,500 |
Outstanding at June 30, 2014, Options | 130,000 | 263,500 |
Exercisable at June 30, 2014,Options | 130,750 | 243,125 |
Outstanding at July 1, 2013, Weighted- Average Exercise Price | $3.06 | $3.85 |
Granted, Weighted- Average Exercise Price | $3.26 | ' |
Exercised, Weighted- Average Exercise Price | ($1.89) | ' |
Forfeited or expired, Weighted- Average Exercise Price | ($3.81) | ($8.06) |
Outstanding at June 30, 2014, Weighted- Average Exercise Price | $3.93 | $3.06 |
Exercisable at June 30, 2014, Weighted- Average Exercise Price | $4.14 | $2.95 |
Outstanding at July 1, 2013, Weighted - Average Remaining Contractual Term (Years) | '1 year 5 months 29 days | '2 years 4 months 2 days |
Outstanding at June 30, 2014, Weighted - Average Remaining Contractual Term (Years) | '2 years 5 months 25 days | '1 year 5 months 25 days |
Exercisable at June 30, 2014, Weighted - Average Remaining Contractual Term (Years) | '2 years 1 month 15 days | '1 year 5 months 29 days |
Outstanding at July 1, 2013, Aggregate Intrinsic Value | $122 | ' |
Granted, Aggregate Intrinsic Value | ' | ' |
Exercised, Aggregate Intrinsic Value | ' | ' |
Forfeited or expired, Aggregate Intrinsic Value | ' | ' |
Outstanding at June 30, 2014,Aggregate Intrinsic Value | 13 | 122 |
Exercisable at June 30, 2014,Aggregate Intrinsic Value | $3 | $122 |
STOCK_OPTIONS_Details_2
STOCK OPTIONS (Details 2) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Notes to Financial Statements | ' | ' |
Non-vested at July 1, 2013, Options | 20,375 | 43,250 |
Granted, Options | 50,000 | ' |
Vested, Options | -44,125 | -21,375 |
Forfeited, Options | ' | -1,500 |
Non-vested at March 31, 2014, Options | 26,250 | 20,375 |
Non-vested at July 1, 2013, Weighted-Average Grant-Date Fair Value | $3.26 | $3.29 |
Granted, Options, Weighted-Average Grant-Date Fair Value | $1.65 | ' |
Vested, Options, Weighted-Average Grant-Date Fair Value | ($2.33) | ($3.16) |
Forfeited, Options, Weighted-Average Grant-Date Fair Value | ' | ($3.16) |
Non-vested at March 31, 2014, Options , Weighted-Average Grant-Date Fair Value | $1.69 | $3.26 |
STOCK_OPTIONS_Details_3
STOCK OPTIONS (Details 3) (2007 Directors Equity Incentive Plan [Member], USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
2007 Directors Equity Incentive Plan [Member] | ' | ' |
Summary of option activities under the 2007 Directors Equity Incentive Plan | ' | ' |
Outstanding at July 1, 2013, Options | 350,000 | 385,000 |
Granted, Options | 100,000 | 15,000 |
Exercised, Options | -65,000 | ' |
Forfeited or expired, Options | -70,000 | -50,000 |
Outstanding at June 30, 2014, Options | 315,000 | 350,000 |
Exercisable at June 30, 2014,Options | 315,000 | 350,000 |
Outstanding at July 1, 2013, Weighted- Average Exercise Price | $3.53 | $4.52 |
Granted, Weighted- Average Exercise Price | $3.41 | $2.07 |
Exercised, Weighted- Average Exercise Price | $1.72 | ' |
Forfeited or expired, Weighted- Average Exercise Price | ($4.81) | ($4.81) |
Outstanding at June 30, 2014, Weighted- Average Exercise Price | $3.62 | $3.53 |
Exercisable at June 30, 2014, Weighted- Average Exercise Price | $3.62 | $3.53 |
Outstanding at July 1, 2013, Weighted - Average Remaining Contractual Term (Years) | '1 year 11 months 16 days | '2 years 5 months 12 days |
Granted, Weighted - Average Remaining Contractual Term (Years) | '4 years 3 months 22 days | '4 years 8 months 19 days |
Outstanding at June 30, 2014, Weighted - Average Remaining Contractual Term (Years) | '2 years 7 months 17 days | '1 year 11 months 16 days |
Exercisable at June 30, 2014, Weighted - Average Remaining Contractual Term (Years) | '2 years 7 months 17 days | '1 year 11 months 16 days |
Outstanding at July 1, 2013, Aggregate Intrinsic Value | ' | ' |
Granted, Aggregate Intrinsic Value | ' | ' |
Exercised, Aggregate Intrinsic Value | 98 | ' |
Forfeited or expired, Aggregate Intrinsic Value | ' | ' |
Outstanding at June 30, 2014,Aggregate Intrinsic Value | 24 | ' |
Exercisable at June 30, 2014,Aggregate Intrinsic Value | $24 | ' |
STOCK_OPTIONS_Details_Narrativ
STOCK OPTIONS (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Proceeds from stock options exercised | $351 | ' |
Stock-based compensation expense | 216 | 42 |
Employee 2007 [Member] | ' | ' |
Shares authorized | 600,000 | ' |
Options granted | ' | ' |
Exercised during period | ' | ' |
Stock-based compensation expense | ' | 25 |
Unamortized stock-based compensation | 43 | 7 |
Vested stock options | 103,750 | 243,125 |
Weighted-average exercise price, vested options | $4.14 | $2.95 |
Weighted average contractual term, vested options | ' | '1 year 5 months 28 days |
Fair value of stock options, vested and outstanding | 429 | 485 |
Employee 2007 [Member] | Issuance 1 [Member] | ' | ' |
Option descriptions | 'Under the 2007 Employee Plan, all options must be granted with an exercise price of not less than fair value as of the grant date and the options granted must be exercisable within a maximum of ten years after the date of grant, or such lesser period of time as is set forth in the stock option agreements. The options may be exercisable (a) immediately as of the effective date of the stock option agreement granting the option, or (b) in accordance with a schedule related to the date of the grant of the option, the date of first employment, or such other date as may be set by the Compensation Committee. Generally, options granted under the 2007 Employee Plan are exercisable within five years after the date of grant, and vest over the period as follows: 25% vesting on the grant date and the remaining balance vesting in equal installments on the next three succeeding anniversaries of the grant date. The share-based compensation will be recognized in terms of the grade method on a straight-line basis for each separately vesting portion of the award. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2007 Employee Plan). | ' |
Options granted | 15,000 | ' |
Fair value of shares granted during period | 54 | ' |
Fair value of shares granted during period | $3.62 | ' |
Exercised during period | 126,500 | ' |
Proceeds from stock options exercised | 239 | ' |
Stock-based compensation expense | 41 | ' |
Weighted average contractual term, vested options | '2 years 1 month 6 days | ' |
Fair value options exercised | 175 | ' |
Employee 2007 [Member] | Issuance 2 [Member] | ' | ' |
Options granted | 35,000 | ' |
Fair value of shares granted during period | 109 | ' |
Fair value of shares granted during period | $3.10 | ' |
Director 2007 [Member] | ' | ' |
Shares authorized | 500,000 | 400,000 |
Option descriptions | 'The exercise price of the non-qualified options is 100% of the fair value of the underlying shares on the grant date. The options have five-year contractual terms and are generally exercisable immediately as of the grant date. | ' |
Options granted | 60,000 | 15,000 |
Fair value of shares granted during period | 217 | 17 |
Fair value of shares granted during period | $3.62 | $1.11 |
Exercised during period | 65,000 | 0 |
Proceeds from stock options exercised | 112 | ' |
Stock-based compensation expense | 175 | 17 |
Vested stock options | 315,000 | 350,000 |
Weighted-average exercise price, vested options | $3.62 | $3.53 |
Weighted average contractual term, vested options | '2 years 7 months 17 days | '1 year 11 months 25 days |
Fair value of stock options, vested and outstanding | 24 | 715 |
Director 2007 Grant 2 [Member] | ' | ' |
Options granted | 40,000 | ' |
Fair value of shares granted during period | $124 | ' |
Fair value of shares granted during period | $3.10 | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Notes to Financial Statements | ' | ' |
Income / (loss) attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $81 | ($671) |
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | -24 | -348 |
Net income / (loss) attributable to Trio-Tech International common shareholders | $57 | ($1,019) |
Basic and diluted (loss) / earnings/(loss) per share from continuing operations attributable to Trio-Tech International | $0.02 | ($0.20) |
Basic and diluted (loss) / earnings per share from discontinued operations attributable to Trio-Tech International | ($0.01) | ($0.11) |
Basic and diluted (loss) / earnings per share from net (loss) / income attributable to Trio-Tech International | $0.01 | ($0.31) |
Weighted average number of common shares outstanding basic | 3,513 | 3,322 |
Dilutive effect of stock options | 36 | ' |
Number of shares used to compute earnings per share diluted | 3,549 | 3,322 |
EARNINGS_PER_SHARE_Details_Nar
EARNINGS PER SHARE (Details Narrative) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Options to purchase shares of Common Stock | 455,000 | 613,500 |
Minimum Member | ' | ' |
Exercise Price | 2.07 | 1.72 |
Maximum Member | ' | ' |
Exercise Price | 4.35 | 9.57 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | Building and improvements | Building and improvements | Building and improvements | Building and improvements | Leasehold improvements | Leasehold improvements | Leasehold improvements | Leasehold improvements | Machinery and equipment | Machinery and equipment | Machinery and equipment | Machinery and equipment | Furniture and fixtures | Furniture and fixtures | Furniture and fixtures | Furniture and fixtures | Equipment under capital leases | Equipment under capital leases | Equipment under capital leases | Equipment under capital leases | Currency translation effect for fixed asset, gross | Currency translation effect for fixed asset, gross | ||
Minimum Member | Maximum Member | Minimum Member | Maximum Member | Minimum Member | Maximum Member | Minimum Member | Maximum Member | Minimum Member | Maximum Member | |||||||||||||||
Property, plant and equipment, Gross | $31,684 | $32,563 | $5,042 | $4,999 | ' | ' | $5,403 | $4,869 | ' | ' | $20,158 | $20,719 | ' | ' | $658 | $1,096 | ' | ' | $674 | $545 | ' | ' | ($251) | $335 |
Accumulated depreciation | -17,853 | -19,155 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization on equipment under capital leases | -370 | -422 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Currency translation effect | 80 | -135 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | $13,541 | $12,851 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Useful Life in Years | ' | ' | ' | ' | '3 years | '20 years | ' | ' | '3 years | '27 years | ' | ' | '3 years | '7 years | ' | ' | '3 years | '5 years | ' | ' | '3 years | '5 years | ' | ' |
PROPERTY_PLANT_AND_EQUIPMENT_D1
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation and amortization expenses | $2,294 | $2,491 |
ACCOUNTS_RECEIVABLE_AND_ALLOWA2
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Notes to Financial Statements | ' | ' |
Beginning | $139 | $122 |
Additions charged to expenses | 303 | 196 |
Recovered/Write-Off | -2 | -131 |
Currency translation effect | -2 | -48 |
Ending | $438 | $139 |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Notes to Financial Statements | ' | ' |
Payroll and related costs | $1,096 | $1,022 |
Commissions | 47 | 10 |
Customer deposits | 79 | 89 |
Legal and audit | 177 | 136 |
Sales tax | 120 | 76 |
Utilities | 156 | 138 |
Warranty | 60 | 61 |
Accrued purchase of materials and fixed assets | 358 | 1,033 |
Provision for re-instatement | 367 | 360 |
Other accrued expenses | 602 | 230 |
Currency translation effect | -16 | -95 |
Total | $3,046 | $3,060 |
WARRANTY_ACCRUAL_Details
WARRANTY ACCRUAL (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Notes to Financial Statements | ' | ' |
Beginning | $61 | $60 |
Additions charged to cost and expenses | 23 | 1 |
Recovered | -25 | ' |
Currency translation effect | 1 | ' |
Ending | $60 | $61 |
BANK_LOANS_PAYABLE_Details
BANK LOANS PAYABLE (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current portion | ($448) | ($770) |
Long term portion of bank loans payable | 2,598 | 2,613 |
Commercial Bank Note 1 [Member] | ' | ' |
Bank loan payable | 260 | 885 |
Commercial Bank Note 2 [Member] | ' | ' |
Bank loan payable | $2,786 | $2,498 |
BANK_LOANS_PAYABLE_Details_1
BANK LOANS PAYABLE (Details 1) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Notes to Financial Statements | ' | ' |
2015 | $448 | $770 |
2016 | 198 | 413 |
2017 | 209 | 161 |
2018 | 220 | 169 |
2019 | 138 | 178 |
Thereafter | 1,833 | 1,692 |
Total obligations and commitments | $3,046 | $3,383 |
ADOPTION_OF_ASC_TOPIC_740_Deta
ADOPTION OF ASC TOPIC 740 (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Adoption Of Asc Topic 740 Details | ' | ' |
Balance at July 1 | ($250) | ($249) |
Additions based on current year tax positions | ' | ' |
Additions for prior year(s) tax positions | ' | -1 |
Reductions for prior year(s) tax positions | ' | ' |
Settlements | ' | ' |
Expiration of statute of limitations | ' | ' |
Balance at June 30 | ($250) | ($250) |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Current | ' | ' |
Federal | ' | ' |
State | 5 | 2 |
Foreign | -175 | -956 |
Total | -170 | -954 |
Deferred | ' | ' |
Federal | ' | ' |
State | ' | ' |
Foreign | -174 | 694 |
Total | -174 | 694 |
Total provision | ($344) | ($260) |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Statutory federal tax rate | -34.00% | -34.00% |
State taxes, net of federal benefit | -6.00% | -6.00% |
Foreign tax related to profits making subsidiaries | -400.00% | -1.00% |
NOL Expiration | 5.00% | 0.00% |
Other | 5.00% | 5.00% |
Changes in valuation allowance | 95.00% | 0.00% |
Effective rate | -335.00% | -41.00% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating losses and credits | $1,572 | $956 |
Inventory valuation | 99 | 99 |
Depreciation | ' | ' |
Provision for bad debts | 788 | 3 |
Accrued vacation | 15 | 16 |
Capital loss | 78 | ' |
Accrued expenses | 217 | 135 |
Investment in subsidiaries | 182 | ' |
Deferred Income | 201 | ' |
Other | 112 | 3 |
Total deferred tax assets | 3,264 | 1,212 |
Deferred tax liabilities: | ' | ' |
Accrued expenses | -10 | ' |
Depreciation | -192 | -191 |
Other | ' | ' |
Total deferred income tax liabilities | -202 | -191 |
Subtotal | 3,062 | 1,019 |
Valuation allowance | -2,876 | -1,007 |
Net deferred tax assets | 186 | 12 |
Deferred tax assets | 388 | 203 |
Deferred tax liabilities | -202 | -191 |
Net deferred tax assets | $186 | $12 |
INCOME_TAXES_Details_Narrative
INCOME TAXES (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Net operating loss carryforwards, federal | $459 | ' |
Net operating loss carryforwards, state | 931 | ' |
Operating Loss Carryforwards Expiration Date | 1-Jan-23 | ' |
Federal tax credit carryforwards | 834 | ' |
Increase (decrease) in valuation allowance | 1,869 | -134 |
Income Tax Benefit, undistributed earnings | $1,152 | $1,026 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Leases | ' | ' |
2015 | $599 | $691 |
2016 | 665 | 639 |
2017 | 558 | 666 |
Thereafter | 2,983 | 1,057 |
Total future minimum lease payments, Capital Leases | 4,805 | 3,053 |
Less amount representing interest | ' | ' |
Present value of net minimum lease payments | ' | 333 |
Less current portion of capital lease obligations | ' | -105 |
Long-term obligations under capital leases | ' | 228 |
Capital Lease [Member] | ' | ' |
Leases | ' | ' |
2015 | 81 | 105 |
2016 | 85 | 68 |
2017 | 83 | 72 |
Thereafter | 32 | 88 |
Total future minimum lease payments, Capital Leases | 281 | 333 |
Less amount representing interest | ' | ' |
Present value of net minimum lease payments | 281 | ' |
Less current portion of capital lease obligations | -81 | ' |
Long-term obligations under capital leases | 200 | ' |
Operating Lease [Member] | ' | ' |
Leases | ' | ' |
2015 | 710 | 723 |
2016 | 795 | 639 |
2017 | 600 | 666 |
Thereafter | 3,001 | 1,057 |
Total future minimum lease payments, Capital Leases | 5,106 | 3,085 |
Sub-lease (Income) [Member] | ' | ' |
Leases | ' | ' |
2015 | -111 | -32 |
2016 | -130 | ' |
2017 | -42 | ' |
Thereafter | -18 | ' |
Total future minimum lease payments, Capital Leases | ($301) | ($32) |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 1) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Leases | ' | ' |
2014 | $599 | $691 |
2015 | 665 | 639 |
2016 | 558 | 666 |
Thereafter | 2,983 | 1,057 |
Total future minimum lease payments, Capital Leases | 4,805 | 3,053 |
Less amount representing interest | ' | ' |
Present value of net minimum lease payments | ' | 333 |
Less current portion of capital lease obligations | ' | -105 |
Long-term obligations under capital leases | ' | 228 |
Capital Lease [Member] | ' | ' |
Leases | ' | ' |
2014 | 81 | 105 |
2015 | 85 | 68 |
2016 | 83 | 72 |
Thereafter | 32 | 88 |
Total future minimum lease payments, Capital Leases | 281 | 333 |
Less amount representing interest | ' | ' |
Present value of net minimum lease payments | 281 | ' |
Less current portion of capital lease obligations | -81 | ' |
Long-term obligations under capital leases | 200 | ' |
Operating Lease [Member] | ' | ' |
Leases | ' | ' |
2014 | 710 | 723 |
2015 | 795 | 639 |
2016 | 600 | 666 |
Thereafter | 3,001 | 1,057 |
Total future minimum lease payments, Capital Leases | 5,106 | 3,085 |
Sub-lease (Income) [Member] | ' | ' |
Leases | ' | ' |
2014 | -111 | -32 |
2015 | -130 | ' |
2016 | -42 | ' |
Thereafter | -18 | ' |
Total future minimum lease payments, Capital Leases | ($301) | ($32) |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Minimum Member | ' |
Lease rates | 1.88% |
Total rental income from subleases | $1 |
Total rental expense on operating leases | 687 |
Maximum Member | ' |
Lease rates | 4.30% |
Total rental income from subleases | 9 |
Total rental expense on operating leases | 941 |
JiaSheng_RMB [Member] | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | 601 |
Malaysia US [Member] | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | 184 |
TianjinRMB [Member] | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | 2,199 |
TianjnUS [Member] | ' |
Capital commitments for the purchase of equipment and other related infrastructure costs | $353 |
CONCENTRATION_OF_CUSTOMERS_Det
CONCENTRATION OF CUSTOMERS (Details) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Sales [Member] | ' | ' |
Customer A | 60.60% | 62.30% |
Account Receivable [Member] | ' | ' |
Customer A | 74.30% | 66.40% |
INVESTMENT_PROPERTIES_Details
INVESTMENT PROPERTIES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
China Properties [Member] | ' | ' |
Purchase of Property | $2,122 | $2,145 |
Currency Translation | -23 | ' |
Accumulated depreciation on rental property | -476 | -375 |
Net investment in property | 1,646 | 1,770 |
Malaysia Properties [Member] | ' | ' |
Purchase of Property | 212 | 214 |
Accumulated depreciation on rental property | -93 | -91 |
Net investment in property | 119 | 123 |
MaoYe [Member] | ' | ' |
Purchase of Property | 904 | 904 |
JiangHuai [Member] | ' | ' |
Purchase of Property | 586 | ' |
Fu Li [Member] | ' | ' |
Purchase of Property | 655 | 655 |
Jiang Huai [Member] | ' | ' |
Purchase of Property | ' | 586 |
Penang [Member] | ' | ' |
Purchase of Property | ' | 214 |
Rmb Currency [Member] | MaoYe [Member] | ' | ' |
Purchase of Property | ' | 5,554 |
Rmb Currency [Member] | JiangHuai [Member] | ' | ' |
Purchase of Property | ' | 3,600 |
Rmb Currency [Member] | Fu Li [Member] | ' | ' |
Purchase of Property | ' | 4,025 |
R M B [Member] | China Properties [Member] | ' | ' |
Purchase of Property | 13,179 | 13,179 |
Currency Translation | ' | ' |
Accumulated depreciation on rental property | -2,961 | -2,302 |
Net investment in property | 10,218 | 10,877 |
R M [Member] | Malaysia Properties [Member] | ' | ' |
Purchase of Property | 681 | 681 |
Accumulated depreciation on rental property | -300 | -294 |
Net investment in property | 381 | 387 |
R M [Member] | Penang [Member] | ' | ' |
Purchase of Property | 681 | 681 |
MaoYe [Member] | Rmb Currency [Member] | ' | ' |
Purchase of Property | 5,554 | ' |
Jiang Huai [Member] | Rmb Currency [Member] | ' | ' |
Purchase of Property | 3,600 | ' |
Fu Li [Member] | Rmb Currency [Member] | ' | ' |
Purchase of Property | 4,025 | ' |
Penang [Member] | ' | ' |
Purchase of Property | $212 | ' |
INVESTMENT_PROPERTIES_Details_
INVESTMENT PROPERTIES (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Rental income | $177 | $132 |
Depreciation expenses | 109 | 112 |
JiangHuai RMB [Member] | ' | ' |
Cash purchase price | 3,600 | ' |
Jiang Huai [Member] | ' | ' |
Cash purchase price | 586 | ' |
Rental income | 13 | 3 |
MaoYe RMB [Member] | ' | ' |
Cash purchase price | 5,554 | ' |
MaoYe [Member] | ' | ' |
Cash purchase price | 904 | ' |
Rental agreement term | '5 years | ' |
Annual rent increase | 8.00% | ' |
Rental income | 115 | 86 |
Fu Li RMB [Member] | ' | ' |
Cash purchase price | 4,025 | ' |
Fu Li [Member] | ' | ' |
Cash purchase price | 655 | ' |
Initial rental increase | 20.00% | ' |
Annual rent increase | 10.00% | ' |
Rental income | 49 | 43 |
Penang [Member] | ' | ' |
Rental income | ' | ' |
Factory reclassified to investment property | ' | 119 |
Depreciation expenses | $2 | $7 |
LOAN_RECEIVABLE_FROM_PROPERTY_2
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Loan receivables, short term | ' | $1,139 |
Loan receivables, long term | 805 | ' |
R M B [Member] | ' | ' |
Loan receivables, short term | ' | 7,000 |
Loan receivables, long term | 5,000 | ' |
Jiang Huai [Member] | ' | ' |
Loan receivables, short term | 325 | 325 |
Less: Allowance for Impairment | -325 | ' |
Jiang Huai [Member] | R M B [Member] | ' | ' |
Loan receivables, short term | 2,000 | 2,000 |
Less: Allowance for Impairment | -2,000 | ' |
JunZhour [Member] | ' | ' |
Loan receivables, long term | 805 | ' |
JunZhour [Member] | R M B [Member] | ' | ' |
Loan receivables, long term | 5,000 | ' |
Jia Sheng [Member] | ' | ' |
Loan receivables, short term | ' | 814 |
Jia Sheng [Member] | R M B [Member] | ' | ' |
Loan receivables, short term | ' | $5,000 |
LOAN_RECEIVABLE_FROM_PROPERTY_3
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Loan income receivable | $163 | $520 |
Jian Sheng [Member] | ' | ' |
Other income | ' | 200 |
JiaSheng RMB [Member] | ' | ' |
Loan income receivable | 5,000 | ' |
Guaranteed income | 1,250 | ' |
Installment payment amount | 313 | ' |
Jia Sheng [Member] | ' | ' |
Loan income receivable | 805 | ' |
Guaranteed income | 196 | ' |
Installment payment amount | 51 | ' |
Other income | 202 | ' |
JiangHuai RMB [Member] | ' | ' |
Loan income receivable | 2,000 | ' |
Installment payment amount | 33 | ' |
Jiang Huai [Member] | ' | ' |
Loan income receivable | 322 | ' |
Guaranteed income | 66 | ' |
Installment payment amount | 5 | ' |
Other income | ' | 59 |
Allwance for doubtful receivables | $325 | ' |
INVESTMENT_Details_Narrative
INVESTMENT (Details Narrative) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Cash offset Received | $803 |
Net investment | 1,606 |
Agreement purchase price, non-monetary consideration | 1,634 |
Agreement purchase price, cash consideration | 1,307 |
Acquisition percentage | 10.00% |
Investment reduced | 22 |
Receivables | 803 |
Carrying value of investment | 783 |
JiaSheng_RMB [Member] | ' |
Cash offset Received | 5,000 |
Net investment | 10,000 |
Agreement purchase price, non-monetary consideration | 10,000 |
Agreement purchase price, cash consideration | 8,000 |
Acquisition percentage | 10.00% |
Investment reduced | 137 |
Receivables | 5,000 |
Carrying value of investment | $4,863 |
OTHER_INCOME_NET_Details
OTHER INCOME, NET (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Other Income Net Details | ' | ' |
Investment income deemed interest income | $202 | $259 |
Interest income | 45 | 33 |
Other rental income | 215 | 51 |
Exchange (loss) / gain | -25 | 65 |
Allowance for doubtful deemed loan receivables | -325 | ' |
Allowance for doubtful deemed interest receivables | -80 | ' |
Other miscellaneous income | 131 | 112 |
Total | $163 | $520 |
OTHER_INCOME_NET_Details_Narra
OTHER INCOME, NET (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' |
Other investment income | $202 | $259 |
DISCONTINUED_OPERATION_AND_COR2
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Notes to Financial Statements | ' | ' |
Revenue | ($16) | $389 |
Cost of sales | 1 | 821 |
Gross loss | -17 | -432 |
General and administrative | 13 | 179 |
Selling | ' | 12 |
Impairment | ' | ' |
Total | 13 | 191 |
Loss from discontinued operation | -30 | -623 |
Other charges | -11 | -111 |
Net loss from discontinued operation | ($41) | ($734) |
DISCONTINUED_OPERATION_AND_COR3
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 |
Notes to Financial Statements | ' | ' |
Outstanding balance of accounts payable, discontinued operations | ' | $293 |
General and administrative expenses, discontinued operations | $63 | ' |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Net revenue | $36,262 | $32,159 |
Operating (loss) income | -2 | -1,484 |
Total assets | 34,590 | 36,044 |
Depreciation and amortization | 2,294 | 2,491 |
Capital expenditures | 3,090 | 1,838 |
Manufacturing [Member] | ' | ' |
Net revenue | 15,715 | 15,254 |
Operating (loss) income | -761 | -1,089 |
Total assets | 10,761 | 13,867 |
Depreciation and amortization | 162 | 158 |
Capital expenditures | 340 | 46 |
Testing Services [Member] | ' | ' |
Net revenue | 18,017 | 15,029 |
Operating (loss) income | 984 | 383 |
Total assets | 19,367 | 17,268 |
Depreciation and amortization | 2,023 | 2,222 |
Capital expenditures | 2,749 | 1,788 |
Distribution [Member] | ' | ' |
Net revenue | 2,353 | 1,355 |
Operating (loss) income | 232 | 173 |
Total assets | 465 | 514 |
Depreciation and amortization | ' | 2 |
Capital expenditures | ' | 1 |
RealEstate [Member] | ' | ' |
Net revenue | 177 | 132 |
Total assets | 3,788 | 4,173 |
Depreciation and amortization | 109 | 109 |
Capital expenditures | 1 | 3 |
Fabrication Services [Member] | ' | ' |
Net revenue | ' | 389 |
Operating (loss) income | ' | -686 |
Total assets | 77 | 127 |
Depreciation and amortization | ' | ' |
Capital expenditures | ' | ' |
CorporateAndUnallocated [Member] | ' | ' |
Net revenue | ' | ' |
Operating (loss) income | -364 | -59 |
Total assets | 132 | 95 |
Depreciation and amortization | ' | ' |
Capital expenditures | ' | ' |
BUSINESS_SEGMENTS_Details_Narr
BUSINESS SEGMENTS (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating (loss) income | ($2) | ($1,484) |
Total inter-segment revenue | 591 | 794 |
Fabrication Services [Member] | ' | ' |
Operating (loss) income | ' | -686 |
Corporate expenses allocation | ' | -63 |
RealEstate [Member] | ' | ' |
Other income | $202 | $259 |
LINES_OF_CREDIT_Details
LINES OF CREDIT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 |
LineOfCreditMember | LineOfCreditMember | ||
Type of facility | 'Line of Credit | ' | ' |
Interst rate | 'With interest rates ranging from 1.77% to 6.04% | ' | ' |
Credit limitation | ' | $8,299 | $9,073 |
Unused credit | ' | $4,435 | $5,306 |
OPERATING_LEASES_Details
OPERATING LEASES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Leases [Abstract] | ' | ' |
2015 | $115 | $174 |
2016 | 126 | 112 |
2017 | 136 | 123 |
2018 | 145 | 133 |
2019 | 6 | 150 |
Total | $528 | $692 |
OPERATING_LEASES_Details_1
OPERATING LEASES (Details 1) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Leases [Abstract] | ' | ' |
2014 | $115 | $174 |
2015 | 126 | 112 |
2016 | 136 | 123 |
2017 | 145 | 133 |
2018 | 6 | 150 |
Total | $528 | $692 |
OPERATING_LEASES_Details_Narra
OPERATING LEASES (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Leases [Abstract] | ' | ' |
Depreciation expense | $109 | $112 |
TERM_DEPOSITS_Details
TERM DEPOSITS (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Term Deposits Details | ' | ' |
Short-term deposits | $102 | $104 |
Restricted term deposits | 3,541 | 3,494 |
Total | $3,643 | $3,598 |
OTHER_ASSETS_Other_assets_Deta
OTHER ASSETS - Other assets (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Down payment for purchase of fixed assets | $1,103 | $74 |
Deposit for rental and utilities | 158 | 157 |
Others | 2 | 3 |
Ending balance | $1,263 | $234 |
RELATED_PARTY_TRANSACTION_Deta
RELATED PARTY TRANSACTION (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 |
Notes to Financial Statements | ' | ' |
Other payable related party | ' | $515 |
Related Party receivable forgiveness | $515 | ' |