Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Dec. 31, 2014 | Feb. 08, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | TRIO-TECH INTERNATIONAL | |
Entity Central Index Key | 732026 | |
Document Type | 10-Q | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -24 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,513,055 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2015 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $2,409 | $2,938 |
Short-term deposits | 103 | 102 |
Trade accounts receivable, less allowance for doubtful accounts of $477 and $438 | 8,232 | 8,625 |
Other receivables | 405 | 311 |
Inventories, less provision for obsolete inventory of $740 and $844 | 1,450 | 1,106 |
Prepaid expenses and other current assets | 263 | 205 |
Total current assets | 12,862 | 13,287 |
NON-CURRENT ASSETS | ||
Deferred tax asset | 368 | 388 |
Investments | ||
Investment properties, Net | 1,703 | 1,765 |
Property, plant and equipment, net | 12,596 | 13,541 |
Loans receivable from property development projects | 805 | |
Other assets | 1,997 | 1,263 |
Restricted term deposits | 3,344 | 3,541 |
Total non-current assets | 20,008 | 21,303 |
TOTAL ASSETS | 32,870 | 34,590 |
CURRENT LIABILITIES: | ||
Lines of credit | 2,689 | 3,767 |
Accounts payable | 3,332 | 3,162 |
Accrued expenses | 2,992 | 3,046 |
Income taxes payable | 267 | 214 |
Current portion of bank loans payable | 178 | 448 |
Current portion of capital leases | 79 | 81 |
Total current liabilities | 9,537 | 10,718 |
NON-CURRENT LIABILITIES | ||
Bank loans payable, net of current portion | 2,298 | 2,598 |
Capital leases, net of current portion | 171 | 200 |
Deferred tax liabilities | 129 | 202 |
Other non-current liabilities | 38 | 39 |
Total non-current liabilities | 2,636 | 3,039 |
TOTAL LIABILITIES | 12,173 | 13,757 |
Commitment and contingencies | ||
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: | ||
Common stock, no par value, 15,000,000 shares authorized; 3,513,055 shares issued and outstanding as at December 31, 2014 and June 30, 2014, respectively | 10,882 | 10,882 |
Paid-in capital | 3,070 | 2,972 |
Accumulated retained earnings | 1,695 | 1,725 |
Accumulated other comprehensive gain-translation adjustments | 3,170 | 3,522 |
Total Trio-Tech International shareholders' equity | 18,817 | 19,101 |
Non-controlling interest | 1,880 | 1,732 |
TOTAL EQUITY | 20,697 | 20,833 |
TOTAL LIABILITIES AND EQUITY | $32,870 | $34,590 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $477 | $438 |
Provision for obsolete inventory | $740 | $844 |
Common stock, Authorized | 15,000,000 | 15,000,000 |
Common stock, Issued | 3,513,055 | 3,513,055 |
Common stock, outstanding | 3,513,055 | 3,513,055 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Revenue | ||||
Products | $3,780 | $4,696 | $7,212 | $10,101 |
Testing services | 5,073 | 4,597 | 9,691 | 8,645 |
Others | 44 | 46 | 87 | 90 |
Total | 8,897 | 9,339 | 16,990 | 18,836 |
Cost of Sales | ||||
Cost of products sold | 3,063 | 4,064 | 6,276 | 8,410 |
Cost of testing services rendered | 3,356 | 3,253 | 6,405 | 6,278 |
Others | 35 | 35 | 69 | 70 |
Total | 6,454 | 7,352 | 12,750 | 14,758 |
Gross Margin | 2,443 | 1,987 | 4,240 | 4,078 |
Operating Expenses | ||||
General and administrative | 1,711 | 1,838 | 3,438 | 3,672 |
Selling | 165 | 208 | 296 | 413 |
Research and development | 47 | 49 | 94 | 101 |
Impairment loss | 55 | 70 | ||
Loss / (gain) on disposal of property, plant and equipment | 28 | -2 | 28 | 11 |
Total operating expenses | 2,006 | 2,093 | 3,926 | 4,197 |
Income / (Loss) from Operations | 437 | -106 | 314 | -119 |
Other (Expenses) / Income | ||||
Interest expenses | -58 | -66 | -122 | -134 |
Other income / (expenses), net | 7 | -205 | 54 | -41 |
Total other (expenses) / income | -51 | -271 | -68 | -175 |
Income / (Loss) from Continuing Operations before Income Taxes | 386 | -377 | 246 | -294 |
Income Tax (Expenses) / Benefits | -132 | 39 | -86 | 82 |
Income / (loss) from continuing operations before non-controlling interest, net of tax | 254 | -338 | 160 | -212 |
Other Operating Activities | ||||
Equity in earnings of unconsolidated jointB venture, net of tax | ||||
Discontinued Operations (Note 16) | ||||
Income / (loss) from discontinued operations, net of tax | -6 | -30 | 20 | -72 |
NET INCOME / (LOSS) | 248 | -368 | 180 | -284 |
Less: net income / (loss) attributable to non-controlling interest | 154 | -3 | 210 | 98 |
Net (Loss) / Income Attributable to Trio-Tech International Common Shareholders | 94 | -365 | -30 | -382 |
Amounts Attributable to Trio-Tech International Common Shareholders: | ||||
(Loss) / income from continuing operations, net of tax | 97 | -348 | -41 | -342 |
Income / (loss) from discontinued operations, net of tax | -3 | -17 | 11 | -40 |
Net (Loss) / Income Attributable to Trio-Tech International Common Shareholders | 94 | -365 | -30 | -382 |
Comprehensive Income / (Loss) Attributable to Trio-Tech International Common Shareholders: | ||||
Net income / (loss) | 248 | -368 | 180 | -284 |
Foreign currency translation, net of tax | -574 | 39 | -414 | -144 |
Comprehensive Loss | -326 | -329 | -243 | -428 |
Less: Comprehensive (loss) / income attributable to non-controlling interest | 36 | -1 | 150 | -5 |
Comprehensive Loss Attributable to Trio-Tech International Common Shareholders | ($362) | ($328) | ($384) | ($423) |
Basic and Diluted (Loss) / Earnings per share: | ||||
Basic and diluted (loss) / earnings per share from continuing operations attributable to Trio-Tech International | $0.03 | ($0.10) | ($0.01) | ($0.10) |
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | ($0.01) | |||
Basic and Diluted (Loss) /Earnings per Share from Net (Loss) / Income Attributable to Trio-Tech International | $0.03 | ($0.10) | ($0.01) | ($0.11) |
Weighted average number of common shares outstanding | ||||
Basic | 3,513 | 3,508 | 3,513 | 3,508 |
Dilutive effect of stock options | ||||
Number of shares used to compute earnings per share diluted | 3,513 | 3,508 | 3,513 | 3,508 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-in Capital | Accumulated Retained Earnings | Accumulated Other Comprehensive Income | Non-Controlling Interest | Total |
In Thousands, except Share data | ||||||
Beginning Balance, Amount at Jun. 30, 2013 | $10,531 | $2,756 | $1,668 | $3,680 | $1,971 | $20,606 |
Beginning Balance, Shares at Jun. 30, 2013 | 3,322 | |||||
Stock option expenses | 216 | 216 | ||||
Net (loss) / income | 57 | 144 | 201 | |||
Translation adjustment | -158 | -70 | -228 | |||
Dividend declared by subsidiary | -313 | -313 | ||||
Stock options exercised, amount | 351 | 351 | ||||
Stock options exercised, Shares | 191 | |||||
Ending Balance, Amount at Jun. 30, 2014 | 10,882 | 2,972 | 1,725 | 3,522 | 1,732 | 20,833 |
Ending Balance, Shares at Jun. 30, 2014 | 3,513 | |||||
Stock option expenses | 89 | 89 | ||||
Contribution to capital - payable forgiveness | 9 | 9 | ||||
Net (loss) / income | -30 | 210 | 180 | |||
Translation adjustment | -352 | -62 | -414 | |||
Ending Balance, Amount at Dec. 31, 2014 | $10,882 | $3,070 | $1,695 | $3,170 | $1,880 | $20,697 |
Ending Balance, Shares at Dec. 31, 2014 | 3,513 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash Flow from Operating Activities | ||
Net income / (loss) | $180 | ($284) |
Depreciation and amortization | 1,189 | 1,198 |
Bad debt expense, net | 56 | 337 |
Inventory recovery | -73 | -47 |
Warranty (recovery) / expense, net | -9 | 3 |
Accrued interest expense, net of interest income | 49 | 5 |
Loss on sale of property - continued operations | 28 | 11 |
Impairment loss | 70 | |
Contribution to capital - payable forgiveness | 9 | |
Stock option exercises | 89 | 200 |
Deferred tax provision | -50 | -23 |
Changes in operating assets and liabilities, net of acquisition effects | ||
Accounts receivables | 354 | -504 |
Other receivables | -94 | 1,462 |
Other assets | 78 | -916 |
Inventories | -318 | 1,192 |
Prepaid expenses and other current assets | -58 | -87 |
Accounts payable and accrued liabilities | 190 | -380 |
Income tax payable | 55 | 8 |
Other non-current liabilities | 26 | |
Net Cash Provided by Operating Activities | 1,745 | 2,201 |
Cash Flow from Investing Activities | ||
Additions to property, plant and equipment | -899 | -1,721 |
Proceeds from disposal of plant, property and equipment | 16 | 31 |
Net Cash Used in Investing Activities | -883 | -1,690 |
Cash Flow from Financing Activities | ||
Repayment of lines of credit | -891 | -445 |
Repayment of bank loans and capital leases | -473 | -556 |
Proceeds from long-term bank loans | 32 | 68 |
Proceeds from exercising stock options | 342 | |
Dividend paid to non-controlling interest | -80 | |
Net Cash Used in Financing Activities | -1,332 | -671 |
Effect of Changes in Exchange Rate | -59 | -59 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -529 | -219 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,938 | 2,793 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,409 | 2,574 |
Cash paid during the period for Interest | 125 | 132 |
Cash paid during the period for Income taxes | 76 | 20 |
Non-Cash Transactions | ||
Capital lease of property, plant and equipment | $32 | $68 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended | ||
Dec. 31, 2014 | |||
Notes to Financial Statements | |||
ORGANIZATION AND BASIS OF PRESENTATION (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | |||
Trio-Tech International (the “Company” or “TTI” hereafter) was incorporated in fiscal 1958 under the laws of the State of California. TTI provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia. In addition, TTI operates testing facilities in the United States. The Company also designs, develops, manufactures and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components. In fiscal 2015 TTI conducted business in the foregoing four segments: Manufacturing, Testing Services, Distribution and Real Estate. TTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand and China as follows: | |||
Ownership | Location | ||
Express Test Corporation (Dormant) | 100% | Van Nuys, California | |
Trio-Tech Reliability Services (Dormant) | 100% | Van Nuys, California | |
KTS Incorporated, dba Universal Systems (Dormant) | 100% | Van Nuys, California | |
European Electronic Test Centre (Dormant) | 100% | Dublin, Ireland | |
Trio-Tech International Pte. Ltd. | 100% | Singapore | |
Universal (Far East) Pte. Ltd. * | 100% | Singapore | |
Trio-Tech International (Thailand) Co. Ltd. * | 100% | Bangkok, Thailand | |
Trio-Tech (Bangkok) Co. Ltd. | 100% | Bangkok, Thailand | |
(49% owned by Trio-Tech International Pte. Ltd. and 51% owned by | |||
Trio-Tech International (Thailand) Co. Ltd.) | |||
Trio-Tech (Malaysia) Sdn. Bhd. | 55% | Penang and Selangor, Malaysia | |
(55% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Kuala Lumpur) Sdn. Bhd. | 55% | Selangor, Malaysia | |
(100% owned by Trio-Tech Malaysia Sdn. Bhd.) | |||
Prestal Enterprise Sdn. Bhd. | 76% | Selangor, Malaysia | |
(76% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Suzhou) Co. Ltd. * | 100% | Suzhou, China | |
Trio-Tech (Shanghai) Co. Ltd. * (Dormant) | 100% | Shanghai, China | |
Trio-Tech (Chongqing) Co. Ltd. * | 100% | Chongqing, China | |
SHI International Pte. Ltd. (Dormant) | 55% | Singapore | |
(55% owned by Trio-Tech International Pte. Ltd) | |||
PT SHI Indonesia (Dormant) | 55% | Batam, Indonesia | |
(100% owned by SHI International Pte. Ltd.) | |||
Trio-Tech (Tianjin) Co. Ltd. * | 100% | Tianjin, China | |
* 100% owned by Trio-Tech International Pte. Ltd. | |||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. All significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements are presented in U.S. dollars. The accompanying condensed consolidated financial statements do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. Operating results for the six months ended December 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report for the fiscal year ended June 30, 2014. |
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
NEW ACCOUNTING PRONOUNCEMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | The Financial Accounting Standards Board (“FASB”) amended ASU 2014-15 to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. |
Under GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. | |
Currently, GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. | |
ASU 2014-15 provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. | |
The amendments in ASU 2014-15 are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. While early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued, the Company has not elected to early adopt. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |
FASB has issued converged standards on revenue recognition. Specifically, the Board has issued FASB Accounting Standards Update No. 2014-09 (“ASU 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). ASU 2014-09 will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. ASU 2014-09 also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of 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 ASU 2014-09. | |
For a public entity, the amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |
The FASB has issued ASU No. 2014-08 (“ASU 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 ASU 2014-08 change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. | |
Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. | |
In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. | |
The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. | |
The amendments in the ASU 2014-08 are effective in the first quarter of 2015 for public organizations with calendar year ends. For most nonpublic organizations, it is effective for annual financial statements with fiscal years beginning on or after December 15, 2014. Early adoption is permitted. The adoption of this update did not have a significant effect on the Company’s consolidated financial position or results of operations. | |
Other new pronouncements issued but not yet effective until December 31, 2014 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
INVENTORIES
INVENTORIES | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes to Financial Statements | |||||||||
INVENTORIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Inventories consisted of the following: | ||||||||
Dec. 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Raw materials | $ | 975 | $ | 1,165 | |||||
Work in progress | 861 | 583 | |||||||
Finished goods | 430 | 184 | |||||||
Less: provision for obsolete inventory | (740 | ) | (844 | ) | |||||
Currency translation effect | (76 | ) | 18 | ||||||
$ | 1,450 | $ | 1,106 | ||||||
The following table represents the changes in provision for obsolete inventory: | |||||||||
Dec. 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Beginning | $ | 844 | $ | 912 | |||||
Additions charged to expenses | 26 | - | |||||||
Usage - disposition | (99 | ) | (76 | ) | |||||
Currency translation effect | (31 | ) | 8 | ||||||
Ending | $ | 740 | $ | 844 |
STOCK_OPTIONS
STOCK OPTIONS | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
STOCK OPTIONS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | On September 24, 2007, the Company’s Board of Directors unanimously adopted the 2007 Employee Stock Option Plan (the “2007 Employee Plan”) and the 2007 Directors Equity Incentive Plan (the “2007 Directors Plan”) each of which was approved by the shareholders on December 3, 2007. Each of those plans was amended by the Board in 2010 to increase the number of shares covered thereby, which amendments were approved by the shareholders on December 14, 2010. At present, the 2007 Employee Plan provides for awards of up to 600,000 shares of the Company’s Common Stock to 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: | |||||||||||||||||
Six Months | Year Ended | ||||||||||||||||
Ended | 30-Jun-14 | ||||||||||||||||
December 31,2014 | |||||||||||||||||
Expected volatility | 71.44 to 104.94 | % | 70.01 to 104.94 | % | |||||||||||||
Risk-free interest rate | 0.30% to 0.78 | % | 0.30% to 0.78 | % | |||||||||||||
Expected life (years) | 2.5 | 2.50 - 3.25 | |||||||||||||||
The expected volatilities are based on the historical volatility of the Company’s stock. Due to higher volatility, the observation is made on a daily basis for the six months ended December 31, 2014. The observation period covered is consistent with the expected life of options. The expected life of the options granted to employees has been determined utilizing the “simplified” method as prescribed by ASC Topic 718 Stock Based Compensation, which, among other provisions, allows 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 is the average of the time to vesting and the full term of the option. The risk-free rate is consistent with the expected life of the stock options and is based on the United States Treasury yield curve in effect at the time of grant. | |||||||||||||||||
2007 Employee Stock Option Plan | |||||||||||||||||
The Company’s 2007 Employee Plan permits the grant of stock options to its employees covering up to an aggregate of 600,000 shares of Common Stock. Under the 2007 Employee Plan, all options must be granted with an exercise price of not less than fair value as of the grant date and the options granted must be exercisable within a maximum of ten years after the date of grant, or such lesser period of time as is set forth in the stock option agreements. The options may be exercisable (a) immediately as of the effective date of the stock option agreement granting the option, or (b) in accordance with a schedule related to the date of the grant of the option, the date of first employment, or such other date as may be set by the Compensation Committee. Generally, options granted under the 2007 Employee Plan are exercisable within five years after the date of grant, and vest over the period as follows: 25% vesting on the grant date and the remaining balance vesting in equal installments on the next three succeeding anniversaries of the grant date. The share-based compensation will be recognized in terms of the grade method on a straight-line basis for each separately vesting portion of the award. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2007 Employee Plan). | |||||||||||||||||
The Company did not grant any options pursuant to the 2007 Employee Plan during the six months ended December 31, 2014. The Company recognized stock-based compensation expenses of $7 in the six months ended December 31, 2014 under the 2007 Employee Plan. The balance of unamortized stock-based compensation of $20 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 two years. | |||||||||||||||||
During the three and six months ended December 31, 2013, the Company granted stock options covering 15,000 and 35,000 shares of Common Stock respectively, to certain employees pursuant to the 2007 Employee Plan. The exercise price of these stock options 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) the dates of grant, September 17, 2013 and December 9, 2013, respectively. The stock options covering 15,000 shares vested as of the grant date, while the stock options covering 35,000 shares 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 values as of December 31, 2013 of the options to purchase 15,000 and 35,000 shares of the Company’s Common Stock were approximately $22 and $3, respectively, based on the fair values of $1.52 and $2.04 per share, respectively, determined by using the Black Scholes option pricing model. | |||||||||||||||||
No stock options were exercised during the three and six month period ended December 31, 2014. | |||||||||||||||||
Stock options to purchase 121,500 shares of Common Stock were exercised during the six month period ended December 31, 2013. The total proceeds received were $230. The Company recognized stock-based compensation expenses of $25 in the six months ended December 31, 2013 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. | |||||||||||||||||
As of December 31, 2014, there were vested employee stock options that were exercisable covering a total of 112,500 shares of Common Stock. The weighted-average exercise price was $4.06 and the weighted average contractual term was 1.78 years. The total fair value of vested and outstanding employee stock options as of December 31, 2014 was $456. | |||||||||||||||||
As of December 31, 2013, there were vested employee stock options covering a total of 125,750 shares of Common Stock. The weighted-average exercise price was $3.72 and the weighted average remaining contractual term was 2.20 years. The total fair value of vested employee stock options as of December 31, 2013 was $467. | |||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the six month period ended December 31, 2014 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2014 | 130,000 | $ | 3.93 | 2.57 | $ | 13 | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | - | - | - | - | |||||||||||||
Outstanding at December 31, 2014 | 130,000 | $ | 3.93 | 2.07 | $ | - | |||||||||||
Exercisable at December 31, 2014 | 112,500 | $ | 4.06 | 1.78 | $ | - | |||||||||||
No stock options were exercised during the six months ended December 31, 2014. | |||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the six month period ended December 31, 2013 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2013 | 263,500 | $ | 3.06 | 1.57 | $ | 122 | |||||||||||
Granted | 50,000 | 3.26 | 4.87 | - | |||||||||||||
Exercised | (121,500 | ) | (1.90 | ) | - | (181 | ) | ||||||||||
Forfeited or expired | (40,000 | ) | (4.72 | ) | - | - | |||||||||||
Outstanding at December 31, 2013 | 152,000 | $ | 3.61 | 2.67 | $ | 45 | |||||||||||
Exercisable at December 31, 2013 | 125,750 | $ | 3.72 | 2.2 | $ | 38 | |||||||||||
The fair value of the 121,500 shares of common stock acquired upon exercise of options was $181. Cash received from the options exercised during the six months ended December 31, 2013 was approximately $230. | |||||||||||||||||
A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2014 is presented below: | |||||||||||||||||
Weighted Average Grant-Date | |||||||||||||||||
Options | Fair Value | ||||||||||||||||
Non-vested at July 1, 2014 | 26,250 | $ | 1.69 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | (8,750 | ) | (1.69 | ) | |||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at December 31, 2014 | 17,500 | $ | 1.69 | ||||||||||||||
A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2013 is presented below: | |||||||||||||||||
Weighted Average Grant-Date | |||||||||||||||||
Options | Fair Value | ||||||||||||||||
Non-vested at July 1, 2013 | 20,375 | $ | 3.29 | ||||||||||||||
Granted | 50,000 | 1.65 | |||||||||||||||
Vested | (44,125 | ) | (2.33 | ) | |||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at December 31, 2013 | 26,250 | $ | 1.69 | ||||||||||||||
2007 Directors Equity Incentive Plan | |||||||||||||||||
The 2007 Directors Plan permits the grant of options covering up to an aggregate of 500,000 shares of Common Stock to its 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. | |||||||||||||||||
On October 21, 2014, the Company granted options to purchase 50,000 shares of its Common Stock to directors pursuant to the 2007 Directors Plan with an exercise price equal to the fair market value of Common Stock (as defined under the 2007 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) at the date of grant. The fair value of the options granted to purchase 50,000 shares of the Company’s Common Stock was approximately $82 based on the fair value of $3.81 per share determined by the Black Scholes option pricing model. As all of the stock options granted under the 2007 Directors Plan vest immediately at the date of grant, there were no unvested stock options granted under the 2007 Directors Plan as of December 31, 2014. | |||||||||||||||||
The Company granted options to purchase 60,000 shares and 40,000 shares of its Common Stock to directors pursuant to the 2007 Directors Plan during the first and second quarters of fiscal 2014. The exercise price was equal to the fair market value of Common Stock (as defined under the 2007 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) at the date of respective grants. The fair value of the options granted to purchase 60,000 shares and 40,000 shares of the Company's Common Stock were approximately $92 and $83, respectively, based on the fair value of $1.52 and $1.61 per share, respectively, determined by the Black Scholes option pricing model. | |||||||||||||||||
No stock options were exercised during the six months ended December 31, 2014. | |||||||||||||||||
Stock options to purchase 65,000 shares of its Common Stock were exercised during the six months ended December 31, 2013. The total proceeds received were $112. The Company recognized stock-based compensation expenses of $175 in the six months ended December 31, 2014 under the 2007 Directors Plan. | |||||||||||||||||
A summary of option activities under the 2007 Directors Plan during the six months ended December 31, 2014 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2014 | 315,000 | $ | 3.62 | 2.63 | $ | 82 | |||||||||||
Granted | 50,000 | 3.81 | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | - | - | - | - | |||||||||||||
Outstanding at December 31, 2014 | 365,000 | $ | 3.64 | 2.49 | $ | 43 | |||||||||||
Exercisable at December 31, 2014 | 365,000 | $ | 3.64 | 2.49 | 43 | ||||||||||||
A summary of option activities under the 2007 Directors Plan during the six months ended December 31, 2013 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2013 | 340,000 | $ | 3.53 | 1.96 | $ | 80 | |||||||||||
Granted | 100,000 | 3.41 | 3.41 | - | |||||||||||||
Exercised | (65,000 | ) | 1.72 | - | - | ||||||||||||
Forfeited or expired | (60,000 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at December 31, 2013 | 315,000 | $ | 3.62 | 3.12 | $ | 82 | |||||||||||
Exercisable at December 31, 2013 | 315,000 | $ | 3.62 | 3.12 | $ | 82 |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
EARNINGS PER SHARE (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | The Company adopted ASC Topic 260, Earnings Per Share. Basic EPS 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. | ||||||||||||||||
Stock options to purchase 495,000 shares of Common Stock at exercise prices ranging from $2.07 to $4.35 per share were outstanding as of December 31, 2014 and were excluded in the computation of diluted EPS because they were anti-dilutive. | |||||||||||||||||
Stock options to purchase 467,000 shares of Common Stock at exercise prices ranging from $1.72 to $9.57 per share were outstanding as of December 31, 2013 and were excluded in the computation of diluted EPS because they were anti-dilutive. | |||||||||||||||||
The following table is a reconciliation of the weighted average shares used in the computation of basic and diluted EPS for the years presented herein: | |||||||||||||||||
Six Months Ended | Three Months Ended | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
(Loss) / income attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ | (41 | ) | $ | (342 | ) | $ | 97 | $ | (348 | ) | ||||||
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | 11 | (40 | ) | (3 | ) | (17 | ) | ||||||||||
Net (loss) / income attributable to Trio-Tech International common shareholders | $ | (30 | ) | $ | (382 | ) | $ | 94 | $ | (365 | ) | ||||||
Basic and diluted (loss) /earnings per share from continuing operations attributable to Trio-Tech International | $ | (0.01 | ) | (0.10 | ) | 0.03 | (0.10) | ||||||||||
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | - | (0.01 | ) | - | - | ||||||||||||
Basic and diluted (loss) / earnings per share from net (loss) / income attributable to Trio-Tech International | $ | (0.01 | ) | $ | (0.11 | ) | $ | 0.03 | $ | (0.10 | ) | ||||||
Weighted average number of common shares outstanding - basic | 3,513 | 3,508 | 3,513 | 3,508 | |||||||||||||
Dilutive effect of stock options | - | - | - | - | |||||||||||||
Number of shares used to compute earnings per share - diluted | 3,513 | 3,508 | 3,513 | 3,508 | |||||||||||||
6. |
ACCOUNTS_RECEIVABLE_AND_ALLOWA
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 6 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Notes to Financial Statements | |||||||
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Accounts receivable consists of customer obligations due under normal trade terms. Although management generally does not require collateral, letters of credit may be required from the customers in certain circumstances. Management periodically performs credit evaluations of the customers’ financial conditions. | ||||||
Senior management reviews accounts receivable on a monthly basis to determine if any receivables will potentially be uncollectible. Management includes any accounts receivable balances that are determined to be uncollectible in the allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to us, management believed the allowance for doubtful accounts as of December 31, 2014 and June 30, 2014 was adequate. | |||||||
The following table represents the changes in the allowance for doubtful accounts: | |||||||
Dec. 31, | |||||||
2014 | June 30, | ||||||
(Unaudited) | 2014 | ||||||
Beginning | $ | 438 | $ | 139 | |||
Additions charged to expenses | 56 | 303 | |||||
Recovered / write-off | - | (2 | ) | ||||
Currency translation effect | (17 | ) | (2 | ) | |||
Ending | $ | 477 | $ | 438 | |||
WARRANTY_ACCRUAL
WARRANTY ACCRUAL | 6 Months Ended | |||||||
Dec. 31, 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 warranty period for products manufactured by the Company is 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 adjusts the amounts as necessary. | ||||||||
Dec. 31, | ||||||||
2014 | June 30, | |||||||
(Unaudited) | 2014 | |||||||
Beginning | $ | 60 | $ | 61 | ||||
Additions charged to cost and expenses | 3 | 23 | ||||||
Recovered | (5 | ) | (25 | ) | ||||
Actual usage | (7 | ) | - | |||||
Currency translation effect | (2 | ) | 1 | |||||
Ending | $ | 49 | $ | 60 |
INCOME_TAX
INCOME TAX | 6 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
INCOME TAX (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of ASC Topic 740 Income Tax. The Company had an income tax expense of $132 and $86 for the three and six months ended December 31, 2014, respectively, as compared to the income tax benefit of $39 and $82, respectively, for the same periods in the last fiscal year. |
The Company accrues penalties and interest related to unrecognized tax benefits when necessary as a component of penalties and interest expenses, respectively. The Company had not accrued any penalties or interest expenses relating to unrecognized benefits at June 30, 2014 and December 31, 2014. | |
The major tax jurisdictions in which the Company files income tax returns are the United States, Singapore and Malaysia. The statute of limitations, in general, is open for years 2004 to 2014 for tax authorities in those jurisdictions to audit or examine income tax returns. The Company is under annual review by the government of Singapore. However, the Company is not currently under tax examination in any other jurisdiction. |
INVESTMENT_PROPERTIES
INVESTMENT PROPERTIES | 6 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Notes to Financial Statements | ||||||||||
INVESTMENT PROPERTIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | The following table presents the Company’s investment in properties in China as of December 31, 2014. The exchange rate is based on the exchange rate as of December 31, 2014 published by the Monetary Authority of Singapore. | |||||||||
Investment | Investment | Investment Amount | ||||||||
Date | Amount | |||||||||
(RMB) | (U.S. Dollars) | |||||||||
Purchase of rental property – Property I – MaoYe | 4-Jan-08 | 5,554 | 894 | |||||||
Purchase of rental property – Property II – JiangHuai | 6-Jan-10 | 3,600 | 580 | |||||||
Purchase of rental property – Property III - Fu Li | 8-Apr-10 | 4,025 | 648 | |||||||
Currency translation | - | 3 | ||||||||
Gross investment in rental property | 13,179 | 2,125 | ||||||||
Accumulated depreciation on rental property | (3,287 | ) | (530 | ) | ||||||
Net investment in property – China | 9,892 | 1,595 | ||||||||
The following table presents the Company’s investment in properties in China as of June 30, 2014. | ||||||||||
Investment | Investment | Investment Amount | ||||||||
Date | Amount | |||||||||
(RMB) | (U.S. Dollars) | |||||||||
Purchase of rental property – Property I – MaoYe | 4-Jan-08 | 5,554 | 904 | |||||||
Purchase of rental property – Property II – JiangHuai | 6-Jan-10 | 3,600 | 586 | |||||||
Purchase of rental property – Property III - Fu Li | 8-Apr-10 | 4,025 | 655 | |||||||
Currency translation | - | (23 | ) | |||||||
Gross investment in rental property | 13,179 | 2,122 | ||||||||
Accumulated depreciation on rental property | (2,961 | ) | (476 | ) | ||||||
Net investment in property – China | 10,218 | 1,646 | ||||||||
The following table presents the Company’s investment in properties in Malaysia as of December 31, 2014. The exchange rate is based on the exchange rate as of December 31, 2014 published by the Monetary Authority of Singapore. | ||||||||||
(RM) | (U.S. Dollars) | |||||||||
Purchase of rental property – Penang Property I | 31-Dec-12 | 681 | 196 | |||||||
Gross investment in rental property | 681 | 196 | ||||||||
Accumulated depreciation on rental property | (305 | ) | (88 | ) | ||||||
Net investment in property – Malaysia | 376 | 108 | ||||||||
The following table presents the Company’s investment in properties in Malaysia as of June 30, 2014. | ||||||||||
(RM) | (U.S. Dollars) | |||||||||
Purchase of rental property – Penang Property I | 31-Dec-12 | 681 | 212 | |||||||
Gross investment in rental property | 681 | 212 | ||||||||
Accumulated depreciation on rental property | (300 | ) | (93 | ) | ||||||
Net investment in property – Malaysia | 381 | 119 | ||||||||
Rental Property I - MaoYe | ||||||||||
In fiscal 2008, Trio-Tech (Chongqing) Co. Ltd. (“TTCQ”) purchased an office in Chongqing, China from MaoYe Property Ltd. (“MaoYe”), for a total cash purchase price of RMB 5,554, or approximately $894 based on the exchange rate as of December 31, 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, 2014 for a further period of five years. The rental agreement provides for a rent increase of 8% every year after July 15, 2015. The renewed agreement expires on July 15, 2018. | ||||||||||
Property purchased from MaoYe generated a rental income of $30 and $59 for the three and six months ended December 31, 2014, respectively, and $29 and $57 for the same periods in the last fiscal year, respectively. | ||||||||||
Rental Property II - JiangHuai | ||||||||||
In fiscal year 2010, TTCQ purchased eight units of commercial property in Chongqing, China from Chongqing JiangHuai Real Estate Development Co. Ltd. (“JiangHuai”) for a total purchase price of RMB 3,600, or approximately $580 based on the exchange rate as of December 31, 2014 published by the Monetary Authority of Singapore. TTCQ rented all of these commercial units to a third party until the agreement expired in January 2012. TTCQ then rented three of the eight commercial units to another party during the fourth quarter of fiscal year 2013 under a rental agreement that expired on March 31, 2014. Currently all the units are vacant and TTCQ has been actively looking for suitable tenants for renting all the commercial units. TTCQ has yet to receive the title deed for these properties. TTCQ is in the legal process to obtain the title deed which is dependent on JiangHuai completing the entire project. | ||||||||||
Property purchased from JiangHuai did not generate any rental income during the three and six months ended December 31, 2014, while it generated a rental income of $4 and $9, respectively, for the same periods in the last fiscal year. | ||||||||||
Rental Properties III – Fu Li | ||||||||||
In fiscal 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 office space as its office premises. The total purchase price committed and paid was RMB 4,025, or approximately $648 based on the exchange rate as of December 31, 2014 published by the Monetary Authority of Singapore. The development was completed and the property was handed over during April 2013 and the title deed was received during the third quarter of fiscal 2014. The two commercial properties were leased to third parties under two separate rental agreements, one of which expired in April 2014 and the other of which expired in August 2014. For the unit for which the agreement expired in April 2014, a new tenant was identified and a new agreement has been executed, which expires on April 30, 2017. The new agreement carries an increase in rent of 20% in the first year, as compared to the expired rental agreement. Thereafter the rent increases by approximately 10% for the subsequent years until April 2017. For the unit for which the agreement expired in August 2014, a new tenant was identified and a new agreement has been executed, which expires on August 9, 2016. The new agreement carries an increase in rental of approximately 21% in the first year, as compared to the expired rental agreement. Thereafter the rent increases by approximately 6% for the subsequent years until August 2016. | ||||||||||
Property purchased from Fu Li generated a rental income of $14 and $28 for the three and six months ended December 31, 2014, respectively, while it generated a rental income of $12 and $24, respectively, for the same periods in the last fiscal year. | ||||||||||
Penang Property I | ||||||||||
In the fourth quarter of fiscal year 2013, Trio-Tech Malaysia Sdn. Bhd. (“TTM”) determined to sell the factory building in Penang. However, as the government authorities did not approve the transaction, the sale did not take place. Because the market value was increasing during the second quarter of fiscal year 2013, TTM decided to hold the factory building in Penang as an investment rental property. Hence TTM reclassified the factory building as investment property at the end of the second quarter of fiscal year 2013, which had a net book value of RM 376, or approximately $108. The depreciation expenses were approximately $1 and $2 for the three and six months ended December 31, 2014, respectively. There were no such depreciation expenses for the same periods in the last fiscal year, since the asset was classified as “Assets held for sale.” | ||||||||||
Summary | ||||||||||
Total rental income for all investment properties (Property I, II and III) in China was $44 and $87 for the three and six months ended December 31, 2014, respectively, and was $46 and $90, respectively, for the same periods in the last fiscal year. | ||||||||||
Depreciation expenses for all investment properties in China were $27 and $54 for the three and six months ended December 31, 2014, respectively, and were $26 and $54, respectively, for the same periods in the last fiscal year. |
LOAN_RECEIVABLE_FROM_PROPERTY_
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | 6 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Notes to Financial Statements | ||||||||||
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | The following table presents TTCQ’s loan receivable from property development projects in China as of December 31, 2014. The exchange rate is based on the date published by the Monetary Authority of Singapore as on December 31, 2014. | |||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Short-term loan receivables | Date | (RMB) | (U.S. Dollars) | |||||||
JiangHuai (Project - Yu Jin Jiang An) | 31-May-13 | 2,000 | 325 | |||||||
Less: allowance for impairment | 31-Dec-13 | (2,000 | ) | (325 | ) | |||||
Net loan receivable from property development projects | - | - | ||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Long-term loan receivables | Date | (RMB) | (U.S. Dollars) | |||||||
Jun Zhou Zhi Ye | 31-Oct-16 | 5,000 | 814 | |||||||
Less: transfer – down-payment for purchase of property | (5,000 | ) | (814 | ) | ||||||
Net loan receivable from property development projects | - | - | ||||||||
The following table presents TTCQ’s loan receivable from property development projects in China as of 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 doubtful receivables | 31-Dec-13 | (2,000 | ) | (325 | ) | |||||
Net loan receivable from property development projects | - | - | ||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Long-term loan receivables | Date | (RMB) | (U.S. Dollars) | |||||||
Jun Zhou Zhi Ye | 31-Oct-16 | 5,000 | 805 | |||||||
Net loan receivable from property development projects | 5,000 | 805 | ||||||||
On November 1, 2010, TTCQ entered into a Memorandum Agreement with JiaSheng Property Development Co. Ltd. (“JiaSheng”) to invest in their property development projects (Project B-48 Phase 2) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310-10-25 Receivables, amounting to RMB 5,000, or approximately $814, based on the exchange rate as at December 31, 2014 published by the Monetary Authority of Singapore. The amount was unsecured and repayable at the end of the term. The loan was renewed in November 2011 for a period of one year, which expired on October 31, 2012 and was again renewed in November 2012 and expired in November 2013. On November 1, 2013 the loan was transferred by JiaSheng to and is now payable by Chong Qing Jun Zhou Zhi Ye Co. Ltd. (“Jun Zhou Zhi Ye”), and the transferred agreement expires on October 31, 2016. Hence the loan receivable was reclassified as a long-term receivable. The book value of the loan receivable approximates its fair value. TTCQ recorded other income of RMB 104, or approximately $16, and RMB 417, or approximately $68, from Jun Zhou Zhi Ye for the three and six months ended December 31, 2014, respectively. The loan receivable was transferred to down-payment for purchase of property that is being developed in the Singapore Themed Resort Project. | ||||||||||
On November 1, 2010, TTCQ entered into another Memorandum Agreement with JiangHuai Property Development Co. Ltd. (“JiangHuai”) to invest in their property development projects (Project - Yu Jin Jiang An) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310-10-25 Receivables, amounting to RMB 2,000, or approximately $325. The loan was renewed, but expired on May 31, 2014. TTCQ is in the legal process of recovering the outstanding amount of $325. TTCQ did not generate other income from JiangHuai for the three and six months ended December 31, 2014, or for the same periods in the last fiscal year. An impairment of $325 was provided for during the second quarter of fiscal 2014, based on TTI’s financial policy. |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Notes to Financial Statements | ||||||||||||||||||||||
BUSINESS SEGMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | In fiscal 2013, the Company operated in five segments: the testing service industry (which performs structural and electronic tests of semiconductor devices), the designing and manufacturing of equipment (which equipment tests the structural integrity of integrated circuits and other products), distribution of various products from other manufacturers in Singapore and Southeast Asia, the real estate segment in China and the fabrication services segment in Batam, Indonesia. In the fourth quarter of fiscal 2013, the Company discontinued operations in the fabrication segment. Hence, in fiscal 2014 and 2015, the Company operated in four segments. | |||||||||||||||||||||
The real estate segment recorded other income of $16 and $68, respectively, for the three and six months ended December 31, 2014 as compared to $51 and $102, respectively, for the same periods in the last fiscal year. Due to the short-term nature of the investments, the investments were classified as loan receivables based on ASC Topic 310-10-25 Receivables. Thus the investment income was classified under other income, which is not part of the below table. | ||||||||||||||||||||||
The revenue allocated to individual countries was based on where the customers were located. The allocation of the cost of equipment, the current year investment in new equipment and depreciation expense have been made on the basis of the primary purpose for which the equipment was acquired. | ||||||||||||||||||||||
All inter-segment revenue was from the manufacturing segment to the testing and distribution segments. Total inter-segment revenue was $97 and $142 for the three and six months ended December 31, 2014, respectively, as compared to $48 and $196, respectively, for the same periods in the last fiscal year. Corporate assets mainly consisted of cash and prepaid expenses. Corporate expenses mainly consisted of stock option expenses, salaries, insurance, professional expenses and directors' fees. Corporate expenses are allocated to the four segments. The following segment information table includes segment operating (loss) / income after including the Corporate expenses allocated to the segments, which gets eliminated in the consolidation. | ||||||||||||||||||||||
The following segment information is un-audited for the six months ended December 31: | ||||||||||||||||||||||
Business Segment Information: | ||||||||||||||||||||||
Six months | Operating | Depr. | ||||||||||||||||||||
Ended | Net | (Loss) | Total | and | Capital | |||||||||||||||||
Dec. 31, | Revenue | Income | Assets | Amort. | Expenditures | |||||||||||||||||
Manufacturing | 2014 | $ | 6,395 | $ | (735 | ) | $ | 13,460 | $ | 70 | $ | 23 | ||||||||||
2013 | $ | 8,569 | $ | (328 | ) | 10,872 | $ | 77 | $ | 221 | ||||||||||||
Testing Services | 2014 | 9,691 | 1,274 | 14,896 | 1,065 | 870 | ||||||||||||||||
2013 | 8,645 | 391 | 19,331 | 1,067 | 1,500 | |||||||||||||||||
Distribution | 2014 | 817 | - | 678 | - | 6 | ||||||||||||||||
2013 | 1,532 | 199 | 418 | - | - | |||||||||||||||||
Real Estate | 2014 | 87 | (91 | ) | 3,686 | 54 | - | |||||||||||||||
2013 | 90 | (45 | ) | 3,893 | 54 | - | ||||||||||||||||
Fabrication * | 2014 | - | - | 33 | - | - | ||||||||||||||||
Services | 2013 | - | - | 106 | - | - | ||||||||||||||||
Corporate & | 2014 | - | (134 | ) | 117 | - | - | |||||||||||||||
Unallocated | 2013 | - | (336 | ) | 76 | - | - | |||||||||||||||
Total Company | 2014 | $ | 16,990 | $ | 314 | $ | 32,870 | $ | 1,189 | $ | 899 | |||||||||||
2013 | $ | 18,836 | $ | (119 | ) | $ | 34,696 | $ | 1,198 | $ | 1,721 | |||||||||||
The following segment information is un-audited for the three months ended December 31: | ||||||||||||||||||||||
Business Segment Information: | ||||||||||||||||||||||
Three months | Operating | Depr. | ||||||||||||||||||||
Ended | Net | (Loss) | Total | and | Capital | |||||||||||||||||
Dec. 31, | Revenue | Income | Assets | Amort. | Expenditures | |||||||||||||||||
Manufacturing | 2014 | $ | 3,348 | $ | (117 | ) | $ | 13,460 | $ | 43 | $ | 6 | ||||||||||
2013 | $ | 4,368 | $ | (201 | ) | $ | 10,872 | $ | 38 | $ | 91 | |||||||||||
Testing Services | 2014 | 5,073 | 687 | 14,896 | 496 | 426 | ||||||||||||||||
2013 | 4,597 | 289 | 19,331 | 531 | 1,146 | |||||||||||||||||
Distribution | 2014 | 432 | 36 | 678 | - | - | ||||||||||||||||
2013 | 328 | 7 | 418 | - | - | |||||||||||||||||
Real Estate | 2014 | 44 | (44 | ) | 3,686 | 27 | - | |||||||||||||||
2013 | 46 | (22 | ) | 3,893 | 27 | - | ||||||||||||||||
Fabrication * | 2014 | - | - | 33 | - | - | ||||||||||||||||
Services | 2013 | - | - | 106 | - | - | ||||||||||||||||
Corporate & | 2014 | - | (126 | ) | 117 | - | - | |||||||||||||||
Unallocated | 2013 | - | (179 | ) | 76 | - | - | |||||||||||||||
Total Company | 2014 | $ | 8,897 | $ | 437 | $ | 32,870 | $ | 566 | $ | 432 | |||||||||||
2013 | $ | 9,339 | $ | (106 | ) | $ | 34,696 | $ | 596 | $ | 1,237 | |||||||||||
* Fabrication services is a discontinued operation (Note 16). | ||||||||||||||||||||||
NONCONTROLLING_INTEREST
NON-CONTROLLING INTEREST | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Notes to Financial Statements | ||||||||
NON-CONTROLLING INTEREST (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | In accordance with the provisions of ASC Topic 810 Consolidation, the Company has classified the non-controlling interest as a component of stockholders’ equity in the accompanying condensed consolidated balance sheets. Additionally, the Company has presented the net income attributable to the Company and the non-controlling ownership interests separately in the accompanying condensed consolidated financial statements. | |||||||
Non-controlling interest represents the minority stockholders’ share of 45% of the equity of Trio-Tech Malaysia Sdn. Bhd., 45% interest in SHI International Pte. Ltd., and 24% interest in Prestal Enterprise Sdn. Bhd., which are subsidiaries of the Company. | ||||||||
The table below reflects a reconciliation of the equity attributable to non-controlling interest: | ||||||||
Dec. 31, 2014 | 30-Jun-14 | |||||||
Non-controlling interest | (Unaudited) | |||||||
Beginning balance | $ | 1,732 | $ | 1,971 | ||||
Net income | 210 | 144 | ||||||
Dividend declared by a subsidiary | - | (313 | ) | |||||
Translation adjustment | (62 | ) | (7 | ) | ||||
Ending balance | $ | 1,880 | $ | 1,732 |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | 6 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
FAIR VALUE MEASUREMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | |
In accordance with the ASC Topic 825, the following presents assets and liabilities measured and carried at fair value and classified by level of the following fair value measurement hierarchy: | |
(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); | |
(b) inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and | |
(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). | |
There were no transfers between Levels 1 and 2 during the year. | |
Term deposits (Level 1) – the carrying amount approximates fair value because of the short maturity of these instruments. | |
Loans receivables from property development projects (Level 3) – the carrying amount approximates fair value because of the short-term nature. | |
Restricted term deposits (Level 1) – the carrying amount approximates fair value because of the short maturity of these instruments. | |
Lines of credit (Level 3) – the carrying value of the lines of credit approximates fair value due to the short-term nature of the obligations. | |
Bank loans payable (Level 3) – the carrying value of the Company’s bank loan payables approximates its fair value as the interest rates associated with long-term debt is adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. |
BANK_LOANS_PAYABLE
BANK LOANS PAYABLE | 6 Months Ended | ||||||||
Dec. 31, 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: | ||||||||
Dec. 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Note payable denominated in Malaysian ringgit to a commercial bank for infrastructure investment, maturing in August 2024, bearing interest at the bank’s prime rate (4.6% - 5.1% at December 31, 2014) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with the net book value of Malaysian ringgit 12,016, or approximately $3,438. | $ | 2,476 | $ | 2,786 | |||||
Note payable denominated in U.S. dollars to a financial institution for working capital plans in Singapore and its subsidiaries, maturing in December 2014, bearing interest at the bank’s prime rate plus 1.50% (5.1% at December 31, 2014) per annum, with monthly payments of principal plus interest through December 2014. This note payable is secured by plant and equipment with the net book value of Singapore dollars 585, or approximately $443. | - | 260 | |||||||
Current portion | (178 | ) | (448 | ) | |||||
Long term portion of bank loans payable | $ | 2,298 | $ | 2,598 | |||||
Future minimum payments (excluding interest) as at December 31, 2014 were as follows: | |||||||||
2015 | $ | 178 | |||||||
2016 | 187 | ||||||||
2017 | 197 | ||||||||
2018 | 208 | ||||||||
2019 | 218 | ||||||||
Thereafter | 1,488 | ||||||||
Total obligations and commitments | $ | 2,476 | |||||||
Future minimum payments (excluding interest) as at 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 | |||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
COMMITMENTS AND CONTINGENCIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Trio-Tech (Malaysia) Sdn. Bhd. has expansion plans to meet the growing demands of a major customer in Malaysia, as the existing facility is inadequate to meet the demands of that customer. The Company has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RM 1,813, or approximately $519 based on the exchange rate as on December 31, 2014 published by the Monetary Authority of Singapore, in the Malaysia operations. |
Trio-Tech (Tianjin) Co. Ltd. in China has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RMB 307, or approximately $50 based on the exchange rate as on December 31, 2014 published by the Monetary Authority of Singapore. | |
Trio-Tech International Pte. Ltd. in Singapore has capital commitments for the purchase of equipment and other related infrastructure costs amounting to SGD 59, or approximately $45 based on the exchange rate as on December 31, 2014 published by the Monetary Authority of Singapore. |
DISCONTINUED_OPERATION_AND_COR
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | The Company’s Indonesia operation and the Indonesia operation’s immediate holding company, which comprise the fabrication services segment, suffered continued operating losses in the past four fiscal years, and the cash flow was minimal for the past four years. The Company established a restructuring plan to close the fabrication services operation, and in accordance with ASC Topic 205-20, Presentation of Financial Statement Discontinued Operations (“ASC Topic 250-20”), the Company presented the operation results from fabrication services as a discontinued operation, as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component. In accordance with the restructuring plan, the Company’s Indonesia operation is negotiating with its suppliers to settle the outstanding balance of accounts payable of $83 and has no collection for accounts receivable. The Company’s fabrication operation in Indonesia is in the process of winding down. | ||||||||||||||||
In January 2010, the Company established a restructuring plan to close the Testing operation in Shanghai, China. Based on the restructuring plan and in accordance with ASC Topic 205-20, the Company presented the operation results from Shanghai as a discontinued operation, as the Company believed that no continued cash flow would be generated by the discontinued component (Shanghai subsidiary) and that the Company would have no significant continuing involvement in the operations of the discontinued component. The Shanghai operation has an outstanding balance of accounts payable of $38 and is collecting the accounts receivable of $2. | |||||||||||||||||
The discontinued operations in Shanghai and in Indonesia incurred general and administrative expenses of $18, for both the three and six months ended December 31, 2014, and $3 and $7, respectively, for the same periods in the last fiscal year. The Company anticipates that it may incur additional costs and expenses at the time of winding down the business of the subsidiaries through which the facilities operated. | |||||||||||||||||
Income / (loss) from discontinued operations was as follows: | |||||||||||||||||
Six Months Ended | Three Months Ended | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||||
Revenue | $ | - | $ | - | $ | - | $ | - | |||||||||
Cost of sales | - | 3 | - | - | |||||||||||||
Gross loss | - | (3 | ) | - | - | ||||||||||||
Operating expenses: | |||||||||||||||||
General and administrative | 18 | 7 | 18 | 3 | |||||||||||||
Total | 18 | 7 | 18 | 3 | |||||||||||||
Loss from discontinued operations | -18 | (10 | ) | (18 | ) | -3 | |||||||||||
Other income / (expenses) | 38 | (62 | ) | 12 | -27 | ||||||||||||
Income/ (loss) from discontinued operations | $ | 0 | $ | (2 | ) | $ | (6 | ) | $ | -30 | |||||||
The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of the discontinued operation was immaterial. |
INVESTMENTS
INVESTMENTS | 6 Months Ended | |
Dec. 31, 2014 | ||
Notes to Financial Statements | ||
INVESTMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | During the second quarter of fiscal year 2011, the Company entered into a joint-venture agreement with JiaSheng to develop real estate projects in China. The Company invested RMB 10,000, or approximately $1,606 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore, for a 10% interest in the newly formed joint venture, which was incorporated as a limited liability company, Chong Qing Jun Zhou Zhi Ye Co. Ltd. (the “joint venture”), in China. The agreement stipulated that the Company would nominate two of the five members of the Board of Directors of the joint venture and had the ability to assign two members of management to the joint venture. The agreement also stipulated that the Company would receive a fee of RMB 10,000, or approximately $1,606 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore, for the services rendered in connection with obtaining priority to bid in certain real estate projects from the local government. Upon signing of the agreement, JiaSheng paid the Company RMB 5,000 in cash, or approximately $803 based on the exchange rate published by the Monetary Authority of Singapore as of March 31, 2014. The remaining RMB 5,000, which was not recorded as a receivable as the Company considered the collectability uncertain, would be paid over 72 months commencing in 36 months from the date of the agreement when the joint venture secured a property development project stated inside the joint venture agreement. The Company considered the RMB 5,000, or approximately $803 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore, received in cash from JiaSheng, the controlling venturer in the joint venture, as a partial return of the Company’s initial investment of RMB 10,000, or approximately $1,606 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore. Therefore, the RMB 5,000 received in cash was offset against the initial investment of RMB 10,000, resulting in a net investment of RMB 5,000 as of March 31, 2014. The Company further reduced its investments by RMB 137, or approximately $22, towards the losses from operations incurred by the joint-venture, resulting in a net investment of RMB 4,863, or approximately $781 based on exchange rates published by the Monetary Authority of Singapore as of March 31, 2014. | |
“Investment” as shown in the balance sheet consists of the cost of an investment in a joint venture in which we have a 10% interest. During the second quarter of fiscal year 2014, TTCQ disposed of its 10% interest in the joint venture. The joint venture had to raise funds for the development of the project. As a joint-venture partner, TTCQ was required to stand guarantee for the funds to be borrowed; considering the amount of borrowing, the risk involved was higher than the investment made and hence TTCQ decided to dispose of the 10% interest in the joint venture investment. On October 2, 2013, TTCQ entered into a share transfer agreement with Zhu Shu. Based on the agreement the purchase price was to be paid by (1) RMB 10,000 worth of commercial property in Chongqing China, or approximately $1,634 based on exchange rates published by the Monetary Authority of Singapore as of October 2, 2013, by non-monetary consideration and (2) the remaining RMB 8,000, or approximately $1,307 based on exchange rates published by the Monetary Authority of Singapore as of October 2, 2013, by cash consideration. The consideration consists of (1) commercial units measuring 668 square meters to be delivered in June 2016 and (2) sixteen quarterly equal installments of RMB 500 per quarter commencing from January 2014. Based on ASC Topic 845 Non-monetary Consideration, the Company deferred the recognition of the gain on disposal of the 10% interest in joint venture investment until such time that the consideration is paid, so that the gain can be ascertained. The recorded value of the disposed investment amounting to $783, based on exchange rates published by the Monetary Authority of Singapore as of June 30, 2014, is classified as “other assets” under non-current assets, because it is considered a down payment for the purchase of the commercial property in Chongqing. The first installment amount of RMB 500 was due in January 2014 and was outstanding as at March 31, 2014. The second and third installment amounts of RMB 500 each were due in April 2014 and July 2014. During May 2014, TTCQ had received RMB 100. | ||
On October 14, 2014, TTCQ and Jun Zhou Zhi Ye entered into a memorandum of understanding. Based on the memorandum of understanding, both parties have agreed to register a sales and purchase agreement upon Jun Zhou Zhi Ye obtaining the license to sell the properties of the commercial property (the Singapore Themed Resort Project), located in Chongqing China. The proposed agreement is for the sale of shop lots with a total area of 1,484.55 square meters as consideration for all the outstanding amounts owed to TTCQ by Jun Zhou Zhi Ye, with the exception of RMB 2,000, or approximately $326, which will be paid in cash, as follows: | ||
a) | Long term loan receivable RMB 5,000, or approximately $814, as disclosed in Note 10, plus the unrecognized interest receivable on long term loan receivable of RMB 1,250; | |
b) | Commercial units measuring 668 square meters, as mentioned above; and | |
c) | RMB 5,900 for the part of the unrecognized cash consideration of RMB 8,000 relating to the disposal of the joint venture. | |
The shop lots are to be delivered to TTCQ upon completion of the construction of the shop lots in the Singapore Themed Resort Project, which is expected to be no later than December 31, 2016. |
LINES_OF_CREDIT
LINES OF CREDIT | 6 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||
LINES OF CREDIT (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Carrying value of the Company’s lines of credit approximates its fair value because the interest rates associated with the lines of credit are adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. | ||||||||||||||||||
The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of December 31, 2014, the Company had certain lines of credit that are collateralized by restricted deposits. | |||||||||||||||||||
Entity with | Type of | Interest | Expiration | Credit | Unused | ||||||||||||||
Facility | Facility | Rate | Date | Limitation | Credit | ||||||||||||||
Trio-Tech International Pte. Ltd., Singapore | Lines of Credit | Ranging from 1.88% to 8.06% | — | $ | 8,135 | $ | 5,618 | ||||||||||||
Trio-Tech (Malaysia) Sdn. Bhd | Lines of Credit | Ranging from 4.6% to 5.1% | — | $ | 429 | $ | 257 | ||||||||||||
The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of June 30, 2014, the Company had certain lines of credit that are collateralized by restricted deposits. | |||||||||||||||||||
Entity with | Type of | Interest | Expiration | Credit | Unused | ||||||||||||||
Facility | Facility | Rate | Date | Limitation | Credit | ||||||||||||||
Trio-Tech International Pte. Ltd., Singapore | Lines of Credit | Ranging from 1.77% to 6.04% | — | $ | 9,073 | $ | 5,306 | ||||||||||||
ACCRUED_EXPENSES
ACCRUED EXPENSES | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
ACCRUED EXPENSES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Accrued expenses consisted of the following: | ||||||||
December 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Payroll and related costs | $ | 1,104 | $ | 1,096 | |||||
Commissions | 65 | 47 | |||||||
Customer deposits | 75 | 79 | |||||||
Legal and audit | 185 | 177 | |||||||
Sales tax | 120 | 120 | |||||||
Utilities | 130 | 156 | |||||||
Warranty | 51 | 60 | |||||||
Accrued purchase of materials and fixed assets | 614 | 358 | |||||||
Provision for re-instatement of leasehold properties | 367 | 367 | |||||||
Other accrued expenses | 346 | 602 | |||||||
Currency translation effect | (65 | ) | (16 | ) | |||||
Total | $ | 2,992 | $ | 3,046 |
OTHER_ASSETS
OTHER ASSETS | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
OTHER ASSETS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Other assets consisted of the following: | ||||||||
Dec. 31, 2014 | 30-Jun-14 | ||||||||
(Unaudited) | |||||||||
Down payment for property, plant and equipment | $ | 1,847 | $ | 1,103 | |||||
Deposit for rental and utilities | 150 | 158 | |||||||
Others | - | 2 | |||||||
Ending balance | $ | 1,997 | $ | 1,263 |
OTHER_INCOME_EXPENSES
OTHER INCOME / (EXPENSES) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||
OTHER INCOME / (EXPENSES) (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Other income / (expenses) consisted of the following: | ||||||||||||||||
Six Months Ended | Three Months Ended | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||||
Investment income deemed interest income | $ | 68 | $ | 102 | $ | 16 | $ | 51 | |||||||||
Allowance for doubtful loan receivables | (68 | ) | (338 | ) | (16 | ) | (338 | ) | |||||||||
Interest income | 6 | 2 | 4 | 1 | |||||||||||||
Other rental income | 52 | 165 | 26 | 60 | |||||||||||||
Exchange gain / (loss) | (70 | ) | 32 | (59 | ) | (6 | ) | ||||||||||
Other miscellaneous (expense) / income | 66 | (4 | ) | 36 | 27 | ||||||||||||
Total | $ | 54 | $ | (41 | ) | $ | 7 | $ | (205 | ) | |||||||
Other income included investment income which was deemed to be interest income since the investment was deemed and classified as a loan receivables based on ASC Topic 310-10-25 Receivables amounted to $16 and $68 for the three and six months ending December 31, 2014, respectively, as compared to $51 and $102 for the same periods in the last fiscal year. Other income for both the three and six months ending December 31, 2014 included $16 and $68 allowance for doubtful loan and doubtful interest receivables, respectively, as compared to $338 for each of the same periods in the last fiscal year. | |||||||||||||||||
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 6 Months Ended | ||
Dec. 31, 2014 | |||
Organization And Basis Of Presentation Policies | |||
Basis of presentation | |||
Trio-Tech International (“the Company” or “TTI” hereafter) was incorporated in fiscal 1958 under the laws of the State of California. TTI provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia. In addition, TTI operates testing facilities in the United States. The Company also designs, develops, manufactures and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components. In fiscal 2015 TTI conducted business in the foregoing four segments: Manufacturing, Testing Services, Distribution and Real Estate. TTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand and China as follows: | |||
Ownership | Location | ||
Express Test Corporation (Dormant) | 100% | Van Nuys, California | |
Trio-Tech Reliability Services (Dormant) | 100% | Van Nuys, California | |
KTS Incorporated, dba Universal Systems (Dormant) | 100% | Van Nuys, California | |
European Electronic Test Centre (Dormant) | 100% | Dublin, Ireland | |
Trio-Tech International Pte. Ltd. | 100% | Singapore | |
Universal (Far East) Pte. Ltd. * | 100% | Singapore | |
Trio-Tech International (Thailand) Co. Ltd. * | 100% | Bangkok, Thailand | |
Trio-Tech (Bangkok) Co. Ltd. | 100% | Bangkok, Thailand | |
(49% owned by Trio-Tech International Pte. Ltd. and 51% owned by | |||
Trio-Tech International (Thailand) Co. Ltd.) | |||
Trio-Tech (Malaysia) Sdn. Bhd. | 55% | Penang and Selangor, Malaysia | |
(55% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Kuala Lumpur) Sdn. Bhd. | 55% | Selangor, Malaysia | |
(100% owned by Trio-Tech Malaysia Sdn. Bhd.) | |||
Prestal Enterprise Sdn. Bhd. | 76% | Selangor, Malaysia | |
(76% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Suzhou) Co. Ltd. * | 100% | Suzhou, China | |
Trio-Tech (Shanghai) Co. Ltd. * (Dormant) | 100% | Shanghai, China | |
Trio-Tech (Chongqing) Co. Ltd. * | 100% | Chongqing, China | |
SHI International Pte. Ltd. (Dormant) | 55% | Singapore | |
(55% owned by Trio-Tech International Pte. Ltd) | |||
PT SHI Indonesia (Dormant) | 55% | Batam, Indonesia | |
(100% owned by SHI International Pte. Ltd.) | |||
Trio-Tech (Tianjin) Co. Ltd. * | 100% | Tianjin, China | |
* 100% owned by Trio-Tech International Pte. Ltd. | |||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. All significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements are presented in U.S. dollars. The accompanying condensed consolidated financial statements do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. Operating results for the six months ended December 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report for the fiscal year ended June 30, 2014. | |||
New accounting pronouncements | The Financial Accounting Standards Board (“FASB”) amended ASU 2014-15 to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. | ||
Under GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. | |||
Currently, GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. | |||
ASU 2014-15 provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. | |||
The amendments in ASU 2014-15 are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. While early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued, the Company has not elected to early adopt. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |||
FASB has issued converged standards on revenue recognition. Specifically, the Board has issued FASB Accounting Standards Update No. 2014-09 (“ASU 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). ASU 2014-09 will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. ASU 2014-09 also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of 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 ASU 2014-09. | |||
For a public entity, the amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. | |||
The FASB has issued ASU No. 2014-08 (“ASU 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 ASU 2014-08 change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. | |||
Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. | |||
In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. | |||
The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. | |||
The amendments in the ASU 2014-08 are effective in the first quarter of 2015 for public organizations with calendar year ends. For most nonpublic organizations, it is effective for annual financial statements with fiscal years beginning on or after December 15, 2014. Early adoption is permitted. The adoption of this update did not have a significant effect on the Company’s consolidated financial position or results of operations. | |||
Other new pronouncements issued but not yet effective until December 31, 2014 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
ORGANIZATION_AND_BASIS_OF_PRES2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 6 Months Ended | ||
Dec. 31, 2014 | |||
Organization And Basis Of Presentation Tables | |||
Subsidiaries | Ownership | Location | |
Express Test Corporation (Dormant) | 100% | Van Nuys, California | |
Trio-Tech Reliability Services (Dormant) | 100% | Van Nuys, California | |
KTS Incorporated, dba Universal Systems (Dormant) | 100% | Van Nuys, California | |
European Electronic Test Centre (Dormant) | 100% | Dublin, Ireland | |
Trio-Tech International Pte. Ltd. | 100% | Singapore | |
Universal (Far East) Pte. Ltd. * | 100% | Singapore | |
Trio-Tech International (Thailand) Co. Ltd. * | 100% | Bangkok, Thailand | |
Trio-Tech (Bangkok) Co. Ltd. | 100% | Bangkok, Thailand | |
(49% owned by Trio-Tech International Pte. Ltd. and 51% owned by | |||
Trio-Tech International (Thailand) Co. Ltd.) | |||
Trio-Tech (Malaysia) Sdn. Bhd. | 55% | Penang and Selangor, Malaysia | |
(55% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Kuala Lumpur) Sdn. Bhd. | 55% | Selangor, Malaysia | |
(100% owned by Trio-Tech Malaysia Sdn. Bhd.) | |||
Prestal Enterprise Sdn. Bhd. | 76% | Selangor, Malaysia | |
(76% owned by Trio-Tech International Pte. Ltd.) | |||
Trio-Tech (Suzhou) Co. Ltd. * | 100% | Suzhou, China | |
Trio-Tech (Shanghai) Co. Ltd. * (Dormant) | 100% | Shanghai, China | |
Trio-Tech (Chongqing) Co. Ltd. * | 100% | Chongqing, China | |
SHI International Pte. Ltd. (Dormant) | 55% | Singapore | |
(55% owned by Trio-Tech International Pte. Ltd) | |||
PT SHI Indonesia (Dormant) | 55% | Batam, Indonesia | |
(100% owned by SHI International Pte. Ltd.) | |||
Trio-Tech (Tianjin) Co. Ltd. * | 100% | Tianjin, China | |
INVENTORIES_Tables
INVENTORIES (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories Tables | |||||||||
Inventories (In Thousands) | Dec. 31, | June 30, | |||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Raw materials | $ | 975 | $ | 1,165 | |||||
Work in progress | 861 | 583 | |||||||
Finished goods | 430 | 184 | |||||||
Less: provision for obsolete inventory | (740 | ) | (844 | ) | |||||
Currency translation effect | (76 | ) | 18 | ||||||
$ | 1,450 | $ | 1,106 | ||||||
Changes in provision for obsolete inventory | Dec. 31, | June 30, | |||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Beginning | $ | 844 | $ | 912 | |||||
Additions charged to expenses | 26 | - | |||||||
Usage - disposition | (99 | ) | (76 | ) | |||||
Currency translation effect | (31 | ) | 8 | ||||||
Ending | $ | 740 | $ | 844 |
STOCK_OPTIONS_Tables
STOCK OPTIONS (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair value weighted average assumptions | |||||||||||||||||
Six Months | Year Ended | ||||||||||||||||
Ended | 30-Jun-14 | ||||||||||||||||
December 31,2014 | |||||||||||||||||
Expected volatility | 71.44% to 104.94 | % | 70.01% to 104.94 | % | |||||||||||||
Risk-free interest rate | 0.30% to 0.78 | % | 0.30% to 0.78 | % | |||||||||||||
Expected life (years) | 2.5 | 2.50 to 3.25 | |||||||||||||||
Employee 2007 [Member] | |||||||||||||||||
Option activities | A summary of option activities under the 2007 Employee Plan during the six month period ended December 31, 2014 is presented as follows: | ||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2014 | 130,000 | $ | 3.93 | 2.57 | $ | 13 | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | - | - | - | - | |||||||||||||
Outstanding at December 31, 2014 | 130,000 | $ | 3.93 | 2.07 | $ | - | |||||||||||
Exercisable at December 31, 2014 | 112,500 | $ | 4.06 | 1.78 | $ | - | |||||||||||
No stock options were exercised during the six months ended December 31, 2014. | |||||||||||||||||
A summary of option activities under the 2007 Employee Plan during the six month period ended December 31, 2013 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2013 | 263,500 | $ | 3.06 | 1.57 | $ | 122 | |||||||||||
Granted | 50,000 | 3.26 | 4.87 | - | |||||||||||||
Exercised | (121,500 | ) | (1.90 | ) | - | (181 | ) | ||||||||||
Forfeited or expired | (40,000 | ) | (4.72 | ) | - | - | |||||||||||
Outstanding at December 31, 2013 | 152,000 | $ | 3.61 | 2.67 | $ | 45 | |||||||||||
Exercisable at December 31, 2013 | 125,750 | $ | 3.72 | 2.2 | $ | 38 | |||||||||||
Company's non-vested employee stock options | A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2014 is presented below: | ||||||||||||||||
Weighted Average Grant-Date | |||||||||||||||||
Options | Fair Value | ||||||||||||||||
Non-vested at July 1, 2014 | 26,250 | $ | 1.69 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | (8,750 | ) | (1.69 | ) | |||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at December 31, 2014 | 17,500 | $ | 1.69 | ||||||||||||||
A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2013 is presented below: | |||||||||||||||||
Weighted Average Grant-Date | |||||||||||||||||
Options | Fair Value | ||||||||||||||||
Non-vested at July 1, 2013 | 20,375 | $ | 3.29 | ||||||||||||||
Granted | 50,000 | 1.65 | |||||||||||||||
Vested | (44,125 | ) | (2.33 | ) | |||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at December 31, 2013 | 26,250 | $ | 1.69 | ||||||||||||||
DirectorsPlan [Member] | |||||||||||||||||
Option activities | A summary of option activities under the 2007 Directors Plan during the six months ended December 31, 2014 is presented as follows: | ||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2014 | 315,000 | $ | 3.62 | 2.63 | $ | 82 | |||||||||||
Granted | 50,000 | 3.81 | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | - | - | - | - | |||||||||||||
Outstanding at December 31, 2014 | 365,000 | $ | 3.64 | 2.49 | $ | 43 | |||||||||||
Exercisable at December 31, 2014 | 365,000 | $ | 3.64 | 2.49 | 43 | ||||||||||||
A summary of option activities under the 2007 Directors Plan during the six months ended December 31, 2013 is presented as follows: | |||||||||||||||||
Options | Weighted Average | Weighted Average Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Price | Term (Years) | Value | |||||||||||||||
Outstanding at July 1, 2013 | 340,000 | $ | 3.53 | 1.96 | $ | 80 | |||||||||||
Granted | 100,000 | 3.41 | 3.41 | - | |||||||||||||
Exercised | (65,000 | ) | 1.72 | - | - | ||||||||||||
Forfeited or expired | (60,000 | ) | (4.81 | ) | - | - | |||||||||||
Outstanding at December 31, 2013 | 315,000 | $ | 3.62 | 3.12 | $ | 82 | |||||||||||
Exercisable at December 31, 2013 | 315,000 | $ | 3.62 | 3.12 | $ | 82 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Earnings Per Share Tables | |||||||||||||||||
Reconciliation of the weighted average shares | Six Months Ended | Three Months Ended | |||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
(Loss) / income attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ | (41 | ) | $ | (342 | ) | $ | 97 | $ | (348 | ) | ||||||
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | 11 | (40 | ) | (3 | ) | (17 | ) | ||||||||||
Net (loss) / income attributable to Trio-Tech International common shareholders | $ | (30 | ) | $ | (382 | ) | $ | 94 | $ | (365 | ) | ||||||
Basic and diluted (loss) /earnings per share from continuing operations attributable to Trio-Tech International | $ | (0.01 | ) | (0.10 | ) | 0.03 | (0.10) | ||||||||||
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | - | (0.01 | ) | - | - | ||||||||||||
Basic and diluted (loss) / earnings per share from net (loss) / income attributable to Trio-Tech International | $ | (0.01 | ) | $ | (0.11 | ) | $ | 0.03 | $ | (0.10 | ) | ||||||
Weighted average number of common shares outstanding - basic | 3,513 | 3,508 | 3,513 | 3,508 | |||||||||||||
Dilutive effect of stock options | - | - | - | - | |||||||||||||
Number of shares used to compute earnings per share - diluted | 3,513 | 3,508 | 3,513 | 3,508 | |||||||||||||
ACCOUNTS_RECEIVABLE_AND_ALLOWA1
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 6 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accounts Receivable And Allowance For Doubtful Accounts Tables | |||||||
Changes in the allowance for doubtful accounts | |||||||
Dec. 31, | |||||||
2014 | June 30, | ||||||
(Unaudited) | 2014 | ||||||
Beginning | $ | 438 | $ | 139 | |||
Additions charged to expenses | 56 | 303 | |||||
Recovered / write-off | - | (2 | ) | ||||
Currency translation effect | (17 | ) | (2 | ) | |||
Ending | $ | 477 | $ | 438 | |||
WARRANTY_ACCRUAL_Tables
WARRANTY ACCRUAL (Tables) | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Warranty Accrual Tables | ||||||||
Warranty liability | ||||||||
Dec. 31, | ||||||||
2014 | June 30, | |||||||
(Unaudited) | 2014 | |||||||
Beginning | $ | 60 | $ | 61 | ||||
Additions charged to cost and expenses | 3 | 23 | ||||||
Recovered | (5 | ) | (25 | ) | ||||
Actual usage | (7 | ) | - | |||||
Currency translation effect | (2 | ) | 1 | |||||
Ending | $ | 49 | $ | 60 |
INVESTMENT_PROPERTIES_Tables
INVESTMENT PROPERTIES (Tables) | 6 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Investment Properties Tables | ||||||||||
Companys investment in the property based on the exchange rate | The following table presents the Company’s investment in properties in China as of December 31, 2014. The exchange rate is based on the exchange rate as of December 31, 2014 published by the Monetary Authority of Singapore. | |||||||||
Investment | Investment | Investment Amount | ||||||||
Date | Amount | |||||||||
(RMB) | (U.S. Dollars) | |||||||||
Purchase of rental property – Property I – MaoYe | 4-Jan-08 | 5,554 | 894 | |||||||
Purchase of rental property – Property II – JiangHuai | 6-Jan-10 | 3,600 | 580 | |||||||
Purchase of rental property – Property III - Fu Li | 8-Apr-10 | 4,025 | 648 | |||||||
Currency translation | - | 3 | ||||||||
Gross investment in rental property | 13,179 | 2,125 | ||||||||
Accumulated depreciation on rental property | (3,287 | ) | (530 | ) | ||||||
Net investment in property – China | 9,892 | 1,595 | ||||||||
The following table presents the Company’s investment in properties in China as of June 30, 2014. | ||||||||||
Investment | Investment | Investment Amount | ||||||||
Date | Amount | |||||||||
(RMB) | (U.S. Dollars) | |||||||||
Purchase of rental property – Property I – MaoYe | 4-Jan-08 | 5,554 | 904 | |||||||
Purchase of rental property – Property II – JiangHuai | 6-Jan-10 | 3,600 | 586 | |||||||
Purchase of rental property – Property III - Fu Li | 8-Apr-10 | 4,025 | 655 | |||||||
Currency translation | - | (23 | ) | |||||||
Gross investment in rental property | 13,179 | 2,122 | ||||||||
Accumulated depreciation on rental property | (2,961 | ) | (476 | ) | ||||||
Net investment in property – China | 10,218 | 1,646 | ||||||||
The following table presents the Company’s investment in properties in Malaysia as of December 31, 2014. The exchange rate is based on the exchange rate as of December 31, 2014 published by the Monetary Authority of Singapore. | ||||||||||
(RM) | (U.S. Dollars) | |||||||||
Purchase of rental property – Penang Property I | 31-Dec-12 | 681 | 196 | |||||||
Gross investment in rental property | 681 | 196 | ||||||||
Accumulated depreciation on rental property | (305 | ) | (88 | ) | ||||||
Net investment in property – Malaysia | 376 | 108 | ||||||||
The following table presents the Company’s investment in properties in Malaysia as of June 30, 2014. | ||||||||||
(RM) | (U.S. Dollars) | |||||||||
Purchase of rental property – Penang Property I | 31-Dec-12 | 681 | 212 | |||||||
Gross investment in rental property | 681 | 212 | ||||||||
Accumulated depreciation on rental property | (300 | ) | (93 | ) | ||||||
Net investment in property – Malaysia | 381 | 119 | ||||||||
LOAN_RECEIVABLE_FROM_PROPERTY_1
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Tables) | 6 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Loan Receivable From Property Development Projects Tables | ||||||||||
Companys loans receivable from property development projects | The following table presents TTCQ’s loan receivable from property development projects in China as of December 31, 2014. The exchange rate is based on the date published by the Monetary Authority of Singapore as on December 31, 2014. | |||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Short-term loan receivables | Date | (RMB) | (U.S. Dollars) | |||||||
JiangHuai (Project - Yu Jin Jiang An) | 31-May-13 | 2,000 | 325 | |||||||
Less: allowance for impairment | 31-Dec-13 | (2,000 | ) | (325 | ) | |||||
Net loan receivable from property development projects | - | - | ||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Long-term loan receivables | Date | (RMB) | (U.S. Dollars) | |||||||
Jun Zhou Zhi Ye | 31-Oct-16 | 5,000 | 814 | |||||||
Less: transfer – down-payment for purchase of property | (5,000 | ) | (814 | ) | ||||||
Net loan receivable from property development projects | - | - | ||||||||
The following table presents TTCQ’s loan receivable from property development projects in China as of 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 doubtful receivables | 31-Dec-13 | (2,000 | ) | (325 | ) | |||||
Net loan receivable from property development projects | - | - | ||||||||
Loan Expiry | Loan Amount | Loan Amount | ||||||||
Long-term loan receivables | Date | (RMB) | (U.S. Dollars) | |||||||
Jun Zhou Zhi Ye | 31-Oct-16 | 5,000 | 805 | |||||||
Net loan receivable from property development projects | 5,000 | 805 |
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 6 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Business Segments Tables | ||||||||||||||||||||||
BUSINESS SEGMENTS | The following segment information is un-audited for the six months ended December 31: | |||||||||||||||||||||
Business Segment Information: | ||||||||||||||||||||||
Six months | Operating | Depr. | ||||||||||||||||||||
Ended | Net | (Loss) | Total | and | Capital | |||||||||||||||||
Dec. 31, | Revenue | Income | Assets | Amort. | Expenditures | |||||||||||||||||
Manufacturing | 2014 | $ | 6,395 | $ | (735 | ) | $ | 13,460 | $ | 70 | $ | 23 | ||||||||||
2013 | $ | 8,569 | $ | (328 | ) | $ | 10,872 | $ | 77 | $ | 221 | |||||||||||
Testing Services | 2014 | 9,691 | 1,274 | 14,896 | 1,065 | 870 | ||||||||||||||||
2013 | 8,645 | 391 | 19,331 | 1,067 | 1,500 | |||||||||||||||||
Distribution | 2014 | 817 | - | 678 | - | 6 | ||||||||||||||||
2013 | 1,532 | 199 | 418 | - | - | |||||||||||||||||
Real Estate | 2014 | 87 | (91 | ) | 3,686 | 54 | - | |||||||||||||||
2013 | 90 | (45 | ) | 3,893 | 54 | - | ||||||||||||||||
Fabrication * | 2014 | - | - | 33 | - | - | ||||||||||||||||
Services | 2013 | - | - | 106 | - | - | ||||||||||||||||
Corporate & | 2014 | - | (134 | ) | 117 | - | - | |||||||||||||||
Unallocated | 2013 | - | (336 | ) | 76 | - | - | |||||||||||||||
Total Company | 2014 | $ | 16,990 | $ | 314 | $ | 32,870 | $ | 1,189 | $ | 899 | |||||||||||
2013 | $ | 18,836 | $ | (119 | ) | $ | 34,696 | $ | 1,198 | $ | 1,721 | |||||||||||
The following segment information is un-audited for the three months ended December 31: | ||||||||||||||||||||||
Business Segment Information: | ||||||||||||||||||||||
Three months | Operating | Depr. | ||||||||||||||||||||
Ended | Net | (Loss) | Total | and | Capital | |||||||||||||||||
Dec. 31, | Revenue | Income | Assets | Amort. | Expenditures | |||||||||||||||||
Manufacturing | 2014 | $ | 3,348 | $ | (117 | ) | $ | 13,460 | $ | 43 | $ | 6 | ||||||||||
2013 | $ | 4,368 | $ | (201 | ) | $ | 10,872 | $ | 38 | $ | 91 | |||||||||||
Testing Services | 2014 | 5,073 | 687 | 14,896 | 496 | 426 | ||||||||||||||||
2013 | 4,597 | 289 | 19,331 | 531 | 1,146 | |||||||||||||||||
Distribution | 2014 | 432 | 36 | 678 | - | - | ||||||||||||||||
2013 | 328 | 7 | 418 | - | - | |||||||||||||||||
Real Estate | 2014 | 44 | (44 | ) | 3,686 | 27 | - | |||||||||||||||
2013 | 46 | (22 | ) | 3,893 | 27 | - | ||||||||||||||||
Fabrication * | 2014 | - | - | 33 | - | - | ||||||||||||||||
Services | 2013 | - | - | 106 | - | - | ||||||||||||||||
Corporate & | 2014 | - | (126 | ) | 117 | - | - | |||||||||||||||
Unallocated | 2013 | - | (179 | ) | 76 | - | - | |||||||||||||||
Total Company | 2014 | $ | 8,897 | $ | 437 | $ | 32,870 | $ | 566 | $ | 432 | |||||||||||
2013 | $ | 9,339 | $ | (106 | ) | $ | 34,696 | $ | 596 | $ | 1,237 | |||||||||||
* Fabrication services is a discontinued operation (Note 16). | ||||||||||||||||||||||
BANK_LOANS_PAYABLE_Tables
BANK LOANS PAYABLE (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Bank Loans Payable Tables | |||||||||
Bank loans payable | Bank loans payable consisted of the following: | ||||||||
Dec. 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Note payable denominated in Malaysian ringgit to a commercial bank for infrastructure investment, maturing in August 2024, bearing interest at the bank’s prime rate (4.6% to 5.1% at December 31, 2014) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with the net book value of Malaysian ringgit 12,016, or approximately $3,438. | $ | 2,476 | $ | 2,786 | |||||
Note payable denominated in U.S. dollars to a financial institution for working capital plans in Singapore and its subsidiaries, maturing in December 2014, bearing interest at the bank’s prime rate plus 1.50% (5.1% at December 31, 2014) per annum, with monthly payments of principal plus interest through December 2014. This note payable is secured by plant and equipment with the net book value of Singapore dollars 585, or approximately $443. | - | 260 | |||||||
Current portion | (178 | ) | (448 | ) | |||||
Long term portion of bank loans payable | $ | 2,298 | $ | 2,598 | |||||
Future minimum payments | Future minimum payments (excluding interest) as at December 31, 2014 were as follows: | ||||||||
2015 | $ | 178 | |||||||
2016 | 187 | ||||||||
2017 | 197 | ||||||||
2018 | 208 | ||||||||
2019 | 218 | ||||||||
Thereafter | 1,488 | ||||||||
Total obligations and commitments | $ | 2,476 | |||||||
Future minimum payments (excluding interest) as at 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 |
DISCONTINUED_OPERATION_AND_COR1
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Discontinued Operation And Corresponding Restructuring Plan Tables | |||||||||||||||||
Loss from discontinued operations | |||||||||||||||||
Income / (loss) from discontinued operations was as follows: | |||||||||||||||||
Six Months Ended | Three Months Ended | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||||
Revenue | $ | - | $ | - | $ | - | $ | - | |||||||||
Cost of sales | - | 3 | - | - | |||||||||||||
Gross loss | - | (3 | ) | - | - | ||||||||||||
Operating expenses: | |||||||||||||||||
General and administrative | 18 | 7 | 18 | 3 | |||||||||||||
Total | 18 | 7 | 18 | 3 | |||||||||||||
Loss from discontinued operations | -18 | (10 | ) | (18 | ) | -3 | |||||||||||
Other income / (expenses) | 38 | (62 | ) | 12 | -27 | ||||||||||||
Income/ (loss) from discontinued operations | $ | 0 | $ | (2 | ) | $ | (6 | ) | $ | (30 | ) | ||||||
The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of the discontinued operation was immaterial. |
LINES_OF_CREDIT_Tables
LINES OF CREDIT (Tables) | 6 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Lines Of Credit Tables | |||||||||||||||||||
Lines of credit | |||||||||||||||||||
The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of December 31, 2014, the Company had certain lines of credit that are collateralized by restricted deposits. | |||||||||||||||||||
Entity with | Type of | Interest | Expiration | Credit | Unused | ||||||||||||||
Facility | Facility | Rate | Date | Limitation | Credit | ||||||||||||||
Trio-Tech International Pte. Ltd., Singapore | Lines of Credit | Ranging from 1.88% to 8.06% | — | $ | 8,135 | $ | 5,618 | ||||||||||||
Trio-Tech (Malaysia) Sdn. Bhd | Lines of Credit | Ranging from 4.6% to 5.1% | — | $ | 429 | $ | 257 | ||||||||||||
The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of June 30, 2014, the Company had certain lines of credit that are collateralized by restricted deposits. | |||||||||||||||||||
Entity with | Type of | Interest | Expiration | Credit | Unused | ||||||||||||||
Facility | Facility | Rate | Date | Limitation | Credit | ||||||||||||||
Trio-Tech International Pte. Ltd., Singapore | Lines of Credit | Ranging from 1.77% to 6.04% | — | $ | 9,073 | $ | 5,306 | ||||||||||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued expenses | Accrued expenses consisted of the following: | ||||||||
December 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | |||||||||
Payroll and related costs | $ | 1,104 | $ | 1,096 | |||||
Commissions | 65 | 47 | |||||||
Customer deposits | 75 | 79 | |||||||
Legal and audit | 185 | 177 | |||||||
Sales tax | 120 | 120 | |||||||
Utilities | 130 | 156 | |||||||
Warranty | 51 | 60 | |||||||
Accrued purchase of materials and fixed assets | 614 | 358 | |||||||
Provision for re-instatement of leasehold properties | 367 | 367 | |||||||
Other accrued expenses | 346 | 602 | |||||||
Currency translation effect | (65 | ) | (16 | ) | |||||
Total | $ | 2,992 | $ | 3,046 |
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Other assets | Other assets consisted of the following: | ||||||||
Dec. 31, 2014 | 30-Jun-14 | ||||||||
(Unaudited) | |||||||||
Down payment for property, plant and equipment | $ | 1,847 | $ | 1,103 | |||||
Deposit for rental and utilities | 150 | 158 | |||||||
Others | - | 2 | |||||||
Ending balance | $ | 1,997 | $ | 1,263 | |||||
OTHER_INCOME_EXPENSES_Tables
OTHER INCOME / (EXPENSES) (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||
Other income | |||||||||||||||||
Six Months Ended | Three Months Ended | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||||
Investment income deemed interest income | $ | 68 | $ | 102 | $ | 16 | $ | 51 | |||||||||
Allowance for doubtful loan receivables | (68 | ) | (338 | ) | (16 | ) | (338 | ) | |||||||||
Interest income | 6 | 2 | 4 | 1 | |||||||||||||
Other rental income | 52 | 165 | 26 | 60 | |||||||||||||
Exchange gain / (loss) | (70 | ) | 32 | (59 | ) | (6 | ) | ||||||||||
Other miscellaneous (expense) / income | 66 | (4 | ) | 36 | 27 | ||||||||||||
Total | $ | 54 | $ | (41 | ) | $ | 7 | $ | (205 | ) | |||||||
1_ORGANIZATION_AND_BASIS_OF_PR
1. ORGANIZATION AND BASIS OF PRESENTATION (Details) | Dec. 31, 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. | |
Ownership | 100.00% |
SHI International Pte. Ltd. (55% owned by Trio-Tech International Pte. Ltd.) | |
Ownership | 55.00% |
PT SHI Indonesia (100% owned by SHI International Pte. Ltd) | |
Ownership | 55.00% |
Trio-Tech (Tianjin) Co. Ltd. | |
Ownership | 100.00% |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Notes to Financial Statements | |||
Raw materials | $975 | $1,165 | |
Work in progress | 861 | 583 | |
Finished goods | 430 | 184 | |
Less: provision for obsolete inventory | -740 | -844 | -912 |
Currency translation effect | -76 | 18 | |
Inventory net | $1,450 | $1,106 |
INVENTORIES_Details_1
INVENTORIES (Details 1) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 |
Notes to Financial Statements | ||
Beginning | $844 | $912 |
Additions charged to expenses | 26 | |
Usage - disposition | -99 | -76 |
Currency translation effect | -31 | 8 |
Ending | $740 | $844 |
STOCK_OPTIONS_Details
STOCK OPTIONS (Details) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Jun. 30, 2014 | |
Expected life (years) | 2 years 6 months | |
Minimum [Member] | ||
Expected volatility | 71.44% | 70.01% |
Risk-free interest rate | 0.30% | 0.30% |
Expected life (years) | 2 years 6 months | |
Maximum [Member] | ||
Expected volatility | 104.94% | 104.94% |
Risk-free interest rate | 0.78% | 0.78% |
Expected life (years) | 3 years 3 months |
STOCK_OPTIONS_Details_1
STOCK OPTIONS (Details 1) (USD $) | 6 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Notes to Financial Statements | ||
Outstanding at beginning of period, Options | 130,000 | 263,500 |
Granted, Options | 50,000 | |
Exercised, Options | -121,500 | |
Forfeited or expired, Options | -40,000 | |
Outstanding at end of period, Options | 130,000 | 152,000 |
Exercisable at end of period, Options | 112,500 | 125,750 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $3.93 | $3.06 |
Granted, Weighted- Average Exercise Price | $3.26 | |
Exercised, Weighted- Average Exercise Price | ($1.90) | |
Forfeited or expired, Weighted- Average Exercise Price | ($4.72) | |
Outstanding at end of period, Weighted- Average Exercise Price | $3.93 | $3.61 |
Exercisable at end of period, Weighted- Average Exercise Price | $4.06 | $3.72 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 6 months 26 days | 1 year 6 months 26 days |
Granted, Weighted - Average Remaining Contractual Term (Years) | 4 years 10 months 13 days | |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 0 months 26 days | 2 years 8 months 1 day |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 9 months 11 days | 2 years 2 months 12 days |
Outstanding at beginning of period, Aggregate Intrinsic Value | $13 | $122 |
Granted, Aggregate Intrinsic Value | ||
Exercised, Aggregate Intrinsic Value | -181 | |
Forfeited or expired, Aggregate Intrinsic Value | ||
Outstanding at end of period, Aggregate Intrinsic Value | 45 | |
Exercisable at end of period, Aggregate Intrinsic Value | $38 |
STOCK_OPTIONS_Details_2
STOCK OPTIONS (Details 2) (USD $) | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Notes to Financial Statements | ||
Non-vested at beginning of period, Options | 26,250 | 20,375 |
Granted, Options | 50,000 | |
Vested, Options | -8,750 | -44,125 |
Forfeited, Options | ||
Non-vested at end of period, Options | 17,500 | 26,250 |
Non-vested at beginning of period, Weighted-Average Grant-Date Fair Value | $1.69 | $3.29 |
Granted, Options, Weighted-Average Grant-Date Fair Value | $1.65 | |
Vested, Options, Weighted-Average Grant-Date Fair Value | ($1.69) | ($2.33) |
Forfeited, Options, Weighted-Average Grant-Date Fair Value | ||
Non-vested at end of period, Options , Weighted-Average Grant-Date Fair Value | $1.69 | $1.69 |
STOCK_OPTIONS_Details_3
STOCK OPTIONS (Details 3) (USD $) | 6 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Outstanding at beginning of period, Options | 130,000 | 263,500 |
Granted, Options | 50,000 | |
Exercised, Options | -121,500 | |
Forfeited or expired, Options | -40,000 | |
Outstanding at end of period, Options | 130,000 | 152,000 |
Exercisable at end of period, Options | 112,500 | 125,750 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $3.93 | $3.06 |
Granted, Weighted- Average Exercise Price | $3.26 | |
Exercised, Weighted- Average Exercise Price | ($1.90) | |
Forfeited or expired, Weighted- Average Exercise Price | ($4.72) | |
Outstanding at end of period, Weighted- Average Exercise Price | $3.93 | $3.61 |
Exercisable at end of period, Weighted- Average Exercise Price | $4.06 | $3.72 |
Granted, Weighted - Average Remaining Contractual Term (Years) | 4 years 10 months 13 days | |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 9 months 11 days | 2 years 2 months 12 days |
Outstanding at beginning of period, Aggregate Intrinsic Value | $13 | $122 |
Granted, Aggregate Intrinsic Value | ||
Exercised, Aggregate Intrinsic Value | -181 | |
Forfeited or expired, Aggregate Intrinsic Value | ||
Outstanding at end of period, Aggregate Intrinsic Value | 45 | |
Exercisable at end of period, Aggregate Intrinsic Value | 38 | |
2007 Directors Plan [Member] | ||
Outstanding at beginning of period, Options | 315,000 | 340,000 |
Granted, Options | 50,000 | 100,000 |
Exercised, Options | -65,000 | |
Forfeited or expired, Options | -60,000 | |
Outstanding at end of period, Options | 365,000 | 315,000 |
Exercisable at end of period, Options | 365,000 | 315,000 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $3.62 | $3.53 |
Granted, Weighted- Average Exercise Price | $3.81 | $3.41 |
Exercised, Weighted- Average Exercise Price | $1.72 | |
Forfeited or expired, Weighted- Average Exercise Price | ($4.81) | |
Outstanding at end of period, Weighted- Average Exercise Price | $3.64 | $3.62 |
Exercisable at end of period, Weighted- Average Exercise Price | $3.64 | $3.62 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 7 months 17 days | 1 year 11 months 16 days |
Granted, Weighted - Average Remaining Contractual Term (Years) | 3 years 4 months 28 days | |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 5 months 27 days | 3 years 1 month 13 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 5 months 27 days | 3 years 1 month 13 days |
Outstanding at beginning of period, Aggregate Intrinsic Value | 82 | 80 |
Granted, Aggregate Intrinsic Value | ||
Exercised, Aggregate Intrinsic Value | ||
Forfeited or expired, Aggregate Intrinsic Value | ||
Outstanding at end of period, Aggregate Intrinsic Value | 43 | 82 |
Exercisable at end of period, Aggregate Intrinsic Value | $43 | $82 |
STOCK_OPTIONS_Details_Narrativ
STOCK OPTIONS (Details Narrative) (USD $) | 6 Months Ended | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 09, 2013 | Sep. 17, 2013 | Dec. 07, 2013 |
Exercised during period | 121,500 | ||||
Proceeds from exercise of stock options | $342 | ||||
Employee 2007 [Member] | |||||
Shares authorized | 600,000 | ||||
Stock option term | 10 years | ||||
Exercised during period | 121,500 | ||||
Stock-based compensation expense | 7 | 25 | |||
Unamortized stock-based compensation to be recognized | 20 | 43 | |||
Unamortized stock-based compensation to be recognized, period | 2 years | 3 years | |||
Options granted | 15,000 | 35,000 | |||
Fair value, option grant | 22 | 3 | |||
Fair value, per share, option grant | $1.52 | $2.04 | |||
Proceeds from exercise of stock options | 230 | ||||
Vested stock options | 112,500 | 125,750 | |||
Weighted-average exercise price, vested options | $4.06 | $3.72 | |||
Weighted average contractual term, vested options | 1 year 9 months 10 days | 2 years 2 months 12 days | |||
Fair value of stock options, outstanding | 456 | 467 | |||
Fair value of stock options, exercisable | 456 | ||||
Fair value stock acquired upon options exercised | 181 | ||||
Director 2007 [Member] | |||||
Shares authorized | 500,000 | 400,000 | |||
Exercised during period | 65,000 | ||||
Proceeds from exercise of stock options | 112 | ||||
Director 2007 Grant 2 [Member] | |||||
Stock option term | 5 years | ||||
Exercised during period | |||||
Stock-based compensation expense | 175 | ||||
Options granted | 50,000 | 40,000 | |||
Fair value, option grant | 82 | 83 | |||
Fair value, per share, option grant | $3.81 | $1.61 | |||
Director 2007 Grant 1 [Member] | |||||
Options granted | 60,000 | ||||
Fair value, option grant | $92 | ||||
Fair value, per share, option grant | $1.52 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Notes to Financial Statements | ||||
(Loss) / income attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $97 | ($348) | ($41) | ($342) |
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | -3 | -17 | 11 | -40 |
Net (loss) / income attributable to Trio-Tech International common shareholders | $94 | ($365) | ($30) | ($382) |
Basic and diluted (loss) /earnings per share from continuing operations attributable to Trio-Tech International | $0.03 | ($0.10) | ($0.01) | ($0.10) |
Basic and diluted loss per share from discontinued operations attributable to Trio-Tech International | ($0.01) | |||
Basic and diluted (loss) / earnings per share from net (loss) / income attributable to Trio-Tech International | $0.03 | ($0.10) | ($0.01) | ($0.11) |
Weighted average number of common shares outstanding - basic | 3,513 | 3,508 | 3,513 | 3,508 |
Dilutive effect of stock options | ||||
Number of shares used to compute earnings per share - diluted | 3,513 | 3,508 | 3,513 | 3,508 |
EARNINGS_PER_SHARE_Details_Nar
EARNINGS PER SHARE (Details Narrative) (USD $) | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Options to purchase shares of Common Stock | 495,000 | 467,000 |
Shares excluded from Earnings per share amount | 495,000 | 467,000 |
Minimum Member | ||
Exercise Price | 2.07 | 1.72 |
Maximum Member | ||
Exercise Price | 4.35 | 9.57 |
ACCOUNTS_RECEIVABLE_AND_ALLOWA2
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 |
Notes to Financial Statements | ||
Beginning | $438 | $139 |
Additions charged to expenses | 56 | 303 |
Recovered | -2 | |
Currency translation effect | -17 | -2 |
Ending | $477 | $438 |
WARRANTY_ACCRUAL_Details
WARRANTY ACCRUAL (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 |
Notes to Financial Statements | ||
Beginning | $60 | $61 |
Additions charged to cost and expenses | 3 | 23 |
Recovered | -5 | -25 |
Actual Usage | -7 | |
Currency translation effect | -2 | 1 |
Ending | $49 | $60 |
WARRANTY_ACCRUAL_Details_Narra
WARRANTY ACCRUAL (Details Narrative) | 6 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Product warranty term | The warranty for products manufactured by the Company is one year. |
INCOME_TAX_Details_Narrative
INCOME TAX (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||||
Income Tax Expense Benefit | $132 | ($39) | $86 | ($82) |
INVESTMENT_PROPERTIES_Details
INVESTMENT PROPERTIES (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Mao Ye RMB [Member] | ||
Investment Amount | $5,554 | $5,554 |
Mao Ye USD [Member] | ||
Investment Amount | 894 | 904 |
Jiang Huai RMB [Member] | ||
Investment Amount | 3,600 | 3,600 |
Jiang Huai USD [Member] | ||
Investment Amount | 580 | 586 |
Fu Li RMB [Member] | ||
Investment Amount | 4,025 | 4,025 |
Fu Li USD [Member] | ||
Investment Amount | 648 | 655 |
China RMB [Member] | ||
Currency translation | ||
Gross investment in rental property | 13,179 | 13,179 |
Accumulated depreciation on rental property | -3,287 | -2,961 |
Net investment in property | 9,892 | 10,218 |
China USD [Member] | ||
Currency translation | 3 | |
Gross investment in rental property | 2,125 | |
Accumulated depreciation on rental property | -530 | |
Net investment in property | 1,595 | |
China USD [Member] | ||
Currency translation | -23 | |
Gross investment in rental property | 2,122 | |
Accumulated depreciation on rental property | -476 | |
Net investment in property | $1,646 |
INVESTMENT_PROPERTIES_Details_
INVESTMENT PROPERTIES (Details 1) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Penang-Malaysia RM [Member] | ||
Reclassification of rental property | $681 | $681 |
Gross investment in rental property | 681 | 681 |
Accumulated depreciation on rental property | -305 | -300 |
Net investment in property | 376 | 381 |
Penang-Malaysia USD [Member] | ||
Reclassification of rental property | 196 | 212 |
Gross investment in rental property | 196 | 212 |
Accumulated depreciation on rental property | -88 | -93 |
Net investment in property | $108 | $119 |
INVESTMENT_PROPERTIES_Details_1
INVESTMENT PROPERTIES (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Rental income | $44 | $46 | $87 | $90 | |
Depreciation expenses | 27 | 26 | 54 | 54 | |
Mao Ye RMB [Member] | |||||
Investment Date | 4-Jan-08 | ||||
Cash purchase price | 5,554 | 5,554 | 5,554 | ||
Rental agreement term | 5 years | ||||
Annual rent increase | 8.00% | ||||
Mao Ye USD [Member] | |||||
Cash purchase price | 894 | 894 | 904 | ||
Rental income | 30 | 29 | 59 | 57 | |
Jiang Huai RMB [Member] | |||||
Cash purchase price | 3,600 | 3,600 | 3,600 | ||
Jiang Huai USD [Member] | |||||
Investment Date | 6-Jan-10 | ||||
Cash purchase price | 580 | 580 | 586 | ||
Rental income | 4 | 9 | |||
Fu Li RMB [Member] | |||||
Cash purchase price | 4,025 | 4,025 | 4,025 | ||
Fu Li USD [Member] | |||||
Investment Date | 8-Apr-10 | ||||
Cash purchase price | 648 | 648 | 655 | ||
Rental income | 14 | 12 | 28 | 24 | |
Fu Li U S D Lease 1 [Member] | |||||
Initial rental increase | 20.00% | ||||
Annual rent increase | 10.00% | ||||
Fu Li U S D Lease 2 [Member] | |||||
Initial rental increase | 21.00% | ||||
Annual rent increase | 6.00% | ||||
Penang-Malaysia RM [Member] | |||||
Factory reclassified to investment property | 376 | 376 | |||
Penang-Malaysia USD [Member] | |||||
Investment Date | 31-Dec-12 | ||||
Factory reclassified to investment property | 108 | 108 | |||
Depreciation expenses | $1 | $2 |
LOAN_RECEIVABLE_FROM_PROPERTY_2
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Jiang Huai RMB [Member] | ||
Short-term loan receivables | ||
Short-term | $2,000 | $2,000 |
Less: Impairment | -2,000 | -2,000 |
Short-term loan receivables, net | ||
Jiang Huai USD [Member] | ||
Short-term loan receivables | ||
Short-term | 326 | 325 |
Less: Impairment | -325 | -325 |
Short-term loan receivables, net | ||
Jun Zhou Zhi Ye RMB [Member] | ||
Long-term loan receivables | ||
Long-term | 5,000 | 5,000 |
Less: transfer b down-payment for purchase of property | -5,000 | |
Long-term loan receivables, net | 5,000 | |
Jun Zhou Zhi Ye U S D [Member] | ||
Long-term loan receivables | ||
Long-term | 814 | 805 |
Less: transfer b down-payment for purchase of property | -814 | |
Long-term loan receivables, net | $805 |
LOAN_RECEIVABLE_FROM_PROPERTY_3
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Jiang Huai RMB [Member] | |||||
Other income | |||||
Allwance for doubtful receivables | 325 | ||||
Jun Zhou Zhi Ye RMB [Member] | |||||
Long-term Loan income receivable | 5,000 | 5,000 | 5,000 | ||
Other income | 104 | 417 | |||
Jun Zhou Zhi Ye U S D [Member] | |||||
Long-term Loan income receivable | 814 | 814 | 805 | ||
Other income | 16 | 68 | |||
Jiang Huai RMB [Member] | |||||
Short-term Loan income receivable | 2,000 | 2,000 | 2,000 | ||
Jiang Huai USD [Member] | |||||
Short-term Loan income receivable | $326 | $326 | $325 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Net revenue | $8,897 | $9,339 | $16,990 | $18,836 | |
Operating (loss) income | 437 | -106 | 314 | -119 | |
Total assets | 32,870 | 34,696 | 32,870 | 34,696 | 34,590 |
Depreciation and amortization | 566 | 596 | 1,189 | 1,198 | |
Additions to property, plant and equipment | -432 | -1,237 | 899 | 1,721 | |
Manufacturing [Member] | |||||
Net revenue | 3,348 | 4,368 | 6,395 | 8,569 | |
Operating (loss) income | -117 | -201 | -735 | -328 | |
Total assets | 13,460 | 10,872 | 13,460 | 10,872 | |
Depreciation and amortization | 43 | 38 | 70 | 77 | |
Additions to property, plant and equipment | -6 | -91 | 23 | 221 | |
Testing Services [Member] | |||||
Net revenue | 5,073 | 4,597 | 9,691 | 8,645 | |
Operating (loss) income | 687 | 289 | 1,274 | 391 | |
Total assets | 14,896 | 19,331 | 14,896 | 19,331 | |
Depreciation and amortization | 496 | 531 | 1,065 | 1,067 | |
Additions to property, plant and equipment | -426 | -1,146 | 870 | 1,500 | |
Distribution [Member] | |||||
Net revenue | 432 | 328 | 817 | 1,532 | |
Operating (loss) income | 36 | 7 | 199 | ||
Total assets | 678 | 418 | 678 | 418 | |
Depreciation and amortization | |||||
Additions to property, plant and equipment | 6 | ||||
RealEstate [Member] | |||||
Net revenue | 44 | 46 | 87 | 90 | |
Operating (loss) income | -44 | -22 | -91 | -45 | |
Total assets | 3,686 | 3,893 | 3,686 | 3,893 | |
Depreciation and amortization | 27 | 27 | 54 | 54 | |
Additions to property, plant and equipment | |||||
Fabrication Services [Member] | |||||
Net revenue | |||||
Operating (loss) income | |||||
Total assets | 33 | 106 | 33 | 106 | |
Depreciation and amortization | |||||
Additions to property, plant and equipment | |||||
CorporateAndUnallocated [Member] | |||||
Net revenue | |||||
Operating (loss) income | -126 | -179 | -134 | -336 | |
Total assets | 117 | 76 | 117 | 76 | |
Depreciation and amortization | |||||
Additions to property, plant and equipment |
BUSINESS_SEGMENTS_Details_1
BUSINESS SEGMENTS (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Net revenue | $8,897 | $9,339 | $16,990 | $18,836 | |
Operating (loss) income | 437 | -106 | 314 | -119 | |
Total assets | 32,870 | 34,696 | 32,870 | 34,696 | 34,590 |
Depreciation and amortization | 566 | 596 | 1,189 | 1,198 | |
Additions to property, plant and equipment | 432 | 1,237 | -899 | -1,721 | |
Manufacturing [Member] | |||||
Net revenue | 3,348 | 4,368 | 6,395 | 8,569 | |
Operating (loss) income | -117 | -201 | -735 | -328 | |
Total assets | 13,460 | 10,872 | 13,460 | 10,872 | |
Depreciation and amortization | 43 | 38 | 70 | 77 | |
Additions to property, plant and equipment | 6 | 91 | -23 | -221 | |
Testing Services [Member] | |||||
Net revenue | 5,073 | 4,597 | 9,691 | 8,645 | |
Operating (loss) income | 687 | 289 | 1,274 | 391 | |
Total assets | 14,896 | 19,331 | 14,896 | 19,331 | |
Depreciation and amortization | 496 | 531 | 1,065 | 1,067 | |
Additions to property, plant and equipment | 426 | 1,146 | -870 | -1,500 | |
Distribution [Member] | |||||
Net revenue | 432 | 328 | 817 | 1,532 | |
Operating (loss) income | 36 | 7 | 199 | ||
Total assets | 678 | 418 | 678 | 418 | |
Depreciation and amortization | |||||
Additions to property, plant and equipment | -6 | ||||
RealEstate [Member] | |||||
Net revenue | 44 | 46 | 87 | 90 | |
Operating (loss) income | -44 | -22 | -91 | -45 | |
Total assets | 3,686 | 3,893 | 3,686 | 3,893 | |
Depreciation and amortization | 27 | 27 | 54 | 54 | |
Additions to property, plant and equipment | |||||
Fabrication Services [Member] | |||||
Net revenue | |||||
Operating (loss) income | |||||
Total assets | 33 | 106 | 33 | 106 | |
Depreciation and amortization | |||||
Additions to property, plant and equipment | |||||
CorporateAndUnallocated [Member] | |||||
Net revenue | |||||
Operating (loss) income | -126 | -179 | -134 | -336 | |
Total assets | 117 | 76 | 117 | 76 | |
Depreciation and amortization | |||||
Additions to property, plant and equipment |
BUSINESS_SEGMENTS_Details_Narr
BUSINESS SEGMENTS (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Company operating segments | 4 | 4 | 5 | |||
Total inter-segment revenue | $97 | $48 | $142 | $196 | ||
RealEstate [Member] | ||||||
Other income | $16 | $51 | $68 | $102 |
NONCONTROLLING_INTEREST_Detail
NON-CONTROLLING INTEREST (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Non-controlling interest | |||||
Net income | ($248) | $368 | ($180) | $284 | |
Dividend declared by subsidiary | -313 | ||||
Translation adjustment | -414 | -228 | |||
Non-Controlling Interest | |||||
Non-controlling interest | |||||
Beginning balance | 1,732 | 1,971 | 1,971 | ||
Net income | 210 | 144 | |||
Dividend declared by subsidiary | -313 | ||||
Translation adjustment | -62 | -70 | |||
Ending balance | $1,880 | $1,880 | $1,732 |
NONCONTROLLING_INTEREST_Detail1
NON-CONTROLLING INTEREST (Details Narrative) | Dec. 31, 2014 |
Controlling Interest 1 [Member] | |
Non controlling interest | 45.00% |
Controlling Interest 2 [Member] | |
Non controlling interest | 45.00% |
Controlling Interest 3 [Member] | |
Non controlling interest | 24.00% |
BANK_LOANS_PAYABLE_Details
BANK LOANS PAYABLE (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current portion | ($178) | ($448) |
Long term portion of bank loans payable | 2,298 | 2,598 |
Commercial Bank Note [Member] | ||
Bank loan payable | 2,476 | 2,786 |
Financial Institution Note [Member] | ||
Bank loan payable | $260 |
BANK_LOANS_PAYABLE_Details_1
BANK LOANS PAYABLE (Details 1) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Notes to Financial Statements | ||
2015 | $178 | $448 |
2016 | 187 | 198 |
2017 | 197 | 209 |
2018 | 208 | 220 |
2019 | 218 | 138 |
Thereafter | 1,488 | 1,833 |
Total obligations and commitments | $2,476 | $3,046 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $614 | $358 |
Malaysia_RMB [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 1,813 | |
Malaysia US [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 519 | |
TianjinRMB [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 307 | |
TianjnUS [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 50 | |
Trio Tech International Singapore SGD [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 59 | |
Trio Tech International Singapore U S D [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $45 |
DISCONTINUED_OPERATION_AND_COR2
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Notes to Financial Statements | ||||
Revenue | ||||
Cost of sales | 3 | |||
Gross loss | -3 | |||
Operating Expenses | ||||
General and administrative | 18 | 3 | 18 | 7 |
Total | 18 | 3 | 18 | 7 |
Loss from discontinued operations | -18 | -3 | -18 | -10 |
Other income / (expenses) | 12 | -27 | 38 | -62 |
Income / (loss) from discontinued operations, net of tax | ($6) | ($30) | $20 | ($72) |
DISCONTINUED_OPERATION_AND_COR3
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
General and administrative expenses, discontinued operations | $18 | $3 | $18 | $7 |
Indonesia [Member] | ||||
Outstanding balance of accounts payable, discontinued operations | 83 | 83 | ||
Outstanding balance accounts receivable, discontinued operations | ||||
Shanghai [Member] | ||||
Outstanding balance of accounts payable, discontinued operations | 38 | 38 | ||
Outstanding balance accounts receivable, discontinued operations | $2 | $2 |
INVESTMENTS_Details_Narrative
INVESTMENTS (Details Narrative) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Cash offset Received | $803 | |
Net investment | 1,606 | |
Agreement purchase price, non-monetary consideration | 1,606 | |
Agreement purchase price, cash consideration | 1,307 | |
Acquisition percentage | 10.00% | |
Investment reduced | 22 | |
Carrying value of investment | 781 | |
China RMB [Member] | ||
Cash offset Received | 5,000 | |
Net investment | 10,000 | |
Agreement purchase price, non-monetary consideration | 10,000 | |
Agreement purchase price, cash consideration | 8,000 | |
Acquisition percentage | 10.00% | |
Investment reduced | 137 | |
Carrying value of investment | 4,863 | |
Jiang Huai RMB [Member] | ||
Cash payment received | 2,000 | 2,000 |
Jiang Huai USD [Member] | ||
Cash payment received | 326 | 325 |
Jun Zhou Zhi Ye RMB [Member] | ||
Loan receivable | 5,000 | 5,000 |
Interest receivable | 5,900 | |
Unrecognized cash consideration | 8,000 | |
Jun Zhou Zhi Ye U S D [Member] | ||
Loan receivable | $814 | $805 |
LINES_OF_CREDIT_Details
LINES OF CREDIT (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 |
TrioTech Intl Credit Facility [Member] | ||
Type of facility | Line of Credit | Line of Credit |
Interst rate | Ranging from 1.88% to 8.06% | Ranging from 1.77% to 6.04% |
Credit limitation | $8,135 | $9,073 |
Unused credit | 5,618 | 5,306 |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | ||
Type of facility | Line of Credit | |
Interst rate | Ranging from 4.6% to 5.1% | |
Credit limitation | 429 | |
Unused credit | $257 |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Payroll and related costs | $1,104 | $1,096 |
Commissions | 65 | 47 |
Customer deposits | 75 | 79 |
Legal and audit | 185 | 177 |
Sales tax | 120 | 120 |
Utilities | 130 | 156 |
Warranty | 51 | 60 |
Accrued purchase of materials and fixed assets | 614 | 358 |
Provision for re-instatement of leasehold properties | 367 | 367 |
Other accrued expenses | 346 | 602 |
Currency translation effect | -65 | -16 |
Total | $2,992 | $3,046 |
OTHER_ASSETS_Other_assets_Deta
OTHER ASSETS - Other assets (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Down-payment for property, plant and equipment | $1,847 | $1,103 |
Deposit for rental and utilities | 150 | 158 |
Others | 2 | |
Ending balance | $1,997 | $1,263 |
OTHER_INCOME_EXPENSES_Details
OTHER INCOME / (EXPENSES) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Other Income Expenses Details | ||||
Investment income deemed interest income | $16 | $51 | $68 | $102 |
Allowance for doubtful loan receivables | -16 | -338 | -68 | -338 |
Interest income | 4 | 1 | 6 | 2 |
Other rental income | 26 | 60 | 52 | 165 |
Exchange gain / (loss) | -59 | -6 | -70 | 32 |
Other miscellaneous (expense) / income | 36 | 27 | 66 | -4 |
Total | $7 | ($205) | $54 | ($41) |
OTHER_INCOME_EXPENSES_Details_
OTHER INCOME / (EXPENSES) (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Other Income and Expenses [Abstract] | ||||
Other investment income | $16 | $51 | $68 | $102 |
Allowance for doubtful loan receivables | $16 | $338 | $68 | $338 |