Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May. 05, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | TRIO-TECH INTERNATIONAL | |
Entity Central Index Key | 732,026 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,513,055 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 3,545 | $ 3,711 |
Short-term deposits | 95 | 101 |
Trade accounts receivable, less allowance for doubtful accounts of $298 and $313 | 8,970 | 7,875 |
Other receivables | $ 366 | $ 389 |
Loans receivable from property development projects - short term | ||
Inventories, less provision for obsolete inventory of $691 and $764 | $ 1,414 | $ 1,141 |
Prepaid expenses and other current assets | 294 | 244 |
Assets held for sale | 94 | 98 |
Total current assets | 14,778 | 13,559 |
NON-CURRENT ASSETS | ||
Deferred tax assets | $ 406 | $ 453 |
Investments | ||
Investment properties, net | $ 1,402 | $ 1,540 |
Property, plant and equipment, net | $ 11,313 | $ 12,522 |
Loans receivable from property development projects - long term | ||
Other assets | $ 2,123 | $ 1,823 |
Restricted term deposits | 2,068 | 2,140 |
Total non-current assets | 17,312 | 18,478 |
TOTAL ASSETS | 32,090 | 32,037 |
CURRENT LIABILITIES: | ||
Lines of credit | 1,321 | 1,578 |
Accounts payable | 4,074 | 2,770 |
Accrued expenses | 2,462 | 3,084 |
Income taxes payable | 214 | 296 |
Current portion of bank loans payable | 374 | 346 |
Current portion of capital leases | 224 | 197 |
Total current liabilities | 8,669 | 8,271 |
NON-CURRENT LIABILITIES: | ||
Bank loans payable, net of current portion | 1,834 | 2,198 |
Capital leases, net of current portion | 485 | 475 |
Deferred tax liabilities | 228 | 333 |
Other non-current liabilities | 39 | 38 |
Total non-current liabilities | 2,586 | 3,044 |
TOTAL LIABILITIES | 11,255 | 11,315 |
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 March 31, 2016 and June 30, 2015, respectively | 10,882 | 10,882 |
Paid-in capital | 3,186 | 3,087 |
Accumulated retained earnings | 2,845 | 2,246 |
Accumulated other comprehensive gain-translation adjustments | 2,270 | 2,771 |
Total Trio-Tech International shareholders' equity | 19,183 | 18,986 |
Non-controlling interest | 1,652 | 1,736 |
TOTAL EQUITY | 20,835 | 20,722 |
TOTAL LIABILITIES AND EQUITY | $ 32,090 | $ 32,037 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 298 | $ 313 |
Provision for obsolete inventory | $ 691 | $ 764 |
Common stock, Authorized | 15,000,000 | 15,000,000 |
Common stock, Issued | 3,513,055 | 3,513,055 |
Common stock, outstanding | 3,513,055 | 3,513,055 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue | ||||
Manufacturing | $ 4,468 | $ 3,359 | $ 10,884 | $ 9,754 |
Testing services | 3,622 | 4,138 | 11,106 | 13,829 |
Distribution | 1,232 | 1,003 | 3,566 | 1,820 |
Others | 33 | 43 | 83 | 130 |
Total | 9,355 | 8,543 | 25,639 | 25,533 |
Cost of Sales | ||||
Cost of manufactured products sold | 3,597 | 2,544 | 8,177 | 8,143 |
Cost of testing services rendered | 2,570 | 2,586 | 7,827 | 8,991 |
Cost of distribution | 1,025 | 891 | 3,118 | 1,568 |
Others | 31 | 34 | 92 | 103 |
Total | 7,223 | 6,055 | 19,214 | 18,805 |
Gross Margin | 2,132 | 2,488 | 6,425 | 6,728 |
Operating Expenses | ||||
General and administrative | 1,600 | 1,737 | 4,861 | 5,175 |
Selling | 158 | 235 | 470 | 531 |
Research and development | $ 51 | $ 44 | $ 148 | 138 |
Impairment loss | 70 | |||
(Gain) / loss on disposal of property, plant and equipment | $ (4) | 28 | ||
Total operating expenses | $ 1,809 | $ 2,016 | 5,475 | 5,942 |
Income from Operations | 323 | 472 | 950 | 786 |
Other (Expenses) / Income | ||||
Interest expense | (47) | (52) | (151) | (174) |
Other (expenses) / income, net | (97) | 3 | 129 | 57 |
Total other (expenses) / income | (144) | (49) | (22) | (117) |
Income from Continuing Operations before Income Taxes | 179 | 423 | 928 | 669 |
Income Tax Expenses | (15) | (170) | (168) | (256) |
Income from continuing operations before non-controlling interest, net of tax | 164 | 253 | 760 | 413 |
Discontinued Operations (Note 19) | ||||
Income / (loss) from discontinued operations, net of tax | (1) | (13) | (5) | 7 |
NET INCOME | 163 | 240 | 755 | 420 |
Less: income attributable to non-controlling interest | 13 | 41 | 156 | 251 |
Net Income Attributable to Trio-Tech International Common Shareholder | 150 | 199 | 599 | 169 |
Amounts Attributable to Trio-Tech International Common Shareholders: | ||||
Income from continuing operations, net of tax | 155 | 207 | 607 | 166 |
Income / (loss) from discontinued operations, net of tax | (5) | (8) | (8) | 3 |
Net Income Attributable to Trio-Tech International Common Shareholders | $ 150 | $ 199 | $ 599 | $ 169 |
Basic and Diluted Earnings per Share: | ||||
Basic and diluted earnings per share from continuing operations attributable to Trio-Tech International | $ .04 | $ .06 | $ .17 | $ .05 |
Basic and diluted earnings per share from discontinued operations attributable to Trio-Tech International | ||||
Basic and Diluted Earnings per Share from Net Income Attributable to Trio-Tech International | $ .04 | $ .06 | $ .17 | $ .05 |
Weighted average number of common shares outstanding Basic | 3,563 | 3,513 | 3,563 | 3,513 |
Dilutive effect of stock options | 13 | 16 | 12 | 41 |
Number of shares used to compute earnings per share diluted | 3,576 | 3,529 | 3,575 | 3,554 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Comprehensive Income Attributable to Trio-Tech International Common Shareholders: | ||||
Net income | $ 163 | $ 240 | $ 755 | $ 420 |
Foreign currency translation, net of tax | 779 | (353) | (624) | (767) |
Comprehensive Income / (Loss) | 942 | (113) | 131 | (347) |
Less: comprehensive income / (loss) attributable to non-controlling interest | 170 | (39) | 32 | 110 |
Comprehensive Income / (Loss) Attributable to Trio-Tech International Common Shareholders | $ 772 | $ (74) | $ 99 | $ (457) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total |
Beginning Balance, Amount at Jun. 30, 2014 | $ 10,882 | $ 2,972 | $ 1,725 | $ 3,522 | $ 1,732 | $ 20,833 |
Beginning Balance, No. of Shares at Jun. 30, 2014 | 3,513 | |||||
Stock option expenses | $ 106 | 106 | ||||
Net income | $ 521 | $ 303 | 824 | |||
Translation adjustment | $ (751) | $ (299) | (1,050) | |||
Contributions to capital payable forgiveness | $ 9 | 9 | ||||
Ending Balance, Amount at Jun. 30, 2015 | $ 10,882 | 3,087 | $ 2,246 | $ 2,771 | $ 1,736 | 20,722 |
Ending Balance, No. of Shares at Jun. 30, 2015 | 3,513 | |||||
Dividend declared by subsidiary | $ (117) | (117) | ||||
Stock option expenses | $ 99 | 99 | ||||
Net income | $ 599 | $ 156 | 755 | |||
Translation adjustment | $ (501) | (123) | (624) | |||
Ending Balance, Amount at Mar. 31, 2016 | $ 10,882 | $ 3,186 | $ 2,845 | $ 2,270 | $ 1,652 | $ 20,835 |
Ending Balance, No. of Shares at Mar. 31, 2016 | 3,513 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Cash Flow from Operating Activities | |||||
Net income | $ 163 | $ 240 | $ 755 | $ 420 | $ 824 |
Adjustments to reconcile net income to net cash flow provided by operating activities | |||||
Depreciation and amortization | 1,375 | 1,742 | |||
Bad debt (recovery) / expense, net | (4) | 50 | |||
Inventory recovery | (69) | (77) | |||
Warranty recovery) | (40) | 77 | |||
Accrued interest expense, net accrued interest income | 141 | 27 | |||
(Gain) / loss on disposal of property, plant and equipment - continued operations | (53) | 28 | |||
Impairment loss | $ (1) | 70 | |||
Contribution to capital - payable forgiveness | 9 | ||||
Stock option expenses | $ 99 | $ 97 | |||
Write-off of property, plant and equipment | 2 | ||||
Deferred tax provision | (77) | $ (3) | |||
Changes in operating assets and liabilities | |||||
Accounts receivables | (1,091) | 244 | |||
Other receivables | 23 | 27 | |||
Other assets | (100) | 42 | |||
Inventories | (204) | (307) | |||
Prepaid expenses and other current assets | (50) | (96) | |||
Accounts payable and accrued liabilities | 722 | 13 | |||
Income tax payable | (82) | 29 | |||
Net Cash Provided by Operating Activities | 1,346 | 2,392 | |||
Cash Flow from Investing Activities | |||||
Proceeds from maturing of restricted and un-restricted term deposits | 63 | 636 | |||
Additions to property, plant and equipment | (573) | (561) | (887) | (1,460) | |
Proceeds from disposal of plant, property, and equipment | 210 | 15 | |||
Net Cash used in Investing Activities | (614) | (809) | |||
Cash Flow from Financing Activities | |||||
Repayments on lines of credit | (282) | (1,644) | |||
Repayment of bank loans and capital leases | (516) | (570) | |||
Proceeds from long-term bank loans | 183 | 260 | |||
Dividend paid to non-controlling interest | (117) | (3) | |||
Net Cash Used in Financing Activities | (732) | (1,957) | |||
Effect of Changes in Exchange Rate | (166) | (191) | |||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (166) | (565) | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3,711 | 2,938 | 2,938 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 3,545 | $ 2,373 | 3,545 | 2,373 | $ 3,711 |
Supplementary Information of Cash Flows | |||||
Cash paid during the period for Interest | 152 | 177 | |||
Cash paid during the period for Income taxes | 157 | 8 | |||
Non-Cash Transactions | |||||
Capital lease of property, plant and equipment | $ 183 | $ 260 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
ORGANIZATION AND 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 and 2016 TTI carried its business in four segments and 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. (49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) 100% Bangkok, Thailand Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) 55% Penang and Selangor, Malaysia Trio-Tech (Kuala Lumpur) Sdn. Bhd. 55% Selangor, Malaysia (100% owned by Trio-Tech Malaysia Sdn. Bhd.) Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.) 76% Selangor, Malaysia Trio-Tech (Suzhou) Co. Ltd. * 100% Suzhou, China Trio-Tech (Shanghai) Co. Ltd. * (Dormant) 100% Shanghai, China Trio-Tech (Chongqing) Co. Ltd. * 100% Chongqing, China SHI International Pte. Ltd. (Dormant) (55% owned by Trio-Tech International Pte. Ltd) 55% Singapore PT SHI Indonesia (Dormant) (100% owned by SHI International Pte. Ltd.) 55% Batam, Indonesia Trio-Tech (Tianjin) Co. Ltd. * 100% Tianjin, China * 100% owned by Trio-Tech International Pte. Ltd, The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. All significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements are presented in U.S. dollars. The accompanying condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. Operating results for the nine months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2016. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report for the fiscal year ended June 30, 2015. The Company’s operating results are presented based on the translation of foreign currencies using the respective quarter’s average exchange rate. Strengthening of the U.S. dollar relative to the foreign currencies caused the translation difference during the current year as compared to the same period of last year, affecting the revenue and operating profitability, which negatively impacted the Company’s results. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
NEW ACCOUNTING PRONOUNCEMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | The amendments in Accounting Standards Update (“ASU”) 2016-09 ASC Topic 718: Compensation – Stock Compensation The amendments in ASU 2016-02 ASC Topic 842: Leases The amendments in ASU 2015-17 eliminate the current requirement for organizations to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as non-current. For a public entity, the amendments in ASU 2015-17 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is permitted and the Company has adopted this ASU and there is no significant effect on the Company’s consolidated financial position or results of operations. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. The amendments in ASU 2015-14 ASC Topic 606: Deferral of the Effective Date The Financial Accounting Standards Board (“FASB”) has issued converged standards on revenue recognition. Specifically, the Board has issued ASU 2014-09, ASC Topic 606. ASU 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). ASU 2014-09 will supersede the revenue recognition requirements in ASC Topic 605, Revenue Recognition Revenue Recognition—Construction-Type and Production-Type Contracts Property, Plant, and Equipment Intangibles—Goodwill and Other The amendments in ASU 2015-11 ASC Topic 330: Simplifying the Measurement of Inventory FASB amended ASU 2015-07 ASC Topic 820: Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent) The amendments in ASU 2015-06 ASC Topic 260: Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions The amendments in ASU 2015-02 ASC Topic 810: Amendments to the Consolidation Analysis The amendments in ASU 2015-01 eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items FASB amended ASU 2014-15 Subtopic 205-40, Presentation of Financial Statements – Going Concern The FASB has issued ASU No. 2014-08, ASC Topic 205 Presentation of Financial Statements Property, Plant, and Equipment Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity Other new pronouncements issued but not yet effective are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
ACCOUNTS RECEIVABLE AND ALLOWAN
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 9 Months Ended |
Mar. 31, 2016 | |
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 customersÂ’ financial conditions. Senior management reviews accounts receivable on a periodical basis to determine if any receivables will potentially be uncollectible. Management includes any accounts receivable balances that are determined to be uncollectible in the allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available, management believed the allowance for doubtful accounts as of March 31, 2016 and June 30, 2015 was adequate. The following table represents the changes in the allowance for doubtful accounts: Mar. 31, 2016 (Unaudited) June 30, 2015 Beginning $ 313 $ 438 Additions charged to expenses 2 84 Recovered/ written-off (6 ) (180 ) Currency translation effect (11 ) (29 ) Ending $ 298 $ 313 |
LOANS RECEIVABLE FROM PROPERTY
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | The following table presents Trio-Tech Chongqing’s (“TTCQ”) loans receivable from property development projects in China as of March 31, 2016. The exchange rate is based on the historical rate published by the Monetary Authority of Singapore as on March 31, 2015, since the net loans receivable was “nil” as at March 31, 2016. Loan Expiry Loan Amount Loan Amount Date (RMB) (U.S. Dollars) Short-term loan receivables JiangHuai (Project - Yu Jin Jiang An) May 31, 2013 2,000 325 Less: allowance for doubtful receivables (2,000 ) (325 ) Net loan receivable from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment property (5,000 ) (814 ) Net loan receivable from property development projects - - The following table presents TTCQ’s loans receivable from property development projects in China as of June 30, 2015. The exchange rate is based on the historical rate published by the Monetary Authority of Singapore as on March 31, 2015, since the net loans receivable was “nil” as at June 30, 2015. Loan Expiry Loan Amount Loan Amount Date (RMB) (U.S. Dollars) Short-term loan receivables Investment in JiangHuai (Project - Yu Jin Jiang An) May 31, 2013 2,000 325 Less: allowance for doubtful receivables (2,000 ) (325 ) Net loan receivable from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment property (5,000 ) (814 ) Net loan receivable from property development projects - - 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 On November 1, 2010, TTCQ entered into another Memorandum Agreement with JiaSheng Property Development Co. Ltd. (“JiaSheng”) to invest in their property development projects (Project B-48 Phase 2) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310, amounting to RMB 5,000, or approximately $814 based on the exchange rate as at March 31, 2015 published by the Monetary Authority of Singapore. The amount was unsecured and repayable at the end of the term. The loan was renewed in November 2011 for a period of one year, which expired on October 31, 2012 and was again renewed in November 2012 and expired in November 2013. On November 1, 2013 the loan was transferred by JiaSheng to, and is now payable by, Chong Qing Jun Zhou Zhi Ye Co. Ltd. (“Jun Zhou Zhi Ye”), and the transferred agreement expires on October 31, 2016. Hence the loan receivable was reclassified as a long-term receivable. The book value of the loan receivable approximates its fair value. TTCQ did not generate other income from Jun Zhou Zhi Ye for the three months ended March 31, 2015, however for the nine months ended March 31, 2015, TTCQ recorded RMB 417, or approximately $68. In fiscal year 2015, an allowance for doubtful deemed interest receivables from Jun Zhou Zhi Ye of $68 was made on the other income. In the second quarter of fiscal year 2015, the loan receivable was transferred to down payment for purchase of investment property that is being developed in the Singapore Themed Resort Project. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
INVENTORIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Inventories consisted of the following: Mar. 31, 2016 June 30, (Unaudited) 2015 Raw materials $ 932 $ 1,038 Work in progress 891 611 Finished goods 279 348 Less: provision for obsolete inventory (691 ) (764 ) Currency translation effect 3 (92 ) $ 1,414 $ 1,141 The following table represents the changes in provision for obsolete inventory: Mar. 31, 2016 June 30, (Unaudited) 2015 Beginning $ 764 $ 844 Additions charged to expenses 14 67 Usage - disposition (84 ) (103 ) Currency translation effect (3 ) (44 ) Ending $ 691 $ 764 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 9 Months Ended |
Mar. 31, 2016 | |
Assets Held For Sale | |
ASSETS HELD FOR SALE | During the fourth quarter of 2015, the operations in Malaysia planned to sell its factory building in Penang, Malaysia. In accordance to ASC Topic 360, the property was reclassified from investment property, which had a net book value of Malaysia ringgit (“RM”) 371, or approximately $98, to assets held for sale since there was an intention to sell the factory building. In May 2015, Trio-Tech Malaysia (“TTM”) was approached by a potential buyer to purchase the factory building. On September 14, 2015, application to sell the property was rejected by Penang Development Corporation (“PDC”). The rejection was based on the business activity of the purchaser not suitable to the industry that is being promoted on the said property. PDC made an offer to purchase the property, which was not at the expected value, and the offer expired on March 28, 2016. However, management is also actively looking for a suitable buyer. As of March 31, 2016 the net book value was RM 369, or approximately $94. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
INVESTMENT (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Investments were nil as at March 31, 2016 and as at June 30, 2015. During the second quarter of fiscal year 2011, the Company entered into a joint-venture agreement with JiaSheng to develop real estate projects in China. The Company invested RMB 10,000, or approximately $1,606 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore, for a 10% interest in the newly formed joint venture, which was incorporated as a limited liability company, Chong Qing Jun Zhou Zhi Ye Co. Ltd. (the “joint venture”), in China. The agreement stipulated that the Company would nominate two of the five members of the Board of Directors of the joint venture and had the ability to assign two members of management to the joint venture. The agreement also stipulated that the Company would receive a fee of RMB 10,000, or approximately $1,606 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore, for the services rendered in connection with obtaining priority to bid in certain real estate projects from the local government. Upon signing of the agreement, JiaSheng paid the Company RMB 5,000 in cash, or approximately $803 based on the exchange rate published by the Monetary Authority of Singapore as of March 31, 2014. The remaining RMB 5,000, which was not recorded as a receivable as the Company considered the collectability uncertain, would be paid over 72 months commencing in 36 months from the date of the agreement when the joint venture secured a property development project stated inside the joint venture agreement. The Company considered the RMB 5,000, or approximately $803 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore, received in cash from JiaSheng, the controlling venturer in the joint venture, as a partial return of the Company’s initial investment of RMB 10,000, or approximately $1,606 based on the exchange rate as of March 31, 2014 published by the Monetary Authority of Singapore. Therefore, the RMB 5,000 received in cash was offset against the initial investment of RMB 10,000, resulting in a net investment of RMB5,000 as of March 31, 2014. The Company further reduced its investments by RMB 137, or approximately $22, towards the losses from operations incurred by the joint-venture, resulting in a net investment of RMB 4,863, or approximately $781 based on exchange rates published by the Monetary Authority of Singapore as of March 31, 2014. “Investments” in the real estate segment were the cost of an investment in a joint venture in which we had a 10% interest. During the second quarter of fiscal year 2014, TTCQ disposed of its 10% interest in the joint venture. The joint venture had to raise funds for the development of the project. As a joint-venture partner, TTCQ was required to stand guarantee for the funds to be borrowed; considering the amount of borrowing, the risk involved was higher than the investment made and hence TTCQ decided to dispose of the 10% interest in the joint venture investment. On October 2, 2013, TTCQ entered into a share transfer agreement with Zhu Shu. Based on the agreement, the purchase price was to be paid by (1) RMB 10,000 worth of commercial property in Chongqing China, or approximately $1,634 based on exchange rates published by the Monetary Authority of Singapore as of October 2, 2013, by non-monetary consideration and (2) the remaining RMB 8,000, or approximately $1,307 based on exchange rates published by the Monetary Authority of Singapore as of October 2, 2013, by cash consideration. The consideration consists of (1) commercial units measuring 668 square meters to be delivered in June 2016 and (2) sixteen quarterly equal installments of RMB 500 per quarter commencing from January 2014. Based on ASC Topic 845 Non-monetary Consideration On October 14, 2014, TTCQ and Jun Zhou Zhi Ye entered into a memorandum of understanding. Based on the memorandum of understanding, both parties have agreed to register a sales and purchase agreement upon Jun Zhou Zhi Ye obtaining the license to sell the commercial property (the Singapore Themed Resort Project) located in Chongqing, China. The proposed agreement is for the sale of shop lots with a total area of 1,484.55 square meters as consideration for all the outstanding amounts owed to TTCQ by Jun Zhou Zhi Ye as follows: a) Long term loan receivable RMB 5,000, or approximately $814, as disclosed in Note 4, plus the interest receivable on long term loan receivable of RMB 1,250; b) Commercial units measuring 668 square meters, as mentioned above; and c) RMB 5,900 for the part of the unrecognized cash consideration of RMB 8,000 relating to the disposal of the joint venture. The shop lots are to be delivered to TTCQ upon completion of the construction of the shop lots in the Singapore Themed Resort Project, the initial targeted date of completion was no later than December 31, 2016. However, should there be further delays in the project completion, based on the discussion with the developers it is estimated to be completed by June 30, 2018. The consideration does not include the remaining outstanding amount of RMB 2,000, or approximately $326, which will be paid in cash. |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016. The exchange rate is based on the exchange rate as of March 31, 2016 published by the Monetary Authority of Singapore. Investment Investment Amount Investment Amount Date (RMB) (U.S. Dollars) Purchase of Property I – MaoYe Jan 04, 2008 5,554 894 Purchase of Property II – JiangHuai Jan 06, 2010 3,600 580 Purchase of Property III – FuLi Apr 08, 2010 4,025 649 Currency translation - (86 ) Gross investment in rental properties 13,179 2,037 Accumulated depreciation on rental properties (4,114 ) (635 ) Net investment in properties – China 9,065 1,402 The following table presents the Company’s investment properties in China as of June 30, 2015. The exchange rate is based on the exchange rate as of June 30, 2015 published by the Monetary Authority of Singapore. Investment Investment Amount Investment Amount Date (RMB) (U.S. Dollars) Purchase of Property I – MaoYe Jan 04, 2008 5,554 894 Purchase of Property II – JiangHuai Jan 06, 2010 3,600 580 Purchase of Property III – FuLi Apr 08, 2010 4,025 648 Currency translation - 1 Gross investment in rental properties 13,179 2,123 Accumulated depreciation on rental properties (3,619 ) (583 ) Net investment in properties – China 9,560 1,540 Rental Property I - MaoYe In fiscal 2008, TTCQ purchased an office in Chongqing, China from MaoYe Property Ltd. (“MaoYe”), for a total cash purchase price of RMB 5,554, or approximately $894 based on the exchange rate as of March 31, 2016 published by the Monetary Authority of Singapore. TTCQ rented this property to a third party on July 13, 2008. The term of the rental agreement was five years. The rental agreement was renewed on July 16, 2014 for a further period of five years. The rental agreement provides for a rent increase of 8% every year after July 15, 2015. The renewed agreement expires on July 15, 2018; however, this rental agreement (1,104 square meters at a monthly rental of RMB 39, or approximately $6) was terminated on July 31, 2015. TTCQ identified a new tenant and signed a new rental agreement (653 square meters at a monthly rental of RMB 39, or approximately $6) on August 1, 2015. This rental agreement provides for a rent increase of 5% every year on January 31, commencing with 2017 until the rental agreement expires on July 31, 2020. TTCQ signed a new rental agreement (451 square meters at a monthly rental of RMB 27, or approximately $4) on January 29, 2016. This rental agreement provides for a rent increase of 5% every year on January 29, commencing with 2017 until the rental agreement expires on January 29, 2019. Property purchased from MaoYe generated a rental income of $25 and $53 for the three and nine months ended March 31, 2016, respectively, and $29 and $87 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 March 31, 2016 published by the Monetary Authority of Singapore. TTCQ rented all of these commercial units to a third party until the agreement expired in January 2012. TTCQ then rented three of the eight commercial units to another party during the fourth quarter of fiscal year 2013 under a rental agreement that expired on March 31, 2014. Currently all the units are vacant and TTCQ is working with the developer to find a suitable buyer to purchase all the commercial units. TTCQ has yet to receive the title deed for these properties; however TTCQ has the vacancies in possession with the exception of two units, which are in the process of clarification. TTCQ is in the legal process to obtain the title deed, which is dependent on JiangHuai completing the entire project. In September 2014, TTCQ performed a valuation on one of the commercial units and its market value was higher than the carrying amount. As of the date of this report, there was no other valuation performed. Property purchased from JiangHuai did not generate any rental income during the three and nine months ended March 31, 2016 and 2015. Rental Properties III – FuLi In fiscal 2010, TTCQ entered into a Memorandum Agreement with Chongqing FuLi Real Estate Development Co. Ltd. (“FuLi”) to purchase two commercial properties totaling 311.99 square meters (“office space”) located in Jiang Bei District Chongqing. 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 $649 based on the exchange rate as of March 31, 2016 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 was executed, which expires on April 30, 2017. The new agreement carried an increase in rent by 20% in the first year. Thereafter the rent increases by approximately 8% 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 rental agreement was executed, which agreement was to expire on August 9, 2016. The agreement carried an increase in rent of approximately 21% in the first year. Thereafter the rent was to increase by approximately 6% for the subsequent year. The tenant of this unit had defaulted on payment of the quarterly rental due in August 2015, however the rental deposit is available to offset the outstanding rent. In early October 2015, TTCQ issued a legal letter to this tenant on the outstanding amounts, to which the tenant has not responded. As of the date of this report, the August 2014 rental agreement (161 square meters at a monthly rental of RMB 16, and approximately $2) was terminated. A new rental agreement with a new tenant (161 square meters at a monthly rental of RMB 14, or approximately $2) was signed on October 21, 2015. This latest rental agreement provides for a rent increase of 6% after the first year, commencing from the year 2016 until the rental agreement expires on October 20, 2017. Property purchased from FuLi generated a rental income of $8 and $31 for the three and nine months ended March 31, 2016, respectively, while it generated a rental income of $14 and $43, respectively, for the same periods in the last fiscal year. Penang Property I During the fourth quarter of 2015, the operations in Malaysia planned to sell its factory building in Penang, Malaysia. In accordance to ASC Topic 360, the property was reclassified from investment property, which had a net book value of RM 371, or approximately $98, to assets held for sale since there was an intention to sell the factory building. In May 2015, TTM was approached by a potential buyer to purchase the factory building. On September 14, 2015, application to sell the property was rejected by PDC. The rejection was based on the business activity of the purchaser not suitable to the industry that is being promoted on the said property. PDC made an offer to purchase the property, which was not at the expected value and the offer expired on March 28, 2016. However, management is still actively looking for a suitable buyer. As of March 31, 2016 the net book value was RM 369, or approximately $94. Summary Total rental income for all investment properties (Property I, II and III) in China was $33 and $83 for the three and nine months ended March 31, 2016, respectively, and was $43 and $130, respectively, for the same periods in the last fiscal year. Depreciation expenses for all investment properties in China were $25 and $77 for the three and nine months ended March 31, 2016, respectively, and were $27 and $81, respectively, for the same periods in the last fiscal year . |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | Other assets consisted of the following: Mar. 31, 2016 June 30, (Unaudited) 2015 Down-payment for purchase of investment properties in China $ 1,578 $ 1,645 Down-payment for purchase of property, plant and equipment 408 31 Deposit for rental and utilities 137 147 $ 2,123 $ 1,823 |
LINES OF CREDIT
LINES OF CREDIT | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
LINES OF CREDIT (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Carrying value of the CompanyÂ’s lines of credit approximates its fair value because the interest rates associated with the lines of credit are adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. The CompanyÂ’s credit rating provides it with readily and adequate access to funds in global markets. As of March 31, 2016, 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., Lines of Credit Ranging from 1.9% to 5.6% - $ 5,736 $ 4,415 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 803 $ 803 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 1,237 $ 1,237 The CompanyÂ’s credit rating provides it with readily and adequate access to funds in global markets. As of June 30, 2015, the Company had certain lines of credit that are collateralized by restricted deposits. Entity with Type of Interest Expiration Credit Unused Facility Facility Rate Date Limitation Credit Trio-Tech International Pte. Ltd., Lines of Credit Ranging from 1.9% to 5.6% - $ 7,422 $ 6,161 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 396 $ 79 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 1,289 $ 1,289 On April 10, 2015, Trio-Tech Tianjin signed an agreement with a bank for an Accounts Receivable Financing facility for RMB 8,000, or approximately $1,289, wherein interest is charged at the bankÂ’s lending rate plus a floating interest rate. The effective interest rate is 130% of the bankÂ’s lending rate. The financing facility was set up to facilitate the growing testing operations in our Tianjin operations in China. The immediate holding company, Trio-Tech International Pte. Ltd., acted as the guarantor for this bank facility. The bank account for this facility was set up on August 24, 2015. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Mar. 31, 2016 | |
Accrued Expenses | |
ACCRUED EXPENSES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Accrued expenses consisted of the following: Mar.31, 2016 (Unaudited) June 30, 2015 Payroll and related costs $ 1,120 $ 1,513 Commissions 62 52 Customer deposits 48 41 Legal and audit 257 244 Sales tax 98 131 Utilities 111 129 Warranty 63 109 Accrued purchase of materials and property, plant and equipment 122 430 Provision for re-instatement of leasehold properties 332 422 Other accrued expenses 326 243 Currency translation effect (77 ) (230 ) Total $ 2,462 $ 3,084 |
WARRANTY ACCRUAL
WARRANTY ACCRUAL | 9 Months Ended |
Mar. 31, 2016 | |
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 generally one year or the warranty period agreed upon with the customer. The Company estimates the warranty costs based on the historical rates of warranty returns. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Mar. 31, 2016 (Unaudited) June 30, 2015 Beginning $ 103 $ 60 Additions charged to cost and expenses 38 114 Utilization/ reversal (78 ) (65 ) Currency translation effect (2 ) (6 ) Ending $ 61 $ 103 |
BANK LOANS PAYABLE
BANK LOANS PAYABLE | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
BANK LOANS PAYABLE (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Bank loans payable consisted of the following: Mar. 31, 2016 (Unaudited) June 30, 2015 Note payable denominated in RM to a commercial bank for expansion plans in Malaysia, maturing in August 2024, bearing interest at the bankÂ’s prime rate (7.4% at March 31, 2016 and June 30, 2015) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with a carrying value of $2,984 and $3,144, as at March 31, 2016 and June 30, 2015, respectively. $ 2,015 $ 2,218 Note payable denominated in U.S. dollars to a financial institution for working capital plans in Singapore and its subsidiaries, maturing in April 2017, bearing interest at the bankÂ’s prime rate plus 1.50% (4.1% to 6.9% at March 31, 2016 and June 30, 2015) with monthly payments of principal plus interest through April 2017. This note payable is secured by plant and equipment with a carrying value of $354 and $357, as at March 31, 2016 and June 30, 2015, respectively. 193 326 Current portion (374 ) (346 ) Long term portion of bank loans payable $ 1,834 $ 2,198 Future minimum payments (excluding interest) as at March 31, 2016 were as follows: 2016 $ 374 2017 221 2018 217 2019 229 2020 242 Thereafter 925 Total obligations and commitments $ 2,208 Future minimum payments (excluding interest) as at June 30, 2015 were as follows: 2016 $ 346 2017 322 2018 183 2019 193 2020 203 Thereafter 1,297 Total obligations and commitments $ 2,544 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2016 | |
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 RM145, or approximately $37 based on the exchange rate as on March 31, 2016 published by the Monetary Authority of Singapore, as compared to RM1,020, or approximately $274 based on the exchange rate as on March 31, 2015 published by the Monetary Authority of Singapore. Trio-Tech (Tianjin) Co. Ltd. in China has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RMB 2,192, or approximately $339 based on the exchange rate as of March 31, 2016 published by the Monetary Authority of Singapore, as compared to RMB 122, or approximately $20 based on the exchange rate as of March 31, 2015 published by the Monetary Authority of Singapore. Trio-Tech International Pte. Ltd. in Singapore has not made any capital commitments for the purchase of equipment and other related infrastructure as of March 31, 2016, as compared to SGD 61, or approximately $44 based on the exchange rate as of March 31, 2015 published by the Monetary Authority of Singapore. The Company leases office space and equipment under non-cancelable capital and operating leases with various expiration dates. The lease term begins on the date of the initial possession of the leased property for the purposes of recognizing lease expense on a straight-line basis over the term of the lease. The Company does not assume renewals in the determination of the lease terms unless the renewals are deemed to be reasonably assured at lease inception. The Company is, from time to time, the subject of litigation claims and assessments arising out of matters occurring in its normal business operations. In the opinion of management, resolution of these matters will not have a material adverse effect on the CompanyÂ’s financial statements. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
BUSINESS SEGMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | In fiscal year 2016, the Company operates in four segments; the testing service industry (which performs structural and electronic tests of semiconductor devices), the designing and manufacturing of equipment (which equipment tests the structural integrity of integrated circuits and other products), distribution of various products from other manufacturers in Singapore and Southeast Asia and the real estate segment in China. The real estate segment did not generate other income for the three and nine months ended March 31, 2016 as compared to nil and $68, 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 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 $247 and $424 for the three and nine months ended March 31, 2016, respectively, as compared to $1,109 and $1,251, 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 income or loss after including the corporate expenses allocated to the segments, which gets eliminated in the consolidation. The following segment information is un-audited for the nine months ended March 31: Business Segment Information: Nine months Operating Depr. Ended Net Income / Total and Capital Mar. 31, Revenue (Loss) Assets Amort. Expenditures Manufacturing 2016 $ 10,884 $ 358 $ 7,429 $ 150 $ 32 2015 $ 9,754 $ (768 ) $ 5,102 $ 110 $ 28 Testing Services 2016 11,106 469 20,454 1,147 854 2015 13,829 1,864 22,067 1,551 1,426 Distribution 2016 3,566 182 664 - 1 2015 1,820 (28 ) 774 - 6 Real Estate 2016 83 (89 ) 3,445 78 - 2015 130 (109 ) 3,666 81 - Fabrication * 2016 - - 29 - - Services 2015 - - 31 - - Corporate & 2016 - 30 69 - - Unallocated 2015 - (173 ) 70 - - Total Company 2016 $ 25,639 $ 950 $ 32,090 $ 1,375 $ 887 2015 $ 25,533 $ 786 $ 31,710 $ 1,742 $ 1,460 The following segment information is un-audited for the three months ended March 31: Business Segment Information: Three months Operating Depr. Ended Net Income / Total and Capital Mar. 31, Revenue (Loss) Assets Amort. Expenditures Manufacturing 2016 $ 4,468 $ (13 ) $ 7,429 $ 43 $ 13 2015 $ 3,359 $ (33 ) $ 5,102 $ 40 $ 5 Testing Services 2016 3,622 109 20,454 370 559 2015 4,138 590 22,067 486 556 Distribution 2016 1,232 112 664 - 1 2015 1,003 (28 ) 774 - - Real Estate 2016 33 (19 ) 3,445 25 - 2015 43 (18 ) 3,666 27 - Fabrication * 2016 - - 29 - - Services 2015 - - 31 - - Corporate & 2016 - 134 69 - - Unallocated 2015 - (39 ) 70 - - Total Company 2016 $ 9,355 $ 323 $ 32,090 $ 438 $ 573 2015 $ 8,543 $ 472 $ 31,710 $ 553 $ 561 * Fabrication services is a discontinued operation (Note 19). |
OTHER INCOME, NET
OTHER INCOME, NET | 9 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | Other income / (expenses) consisted of the following: Three Months Ended Nine Months Ended Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2016 2015 2016 2015 Unaudited Unaudited Unaudited Unaudited Investment income deemed interest income $ - $ - $ - $ 68 Allowance for doubtful loan receivables - - - (68 ) Interest income 8 8 15 14 Other rental income 24 26 73 78 Exchange loss (218 ) (101 ) (126 ) (171 ) Other miscellaneous income 89 70 167 136 Total $ (97 ) $ 3 $ 129 $ 57 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 |
INCOME TAX
INCOME TAX | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
INCOME TAX | The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgment is required in determining the provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws. The statute of limitations, in general, is open for years 2004 to 2015 for tax authorities in those jurisdictions to audit or examine income tax returns. The Company is under annual review by the tax authorities of the respective jurisdiction to which the subsidiaries belong. The 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 records a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce our deferred tax assets to the net amount which is believed more likely than not to be realized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Although the Company believes that the uncertain tax positions are adequately reserved, no assurance is provided that the final tax outcome of these matters may not be materially different. Adjustments are made to these reserves when facts and circumstances change, such as the closing of tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences may affect the provision for income taxes in the period in which such determination is made and could have a material impact on the financial condition and operating results. The provision for income taxes includes the effect of any reserves that the Company believes are appropriate, as well as the related net interest and penalties. The income tax expenses included with-holding tax held by related companies that were not recoverable from the Inland Revenue Board in Singapore. 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 March 31, 2016 and June 30, 2015. |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 9 Months Ended |
Mar. 31, 2016 | |
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, the Company has classified the non-controlling interest as a component of stockholdersÂ’ 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 stockholdersÂ’ 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: Mar. 31, 2016 June 30, 2015 Beginning balance $ 1,736 $ 1,732 Net income 156 303 Dividend declared by subsidiary company (117 ) - Translation adjustment (123 ) (299 ) Ending balance $ 1,652 $ 1,736 |
DISCONTINUED OPERATION AND CORR
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN | 9 Months Ended |
Mar. 31, 2016 | |
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 five fiscal years since it commenced, and the cash flow was minimal for the past five years. The Company established a restructuring plan to close the fabrication services operation, and in accordance with ASC Topic 205-20, Presentation of Financial Statement Discontinued Operations (“ASC Topic 205-20”) 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 $75 and $84, respectively, as at March 31, 2016 and 2015. The Indonesia operation had no collection for accounts receivable as at March 31, 2016 and 2015. The Company’s fabrication operation in Indonesia is in the process of winding down the operations. 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 had an outstanding balance of accounts payable of $49 and accounts receivable of $1 as at March 31, 2016 and an outstanding balance of accounts payable of $38 and accounts receivable of $2 as at March 31, 2015. The discontinued operations in Shanghai and in Indonesia incurred general and administrative expenses of $5 and $8 for the three and nine months ended March 31, 2016, respectively, and $4 and $22, respectively, for the three and nine months ended March 31, 2015. 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: Three Months Ended Nine Months Ended Mar. 31, 2016 Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2015 Unaudited Unaudited Unaudited Unaudited Revenue $ - $ - $ - $ - Cost of sales - - - - Gross margin - - - - Operating expenses: General and administrative 5 4 8 22 Total 5 4 8 22 Loss from discontinued operations (5 ) (4 ) (8 ) (22 ) Other income / (expenses) 4 (9 ) 3 29 Income / (loss) from discontinued operations $ (1 ) $ (13 ) $ (5 ) $ 7 The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of the discontinued operation was immaterial. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Mar. 31, 2016 | |
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. As of March 31, 2016, there were 505,000 stock options outstanding, of which 390,000 stock options with exercise prices ranging from $3.10 to $3.81 per share were excluded in the computation of diluted EPS because they were anti-dilutive. As of March 31, 2015, there were 430,000 stock options outstanding with exercise prices ranging from $3.10 to $4.35 per share which 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: Three Months Ended Nine Months Ended Mar. 31, 2016 (Unaudited) Mar. 31, 2015 (Unaudited) Mar. 31, 2016 (Unaudited) Mar. 31, 2015 (Unaudited) Income / (loss) attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ 155 $ 207 $ 607 $ 166 Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax (5 ) (8 ) (78 ) 3 Net Income / (Loss) Attributable to Trio-Tech International Common Shareholders $ 150 $ 199 $ 599 $ 169 Basic and diluted earnings / (loss) per share from continuing operations attributable to Trio-Tech International $ 0.04 0.06 0.17 0.05 Basic and diluted earnings per share from discontinued operations attributable to Trio-Tech International - - - - Basic and Diluted Earnings / (Loss) per Share from Net Income / (Loss) Attributable to Trio-Tech International $ 0.04 $ 0.06 $ 0.17 $ 0.05 Weighted average number of common shares outstanding - basic 3,563 3,513 3,563 3,513 Dilutive effect of stock options 13 16 12 41 Number of shares used to compute earnings per share - diluted 3,576 3,529 3,575 3,554 |
STOCK OPTIONS
STOCK OPTIONS | 9 Months Ended |
Mar. 31, 2016 | |
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: Nine Months Ended Mar. 31, 2016 Year Ended June 30, 2015 Expected volatility 60.41% to 104.94% 71.44% to 104.94% Risk-free interest rate 0.3% to 1.05% 0.30% to 0.78% Expected life (years) 2.50 – 3.25 2.50 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 nine months ended March 31, 2016. 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 2007 Employee Stock Option Plan The Company’s 2007 Employee Plan permits the grant of stock options to its employees covering up to an aggregate of 600,000 shares of Common Stock. Under the 2007 Employee Plan, all options must be granted with an exercise price of not less than fair value as of the grant date and the options granted must be exercisable within a maximum of ten years after the date of grant, or such lesser period of time as is set forth in the stock option agreements. The options may be exercisable (a) immediately as of the effective date of the stock option agreement granting the option, or (b) in accordance with a schedule related to the date of the grant of the option, the date of first employment, or such other date as may be set by the Compensation Committee. Generally, options granted under the 2007 Employee Plan are exercisable within five years after the date of grant, and vest over the period as follows: 25% vesting on the grant date and the remaining balance vesting in equal installments on the next three succeeding anniversaries of the grant date. The share-based compensation will be recognized in terms of the grade method on a straight-line basis for each separately vesting portion of the award. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2007 Employee Plan). On March 21, 2016, the Company granted options to purchase 40,000 shares of its Common Stock to employee directors pursuant to the 2007 Employee Plan during the nine months ended March 31, 2016. The Company recognized stock-based compensation expenses of $2 in the nine months ended March 31, 2016 under the 2007 Employee Plan. The balance of unamortized stock-based compensation of $5 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. No stock options were exercised during the three and nine months ended March 31, 2016. The weighted-average remaining contractual term for non-vested options was 4.13 years. There were 271,875 shares of Common Stock available for grant under the 2007 Employee Plan. The Company did not grant any stock options pursuant to the 2007 Employee Plan during the nine months ended March 31, 2015. The Company recognized stock-based compensation expenses of $15 in the nine months ended March 31, 2015 under the 2007 Employee Plan. The balance of unamortized stock-based compensation of $12 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. No stock options were exercised during the three and nine months ended March 31, 2015. The weighted-average remaining contractual term for non-vested options was 3.69 years. As of March 31, 2016, there were vested employee stock options that were exercisable covering a total of 51,250 shares of Common Stock. The weighted-average exercise price was $3.28 and the weighted average contractual term was 3.07 years. The total fair value of vested and outstanding employee stock options as of March 31, 2016 was $168. As of March 31, 2015, 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 1.53 years. The total fair value of vested and outstanding employee stock options as of March 31, 2015 was $457. A summary of option activities under the 2007 Employee Plan during the nine months ended March 31, 2016 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2015 130,000 $ 3.93 1.57 $ - Granted 40,000 3.26 4.97 4 Exercised - - - - Forfeited or expired (80,000 ) (4.35 ) - - Outstanding at March 31, 2016 90,000 $ 3.26 3.67 $ - Exercisable at March 31, 2016 51,250 $ 3.28 3.07 $ - A summary of option activities under the 2007 Employee Plan during the nine months ended March 31, 2015 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2014 130,000 $ 3.93 2.57 $ 13 Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2015 130,000 $ 3.93 1.82 $ - Exercisable at March 31, 2015 112,500 $ 4.06 1.53 $ - A summary of the status of the Company’s non-vested employee stock options during the nine months ended March 31, 2016 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2015 17,500 $ 3.10 Granted 40,000 3.26 Vested (18,750 ) (3.26 ) Forfeited - - Non-vested at March 31, 2016 38,750 $ 3.20 A summary of the status of the Company’s non-vested employee stock options during the nine months ended March 31, 2015 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2014 26,250 $ 1.69 Granted - - Vested (8,750 ) (1.69 ) Forfeited - - Non-vested at March 31, 2015 17,500 $ 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 March 21, 2016, the Company granted options to purchase 150,000 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 150,000 shares of the Company’s Common Stock was approximately $489 based on the fair value of $3.26 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 March 31, 2016. The Company recognized stock-based compensation expenses of $42 in the nine months ended March 31, 2016 under the 2007 Directors Plan. No stock options were exercised during the nine months ended March 31, 2016. There were 80,000 shares of Common Stock available for grant under the 2007 Directors Plan. On October 5, 2015, the Company granted options to purchase 50,000 shares of its Common Stock to directors pursuant to the 2007 Directors Plan with an exercise price equal to the fair market value of Common Stock (as defined under the 2007 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) at the date of grant. The fair value of the options granted to purchase 50,000 shares of the Company’s Common Stock was approximately $51 based on the fair value of $2.69 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, 2015. The Company recognized stock-based compensation expenses of $55 in the six months ended December 31, 2015 under the 2007 Directors Plan. No stock options were exercised during the nine months ended December 31, 2015. No stock options were exercised during the six months ended December 31, 2015. 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 March 31, 2015. The Company recognized stock-based compensation expenses of $97 in the nine months ended March 31, 2015 under the 2007 Directors Plan. No stock options were exercised during the nine months ended March 31, 2015. No stock options were exercised during the nine months ended March 31, 2015. A summary of option activities under the 2007 Directors Plan during the nine months ended March 31, 2016 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2015 365,000 $ 3.65 1.99 $ 53 Granted 200,000 3.12 3.54 - Exercised - - - - Forfeited or expired (150,000 ) (4.35 ) - - Outstanding at March 31, 2016 415,000 3.14 4.97 91 Exercisable at March 31, 2016 415,000 3.14 4.97 91 A summary of option activities under the 2007 Directors Plan during the nine months ended March 31, 2015 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2014 315,000 $ 3.62 2.63 $ 82 Granted 50,000 3.81 - - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2015 365,000 $ 3.64 2.24 $ 30 Exercisable at March 31, 2015 365,000 $ 3.64 2.24 $ 30 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | In accordance with ASC Topic 825 and 820, the following presents assets and liabilities measured and carried at fair value and classified by level of fair value measurement hierarchy: There were no transfers between Levels 1 and 2 during the three and nine months ended March 31, 2016 and 2015. Term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments. Loans receivable from property development projects (Level 3) – The carrying amount approximates fair value because of the short-term nature. Restricted term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments. Lines of credit (Level 3) – The carrying value of the lines of credit approximates fair value due to the short-term nature of the obligations. Bank loans payable (Level 3) – The carrying value of the Company’s bank loan payables approximates its fair value as the interest rates associated with long-term debt is adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. |
ORGANIZATION AND BASIS OF PRE30
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
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 and 2016 TTI carried its business in four segments and 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. (49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) 100% Bangkok, Thailand Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) 55% Penang and Selangor, Malaysia Trio-Tech (Kuala Lumpur) Sdn. Bhd. 55% Selangor, Malaysia (100% owned by Trio-Tech Malaysia Sdn. Bhd.) Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.) 76% Selangor, Malaysia Trio-Tech (Suzhou) Co. Ltd. * 100% Suzhou, China Trio-Tech (Shanghai) Co. Ltd. * (Dormant) 100% Shanghai, China Trio-Tech (Chongqing) Co. Ltd. * 100% Chongqing, China SHI International Pte. Ltd. (Dormant) (55% owned by Trio-Tech International Pte. Ltd) 55% Singapore PT SHI Indonesia (Dormant) (100% owned by SHI International Pte. Ltd.) 55% Batam, Indonesia Trio-Tech (Tianjin) Co. Ltd. * 100% Tianjin, China * 100% owned by Trio-Tech International Pte. Ltd, The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. All significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements are presented in U.S. dollars. The accompanying condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. Operating results for the nine months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2016. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report for the fiscal year ended June 30, 2015. The Company’s operating results are presented based on the translation of foreign currencies using the respective quarter’s average exchange rate. Strengthening of the U.S. dollar relative to the foreign currencies caused the translation difference during the current year as compared to the same period of last year, affecting the revenue and operating profitability, which negatively impacted the Company’s results. |
New Accounting Pronouncements | The amendments in Accounting Standards Update (“ASU”) 2016-09 ASC Topic 718: Compensation – Stock Compensation The amendments in ASU 2016-02 ASC Topic 842: Leases The amendments in ASU 2015-17 eliminate the current requirement for organizations to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as non-current. For a public entity, the amendments in ASU 2015-17 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is permitted and the Company has adopted this ASU and there is no significant effect on the Company’s consolidated financial position or results of operations. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. The amendments in ASU 2015-14 ASC Topic 606: Deferral of the Effective Date The Financial Accounting Standards Board (“FASB”) has issued converged standards on revenue recognition. Specifically, the Board has issued ASU 2014-09, ASC Topic 606. ASU 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). ASU 2014-09 will supersede the revenue recognition requirements in ASC Topic 605, Revenue Recognition Revenue Recognition—Construction-Type and Production-Type Contracts Property, Plant, and Equipment Intangibles—Goodwill and Other The amendments in ASU 2015-11 ASC Topic 330: Simplifying the Measurement of Inventory FASB amended ASU 2015-07 ASC Topic 820: Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent) The amendments in ASU 2015-06 ASC Topic 260: Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions The amendments in ASU 2015-02 ASC Topic 810: Amendments to the Consolidation Analysis The amendments in ASU 2015-01 eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items FASB amended ASU 2014-15 Subtopic 205-40, Presentation of Financial Statements – Going Concern The FASB has issued ASU No. 2014-08, ASC Topic 205 Presentation of Financial Statements Property, Plant, and Equipment Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity Other new pronouncements issued but not yet effective are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
ORGANIZATION AND BASIS OF PRE31
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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. (49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) 100% Bangkok, Thailand Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) 55% Penang and Selangor, Malaysia Trio-Tech (Kuala Lumpur) Sdn. Bhd. 55% Selangor, Malaysia (100% owned by Trio-Tech Malaysia Sdn. Bhd.) Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.) 76% Selangor, Malaysia Trio-Tech (Suzhou) Co. Ltd. * 100% Suzhou, China Trio-Tech (Shanghai) Co. Ltd. * (Dormant) 100% Shanghai, China Trio-Tech (Chongqing) Co. Ltd. * 100% Chongqing, China SHI International Pte. Ltd. (Dormant) (55% owned by Trio-Tech International Pte. Ltd) 55% Singapore PT SHI Indonesia (Dormant) (100% owned by SHI International Pte. Ltd.) 55% Batam, Indonesia Trio-Tech (Tianjin) Co. Ltd. * 100% Tianjin, China |
ACCOUNTS RECEIVABLE AND ALLOW32
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Accounts Receivable And Allowance For Doubtful Accounts Tables | |
Changes in the allowance for doubtful accounts | Mar. 31, 2016 (Unaudited) June 30, 2015 Beginning $ 313 $ 438 Additions charged to expenses 2 84 Recovered/ written-off (6 ) (180 ) Currency translation effect (11 ) (29 ) Ending $ 298 $ 313 |
LOAN RECEIVABLE FROM PROPERTY D
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Loan Receivable From Property Development Projects Tables | |
Companys loans receivable from property development projects | The following table presents Trio-Tech Chongqing’s (“TTCQ”) loans receivable from property development projects in China as of March 31, 2016. The exchange rate is based on the historical rate published by the Monetary Authority of Singapore as on March 31, 2015, since the net loans receivable was “nil” as at March 31, 2016. Loan Expiry Loan Amount Loan Amount Date (RMB) (U.S. Dollars) Short-term loan receivables JiangHuai (Project - Yu Jin Jiang An) May 31, 2013 2,000 325 Less: allowance for doubtful receivables (2,000 ) (325 ) Net loan receivable from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment property (5,000 ) (814 ) Net loan receivable from property development projects - - The following table presents TTCQ’s loans receivable from property development projects in China as of June 30, 2015. The exchange rate is based on the historical rate published by the Monetary Authority of Singapore as on March 31, 2015, since the net loans receivable was “nil” as at June 30, 2015. Loan Expiry Loan Amount Loan Amount Date (RMB) (U.S. Dollars) Short-term loan receivables Investment in JiangHuai (Project - Yu Jin Jiang An) May 31, 2013 2,000 325 Less: allowance for doubtful receivables (2,000 ) (325 ) Net loan receivable from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment property (5,000 ) (814 ) Net loan receivable from property development projects - - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Inventories Tables | |
Inventories | Mar. 31, 2016 June 30, (Unaudited) 2015 Raw materials $ 932 $ 1,038 Work in progress 891 611 Finished goods 279 348 Less: provision for obsolete inventory (691 ) (764 ) Currency translation effect 3 (92 ) $ 1,414 $ 1,141 |
Changes in provision for obsolete inventory | Mar. 31, 2016 June 30, (Unaudited) 2015 Beginning $ 764 $ 844 Additions charged to expenses 14 67 Usage - disposition (84 ) (103 ) Currency translation effect (3 ) (44 ) Ending $ 691 $ 764 |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016. The exchange rate is based on the exchange rate as of March 31, 2016 published by the Monetary Authority of Singapore. Investment Investment Amount Investment Amount Date (RMB) (U.S. Dollars) Purchase of Property I – MaoYe Jan 04, 2008 5,554 894 Purchase of Property II – JiangHuai Jan 06, 2010 3,600 580 Purchase of Property III – FuLi Apr 08, 2010 4,025 649 Currency translation - (86 ) Gross investment in rental properties 13,179 2,037 Accumulated depreciation on rental properties (4,114 ) (635 ) Net investment in properties – China 9,065 1,402 The following table presents the Company’s investment properties in China as of June 30, 2015. The exchange rate is based on the exchange rate as of June 30, 2015 published by the Monetary Authority of Singapore. Investment Investment Amount Investment Amount Date (RMB) (U.S. Dollars) Purchase of Property I – MaoYe Jan 04, 2008 5,554 894 Purchase of Property II – JiangHuai Jan 06, 2010 3,600 580 Purchase of Property III – FuLi Apr 08, 2010 4,025 648 Currency translation - 1 Gross investment in rental properties 13,179 2,123 Accumulated depreciation on rental properties (3,619 ) (583 ) Net investment in properties – China 9,560 1,540 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other assets | Mar. 31, 2016 June 30, (Unaudited) 2015 Down-payment for purchase of investment properties in China $ 1,578 $ 1,645 Down-payment for purchase of property, plant and equipment 408 31 Deposit for rental and utilities 137 147 $ 2,123 $ 1,823 |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Lines Of Credit Tables | |
Lines of credit | The CompanyÂ’s credit rating provides it with readily and adequate access to funds in global markets. As of March 31, 2016, 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., Lines of Credit Ranging from 1.9% to 5.6% - $ 5,736 $ 4,415 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 803 $ 803 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 1,237 $ 1,237 The CompanyÂ’s credit rating provides it with readily and adequate access to funds in global markets. As of June 30, 2015, the Company had certain lines of credit that are collateralized by restricted deposits. Entity with Type of Interest Expiration Credit Unused Facility Facility Rate Date Limitation Credit Trio-Tech International Pte. Ltd., Lines of Credit Ranging from 1.9% to 5.6% - $ 7,422 $ 6,161 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 396 $ 79 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 1,289 $ 1,289 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Accrued Expenses Tables | |
Accrued expenses | Mar.31, 2016 (Unaudited) June 30, 2015 Payroll and related costs $ 1,120 $ 1,513 Commissions 62 52 Customer deposits 48 41 Legal and audit 257 244 Sales tax 98 131 Utilities 111 129 Warranty 63 109 Accrued purchase of materials and property, plant and equipment 122 430 Provision for re-instatement of leasehold properties 332 422 Other accrued expenses 326 243 Currency translation effect (77 ) (230 ) Total $ 2,462 $ 3,084 |
WARRANTY ACCRUAL (Tables)
WARRANTY ACCRUAL (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Warranty Accrual Tables | |
Warranty liability | Mar. 31, 2016 (Unaudited) June 30, 2015 Beginning $ 103 $ 60 Additions charged to cost and expenses 38 114 Utilization/ reversal (78 ) (65 ) Currency translation effect (2 ) (6 ) Ending $ 61 $ 103 |
BANK LOANS PAYABLE (Tables)
BANK LOANS PAYABLE (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Bank Loans Payable Tables | |
Bank loans payable | Mar. 31, 2016 (Unaudited) June 30, 2015 Note payable denominated in RM to a commercial bank for expansion plans in Malaysia, maturing in August 2024, bearing interest at the bankÂ’s prime rate (7.4% at March 31, 2016 and June 30, 2015) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with a carrying value of $2,984 and $3,144, as at March 31, 2016 and June 30, 2015, respectively. $ 2,015 $ 2,218 Note payable denominated in U.S. dollars to a financial institution for working capital plans in Singapore and its subsidiaries, maturing in April 2017, bearing interest at the bankÂ’s prime rate plus 1.50% (4.1% to 6.9% at March 31, 2016 and June 30, 2015) with monthly payments of principal plus interest through April 2017. This note payable is secured by plant and equipment with a carrying value of $354 and $357, as at March 31, 2016 and June 30, 2015, respectively. 193 326 Current portion (374 ) (346 ) Long term portion of bank loans payable $ 1,834 $ 2,198 |
Future minimum payments | Future minimum payments (excluding interest) as at March 31, 2016 were as follows: 2016 $ 374 2017 221 2018 217 2019 229 2020 242 Thereafter 925 Total obligations and commitments $ 2,208 Future minimum payments (excluding interest) as at June 30, 2015 were as follows: 2016 $ 346 2017 322 2018 183 2019 193 2020 203 Thereafter 1,297 Total obligations and commitments $ 2,544 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Business Segments Tables | |
BUSINESS SEGMENTS | The following segment information is un-audited for the nine months ended March 31: Business Segment Information: Nine months Operating Depr. Ended Net Income / Total and Capital Mar. 31, Revenue (Loss) Assets Amort. Expenditures Manufacturing 2016 $ 10,884 $ 358 $ 7,429 $ 150 $ 32 2015 $ 9,754 $ (768 ) $ 5,102 $ 110 $ 28 Testing Services 2016 11,106 469 20,454 1,147 854 2015 13,829 1,864 22,067 1,551 1,426 Distribution 2016 3,566 182 664 - 1 2015 1,820 (28 ) 774 - 6 Real Estate 2016 83 (89 ) 3,445 78 - 2015 130 (109 ) 3,666 81 - Fabrication * 2016 - - 29 - - Services 2015 - - 31 - - Corporate & 2016 - 30 69 - - Unallocated 2015 - (173 ) 70 - - Total Company 2016 $ 25,639 $ 950 $ 32,090 $ 1,375 $ 887 2015 $ 25,533 $ 786 $ 31,710 $ 1,742 $ 1,460 The following segment information is un-audited for the three months ended March 31: Business Segment Information: Three months Operating Depr. Ended Net Income / Total and Capital Mar. 31, Revenue (Loss) Assets Amort. Expenditures Manufacturing 2016 $ 4,468 $ (13 ) $ 7,429 $ 43 $ 13 2015 $ 3,359 $ (33 ) $ 5,102 $ 40 $ 5 Testing Services 2016 3,622 109 20,454 370 559 2015 4,138 590 22,067 486 556 Distribution 2016 1,232 112 664 - 1 2015 1,003 (28 ) 774 - - Real Estate 2016 33 (19 ) 3,445 25 - 2015 43 (18 ) 3,666 27 - Fabrication * 2016 - - 29 - - Services 2015 - - 31 - - Corporate & 2016 - 134 69 - - Unallocated 2015 - (39 ) 70 - - Total Company 2016 $ 9,355 $ 323 $ 32,090 $ 438 $ 573 2015 $ 8,543 $ 472 $ 31,710 $ 553 $ 561 * Fabrication services is a discontinued operation (Note 19). |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other income | Three Months Ended Nine Months Ended Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2016 2015 2016 2015 Unaudited Unaudited Unaudited Unaudited Investment income deemed interest income $ - $ - $ - $ 68 Allowance for doubtful loan receivables - - - (68 ) Interest income 8 8 15 14 Other rental income 24 26 73 78 Exchange loss (218 ) (101 ) (126 ) (171 ) Other miscellaneous income 89 70 167 136 Total $ (97 ) $ 3 $ 129 $ 57 |
NON-CONTROLLING INTEREST (Table
NON-CONTROLLING INTEREST (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Non-controlling Interest Tables | |
Noncontrolling interest | Mar. 31, 2016 June 30, 2015 Beginning balance $ 1,736 $ 1,732 Net income 156 303 Dividend declared by subsidiary company (117 ) - Translation adjustment (123 ) (299 ) Ending balance $ 1,652 $ 1,736 |
DISCONTINUED OPERATION AND CO44
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Discontinued Operation And Corresponding Restructuring Plan Tables | |
Income / (loss) from discontinued operations | Three Months Ended Nine Months Ended Mar. 31, 2016 Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2015 Unaudited Unaudited Unaudited Unaudited Revenue $ - $ - $ - $ - Cost of sales - - - - Gross margin - - - - Operating expenses: General and administrative 5 4 8 22 Total 5 4 8 22 Loss from discontinued operations (5 ) (4 ) (8 ) (22 ) Other income / (expenses) 4 (9 ) 3 29 Income / (loss) from discontinued operations $ (1 ) $ (13 ) $ (5 ) $ 7 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share Tables | |
Reconciliation of the weighted average shares | Three Months Ended Nine Months Ended Mar. 31, 2016 (Unaudited) Mar. 31, 2015 (Unaudited) Mar. 31, 2016 (Unaudited) Mar. 31, 2015 (Unaudited) Income / (loss) attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ 155 $ 207 $ 607 $ 166 Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax (5 ) (8 ) (78 ) 3 Net Income / (Loss) Attributable to Trio-Tech International Common Shareholders $ 150 $ 199 $ 599 $ 169 Basic and diluted earnings / (loss) per share from continuing operations attributable to Trio-Tech International $ 0.04 0.06 0.17 0.05 Basic and diluted earnings per share from discontinued operations attributable to Trio-Tech International - - - - Basic and Diluted Earnings / (Loss) per Share from Net Income / (Loss) Attributable to Trio-Tech International $ 0.04 $ 0.06 $ 0.17 $ 0.05 Weighted average number of common shares outstanding - basic 3,563 3,513 3,563 3,513 Dilutive effect of stock options 13 16 12 41 Number of shares used to compute earnings per share - diluted 3,576 3,529 3,575 3,554 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Fair value weighted average assumptions | Nine Months Ended Mar. 31, 2016 Year Ended June 30, 2015 Expected volatility 60.41% to 104.94% 71.44% to 104.94% Risk-free interest rate 0.3% to 1.05% 0.30% to 0.78% Expected life (years) 2.50 – 3.25 2.50 |
2007 Employee Plan [Member] | |
Option activities | A summary of option activities under the 2007 Employee Plan during the nine months ended March 31, 2016 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2015 130,000 $ 3.93 1.57 $ - Granted 40,000 3.26 4.97 4 Exercised - - - - Forfeited or expired (80,000 ) (4.35 ) - - Outstanding at March 31, 2016 90,000 $ 3.26 3.67 $ - Exercisable at March 31, 2016 51,250 $ 3.28 3.07 $ - A summary of option activities under the 2007 Employee Plan during the nine months ended March 31, 2015 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2014 130,000 $ 3.93 2.57 $ 13 Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2015 130,000 $ 3.93 1.82 $ - Exercisable at March 31, 2015 112,500 $ 4.06 1.53 $ - |
Company's non-vested employee stock options | A summary of the status of the CompanyÂ’s non-vested employee stock options during the nine months ended March 31, 2016 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2015 17,500 $ 3.10 Granted 40,000 3.26 Vested (18,750 ) (3.26 ) Forfeited - - Non-vested at March 31, 2016 38,750 $ 3.20 A summary of the status of the CompanyÂ’s non-vested employee stock options during the nine months ended March 31, 2015 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2014 26,250 $ 1.69 Granted - - Vested (8,750 ) (1.69 ) Forfeited - - Non-vested at March 31, 2015 17,500 $ 1.69 |
2007 Directors Equity Incentive Plan [Member] | |
Option activities | A summary of option activities under the 2007 Directors Plan during the nine months ended March 31, 2016 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2015 365,000 $ 3.65 1.99 $ 53 Granted 200,000 3.12 3.54 - Exercised - - - - Forfeited or expired (150,000 ) (4.35 ) - - Outstanding at March 31, 2016 415,000 3.14 4.97 91 Exercisable at March 31, 2016 415,000 3.14 4.97 91 A summary of option activities under the 2007 Directors Plan during the nine months ended March 31, 2015 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2014 315,000 $ 3.62 2.63 $ 82 Granted 50,000 3.81 - - Exercised - - - - Forfeited or expired - - - - Outstanding at March 31, 2015 365,000 $ 3.64 2.24 $ 30 Exercisable at March 31, 2015 365,000 $ 3.64 2.24 $ 30 |
ORGANIZATION AND BASIS OF PRE47
ORGANIZATION AND BASIS OF PRESENTATION (Details) | Mar. 31, 2016 |
Express Test Corporation (Dormant) | |
Ownership | 100.00% |
Trio-Tech Reliability Services (Dormant) | |
Ownership | 100.00% |
KTS Incorporated, dba Universal Systems (Dormant) | |
Ownership | 100.00% |
European Electronic Test Centre (Operation ceased on November 1, 2005) | |
Ownership | 100.00% |
Trio-Tech International Pte. Ltd | |
Ownership | 100.00% |
Universal (Far East) Pte. Ltd | |
Ownership | 100.00% |
Trio-Tech International (Thailand) Co. Ltd | |
Ownership | 100.00% |
Trio-Tech (Bangkok) Co. Ltd. (49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) | |
Ownership | 100.00% |
Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) | |
Ownership | 55.00% |
Trio-Tech (Kuala Lumpur) Sdn. Bhd. (100% owned by Trio-Tech Malaysia Sdn. Bhd.) | |
Ownership | 55.00% |
Prestal Enterprise [Member] | |
Ownership | 76.00% |
Trio-Tech (Suzhou) Co. Ltd. | |
Ownership | 100.00% |
Trio-Tech (Shanghai) Co. Ltd. | |
Ownership | 100.00% |
Trio-Tech (Chongqing) Co. Ltd. SHI International Pte. Ltd. | |
Ownership | 100.00% |
SHI International [Member] | |
Ownership | 55.00% |
PT SHI Indonesia (100% owned by SHI International Pte. Ltd) | |
Ownership | 55.00% |
Trio-Tech (Tianjin) Co. Ltd. | |
Ownership | 100.00% |
ORGANIZATION AND BASIS OF PRE48
ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Jun. 30, 2015 | |
Accounting Policies [Abstract] | ||
Date of incorporation | Jan. 1, 1958 | |
State of incorporation | California | |
Business segments | 4 | 4 |
ACCOUNTS RECEIVABLE AND ALLOW49
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Jun. 30, 2015 | |
Notes to Financial Statements | ||
Beginning | $ 313 | $ 438 |
Additions charged to expenses | 2 | 84 |
Recovered / written-off | (6) | (180) |
Currency translation effect | (11) | (29) |
Ending | $ 298 | $ 313 |
LOANS RECEIVABLE FROM PROPERT50
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Jiang Huai [Member] | ||
Short-term loan receivables | ||
Short-term | $ 325 | $ 325 |
Less: allowance for doubtful receivables | (325) | (325) |
Jun Zhou Zhi Ye [Member] | ||
Long-term loan receivables | ||
Long-term | 814 | 814 |
Less: transfer - down-payment for purchase of property | $ (814) | $ (814) |
Long-term loan receivables, net | ||
Yuan RMB | Jiang Huai [Member] | ||
Short-term loan receivables | ||
Short-term | $ 2,000 | $ 2,000 |
Less: allowance for doubtful receivables | (2,000) | (2,000) |
Yuan RMB | Jun Zhou Zhi Ye [Member] | ||
Long-term loan receivables | ||
Long-term | 5,000 | 5,000 |
Less: transfer - down-payment for purchase of property | $ (5,000) | $ (5,000) |
Long-term loan receivables, net |
LOANS RECEIVABLE FROM PROPERT51
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2015 | |
Jiang Huai [Member] | ||||
Short-term Loan receivable | $ 325 | $ 325 | ||
Impairment charge | $ 325 | |||
Allowance for doubtful receivable | 325 | |||
Jun Zhou Zhi Ye [Member] | ||||
Long-term Loan receivable | 814 | 814 | ||
Other income | $ 68 | |||
Allowance for doubtful interest receivables | 68 | |||
Yuan RMB | Jiang Huai [Member] | ||||
Short-term Loan receivable | 2,000 | 2,000 | ||
Yuan RMB | Jun Zhou Zhi Ye [Member] | ||||
Long-term Loan receivable | $ 5,000 | $ 5,000 | ||
Other income | $ 417 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Notes to Financial Statements | |||
Raw materials | $ 932 | $ 1,038 | |
Work in progress | 891 | 611 | |
Finished goods | 279 | 348 | |
Less: provision for obsolete inventory | (691) | (764) | $ (844) |
Currency translation effect | 3 | (92) | |
Inventory net | $ 1,414 | $ 1,141 |
INVENTORIES (Details 1)
INVENTORIES (Details 1) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Jun. 30, 2015 | |
Notes to Financial Statements | ||
Beginning | $ 764 | $ 844 |
Additions charged to expenses | 14 | 67 |
Usage - disposition | (84) | (103) |
Currency translation effect | (3) | (44) |
Ending | $ 691 | $ 764 |
ASSETS HELD FOR SALE (Details N
ASSETS HELD FOR SALE (Details Narrative) - Property, Plant and Equipment [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Assets held for sale, net bok value | $ 94 | $ 98 |
Ringgit RM | ||
Assets held for sale, net bok value | $ 369 | $ 371 |
INVESTMENTS (Details Narrative)
INVESTMENTS (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Oct. 02, 2013 | Jun. 30, 2014 | Oct. 14, 2014 | Jul. 02, 2014 | May. 30, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Jan. 01, 2014 | |
Jia Sheng Jun Zhou Zhi [Member] | ||||||||
Net investment | $ 1,606 | |||||||
Fee agreement | 1,606 | |||||||
Cash offset Received | 803 | |||||||
Investment reduced | 22 | |||||||
Carrying value of investment | $ 781 | |||||||
Acquisition percentage | 10.00% | |||||||
Installment payment amount outstanding | $ 326 | |||||||
Long term loan receivable | 814 | |||||||
Jia Sheng Jun Zhou Zhi [Member] | Yuan RMB | ||||||||
Net investment | $ 10,000 | |||||||
Fee agreement | 10,000 | |||||||
Cash offset Received | 5,000 | |||||||
Uncollected fee | 5,000 | |||||||
Investment reduced | 137 | |||||||
Carrying value of investment | $ 4,863 | |||||||
Acquisition percentage | 10.00% | |||||||
Installment payment amount outstanding | $ 2,000 | |||||||
Long term loan receivable | 5,000 | |||||||
Interest receivable | 1,250 | |||||||
Cash consideration for disposal of joint venture | 5,900 | |||||||
Total disposal of joint venture amount | $ 8,000 | |||||||
ZhuShu [Member] | ||||||||
Net investment | $ 1,634 | |||||||
Agreement purchase price, cash consideration | 1,307 | |||||||
Recorded value of disposed investment | $ 783 | |||||||
Installment payment amount | 500 | |||||||
ZhuShu [Member] | Yuan RMB | ||||||||
Net investment | 10,000 | |||||||
Agreement purchase price, cash consideration | $ 8,000 | |||||||
Installment payment amount outstanding | $ 500 | $ 8,000 | $ 500 | $ 500 | ||||
Receipt of outstanding debt | $ 100 |
INVESTMENT PROPERTIES (Details)
INVESTMENT PROPERTIES (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Reclassified as Assets held for sale | $ 94 | $ 98 |
MaoYe [Member] | ||
Investment Amount | 894 | 894 |
MaoYe [Member] | Yuan RMB | ||
Investment Amount | 5,554 | 5,554 |
Jiang Huai [Member] | ||
Investment Amount | 580 | 580 |
Jiang Huai [Member] | Yuan RMB | ||
Investment Amount | 3,600 | 3,600 |
FuLi [Member] | ||
Investment Amount | 649 | 648 |
FuLi [Member] | Yuan RMB | ||
Investment Amount | 4,025 | 4,025 |
China [Member] | ||
Currency translation | (86) | 1 |
Gross investment in rental property | 2,037 | 2,123 |
Accumulated depreciation on rental property | (635) | (583) |
Net investment in property | $ 1,402 | $ 1,540 |
China [Member] | Yuan RMB | ||
Currency translation | ||
Gross investment in rental property | $ 13,179 | $ 13,179 |
Accumulated depreciation on rental property | (4,114) | (3,619) |
Net investment in property | $ 9,065 | $ 9,560 |
INVESTMENT PROPERTIES (Details
INVESTMENT PROPERTIES (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 29, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Rental income | $ 33 | $ 43 | $ 83 | $ 130 | ||
Depreciation expenses | 25 | 27 | 77 | 81 | ||
MaoYe [Member] | ||||||
Investment Amount | $ 894 | $ 894 | $ 894 | |||
Rental agreement term | 5 years | |||||
Rental increase | 5.00% | |||||
Monthly rental | $ 4 | $ 6 | $ 6 | |||
Rental income | 25 | $ 29 | 53 | $ 87 | ||
MaoYe [Member] | Yuan RMB | ||||||
Investment Amount | 5,554 | 5,554 | $ 5,554 | |||
Rental agreement term | 5 years | |||||
Rental increase | 5.00% | 8.00% | ||||
Monthly rental | $ 27 | 39 | 39 | |||
Jiang Huai [Member] | ||||||
Investment Amount | 580 | 580 | $ 580 | |||
Jiang Huai [Member] | Yuan RMB | ||||||
Investment Amount | $ 3,600 | $ 3,600 | 3,600 | |||
Rental income | ||||||
FuLi [Member] | ||||||
Investment Amount | $ 649 | $ 649 | 648 | |||
Rental increase | 21.00% | 6.00% | ||||
Monthly rental | 2 | $ 2 | ||||
Rental income | 8 | $ 14 | 31 | $ 43 | ||
FuLi [Member] | Yuan RMB | ||||||
Investment Amount | 4,025 | 4,025 | 4,025 | |||
Monthly rental | 16 | $ 16 | ||||
FuLi Lease 2[Member] | ||||||
Rental increase | 6.00% | |||||
Monthly rental | 2 | $ 2 | ||||
FuLi Lease 2[Member] | Yuan RMB | ||||||
Monthly rental | 14 | 14 | ||||
Penang-Malaysia RM [Member] | ||||||
Factory reclassified to investment property | 369 | 369 | 371 | |||
Penang [Member] | ||||||
Factory reclassified to investment property | $ 94 | $ 94 | $ 98 |
OTHER ASSETS - Other assets (De
OTHER ASSETS - Other assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Down payment for purchase of investment properties | $ 1,578 | $ 1,645 |
Down payment for purchase of property, plant and equipment | 408 | 31 |
Deposit for rental and utilities | 137 | 147 |
Ending balance | $ 2,123 | $ 1,823 |
LINES OF CREDIT (Details)
LINES OF CREDIT (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Jun. 30, 2015 | |
TrioTech Intl Credit Facility [Member] | ||
Credit limitation | $ 5,736 | $ 7,422 |
Unused credit | $ 4,415 | $ 6,161 |
TrioTech Intl Credit Facility [Member] | MinimumMember | ||
Type of facility | Lines of Credit | Lines of Credit |
Interest rate | 1.90% | 1.90% |
TrioTech Intl Credit Facility [Member] | Maximum Member | ||
Interest rate | 5.60% | 5.60% |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | ||
Type of facility | Lines of Credit | |
Credit limitation | $ 803 | $ 396 |
Unused credit | $ 803 | $ 79 |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | MinimumMember | ||
Type of facility | Lines of Credit | |
Interest rate | 6.30% | 6.30% |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | Maximum Member | ||
Interest rate | 6.70% | 6.70% |
TrioTech Tianjin Credit Facility [Member] | ||
Type of facility | Lines of Credit | |
Credit limitation | $ 1,237 | $ 1,289 |
Unused credit | $ 1,237 | $ 1,289 |
TrioTech Tianjin Credit Facility [Member] | MinimumMember | ||
Type of facility | Lines of Credit | |
Interest rate | 4.90% | 4.90% |
TrioTech Tianjin Credit Facility [Member] | Maximum Member | ||
Interest rate | 6.30% | 6.30% |
LINES OF CREDIT (Details Narrat
LINES OF CREDIT (Details Narrative) - Accounts Receivable Financing Facility [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Credit limitation | $ 1,289 | |
Effective interest rate | 130.00% | |
Line of Credit Facility, Initiation Date | Aug. 24, 2015 | |
Yuan RMB | ||
Credit limitation | $ 8,000 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Notes to Financial Statements | ||
Payroll and related costs | $ 1,120 | $ 1,513 |
Commissions | 62 | 52 |
Customer deposits | 48 | 41 |
Legal and audit | 257 | 244 |
Sales tax | 98 | 131 |
Utilities | 111 | 129 |
Warranty | 63 | 109 |
Accrued purchase of materials and property, plant and equipment | 122 | 430 |
Provision for re-instatement of leasehold properties | 332 | 422 |
Other accrued expenses | 326 | 243 |
Currency translation effect | (77) | (230) |
Total | $ 2,462 | $ 3,084 |
WARRANTY ACCRUAL (Details)
WARRANTY ACCRUAL (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Jun. 30, 2015 | |
Notes to Financial Statements | ||
Beginning | $ 103 | $ 60 |
Additions charged to cost and expenses | 38 | 114 |
Utilization / reversal | (78) | (65) |
Currency translation effect | (2) | (6) |
Ending | $ 61 | $ 103 |
WARRANTY ACCRUAL (Details Narra
WARRANTY ACCRUAL (Details Narratives) | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Product warranty term | The warranty period for products manufactured by the Company is generally one year or the warranty period agreed upon with the customer. |
BANK LOANS PAYABLE (Details)
BANK LOANS PAYABLE (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Current portion | $ (374) | $ (346) |
Long term portion of bank loans payable | 1,834 | 2,198 |
Bank Note [Member] | ||
Bank loan payable | $ 2,015 | $ 2,218 |
Bank prime rate | 7.40% | 7.40% |
Loan collatoral | $ 2,984 | $ 3,144 |
NotesPayableOtherPayablesMember | ||
Bank loan payable | $ 193 | $ 326 |
Bank prime rate | 4.10% | 6.90% |
Loan collatoral | $ 354 | $ 357 |
BANK LOANS PAYABLE (Details 1)
BANK LOANS PAYABLE (Details 1) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Notes to Financial Statements | ||
2,016 | $ 374 | $ 346 |
2,017 | 221 | 322 |
2,018 | 217 | 183 |
2,019 | 229 | 193 |
2,020 | 242 | 203 |
Thereafter | 925 | 1,297 |
Total obligations and commitments | $ 2,208 | $ 2,544 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Trio-Tech International Pte. Ltd | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 61 | |
SGD Dollars | Trio-Tech International Pte. Ltd | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 44 | |
Malaysia [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 37 | 274 |
Malaysia [Member] | Ringgit RM | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 145 | 1,020 |
Tianjin [Member] | Yuan RMB | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 2,192 | 122 |
TianjnUS [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 339 | $ 20 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net revenue | $ 9,355 | $ 8,543 | $ 25,639 | $ 25,533 |
Operating Income (Loss) | 323 | 472 | 950 | 786 |
Total assets | 32,090 | 31,710 | 32,090 | 31,710 |
Depreciation and amortization | 438 | 553 | 1,375 | 1,742 |
Capital expenditures | 573 | 561 | 887 | 1,460 |
Manufacturing [Member] | ||||
Net revenue | 4,468 | 3,359 | 10,884 | 9,754 |
Operating Income (Loss) | (13) | (33) | 358 | (768) |
Total assets | 7,429 | 5,102 | 7,429 | 5,102 |
Depreciation and amortization | 43 | 40 | 150 | 110 |
Capital expenditures | 13 | 5 | 32 | 28 |
Testing Services [Member] | ||||
Net revenue | 3,622 | 4,138 | 11,106 | 13,829 |
Operating Income (Loss) | 109 | 590 | 469 | 1,864 |
Total assets | 20,454 | 22,067 | 20,454 | 22,067 |
Depreciation and amortization | 370 | 486 | 1,147 | 1,551 |
Capital expenditures | 559 | 556 | 854 | 1,426 |
Distribution [Member] | ||||
Net revenue | 1,232 | 1,003 | 3,566 | 1,820 |
Operating Income (Loss) | 112 | (28) | 182 | (28) |
Total assets | $ 664 | $ 774 | $ 664 | $ 774 |
Depreciation and amortization | ||||
Capital expenditures | $ 1 | $ 1 | $ 6 | |
RealEstate [Member] | ||||
Net revenue | 33 | $ 43 | 83 | 130 |
Operating Income (Loss) | (19) | (18) | (89) | (109) |
Total assets | 3,445 | 3,666 | 3,445 | 3,666 |
Depreciation and amortization | $ 25 | $ 27 | $ 78 | $ 81 |
Capital expenditures | ||||
Fabrication Services [Member] | ||||
Net revenue | ||||
Operating Income (Loss) | ||||
Total assets | $ 29 | $ 31 | $ 29 | $ 31 |
Depreciation and amortization | ||||
Capital expenditures | ||||
CorporateAndUnallocated [Member] | ||||
Net revenue | ||||
Operating Income (Loss) | $ 134 | $ (39) | $ 30 | $ (173) |
Total assets | $ 69 | $ 70 | $ 69 | $ 70 |
Depreciation and amortization | ||||
Capital expenditures |
BUSINESS SEGMENTS (Details 1)
BUSINESS SEGMENTS (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net revenue | $ 9,355 | $ 8,543 | $ 25,639 | $ 25,533 |
Operating Income (Loss) | 323 | 472 | 950 | 786 |
Total assets | 32,090 | 31,710 | 32,090 | 31,710 |
Depreciation and amortization | 438 | 553 | 1,375 | 1,742 |
Capital expenditures | 573 | 561 | 887 | 1,460 |
Manufacturing [Member] | ||||
Net revenue | 4,468 | 3,359 | 10,884 | 9,754 |
Operating Income (Loss) | (13) | (33) | 358 | (768) |
Total assets | 7,429 | 5,102 | 7,429 | 5,102 |
Depreciation and amortization | 43 | 40 | 150 | 110 |
Capital expenditures | 13 | 5 | 32 | 28 |
Testing Services [Member] | ||||
Net revenue | 3,622 | 4,138 | 11,106 | 13,829 |
Operating Income (Loss) | 109 | 590 | 469 | 1,864 |
Total assets | 20,454 | 22,067 | 20,454 | 22,067 |
Depreciation and amortization | 370 | 486 | 1,147 | 1,551 |
Capital expenditures | 559 | 556 | 854 | 1,426 |
Distribution [Member] | ||||
Net revenue | 1,232 | 1,003 | 3,566 | 1,820 |
Operating Income (Loss) | 112 | (28) | 182 | (28) |
Total assets | $ 664 | $ 774 | $ 664 | $ 774 |
Depreciation and amortization | ||||
Capital expenditures | $ 1 | $ 1 | $ 6 | |
RealEstate [Member] | ||||
Net revenue | 33 | $ 43 | 83 | 130 |
Operating Income (Loss) | (19) | (18) | (89) | (109) |
Total assets | 3,445 | 3,666 | 3,445 | 3,666 |
Depreciation and amortization | $ 25 | $ 27 | $ 78 | $ 81 |
Capital expenditures | ||||
Fabrication Services [Member] | ||||
Net revenue | ||||
Operating Income (Loss) | ||||
Total assets | $ 29 | $ 31 | $ 29 | $ 31 |
Depreciation and amortization | ||||
Capital expenditures | ||||
CorporateAndUnallocated [Member] | ||||
Net revenue | ||||
Operating Income (Loss) | $ 134 | $ (39) | $ 30 | $ (173) |
Total assets | $ 69 | $ 70 | $ 69 | $ 70 |
Depreciation and amortization | ||||
Capital expenditures |
BUSINESS SEGMENTS (Details Narr
BUSINESS SEGMENTS (Details Narrative) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2015 | |
Business segments | 4 | 4 | |||
RealEstate [Member] | |||||
Other income | $ 68 | ||||
Inter Segment [Member] | |||||
Net revenue | $ 247 | $ 1,109 | $ 424 | $ 1,251 |
OTHER INCOME, NET (Details)
OTHER INCOME, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Other Income Net Details | ||||
Investment income deemed interest income | $ 68 | |||
Allowance for doubtful loan receivables | (68) | |||
Interest income | $ 8 | $ 8 | $ 15 | 14 |
Other rental income | 24 | 26 | 73 | 78 |
Exchange loss | (218) | (101) | (126) | (171) |
Other miscellaneous income | 89 | 70 | 167 | 136 |
Total | $ (97) | $ 3 | $ 129 | $ 57 |
OTHER INCOME, NET (Details Narr
OTHER INCOME, NET (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Other Income and Expenses [Abstract] | ||||
Investment income deemed interest income | $ 68 | |||
Allowance for doubtful loan receivables | $ 68 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 15 | $ 170 | $ 168 | $ 256 |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Net income | $ 163 | $ 240 | $ 755 | $ 420 | $ 824 |
Dividend declared by subsidary company | 117 | 3 | |||
Translation adjustment | (624) | (1,050) | |||
Noncontrolling Interest | |||||
Beginning balance | 1,736 | $ 1,732 | 1,732 | ||
Net income | 156 | $ 303 | |||
Dividend declared by subsidary company | (117) | ||||
Translation adjustment | (123) | $ (299) | |||
Ending balance | $ 1,652 | $ 1,652 | $ 1,736 |
NON-CONTROLLING INTEREST (Det74
NON-CONTROLLING INTEREST (Details Narrative) | Mar. 31, 2016 |
Malaysia Sdn [Member] | |
Non controlling interest | 45.00% |
SHI International [Member] | |
Non controlling interest | 45.00% |
Prestal Enterprise [Member] | |
Non controlling interest | 24.00% |
DISCONTINUED OPERATION AND CO75
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Notes to Financial Statements | ||||
Revenue | ||||
Cost of sales | ||||
Gross margin | ||||
Operating expenses | ||||
General and administrative | $ 5 | $ 4 | $ 8 | $ 22 |
Total | 5 | 4 | 8 | 22 |
Loss from discontinued operation | (5) | (4) | (8) | (22) |
Other (charges) / income | 4 | (9) | 3 | 29 |
Income / (loss) from discontinued operations | $ (1) | $ (13) | $ (5) | $ 7 |
DISCONTINUED OPERATION AND CO76
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Accounts payable | $ 4,074 | $ 4,074 | $ 2,770 | ||
General and administrative | 5 | $ 4 | 8 | $ 22 | |
Indonesia Segment [Member] | |||||
Accounts payable | $ 75 | $ 84 | $ 75 | $ 84 | |
Accounts receivable | |||||
Shanghai [Member] | |||||
Accounts payable | $ 49 | $ 38 | $ 49 | $ 38 | |
Accounts receivable | $ 1 | $ 2 | $ 1 | $ 2 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Notes to Financial Statements | ||||
Income / (loss) attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ 155 | $ 207 | $ 607 | $ 166 |
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | (5) | (8) | (78) | 3 |
Net income / (loss) attributable to Trio-Tech International common shareholders | $ 150 | $ 199 | $ 599 | $ 169 |
Basic and diluted earnings / (loss) per share from continuing operations attributable to Trio-Tech International | $ .04 | $ .06 | $ .17 | $ .05 |
Basic and diluted earnings per share from discontinued operations attributable to Trio-Tech International | ||||
Basic and diluted earnings / (Loss) per share from Net Income / (Loss) attributable to Trio-Tech International | $ .04 | $ .06 | $ .17 | $ .05 |
Weighted average number of common shares outstanding - basic | 3,563 | 3,513 | 3,563 | 3,513 |
Dilutive effect of stock options | 13 | 16 | 12 | 41 |
Number of shares used to compute earnings per share - diluted | 3,576 | 3,529 | 3,575 | 3,554 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - $ / shares | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Options outstanding | 505,000 | |
EmployeeStockOptionMember | ||
Antidilutive securities | 390,000 | 430,000 |
EmployeeStockOptionMember | MinimumMember | ||
Exercise Price | $ 3.10 | $ 3.10 |
EmployeeStockOptionMember | Maximum [Member] | ||
Exercise Price | $ 3.81 | $ 4.35 |
STOCK OPTIONS (Details)
STOCK OPTIONS (Details) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Jun. 30, 2015 | |
Expected life (years) | 2 years 6 months | |
MinimumMember | ||
Expected volatility | 60.41% | 71.44% |
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 | 1.05% | 0.78% |
Expected life (years) | 3 years 3 months |
STOCK OPTIONS (Details 1)
STOCK OPTIONS (Details 1) - 2007 Employee Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Outstanding at beginning of period | 130,000 | 130,000 |
Granted, Options | 40,000 | |
Exercised, Options | ||
Forfeited or expired, Options | (80,000) | |
Options outstanding | 90,000 | 130,000 |
Exercisable at end of period | 51,250 | 112,500 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.93 | $ 3.93 |
Granted, Weighted- Average Exercise Price | $ 3.26 | |
Exercised, Weighted- Average Exercise Price | ||
Forfeited or expired, Weighted- Average Exercise Price | $ (4.35) | |
Outstanding at end of period, Weighted- Average Exercise Price | 3.26 | $ 3.93 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 3.28 | $ 4.06 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 6 months 25 days | 2 years 6 months 25 days |
Granted, Weighted - Average Remaining Contractual Term (Years) | 4 years 11 months 19 days | |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 8 months 1 day | 1 year 9 months 25 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 8 months 1 day | 1 year 6 months 11 days |
Outstanding at beginning of period | $ 13 | |
Granted, Aggregate Intrinsic Value | $ 4 | |
Exercised, Aggregate Intrinsic Value | ||
Forfeited or expired, Aggregate Intrinsic Value | ||
Outstanding at end of period | ||
Exercisable at end of period, Aggregate Intrinsic Value |
STOCK OPTIONS (Details 2)
STOCK OPTIONS (Details 2) - $ / shares | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Notes to Financial Statements | ||
Non-vested at beginning of period, Options | 17,500 | 26,250 |
Granted, Options | 40,000 | |
Vested, Options | (18,750) | (8,750) |
Forfeited, Options | ||
Non-vested at end of period, Options | 38,750 | 17,500 |
Non-vested at beginning of period, Weighted-Average Grant-Date Fair Value | $ 3.10 | $ 1.69 |
Granted, Options, Weighted-Average Grant-Date Fair Value | 3.26 | |
Vested, Options, Weighted-Average Grant-Date Fair Value | $ (3.26) | $ (1.69) |
Forfeited, Options, Weighted-Average Grant-Date Fair Value | ||
Non-vested at end of period, Options , Weighted-Average Grant-Date Fair Value | $ 3.20 | $ 1.69 |
STOCK OPTIONS (Details 3)
STOCK OPTIONS (Details 3) - 2007 Directors Equity Incentive Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Summary of option activities under the 2007 Directors Equity Incentive Plan | ||
Outstanding at beginning of period | 365,000 | 315,000 |
Granted, Options | 200,000 | 50,000 |
Exercised, Options | ||
Forfeited or expired, Options | (150,000) | |
Options outstanding | 415,000 | 365,000 |
Exercisable at end of period | 415,000 | 365,000 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.65 | $ 3.62 |
Granted, Weighted- Average Exercise Price | $ 3.12 | $ 3.81 |
Exercised, Weighted- Average Exercise Price | ||
Forfeited or expired, Weighted- Average Exercise Price | $ (4.35) | |
Outstanding at end of period, Weighted- Average Exercise Price | 3.14 | $ 3.64 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 3.14 | $ 3.64 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 11 months 26 days | 2 years 7 months 17 days |
Granted, Weighted - Average Remaining Contractual Term (Years) | 3 years 6 months 14 days | |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 11 months 19 days | 2 years 2 months 26 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 11 months 19 days | 2 years 2 months 26 days |
Aggregate Intrinsic Value | ||
Outstanding at beginning of period | $ 53 | $ 82 |
Granted, Aggregate Intrinsic Value | ||
Exercised, Aggregate Intrinsic Value | ||
Forfeited or expired, Aggregate Intrinsic Value | ||
Outstanding at end of period | $ 91 | $ 30 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 91 | $ 30 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Nov. 01, 2013 | |
Stock-based compensation expense | $ 99 | $ 97 | |
Employee 2007 [Member] | |||
Shares authorized | 600,000 | ||
Options granted | 40,000 | ||
Stock-based compensation expense | $ 2 | $ 15 | |
Exercised during period | |||
Weighted average contractual term, nonvested | 4 years 1 month 17 days | 3 years 8 months 9 days | |
Available for grant | 271,875 | ||
Unamortized stock-based compensation | $ 5 | $ 12 | |
Vested stock options | 51,250 | 112,500 | |
Weighted-average exercise price, vested options | $ 3.28 | $ 4.06 | |
Fair value of stock options, vested | $ 168 | $ 457 | |
Employee 2007 [Member] | Weighted Average [Member] | |||
Weighted average contractual term | 3 years 25 days | 1 year 6 months 11 days | |
Director 2007 [Member] | |||
Shares authorized | 500,000 | 400,000 | |
Options granted | 50,000 | ||
Options granted, fair value | $ 82 | ||
Options granted, fair value, per share | $ 3.81 | ||
Stock-based compensation expense | $ 97 | ||
Exercised during period | |||
Available for grant | 80,000 | ||
Director 2007 [Member] | Mar 2016 [Member] | |||
Options granted | 150,000 | ||
Options granted, fair value | $ 489 | ||
Options granted, fair value, per share | $ 3.26 | ||
Stock-based compensation expense | $ 42 | ||
Exercised during period | |||
Weighted average contractual term, nonvested | 5 years | ||
Director 2007 [Member] | Oct2015 [Member] | |||
Options granted | 50,000 | ||
Options granted, fair value | $ 51 | ||
Options granted, fair value, per share | $ 2.69 | ||
Stock-based compensation expense | $ 55 | ||
Exercised during period |