Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2016 | Feb. 01, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | TRIO-TECH INTERNATIONAL | |
Entity Central Index Key | 732,026 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 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 | Q2 | |
Document Fiscal Year Focus | 2,017 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,336 | $ 3,807 |
Short-term deposits | 658 | 295 |
Trade accounts receivable, less allowance for doubtful accounts of $243 and $270 | 7,577 | 8,826 |
Other receivables | 316 | 596 |
Inventories, less provision for obsolete inventory of $661 and $697 | 1,666 | 1,460 |
Prepaid expenses and other current assets | 363 | 264 |
Assets held for sale | 82 | 92 |
Total current assets | 14,998 | 15,340 |
NON-CURRENT ASSETS | ||
Deferred tax assets | 371 | 401 |
Investment properties, net | 1,234 | 1,340 |
Property, plant and equipment, net | 10,290 | 11,283 |
Other assets | 1,882 | 1,788 |
Restricted term deposits | 1,921 | 2,067 |
Total non-current assets | 15,698 | 16,879 |
TOTAL ASSETS | 30,696 | 32,219 |
CURRENT LIABILITIES: | ||
Lines of credit | 1,419 | 2,491 |
Accounts payable | 3,730 | 2,921 |
Accrued expenses | 2,681 | 2,642 |
Income taxes payable | 204 | 230 |
Current portion of bank loans payable | (261) | (352) |
Current portion of capital leases | 209 | 235 |
Total current liabilities | 8,478 | 8,861 |
NON-CURRENT LIABILITIES: | ||
Bank loans payable, net of current portion | 1,625 | 1,854 |
Capital leases, net of current portion | 398 | 503 |
Deferred tax liabilities | 237 | 216 |
Other non-current liabilities | 42 | 43 |
Total non-current liabilities | 2,131 | 2,487 |
TOTAL LIABILITIES | 10,609 | 11,348 |
Commitments and contingencies | ||
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: | ||
Common stock, no par value, 15,000,000 shares authorized; 3,513,055 shares issued and outstanding as at December 31, 2016, and June 30, 2016 | 10,882 | 10,882 |
Paid-in capital | 3,189 | 3,188 |
Accumulated retained earnings | 3,638 | 3,025 |
Accumulated other comprehensive gain-translation adjustments | 918 | 2,162 |
Total Trio-Tech International shareholders' equity | 18,627 | 19,257 |
Non-controlling interest | 1,460 | 1,614 |
TOTAL EQUITY | 20,087 | 20,871 |
TOTAL LIABILITIES AND EQUITY | $ 30,696 | $ 32,219 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 243 | $ 270 |
Provision for obsolete inventory | $ 661 | $ 697 |
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 | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | ||||
Manufacturing | $ 3,320 | $ 3,276 | $ 6,991 | $ 6,416 |
Testing services | 4,070 | 3,701 | 8,227 | 7,484 |
Distribution | 1,675 | 1,359 | 2,779 | 2,334 |
Others | 39 | 18 | 78 | 50 |
Total | 9,104 | 8,354 | 18,075 | 16,284 |
Cost of Sales | ||||
Cost of manufactured products sold | 2,622 | 2,471 | 5,417 | 4,580 |
Cost of testing services rendered | 2,658 | 2,499 | 5,472 | 5,257 |
Cost of distribution | 1,501 | 1,240 | 2,492 | 2,093 |
Others | 29 | 29 | 42 | 61 |
Total | 6,810 | 6,239 | 13,423 | 11,991 |
Gross Margin | 2,294 | 2,115 | 4,652 | 4,293 |
Operating Expenses | ||||
General and administrative | 1,776 | 1,599 | 3,519 | 3,261 |
Selling | 180 | 141 | 365 | 312 |
Research and development | 52 | 51 | 105 | 97 |
Loss/ (gain) of property, plant and equipment | 8 | (4) | 8 | (4) |
Total operating expenses | 2,016 | 1,787 | 3,997 | 3,666 |
Income from Operations | 278 | 328 | 655 | 627 |
Other Income | ||||
Interest expenses | (48) | (51) | (106) | (104) |
Other income, net | 203 | 18 | 313 | 226 |
Total other income / (expenses) | 155 | (33) | 207 | 122 |
Income from Continuing Operations before Income Taxes | 433 | 295 | 862 | 749 |
Income Tax Expenses | (67) | (86) | (150) | (153) |
Income from continuing operations before non-controlling interest, net of tax | 366 | 209 | 712 | 596 |
Discontinued Operations (Note 18) | ||||
(Loss) / income from discontinued operations, net of tax | (4) | 6 | (3) | (4) |
NET INCOME | 362 | 215 | 709 | 592 |
Less: income attributable to non-controlling interest | 52 | 25 | 96 | 143 |
Net Income Attributable to Trio-Tech International Common Shareholder | 310 | 190 | 613 | 449 |
Amounts Attributable to Trio-Tech International Common Shareholders: | ||||
Income from continuing operations, net of tax | 316 | 188 | 619 | 452 |
(Loss) / income from discontinued operations, net of tax | (6) | 2 | (6) | (3) |
Net Income Attributable to Trio-Tech International Common Shareholders | $ 310 | $ 190 | $ 613 | $ 449 |
Basic Earnings per Share: | ||||
Basic earnings per share from continuing operations attributable to Trio-Tech International | $ 0.09 | $ 0.05 | $ 0.18 | $ 0.13 |
Basic earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | 0 | 0 |
Basic Earnings per Share from Net Income Attributable to Trio-Tech International | 0.09 | 0.05 | 0.18 | 0.13 |
Diluted Earnings per Share: | ||||
Diluted earnings per share from continuing operations attributable to Trio-Tech International | 0.09 | 0.05 | 0.17 | 0.13 |
Diluted earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | 0 | 0 |
Diluted Earnings per Share from Net Income Attributable to Trio-Tech International | $ 0.09 | $ 0.05 | $ 0.17 | $ 0.13 |
Weighted average number of common shares outstanding Basic | 3,513 | 3,513 | 3,513 | 3,513 |
Dilutive effect of stock options | 56 | 16 | 39 | 12 |
Number of shares used to compute earnings per share diluted | 3,569 | 3,529 | 3,552 | 3,525 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Comprehensive Income/(Loss) Attributable to Trio-Tech International Common Shareholders: | ||||
Net income | $ 362 | $ 215 | $ 709 | $ 592 |
Foreign currency translation, net of tax | (1,094) | 22 | (1,377) | (1,403) |
Comprehensive (Loss)/ Income | (732) | 237 | (668) | (811) |
Less: comprehensive (loss)/ income attributable to non-controlling interest | (16) | 114 | (37) | (138) |
Comprehensive (Loss)/ Income Attributable to Trio-Tech International Common Shareholders | $ (716) | $ 123 | $ (631) | $ (673) |
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 | Non-Controlling Interest | Total |
Beginning Balance, Amount at Jun. 30, 2015 | $ 10,882 | $ 3,087 | $ 2,246 | $ 2,771 | $ 1,736 | $ 20,722 |
Beginning Balance, No. of Shares at Jun. 30, 2015 | 3,513 | |||||
Stock option expenses | 101 | 101 | ||||
Net income | 779 | 282 | 1,061 | |||
Dividend declared by subsidiary | (181) | (181) | ||||
Translation adjustment | (609) | (223) | (832) | |||
Ending Balance, Amount at Jun. 30, 2016 | $ 10,882 | 3,188 | 3,025 | 2,162 | 1,614 | 20,871 |
Ending Balance, No. of Shares at Jun. 30, 2016 | 3,513 | |||||
Stock option expenses | 1 | 1 | ||||
Net income | 613 | 96 | 709 | |||
Dividend declared by subsidiary | (117) | (117) | ||||
Translation adjustment | (1,244) | (133) | (1,377) | |||
Ending Balance, Amount at Dec. 31, 2016 | $ 10,882 | $ 3,189 | $ 3,638 | $ 918 | $ 1,460 | $ 20,087 |
Ending Balance, No. of Shares at Dec. 31, 2016 | 3,513 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Cash Flow from Operating Activities | |||||
Net income | $ 362 | $ 215 | $ 709 | $ 592 | $ 1,061 |
Adjustments to reconcile net income to net cash flow provided by operating activities | |||||
Depreciation and amortization | 916 | 937 | |||
Stock option expenses | 1 | 55 | |||
Inventory recovery | (4) | (45) | |||
Bad debt recovery, net | (16) | (6) | |||
Accrued interest expense, net accrued interest income | 95 | 98 | |||
Loss/ (Gain) on sale of of property, plant and equipment | 8 | (4) | |||
Impairment loss | 0 | 2 | |||
Warranty recovery, net | (9) | (14) | |||
Deferred tax provision | 51 | (14) | |||
Changes in operating assets and liabilities | |||||
Trade accounts receivable | 1,265 | 261 | |||
Other receivables | 280 | 63 | |||
Other assets | (226) | 0 | |||
Inventories | (275) | (559) | |||
Prepaid expenses and other current assets | (99) | (36) | |||
Accounts payable and accrued liabilities | 1,001 | 71 | |||
Income tax payable | (26) | (52) | |||
Net Cash Provided by Operating Activities | 3,671 | 1,349 | |||
Cash Flow from Investing Activities | |||||
Proceeds from maturing of restricted and un-restricted term deposits | 0 | 63 | |||
Investments in restricted & un-restricted deposits | (421) | 0 | |||
Additions to property, plant and equipment | (403) | (60) | (764) | (314) | |
Proceeds from disposal of plant, property, and equipment | 83 | 55 | |||
Net Cash used in Investing Activities | (1,102) | (196) | |||
Cash Flow from Financing Activities | |||||
Repayments on lines of credit | (4,503) | (4,388) | |||
Repayment of bank loans and capital leases | (371) | (339) | |||
Proceeds from bank loans and capital leases | 3,516 | 4,428 | |||
Dividends paid to non-controlling interest | (117) | 0 | |||
Net Cash Used in by Financing Activities | (1,475) | (299) | |||
Effect of Changes in Exchange Rate | (565) | (195) | |||
NET INCREASE IN CASH | 529 | 659 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3,807 | 3,711 | 3,711 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 4,336 | $ 4,370 | 4,336 | 4,370 | $ 3,807 |
Supplementary Information of Cash Flows | |||||
Cash paid during the period for Interest | 91 | 105 | |||
Cash paid during the period for Income taxes | 83 | 157 | |||
Non-Cash Transactions | |||||
Capital lease of property, plant and equipment | $ 49 | $ 192 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
ORGANIZATION AND BASIS OF PRESENTATION | Trio-Tech International (“the Company” or “TTI” hereafter) was incorporated in fiscal year 1958 under the laws of the State of California. TTI provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia. In addition, TTI operates testing facilities in the United States. The Company also designs, develops, manufactures and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components. In the second quarter of fiscal year 2017, TTI conducted business in four business segments: Manufacturing, Testing Services, Distribution and Real Estate. TTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand and China as follows: Ownership Location Express Test Corporation (Dormant) 100% Van Nuys, California Trio-Tech Reliability Services (Dormant) 100% Van Nuys, California KTS Incorporated, dba Universal Systems (Dormant) 100% Van Nuys, California European Electronic Test Centre (Dormant) 100% Dublin, Ireland Trio-Tech International Pte. Ltd. 100% Singapore Universal (Far East) Pte. Ltd. * 100% Singapore Trio-Tech International (Thailand) Co. Ltd. * 100% Bangkok, Thailand Trio-Tech (Bangkok) Co. Ltd. 100% Bangkok, Thailand (49% owned by Trio-Tech Iternational Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) 55% Penang and Selangor, Malaysia Trio-Tech (Kuala Lumpur) Sdn. Bhd. (100% owned by Trio-Tech Malaysia Sdn. Bhd.) 55% Selangor, Malaysia 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 accounting principles generally accepted in the United States of America (“U.S. 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 U.S. 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 six months ended December 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2017. 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, 2016. The Company’s operating results are presented based on the translation of foreign currencies using the respective quarter’s average exchange rate. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
NEW ACCOUNTING PRONOUNCEMENTS | The amendments in Accounting Standards Update (“ASU”) 2017-01 ASC Topic 805 — 'Business Combinations (“ASC Topic 805”): These amendments clarify the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. For public companies, these amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. While early application is permitted, including adoption in an interim period, the Company has not elected to early adopt. The effectiveness of this update is not expected to have a significant effect on the Company’s presentation of consolidated financial position or results of operations. The amendments in Accounting Standards Update (“ASU”) 2016-18 ASC Topic 230 — 'Statement of Cash Flows (“ASC Topic 230”): These amendments provide cash flow statement classification guidance. For public business entities, these amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. While early application is permitted, including adoption in an interim period, the Company has not elected to early adopt. The effectiveness of this update is not expected to have a significant effect on the Company’s presentation of consolidated financial position and statement of cash flows. The amendments in Accounting Standards Update (“ASU”) 2016-17 ASC Topic 810 — Consolidation (“ASC Topic 810”): These amendments require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. For public business entities, these amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, the Company has not elected to early adopt. The effectiveness 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 Accounting Standards Update (“ASU”) 2016-16 ASC Topic 740 — Income Taxes (“ASC Topic 740”): These amendments require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. For public business entities, these amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. While early application is permitted, including adoption in an interim period, the Company has not elected to early adopt. The effectiveness 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 Accounting Standards Update (“ASU”) 2016-15 ASC Topic 230 —Statement of Cash Flows (“ASC Topic 230”): These amendments provide cashflow statement classification guidance. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. While early application is permitted, including adoption in an interim period, the Company has not elected to early adopt. The effectiveness 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 2016-13 ASC Topic 326: Financial Instruments —Credit Losses (“ASC Topic 326”) are issued for the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. For public companies that are not SEC filers, the ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. While early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, the Company has not yet determined if it will early adopt. The effectiveness 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 2016-09 ASC Topic 718: Compensation – Stock Compensation (“ASC Topic 718”) are issued to simplify several aspects of the accounting for share-based payment award transactions, including (a) income tax consequences (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company does not intend to early adopt and has not yet determined the effects on the Company’s consolidated financial position or results of operations on the adoption of this update. The amendments in ASU 2016-02 ASC Topic 842: Leases (“ASC Topic 842”) are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date of the applicable lease: (a) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which is as an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. These amendments become effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, for a variety of entities including a public business. While early adoption is permitted, the Company has not elected to early adopt. The effectiveness 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 (“ASC Topic 606”) defers the effective date of update 2014-09 for all entities by one year. For a public entity, the amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company has not yet determined if it will early adopt. The effectiveness of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. 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 (“ASC Topic 605”), and most industry-specific guidance. ASU 2014-09 also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of non-financial assets that are not in a contract with a customer (e.g., assets within the scope of ASC Topic 360, Property, Plant, and Equipment, (“ASC Topic 360”), and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in ASU 2014-09. For a public entity, the amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. As the new standards, will supersede substantially all existing revenue guidance affecting the Company under GAAP, it could impact revenue and cost recognition on sales across all the Company's business segments. The Company carried out an evaluation of the impact of this standard on its business and found the adoption of this standard should not have a material effect on its Consolidated Financial Statements. The amendments in ASU 2015-11 ASC Topic 330: Simplifying the Measurement of Inventory (“ASC Topic 330”) specify that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using Last-In-First-Out or the retail inventory method. The amendments in ASU 2015-011 are effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. A reporting entity should apply the amendments retrospectively to all periods presented. While early adoption is permitted, the Company has not elected to early adopt. The adoption of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations. FASB amended ASU 2014-15 Subtopic 205-40, Presentation of Financial Statements – Going Concern (“ASC Topic 205”) to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. Currently, GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. ASU 2014-15 provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments in ASU 2014-15 are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. While early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued, the Company has not elected to early adopt. The effectiveness of this update does not have a significant effect on the Company’s consolidated financial position or results of operations. Other new pronouncements issued but not yet effective until after December 31, 2016 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
TERM DEPOSITS
TERM DEPOSITS | 6 Months Ended |
Dec. 31, 2016 | |
Term Deposits | |
TERM DEPOSITS | Dec. 31, 2016 June 30, 2016 (Unaudited) Short-term deposits $ 723 $ 301 Currency translation effect on short-term deposits (65 ) (6 ) Total short-term deposits 658 295 Restricted term deposits 2,070 2,085 Currency translation effect on restricted term deposits (149 ) (18 ) Total restricted term deposits 1,921 2,067 Total Term deposits $ 2,579 $ 2,362 Restricted deposits represent the amount of cash pledged to secure loans payable granted by financial institutions and serve as collateral for public utility agreements such as electricity and water and performance bonds related to customs duty payable. Restricted deposits are classified as non-current assets, as they relate to long-term obligations and will become unrestricted only upon discharge of the obligations. Short-term deposits represent bank deposits that do not qualify as cash equivalents. |
ACCOUNTS RECEIVABLE AND ALLOWAN
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | Accounts receivable consists of customer obligations due under normal trade terms. Although management generally does not require collateral, letters of credit may be required from customers in certain circumstances. Management periodically performs credit evaluations of customers’ financial conditions. Senior management reviews accounts receivable on a periodic basis to determine if any receivables potentially will be uncollectible. Management includes any accounts receivable balances that are determined to be uncollectible in the allowance for doubtful accounts. After all reasonable attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available, management believed the allowance for doubtful accounts as of December 31, 2016, and June 30, 2016 was adequate. The following table represents the changes in the allowance for doubtful accounts: Dec. 31, 2016 June 30, 2016 (Unaudited) Beginning $ 270 $ 313 Additions charged to expenses 65 21 Recovered / write-off (80 ) (48 ) Currency translation effect (12 ) (16 ) Ending $ 243 $ 270 |
LOANS RECEIVABLE FROM PROPERTY
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | The following table presents Trio-Tech (Chongqing) Co. Ltd (“TTCQ”)’s loan receivable from property development projects in China as of December 31, 2016. The exchange rate is based on the date published by the Monetary Authority of Singapore as of March 31, 2015, since the net loan receivable was “nil” as at December 31, 2016. Loan Expiry Date Loan Amount (RMB) Loan Amount (U.S. Dollars) Short-term loan receivables JiangHuai (Project – Yu Jin Jiang An) May 31, 2013 2,000 325 Less: allowance for doubtful receivables (2,000 ) (325 ) Net loan receivables from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment property (5,000 ) (814 ) Net loan receivables from property development projects - - The following table presents TTCQ’s loan receivable from property development projects in China as of June 30, 2016. The exchange rate is based on the date published by the Monetary Authority of Singapore as of March 31, 2015, since the net loan receivable was “nil” as at June 30, 2016. Loan Expiry Date Loan Amount (RMB) Loan Amount (U.S. Dollars) Short-term loan receivables JiangHuai (Project – Yu Jin Jiang An) May 31, 2013 2,000 325 Less: allowance for doubtful receivables (2,000 ) (325 ) Net loan receivables from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment property (5,000 ) (814 ) Net loan receivables from property development projects - - On November 1, 2010, TTCQ entered into a Memorandum Agreement with JiangHuai Property Development Co. Ltd. (“JiangHuai”) to invest in their property development projects (Project - Yu Jin Jiang An) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310-10-25 Receivables, amounting to Renminbi (“RMB”) 2,000, or approximately $325. The loan was renewed, but expired on May 31, 2013. TTCQ is in the legal process of recovering the outstanding amount of $325. TTCQ did not generate other income from JiangHuai for the quarter ended December 31, 2016, or for the fiscal year ended June 30, 2016. Based on TTI’s financial policy, a provision for doubtful receivables of $325 on the investment in JiangHuai was recorded during the second quarter of fiscal 2014 based on TTI’s financial policy. On November 1, 2010, TTCQ entered into a Memorandum Agreement with JiaSheng Property Development Co. Ltd. (“JiaSheng”) to invest in their property development projects (Project B-48 Phase 2) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310, amounting to RMB 5,000, or approximately $814 based on the exchange rate as at March 31, 2015 published by the Monetary Authority of Singapore. The amount was unsecured and repayable at the end of the term. The loan was renewed in November 2011 for a period of one year, which expired on October 31, 2012 and was again renewed in November 2012 and expired in November 2013. On November 1, 2013, the loan was transferred by JiaSheng to, and is now payable by, Chong Qing Jun Zhou Zhi Ye Co. Ltd. (“Jun Zhou Zhi Ye”), and the transferred agreement expired on October 31, 2016. Prior to the second quarter of fiscal year 2015, the loan receivable was classified as a long-term receivable. The book value of the loan receivable approximates its fair value. In the second quarter of fiscal year 2015, the loan receivable was transferred to down payment for purchase of investment property that is being developed in the Singapore Themed Resort Project (see Note 8). |
INVENTORIES
INVENTORIES | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
INVENTORIES | Inventories consisted of the following: Dec. 31, 2016 June 30, 2016 (Unaudited) Raw materials $ 1,025 $ 967 Work in progress 1,201 909 Finished goods 207 279 Less: provision for obsolete inventory (661 ) (697 ) Currency translation effect (106 ) 2 $ 1,666 $ 1,460 The following table represents the changes in provision for obsolete inventory: Dec. 31, 2016 June 30, 2016 (Unaudited) Beginning $ 697 $ 764 Additions charged to expenses - 22 Usage - disposition (4 ) (86 ) Currency translation effect (32 ) (3 ) Ending $ 661 $ 697 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 6 Months Ended |
Dec. 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 May 2015, Trio-Tech Malaysia was approached by a potential buyer to purchase the factory building. Negotiation is still ongoing and is subject to approval by Penang Development Corporation. In accordance with ASC Topic 360, during fiscal year 2015, the property was reclassified from investment property, which had a net book value of RM 371, or approximately $92, to assets held for sale, since there was an intention to sell the factory building. The net book values of the building were RM371, or approximately $82, for three month ended December 31, 2016 and RM 371, or approximately $92, for year ended June 30, 2016. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
INVESTMENTS | Investments were nil as at December 31, 2016 and June 30, 2016. 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 RMB10,000, or approximately $1,606 based on the exchange rate as of March 31, 2014, published by the Monetary Authority of Singapore. Therefore, the RMB 5,000 received in cash was offset against the initial investment of RMB 10,000, resulting in a net investment of RMB 5,000 as of March 31, 2014. The Company further reduced its investments by RMB 137, or approximately $22, towards the losses from operations incurred by the joint venture, resulting in a net investment of RMB 4,863, or approximately $781 based on exchange rates published by the Monetary Authority of Singapore as of March 31, 2014. “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 consisted of (1) commercial units measuring 668 square meters to be delivered in June 2016 and (2) sixteen quarterly equal installments of RMB500 per quarter commencing from January 2014. Based on ASC Topic 845 Non-monetary Consideration, the Company deferred the recognition of the gain on disposal of the 10% interest in joint venture investment until such time that the consideration is paid, so that the gain can be ascertained. The recorded value of the disposed investment amounting to $783, based on exchange rates published by the Monetary Authority of Singapore as of June 30, 2014, is classified as “other assets” under non-current assets, because it is considered a down payment for the purchase of the commercial property in Chongqing. TTCQ performed a valuation on a certain commercial unit and its market value was higher than the carrying amount. The first three installments, amounting RMB 500 each due in January 2014, April 2014 and July 2014 were all outstanding until the date of disposal of the investment in the joint venture. Out of the outstanding RMB 8,000, TTCQ had received RMB 100 during May 2014. 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 the outstanding amounts owed to TTCQ by Jun Zhou Zhi Ye as follows: a) Long term loan receivable RMB 5,000, or approximately $814, as disclosed in Note 5, plus the interest receivable on long term loan receivable of RMB 1,250; b) Commercial units measuring 668 square meters, as mentioned above; and c) RMB 5,900 for the part of the unrecognized cash consideration of RMB 8,000 relating to the disposal of the joint venture. The consideration does not include the remaining outstanding amount of RMB 2,000, or approximately $326, which will be paid to TTCQ in cash. The shop lots are to be delivered to TTCQ upon completion of the construction of the shop lots in the Singapore Themed Resort Project. The initial targeted date of completion was December 31, 2016. Based on discussions with the developers, the completion date is estimated to be December 31, 2018. The share transfer (10% interest in the joint venture) was registered with the relevant authorities in China during October 2016. |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
INVESTMENT PROPERTIES | The following table presents the Company’s investment in properties in China as of December 31, 2016. The exchange rate is based on the exchange rate as of December 30, 2016, published by the Monetary Authority of Singapore. Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I - MaoYe Jan 04, 2008 5,554 894 Purchase of rental property – Property II - JiangHuai Jan 06, 2010 3,600 580 Purchase of rental property – Property III - Fu Li Apr 08, 2010 4,025 648 Currency translation - (225 ) Gross investment in rental property 13,179 1,897 Accumulated depreciation on rental property Dec 31, 2016 (4,608 ) (663 ) Net investment in property – China 8,571 1,234 The following table presents the Company’s investment in properties in China as of June 30, 2016. The exchange rate is based on the exchange rate as of June 30, 2016, published by the Monetary Authority of Singapore. Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I - MaoYe Jan 04, 2008 5,554 894 Purchase of rental property – Property II - JiangHuai Jan 06, 2010 3,600 580 Purchase of rental property – Property III - Fu Li Apr 08, 2010 4,025 648 Currency translation - (139 ) Gross investment in rental property 13,179 1,983 Accumulated depreciation on rental property Jun 30, 2016 (4,278 ) (643 ) Net investment in property – China 8,901 1,340 The following table presents the Company’s investment properties in Malaysia as of December 31, 2016. The exchange rate is based on the exchange rate as of June 30, 2015, published by the Monetary Authority of Singapore. Investment Date Investment Amount (RM) Investment Amount (U.S. Dollars Reclassification of rental property – Penang Property I Dec 31, 2012 681 181 Gross investment in rental property 681 181 Accumulated depreciation on rental property June 30, 2015 (310 ) (83 ) Reclassified as “Assets held for sale” June 30, 2015 (371 ) (98 ) Net investment in property – Malaysia - - The following table presents the Company’s investment properties in Malaysia as of June 30, 2016. The exchange rate is based on the exchange rate as of June 30, 2015, published by the Monetary Authority of Singapore. Investment Date Investment Amount (RM) Investment Amount (U.S. Dollars Reclassification of rental property – Penang Property I Dec 31, 2012 681 181 Gross investment in rental property 681 181 Accumulated depreciation on rental property June 30, 2015 (310 ) (83 ) Reclassified as “Assets held for sale” June 30, 2015 (371 ) (98 ) Net investment in property – Malaysia - - 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. 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 through 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 February 28, commencing with 2017 until the rental agreement expires on February 28, 2019. Property purchased from MaoYe generated a rental income of $26 and $52 for the three and six months ended December 31, 2016, respectively, and $6 and $28 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. 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 August 2016, TTCQ performed a valuation on one of the commercial units and its market value was higher than the carrying amount. Property purchased from JiangHuai did not generate any rental income during the three and six months ended December 31, 2016 and 2015. Other Properties III – Fu Li 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 $648. 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 of 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 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 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. The tenant of this unit had defaulted on payment of the monthly rental due for February 2016, however the rental deposit has been offset and the balance amount recognized as other income. In March 2016, TTCQ issued a legal letter to this tenant on the outstanding amounts, to which the tenant has not responded. A new rental agreement with a new tenant (161 square meters at a monthly rental of RMB 14, or approximately $2) was signed commencing from April 1, 2016 until the rental agreement expires on March 31, 2018. Properties purchased from Fu Li were rented to a third party effective fourth quarter of fiscal year 2012 and generated a rental income of $13 and $26 for the three and six months ended December 31, 2016, respectively, while it generated a rental income of $12 and $22, 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, Trio-Tech (Malaysia) Sdn. Bhd. (“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 being 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 December 31, 2016, the net book value was RM 369, or approximately $82. Summary Total rental income for all investment properties in China was $39 and $78 for the three and six months ended December 31, 2016, respectively, and was $18 and $50, respectively, for the same periods in the last fiscal year. Rental income from the Penang property was nil for both the three and six months ended December 31, 2016 and 2015, as the property in Penang, Malaysia was vacant at the date of this report. In the fourth quarter of fiscal year 2015, the Penang property was reclassified from investment property to assets held for sale. Depreciation expenses for all investment properties in China were $24 and $47 for the three and six months ended December 31, 2016, respectively, and were $26 and $52, respectively, for the same periods in the last fiscal year . |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | Other assets consisted of the following: Dec. 31, 2016 June 30, 2016 (Unaudited) Down-payment for purchase of investment properties $ 1,645 $ 1,645 Down-payment for purchase of property, plant and equipment 291 113 Deposits for rental and utilities 139 138 Currency translation effect (193 ) (108 ) Total $ 1,882 $ 1,788 |
LINES OF CREDIT
LINES OF CREDIT | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
LINES OF CREDIT | The carrying value of the Company’s lines of credit approximates its fair value because the interest rates associated with the lines of credit are adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. As of December 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., Singapore Lines of Credit Ranging from 1.6% to 5.5% - $ 4,626 3,495 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 702 702 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 720 432 As of June 30, 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., Singapore Lines of Credit Ranging from 1.6% to 5.5% - $ 5,745 $ 3,856 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 783 $ 783 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 1,204 $ 602 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 6 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses | |
ACCRUED EXPENSES | Accrued expenses consisted of the following: Dec. 31, 2016 June 30, 2016 (Unaudited) Payroll and related costs $ 1,354 $ 1,311 Commissions 106 47 Customer deposits 166 91 Legal and audit 194 297 Sales tax 92 110 Utilities 128 115 Warranty 67 78 Accrued purchase of materials and property, plant and equipment 89 50 Provision for re-instatement 295 308 Other accrued expenses 339 331 Currency translation effect (149 ) (96 ) Total $ 2,681 $ 2,642 |
WARRANTY ACCRUAL
WARRANTY ACCRUAL | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
WARRANTY ACCRUAL | The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded. The warranty period of the products manufactured by the Company is generally one year or the warranty period agreed with the customer. The Company estimates the warranty costs based on the historical rates of warranty returns. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Dec. 31, 2016 June 30, 2016 (Unaudited) Beginning $ 76 $ 103 Additions charged to cost and expenses 16 80 Utilization / reversal (25 ) (105 ) Currency translation effect (5 ) (2 ) Ending $ 62 $ 76 |
BANK LOANS PAYABLE
BANK LOANS PAYABLE | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
BANK LOANS PAYABLE | Bank loans payable consisted of the following: Dec. 31, 2016 June 30, 2016 (Unaudited) Note payable denominated in RM to a commercial bank for expansion plans in Malaysia, maturing in August 2024, bearing interest at the bank’s prime rate plus 1.50% (5.25% and 5.45% at December 31, 2016 and June 30, 2016) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with a carrying value of $2,577 and 2,898, as at December 31, 2016 and June 30, 2016, respectively. 1,825 2,052 Note payable denominated in U.S. dollars to a commercial bank for expansion plans in Singapore and its subsidiaries, maturing in March 2017, bearing interest at the bank’s lending rate (7.5% for both December 31, 2016 and June 30, 2016) with monthly payments of principal plus interest through April 2017. This note payable is secured by plant and equipment with a carrying value of $259 and 294, as at December 31, 2016 and June 30, 2016, respectively. 61 154 Total Bank loans payable 1,886 2,206 Current portion of bank loan payable 261 352 Currency translation effect on current portion of bank loan (26 ) (10 ) Current portion of bank loan payable 235 342 Long term portion of bank loan payable 1,625 1,854 Currency translation effect on long-term portion of bank loan (171 ) (129 ) Long term portion of bank loans payable $ 1,454 $ 1,725 Future minimum payments (excluding interest) as at December 31, 2016 were as follows: 2017 $ 235 2018 189 2019 199 2020 209 2021 221 Thereafter 636 Total obligations and commitments $ 1,689 Future minimum payments (excluding interest) as at June 30, 2016 were as follows: 2017 $ 342 2018 204 2019 215 2020 226 2021 239 Thereafter 841 Total obligations and commitments $ 2,067 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
COMMITMENTS AND CONTINGENCIES | TTM has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RM 1,697, or approximately $378, based on the exchange rate as at December 30, 2016 published by the Monetary Authority of Singapore, as compared to the capital commitment as at June 30, 2016 amounting to RM 1,153, or approximately $287. Trio-Tech (Tianjin) Co. Ltd. in China has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RMB 2,819, or approximately $406, based on the exchange rate as on December 30, 2016 published by the Monetary Authority of Singapore, as compared to the capital commitment as at June 30, 2016 amounting to RMB 597, or approximately $93. Deposits with banks in China are not insured by the local government or agency, and are consequently exposed to risk of loss. The Company believes the probability of a bank failure, causing loss to the Company, is remote. The Company is, from time to time, the subject of litigation claims and assessments arising out of matters occurring in its normal business operations. In the opinion of management, resolution of these matters will not have a material adverse effect on the Company’s financial statements. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
BUSINESS SEGMENTS | In fiscal year 2017, the Company operates in four segments; the testing service industry (which performs structural and electronic tests of semiconductor devices), the designing and manufacturing of equipment (which equipment tests the structural integrity of integrated circuits and other products), distribution of various products from other manufacturers in Singapore and Southeast Asia and the real estate segment in China. The revenue allocated to individual countries was based on where the customers were located. The allocation of the cost of equipment, the current year investment in new equipment and depreciation expense have been made 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 $20 and $302 for the three and six months ended December 31, 2016, respectively, as compared to $29 and $144, 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 unaudited for the six months ended December 31: Business Segment Information: Six months Dec. 31 Net Revenue Operating Income/ (Loss) Total Assets Depr and Amort. Capital Expenditures Manufacturing 2016 $ 6,991 $ (322 ) $ 8,114 $ 99 $ 78 2015 $ 6,416 $ 371 $ 5,870 $ 107 19 Testing Services 2016 8,227 790 18,325 765 686 2015 7,484 360 20,285 777 295 Distribution 2016 2,779 134 651 2 — 2015 2,334 70 803 — — Real Estate 2016 78 (6 ) 3,147 50 — 2015 50 (70 ) 3,424 53 — Fabrication Services* 2016 — — 29 — — 2015 — — 28 — — Corporate & 2016 — 59 430 — — 2015 — (104 ) 80 — — Total Company 2016 $ 18,075 $ 655 $ 30,696 $ 916 $ 764 2015 $ 16,284 $ 627 $ 30,490 $ 937 $ 314 The following segment information is unaudited for the three months ended December 31: Business Segment Information: Three months Ended Net Operating Income/ Total Depr and Capital Dec. 31 Revenue (Loss) Assets Amort. Expenditures Manufacturing 2016 $ 3,320 $ (229 ) $ 8,144 $ 49 67 2015 $ 3,276 $ 129 $ 5,870 $ 53 $ 2 Testing Services 2016 4,070 388 18,325 377 336 2015 3,701 282 20,285 374 58 Distribution 2016 1,675 100 651 1 — 2015 1,359 51 803 — — Real Estate 2016 39 (8 ) 3,147 25 — 2015 18 (46 ) 3,424 26 — Fabrication Services* 2016 — — 29 — — 2015 — — 28 — — Corporate & Unallocated 2016 — 27 430 — — 2015 — (88 ) 80 — — Total Company 2016 $ 9,104 $ 278 $ 30,696 $ 452 $ 403 2015 $ 8,354 $ 328 $ 30,490 $ 453 $ 60 * Fabrication services is a discontinued operation (Note 19). |
OTHER INCOME
OTHER INCOME | 6 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME | Other income / (expenses) consisted of the following: Three Months Ended Six Months Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2016 2015 2016 2015 Unaudited Unaudited Unaudited Unaudited Interest income 8 4 12 7 Other rental income 25 24 50 48 Exchange gain / (loss) 120 (92 ) 182 92 Other miscellaneous income 50 82 69 79 Total $ 203 $ 18 $ 313 $ 226 |
INCOME TAX
INCOME TAX | 6 Months Ended |
Dec. 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 2016 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 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 withholding 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 December 31, 2016 and June 30, 2016. |
DISCONTINUED OPERATION AND CORR
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN | The Company’s Indonesia operation and the Indonesia operation’s immediate holding company, which comprise the fabrication services segment, suffered continued operating losses from fiscal year 2010 to 2014, and the cash flow was minimal from fiscal year 2009 to 2014. The Company established a restructuring plan to close the fabrication services operation, and in accordance with ASC Topic 205, Presentation of Financial Statement Discontinued Operations (“ASC Topic 205”), from fiscal year 2015 onwards, the Company presented the operation results from fabrication services as a discontinued operation as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component. In accordance with the restructuring plan, the Company’s Indonesia operation is negotiating with its suppliers to settle the outstanding balance of accounts payable of $56 and has no collection for accounts receivable. The Company’s fabrication operation in Batam, Indonesia is in the process of winding up the operations. The Company anticipates that it may incur costs and expenses when the winding up of the subsidiary in Indonesia takes place. Management has assessed the costs and expenses to be immaterial, thus no accrual has been made. 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, the Company presented the operation results from Shanghai as a discontinued operation as the Company believed that no continued cash flow would be generated by the discontinued component (Shanghai subsidiary) and that the Company would have no significant continuing involvement in the operations of the discontinued component. The Shanghai operation has an outstanding balance of accounts payable of $34 and is collecting the accounts receivable of $1. The discontinued operations in Shanghai and in Indonesia incurred general and administrative expenses of $1 for both three and six months ended December 31, 2016, and $2 for both the same periods in the last fiscal year. The Company anticipates that it may incur additional costs and expenses when the winding up of the business of the subsidiary through which the facilities operated takes place. Management has assessed the costs and expenses to be immaterial, thus no accrual has been made. Income / (loss) from discontinued operations was as follows: Three Months Ended Six Months Ended Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2015 Unaudited Unaudited Unaudited Unaudited Revenue $ — $ — $ — $ — Cost of sales — — — — Gross margin — — — — Operating expenses: General and administrative 1 2 1 2 Total 1 2 1 2 Loss from discontinued operations (1 ) (2 ) (1 ) (2 ) Other income / (expenses) (3 ) 8 (2 ) (2 ) Income / (loss) from discontinued operations $ (4 ) $ 6 $ (3 ) $ (4 ) 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 | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
EARNINGS PER SHARE | The Company adopted ASC Topic 260, Earnings Per Share. As of December 31, 2016, there were 455,000 stock options outstanding, of which 125,000 stock options with exercise prices ranging from $3.62 to $3.81 per share were excluded in the computation of diluted EPS because they were anti-dilutive. As of December 31, 2015, there were 315,000 stock options outstanding, of which 200,000 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. 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 Six Months Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ 316 $ 188 $ 619 $ 452 (Loss) / income attributable to Trio-Tech International common shareholders from discontinued operations, net of tax (6 ) 2 (6 ) (3 ) Net Income Attributable to Trio-Tech International Common Shareholders $ 310 $ 190 $ 613 $ 449 Weighted average number of common shares outstanding - basic 3,513 3,513 3,513 3,513 Dilutive effect of stock options 56 16 39 12 Number of shares used to compute earnings per share - diluted 3,569 3,529 3,552 3,525 Basic earnings per share from continuing operations attributable to Trio-Tech International $ 0.09 0.05 0.18 0.13 Basic earnings per share from discontinued operations attributable to Trio-Tech International — — — — Basic earnings per share from net income attributable to Trio-Tech International $ 0.09 $ 0.05 $ 0.18 $ 0.13 Diluted earnings per share from continuing operations attributable to Trio-Tech International $ 0.09 0.05 0.17 0.13 Diluted earnings per share from discontinued operations attributable to Trio-Tech International — — — — Diluted earnings per share from net income attributable to Trio-Tech International $ 0.09 $ 0.05 $ 0.17 $ 0.13 |
STOCK OPTIONS
STOCK OPTIONS | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
STOCK OPTIONS | On September 24, 2007, the Company’s Board of Directors unanimously adopted the 2007 Employee Stock Option Plan (the “2007 Employee Plan”) and the 2007 Directors Equity Incentive Plan (the “2007 Directors Plan”) each of which was approved by the shareholders on December 3, 2007. Each of those plans was amended 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 its 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. At present, the 2007 Directors Plan provides for awards of up to 500,000 shares of the Company’s Common Stock to the members of the Company’s Board of Directors in the form of non-qualified options and restricted stock. These two plans are administered by the Board, which also establishes the terms of the awards. Assumptions The fair value for the options granted were estimated using the Black-Scholes option pricing model with the following weighted average assumptions, assuming no expected dividends: Six Months Ended December 31, 2016 2015 Expected volatility 62.05% to 104.94% 62.05% to 104.94% Risk-free interest rate 0.30% to 0.78% 0.30% to 0.78% Expected life (years) 2.50 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. 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). The Company did not grant any options pursuant to the 2007 Employee Plan during the six months ended December 31, 2016. There were no options exercised during the six months ended December 31, 2016. The Company recognized stock-based compensation expenses of $1 in the six months ended December 31, 2016 under the 2007 Employee Plan. The balance unamortized stock-based compensation of $3 based on fair value on the grant date related to options granted under the 2007 Employee Plan is to be recognized over a period of three years. The weighted-average remaining contractual term for non-vested options was 4.22 years. The Company did not grant any options pursuant to the 2007 Employee Plan during the six months ended December 31, 2015, The Company recognized stock-based compensation expenses of $4 in the six months ended December 31, 2015 under the 2007 Employee Plan. There was no balance of unamortized stock-based compensation based on fair value on the grant date related to options granted under the 2007. No stock options were exercised during the six months ended December 31, 2015. The weighted-average remaining contractual term for non-vested options was 0.94 years. As of December 31, 2016, there were vested employee stock options covering a total of 60,000 shares of Common Stock. The weighted-average exercise price was $3.26 and the weighted average contractual term was 2.26 years. The total fair value of vested employee stock options was $195 and remains outstanding as of December 31, 2016. As of December 31, 2015, there were vested employee stock options covering a total of 41,250 shares of Common Stock. The weighted-average exercise price was $3.29 and the weighted average contractual term was 2.86 years. The total fair value of vested employee stock options was $136 and remains outstanding as of December 31, 2015. A summary of option activities under the 2007 Employee Plan during the six-month period ended December 31, 2016 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2016 90,000 $ 3.26 3.42 $ 30 Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at December 31, 2016 90,000 $ 3.26 2.91 $ 10 Exercisable at December 31, 2016 60,000 $ 3.26 2.26 $ 8 A summary of option activities under the 2007 Employee Plan during the six-month period ended December 31, 2015 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 - - - - Exercised - - - - Forfeited or expired (80,000 ) 4.35 - - Outstanding at December 31, 2015 50,000 $ 3.26 2.87 $ - Exercisable at December 31, 2015 41,250 $ 3.29 2.86 $ - A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2016 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2016 38,750 $ 3.22 Granted - - Vested (8,750 ) 3.10 Forfeited - - Non-vested at December 31, 2016 30,000 $ 3.26 A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2015 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2015 17,500 $ 1.69 Granted - - Vested (8,750 ) (1.69 ) Forfeited - - Non-vested at December 31, 2015 8,750 $ 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 directors in the form of non-qualified options and restricted stock. The exercise price of the non-qualified options is 100% of the fair value of the underlying shares on the grant date. The options have five-year contractual terms and are generally exercisable immediately as of the grant date. During the first two quarters of fiscal year 2017, the Company did not grant any options pursuant to the 2007 Directors Plan. There were no stock options exercised during the six-month period ended December 31, 2016. The Company did not recognize any stock-based compensation expenses during the six months ended December 31, 2016. 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, 2016. No stock options were exercised during the six months ended December 31, 2015. A summary of option activities under the 2007 Directors Plan during the six months ended December 31, 2016 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2016 415,000 $ 3.14 3.29 $ 198 Granted - - - - Exercised - - - - Forfeited or expired (50,000 ) 2.30 - - Outstanding at December 31, 2016 365,000 $ 3.25 3.18 $ 68 Exercisable at December 31, 2016 365,000 $ 3.25 3.18 $ 68 A summary of option activities under the 2007 Directors Plan during the six months ended December 31, 2015 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 50,000 2.69 - - Exercised - - - - Forfeited or expired (150,000 ) 4.35 - - Outstanding at December 31, 2015 265,000 $ 3.07 2.98 $ 40 Exercisable at December 31, 2015 265,000 $ 3.07 2.98 $ 40 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | In accordance with the ASC Topic 825, the following presents assets and liabilities measured and carried at fair value and classified by level of the following fair value measurement hierarchy in accordance to ASC 820: There were no transfers between Levels 1 and 2 during the three and six months ended December 31, 2016 and 2015. Term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments. Restricted term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments. Lines of credit (Level 3) – The carrying value of the lines of credit approximates fair value due to the short-term nature of the obligations. Bank loans payable (Level 3) – The carrying value of the Company’s bank loan payables approximates its fair value as the interest rates associated with long-term debt is adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. |
ORGANIZATION AND BASIS OF PRE30
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Dec. 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. 100% Bangkok, Thailand (49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) 55% Penang and Selangor, Malaysia Trio-Tech (Kuala Lumpur) Sdn. Bhd. (100% owned by Trio-Tech Malaysia Sdn. Bhd.) 55% Selangor, Malaysia 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 |
TERM DEPOSITS (Tables)
TERM DEPOSITS (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Term Deposits Tables | |
TERM DEPOSITS | Dec. 31, 2016 June 30, 2016 (Unaudited) Short-term deposits $ 723 $ 301 Currency translation effect on short-term deposits (65 ) (6 ) Total short-term deposits 658 295 Restricted term deposits 2,070 2,085 Currency translation effect on restricted term deposits (149 ) (18 ) Total restricted term deposits 1,921 2,067 Total Term deposits $ 2,579 $ 2,362 |
ACCOUNTS RECEIVABLE AND ALLOW32
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable And Allowance For Doubtful Accounts Tables | |
Changes in the allowance for doubtful accounts | Dec. 31, 2016 June 30, 2016 (Unaudited) Beginning $ 270 $ 313 Additions charged to expenses 65 21 Recovered / write-off (80 ) (48 ) Currency translation effect (12 ) (16 ) Ending $ 243 $ 270 |
LOAN RECEIVABLE FROM PROPERTY D
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Loan Receivable From Property Development Projects Tables | |
Companys loans receivable from property development projects | Loan Expiry Date Loan Amount (RMB) Loan Amount (U.S. Dollars) Short-term loan receivables JiangHuai (Project – Yu Jin Jiang An) May 31, 2013 2,000 325 Less: allowance for doubtful receivables (2,000 ) (325 ) Net loan receivables from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment property (5,000 ) (814 ) Net loan receivables from property development projects - - Loan Expiry Date Loan Amount (RMB) Loan Amount (U.S. Dollars) Short-term loan receivables JiangHuai (Project – Yu Jin Jiang An) May 31, 2013 2,000 325 Less: allowance for doubtful receivables (2,000 ) (325 ) Net loan receivables from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment property (5,000 ) (814 ) Net loan receivables from property development projects - - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Inventories Tables | |
Inventories | Dec. 31, 2016 June 30, 2016 (Unaudited) Raw materials $ 1,025 $ 967 Work in progress 1,201 909 Finished goods 207 279 Less: provision for obsolete inventory (661 ) (697 ) Currency translation effect (106 ) 2 $ 1,666 $ 1,460 |
Changes in provision for obsolete inventory | Dec. 31, 2016 June 30, 2016 (Unaudited) Beginning $ 697 $ 764 Additions charged to expenses - 22 Usage - disposition (4 ) (86 ) Currency translation effect (32 ) (3 ) Ending $ 661 $ 697 |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 6 Months Ended |
Dec. 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 December 31, 2016. The exchange rate is based on the exchange rate as of December 30, 2016, published by the Monetary Authority of Singapore. Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I - MaoYe Jan 04, 2008 5,554 894 Purchase of rental property – Property II - JiangHuai Jan 06, 2010 3,600 580 Purchase of rental property – Property III - Fu Li Apr 08, 2010 4,025 648 Currency translation - (225 ) Gross investment in rental property 13,179 1,897 Accumulated depreciation on rental property Dec 31, 2016 (4,608 ) (663 ) Net investment in property – China 8,571 1,234 The following table presents the Company’s investment in properties in China as of June 30, 2016. The exchange rate is based on the exchange rate as of June 30, 2016, published by the Monetary Authority of Singapore. Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I - MaoYe Jan 04, 2008 5,554 894 Purchase of rental property – Property II - JiangHuai Jan 06, 2010 3,600 580 Purchase of rental property – Property III - Fu Li Apr 08, 2010 4,025 648 Currency translation - (139 ) Gross investment in rental property 13,179 1,983 Accumulated depreciation on rental property Jun 30, 2016 (4,278 ) (643 ) Net investment in property – China 8,901 1,340 The following table presents the Company’s investment properties in Malaysia as of December 31, 2016. The exchange rate is based on the exchange rate as of June 30, 2015, published by the Monetary Authority of Singapore. Investment Date Investment Amount (RM) Investment Amount (U.S. Dollars Reclassification of rental property – Penang Property I Dec 31, 2012 681 181 Gross investment in rental property 681 181 Accumulated depreciation on rental property June 30, 2015 (310 ) (83 ) Reclassified as “Assets held for sale” June 30, 2015 (371 ) (98 ) Net investment in property – Malaysia - - The following table presents the Company’s investment properties in Malaysia as of June 30, 2016. The exchange rate is based on the exchange rate as of June 30, 2015, published by the Monetary Authority of Singapore. Investment Date Investment Amount (RM) Investment Amount (U.S. Dollars Reclassification of rental property – Penang Property I Dec 31, 2012 681 181 Gross investment in rental property 681 181 Accumulated depreciation on rental property June 30, 2015 (310 ) (83 ) Reclassified as “Assets held for sale” June 30, 2015 (371 ) (98 ) Net investment in property – Malaysia - - |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other assets | Dec. 31, 2016 June 30, 2016 (Unaudited) Down-payment for purchase of investment properties $ 1,645 $ 1,645 Down-payment for purchase of property, plant and equipment 291 113 Deposits for rental and utilities 139 138 Currency translation effect (193 ) (108 ) Total $ 1,882 $ 1,788 |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Lines Of Credit Tables | |
Lines of credit | As of December 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., Singapore Lines of Credit Ranging from 1.6% to 5.5% - $ 4,626 3,495 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 702 702 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 720 432 As of June 30, 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., Singapore Lines of Credit Ranging from 1.6% to 5.5% - $ 5,745 $ 3,856 Trio-Tech (Malaysia) Sdn. Bhd. Lines of Credit Ranging from 6.3% to 6.7% - $ 783 $ 783 Trio-Tech (Tianjin) Co., Ltd. Lines of Credit Ranging from 4.9% to 6.3% - $ 1,204 $ 602 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses Tables | |
Accrued expenses | Dec. 31, 2016 June 30, 2016 (Unaudited) Payroll and related costs $ 1,354 $ 1,311 Commissions 106 47 Customer deposits 166 91 Legal and audit 194 297 Sales tax 92 110 Utilities 128 115 Warranty 67 78 Accrued purchase of materials and property, plant and equipment 89 50 Provision for re-instatement 295 308 Other accrued expenses 339 331 Currency translation effect (149 ) (96 ) Total $ 2,681 $ 2,642 |
WARRANTY ACCRUAL (Tables)
WARRANTY ACCRUAL (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Warranty Accrual Tables | |
Warranty liability | Dec. 31, 2016 June 30, 2016 (Unaudited) Beginning $ 76 $ 103 Additions charged to cost and expenses 16 80 Utilization / reversal (25 ) (105 ) Currency translation effect (5 ) (2 ) Ending $ 62 $ 76 |
BANK LOANS PAYABLE (Tables)
BANK LOANS PAYABLE (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Bank Loans Payable Tables | |
Bank loans payable | Dec. 31, 2016 June 30, 2016 (Unaudited) Note payable denominated in RM to a commercial bank for expansion plans in Malaysia, maturing in August 2024, bearing interest at the bank’s prime rate plus 1.50% (5.25% and 5.45% at December 31, 2016 and June 30, 2016) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with a carrying value of $2,577 and 2,898, as at December 31, 2016 and June 30, 2016, respectively. 1,825 2,052 Note payable denominated in U.S. dollars to a commercial bank for expansion plans in Singapore and its subsidiaries, maturing in March 2017, bearing interest at the bank’s lending rate (7.5% for both December 31, 2016 and June 30, 2016) with monthly payments of principal plus interest through April 2017. This note payable is secured by plant and equipment with a carrying value of $259 and 294, as at December 31, 2016 and June 30, 2016, respectively. 61 154 Total Bank loans payable 1,886 2,206 Current portion of bank loan payable 261 352 Currency translation effect on current portion of bank loan (26 ) (10 ) Current portion of bank loan payable 235 342 Long term portion of bank loan payable 1,625 1,854 Currency translation effect on long-term portion of bank loan (171 ) (129 ) Long term portion of bank loans payable $ 1,454 $ 1,725 |
Future minimum payments | 2017 $ 235 2018 189 2019 199 2020 209 2021 221 Thereafter 636 Total obligations and commitments $ 1,689 2017 $ 342 2018 204 2019 215 2020 226 2021 239 Thereafter 841 Total obligations and commitments $ 2,067 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Business Segments Tables | |
BUSINESS SEGMENTS | Business Segment Information: Six months Dec. 31 Net Revenue Operating Income/ (Loss) Total Assets Depr and Amort. Capital Expenditures Manufacturing 2016 $ 6,991 $ (322 ) $ 8,114 $ 99 $ 78 2015 $ 6,416 $ 371 $ 5,870 $ 107 19 Testing Services 2016 8,227 790 18,325 765 686 2015 7,484 360 20,285 777 295 Distribution 2016 2,779 134 651 2 — 2015 2,334 70 803 — — Real Estate 2016 78 (6 ) 3,147 50 — 2015 50 (70 ) 3,424 53 — Fabrication Services* 2016 — — 29 — — 2015 — — 28 — — Corporate & 2016 — 59 430 — — 2015 — (104 ) 80 — — Total Company 2016 $ 18,075 $ 655 $ 30,696 $ 916 $ 764 2015 $ 16,284 $ 627 $ 30,490 $ 937 $ 314 The following segment information is unaudited for the three months ended December 31: Business Segment Information: Three months Ended Net Operating Income/ Total Depr and Capital Dec. 31 Revenue (Loss) Assets Amort. Expenditures Manufacturing 2016 $ 3,320 $ (229 ) $ 8,144 $ 49 67 2015 $ 3,276 $ 129 $ 5,870 $ 53 $ 2 Testing Services 2016 4,070 388 18,325 377 336 2015 3,701 282 20,285 374 58 Distribution 2016 1,675 100 651 1 — 2015 1,359 51 803 — — Real Estate 2016 39 (8 ) 3,147 25 — 2015 18 (46 ) 3,424 26 — Fabrication Services* 2016 — — 29 — — 2015 — — 28 — — Corporate & Unallocated 2016 — 27 430 — — 2015 — (88 ) 80 — — Total Company 2016 $ 9,104 $ 278 $ 30,696 $ 452 $ 403 2015 $ 8,354 $ 328 $ 30,490 $ 453 $ 60 * Fabrication services is a discontinued operation (Note 19). |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other income | Three Months Ended Six Months Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2016 2015 2016 2015 Unaudited Unaudited Unaudited Unaudited Interest income 8 4 12 7 Other rental income 25 24 50 48 Exchange gain / (loss) 120 (92 ) 182 92 Other miscellaneous income 50 82 69 79 Total $ 203 $ 18 $ 313 $ 226 |
DISCONTINUED OPERATION AND CO43
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Discontinued Operation And Corresponding Restructuring Plan Tables | |
Income / (loss) from discontinued operations | Three Months Ended Six Months Ended Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2015 Unaudited Unaudited Unaudited Unaudited Revenue $ — $ — $ — $ — Cost of sales — — — — Gross margin — — — — Operating expenses: General and administrative 1 2 1 2 Total 1 2 1 2 Loss from discontinued operations (1 ) (2 ) (1 ) (2 ) Other income / (expenses) (3 ) 8 (2 ) (2 ) Income / (loss) from discontinued operations $ (4 ) $ 6 $ (3 ) $ (4 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share Tables | |
Reconciliation of the weighted average shares | Three Months Ended Six Months Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ 316 $ 188 $ 619 $ 452 (Loss) / income attributable to Trio-Tech International common shareholders from discontinued operations, net of tax (6 ) 2 (6 ) (3 ) Net Income Attributable to Trio-Tech International Common Shareholders $ 310 $ 190 $ 613 $ 449 Weighted average number of common shares outstanding - basic 3,513 3,513 3,513 3,513 Dilutive effect of stock options 56 16 39 12 Number of shares used to compute earnings per share - diluted 3,569 3,529 3,552 3,525 Basic earnings per share from continuing operations attributable to Trio-Tech International $ 0.09 0.05 0.18 0.13 Basic earnings per share from discontinued operations attributable to Trio-Tech International - - - - Basic earnings per share from net income attributable to Trio-Tech International $ 0.09 $ 0.05 $ 0.18 $ 0.13 Diluted earnings per share from continuing operations attributable to Trio-Tech International $ 0.09 0.05 0.17 0.13 Diluted earnings per share from discontinued operations attributable to Trio-Tech International - - - - Diluted earnings per share from net income attributable to Trio-Tech International $ 0.09 $ 0.05 $ 0.17 $ 0.13 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Fair value weighted average assumptions | Six Months Ended December 31, 2016 2015 Expected volatility 62.05% to 104.94% 62.05% to 104.94% Risk-free interest rate 0.30% to 0.78% 0.30% to 0.78% Expected life (years) 2.50 2.50 |
Company's non-vested employee stock options | Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2016 38,750 $ 3.22 Granted - - Vested (8,750 ) 3.10 Forfeited - - Non-vested at December 31, 2016 30,000 $ 3.26 Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2015 17,500 $ 1.69 Granted - - Vested (8,750 ) (1.69 ) Forfeited - - Non-vested at December 31, 2015 8,750 $ 1.69 |
2007 Employee Plan [Member] | |
Option activities | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2016 90,000 $ 3.26 3.42 $ 30 Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at December 31, 2016 90,000 $ 3.26 2.91 $ 10 Exercisable at December 31, 2016 60,000 $ 3.26 2.26 $ 8 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 - - - - Exercised - - - - Forfeited or expired (80,000 ) 4.35 - - Outstanding at December 31, 2015 50,000 $ 3.26 2.87 $ - Exercisable at December 31, 2015 41,250 $ 3.29 2.86 $ - |
2007 Directors Equity Incentive Plan [Member] | |
Option activities | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2016 415,000 $ 3.14 3.29 $ 198 Granted - - - - Exercised - - - - Forfeited or expired (50,000 ) 2.30 - - Outstanding at December 31, 2016 365,000 $ 3.25 3.18 $ 68 Exercisable at December 31, 2016 365,000 $ 3.25 3.18 $ 68 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 50,000 2.69 - - Exercised - - - - Forfeited or expired (150,000 ) 4.35 - - Outstanding at December 31, 2015 265,000 $ 3.07 2.98 $ 40 Exercisable at December 31, 2015 265,000 $ 3.07 2.98 $ 40 |
ORGANIZATION AND BASIS OF PRE46
ORGANIZATION AND BASIS OF PRESENTATION (Details) | Dec. 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% |
TERM DEPOSITS (Details)
TERM DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Term Deposits Details | ||
Short-term deposits | $ 723 | $ 301 |
Currency translation effect on short-term deposits | (65) | (6) |
Total short-term deposits | 658 | 295 |
Restricted term deposits | 2,070 | 2,085 |
Currency translation effect on restricted term deposits | (149) | (18) |
Total restricted term deposits | 1,921 | 2,067 |
Total Term deposits | $ 2,579 | $ 2,362 |
ACCOUNTS RECEIVABLE AND ALLOW48
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Jun. 30, 2016 | |
Notes to Financial Statements | ||
Beginning | $ 270 | $ 313 |
Additions charged to expenses | 65 | 21 |
Recovered / written-off | (80) | (48) |
Currency translation effect | (12) | (16) |
Ending | $ 243 | $ 270 |
LOANS RECEIVABLE FROM PROPERT49
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
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 | 0 | 0 |
Jiang Huai [Member] | ||
Short-term loan receivables | ||
Short-term | 325 | 325 |
Less: allowance for doubtful receivables | (325) | (325) |
Short-term loan receivables, net | 0 | 0 |
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 | 0 | 0 |
Yuan RMB | Jiang Huai [Member] | ||
Short-term loan receivables | ||
Short-term | 2,000 | 2,000 |
Less: allowance for doubtful receivables | (2,000) | (2,000) |
Short-term loan receivables, net | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 |
Notes to Financial Statements | |||
Raw materials | $ 1,025 | $ 967 | |
Work in progress | 1,201 | 909 | |
Finished goods | 207 | 279 | |
Less: provision for obsolete inventory | (661) | (697) | $ (764) |
Currency translation effect | (106) | 2 | |
Inventory net | $ 1,666 | $ 1,460 |
INVENTORIES (Details 1)
INVENTORIES (Details 1) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Jun. 30, 2016 | |
Notes to Financial Statements | ||
Beginning | $ 697 | $ 764 |
Additions charged to expenses | 0 | 22 |
Usage - disposition | (4) | (86) |
Currency translation effect | (32) | (3) |
Ending | $ 661 | $ 697 |
ASSETS HELD FOR SALE (Details N
ASSETS HELD FOR SALE (Details Narrative) - Property, Plant and Equipment [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Assets held for sale, net book value | $ 82 | $ 92 |
Ringgit RM | ||
Assets held for sale, net book value | $ 371 | $ 371 |
INVESTMENT PROPERTIES (Details)
INVESTMENT PROPERTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Reclassified as Assets held for sale | $ 82 | $ 92 |
Penang [Member] | ||
Investment Amount | 181 | 181 |
Malaysia [Member] | ||
Gross investment in rental property | 181 | 181 |
Accumulated depreciation on rental property | (83) | (83) |
Reclassified as Assets held for sale | (98) | (98) |
Net investment in property | 0 | 0 |
Jiang Huai [Member] | ||
Investment Amount | 580 | 580 |
China [Member] | ||
Currency translation | (225) | (139) |
Gross investment in rental property | 1,897 | 1,983 |
Accumulated depreciation on rental property | (663) | (643) |
Net investment in property | 1,234 | 1,340 |
FuLi [Member] | ||
Investment Amount | 648 | 648 |
MaoYe [Member] | ||
Investment Amount | 894 | 894 |
Ringgit RM | Malaysia [Member] | ||
Gross investment in rental property | 681 | 681 |
Accumulated depreciation on rental property | (310) | (310) |
Reclassified as Assets held for sale | (371) | (371) |
Net investment in property | 0 | 0 |
Yuan RMB | Jiang Huai [Member] | ||
Investment Amount | 3,600 | 3,600 |
Yuan RMB | China [Member] | ||
Currency translation | 0 | 0 |
Gross investment in rental property | 13,179 | 13,179 |
Accumulated depreciation on rental property | (4,608) | (4,278) |
Net investment in property | 8,571 | 8,901 |
Yuan RMB | FuLi [Member] | ||
Investment Amount | 4,025 | 4,025 |
Yuan RMB | MaoYe [Member] | ||
Investment Amount | 5,554 | 5,554 |
Penang-Malaysia RM [Member] | Penang [Member] | ||
Investment Amount | $ 681 | $ 681 |
INVESTMENT PROPERTIES (Details
INVESTMENT PROPERTIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
MaoYe [Member] | ||||
Rental income | $ 26 | $ 6 | $ 52 | $ 28 |
China [Member] | ||||
Rental income | 39 | 18 | 78 | 50 |
Depreciation expense | 24 | 26 | 47 | 52 |
FuLi [Member] | ||||
Rental income | $ 13 | $ 12 | $ 26 | $ 22 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Down payment for purchase of investment properties | $ 1,645 | $ 1,645 |
Down payment for purchase of property, plant and equipment | 291 | 113 |
Deposit for rental and utilities | 139 | 138 |
Currency translation effect | (193) | (108) |
Ending balance | $ 1,882 | $ 1,788 |
LINES OF CREDIT (Details)
LINES OF CREDIT (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Jun. 30, 2016 | |
TrioTech Tianjin Credit Facility [Member] | ||
Type of facility | Lines of Credit | Lines of Credit |
Credit limitation | $ 720 | $ 1,204 |
Unused credit | $ 432 | $ 602 |
TrioTech Tianjin Credit Facility [Member] | MinimumMember | ||
Interest rate | 4.90% | 4.90% |
TrioTech Tianjin Credit Facility [Member] | Maximum Member | ||
Interest rate | 6.30% | 6.30% |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | ||
Type of facility | Lines of Credit | Lines of Credit |
Credit limitation | $ 702 | $ 783 |
Unused credit | $ 702 | $ 783 |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | MinimumMember | ||
Interest rate | 6.30% | 6.30% |
TrioTech Malaysia Sdn Bhd Credit Facility [Member] | Maximum Member | ||
Interest rate | 6.70% | 6.70% |
TrioTech Intl Credit Facility [Member] | ||
Type of facility | Lines of Credit | Lines of Credit |
Credit limitation | $ 4,626 | $ 5,745 |
Unused credit | $ 3,495 | $ 3,856 |
TrioTech Intl Credit Facility [Member] | MinimumMember | ||
Interest rate | 1.60% | 1.60% |
TrioTech Intl Credit Facility [Member] | Maximum Member | ||
Interest rate | 5.50% | 5.50% |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Notes to Financial Statements | ||
Payroll and related costs | $ 1,354 | $ 1,311 |
Commissions | 106 | 47 |
Customer deposits | 166 | 91 |
Legal and audit | 194 | 297 |
Sales tax | 92 | 110 |
Utilities | 128 | 115 |
Warranty | 67 | 78 |
Accrued purchase of materials | 89 | 50 |
Provision for re-instatement | 295 | 308 |
Other accrued expenses | 339 | 331 |
Currency translation effect | (149) | (96) |
Total | $ 2,681 | $ 2,642 |
WARRANTY ACCRUAL (Details)
WARRANTY ACCRUAL (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Jun. 30, 2016 | |
Notes to Financial Statements | ||
Beginning | $ 76 | $ 103 |
Additions charged to cost and expenses | 16 | 80 |
Utilization / reversal | (25) | (105) |
Currency translation effect | (5) | (2) |
Ending | $ 62 | $ 76 |
WARRANTY ACCRUAL (Details Narra
WARRANTY ACCRUAL (Details Narratives) | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Product warranty term | One year or the warranty period agreed with the customer |
BANK LOANS PAYABLE (Details)
BANK LOANS PAYABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Bank loan payable | $ 1,886 | $ 2,206 |
Current portion of bank loan payable | 261 | 352 |
Long term portion of bank loan payable | 1,625 | 1,854 |
Currency translation effect on short-term portion of bank loan | (26) | (10) |
Currency translation effect on long-term portion of bank loan | (171) | (129) |
Current portion of bank loan payable | 235 | 342 |
Long term portion of bank loans payable | 1,454 | 1,725 |
Bank Note [Member] | ||
Bank loan payable | 1,825 | 2,052 |
NotesPayableOtherPayablesMember | ||
Bank loan payable | $ 61 | $ 154 |
BANK LOANS PAYABLE (Details 1)
BANK LOANS PAYABLE (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Notes to Financial Statements | ||
2,017 | $ 235 | $ 342 |
2,018 | 189 | 204 |
2,019 | 199 | 215 |
2,020 | 209 | 226 |
2,021 | 221 | 239 |
Thereafter | 636 | 841 |
Total obligations and commitments | $ 1,689 | $ 2,067 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Malaysia [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 378 | $ 287 |
Tianjin [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 406 | 93 |
Ringgit RM | Malaysia [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 1,697 | 1,153 |
Yuan RMB | Tianjin [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 2,819 | $ 597 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net revenue | $ 9,104 | $ 8,354 | $ 18,075 | $ 16,284 |
Operating Income (Loss) | 278 | 328 | 655 | 627 |
Total assets | 30,696 | 30,490 | 30,696 | 30,490 |
Depreciation and amortization | 452 | 453 | 916 | 937 |
Capital expenditures | 403 | 60 | 764 | 314 |
RealEstate [Member] | ||||
Net revenue | 39 | 18 | 78 | 50 |
Operating Income (Loss) | (8) | (46) | (6) | (70) |
Total assets | 3,147 | 3,424 | 3,147 | 3,424 |
Depreciation and amortization | 25 | 26 | 50 | 53 |
Capital expenditures | 0 | 0 | 0 | 0 |
Manufacturing [Member] | ||||
Net revenue | 3,320 | 3,276 | 6,991 | 6,416 |
Operating Income (Loss) | (229) | 129 | (322) | 371 |
Total assets | 8,114 | 5,870 | 8,114 | 5,870 |
Depreciation and amortization | 49 | 53 | 99 | 107 |
Capital expenditures | 67 | 2 | 78 | 19 |
Testing Services [Member] | ||||
Net revenue | 4,070 | 3,701 | 8,227 | 7,484 |
Operating Income (Loss) | 388 | 282 | 790 | 360 |
Total assets | 18,325 | 20,285 | 18,325 | 20,285 |
Depreciation and amortization | 377 | 374 | 765 | 777 |
Capital expenditures | 336 | 58 | 686 | 295 |
Distribution [Member] | ||||
Net revenue | 1,675 | 1,359 | 2,779 | 2,334 |
Operating Income (Loss) | 100 | 51 | 134 | 70 |
Total assets | 651 | 803 | 651 | 803 |
Depreciation and amortization | 1 | 0 | 2 | 0 |
Capital expenditures | 0 | 0 | 0 | 0 |
Fabrication Services [Member] | ||||
Net revenue | 0 | 0 | 0 | 0 |
Operating Income (Loss) | 0 | 0 | 0 | 0 |
Total assets | 29 | 28 | 29 | 28 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 | 0 |
CorporateAndUnallocated [Member] | ||||
Net revenue | 0 | 0 | 0 | 0 |
Operating Income (Loss) | 27 | (88) | 59 | (104) |
Total assets | 430 | 80 | 430 | 80 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Capital expenditures | $ 0 | $ 0 | $ 0 | $ 0 |
BUSINESS SEGMENTS (Details Narr
BUSINESS SEGMENTS (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net revenue | $ 9,104 | $ 8,354 | ||
Inter Segment [Member] | ||||
Net revenue | $ 18,075 | $ 16,284 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income Net Details | ||||
Interest income | $ 8 | $ 4 | $ 12 | $ 7 |
Other rental income | 25 | 24 | 50 | 48 |
Exchange gain/ (loss) | 120 | (92) | 182 | 92 |
Other miscellaneous income | 50 | 82 | 69 | 79 |
Total | $ 203 | $ 18 | $ 313 | $ 226 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 67 | $ 86 | $ 150 | $ 153 |
DISCONTINUED OPERATION AND CO67
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Notes to Financial Statements | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross margin | 0 | 0 | 0 | 0 |
Operating expenses | ||||
General and administrative | 1 | 2 | 1 | 2 |
Total | 1 | 2 | 1 | 2 |
Loss from discontinued operations | (1) | (2) | (1) | (2) |
Other income / (expenses) | (3) | 8 | (2) | (2) |
Income / (loss) from discontinued operations | $ (4) | $ 6 | $ (3) | $ (4) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Notes to Financial Statements | ||||
Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ 316 | $ 188 | $ 619 | $ 452 |
(Loss)/ income attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | (6) | 2 | (6) | (3) |
Net income attributable to Trio-Tech International common shareholders | $ 310 | $ 190 | $ 613 | $ 449 |
Weighted average number of common shares outstanding - basic | 3,513 | 3,513 | 3,513 | 3,513 |
Dilutive effect of stock options | 56 | 16 | 39 | 12 |
Number of shares used to compute earnings per share - diluted | 3,569 | 3,529 | 3,552 | 3,525 |
Basic earnings per share from continuing operations attributable to Trio-Tech International | $ 0.09 | $ 0.05 | $ 0.18 | $ 0.13 |
Basic earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | 0 | 0 |
Basic Earnings per Share from Net Income Attributable to Trio-Tech International | 0.09 | 0.05 | 0.18 | 0.13 |
Diluted earnings per share from continuing operations attributable to Trio-Tech International | 0.09 | 0.05 | 0.17 | 0.13 |
Diluted earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | 0 | 0 |
Diluted Earnings per Share from Net Income Attributable to Trio-Tech International | $ 0.09 | $ 0.05 | $ 0.17 | $ 0.13 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - $ / shares | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive securities | 125,000 | 200,000 |
EmployeeStockOptionMember | ||
Options outstanding | 455,000 | 315,000 |
EmployeeStockOptionMember | MinimumMember | ||
Exercise Price | $ 3.62 | $ 3.10 |
EmployeeStockOptionMember | Maximum Member | ||
Exercise Price | $ 3.81 | $ 3.81 |
STOCK OPTIONS (Details)
STOCK OPTIONS (Details) | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Expected life (years) | 2 years 6 months | 2 years 6 months |
MinimumMember | ||
Expected volatility | 62.05% | 62.05% |
Risk-free interest rate | 0.30% | 0.30% |
Maximum Member | ||
Expected volatility | 104.94% | 104.94% |
Risk-free interest rate | 0.78% | 0.78% |
STOCK OPTIONS (Details 1)
STOCK OPTIONS (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
2007 Directors Equity Incentive Plan [Member] | ||
Outstanding at beginning of period | 415,000 | 365,000 |
Granted, Options | 0 | 50,000 |
Exercised, Options | 0 | 0 |
Forfeited or expired, Options | (50,000) | (150,000) |
Options outstanding | 365,000 | 265,000 |
Exercisable at end of period | 365,000 | 265,000 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.14 | $ 3.65 |
Granted, Weighted- Average Exercise Price | 0 | 2.69 |
Exercised, Weighted- Average Exercise Price | 0 | 0 |
Forfeited or expired, Weighted- Average Exercise Price | 2.30 | 4.35 |
Outstanding at end of period, Weighted- Average Exercise Price | 3.25 | 3.07 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 3.25 | $ 3.07 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 3 months 14 days | 1 year 11 months 26 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 2 months 5 days | 2 years 11 months 23 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 2 months 5 days | 2 years 11 months 23 days |
Outstanding at beginning of period, Aggregate Intrinsic Value | $ 198 | $ 53 |
Outstanding at end of period, Aggregate Intrinsic Value | 68 | 40 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 68 | $ 40 |
2007 Employee Plan [Member] | ||
Outstanding at beginning of period | 90,000 | 130,000 |
Forfeited or expired, Options | 0 | (80,000) |
Options outstanding | 90,000 | 50,000 |
Exercisable at end of period | 60,000 | 41,250 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.26 | $ 3.93 |
Forfeited or expired, Weighted- Average Exercise Price | 0 | 4.35 |
Outstanding at end of period, Weighted- Average Exercise Price | 3.26 | 3.26 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 3.26 | $ 3.29 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 5 months 1 day | 1 year 6 months 25 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 10 months 28 days | 2 years 10 months 13 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 3 months 4 days | 2 years 10 months 10 days |
Outstanding at beginning of period, Aggregate Intrinsic Value | $ 30 | |
Outstanding at end of period, Aggregate Intrinsic Value | 10 | |
Exercisable at end of period, Aggregate Intrinsic Value | $ 8 |
STOCK OPTIONS (Details 2)
STOCK OPTIONS (Details 2) - $ / shares | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Notes to Financial Statements | ||
Non-vested at beginning of period, Options | 38,750 | 17,500 |
Granted, Options | 0 | 0 |
Vested, Options | (8,750) | (8,750) |
Forfeited, Options | 0 | 0 |
Non-vested at end of period, Options | 30,000 | 8,750 |
Non-vested at beginning of period, Weighted-Average Grant-Date Fair Value | $ 3.22 | $ 1.69 |
Granted, Options, Weighted-Average Grant-Date Fair Value | 0 | 0 |
Vested, Options, Weighted-Average Grant-Date Fair Value | 3.10 | (1.69) |
Forfeited, Options, Weighted-Average Grant-Date Fair Value | 0 | 0 |
Non-vested at end of period, Options , Weighted-Average Grant-Date Fair Value | $ 3.26 | $ 1.69 |
STOCK OPTIONS (Details 3)
STOCK OPTIONS (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
2007 Directors Equity Incentive Plan [Member] | ||
Summary of option activities under the 2007 Directors Equity Incentive Plan | ||
Outstanding at beginning of period | 415,000 | 365,000 |
Granted, Options | 0 | 50,000 |
Exercised, Options | 0 | 0 |
Forfeited or expired, Options | (50,000) | (150,000) |
Options outstanding | 365,000 | 265,000 |
Exercisable at end of period | 365,000 | 265,000 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.14 | $ 3.65 |
Granted, Weighted- Average Exercise Price | 0 | 2.69 |
Exercised, Weighted- Average Exercise Price | 0 | 0 |
Forfeited or expired, Weighted- Average Exercise Price | (2.30) | (4.35) |
Outstanding at end of period, Weighted- Average Exercise Price | 3.25 | 3.07 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 3.25 | $ 3.07 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 3 months 14 days | 1 year 11 months 26 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 2 months 5 days | 2 years 11 months 23 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 2 months 5 days | 2 years 11 months 23 days |
Aggregate Intrinsic Value | ||
Outstanding at beginning of period, Aggregate Intrinsic Value | $ 198 | $ 53 |
Outstanding at end of period, Aggregate Intrinsic Value | 68 | 40 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 68 | $ 40 |
2007 Employee Plan [Member] | ||
Summary of option activities under the 2007 Directors Equity Incentive Plan | ||
Outstanding at beginning of period | 90,000 | 130,000 |
Forfeited or expired, Options | 0 | (80,000) |
Options outstanding | 90,000 | 50,000 |
Exercisable at end of period | 60,000 | 41,250 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.26 | $ 3.93 |
Forfeited or expired, Weighted- Average Exercise Price | 0 | (4.35) |
Outstanding at end of period, Weighted- Average Exercise Price | 3.26 | 3.26 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 3.26 | $ 3.29 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 3 years 5 months 1 day | 1 year 6 months 25 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 10 months 28 days | 2 years 10 months 13 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 3 months 4 days | 2 years 10 months 10 days |
Aggregate Intrinsic Value | ||
Outstanding at beginning of period, Aggregate Intrinsic Value | $ 30 | |
Outstanding at end of period, Aggregate Intrinsic Value | 10 | |
Exercisable at end of period, Aggregate Intrinsic Value | $ 8 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-based compensation expense | $ 1 | $ 55 |
Unamortized stock-based compensation | $ 0 | $ 0 |
Vested stock options | 60,000 | 41,250 |
Weighted-average exercise price, vested options | $ 3.26 | $ 3.29 |
Weighted average contractual term | 2 years 3 months 4 days | 2 years 10 months 10 days |
Fair value of stock options, vested | $ 195 | $ 136 |
Employee 2007 [Member] | ||
Stock-based compensation expense | $ 1 | $ 4 |
Weighted average contractual term, nonvested | 4 years 2 months 19 days | 11 months 8 days |