Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Sep. 01, 2019 | Dec. 31, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | TRIO-TECH INTERNATIONAL | ||
Entity Central Index Key | 0000732026 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 4,332,000 | ||
Entity Common Stock, Shares Outstanding | 3,673,055 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | CA | ||
Entity File Number | 1-14523 | ||
Title of 12b security | Common Stock, no par value | ||
Trading Symbol | TRT | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,863 | $ 6,539 |
Short-term deposits | 4,144 | 653 |
Trade accounts receivable, less allowance for doubtful accounts of $263 and $259 | 7,113 | 7,747 |
Other receivables | 817 | 881 |
Inventories, less provision for obsolete inventory of $673 and $695 | 2,427 | 2,930 |
Prepaid expenses and other current assets | 287 | 208 |
Assets held for sale | 89 | 91 |
Total current assets | 19,740 | 19,049 |
NON-CURRENT ASSETS | ||
Deferred tax assets | 390 | 400 |
Investment properties, net | 782 | 1,146 |
Property, plant and equipment, net | 12,159 | 11,935 |
Other assets | 1,750 | 2,249 |
Restricted term deposits | 1,706 | 1,695 |
Total non-current assets | 16,787 | 17,425 |
TOTAL ASSETS | 36,527 | 36,474 |
CURRENT LIABILITIES: | ||
Lines of credit | 187 | 2,043 |
Accounts payable | 3,272 | 3,704 |
Accrued expenses | 3,486 | 3,172 |
Income taxes payable | 417 | 285 |
Current portion of bank loans payable | 488 | 367 |
Current portion of capital leases | 283 | 250 |
Total current liabilities | 8,133 | 9,821 |
NON-CURRENT LIABILITIES: | ||
Bank loans payable, net of current portion | 2,292 | 1,437 |
Capital leases, net of current portion | 442 | 524 |
Deferred tax liabilities | 327 | 327 |
Income taxes payable | 439 | 828 |
Other non-current liabilities | 33 | 36 |
Total non-current liabilities | 3,533 | 3,152 |
TOTAL LIABILITIES | 11,666 | 12,973 |
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY: | ||
Common stock, no par value, 15,000,000 shares authorized; 3,673,055 shares issued and outstanding as of June 30, 2019 and 3,553,055 shares issued and outstanding as of June 30, 2018 | 11,424 | 11,023 |
Paid-in capital | 3,305 | 3,249 |
Accumulated retained earnings | 7,070 | 5,525 |
Accumulated other comprehensive gain-translation adjustments | 1,867 | 2,182 |
Total Trio-Tech International shareholders' equity | 23,666 | 21,979 |
Non-controlling interests | 1,195 | 1,522 |
TOTAL EQUITY | 24,861 | 23,501 |
TOTAL LIABILITIES AND EQUITY | $ 36,527 | $ 36,474 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 263 | $ 259 |
Provision for obsolete inventory | $ 673 | $ 695 |
Common stock, authorized | 15,000,000 | 15,000,000 |
Common stock, issued | 3,673,055 | 3,553,055 |
Common stock, outstanding | 3,673,055 | 3,553,055 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | ||
Manufacturing | $ 14,889 | $ 15,978 |
Testing services | 16,760 | 19,391 |
Distribution | 7,451 | 6,853 |
Real estate | 98 | 139 |
Total | 39,198 | 42,361 |
Cost of Sales | ||
Cost of manufactured products sold | 11,393 | 12,213 |
Cost of testing services rendered | 12,202 | 13,323 |
Cost of distribution | 6,505 | 6,068 |
Cost of real estate | 97 | 119 |
Total | 30,197 | 31,723 |
Gross Margin | 9,001 | 10,638 |
Operating Expenses | ||
General and administrative | 7,049 | 7,250 |
Selling | 826 | 826 |
Research and development | 345 | 451 |
Gain on disposal of property, plant and equipment | (13) | (77) |
Total operating expenses | 8,207 | 8,450 |
Income from Operations | 794 | 2,188 |
Other Income / (Expenses) | ||
Interest expenses | (319) | (233) |
Other income, net | 249 | 335 |
Gain on sale of properties | 685 | 0 |
Total other income / (expenses) | 615 | 102 |
Income from Continuing Operations before Income Taxes | 1,409 | 2,290 |
Income Tax Benefits / (Expenses) | 42 | (987) |
Income from continuing operations before non-controlling interests, net of tax | 1,451 | 1,303 |
Discontinued Operations | ||
Loss from discontinued operations, net of tax | (3) | (13) |
NET INCOME | 1,448 | 1,290 |
Less: net (loss)/income attributable to non-controlling interests | (97) | 106 |
Net Income Attributable to Trio-Tech International Common Shareholders | 1,545 | 1,184 |
Amounts Attributable to Trio-Tech International Common Shareholders: | ||
Income from continuing operations, net of tax | 1,548 | 1,197 |
Loss from discontinued operations, net of tax | (3) | (13) |
Net Income Attributable to Trio-Tech International Common Shareholders | $ 1,545 | $ 1,184 |
Basic Earnings per Share: | ||
Basic earnings per share from continuing operations attributable to Trio-Tech International | $ 0.42 | $ 0.34 |
Basic earnings per share from discontinued operations attributable to Trio-Tech International | .00 | (0.01) |
Basic Earnings per Share from Net Income Attributable to Trio-Tech International | 0.42 | 0.33 |
Diluted Earnings per Share: | ||
Diluted earnings per share from continuing operations attributable to Trio-Tech International | 0.41 | 0.32 |
Diluted earnings per share from discontinued operations attributable to Trio-Tech International | .00 | (0.01) |
Diluted Earnings per Share from Net Income Attributable to Trio-Tech International | $ .41 | $ 0.31 |
Weighted average number of common shares outstanding Basic | 3,673,000 | 3,553,000 |
Dilutive effect of stock options | 89,000 | 218,000 |
Number of shares used to compute earnings per share diluted | 3,762,000 | 3,771,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Comprehensive Income Attributable to Trio-Tech International Common Shareholders: | ||
Net income | $ 1,448 | $ 1,290 |
Foreign currency translation, net of tax | (420) | 728 |
Comprehensive Income | 1,028 | 2,018 |
Less: comprehensive (loss) / income attributable to the non-controlling interests | (202) | 285 |
Comprehensive Income Attributable to Trio-Tech International Common Shareholders | $ 1,230 | $ 1,733 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total |
Beginning Balance, Amount at Jun. 30, 2017 | $ 10,921 | $ 3,206 | $ 4,341 | $ 1,633 | $ 1,426 | $ 21,527 |
Beginning Balance, Shares at Jun. 30, 2017 | 3,523,000 | |||||
Stock option expenses | 43 | 43 | ||||
Net income | 1,184 | 106 | 1,290 | |||
Dividend declared by subsidiary | (189) | (189) | ||||
Exercise of options, Amount | $ 51 | 51 | ||||
Exercise of options, Shares | 20,000 | |||||
Issue of restricted shares to consultant, Amount | $ 51 | 51 | ||||
Issue of restricted shares to consultant, Shares | 10,000 | |||||
Translation adjustment | 549 | 179 | 728 | |||
Ending Balance, Amount at Jun. 30, 2018 | $ 11,023 | 3,249 | 5,525 | 2,182 | 1,522 | 23,501 |
Ending Balance, Shares at Jun. 30, 2018 | 3,553,000 | |||||
Stock option expenses | 56 | 56 | ||||
Net income | 1,545 | (97) | 1,448 | |||
Dividend declared by subsidiary | (125) | (125) | ||||
Exercise of options, Amount | $ 401 | 401 | ||||
Exercise of options, Shares | 120,000 | |||||
Issue of restricted shares to consultant, Amount | 0 | |||||
Translation adjustment | (315) | (105) | (420) | |||
Ending Balance, Amount at Jun. 30, 2019 | $ 11,424 | $ 3,305 | $ 7,070 | $ 1,867 | $ 1,195 | $ 24,861 |
Ending Balance, Shares at Jun. 30, 2019 | 3,673,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Cash Flow from Operating Activities | |||
Net income | $ 1,448 | $ 1,290 | |
Adjustments to reconcile net income to net cash flow provided by operating activities | |||
Gain on disposal of properties | (685) | 0 | |
Depreciation and amortization | 2,450 | 2,214 | |
Stock compensation expenses | 56 | 43 | |
Usage of provision for obsolete inventory | (25) | 4 | |
Reversal of income tax provision | (299) | 0 | |
Bad debt recovery | 10 | 7 | |
Accrued interest expense, net accrued interest income | (9) | 201 | [1] |
Gain on sale of property, plant and equipment - continued operations | 1 | 15 | |
Issuance of shares to service provider | 0 | 51 | |
Warranty recovery, net | (43) | 34 | |
Gain on proceeds from insurance claim | 0 | (85) | [1] |
Fixed assets written off | (33) | 0 | |
Deferred tax benefit | 5 | 5 | |
Changes in operating assets and liabilities | |||
Trade accounts receivables | 630 | 995 | |
Other receivables | 64 | (220) | |
Other assets | 432 | (377) | |
Inventories | 539 | (1,162) | |
Prepaid expenses and other current assets | (79) | 18 | |
Accounts payable and accrued liabilities | (68) | 488 | |
Income tax payable | 60 | 880 | |
Net Cash Provided by Operating Activities | 4,454 | 4,401 | [1] |
Cash Flow from Investing Activities | |||
Proceeds from sale of properties | 943 | 0 | |
Proceeds from maturing of unrestricted and restricted term deposits, net | 0 | 484 | |
Proceeds from disposal of property and equipment | 3 | 42 | |
Insurance proceeds received | 0 | 85 | [1] |
Investments in restricted and un-restricted deposits | (3,445) | (281) | |
Additions to property, plant and equipment | (2,841) | (2,309) | |
Net Cash used in Investing Activities | (5,340) | (1,979) | [1] |
Cash Flow from Financing Activities | |||
Repayment on lines of credit | (10,137) | (8,883) | |
Repayment of bank loans and capital leases | (687) | (733) | |
Dividends paid on non-controlling interest | (125) | (189) | |
Proceeds from exercising stock options | 401 | 51 | |
Proceeds from bank loans and capital leases | 9,958 | 8,747 | |
Net Cash Used in Financing Activities | (590) | (1,007) | |
Effect of Changes in Exchange Rate | (189) | 390 | [1] |
Net (Decrease) / Increase in Cash, Cash Equivalents, and Restricted Cash | (1,665) | 1,805 | [1] |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 8,234 | 6,429 | |
Cash, Cash Equivalents, and Restricted Cash at End of Period | 6,569 | 8,234 | |
Supplementary Information of Cash Flows | |||
Cash paid during the period for Interest | 284 | 181 | |
Cash paid during the period for Income taxes | 106 | 245 | |
Non-Cash Transactions | |||
Capital lease of property, plant and equipment | 214 | 228 | |
Reconciliation of Cash, cash equivalents, and restricted cash | |||
Cash | 4,863 | 6,539 | |
Restricted Term-Deposits in Non-Current Assets | 1,706 | 1,695 | |
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ 6,569 | $ 8,234 | |
[1] | Amounts restated to exclude changes of restricted deposit for fiscal year 2018 for comparative purpose after adoption of ASU 2016-18 in fiscal year 2019. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation and Principles of Consolidation - Ownership Location Express Test Corporation (Dormant) 100% Van Nuys, California Trio-Tech Reliability Services (Dormant) 100% Van Nuys, California KTS Incorporated, dba Universal Systems (Dormant) 100% Van Nuys, California European Electronic Test Centre (Dormant) 100% Dublin, Ireland Trio-Tech International Pte. Ltd. 100% Singapore Universal (Far East) Pte. Ltd. * 100% Singapore Trio-Tech International (Thailand) Co. Ltd. * 100% Bangkok, Thailand Trio-Tech (Bangkok) Co. Ltd. 100% Bangkok, Thailand (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. 55% Selangor, Malaysia (100% owned by Trio-Tech Malaysia Sdn. Bhd.) Prestal Enterprise Sdn. Bhd. 76% Selangor, Malaysia (76% owned by Trio-Tech International Pte. Ltd.) Trio-Tech (SIP) Co., Ltd. * 100% Suzhou, China Trio-Tech (Chongqing) Co. Ltd. * 100% Chongqing, China SHI International Pte. Ltd. (Dormant) (55% owned by Trio-Tech International Pte. Ltd) 55% Singapore PT SHI Indonesia (Dormant) (100% owned by SHI International Pte. Ltd.) 55% Batam, Indonesia Trio-Tech (Tianjin) Co., Ltd. * 100% Tianjin, China * 100% owned by Trio-Tech International Pte. Ltd. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP’’). The basis of accounting differs from that used in the statutory financial statements of the Company’s subsidiaries and equity investee companies, which are prepared in accordance with the accounting principles generally accepted in their respective countries of incorporation. In the opinion of management, the consolidated financial statements have reflected all costs incurred by the Company and its subsidiaries in operating the business. All dollar amounts in the financial statements and in the notes herein are presented in thousands of United States dollars (US$’000) unless otherwise designated. Liquidity The Company’s core businesses - testing services, manufacturing (assembly) and distribution - operate in a volatile industry, whereby its average selling prices and product costs are influenced by competitive factors. These factors create pressures on sales, costs, earnings and cash flows, which will impact liquidity. Foreign Currency Translation and Transactions The Company translates assets and liabilities of its subsidiaries outside the U.S. into U.S. dollars using the rate of exchange prevailing at the fiscal year end, and the consolidated statements of operations and comprehensive income or loss is translated at average rates during the reporting period. Adjustments resulting from the translation of the subsidiaries’ financial statements from foreign currencies into U.S. dollars are recorded in shareholders' equity as part of accumulated other comprehensive gain - translation adjustments. Gains or losses resulting from transactions denominated in currencies other than functional currencies of the Company’s subsidiaries are reflected in income for the reporting period. Use of Estimates — Revenue Recognition Revenue from Contracts with Customers We apply a five-step approach as defined in ASC Topic 606 in determining the amount and timing of revenue to be recognized: (1) identifying the contract with customer; (2) identifying the performance obligations in the contracts; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. Revenue derived from testing services is recognized when testing services are rendered. Revenue generated from sale of products in the manufacturing and distribution segments are recognized when persuasive evidence of an arrangement exists, delivery of the products has occurred, customer acceptance has been obtained (which means the significant risks and rewards of ownership have been transferred to the customer), the price is fixed or determinable and collectability is reasonably assured. Certain customers can request for installation and training services to be performed for certain products sold in the manufacturing segment. These services are mainly on helping customers with the test runs of the machines sold and are considered a separate performance obligation. Such services can be provided by other entities as well and these do not significantly modify the product. The Company recognizes the revenue at point in time when the Company has satisfied its performance obligation. In the real estate segment: (1) revenue from property development is earned and recognized on the earlier of the dates when the underlying property is sold or upon the maturity of the agreement; if this amount is uncollectible, the agreement empowers the repossession of the property, and (2) rental revenue is recognized on a straight-line basis over the terms of the respective leases. This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue is commenced when the tenant assumes possession of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. GST / Indirect Taxes Accounts Receivable and Allowance for Doubtful Accounts — The Company’s management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. The Company includes any account balances that are determined to be uncollectible, along with a general reserve, in the overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to management, the Company believed that its allowance for doubtful accounts was adequate as of June 30, 2019 and 2018. Warranty Costs — Cash and Cash Equivalents — Term Deposits — Restricted Term Deposits — Inventories Property, Plant and Equipment & Investment Property Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and improvements to the assets are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the consolidated statements of operations and comprehensive income or loss. Long-Lived Assets and Impairment – The Company evaluates the long-lived assets, including property, plant and equipment and investment property, for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for our business, significant negative industry or economic trends, and a significant decline in the stock price for a sustained period of time. Impairment is recognized based on the difference between the fair value of the asset and its carrying value, and fair value is generally measured based on discounted cash flow analysis, if there is significant adverse change. The Company applies the provisions of ASC Topic 360, Accounting for the Impairment or Disposal of Long-Lived Assets Leases Accounting for Leases The Company’s management expects that in the normal course of business, operating leases will be renewed or replaced by other leases. The future minimum operating lease payments, for which the Company is contractually obligated as of June 30, 2019, are disclosed in these notes to the consolidated financial statements. Assets under capital leases are capitalized using interest rates appropriate at the inception of each lease and are depreciated over either the estimated useful life of the asset or the lease term on a straight-line basis. The present value of the related lease payments is recorded as a contractual obligation. The future minimum annual capital lease payments are included in the total future contractual obligations as disclosed in the notes to the consolidated financial statements. Comprehensive Income or Loss — Reporting Comprehensive Income, Income Taxes — Accounting for Income Taxes . The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The Company recognizes potential liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. Retained Earnings — Research and Development Costs — Stock Based Compensation , Compensation – Stock Compensation Earnings per Share — Fair Values of Financial Instruments ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The financial assets and financial liabilities that require recognition under the guidance include available-for-sale investments, employee deferred compensation plan and foreign currency derivatives. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. As such, fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. The hierarchy is broken down into three levels based on the reliability of inputs as follows: ● Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Financial assets utilizing Level 1 inputs include U.S. treasuries, most money market funds, marketable equity securities and our employee deferred compensation plan; ● Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, directly or indirectly. Financial assets and liabilities utilizing Level 2 inputs include foreign currency forward exchange contracts, most commercial paper and corporate notes and bonds; and ● Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Financial assets utilizing Level 3 inputs primarily include auction rate securities. We use an income approach valuation model to estimate the exit price of the auction rate securities, which is derived as the weighted-average present value of expected cash flows over various periods of illiquidity, using a risk adjusted discount rate that is based on the credit risk and liquidity risk of the securities. Concentration of Credit Risk Investments Equity Method Cost Method Loan Receivables from Property Development Projects Interest income on the loan receivables from property development projects are recognized on an accrual basis. Discounts and premiums on loans are amortized to income using the interest method over the remaining period to contractual maturity. The amortization of discounts into income is discontinued on loans that are contractually 90 days past due or when collection of interest appears doubtful. Contingent Liabilities If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | The amendments in ASU 2018-18 ASC Topic 808: Collaborative Arrangements: Clarifying the Interaction between Topic 808 and Topic 606 The amendments in ASU 2018-13 ASC Topic 820: Fair Value Measurement: Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement The amendments in ASU 2018-09 Codification Improvements Compensation-Stock Compensation The amendments in ASU 2018-02 ASC Topic 220: Income Statement – Reporting Comprehensive Income The amendments in ASU2017-11: Earnings Per Share ; Distinguishing Liabilities from Equity ; Derivatives and Hedging The amendments in ASU 2017-04 ASC Topic 350 — ' Intangibles - Goodwill and Other The amendments in ASU 2019-05 ASC Topic 326: Financial Instruments — Credit Losses Targeted Transition Relief Codification Improvements to Financial Instruments – Credit Losses Financial Instruments — Credit losses In February 2016, the FASB issued an ASU 2016-12 ASC Topic 842: Leases Codification Improvements to Leases Leases Leases: Targeted Improvements Leases: Narrow-Scope Improvements for Lessors Other new pronouncements issued but not yet effective until after June 30, 2019 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
TERM DEPOSITS
TERM DEPOSITS | 12 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
TERM DEPOSITS | June 30, 2019 June 30, 2018 Short-term deposits $ 4,143 $ 606 Currency translation effect on short-term deposits 1 47 Total short-term deposits 4,144 653 Restricted term deposits 1,701 1,664 Currency translation effect on restricted term deposits 5 31 Total restricted term deposits 1,706 1,695 Total Term deposits $ 5,850 $ 2,348 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, which do not qualify as cash equivalents. |
TRADE ACCOUNTS RECEIVABLE AND A
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Jun. 30, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | Accounts receivable are customer obligations due under normal trade terms. The Company performs continuing credit evaluations of its customers’ financial conditions, and although management generally does not require collateral, letters of credit may be required from its customers in certain circumstances. Senior management reviews trade accounts receivable on a periodic basis to determine if any receivables will potentially be uncollectible. Management includes any trade accounts receivable balances that are determined to be uncollectible in the allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to us, management believed the allowance for doubtful accounts as of June 30, 2019 and June 30, 2018 was adequate. The following table represents the changes in the allowance for doubtful accounts: For the Year Ended June 30, 2019 2018 Beginning $ 259 $ 247 Additions charged to expenses 94 8 Recovered (84 ) (1 ) Write-off - - Currency translation effect (6 ) 5 Ending $ 263 $ 259 |
LOANS RECEIVABLE FROM PROPERTY
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | 12 Months Ended |
Jun. 30, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | The following table presents TTCQ’s loans receivable from property development projects in China as of June 30, 2019 and as of June 30, 2018. The exchange rate is based on the historical rate published by the Monetary Authority of Singapore as on March 31, 2015, since the net loan receivable was “nil” as at June 30, 2019 and as at June 30, 2018. Loan Expiry Loan Amount Loan Amount Date (RMB) (U.S. Dollars) Short-term loan receivables JiangHuai (Project - Yu Jin Jiang An) May 31, 2013 2,000 325 Less: allowance for doubtful receivables (2,000 ) (325 ) Net loan receivable from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment property (5,000 ) (814 ) Net loan receivable from property development projects - - 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 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 of 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 | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | Inventories consisted of the following: For the Year Ended June 30, 2019 2018 Raw materials $ 1,190 $ 1,153 Work in progress 1,306 1,947 Finished goods 591 505 Less: provision for obsolete inventory (673 ) (695 ) Currency translation effect 13 20 $ 2,427 $ 2,930 The following table represents the changes in provision for obsolete inventory: For the Year Ended June 30, 2019 2018 Beginning $ 695 $ 686 Additions charged to expenses 17 9 Usage - disposition (42 ) (5 ) Currency translation effect 3 5 Ending $ 673 $ 695 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 12 Months Ended |
Jun. 30, 2019 | |
Assets Held-for-sale, Not Part of Disposal Group [Abstract] | |
ASSETS HELD FOR SALE | Penang Property During the fourth quarter of 2015, the operations in Malaysia planned to sell its factory building in Penang, Malaysia. 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 $98, to assets held for sale, since there was an intention to sell the factory building. In May 2015, Trio-Tech Malaysia 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 because the business activity of the purchaser was not suitable to the industry that is being promoted on 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 and no further conversations with PDC have occurred since. Management received an expression of interest from a potential buyer in acquiring the property during second quarter of fiscal year 2019 and the sale was under negotiation with the potential buyer during third quarter of fiscal year 2019. Sales and Purchase Agreement was finalized with the potential buyer during fourth quarter of fiscal year 2019. The completion of the sale is subject to the approval by Penang Development Corporation. The net book value of the building was RM371, or $89, as at June 30, 2019 and RM371, or $91, as at June 30, 2018. The following table presents the Company’s assets held for sale in Malaysia as of June 30, 2019 and June 30, 2018. The exchange rate is based on the exchange rate as of June 30, 2015 published by the Monetary Authority of Singapore. For the Year Ended June 30, 2019 2018 Investment Date / Reclassification Date Investment Amount Investment Amount Investment Amount (RM) (U.S. Dollars) (U.S. Dollars) Penang Property Reclassification from investment property June 30, 2015 681 181 181 Currency translation - (15) (13) 681 166 168 Accumulated depreciation on rental property June 30, 2015 (310 ) (83) (83) Currency translation - 6 6 (310 ) (77) (77) Net investment in rental property - Malaysia 371 89 91 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
INVESTMENTS | 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 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 Company would receive a fee of RMB 10,000, or approximately $1,606 for the services rendered in connection with bidding 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. 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 received in cash from JiaSheng, the controlling venturer in the joint venture, as a partial return of the Company’s initial investment, 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 $20, towards the losses from operations incurred by the joint venture, resulting in a net investment of RMB 4,863, or approximately $708 based on exchange rate as of June 30, 2019. Except as otherwise noted, transaction amounts in this note are translated into US dollars at the historical exchange rate. During the second quarter of fiscal year 2014, TTCQ decided to dispose of its 10% interest in the joint venture after TTCQ revalued certain monetary risks relating to the development of the project. On October 2, 2013, TTCQ entered into a share transfer agreement (the “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 consisting of commercial units measuring 668 square meters to be delivered in June 2016, and (2) the remaining RMB 8,000, or approximately $1,307 by cash consideration to be paid in sixteen quarterly equal instalments of RMB 500 per quarter commencing from January 2014. Based on ASC Topic 845 Non-monetary Consideration On October 14, 2014, TTCQ and Jun Zhou Zhi Ye entered into a memorandum of understanding. Based on the memorandum of understanding, both parties 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 as 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 currently estimated to be December 31, 2021. The delay was primarily due to the time needed by the developers to work with various parties to inject sufficient funds into this project. Based on the available information, management believes that the developer is capable of working with new investors to complete certain phases of this project. The Share Transfer Agreement (10% interest in the joint venture) was registered with the relevant authorities in China during October 2016. |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 12 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
INVESTMENT PROPERTIES | The following table presents the Company’s investment in properties in China as of June 30, 2019. The exchange rate is based on the market rate as of June 30, 2019. Investment Date / Reclassification Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I – MaoYe Property Jan 04, 2008 5,554 894 Currency translation - (87 ) Reclassification as “Assets held for sale” July 01, 2018 (5,554 ) (807 ) Reclassification from “Assets held for sale” Mar 31, 2019 2,024 301 2,024 301 Purchase of rental property – Property II - JiangHuai Jan 06, 2010 3,600 580 Purchase of rental property – Property III - Fu Li Apr 08, 2010 4,025 648 Currency translation - (124 ) Gross investment in rental property 9,649 1,405 Accumulated depreciation on rental property June 30, 2019 (6,075 ) (890 ) Reclassified as “Assets held for sale” July 01, 2018 2,822 410 Reclassification from “Assets held for sale” Mar 31, 2019 (1,029 ) (143 ) (4,282 ) (623 ) Net investment in property – China 5,367 782 The following table presents the Company’s investment in properties in China as of June 30, 2018. The exchange rate is based on the market rate as of June 30, 2018. Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I - MaoYe Property 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 - (131 ) Gross investment in rental property 13,179 1,991 Accumulated depreciation on rental property June 30,2018 (5,596 ) (845 ) Net investment in property – China 7,583 1,146 The following table presents the Company’s investment in properties in Malaysia as of June 30, 2019 and June 30, 2018. 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 Investment Amount (RM) (U.S. Dollars) Purchase of Penang Property Dec 31, 2012 681 181 Currency translation - (15 ) Reclassification as “Assets held for sale” June 30, 2015 (681 ) (166 ) - - Accumulated depreciation on rental property June 30, 2015 (310 ) (83 ) Currency translation - 6 Reclassified as “Assets held for sale” June 30, 2015 (310 ) (77 ) Net investment in rental property - Malaysia - - Rental Property I - MaoYe Property In fiscal 2008, TTCQ purchased an office in Chongqing, China from MaoYe Property Ltd. (“MaoYe”), for a total cash purchase price of RMB 5,554, or approximately $894. TTCQ identified a new tenant and signed a new rental agreement (653 square meters at a monthly rent of RMB 39, or approximately $6) on August 1, 2015 which expires on July 31, 2020. TTCQ signed a new rental agreement (451 square meters at a monthly rent of RMB 24, or approximately $4) on February 1, 2018 which expires on January 31, 2021. During the first quarter of 2019, management decided to sell MaoYe Property, which is one of our earlier investment properties. In order to monetize the capital gain on property, TTCQ appointed a sole agent for 6 months as of September 1, 2018 to search for suitable buyers for this property. The Company has completed the sale of thirteen of the fifteen units constituting the MaoYe Property as of the end of third quarter 2019 which contributed the gain of $685. During the third quarter 2019, considering the current market conditions in China, management has decided not to sell the remaining two units of MaoYe properties and as of third quarter 2019, the properties were reclassified to investment property from assets held for sale. Property purchased from MaoYe generated a rental income of $66 and $99 for the years ended June 30, 2019 and 2018, 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. Although these units were rented in the past, all eight units are currently 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. Property purchased from JiangHuai generated a rental income of nil for both the years ended June 30, 2019 and 2018. Rental Property III – FuLi In fiscal 2010, TTCQ entered into a Memorandum Agreement with Chongqing FuLi Real Estate Development Co. Ltd. (“FuLi”) to purchase two commercial properties totaling 311.99 square meters (“office space”) located in Jiang Bei District Chongqing. 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 in 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 such leases provides for a rent increase of 5% every year on May 1, commencing in 2017 until the rental agreement expired on April 30, 2019. The rental agreement of this lease has been extended for 3 years, commencing from May 1, 2019 to April 30, 2021 with a term of rent increase of 6% every year. For the other lease expired on March 31, 2018, TTCQ identified a new tenant and signed a new rental agreement (161 square meters at a monthly rent of RMB 62, or approximately $9) on November 1, 2018 which expires on October 31, 2019. Property purchased from FuLi generated a rental income of $32 and $40 for the years ended June 30, 2019 and 2018, respectively. Summary Total rental income for all investment properties (Property I, II and III) in China was $98 for the year ended June 30, 2019, and $139 for the same period in the prior fiscal year. Depreciation expenses for all investment properties in China were $86 and $102 for the years ended June 30, 2019 and 2018, respectively. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Property, plant and equipment consisted of the following: Estimated Useful June 30, Life in Years 2019 2018 Building and improvements 3-20 $ 5,082 $ 5,070 Leasehold improvements 3-27 6,150 6,093 Machinery and equipment 3-7 26,140 24,138 Furniture and fixtures 3-5 1,111 1,029 Equipment under capital leases 3-5 928 928 Property, plant and equipment, gross $ 39,411 $ 37,258 Less: accumulated depreciation (25,083 ) (23,440 ) Accumulated amortization on equipment under capital leases (808 ) (795 ) Total accumulated depreciation $ (25,891 ) $ (24,235 ) Property, plant and equipment before currency translation effect, net 13,520 13,023 Currency translation effect (1,361 ) (1,088 ) Property, plant and equipment, net $ 12,159 $ 11,935 Depreciation and amortization expenses for property, plant and equipment during fiscal years 2019 and 2018 were $2,364 and $2,112, respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Jun. 30, 2019 | |
Other Assets [Abstract] | |
OTHER ASSETS | Other assets consisted of the following: June 30, 2019 2018 Down payment for purchase of investment properties $ 1,645 $ 1,645 Down payment for purchase of property, plant and equipment 100 561 Deposits for rental and utilities 169 140 Currency translation effect (164 ) (97 ) Total $ 1,750 $ 2,249 |
LINES OF CREDIT
LINES OF CREDIT | 12 Months Ended |
Jun. 30, 2019 | |
Line of Credit Facility [Abstract] | |
LINES OF CREDIT | The carrying value of the Company’s lines of credit approximates its fair value, because the interest rates associated with the lines of credit are adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of June 30, 2019, 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 Trio-Tech (Tianjin) Co., Ltd. Universal (Far East) Pte. Ltd. Lines of Credit Lines of Credit Lines of Credit Ranging from 1.85% to 5.5% 5.22% to 6.3% Ranging from 1.85% to 5.5% - - - $ $ $ 4,213 1,492 370 $ $ $ 4,213 1,492 183 As of June 30, 2018, 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 Trio-Tech (Tianjin) Co., Ltd. Universal (Far East) Pte. Ltd. Lines of Credit Lines of Credit Lines of Credit Ranging from 1.6% to 5.5% 5.22% Ranging from 1.6% to 5.5% - - - $ $ $ 4,183 1,511 367 $ $ $ 3,325 437 256 On 4 January 2018, Trio-Tech International Pte. Ltd. signed an agreement with a bank to sub-allocate a portion of the facility thereunder to its subsidiary - Universal (Far East) Pte. Ltd. for an Accounts Payable Financing facility with the bank for SGD 500, or approximately $367 based on the market exchange rate. Interest is charged at 1.85% to 5.5%. The financing facility was set up to facilitate the working capital in our operations in Singapore. The Company started to use this facility in fiscal year 2018. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | Accrued expenses consisted of the following: For the Year Ended June 30, 2019 2018 Payroll and related costs 1,354 1,545 Commissions 107 89 Customer deposits 46 17 Legal and audit 299 265 Sales tax 9 17 Utilities 120 130 Warranty 39 82 Accrued purchase of materials and property, plant and equipment 362 454 Provision for re-instatement 302 289 Deferred income 61 - Contract Liabilities 501 31 Other accrued expenses 293 172 Currency translation effect (7 ) 81 Total $ 3,486 $ 3,172 |
WARRANTY ACCRUAL
WARRANTY ACCRUAL | 12 Months Ended |
Jun. 30, 2019 | |
Warranty Accrual | |
WARRANTY ACCRUAL | The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded. The warranty period for products manufactured by the Company is generally one year or the warranty period agreed with the customer. The Company estimates the warranty costs based on the historical rates of warranty returns. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. For the Year Ended June 30, 2019 2018 Beginning $ 82 $ 48 Additions charged to cost and expenses 15 64 Utilization / reversal (58 ) (30 ) Currency translation effect - - Ending $ 39 $ 82 |
BANK LOANS PAYABLE
BANK LOANS PAYABLE | 12 Months Ended |
Jun. 30, 2019 | |
Loans Payable [Abstract] | |
BANK LOANS PAYABLE | Bank loans payable consisted of the following: June 30, 2019 June 30, 2018 Note payable denominated in RM for expansion plans in Malaysia, maturing in August 2024, bearing interest rate at bank’s lending rate minus 2% and 5.00% at June 30, 2019 and June 30, 2018 per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with a carrying value of $2,683 and $2,809, as at June 30, 2019 and June 30, 2018, respectively. $ 2 ,696 $ 1,615 Note payable denominated in U.S. dollars for expansion plans in Singapore and its subsidiaries, maturing in April 2020, bearing interest at the bank’s lending rate (3.96% for June 30, 2019 and June 30, 2018, respectively) with monthly payments of principal plus interest through April 2017. This note payable is secured by plant and equipment with a carrying value of $148 and $187 as of June 30, 2019 and June 30, 2018, respectively. 142 293 Total bank loans payable 2,838 1,908 Current portion of bank loan payable 494 380 Currency translation effect on current portion of bank loan (6 ) (13 ) Current portion of bank loan payable 488 367 Long term portion of bank loan payable 2,344 1,528 Currency translation effect on long-term portion of bank loan (52 ) (91 ) Long term portion of bank loans payable $ 2,292 $ 1,437 Future minimum payments (excluding interest) as of June 30, 2019 were as follows: 2020 $ 488 2021 362 2022 380 2023 399 2024 407 Thereafter 744 Total obligations and commitments $ 2,780 Future minimum payments (excluding interest) as of June 30, 2018 were as follows: 2019 $ 367 2020 372 2021 242 2022 254 2023 267 Thereafter 302 Total obligations and commitments $ 1,804 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | The Company leases certain facilities and equipment under long-term agreements expiring at various dates through fiscal year 2019 and thereafter. Certain leases require the Company to pay real estate taxes and insurance and provide for escalation of lease costs based on certain indices. Future minimum payments under capital leases and non-cancelable operating leases and net rental income under non-cancelable sub-leased properties as of June 30, 2019 were as follows: Sub-lease Net For the Year Ending June 30, Capital Leases Operating Leases Rental (Income) Operating Leases 2020 $ 283 $ 646 $ (26 ) $ 620 2021 187 216 - 216 2022 143 47 - 47 2023 68 1 - 1 2024 44 - - - Total future minimum lease payments $ 725 $ 910 $ (26 ) $ 884 Less: amount representing interest - Present value of net minimum lease payments 725 Less: current portion of capital lease obligations 283 Long-term obligations under capital leases $ 442 Future minimum payments under capital leases and non-cancelable operating leases and net rental income under non-cancelable sub-leased properties as of June 30, 2018 were as follows: Sub-lease Net For the Year Ending June 30, Capital Leases Operating Leases Rental (Income) Operating Leases 2019 $ 250 $ 717 $ (26 ) $ 691 2020 249 531 (26 ) 505 2021 150 44 - 44 2022 102 - - - 2023 23 - - - Total future minimum lease payments $ 774 $ 1,292 $ (52 ) $ 1,240 Less: amount representing interest - Present value of net minimum lease payments 774 Less: current portion of capital lease obligations 250 Long-term obligations under capital leases $ 524 The Company purchased equipment under the capital lease agreements with rates ranging from 1.88% to 7.50% for fiscal years 2019 and 2018. These agreements mature ranging from July 2019 to Jan 2024. Total rental expense on all operating leases, cancelable and non-cancelable, amounted to $708 and $703 in fiscal years 2019 and 2018, respectively. Trio-Tech (Malaysia) Sdn. Bhd. has a capital commitment for the purchase of equipment and other related infrastructure costs amounting to RM 18, or approximately $4 based on the exchange rate on June 30, 2019 as compared to RM 62, or approximately $16 for the last fiscal year. Trio-Tech Tianjin Co. Ltd has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RMB 397, or approximately $58 based on the exchange rate on June 30, 2019 as compared to RMB 3,927, or approximately $593 based on the exchange rate on June 30, 2018. 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. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | In accordance with ASC Topic 825 and 820, the following presents assets and liabilities measured and carried at fair value and classified by level of fair value measurement hierarchy: There were no transfers between Levels 1 and 2 during the fiscal year ended June 30, 2019 or for the same period in the prior fiscal year. Term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments. Restricted term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments. Lines of credit (Level 3) – The carrying value of the lines of credit approximates fair value due to the short-term nature of the obligations. Bank loans payable (Level 3) – The carrying value of the Company’s bank loan payables approximates its fair value as the interest rates associated with long-term debt is adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities. |
CONCENTRATION OF CUSTOMERS
CONCENTRATION OF CUSTOMERS | 12 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CUSTOMERS | The Company had one major customer that accounted for the following revenue and trade accounts receivable: For the Year Ended June 30, 2019 2018 Revenue - Customer A 41.9 % 51.4 % - Customer B 11.4 % 9.3 % Trade Accounts Receivable - Customer A 41.3 % 57.9 % - Customer B 3.3 % 1.3 % |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | In fiscal year 2019, the Company operated in four segments; the testing service industry (which performs structural and electronic tests of semiconductor devices), the designing and manufacturing of equipment (assembly of equipment tests the structural integrity of integrated circuits and other products), distribution of various products from other manufacturers in Singapore and Asia and the real estate segment in China. The revenue allocated to individual countries was based on where the customers were located. The allocation of the cost of equipment, the current year investment in new equipment and depreciation expense have been made on the basis of the primary purpose for which the equipment was acquired. All inter-segment sales were sales from the manufacturing segment to the testing and distribution segment. Total inter-segment sales were $484 in fiscal year 2019 and $879 in fiscal year 2018. Corporate assets mainly consisted of cash and prepaid expenses. Corporate expenses mainly consisted of stock option expenses, salaries, insurance, professional expenses and directors' fees. Corporate expenses are allocated to the four segments on a pre-determined fixed amount calculated based on the annual budgeted sales, except the Malaysia operation, which is calculated based on actual sales. The following segment information table includes segment operating income or loss after including corporate expenses allocated to the segments, which gets eliminated in the consolidation. Business Segment Information: Year Operating Depr. Ended Net Income Total and Capital June 30, Revenue (Loss) Assets Amort. Expenditures Manufacturing 2019 $ 14,889 $ 575 $ 9,576 $ 120 $ 52 2018 $ 15,978 $ 548 $ 8,549 $ 115 $ 143 Testing Services 2019 16,760 (164 ) 22,182 2,244 2,789 2018 19,391 1,522 23,480 1,997 2,166 Distribution 2019 7,451 598 785 - - 2018 6,853 475 789 - - Real Estate 2019 98 (92 ) 3,826 86 - 2018 139 (56 ) 3,521 102 - Fabrication 2019 - - 27 - - Services* 2018 - - 27 - - Corporate & 2019 - (123 ) 131 - - Unallocated 2018 - (301 ) 108 - - Total Company 2019 $ 39,198 $ 794 $ 36,527 $ 2,450 $ 2,841 2018 $ 42,361 $ 2,188 $ 36,474 $ 2,214 $ 2,309 * Fabrication services is a discontinued operation. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
OPERATING LEASES | Operating leases arise from the leasing of the Company’s commercial and residential real estate investment property. Initial lease terms generally range from 12 to 60 months. Depreciation expense for assets subject to operating leases is taken into account primarily on the straight-line method over a period of twenty years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expenses relating to the property held as investments in operating leases was $86 and $102 for fiscal years 2019 and 2018, respectively. Future minimum rental income in China to be received from fiscal year 2020 to fiscal year 2021 on non-cancellable operating leases is contractually due as follows as of June 30, 2019: 2020 $ 121 2021 35 $ 156 Future minimum rental income in China to be received from fiscal year 2019 to fiscal year 2021 on non-cancellable operating leases is contractually due as follows as of June 30, 2018: 2019 $ 137 2020 121 2021 35 $ 293 |
OTHER INCOME, NET
OTHER INCOME, NET | 12 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | Other income, net consisted of the following: For the Year Ended June 30, 2019 2018 Interest income 100 50 Other rental income 113 110 Exchange gain / (loss) (135 ) (160 ) Government grant 77 126 Bad debt recovery 2 - Other miscellaneous income 92 209 Total $ 249 $ 335 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Income before provision for income taxes consists of the following: For the Year Ended June 30, 2019 2018 United States (308 ) (180 ) International 1,717 2,470 Total $ 1,409 $ 2,290 The components of the provision for income taxes are as follows: For the Year Ended June 30, 2019 2018 Current: Federal $ (337 ) $ 900 State 2 2 Foreign 289 79 $ (46 ) $ 981 Deferred: Federal $ - $ - State - - Foreign 4 6 4 6 Total provisions $ (42 ) $ 987 A reconciliation of income tax expense compared to the amount of income tax expense that would result by applying the U.S. federal statutory income tax rate to pre-tax income is as follows: For the Year Ended June 30, 2019 2018 Statutory federal tax rate 21.00 % (27.55 )% State taxes, net of federal benefit (0.22 ) (6.00 ) Permanent items and credits 11.23 - Foreign rate differential (4.76 ) 32.98 Other 4.71 (1.45 ) Changes in valuation allowance (11.11 ) 4.01 Tax reform related to one-time repatriation tax (23.83 ) (45.0 ) Effective rate (2.98 )% (43.10 )% The provision for income taxes has been determined based upon the tax laws and rates in the countries in which we operate. The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgment is required in determining the provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws. The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017, and permanently reduces the U.S. federal corporate tax rate from 35% to 21%, eliminated corporate Alternative Minimum Tax, modified rules for expensing capital investment, and limits the deduction of interest expense for certain companies. The Act is a fundamental change to the taxation of multinational companies, including a shift from a system of worldwide taxation with some deferral elements to a territorial system, current taxation of certain foreign income, a minimum tax on low tax foreign earnings, and new measures to curtail base erosion and promote U.S. production. As the Company has a June 30 fiscal year end, the lower corporate income tax rate was phased in as of January 1, 2018, resulting in a lower US statutory federal rate. In accordance with Section 15 of the Internal Revenue Code, the Company applied a blended U.S. statutory federal income tax rate of 27.55% in computing the tax provision for the year ended June 30, 2018. Accounting Standard Codification (“ASC”) 740 requires filers to record the effect of tax law changes in the period enacted. The Company recognized income tax expenses of $900,000 related to the one-time deemed repatriation as of June 30, 2018. No expenses were recognized related to the deferred tax re-measurement and minimum tax on low tax foreign earnings. The SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) that permits filers to record provisional amounts during a measurement period ending no later than one year from the date of enactment. As of Dec 31, 2018, the Company’s accounting for the Tax Act is complete. The provision for income taxes for the year ended June 30, 2019 includes a $145 decrease from the completion of our provisional accounting for the effects of the Tax Act under SAB 118. The decrease is associated with the one-time mandatory repatriation tax of certain post-1986 earnings and profits that were deferred from U.S. taxation by the Company’s foreign subsidiaries. The Company filed its US federal income tax return during Q4, which included the $755 one-time repatriation tax as well as utilization of net operating losses and tax credits amounting to $192 which was not finalized until the filing of the return. Due to the enactment of Tax Act, the Company is subject to a tax on global intangible low-taxed income (“GILTI”). GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences including outside basis differences expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost, and therefore has included GILTI expense in its effective tax rate calculation for the year ended June 30, 2019. 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 no unrecognized tax benefits or related accrued penalties or interest expenses at June 30, 2019. The Company has maintained an indefinite reinvestment assertion as of June 30, 2019. Accordingly, no deferred taxes related to withholding taxes or unrealized foreign currency gains or losses have been recorded. In assessing the ability to realize the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on these criteria, management believes it is more likely than not the Company will not realize the benefits of the federal, state, and foreign deductible differences. Accordingly, a full valuation allowance has been established. Temporary differences that give rise to a significant portion of deferred tax assets and deferred tax liabilities is as follows for the year ended June 30: For the Year Ended June 30, 2019 2018 Deferred tax assets: Net operating losses and credits $ 363 $ 633 Inventory valuation 64 69 Provision for bad debts 296 112 Accrued vacation 94 3 Accrued expenses 325 629 Fixed asset basis 23 - Investment in subsidiaries - 61 Unrealized gain 55 4 Other 73 3 Total deferred tax assets $ 1,293 $ 1,514 Deferred tax liabilities: Depreciation (390 ) (324 ) Others (78 ) - Total deferred income tax liabilities $ (468 ) $ (324 ) Subtotal 825 1,190 Valuation allowance (762 ) (1,117 ) Net deferred tax assets $ 63 $ 73 Presented as follows in the balance sheets: Deferred tax assets 390 400 Deferred tax liabilities (327 ) (327 ) Net deferred tax assets $ 63 $ 73 The valuation allowance decreased by $355 At June 30, 2019, the Company had no federal net operating loss carry-forwards and state net operating loss carryforward of $867, which expire through 2038. These carryovers may be subject to limitations under I.R.C. Section 382. The Company also had tax credit carry-forward of approximately $49 for U.S. federal income tax purposes expiring through 2020. Management of the Company is uncertain whether it is more likely than not that these future benefits will be realized. Accordingly, a full valuation allowance was established. Generally, U.S. federal, state, and foreign authorities may examine the Company’s tax returns for three years, four years, and five years, respectively, from the date an income tax return is filed. However, the taxing authorities may continue to adjust the Company’s net operating loss carryforwards until the statute of limitations closes on the tax years in which the net operating losses are utilized. |
UNRECOGNIZED TAX BENEFITS
UNRECOGNIZED TAX BENEFITS | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
UNRECOGNIZED TAX BENEFITS | The Company adopted ASC Topic 740, Accounting for Income Taxes A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at June 30, 2019 and June 30, 2018 $ (250 ) The Company accrues penalties and interest on unrecognized tax benefits as a component of penalties and interest expenses, respectively. The Company has not accrued any penalties or interest expense relating to the unrecognized benefits at June 30, 2019 and June 30, 2018. The major tax jurisdictions in which the Company files income tax returns are the U.S., Singapore, China and Malaysia. The statute of limitations, in general, is open for years 2011 to 2018 for tax authorities in those jurisdictions to audit or examine income tax returns. The Company is under annual review by the governments of Singapore, Malaysia, China, and Thailand. However, the Company is not currently under tax examination in any other jurisdiction including the United States. |
REVENUE
REVENUE | 12 Months Ended |
Jun. 30, 2019 | |
Revenue | |
REVENUE | The Company generates revenue primarily from 3 different segments: Manufacturing, Testing and Distribution. The Company accounts for a contract with a customer when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company’s revenues are measured based on consideration stipulated in the arrangement with each customer, net of any sales incentives and amounts collected on behalf of third parties, such as sales taxes. The revenues are recognized as separate performance obligations that are satisfied by transferring control of the product or service to the customer. Significant Judgments The Company’s arrangements with its customers include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. A product or service is considered distinct if it is separately identifiable from other deliverables in the arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company allocates the transaction price to each performance obligation on a relative standalone selling price basis (“SSP”). Determining the SSP for each distinct performance obligation and allocation of consideration from an arrangement to the individual performance obligations and the appropriate timing of revenue recognition are significant judgments with respect to these arrangements. The Company typically establishes the SSP based on observable prices of products or services sold separately in comparable circumstances to similar clients. The Company may estimate SSP by considering internal costs, profit objectives and pricing practices in certain circumstances. Warranties, discounts and allowances are estimated using historical and recent data trends. The Company includes estimates in the transaction price only to the extent that a significant reversal of revenue is not probable in subsequent periods. The Company’s products and services are generally not sold with a right of return, nor has the Company experienced significant returns from or refunds to its customers. Manufacturing The Company primarily derives revenue from the sale of both front-end and back-end semiconductor test equipment and related peripherals, maintenance and support of all these products, installation and training services and the sale of spare parts. The Company’s revenues are measured based on consideration stipulated in the arrangement with each customer, net of any sales incentives and amounts collected on behalf of third parties, such as sales taxes. The Company recognizes revenue at a point in time when the Company has satisfied its performance obligation by transferring control of the product to the customer. The Company uses judgment to evaluate whether the control has transferred by considering several indicators, including: ● whether the Company has a present right to payment; ● the customer has legal title; ● the customer has physical possession; ● the Customer has significant risk and rewards of ownership; and ● the customer has accepted the product, or whether customer acceptance is considered a formality based on history of acceptance of similar products (for example, when the customer has previously accepted the same equipment, with the same specifications, and when we can objectively demonstrate that the tool meets all of the required acceptance criteria, and when the installation of the system is deemed perfunctory). Not all of the indicators need to be met for the Company to conclude that control has transferred to the customer. In circumstances in which revenue is recognized prior to the product acceptance, the portion of revenue associated with its performance obligations of product installation and training services are deferred and recognized upon acceptance. The majority of sales under the Manufacturing segment include a standard 12-month warranty. The Company has concluded that the warranty provided for standard products are assurance type warranties and are not separate performance obligations. Warranty provided for customized products are service warranties and are separate performance obligations. Transaction prices are allocated to this performance obligation using cost plus method. The portion of revenue associated with warranty service is deferred and recognized as revenue over the warranty period, as the customer simultaneously receives and consumes the benefits of warranty services provided by the Company. Testing The Company rendered testing services to manufacturers and purchasers of semiconductors and other entities who either lack testing capabilities or whose in-house screening facilities are insufficient. The Company primarily derives testing revenue from burn-in services, manpower supply and other associated services. SSP is directly observable from the sales orders. Revenue is allocated to performance obligations satisfied at a point in time depending upon terms of the sales order. Generally, there is no other performance obligation other than what has been stated inside the sales order for each of these sales. Terms of contract that may indicate potential variable consideration included warranty, late delivery penalty and reimbursement to solve non-conformance issues for rejected products. Based on historical and recent data trends, it is concluded that these terms of the contract do not represent potential variable consideration. The transaction price is not contingent on the occurrence of any future event. Distribution The Company distributes complementary products particularly equipment, industrial products and components by manufacturers mainly from the U.S., Europe, Taiwan and Japan. The Company recognizes revenue from product sales at a point in time when the Company has satisfied its performance obligation by transferring control of the product to the customer. The Company uses judgment to evaluate whether the control has transferred by considering several indicators discussed above. The Company recognizes the revenue at a point in time, generally upon shipment or delivery of the products to the customer or distributors, depending upon terms of the sales order. Method and Impact of Adoption Effective as of July 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) An assessment was made on the impact of all existing arrangements as at the date of adoption, under ASC 606, to identify the cumulative effect of applying ASC 606 on the beginning retained earnings. The Company quantified the impact of the adoption on its financial position, results of operations and cash flow. The impact amounted to 0.06% of fiscal 2018 revenue or $28, which is immaterial to the Company. Hence, based on materiality principle, the Company concluded that the cumulative adjustment is not required to be made to the Company’s Beginning Retained Earnings. The impact is primarily driven by the changes related to the accounting of standard warranty. Prior to adoption of ASC 606, the Company accounted for the estimated warranty cost as a charge to costs of sales when revenue was recognized. Upon adoption of ASC 606, the standard warranty for customized products is recognized as a separate performance obligation. The Company has completed its adoption and implemented policies, processes and controls to support the standard’s measurement and disclosure requirements. The Company recognizes net product revenue when it satisfies the obligations as evidenced by the transfer of control of its products and services to customers. The guidance did not have material impact on the Company’s consolidated financial results. Contract Balances The timing of revenue recognition, billings and cash collections may result in accounts receivable, contract assets, and contract liabilities (deferred revenue) on the Company’s condensed consolidated balance sheet. A receivable is recorded in the period the Company delivers products or provides services when the Company has an unconditional right to payment. Contract assets primarily relate to the value of products and services transferred to the customer for which the right to payment is not just dependent on the passage of time. Contract assets are transferred to receivable when rights to payment become unconditional. A contract liability is recognized when the Company receives payment or has an unconditional right to payment in advance of the satisfaction of performance. The contract liabilities represent (1) Deferred product revenue related to the value of products that have been shipped and billed to customers and for which the control has not been transferred to the customers, and (2) Deferred service revenue, which is recorded when the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring services to the customer under the terms of a sales contract. Deferred service revenue typically results from warranty services, and maintenance and other service contracts. As of July 1, 2018, deferred income amounting to $260 was reclassified from other receivables to contract assets and customer deposits amounting to $31 was reclassified from accrued expenses to contract liabilities in order to establish the new opening balance for contract assets and liabilities. The Company’s payment terms and conditions vary by contract type, although terms generally include a requirement of payment of 70% to 90% of total contract consideration within 30 to 60 days of shipment, with the remainder payable within 30 days of acceptance. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component. C The following table summarizes the effects of adopting ASU 2014-09 as an adjustment to the opening balance. Balance as of June 30, 2018 Adjustment for (ASC 606) Opening as of July 1, 2018 Assets Trade Accounts Receivable 8,007 (260 ) 7,747 Other Receivables Others 621 - 621 Contract Assets - 260 260 Total 621 260 881 Balance as of June 30, 2018 Adjustment for (ASC 606) Opening as of July 1, 2018 Liabilities Accounts Payable 3,704 - 3,704 Accrued Expenses Others 3,172 (31 ) 3,141 Contract Liabilities - 31 31 Total 3,172 - 3,172 The following table is the reconciliation of contract balances. June 30, 2019 (Audited) $ July 1, 2018 (Audited) $ Trade Accounts Receivable 7,113 7,747 Trade Accounts Payable 3,272 3,704 Contract Assets 419 260 Contract Liabilities 501 31 Remaining Performance Obligation The remaining performance obligation (RPO) disclosure provides the aggregate amount of the transaction price yet to be recognized as of the end of the reporting period and an explanation as to when the company expects to recognize these amounts in revenue. It is intended to be a statement of overall work under contract that has not yet been performed and does not include contracts in which the customer is not committed. The customer is not considered committed when they are able to terminate for convenience without payment of a substantive penalty. The disclosure includes estimates of variable consideration, except when the variable consideration is a sale based or usage-based royalty promised in exchange for a license of intellectual property. Additionally, as a practical expedient, the Company does not include contracts that have an original duration of one year or less. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, and adjustment for revenue that has not materialized and adjustments for currency. As at June 30, 2019, the aggregate amount of the transaction price allocated to RPO related to customer contracts that are unsatisfied or partially unsatisfied was $1,038. Given the profile of contract terms, approximately 23.5% percent of this amount is expected to be recognized as revenue over the next two years, approximately 76.5% percent between three and five years. Practical Expedients The Company applies the following practical expedients: ● The Company accounts for shipping and handling costs as activities to fulfil the promise to transfer the goods, instead of a promised service to its customer. ● The Company has not elected to adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will generally be one year or less. ● The Company has elected to adopt the practical expedient for contract costs, specifically in relation to incremental costs of obtaining a contract. Costs to obtain a contract are not material, and the Company generally expenses such costs as incurred because the amortization period is one year or less. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | The Company adopted ASC Topic 260, Earnings Per Share. Options to purchase 673,500 shares of Common Stock at exercise prices ranging from $2.69 to $5.98 per share were outstanding as of June 30, 2019. No outstanding options were excluded in the computation of diluted EPS for fiscal year 2019 since all options were dilutive. Options to purchase 657,500 shares of Common Stock at exercise prices ranging from $3.41 to $5.98 per share were outstanding as of June 30, 2018. No outstanding options were excluded in the computation of diluted EPS for fiscal year 2018 since all options were dilutive. The following table is a reconciliation of the weighted average shares used in the computation of basic and diluted EPS for the years presented herein: For the Year Ended June 30, 2019 2018 Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ 1,548 $ 1,197 Loss attributable to Trio-Tech International common shareholders from discontinued operations, net of tax $ (3 ) $ (13) Net Income attributable to Trio-tech International common shareholders 1,545 1,184 Weighted average number of common shares outstanding - basic 3,673 3,553 Dilutive effect of stock options 89 218 Number of shares used to compute earnings per share - diluted 3,762 3,771 Basic Earnings per Share: Basic earnings per share from continuing operations attributable to Trio-Tech International $ 0.42 $ 0.34 Basic loss per share from discontinued operations attributable to Trio-Tech International $ - $ (0.01) Basic Earnings per Share from Net Income Attributable to Trio-Tech International $ 0.42 $ 0.33 Diluted Earnings per Share: Diluted earnings per share from continuing operations attributable to Trio-Tech International $ 0.41 $ 0.32 Diluted loss per share from discontinued operations attributable to Trio-Tech International - (0.01) Diluted Earnings per Share from Net Income Attributable to Trio-Tech International $ 0.41 $ 0.31 |
STOCK OPTIONS
STOCK OPTIONS | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
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 during the term of such plan to increase the number of shares covered thereby. As of the last amendment thereof, the 2007 Employee Plan covered an aggregate of 600,000 shares of the Company’s Common Stock and the 2007 Directors Plan covered an aggregate of 500,000 shares of the Company’s Common Stock. Each of those plans terminated by its respective terms on September 24, 2017. These two plans were administered by the Board, which also established the terms of the awards. On September 14, 2017, the Company’s Board of Directors unanimously adopted the 2017 Employee Stock Option Plan (the “2017 Employee Plan”) and the 2017 Directors Equity Incentive Plan (the “2017 Directors Plan”) each of which was approved by the shareholders on December 4, 2017. Each of these plans is administered by the Board of Directors of the Company. Assumptions The fair value for the options granted were estimated using the Black-Scholes option pricing model with the following weighted average assumptions, assuming no expected dividends: For the Year Ended June 30, 2019 2018 Expected volatility 45.38% to 97.48% 47.29% to 104.94% Risk-free interest rate 0.30% to 2.35% 0.30% to 0.78% Expected life (years) 2.5 -3.25 2.50 The expected volatilities are based on the historical volatility of the Company’s stock. Due to higher volatility, the observation is made on a daily basis for the twelve months ended June 30, 2019. 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 2017 Employee Stock Option Plan The Company’s 2017 Employee Plan permits the grant of stock options to its employees covering up to an aggregate of 300,000 shares of Common Stock. Under the 2017 Employee Plan, all options must be granted with an exercise price of 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 2017 Employee Plan are exercisable within five years after the date of grant, and vest over the period as follows: 25% vesting on the grant date and the remaining balance vesting in equal installments on the next three succeeding anniversaries of the grant date. The share-based compensation will be recognized in terms of the grade method on a straight-line basis for each separately vesting portion of the award. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2017 Employee Plan). The Company granted options to purchase 76,000 shares of its Common Stock to employees pursuant to the 2017 Employee Plan during the twelve months ended June 30, 2019. There were no stock options exercised during the twelve months ended June 30, 2019. The Company recognized stock-based compensation expenses of $18 and $29 in the three and twelve months ended June 30, 2019 under the 2017 Employee Plan. The balance of unamortized stock-based compensation of $14 based on fair value on the grant date related to options granted under the 2017 Employee Plan is to be recognized over a period of three years. The weighted-average remaining contractual term for non-vested options was 2.37 years. As of June 30, 2019, there were vested employee stock options granted under the 2017 Employee Plan covering a total of 49,000 shares of Common Stock. The weighted-average exercise price was $4.97, and the weighted average contractual term was 4.11 years. The total fair value of vested and outstanding employee stock options as of June 30, 2019 was $244. The Company granted options to purchase 60,000 shares of its Common Stock to employee directors pursuant to the 2017 Employee Plan during the twelve months ended June 30, 2018. The Company recognized stock-based compensation expenses of $6 in the twelve months ended June 30, 2018 under the 2017 Employee Plan. The balance of unamortized stock-based compensation of $9 based on fair value on the grant date related to options granted under the 2017 Employee Plan is to be recognized over a period of three years. No stock options were exercised during the twelve months ended June 30, 2018. The weighted-average remaining contractual term for non-vested options was 5.98 years. As of June 30, 2018 there were vested employee stock options that were exercisable covering a total of 15,000 shares of Common Stock. The weighted-average exercise price was $5.98 and the weighted average contractual term was 4.73 years. The total fair value of vested and outstanding employee stock options was $90. A summary of option activities under the 2017 Employee Plan during the twelve-month period ended June 30, 2019 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 60,000 $ 5.98 4.73 $ - Granted 76,000 3.38 - - Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2019 136,000 4.53 4.28 - Exercisable at June 30, 2019 49,000 4.97 4.11 - A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2019 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2018 45,000 $ 5.98 Granted 76,000 3.38 Vested (34,000 ) (4.53 ) Forfeited - - Non-vested at June 30, 2019 87,000 $ 4.28 A summary of option activities under the 2017 Employee Plan during the twelve-month period ended June 30, 2018 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 - $ - - $ - Granted 60,000 5.98 4.98 - Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2018 60,000 5.98 4.73 - Exercisable at June 30, 2018 15,000 5.98 4.73 - A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2018 is presented below: Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2017 - $ - Granted 60,000 5.98 Vested (15,000 ) 5.98 Forfeited - - Non-vested at June 30, 2018 45,000 5.98 2007 Employee Stock Option Plan The 2007 Directors Plan terminated by its terms on September 24, 2017 and no further options may be granted thereunder. However, the options outstanding thereunder continue to remain outstanding and in effect in accordance with their terms. The 2007 Employee Plan permitted the issuance of options to employees. As the 2007 Plan has terminated, the Company did not grant any options pursuant to the 2007 Employee Plan during the twelve months ended June 30, 2019. There were 50,000 options exercised during the twelve months ended June 30, 2019. The Company recognized stock-based compensation expenses of $1 in the twelve months ended June 30, 2019 under the 2007 Employee Plan. The Company did not grant any options pursuant to the 2007 Employee Plan during the twelve months ended June 30, 2018. There were no options exercised during the twelve months ended June 30, 2018. The Company recognized stock-based compensation expenses of $4 in the twelve months ended June 30, 2018 under the 2007 Employee Plan. The balance of unamortized stock-based compensation of $1 based on fair value on the grant date related to options granted under the 2007 Employee Plan is to be recognized over a period of three years. As of June 30, 2019, there were vested employee stock options that were exercisable covering a total of 68,125 shares of Common Stock. The weighted-average exercise price was $3.62 and the weighted average contractual term was 2.15 years. The total fair value of vested and outstanding employee stock options as of June 30, 2019 was $247. A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2019 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 127,500 $ 3.52 2.10 $ 121 Granted - - - - Exercised (50,000 ) 3.26 - - Forfeited or expired - - - - Outstanding at June 30, 2018 77,500 $ 3.69 2.22 $ - Exercisable at June 30, 2018 68,125 $ 3.62 2.15 $ - A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2018 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 127,500 $ 3.52 3.10 $ 187 Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2018 127,500 $ 3.52 2.10 $ 121 Exercisable at June 30, 2018 98,750 $ 3.43 1.73 $ 103 The aggregate intrinsic value of the 127,500 shares of common stock upon exercise of options was $121. A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2019 is presented below: Weighted Average Grant-Date Options Fair Value Non-vested at July 1, 2018 28,750 $ 3.83 Granted - - Vested (19,375 ) (3.69 ) Forfeited - - Non-vested at June 30, 2019 9,375 $ 4.14 A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2018 is presented below: Weighted Average Grant-Date Options Fair Value Non-vested at July 1, 2017 48,125 $ 3.77 Granted - - Vested (19,375 ) (3.43 ) Forfeited - - Non-vested at June 30, 2018 28,750 $ 3.83 2017 Directors Equity Incentive Plan The 2017 Directors Plan permits the grant of options covering up to an aggregate of 300,000 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. In the fiscal year ended June 30, 2019 the Company granted options to purchase 80,000 shares of its Common Stock to directors pursuant to the 2017 Directors Plan with an exercise price equal to the fair market value of Common Stock (as defined under the 2017 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) at the date of grant. The fair value of the options granted to purchase 80,000 shares of the Company’s Common Stock was approximately $262 based on the fair value of $3.28 per share determined by the Black Scholes option pricing model. As all of the stock options granted under the 2017 Directors Plan vest immediately at the date of grant, there were no unvested stock options granted under the 2017 Directors Plan as of June 30, 2019. There were no options exercised during the twelve months ended June 30, 2019. The Company recognized stock-based compensation expenses of $26 in the twelve months ended June 30, 2019 under the 2017 Directors Plan. In the fiscal year ended June 30, 2018, the Company granted options to purchase 80,000 shares of its Common Stock to directors pursuant to the 2017 Directors Plan with an exercise price equal to the fair market value of Common Stock (as defined under the 2017 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) at the date of grant. The fair value of the options granted to purchase 80,000 shares of the Company’s Common Stock was approximately $478 based on the fair value of $5.98 per share determined by the Black Scholes option pricing model. As all of the stock options granted under the 2017 Directors Plan vest immediately at the date of grant, there were no unvested stock options granted under the 2017 Directors Plan as of June 30, 2018. The Company recognized stock-based compensation expenses of $33 in the twelve months ended June 30, 2018 under the 2017 Directors Plan. A summary of option activities under the 2017 Directors Plan during the twelve months ended June 30, 2019 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 80,000 $ 5.98 4.73 $ - Granted 80,000 3.28 4.78 - Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2019 160,000 4.63 4.25 - Exercisable at June 30, 2019 160,000 4.63 4.25 - 2007 Directors Equity Incentive Plan The 2007 Directors Plan terminated by its terms on September 24, 2017 and no further options may be granted thereunder. However, the options outstanding thereunder continue to remain outstanding and in effect in accordance with their terms. The 2007 Directors Plan permitted the grant of options covering up to an aggregate of 500,000 shares of Common Stock to its directors in the form of 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. As the 2007 Directors plan terminated in fiscal 2018, the Company did not grant any options pursuant to the 2007 Director Plan during the twelve months ended June 30, 2019. There were 70,000 worth of stock options exercised during the twelve months period ended June 30, 2019. The Company did not recognize any stock based compensation expenses during the twelve months ended June 30, 2019. As of June 30, 2019, there were vested director stock options covering a total of 300,000 shares of Common Stock. The weighted-average exercise price was $3.40 and the weighted average remaining contractual term was 1.58 years. The total fair value of vested directors' stock options as of June 30, 2019 was $1,021. All of our director stock options vest immediately at the date of grant. There were no unvested director stock options as of June 30, 2019. As of June 30, 2018, there were vested director stock options covering a total of 390,000 shares of Common Stock. The weighted-average exercise price was $3.41 and the weighted average remaining contractual term was 2.05 years. The total fair value of vested directors' stock options as of June 30, 2018 was $1,331. All of our director stock options vest immediately at the date of grant. There were no unvested director stock options as of June 30, 2018. A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2019 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 390,000 3.41 2.05 412 Granted - - - - Exercised (70,000 ) 3.40 - - Forfeited or expired (20,000 ) 3.62 - - Outstanding at June 30, 2019 300,000 3.40 1.58 9 Exercisable at June 30, 2019 300,000 3.40 1.58 9 A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2018 is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 415,000 3.36 2.93 673 Granted - - - - Exercised (20,000 ) 2.59 - - Forfeited or expired (5,000 ) 2.07 - - Outstanding at June 30, 2018 390,000 3.41 2.05 412 Exercisable at June 30, 2018 390,000 3.41 2.05 412 |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | In accordance with the provisions of ASC Topic 810, the Company has classified the non-controlling interest as a component of stockholders’ equity in the accompanying consolidated balance sheets. Additionally, the Company has presented the net income attributable to the Company and the non-controlling ownership interests separately in the accompanying consolidated financial statements. Non-controlling interest represents the minority stockholders’ share of 45% of the equity of Trio-Tech Malaysia Sdn. Bhd., 45% interest in SHI International Pte. Ltd., and 24% interest in Prestal Enterprise Sdn. Bhd., which are subsidiaries of the Company. The table below reflects a reconciliation of the equity attributable to non-controlling interest: For the Year Ended June 30, Non-controlling interest 2019 2018 Beginning balance $ 1,522 $ 1,426 Net income (97 ) 106 Dividend declared by a subsidiary (125 ) (189 ) Translation adjustment (105 ) 179 Ending balance $ 1,195 $ 1,522 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation - Ownership Location Express Test Corporation (Dormant) 100% Van Nuys, California Trio-Tech Reliability Services (Dormant) 100% Van Nuys, California KTS Incorporated, dba Universal Systems (Dormant) 100% Van Nuys, California European Electronic Test Centre (Dormant) 100% Dublin, Ireland Trio-Tech International Pte. Ltd. 100% Singapore Universal (Far East) Pte. Ltd. * 100% Singapore Trio-Tech International (Thailand) Co. Ltd. * 100% Bangkok, Thailand Trio-Tech (Bangkok) Co. Ltd. 100% Bangkok, Thailand (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. 55% Selangor, Malaysia (100% owned by Trio-Tech Malaysia Sdn. Bhd.) Prestal Enterprise Sdn. Bhd. 76% Selangor, Malaysia (76% owned by Trio-Tech International Pte. Ltd.) Trio-Tech (SIP) Co., Ltd. * 100% Suzhou, China Trio-Tech (Chongqing) Co. Ltd. * 100% Chongqing, China SHI International Pte. Ltd. (Dormant) (55% owned by Trio-Tech International Pte. Ltd) 55% Singapore PT SHI Indonesia (Dormant) (100% owned by SHI International Pte. Ltd.) 55% Batam, Indonesia Trio-Tech (Tianjin) Co., Ltd. * 100% Tianjin, China * 100% owned by Trio-Tech International Pte. Ltd. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP’’). The basis of accounting differs from that used in the statutory financial statements of the Company’s subsidiaries and equity investee companies, which are prepared in accordance with the accounting principles generally accepted in their respective countries of incorporation. In the opinion of management, the consolidated financial statements have reflected all costs incurred by the Company and its subsidiaries in operating the business. All dollar amounts in the financial statements and in the notes herein are presented in thousands of United States dollars (US$’000) unless otherwise designated. |
Liquidity | Liquidity The Company’s core businesses - testing services, manufacturing (assembly) and distribution - operate in a volatile industry, whereby its average selling prices and product costs are influenced by competitive factors. These factors create pressures on sales, costs, earnings and cash flows, which will impact liquidity. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The Company translates assets and liabilities of its subsidiaries outside the U.S. into U.S. dollars using the rate of exchange prevailing at the fiscal year end, and the consolidated statements of operations and comprehensive income or loss is translated at average rates during the reporting period. Adjustments resulting from the translation of the subsidiaries’ financial statements from foreign currencies into U.S. dollars are recorded in shareholders' equity as part of accumulated other comprehensive gain - translation adjustments. Gains or losses resulting from transactions denominated in currencies other than functional currencies of the Company’s subsidiaries are reflected in income for the reporting period. |
Use of Estimates | Use of Estimates — |
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers We apply a five-step approach as defined in ASC Topic 606 in determining the amount and timing of revenue to be recognized: (1) identifying the contract with customer; (2) identifying the performance obligations in the contracts; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. Revenue derived from testing services is recognized when testing services are rendered. Revenue generated from sale of products in the manufacturing and distribution segments are recognized when persuasive evidence of an arrangement exists, delivery of the products has occurred, customer acceptance has been obtained (which means the significant risks and rewards of ownership have been transferred to the customer), the price is fixed or determinable and collectability is reasonably assured. Certain customers can request for installation and training services to be performed for certain products sold in the manufacturing segment. These services are mainly on helping customers with the test runs of the machines sold and are considered a separate performance obligation. Such services can be provided by other entities as well and these do not significantly modify the product. The Company recognizes the revenue at point in time when the Company has satisfied its performance obligation. In the real estate segment: (1) revenue from property development is earned and recognized on the earlier of the dates when the underlying property is sold or upon the maturity of the agreement; if this amount is uncollectible, the agreement empowers the repossession of the property, and (2) rental revenue is recognized on a straight-line basis over the terms of the respective leases. This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue is commenced when the tenant assumes possession of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. |
GST / Indirect Taxes | GST / Indirect Taxes |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts — The Company’s management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. The Company includes any account balances that are determined to be uncollectible, along with a general reserve, in the overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to management, the Company believed that its allowance for doubtful accounts was adequate as of June 30, 2019 and 2018. |
Warranty Costs | Warranty Costs — |
Cash and Cash Equivalents | Cash and Cash Equivalents — |
Term Deposits and Restricted Term Deposits | Term Deposits — Restricted Term Deposits — |
Inventories | Inventories |
Property, Plant and Equipment & Investment Property | Property, Plant and Equipment & Investment Property Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and improvements to the assets are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the consolidated statements of operations and comprehensive income or loss. |
Long-Lived Assets and Impairment | Long-Lived Assets and Impairment – The Company evaluates the long-lived assets, including property, plant and equipment and investment property, for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for our business, significant negative industry or economic trends, and a significant decline in the stock price for a sustained period of time. Impairment is recognized based on the difference between the fair value of the asset and its carrying value, and fair value is generally measured based on discounted cash flow analysis, if there is significant adverse change. The Company applies the provisions of ASC Topic 360, Accounting for the Impairment or Disposal of Long-Lived Assets |
Leases | Leases Accounting for Leases The Company’s management expects that in the normal course of business, operating leases will be renewed or replaced by other leases. The future minimum operating lease payments, for which the Company is contractually obligated as of June 30, 2019, are disclosed in these notes to the consolidated financial statements. Assets under capital leases are capitalized using interest rates appropriate at the inception of each lease and are depreciated over either the estimated useful life of the asset or the lease term on a straight-line basis. The present value of the related lease payments is recorded as a contractual obligation. The future minimum annual capital lease payments are included in the total future contractual obligations as disclosed in the notes to the consolidated financial statements. |
Comprehensive Income or Loss | Comprehensive Income or Loss — Reporting Comprehensive Income, |
Income Taxes | Income Taxes — Accounting for Income Taxes . The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The Company recognizes potential liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. |
Retained Earnings | Retained Earnings — |
Research and Development Costs | Research and Development Costs — |
Stock Based Compensation | Stock Based Compensation , Compensation – Stock Compensation |
Earnings per Share | Earnings per Share — |
Fair Values of Financial Instruments | Fair Values of Financial Instruments ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The financial assets and financial liabilities that require recognition under the guidance include available-for-sale investments, employee deferred compensation plan and foreign currency derivatives. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. As such, fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. The hierarchy is broken down into three levels based on the reliability of inputs as follows: ● Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Financial assets utilizing Level 1 inputs include U.S. treasuries, most money market funds, marketable equity securities and our employee deferred compensation plan; ● Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, directly or indirectly. Financial assets and liabilities utilizing Level 2 inputs include foreign currency forward exchange contracts, most commercial paper and corporate notes and bonds; and ● Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Financial assets utilizing Level 3 inputs primarily include auction rate securities. We use an income approach valuation model to estimate the exit price of the auction rate securities, which is derived as the weighted-average present value of expected cash flows over various periods of illiquidity, using a risk adjusted discount rate that is based on the credit risk and liquidity risk of the securities. |
Concentration of Credit Risk | Concentration of Credit Risk |
Investments | Investments |
Equity Method | Equity Method |
Cost Method | Cost Method |
Loan Receivables from Property Development Projects | Loan Receivables from Property Development Projects Interest income on the loan receivables from property development projects are recognized on an accrual basis. Discounts and premiums on loans are amortized to income using the interest method over the remaining period to contractual maturity. The amortization of discounts into income is discontinued on loans that are contractually 90 days past due or when collection of interest appears doubtful. |
Contingent liabilities | Contingent Liabilities If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Subsidiaries | Ownership Location Express Test Corporation (Dormant) 100% Van Nuys, California Trio-Tech Reliability Services (Dormant) 100% Van Nuys, California KTS Incorporated, dba Universal Systems (Dormant) 100% Van Nuys, California European Electronic Test Centre (Dormant) 100% Dublin, Ireland Trio-Tech International Pte. Ltd. 100% Singapore Universal (Far East) Pte. Ltd. * 100% Singapore Trio-Tech International (Thailand) Co. Ltd. * 100% Bangkok, Thailand Trio-Tech (Bangkok) Co. Ltd. 100% Bangkok, Thailand (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. 55% Selangor, Malaysia (100% owned by Trio-Tech Malaysia Sdn. Bhd.) Prestal Enterprise Sdn. Bhd. 76% Selangor, Malaysia (76% owned by Trio-Tech International Pte. Ltd.) Trio-Tech (SIP) Co., Ltd. * 100% Suzhou, China Trio-Tech (Chongqing) Co. Ltd. * 100% Chongqing, China SHI International Pte. Ltd. (Dormant) (55% owned by Trio-Tech International Pte. Ltd) 55% Singapore PT SHI Indonesia (Dormant) (100% owned by SHI International Pte. Ltd.) 55% Batam, Indonesia Trio-Tech (Tianjin) Co., Ltd. * 100% Tianjin, China * 100% owned by Trio-Tech International Pte. Ltd. |
TERM DEPOSITS (Tables)
TERM DEPOSITS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
Term deposits | June 30, 2019 June 30, 2018 Short-term deposits $ 4,143 $ 606 Currency translation effect on short-term deposits 1 47 Total short-term deposits 4,144 653 Restricted term deposits 1,701 1,664 Currency translation effect on restricted term deposits 5 31 Total restricted term deposits 1,706 1,695 Total Term deposits $ 5,850 $ 2,348 |
TRADE ACCOUNTS RECEIVABLE AND_2
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Changes in the allowance for doubtful accounts | For the Year Ended June 30, 2019 2018 Beginning $ 259 $ 247 Additions charged to expenses 94 8 Recovered (84 ) (1 ) Write-off - - Currency translation effect (6 ) 5 Ending $ 263 $ 259 |
LOAN RECEIVABLE FROM PROPERTY D
LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Companys loans receivable from property development projects | Loan Expiry Loan Amount Loan Amount Date (RMB) (U.S. Dollars) Short-term loan receivables JiangHuai (Project - Yu Jin Jiang An) May 31, 2013 2,000 325 Less: allowance for doubtful receivables (2,000 ) (325 ) Net loan receivable from property development projects - - Long-term loan receivables Jun Zhou Zhi Ye Oct 31, 2016 5,000 814 Less: transfer – down-payment for purchase of investment property (5,000 ) (814 ) Net loan receivable from property development projects - - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | For the Year Ended June 30, 2019 2018 Raw materials $ 1,190 $ 1,153 Work in progress 1,306 1,947 Finished goods 591 505 Less: provision for obsolete inventory (673 ) (695 ) Currency translation effect 13 20 $ 2,427 $ 2,930 |
Changes in provision for obsolete inventory | For the Year Ended June 30, 2019 2018 Beginning $ 695 $ 686 Additions charged to expenses 17 9 Usage - disposition (42 ) (5 ) Currency translation effect 3 5 Ending $ 673 $ 695 |
ASSETS HELD FOR SALE (Tables)
ASSETS HELD FOR SALE (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Assets Held-for-sale, Not Part of Disposal Group [Abstract] | |
Assets held for sale | For the Year Ended June 30, 2019 2018 Investment Date / Reclassification Date Investment Amount Investment Amount Investment Amount (RM) (U.S. Dollars) (U.S. Dollars) Penang Property Reclassification from investment property June 30, 2015 681 181 181 Currency translation - (15) (13) 681 166 168 Accumulated depreciation on rental property June 30, 2015 (310 ) (83) (83) Currency translation - 6 6 (310 ) (77) (77) Net investment in rental property - Malaysia 371 89 91 |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Companys investment in the property based on the exchange rate | The following table presents the Company’s investment in properties in China as of June 30, 2019. The exchange rate is based on the market rate as of June 30, 2019. Investment Date / Reclassification Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I – MaoYe Property Jan 04, 2008 5,554 894 Currency translation - (87 ) Reclassification as “Assets held for sale” July 01, 2018 (5,554 ) (807 ) Reclassification from “Assets held for sale” Mar 31, 2019 2,024 301 2,024 301 Purchase of rental property – Property II - JiangHuai Jan 06, 2010 3,600 580 Purchase of rental property – Property III - Fu Li Apr 08, 2010 4,025 648 Currency translation - (124 ) Gross investment in rental property 9,649 1,405 Accumulated depreciation on rental property June 30, 2019 (6,075 ) (890 ) Reclassified as “Assets held for sale” July 01, 2018 2,822 410 Reclassification from “Assets held for sale” Mar 31, 2019 (1,029 ) (143 ) (4,282 ) (623 ) Net investment in property – China 5,367 782 The following table presents the Company’s investment in properties in China as of June 30, 2018. The exchange rate is based on the market rate as of June 30, 2018. Investment Date Investment Amount (RMB) Investment Amount (U.S. Dollars Purchase of rental property – Property I - MaoYe Property 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 - (131 ) Gross investment in rental property 13,179 1,991 Accumulated depreciation on rental property June 30,2018 (5,596 ) (845 ) Net investment in property – China 7,583 1,146 The following table presents the Company’s investment in properties in Malaysia as of June 30, 2019 and June 30, 2018. 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 Investment Amount (RM) (U.S. Dollars) Purchase of Penang Property Dec 31, 2012 681 181 Currency translation - (15 ) Reclassification as “Assets held for sale” June 30, 2015 (681 ) (166 ) - - Accumulated depreciation on rental property June 30, 2015 (310 ) (83 ) Currency translation - 6 Reclassified as “Assets held for sale” June 30, 2015 (310 ) (77 ) Net investment in rental property - Malaysia - - |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Estimated Useful June 30, Life in Years 2019 2018 Building and improvements 3-20 $ 5,082 $ 5,070 Leasehold improvements 3-27 6,150 6,093 Machinery and equipment 3-7 26,140 24,138 Furniture and fixtures 3-5 1,111 1,029 Equipment under capital leases 3-5 928 928 Property, plant and equipment, gross $ 39,411 $ 37,258 Less: accumulated depreciation (25,083 ) (23,440 ) Accumulated amortization on equipment under capital leases (808 ) (795 ) Total accumulated depreciation $ (25,891 ) $ (24,235 ) Property, plant and equipment before currency translation effect, net 13,520 13,023 Currency translation effect (1,361 ) (1,088 ) Property, plant and equipment, net $ 12,159 $ 11,935 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Other Assets [Abstract] | |
Other assets | June 30, 2019 2018 Down payment for purchase of investment properties $ 1,645 $ 1,645 Down payment for purchase of property, plant and equipment 100 561 Deposits for rental and utilities 169 140 Currency translation effect (164 ) (97 ) Total $ 1,750 $ 2,249 |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Line of Credit Facility [Abstract] | |
Lines of credit | As of June 30, 2019, 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 Trio-Tech (Tianjin) Co., Ltd. Universal (Far East) Pte. Ltd. Lines of Credit Lines of Credit Lines of Credit Ranging from 1.85% to 5.5% 5.22% to 6.3% Ranging from 1.85% to 5.5% - - - $ $ $ 4,213 1,492 370 $ $ $ 4,213 1,492 183 As of June 30, 2018, 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 Trio-Tech (Tianjin) Co., Ltd. Universal (Far East) Pte. Ltd. Lines of Credit Lines of Credit Lines of Credit Ranging from 1.6% to 5.5% 5.22% Ranging from 1.6% to 5.5% - - - $ $ $ 4,183 1,511 367 $ $ $ 3,325 437 256 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued expenses | For the Year Ended June 30, 2019 2018 Payroll and related costs 1,354 1,545 Commissions 107 89 Customer deposits 46 17 Legal and audit 299 265 Sales tax 9 17 Utilities 120 130 Warranty 39 82 Accrued purchase of materials and property, plant and equipment 362 454 Provision for re-instatement 302 289 Deferred income 61 - Contract Liabilities 501 31 Other accrued expenses 293 172 Currency translation effect (7 ) 81 Total $ 3,486 $ 3,172 |
WARRANTY ACCRUAL (Tables)
WARRANTY ACCRUAL (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Warranty Accrual | |
Warranty liability | For the Year Ended June 30, 2019 2018 Beginning $ 82 $ 48 Additions charged to cost and expenses 15 64 Utilization / reversal (58 ) (30 ) Currency translation effect - - Ending $ 39 $ 82 |
BANK LOANS PAYABLE (Tables)
BANK LOANS PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Loans Payable [Abstract] | |
Bank loans payable | June 30, 2019 June 30, 2018 Note payable denominated in RM for expansion plans in Malaysia, maturing in August 2024, bearing interest rate at bank’s lending rate minus 2% and 5.00% at June 30, 2019 and June 30, 2018 per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with a carrying value of $2,683 and $2,809, as at June 30, 2019 and June 30, 2018, respectively. $ 2 ,696 $ 1,615 Note payable denominated in U.S. dollars for expansion plans in Singapore and its subsidiaries, maturing in April 2020, bearing interest at the bank’s lending rate (3.96% for June 30, 2019 and June 30, 2018, respectively) with monthly payments of principal plus interest through April 2017. This note payable is secured by plant and equipment with a carrying value of $148 and $187 as of June 30, 2019 and June 30, 2018, respectively. 142 293 Total bank loans payable 2,838 1,908 Current portion of bank loan payable 494 380 Currency translation effect on current portion of bank loan (6 ) (13 ) Current portion of bank loan payable 488 367 Long term portion of bank loan payable 2,344 1,528 Currency translation effect on long-term portion of bank loan (52 ) (91 ) Long term portion of bank loans payable $ 2,292 $ 1,437 |
Future minimum payments | Future minimum payments (excluding interest) as of June 30, 2019 were as follows: 2020 $ 488 2021 362 2022 380 2023 399 2024 407 Thereafter 744 Total obligations and commitments $ 2,780 Future minimum payments (excluding interest) as of June 30, 2018 were as follows: 2019 $ 367 2020 372 2021 242 2022 254 2023 267 Thereafter 302 Total obligations and commitments $ 1,804 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum payments under leases | Future minimum payments under capital leases and non-cancelable operating leases and net rental income under non-cancelable sub-leased properties as of June 30, 2019 were as follows: Sub-lease Net For the Year Ending June 30, Capital Leases Operating Leases Rental (Income) Operating Leases 2020 $ 283 $ 646 $ (26 ) $ 620 2021 187 216 - 216 2022 143 47 - 47 2023 68 1 - 1 2024 44 - - - Total future minimum lease payments $ 725 $ 910 $ (26 ) $ 884 Less: amount representing interest - Present value of net minimum lease payments 725 Less: current portion of capital lease obligations 283 Long-term obligations under capital leases $ 442 Future minimum payments under capital leases and non-cancelable operating leases and net rental income under non-cancelable sub-leased properties as of June 30, 2018 were as follows: Sub-lease Net For the Year Ending June 30, Capital Leases Operating Leases Rental (Income) Operating Leases 2019 $ 250 $ 717 $ (26 ) $ 691 2020 249 531 (26 ) 505 2021 150 44 - 44 2022 102 - - - 2023 23 - - - Total future minimum lease payments $ 774 $ 1,292 $ (52 ) $ 1,240 Less: amount representing interest - Present value of net minimum lease payments 774 Less: current portion of capital lease obligations 250 Long-term obligations under capital leases $ 524 |
CONCENTRATION OF CUSTOMERS (Tab
CONCENTRATION OF CUSTOMERS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of customers | For the Year Ended June 30, 2019 2018 Revenue - Customer A 41.9 % 51.4 % - Customer B 11.4 % 9.3 % Trade Accounts Receivable - Customer A 41.3 % 57.9 % - Customer B 3.3 % 1.3 % |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business segments | Business Segment Information: Year Operating Depr. Ended Net Income Total and Capital June 30, Revenue (Loss) Assets Amort. Expenditures Manufacturing 2019 $ 14,889 $ 575 $ 9,576 $ 120 $ 52 2018 $ 15,978 $ 548 $ 8,549 $ 115 $ 143 Testing Services 2019 16,760 (164 ) 22,182 2,244 2,789 2018 19,391 1,522 23,480 1,997 2,166 Distribution 2019 7,451 598 785 - - 2018 6,853 475 789 - - Real Estate 2019 98 (92 ) 3,826 86 - 2018 139 (56 ) 3,521 102 - Fabrication 2019 - - 27 - - Services* 2018 - - 27 - - Corporate & 2019 - (123 ) 131 - - Unallocated 2018 - (301 ) 108 - - Total Company 2019 $ 39,198 $ 794 $ 36,527 $ 2,450 $ 2,841 2018 $ 42,361 $ 2,188 $ 36,474 $ 2,214 $ 2,309 * Fabrication services is a discontinued operation. |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Future minimum rental income | Future minimum rental income in China to be received from fiscal year 2020 to fiscal year 2021 on non-cancellable operating leases is contractually due as follows as of June 30, 2019: 2020 $ 121 2021 35 $ 156 Future minimum rental income in China to be received from fiscal year 2019 to fiscal year 2021 on non-cancellable operating leases is contractually due as follows as of June 30, 2018: 2019 $ 137 2020 121 2021 35 $ 293 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other income | For the Year Ended June 30, 2019 2018 Interest income 100 50 Other rental income 113 110 Exchange gain / (loss) (135 ) (160 ) Government grant 77 126 Bad debt recovery 2 - Other miscellaneous income 92 209 Total $ 249 $ 335 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of income tax provision (benefits) | Income before provision for income taxes consists of the following: For the Year Ended June 30, 2019 2018 United States (308 ) (180 ) International 1,717 2,470 Total $ 1,409 $ 2,290 The components of the provision for income taxes are as follows: For the Year Ended June 30, 2019 2018 Current: Federal $ (337 ) $ 900 State 2 2 Foreign 289 79 $ (46 ) $ 981 Deferred: Federal $ - $ - State - - Foreign 4 6 4 6 Total provisions $ (42 ) $ 987 |
Reconciliation of income tax rate | For the Year Ended June 30, 2019 2018 Statutory federal tax rate 21.00 % (27.55 )% State taxes, net of federal benefit (0.22 ) (6.00 ) Permanent items and credits 11.23 - Foreign rate differential (4.76 ) 32.98 Other 4.71 (1.45 ) Changes in valuation allowance (11.11 ) 4.01 Tax reform related to one-time repatriation tax (23.83 ) (45.0 ) Effective rate (2.98 )% (43.10 )% |
Deferred income tax assets (liabilities) | For the Year Ended June 30, 2019 2018 Deferred tax assets: Net operating losses and credits $ 363 $ 633 Inventory valuation 64 69 Provision for bad debts 296 112 Accrued vacation 94 3 Accrued expenses 325 629 Fixed asset basis 23 - Investment in subsidiaries - 61 Unrealized gain 55 4 Other 73 3 Total deferred tax assets $ 1,293 $ 1,514 Deferred tax liabilities: Depreciation (390 ) (324 ) Others (78 ) - Total deferred income tax liabilities $ (468 ) $ (324 ) Subtotal 825 1,190 Valuation allowance (762 ) (1,117 ) Net deferred tax assets $ 63 $ 73 Presented as follows in the balance sheets: Deferred tax assets 390 400 Deferred tax liabilities (327 ) (327 ) Net deferred tax assets $ 63 $ 73 |
UNRECOGNIZED TAX BENEFITS (Tabl
UNRECOGNIZED TAX BENEFITS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | Balance at June 30, 2019 and June 30, 2018 $ (250 ) |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Revenue | |
Addoption of new accounting standard | Balance as of June 30, 2018 Adjustment for (ASC 606) Opening as of July 1, 2018 Assets Trade Accounts Receivable 8,007 (260 ) 7,747 Other Receivables Others 621 - 621 Contract Assets - 260 260 Total 621 260 881 Balance as of June 30, 2018 Adjustment for (ASC 606) Opening as of July 1, 2018 Liabilities Accounts Payable 3,704 - 3,704 Accrued Expenses Others 3,172 (31 ) 3,141 Contract Liabilities - 31 31 Total 3,172 - 3,172 |
Contract assets and liabilities | June 30, 2019 (Audited) $ July 1, 2018 (Audited) $ Trade Accounts Receivable 7,113 7,747 Trade Accounts Payable 3,272 3,704 Contract Assets 419 260 Contract Liabilities 501 31 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of the weighted average shares | For the Year Ended June 30, 2019 2018 Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ 1,548 $ 1,197 Loss attributable to Trio-Tech International common shareholders from discontinued operations, net of tax $ (3 ) $ (13) Net Income attributable to Trio-tech International common shareholders 1,545 1,184 Weighted average number of common shares outstanding - basic 3,673 3,553 Dilutive effect of stock options 89 218 Number of shares used to compute earnings per share - diluted 3,762 3,771 Basic Earnings per Share: Basic earnings per share from continuing operations attributable to Trio-Tech International $ 0.42 $ 0.34 Basic loss per share from discontinued operations attributable to Trio-Tech International $ - $ (0.01) Basic Earnings per Share from Net Income Attributable to Trio-Tech International $ 0.42 $ 0.33 Diluted Earnings per Share: Diluted earnings per share from continuing operations attributable to Trio-Tech International $ 0.41 $ 0.32 Diluted loss per share from discontinued operations attributable to Trio-Tech International - (0.01) Diluted Earnings per Share from Net Income Attributable to Trio-Tech International $ 0.41 $ 0.31 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Fair value weighted average assumptions | For the Year Ended June 30, 2019 2018 Expected volatility 45.38% to 97.48% 47.29% to 104.94% Risk-free interest rate 0.30% to 2.35% 0.30% to 0.78% Expected life (years) 2.5 -3.25 2.50 |
2017 Employee Plan [Member] | |
Option activities | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2018 60,000 $ 5.98 4.73 $ - Granted 76,000 3.38 - - Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2019 136,000 4.53 4.28 - Exercisable at June 30, 2019 49,000 4.97 4.11 - Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 - $ - - $ - Granted 60,000 5.98 4.98 - Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2018 60,000 5.98 4.73 - Exercisable at June 30, 2018 15,000 5.98 4.73 - |
Company's non-vested employee stock options | Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2018 45,000 $ 5.98 Granted 76,000 3.38 Vested (34,000 ) (4.53 ) Forfeited - - Non-vested at June 30, 2019 87,000 $ 4.28 Options Weighted Average Grant-Date Fair Value Non-vested at July 1, 2017 - $ - Granted 60,000 5.98 Vested (15,000 ) 5.98 Forfeited - - Non-vested at June 30, 2018 45,000 5.98 |
2007 Employee Plan [Member] | |
Option activities | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 127,500 $ 3.52 2.10 $ 121 Granted - - - - Exercised (50,000 ) 3.26 - - Forfeited or expired - - - - Outstanding at June 30, 2018 77,500 $ 3.69 2.22 $ - Exercisable at June 30, 2018 68,125 $ 3.62 2.15 $ - Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 127,500 $ 3.52 3.10 $ 187 Granted - - - - Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2018 127,500 $ 3.52 2.10 $ 121 Exercisable at June 30, 2018 98,750 $ 3.43 1.73 $ 103 |
Company's non-vested employee stock options | Weighted Average Grant-Date Options Fair Value Non-vested at July 1, 2018 28,750 $ 3.83 Granted - - Vested (19,375 ) (3.69 ) Forfeited - - Non-vested at June 30, 2019 9,375 $ 4.14 Weighted Average Grant-Date Options Fair Value Non-vested at July 1, 2017 48,125 $ 3.77 Granted - - Vested (19,375 ) (3.43 ) Forfeited - - Non-vested at June 30, 2018 28,750 $ 3.83 |
2017 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, 2018 80,000 $ 5.98 4.73 $ - Granted 80,000 3.28 4.78 - Exercised - - - - Forfeited or expired - - - - Outstanding at June 30, 2019 160,000 4.63 4.25 - Exercisable at June 30, 2019 160,000 4.63 4.25 - |
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, 2018 390,000 3.41 2.05 412 Granted - - - - Exercised (70,000 ) 3.40 - - Forfeited or expired (20,000 ) 3.62 - - Outstanding at June 30, 2019 300,000 3.40 1.58 9 Exercisable at June 30, 2019 300,000 3.40 1.58 9 Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 1, 2017 415,000 3.36 2.93 673 Granted - - - - Exercised (20,000 ) 2.59 - - Forfeited or expired (5,000 ) 2.07 - - Outstanding at June 30, 2018 390,000 3.41 2.05 412 Exercisable at June 30, 2018 390,000 3.41 2.05 412 |
NON-CONTROLLING INTEREST (Table
NON-CONTROLLING INTEREST (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling interest | For the Year Ended June 30, Non-controlling interest 2019 2018 Beginning balance $ 1,522 $ 1,426 Net income (97 ) 106 Dividend declared by a subsidiary (125 ) (189 ) Translation adjustment (105 ) 179 Ending balance $ 1,195 $ 1,522 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Jun. 30, 2019 | |
Express Test Corporation (Dormant) | ||
Ownership | 100.00% | |
Trio-Tech Reliability Services (Dormant) | ||
Ownership | 100.00% | |
KTS Incorporated, dba Universal Systems (Dormant) | ||
Ownership | 100.00% | |
European Electronic Test Centre (Dormant) | ||
Ownership | 100.00% | |
Trio-Tech International Pte. Ltd | ||
Ownership | 100.00% | |
Universal (Far East) Pte. Ltd | ||
Ownership | 100.00% | [1] |
Trio-Tech International (Thailand) Co. Ltd | ||
Ownership | 100.00% | [1] |
Trio-Tech (Bangkok) Co. Ltd. (49% owned by Trio-Tech International Pte. Ltd. and 51% owned by Trio-Tech International (Thailand) Co. Ltd.) | ||
Ownership | 100.00% | |
Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) | ||
Ownership | 55.00% | |
Trio-Tech (Kuala Lumpur) Sdn. Bhd. (100% owned by Trio-Tech Malaysia Sdn. Bhd.) | ||
Ownership | 55.00% | |
Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.) | ||
Ownership | 76.00% | |
Trio-Tech (SIP) Co. Ltd. | ||
Ownership | 100.00% | [1] |
Trio-Tech (Chongqing) Co. Ltd. SHI International Pte. Ltd. | ||
Ownership | 100.00% | [1] |
SHI International Pte. Ltd. (55% owned by Trio-Tech International Pte. Ltd.) | ||
Ownership | 55.00% | |
PT SHI Indonesia (100% owned by SHI International Pte. Ltd) | ||
Ownership | 55.00% | |
Trio-Tech (Tianjin) Co. Ltd. | ||
Ownership | 100.00% | [1] |
[1] | 100% owned by Trio-Tech International Pte. Ltd. |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net Income Attributable to Trio-Tech International Common Shareholders | $ 1,545 | $ 1,184 |
Earnings retained in subsidiaries | 14,019 | 12,393 |
Research and development costs | 345 | 451 |
Trio-Tech International [Member] | ||
Restricted term deposits | 1,478 | 1,468 |
55% owned Malaysian subsidiary | ||
Short-term deposits | 1,426 | 548 |
Restricted term deposits | 228 | 227 |
Trio-Tech Thailand | ||
Short-term deposits | $ 113 | $ 105 |
TERM DEPOSITS (Details)
TERM DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Deposits [Abstract] | ||
Short-term deposits | $ 4,143 | $ 606 |
Currency translation effect on short-term deposits | 1 | 47 |
Total short-term deposits | 4,144 | 653 |
Restricted term deposits | 1,701 | 1,664 |
Currency translation effect on restricted term deposits | 5 | 31 |
Total restricted term deposits | 1,706 | 1,695 |
Total term deposits | $ 5,850 | $ 2,348 |
TRADE ACCOUNTS RECEIVABLE AND_3
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Beginning | $ 259 | $ 247 |
Additions charged to expenses | 90 | 8 |
Recovered | (84) | (1) |
Write-off | 0 | 0 |
Currency translation effect | (6) | 5 |
Ending | $ 263 | $ 259 |
LOANS RECEIVABLE FROM PROPERT_2
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
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 |
Jiang Huai [Member] | Yuan RMB | ||
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 |
Jun Zhou Zhi Ye [Member] | Yuan RMB | ||
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 |
Jun Zhou Zhi Ye [Member] | USD | ||
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 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,190 | $ 1,153 |
Work in progress | 1,306 | 1,947 |
Finished goods | 591 | 505 |
Less: provision for obsolete inventory | (673) | (695) |
Currency translation effect | 13 | 20 |
Inventory net | $ 2,427 | $ 2,930 |
INVENTORIES (Details 1)
INVENTORIES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | ||
Beginning | $ 695 | $ 686 |
Additions charged to expenses | 17 | 9 |
Usage - disposition | (42) | (5) |
Currency translation effect | 3 | 5 |
Ending | $ 673 | $ 695 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - Property, Plant and Equipment [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Assets held for sale, net book value | $ 89 | $ 91 |
Ringgit RM | ||
Assets held for sale, net book value | 371 | 371 |
Reclassification from investment property | ||
Assets held for sale, net book value | 181 | 181 |
Reclassification from investment property | Ringgit RM | ||
Assets held for sale, net book value | 681 | 681 |
Currency translation 1 | ||
Assets held for sale, net book value | (15) | (13) |
Currency translation 1 | Ringgit RM | ||
Assets held for sale, net book value | 0 | 0 |
Subtotal | ||
Assets held for sale, net book value | 166 | 168 |
Subtotal | Ringgit RM | ||
Assets held for sale, net book value | 0 | 0 |
Accumulated depreciation on rental property | ||
Assets held for sale, net book value | (83) | (83) |
Accumulated depreciation on rental property | Ringgit RM | ||
Assets held for sale, net book value | (310) | (310) |
Currency translation | ||
Assets held for sale, net book value | 6 | 6 |
Currency translation | Ringgit RM | ||
Assets held for sale, net book value | 0 | 0 |
Subtotal | ||
Assets held for sale, net book value | (77) | (77) |
Subtotal | Ringgit RM | ||
Assets held for sale, net book value | $ (310) | $ (310) |
INVESTMENT PROPERTIES (Details)
INVESTMENT PROPERTIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
MaoYe [Member] | ||
Investment Amount | $ 894 | $ 894 |
Currency translation | (87) | |
Reclassified as "Assets held for sale" | (807) | |
Reclassification from "Assets held for sale" | 301 | |
Net investment in property | 301 | |
MaoYe [Member] | Yuan RMB | ||
Investment Amount | 5,554 | 5,554 |
Currency translation | 0 | |
Reclassified as "Assets held for sale" | (5,554) | |
Reclassification from "Assets held for sale" | 2,024 | |
Net investment in property | 2,024 | |
Jiang Huai [Member] | ||
Investment Amount | 580 | 580 |
Jiang Huai [Member] | Yuan RMB | ||
Investment Amount | 3,600 | 3,600 |
Fu Li [Member] | ||
Investment Amount | 648 | 648 |
Fu Li [Member] | Yuan RMB | ||
Investment Amount | 4,025 | 4,025 |
China [Member] | ||
Currency translation | (124) | (131) |
Gross investment in rental property | 1,405 | 1,991 |
Accumulated depreciation on rental property | (890) | (845) |
Reclassified as "Assets held for sale" | 410 | |
Reclassification from "Assets held for sale" | (143) | |
Net investment in property | 782 | 1,146 |
China [Member] | Yuan RMB | ||
Currency translation | 0 | 0 |
Gross investment in rental property | 9,649 | 13,179 |
Accumulated depreciation on rental property | (6,075) | (5,596) |
Reclassified as "Assets held for sale" | 2,822 | |
Reclassification from "Assets held for sale" | (1,029) | |
Net investment in property | 5,367 | 7,583 |
Penang-Malaysia RM [Member] | ||
Investment Amount | 681 | 681 |
Currency translation | 0 | 0 |
Accumulated depreciation on rental property | (310) | (310) |
Reclassified as "Assets held for sale" | (371) | (371) |
Net investment in property | 0 | 0 |
Penang-Malaysia [Member] | ||
Investment Amount | 181 | 181 |
Currency translation | (9) | (9) |
Accumulated depreciation on rental property | (83) | (83) |
Reclassified as "Assets held for sale" | (89) | (89) |
Net investment in property | $ 0 | $ 0 |
INVESTMENT PROPERTIES (Details
INVESTMENT PROPERTIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Depreciation expenses | $ 86 | $ 102 |
MaoYe [Member] | ||
Investment amount | 894 | 894 |
Rental income | 98 | |
MaoYe [Member] | Yuan RMB | ||
Investment amount | 5,554 | 5,554 |
Jiang Huai [Member] | ||
Investment amount | 580 | 580 |
Jiang Huai [Member] | Yuan RMB | ||
Investment amount | 3,600 | 3,600 |
Rental income | 0 | |
Fu Li [Member] | ||
Investment amount | 648 | 648 |
Rental income | 40 | |
Fu Li [Member] | Yuan RMB | ||
Investment amount | 4,025 | 4,025 |
Penang-Malaysia [Member] | ||
Investment amount | 181 | 181 |
Penang-Malaysia RM [Member] | ||
Investment amount | 681 | 681 |
China [Member] | ||
Rental income | $ 98 | $ 139 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Property, plant and equipment, gross | $ 39,411 | $ 37,258 |
Accumulated depreciation | (25,083) | (23,440) |
Accumulated amortization on equipment under capital leases | (808) | (795) |
Total accumulated amortization depreciation | (25,891) | (24,235) |
Property, plant and equipment before currency translation effect | 13,520 | 13,023 |
Currency translation effect | (1,361) | (1,088) |
Property, plant and equipment, net | 12,159 | 11,935 |
Building and improvements | ||
Property, plant and equipment, gross | $ 5,082 | 5,070 |
Building and improvements | Minimum [Member] | ||
Estimated Useful Life in Years | 3 years | |
Building and improvements | Maximum [Member] | ||
Estimated Useful Life in Years | 20 years | |
Leasehold improvements | ||
Property, plant and equipment, gross | $ 6,150 | 6,093 |
Leasehold improvements | Minimum [Member] | ||
Estimated Useful Life in Years | 3 years | |
Leasehold improvements | Maximum [Member] | ||
Estimated Useful Life in Years | 27 years | |
Machinery and equipment | ||
Property, plant and equipment, gross | $ 1,111 | 1,029 |
Machinery and equipment | Minimum [Member] | ||
Estimated Useful Life in Years | 3 years | |
Machinery and equipment | Maximum [Member] | ||
Estimated Useful Life in Years | 7 years | |
Furniture and fixtures | ||
Property, plant and equipment, gross | $ 26,140 | 24,138 |
Furniture and fixtures | Minimum [Member] | ||
Estimated Useful Life in Years | 3 years | |
Furniture and fixtures | Maximum [Member] | ||
Estimated Useful Life in Years | 5 years | |
Equipment under capital leases | ||
Property, plant and equipment, gross | $ 928 | $ 928 |
Equipment under capital leases | Minimum [Member] | ||
Estimated Useful Life in Years | 3 years | |
Equipment under capital leases | Maximum [Member] | ||
Estimated Useful Life in Years | 5 years |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expenses | $ 2,364 | $ 2,112 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Other Assets [Abstract] | ||
Down payment for purchase of investment properties | $ 1,645 | $ 1,645 |
Down payment for purchase of property, plant and equipment | 100 | 561 |
Deposit for rental and utilities | 169 | 140 |
Currency translation effect | (164) | (97) |
Ending balance | $ 1,750 | $ 2,249 |
LINES OF CREDIT (Details)
LINES OF CREDIT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
TrioTech Intl Credit Facility [Member] | ||
Type of facility | Lines of Credit | Lines of Credit |
Credit limitation | $ 4,213 | $ 4,183 |
Unused credit | $ 4,213 | $ 3,325 |
TrioTech Intl Credit Facility [Member] | Minimum [Member] | ||
Interest rate | 1.85% | 1.60% |
TrioTech Intl Credit Facility [Member] | Maximum [Member] | ||
Interest rate | 5.50% | 5.50% |
TrioTech Tianjin Credit Facility [Member] | ||
Type of facility | Lines of Credit | Lines of Credit |
Credit limitation | $ 1,492 | $ 1,511 |
Unused credit | $ 1,492 | $ 437 |
TrioTech Tianjin Credit Facility [Member] | Minimum [Member] | ||
Interest rate | 5.22% | 5.22% |
TrioTech Tianjin Credit Facility [Member] | Maximum [Member] | ||
Interest rate | 6.30% | 5.22% |
Universal (Far East) Pte. Ltd | ||
Type of facility | Lines of Credit | Lines of Credit |
Credit limitation | $ 370 | $ 367 |
Unused credit | $ 183 | $ 256 |
Universal (Far East) Pte. Ltd | Minimum [Member] | ||
Interest rate | 1.85% | 1.60% |
Universal (Far East) Pte. Ltd | Maximum [Member] | ||
Interest rate | 5.50% | 5.50% |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Payables and Accruals [Abstract] | ||
Payroll and related costs | $ 1,354 | $ 1,545 |
Commissions | 107 | 89 |
Customer deposits | 46 | 17 |
Legal and audit | 299 | 265 |
Sales tax | 9 | 17 |
Utilities | 120 | 130 |
Warranty | 39 | 82 |
Accrued purchase of materials and property, plant and equipment | 362 | 454 |
Provision for re-instatement | 302 | 289 |
Deferred income | 61 | 0 |
Contract liabilities | 501 | 31 |
Other accrued expenses | 293 | 172 |
Currency translation effect | (7) | 81 |
Total | $ 3,486 | $ 3,172 |
WARRANTY ACCRUAL (Details)
WARRANTY ACCRUAL (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Warranty Accrual | ||
Beginning | $ 82 | $ 48 |
Additions charged to cost and expenses | 15 | 64 |
Utilization / reversal | (58) | (30) |
Currency translation effect | 0 | 0 |
Ending | $ 39 | $ 82 |
BANK LOANS PAYABLE (Details)
BANK LOANS PAYABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Bank loan payable | $ 2,838 | $ 1,908 |
Current portion of bank loan payable | 494 | 380 |
Currency translation effect on short-term portion of bank loan | (6) | (13) |
Current portion of bank loan payable | 488 | 367 |
Long term portion of bank loan payable | 2,344 | 1,528 |
Currency translation effect on long-term portion of bank loan | (52) | (91) |
Long term portion of bank loans payable | 2,292 | 1,437 |
Commercial Bank Note 1 [Member] | ||
Bank loan payable | 2,696 | 1,615 |
Commercial Bank Note 2 [Member] | ||
Bank loan payable | $ 142 | $ 293 |
BANK LOANS PAYABLE (Details 1)
BANK LOANS PAYABLE (Details 1) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Loans Payable [Abstract] | ||
Current | $ 488 | $ 367 |
Year 1 | 362 | 372 |
Year 2 | 380 | 242 |
Year 3 | 399 | 254 |
Year 4 | 407 | 267 |
Thereafter | 744 | 302 |
Total obligations and commitments | $ 2,780 | $ 1,804 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Leases | ||
Current | $ 620 | $ 691 |
Year 1 | 216 | 505 |
Year 2 | 47 | 44 |
Year 3 | 1 | 0 |
Year 4 | 0 | 0 |
Total future minimum lease payments, Capital Leases | 884 | 1,240 |
Capital Lease [Member] | ||
Leases | ||
Current | 283 | 250 |
Year 1 | 187 | 249 |
Year 2 | 143 | 150 |
Year 3 | 68 | 102 |
Year 4 | 44 | 23 |
Total future minimum lease payments, Capital Leases | 725 | 774 |
Less amount representing interest | 0 | 0 |
Present value of net minimum lease payments | 725 | 774 |
Less current portion of capital lease obligations | 283 | 250 |
Long-term obligations under capital leases | 442 | 524 |
Operating Lease [Member] | ||
Leases | ||
Current | 646 | 717 |
Year 1 | 216 | 531 |
Year 2 | 47 | 44 |
Year 3 | 1 | 0 |
Year 4 | 0 | 0 |
Total future minimum lease payments, Capital Leases | 910 | 1,292 |
Sub-lease (Income) [Member] | ||
Leases | ||
Current | (26) | (26) |
Year 1 | 0 | (26) |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Total future minimum lease payments, Capital Leases | $ (26) | $ (52) |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Total rental expense on operating leases | $ 708 | $ 703 |
Malaysia US [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 4 | 16 |
Malaysia [Member] | Ringgit RM | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 18 | 62 |
Tianjin [Member] | Yuan RMB | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 397 | 3,927 |
TianjnUS [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 58 | $ 593 |
Minimum [Member] | ||
Lease rates | 1.88% | 1.88% |
Maximum [Member] | ||
Lease rates | 7.50% | 7.50% |
CONCENTRATION OF CUSTOMERS (Det
CONCENTRATION OF CUSTOMERS (Details) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Customer A Member [Member] | Sales [Member] | ||
Concentration risk | 41.90% | 51.40% |
Customer A Member [Member] | Accounts Receivable [Member] | ||
Concentration risk | 41.30% | 57.90% |
Customer B [Member] | Sales [Member] | ||
Concentration risk | 11.40% | 9.30% |
Customer B [Member] | Accounts Receivable [Member] | ||
Concentration risk | 3.30% | 1.30% |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Net revenue | $ 39,198 | $ 42,361 | |
Operating Income (Loss) | 794 | 2,188 | |
Total assets | 36,527 | 36,474 | |
Depreciation and amortization | 2,450 | 2,214 | |
Capital expenditures | 2,841 | 2,309 | |
Manufacturing [Member] | |||
Net revenue | 14,889 | 15,978 | |
Operating Income (Loss) | 575 | 548 | |
Total assets | 9,576 | 8,549 | |
Depreciation and amortization | 120 | 115 | |
Capital expenditures | 52 | 143 | |
Testing Services [Member] | |||
Net revenue | 16,760 | 19,391 | |
Operating Income (Loss) | (164) | 1,522 | |
Total assets | 22,182 | 23,480 | |
Depreciation and amortization | 2,244 | 1,997 | |
Capital expenditures | 2,789 | 2,166 | |
Distribution [Member] | |||
Net revenue | 7,451 | 6,853 | |
Operating Income (Loss) | 598 | 475 | |
Total assets | 785 | 789 | |
Depreciation and amortization | 0 | 0 | |
Capital expenditures | 0 | 0 | |
RealEstate [Member] | |||
Net revenue | 98 | 139 | |
Operating Income (Loss) | (92) | (56) | |
Total assets | 3,826 | 3,521 | |
Depreciation and amortization | 86 | 102 | |
Capital expenditures | 0 | 0 | |
Fabrication Services [Member] | |||
Net revenue | [1] | 0 | 0 |
Operating Income (Loss) | [1] | 0 | 0 |
Total assets | [1] | 27 | 27 |
Depreciation and amortization | [1] | 0 | 0 |
Capital expenditures | [1] | 0 | 0 |
Corporate And Unallocated [Member] | |||
Net revenue | 0 | 0 | |
Operating Income (Loss) | (123) | (301) | |
Total assets | 131 | 108 | |
Depreciation and amortization | 0 | 0 | |
Capital expenditures | $ 0 | $ 0 | |
[1] | Fabrication services is a discontinued operation. |
OPERATING LEASES (Details)
OPERATING LEASES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Leases [Abstract] | ||
Current | $ 121 | $ 137 |
Year 1 | 35 | 121 |
Year 2 | 35 | |
Total | $ 156 | $ 293 |
OPERATING LEASES (Details Narra
OPERATING LEASES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Depreciation expense | $ 86 | $ 102 |
Minimum [Member] | ||
Initial lease term | 12 months | 12 months |
Maximum [Member] | ||
Initial lease term | 60 months | 60 months |
OTHER INCOME, NET (Details)
OTHER INCOME, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 100 | $ 50 |
Other rental income | 113 | 110 |
Exchange gain / (loss) | (135) | (160) |
Government grant | 77 | 126 |
Bad debt recovery | 2 | 0 |
Other miscellaneous income | 92 | 209 |
Total | $ 249 | $ 335 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Current | ||
Federal | $ (337) | $ 900 |
State | 2 | 2 |
Foreign | 289 | 79 |
Total | (46) | 981 |
Deferred | ||
Federal | 0 | 0 |
State | 0 | 0 |
Foreign | 4 | 6 |
Total | 4 | 6 |
Total provision | $ (42) | $ 987 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal tax rate | 21.00% | (27.55%) |
State taxes, net of federal benefit | (0.22%) | (6.00%) |
Permanent items and credits | 11.23% | 0.00% |
Foreign rate differential | (4.76%) | 32.98% |
Other | 4.71% | (1.45%) |
Changes in valuation allowance | (11.11%) | 4.01% |
Tax reform | (23.83%) | (45.00%) |
Effective rate | (2.98%) | (43.10%) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred tax assets: | ||
Net operating losses and credits | $ 363 | $ 633 |
Inventory valuation | 64 | 69 |
Provision for bad debts | 296 | 112 |
Accrued vacation | 94 | 3 |
Accrued expenses | 325 | 629 |
Fixed asset basis | 23 | 0 |
Investment in subsidiaries | 0 | 61 |
Unrealized gain | 55 | 4 |
Other | 73 | 3 |
Total deferred tax assets | 1,293 | 1,514 |
Deferred tax liabilities: | ||
Unrealized loss | (390) | (324) |
Depreciation | (78) | 0 |
Total deferred income tax liabilities | (468) | (324) |
Subtotal | 825 | 1,190 |
Valuation allowance | (762) | (1,117) |
Net deferred tax assets | 63 | 73 |
Presented as follows in the balance sheets: | ||
Deferred tax assets | 390 | 400 |
Deferred tax liabilities | (327) | (327) |
Net deferred tax assets / (liability) | $ 63 | $ 73 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Increase (decrease) in valuation allowance | $ (355) | $ (293) |
Federal [Member] | ||
Net operating loss carryforwards | 0 | |
Federal tax credit carryforwards | 49 | |
State [Member] | ||
Net operating loss carryforwards | $ 867 |
UNRECOGNIZED TAX BENEFITS (Deta
UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||
Beginning and Ending Balance | $ (250) | $ (250) |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Assets | ||
Trade accounts receivable | $ 7,113 | $ 7,747 |
Other receivables | 398 | 621 |
Contract assets | 419 | 260 |
Total | 817 | 881 |
Liabilities | ||
Accounts payable | 3,272 | 3,704 |
Other accrued expenses | 2,985 | 3,141 |
Contract liabilities | 501 | 31 |
Total | $ 3,486 | 3,172 |
Previously Reported | ||
Assets | ||
Trade accounts receivable | 8,007 | |
Other receivables | 621 | |
Contract assets | 0 | |
Total | 621 | |
Liabilities | ||
Accounts payable | 3,704 | |
Other accrued expenses | 3,172 | |
Contract liabilities | 0 | |
Total | 3,172 | |
Adjustment for (ASC 606) | ||
Assets | ||
Trade accounts receivable | (260) | |
Other receivables | 0 | |
Contract assets | 260 | |
Total | 0 | |
Liabilities | ||
Accounts payable | 0 | |
Other accrued expenses | (31) | |
Contract liabilities | 31 | |
Total | $ 0 |
REVENUE (Details 1)
REVENUE (Details 1) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Revenue | ||
Trade accounts receivable | $ 7,113 | $ 7,747 |
Accounts payable | 3,272 | 3,704 |
Contract assets | 419 | 260 |
Contract liabilities | $ 501 | $ 31 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ 1,548 | $ 1,197 |
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | (3) | (13) |
Net income attributable to Trio-Tech International common shareholders | $ 1,545 | $ 1,184 |
Weighted average number of common shares outstanding - basic | 3,673,000 | 3,553,000 |
Dilutive effect of stock options | 89,000 | 218,000 |
Number of shares used to compute earnings per share - diluted | 3,762,000 | 3,771,000 |
Basic Earnings per Share: | ||
Basic earnings per share from continuing operations attributable to Trio-Tech International | $ 0.42 | $ 0.34 |
Basic earnings per share from discontinued operations attributable to Trio-Tech International | .00 | (0.01) |
Basic Earnings per Share from Net Income Attributable to Trio-Tech International | 0.42 | 0.33 |
Diluted Earnings per Share: | ||
Diluted earnings per share from continuing operations attributable to Trio-Tech International | 0.41 | 0.32 |
Diluted earnings per share from discontinued operations attributable to Trio-Tech International | .00 | (0.01) |
Diluted Earnings per Share from Net Income Attributable to Trio-Tech International | $ .41 | $ 0.31 |
STOCK OPTIONS (Details)
STOCK OPTIONS (Details) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Expected life (years) | 2 years 6 months | |
Minimum [Member] | ||
Expected volatility | 45.38% | 47.29% |
Risk-free interest rate | 0.30% | 0.30% |
Expected life (years) | 2 years 6 months | |
Maximum [Member] | ||
Expected volatility | 97.48% | 104.94% |
Risk-free interest rate | 2.35% | 0.78% |
Expected life (years) | 3 years 3 months |
STOCK OPTIONS (Details 1)
STOCK OPTIONS (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
2017 Employee Plan [Member] | ||
Outstanding at beginning of period | 60,000 | 0 |
Granted, Options | 76,000 | 60,000 |
Exercised, Options | 0 | 0 |
Forfeited or expired, Options | 0 | 0 |
Options outstanding | 136,000 | 60,000 |
Exercisable at end of period | 49,000 | 15,000 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 5.98 | $ 0 |
Granted, Weighted- Average Exercise Price | 3.38 | 5.98 |
Exercised, Weighted- Average Exercise Price | 0 | 0 |
Forfeited or expired, Weighted- Average Exercise Price | .00 | 0 |
Outstanding at end of period, Weighted- Average Exercise Price | 4.53 | 5.98 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 4.97 | $ 5.98 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 8 months 11 days | |
Granted, Weighted - Average Remaining Contractual Term (Years) | 0 years | |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 3 months 10 days | |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 3 months 10 days | |
Outstanding at beginning of period | $ 0 | $ 0 |
Granted, Aggregate Intrinsic Value | 0 | 0 |
Exercised, Aggregate Intrinsic Value | 0 | 0 |
Forfeited or expired, Aggregate Intrinsic Value | 0 | 0 |
Outstanding at end of period | 0 | 0 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 0 | $ 0 |
2007 Employee Plan [Member] | ||
Outstanding at beginning of period | 127,500 | 127,500 |
Granted, Options | 0 | 0 |
Exercised, Options | (50,000) | 0 |
Forfeited or expired, Options | 0 | 0 |
Options outstanding | 77,500 | 127,500 |
Exercisable at end of period | 68,125 | 98,750 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.52 | $ 3.52 |
Granted, Weighted- Average Exercise Price | .00 | 0 |
Exercised, Weighted- Average Exercise Price | 3.26 | 0 |
Forfeited or expired, Weighted- Average Exercise Price | .00 | 0 |
Outstanding at end of period, Weighted- Average Exercise Price | 3.69 | 3.52 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 3.62 | $ 3.43 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 1 month 6 days | 3 years 1 month 6 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 2 months 19 days | 2 years 1 month 6 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 1 month 24 days | 1 year 8 months 23 days |
Outstanding at beginning of period | $ 121 | $ 187 |
Granted, Aggregate Intrinsic Value | 0 | 0 |
Exercised, Aggregate Intrinsic Value | 0 | 0 |
Forfeited or expired, Aggregate Intrinsic Value | 0 | 0 |
Outstanding at end of period | 0 | 121 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 0 | $ 103 |
2017 Directors Equity Incentive Plan [Member] | ||
Outstanding at beginning of period | 80,000 | |
Granted, Options | 80,000 | |
Exercised, Options | 0 | |
Forfeited or expired, Options | 0 | |
Options outstanding | 160,000 | 80,000 |
Exercisable at end of period | 160,000 | |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 5.98 | |
Granted, Weighted- Average Exercise Price | 3.28 | |
Exercised, Weighted- Average Exercise Price | 0 | |
Forfeited or expired, Weighted- Average Exercise Price | .00 | |
Outstanding at end of period, Weighted- Average Exercise Price | 4.63 | $ 5.98 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 4.63 | |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 8 months 23 days | |
Granted, Weighted - Average Remaining Contractual Term (Years) | 4 years 9 months 11 days | |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 3 months | |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 4 years 3 months | |
Outstanding at beginning of period | $ 0 | |
Granted, Aggregate Intrinsic Value | 0 | |
Exercised, Aggregate Intrinsic Value | 0 | |
Forfeited or expired, Aggregate Intrinsic Value | 0 | |
Outstanding at end of period | 0 | $ 0 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 0 | |
2007 Directors Equity Incentive Plan [Member] | ||
Outstanding at beginning of period | 390,000 | 415,000 |
Granted, Options | 0 | 0 |
Exercised, Options | (70,000) | (20,000) |
Forfeited or expired, Options | (20,000) | (5,000) |
Options outstanding | 300,000 | 390,000 |
Exercisable at end of period | 300,000 | 390,000 |
Outstanding at beginning of period, Weighted- Average Exercise Price | $ 3.41 | $ 3.36 |
Granted, Weighted- Average Exercise Price | .00 | 0 |
Exercised, Weighted- Average Exercise Price | 3.40 | 2.59 |
Forfeited or expired, Weighted- Average Exercise Price | 3.62 | 2.07 |
Outstanding at end of period, Weighted- Average Exercise Price | 3.40 | 3.41 |
Exercisable at end of period, Weighted- Average Exercise Price | $ 3.40 | $ 3.41 |
Outstanding at beginning of period, Weighted - Average Remaining Contractual Term (Years) | 2 years 18 days | 2 years 11 months 5 days |
Outstanding at end of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 6 months 29 days | 2 years 18 days |
Exercisable at end of period, Weighted - Average Remaining Contractual Term (Years) | 1 year 6 months 29 days | 2 years 18 days |
Outstanding at beginning of period | $ 412 | $ 673 |
Granted, Aggregate Intrinsic Value | 0 | 0 |
Exercised, Aggregate Intrinsic Value | 0 | 0 |
Forfeited or expired, Aggregate Intrinsic Value | 0 | 0 |
Outstanding at end of period | 9 | 412 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 9 | $ 412 |
STOCK OPTIONS (Details 2)
STOCK OPTIONS (Details 2) - $ / shares | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
2017 Employee Plan [Member] | ||
Non-vested at beginning of period, Options | 45,000 | 0 |
Granted, Options | 76,000 | 60,000 |
Vested, Options | (34,000) | (15,000) |
Forfeited, Options | 0 | 0 |
Non-vested at end of period, Options | 87,000 | 45,000 |
Non-vested at beginning of period, Weighted-Average Grant-Date Fair Value | $ 5.98 | $ 0 |
Granted, Options, Weighted-Average Grant-Date Fair Value | 3.38 | 5.98 |
Vested, Options, Weighted-Average Grant-Date Fair Value | (4.53) | 5.98 |
Forfeited, Options, Weighted-Average Grant-Date Fair Value | .00 | 0 |
Non-vested at end of period, Options , Weighted-Average Grant-Date Fair Value | $ 4.28 | $ 5.98 |
2007 Employee Plan [Member] | ||
Non-vested at beginning of period, Options | 28,750 | 48,125 |
Granted, Options | 0 | 0 |
Vested, Options | (19,375) | (19,375) |
Forfeited, Options | 0 | 0 |
Non-vested at end of period, Options | 9,375 | 28,750 |
Non-vested at beginning of period, Weighted-Average Grant-Date Fair Value | $ 3.83 | $ 3.77 |
Granted, Options, Weighted-Average Grant-Date Fair Value | .00 | 0 |
Vested, Options, Weighted-Average Grant-Date Fair Value | (3.69) | (3.43) |
Forfeited, Options, Weighted-Average Grant-Date Fair Value | .00 | 0 |
Non-vested at end of period, Options , Weighted-Average Grant-Date Fair Value | $ 4.14 | $ 3.83 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Stock-based compensation expense | $ 56 | $ 43 |
Aggregate intrinsic value options exercised | $ 401 | $ 121 |
Employee 2017 [Member] | ||
Options granted | 76,000 | 60,000 |
Exercised during period | 0 | 0 |
Stock-based compensation expense | $ 29 | $ 6 |
Unamortized stock-based compensation | $ 14 | $ 9 |
Weighted average remaining term, nonvested | 4 years 3 months 11 days | 5 years 11 months 23 days |
Vested stock options | 34,000 | 15,000 |
Weighted-average exercise price, vested options | $ 4.53 | $ 5.98 |
Weighted average contractual term | 4 years 1 month 10 days | 4 years 8 months 23 days |
Fair value of stock options, vested and outstanding | $ 244 | $ 90 |
Employee 2007 [Member] | ||
Options granted | 0 | 0 |
Exercised during period | 50,000 | 0 |
Stock-based compensation expense | $ 4 | $ 4 |
Unamortized stock-based compensation | $ 1 | $ 1 |
Weighted average remaining term, nonvested | 3 years | |
Vested stock options | 68,125 | 98,750 |
Weighted-average exercise price, vested options | $ 3.62 | $ 3.43 |
Weighted average contractual term | 2 years 1 month 24 days | 1 year 8 months 23 days |
Fair value of stock options, vested and outstanding | $ 247 | $ 338 |
Aggregate intrinsic value options exercised | $ 121 | $ 121 |
Director 2017 [Member] | ||
Options granted | 80,000 | 80,000 |
Exercised during period | 0 | |
Stock-based compensation expense | $ 26 | $ 33 |
Director 2007 [Member] | ||
Options granted | 0 | |
Exercised during period | 70,000 | |
Stock-based compensation expense | $ 0 | |
Vested stock options | 300,000 | 390,000 |
Weighted-average exercise price, vested options | $ 3.40 | $ 3.41 |
Weighted average contractual term | 1 year 6 months 29 days | 2 years 18 days |
Fair value of stock options, vested and outstanding | $ 1,021 | $ 1,331 |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Non-controlling interest | ||
Net income | $ 1,448 | $ 1,290 |
Dividend declared by subsidiary | (125) | (189) |
Translation adjustment | (420) | 728 |
Noncontrolling Interest | ||
Non-controlling interest | ||
Beginning balance | 1,522 | 1,426 |
Net income | (97) | 106 |
Dividend declared by subsidiary | (125) | (189) |
Translation adjustment | (105) | 179 |
Ending balance | $ 1,195 | $ 1,522 |
NON-CONTROLLING INTEREST (Det_2
NON-CONTROLLING INTEREST (Details Narrative) | Jun. 30, 2019 |
Controlling Interest 1 [Member] | |
Non controlling interest | 45.00% |
Controlling Interest 2 [Member] | |
Non controlling interest | 45.00% |
Controlling Interest 3 [Member] | |
Non controlling interest | 24.00% |