DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN

9 Months Ended

Mar. 31, 2017

Notes to Financial Statements

DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN

The Company’s Indonesia operation and the Indonesia operation’s immediate holding company, which comprise the fabrication services segment, suffered continued operating losses from fiscal year 2010 to 2014, and the cash flow was minimal from fiscal year 2009 to 2014. The Company established a restructuring plan to close the fabrication services operation, and in accordance with ASC Topic 205, Presentation of Financial Statement Discontinued Operations (“ASC Topic 205”), from fiscal year 2015 onwards, the Company presented the operation results from fabrication services as a discontinued operation as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component.

In accordance with the restructuring plan, the Company’s Indonesia operation is negotiating with its suppliers to settle the outstanding balance of accounts payable of $56 and has no collection for accounts receivable. The Company’s fabrication operation in Batam, Indonesia is in the process of winding up the operations.

In January 2010, the Company established a restructuring plan to close the Testing operation in Shanghai, China. Based on the restructuring plan and in accordance with ASC Topic 205, the Company presented the operation results from Shanghai as a discontinued operation as the Company believed that no continued cash flow would be generated by the discontinued component (Shanghai subsidiary) and that the Company would have no significant continuing involvement in the operations of the discontinued component. The Shanghai operation has completed its winding up process as of March 30, 2017.

The discontinued operations in Indonesia did not incur general and administrative expenses for the three months ended March 31, 2017 but incurred $1 for the nine months ended March 31, 2017, and $5 and $8 for the same periods in the last fiscal year. The Company anticipates that it may incur additional costs and expenses when the winding up of the business of the subsidiary through which the facilities operated takes place. Management has assessed the costs and expenses to be immaterial, thus no accrual has been made.

Income / (loss) from discontinued operations was as follows:

	Three Months Ended						Nine Months Ended
	Mar. 31, 2017			Mar. 31, 2016			Mar. 31, 2017			Mar. 31, 2016
	Unaudited			Unaudited			Unaudited			Unaudited
Revenue	$	-		$	-		$	-		$	-
Cost of sales		-			-			-			-
Gross margin		-			-			-			-
Operating expenses:
General and administrative		-			5			1			8
Total		-			5			1			8
Loss from discontinued operations		-			(5	)		(1	)		(8	)
Other (expenses) / income		(1	)		4			(3	)		3
Loss from discontinued operations	$	(1	)	$	(1	)	$	(4	)	$	(5	)

The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of the discontinued operation was immaterial.