California
|
|
95-2086631
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification Number)
|
|
|
|
Block 1008 Toa Payoh North
|
|
|
Unit 03-09 Singapore
|
|
318996
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
Name of
each exchange
|
Title of each
class
|
Trading
Symbol
|
On which
registered
|
Common
Stock, no par value
|
TRT
|
NYSE
American
|
Large Accelerated Filer
|
☐
|
|
Accelerated Filer
|
☐
|
|
|
|
|
|
Non-Accelerated Filer
|
☐
|
|
Smaller reporting company
|
☒
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
|
Page
|
|
||
|
||
|
||
1 |
||
|
2 |
|
|
4 |
|
|
5 |
|
|
6 |
|
29 |
||
38 |
||
38 |
||
|
|
|
|
||
|
||
40 |
||
40 |
||
40 |
||
40 |
||
40 |
||
40 |
||
40 |
||
|
|
|
41 |
|
September
30,
2019
|
June
30,
2019
|
ASSETS
|
(Unaudited)
|
|
CURRENT
ASSETS:
|
|
|
Cash
and cash equivalents
|
$3,710
|
$4,863
|
Short-term
deposits
|
5,222
|
4,144
|
Trade
accounts receivable, less allowance for doubtful accounts of $268
and $263, respectively
|
7,520
|
7,113
|
Other
receivables
|
756
|
817
|
Inventories,
less provision for obsolete inventory of $669 and $673,
respectively
|
1,688
|
2,427
|
Prepaid
expenses and other current assets
|
346
|
287
|
Assets
held for sale
|
88
|
89
|
Total current assets
|
19,330
|
19,740
|
NON-CURRENT
ASSETS:
|
|
|
Deferred
tax asset
|
383
|
390
|
Investment
properties, net
|
736
|
782
|
Property,
plant and equipment, net
|
11,787
|
12,159
|
Operating
lease right-of-use assets
|
614
|
-
|
Other
assets
|
1,594
|
1,750
|
Restricted
term deposits
|
1,674
|
1,706
|
Total
non-current assets
|
16,788
|
16,787
|
TOTAL ASSETS
|
$36,118
|
$36,527
|
|
|
|
LIABILITIES
|
|
|
CURRENT
LIABILITIES:
|
|
|
Lines
of credit
|
$-
|
$187
|
Accounts
payable
|
3,170
|
3,272
|
Accrued
expenses
|
3,374
|
3,486
|
Income
taxes payable
|
333
|
417
|
Current
portion of bank loans payable
|
360
|
488
|
Current
portion of finance leases
|
206
|
283
|
Current
portion of operating leases
|
362
|
-
|
Total current liabilities
|
7,805
|
8,133
|
NON-CURRENT
LIABILITIES:
|
|
|
Bank
loans payable, net of current portion
|
2,259
|
2,292
|
Finance leases,
net of current portion
|
479
|
442
|
Operating
leases, net of current portion
|
219
|
-
|
Deferred
tax liabilities
|
321
|
327
|
Income
taxes payable
|
430
|
439
|
Other
non-current liabilities
|
36
|
33
|
Total
non-current liabilities
|
3,744
|
3,533
|
TOTAL LIABILITIES
|
$11,549
|
$11,666
|
|
|
|
EQUITY
|
|
|
TRIO-TECH
INTERNATIONAL’S SHAREHOLDERS' EQUITY:
|
|
|
Common
stock, no par value, 15,000,000 shares authorized; 3,673,055 shares
issued
outstanding
as at September 30 and June 30, 2019, respectively
|
$11,424
|
$11,424
|
Paid-in
capital
|
3,313
|
3,305
|
Accumulated
retained earnings
|
7,343
|
7,070
|
Accumulated
other comprehensive gain-translation adjustments
|
1,285
|
1,867
|
Total Trio-Tech International shareholders'
equity
|
23,365
|
23,666
|
Non-controlling
interest
|
1,204
|
1,195
|
TOTAL
EQUITY
|
$24,569
|
$24,861
|
TOTAL LIABILITIES AND EQUITY
|
$36,118
|
$36,527
|
|
Three
Months Ended
|
|
|
Sept.
30,
|
Sept.
30,
|
|
2019
|
2018
|
Revenue
|
|
|
Manufacturing
|
$3,317
|
$3,637
|
Testing
services
|
4,390
|
4,437
|
Distribution
|
2,099
|
1,944
|
Real estate
|
17
|
27
|
|
9,823
|
10,045
|
Cost of Sales
|
|
|
Cost
of manufactured products sold
|
2,555
|
2,857
|
Cost
of testing services rendered
|
3,191
|
3,383
|
Cost
of distribution
|
1,807
|
1,686
|
Cost of real estate
|
18
|
18
|
|
7,571
|
7,944
|
|
|
|
Gross Margin
|
2,252
|
2,101
|
|
|
|
Operating Expenses:
|
|
|
General
and administrative
|
1,788
|
1,759
|
Selling
|
190
|
147
|
Research
and development
|
76
|
72
|
Gain
on disposal of property, plant and equipment
|
(24)
|
-
|
Total
operating expenses
|
2,030
|
1,978
|
|
|
|
Income from Operations
|
222
|
123
|
|
|
|
Other Income/(Expenses)
|
|
|
Interest
expenses
|
(68)
|
(78)
|
Other income,
net
|
110
|
43
|
Total
other income/(expenses)
|
42
|
(35)
|
|
|
|
Income from Continuing Operations before Income
Taxes
|
264
|
88
|
|
|
|
Income Tax Expenses
|
-
|
(74)
|
|
|
|
Income from Continuing Operations before Non-controlling Interest,
Net of Tax
|
264
|
14
|
|
|
|
Discontinued Operations
|
|
|
Loss
from discontinued operations, net of tax
|
(1)
|
(8)
|
NET INCOME
|
263
|
6
|
|
|
|
Less:
net loss attributable to the non-controlling interest
|
(10)
|
(59)
|
Net Income Attributable to Trio-Tech International Common
Shareholder
|
$273
|
$65
|
|
|
|
Amounts Attributable to Trio-Tech International Common
Shareholders:
|
|
|
Income
from continuing operations, net of tax
|
274
|
69
|
Loss
from discontinued operations, net of tax
|
(1)
|
(4)
|
Net Income Attributable to Trio-Tech International Common
Shareholders
|
$273
|
$65
|
|
|
|
Basic Earnings per Share:
|
|
|
Basic
per share from continuing operations attributable to Trio-Tech
International
|
$0.07
|
$0.02
|
Basic
earnings per share from discontinued operations attributable to
Trio-Tech International
|
$-
|
$-
|
Basic Earnings per Share from Net Income
|
|
|
Attributable to Trio-Tech International
|
$0.07
|
$0.02
|
|
|
|
Diluted Earnings per Share:
|
|
|
Diluted
earnings per share from continuing operations attributable to
Trio-Tech International
|
$0.07
|
$0.02
|
Diluted
earnings per share from discontinued operations attributable to
Trio-Tech International
|
$-
|
$-
|
Diluted Earnings per Share from Net Income
|
|
|
Attributable to Trio-Tech International
|
$0.07
|
$0.02
|
|
|
|
Weighted
average number of common shares outstanding
|
|
|
Basic
|
3,673
|
3,608
|
Dilutive
effect of stock options
|
17
|
124
|
Number
of shares used to compute earnings per share diluted
|
3,690
|
3,732
|
|
Three
Months Ended
|
|
|
Sept.
30,
|
Sept.
30,
|
|
2019
|
2018
|
Comprehensive Income (Loss) Attributable to Trio-Tech
International Common Shareholders:
|
|
|
|
|
|
Net
income
|
263
|
6
|
Foreign
currency translation, net of tax
|
(563)
|
(539)
|
Comprehensive Loss
|
(300)
|
(533)
|
Less:
comprehensive income (loss) attributable to the non-controlling
interests
|
9
|
(135)
|
Comprehensive Loss Attributable to Trio-Tech International Common
Shareholders
|
$(309)
|
$(398)
|
|
|
|
|
Common
Stock
|
Additional Paid-in
|
Accumulated Retained
|
Accumulated Other
Comprehensive
|
Non- Controlling
|
|
|
|
Shares
|
Amount
|
Capital
|
Earnings
|
Income
|
Interest
|
Total
|
|
|
|
|
|
|
|
|
Balance
at June 30, 2019
|
3,673
|
$11,424
|
$3,305
|
$7,070
|
$1,867
|
$1,195
|
$24,861
|
Stock
option expenses
|
-
|
-
|
8
|
-
|
-
|
-
|
8
|
Net
income / (loss)
|
-
|
-
|
-
|
273
|
-
|
(10)
|
263
|
Dividend declared
by subsidiary
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Exercise of stock
option
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Translation
adjustment
|
-
|
-
|
-
|
-
|
(582)
|
19
|
(563)
|
Balance
at Sept. 30, 2019
|
3,673
|
11,424
|
3,313
|
7,343
|
1,285
|
1,204
|
24,569
|
|
Common
Stock
|
Additional Paid-in
|
Accumulated Retained
|
Accumulated Other
Comprehensive
|
Non- Controlling
|
|
|
|
Shares
|
Amount
|
Capital
|
Earnings
|
Income
|
Interest
|
Total
|
|
|
|
|
|
|
|
|
Balance
at June 30, 2018
|
3,553
|
$11,023
|
$3,249
|
$5,525
|
$2,182
|
$1,522
|
$23,501
|
Stock
option expenses
|
-
|
-
|
2
|
-
|
-
|
-
|
2
|
Net
income / (loss)
|
-
|
-
|
-
|
65
|
-
|
(59)
|
6
|
Dividend declared
by subsidiary
|
-
|
-
|
-
|
-
|
-
|
(2)
|
(2)
|
Exercise of stock
option
|
55
|
199
|
-
|
-
|
-
|
-
|
199
|
Translation
adjustment
|
-
|
-
|
-
|
-
|
(463)
|
(76)
|
(539)
|
Balance
at Sept. 30, 2018
|
3,608
|
11,222
|
3,251
|
5,590
|
1,719
|
1,385
|
23,167
|
|
Three
Months Ended
|
|
|
Sept.
30,
|
Sept.
30,
|
|
2019
|
2018
|
|
(Unaudited)
|
(Unaudited)
|
Cash Flow from Operating Activities
|
|
|
Net
income
|
$263
|
$6
|
Adjustments
to reconcile net income to net cash flow provided by operating
activities
|
|
|
Depreciation
and amortization
|
786
|
555
|
Stock
compensation
|
8
|
2
|
(Reversal)/addition
of provision for obsolete inventory
|
(5)
|
1
|
Bad
debt recovery
|
(13)
|
(2)
|
Accrued
interest expense, net accrued interest income
|
(10)
|
13
|
Warranty
recovery, net
|
(1)
|
(13)
|
Gain
on sale of property, plant & equipment-Continued
operations
|
(24)
|
-
|
Deferred
tax benefit
|
(4)
|
21
|
Changes
in operating assets and liabilities, net of acquisition
effects
|
|
|
Trade
accounts receivable
|
(386)
|
(372)
|
Other receivables
|
61
|
(8)
|
Other assets
|
98
|
517
|
Inventories
|
707
|
535
|
Prepaid expenses and other current assets
|
(59)
|
(122)
|
Operating
leases right-of-use assets
|
(18)
|
-
|
Accounts payable and accrued expenses
|
(136)
|
(473)
|
Income taxes payable
|
(93)
|
(102)
|
Net Cash Provided by Operating Activities
|
1,174
|
558
|
|
|
|
Cash Flow from Investing Activities
|
|
|
Investment in unrestricted term deposits,
net (Note
1a)
|
(1,165)
|
(358)
|
Additions to property, plant and
equipment(Note 1b)
|
(500)
|
(1,214)
|
Proceeds
from disposal of property, plant and equipment
|
-
|
3
|
Net Cash Used in Investing Activities
|
(1,665)
|
(1,569)
|
|
|
|
Cash Flow from Financing Activities
|
|
|
Repayment
on lines of credit
|
(604)
|
(3,728)
|
Repayment
of bank loans, operating leases and finance leases
|
(371)
|
(182)
|
Dividends
paid on non-controlling interest
|
-
|
(2)
|
Proceeds
from exercising stock options
|
-
|
199
|
Proceeds
from lines of credit
|
410
|
3,877
|
Proceeds
from principal of finance lease
|
44
|
-
|
Proceeds
from bank loans
|
-
|
1,475
|
Net Cash (Used in)/Generated from Financing Activities
|
(521)
|
1,639
|
|
|
|
Effect of Changes in Exchange Rate
|
(173)
|
(76)
|
|
|
|
Net (decrease)/increase in
cash, cash equivalents, and restricted cash(Note 1a)
|
(1,185)
|
552
|
Cash, cash equivalents, and
restricted cash at beginning of period (Note 1a)
|
6,569
|
8,234
|
Cash, cash equivalents, and
restricted cash at end of period (Note 1a)
|
$5,384
|
$8,786
|
|
|
|
Supplementary Information of Cash Flows
|
|
|
Cash
paid during the period for:
|
|
|
Interest
|
$61
|
$65
|
Income
taxes
|
$124
|
$24
|
|
|
|
Non-Cash Transactions
|
|
|
Finance
lease of property, plant and equipment
|
$44
|
$-
|
Reconciliation of Cash, cash
equivalents, and restricted cash (Note 1a)
|
|
|
Cash
|
3,710
|
7,101
|
Short-term deposits
|
5,222
|
1,011
|
Restricted term-deposits in non-current assets
|
1,674
|
1,685
|
Total Cash, cash equivalents, and restricted cash shown in
statement of cash flows
|
$10,606
|
$9,797
|
|
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
|
|
Sep.
30,
2019
(Unaudited)
|
June
30,
2019
|
|
|
|
Short-term
deposits
|
$5,322
|
$4,143
|
Currency
translation effect on short-term deposits
|
(100)
|
1
|
Total short-term deposits
|
5,222
|
4,144
|
Restricted
term deposits
|
1,708
|
1,701
|
Currency
translation effect on restricted term deposits
|
(34)
|
5
|
Total restricted term deposits
|
1,674
|
1,706
|
Total term deposits
|
$6,896
|
$5,850
|
|
Sept.
30,
2019
(Unaudited)
|
June
30,
2019
|
Beginning
|
$263
|
$259
|
Additions charged
to expenses
|
28
|
94
|
Recovered
|
(15)
|
(84)
|
Currency
translation effect
|
(8)
|
(6)
|
Ending
|
$268
|
$263
|
|
Loan Expiry
Date
|
Loan Amount
(RMB)
|
Loan Amount
(U.S. Dollars)
|
Short-term loan receivables
|
|
|
|
JiangHuai
(Project – Yu Jin Jiang An)
|
May
31, 2013
|
2,000
|
325
|
Less:
allowance for doubtful receivables
|
|
(2,000)
|
(325)
|
Net loan receivables from property development
projects
|
|
-
|
-
|
|
|
|
|
Long-term loan receivables
|
|
|
|
Jun
Zhou Zhi Ye
|
Oct
31, 2016
|
5,000
|
814
|
Less:
transfer – down-payment for purchase of investment
property
|
|
(5,000)
|
(814)
|
Net loan receivables from property development
projects
|
|
-
|
-
|
|
Sept.
30,
2019
(Unaudited)
|
June
30,
2019
|
|
|
|
Raw
materials
|
$1,182
|
$1,190
|
Work
in progress
|
953
|
1,306
|
Finished
goods
|
264
|
591
|
Currency
translation effect
|
(42)
|
13
|
Less:
provision for obsolete inventory
|
(669)
|
(673)
|
|
$1,688
|
$2,427
|
|
Sept.
30,
2019
(Unaudited)
|
June
30,
2019
|
|
|
|
Beginning
|
$673
|
$695
|
Additions
charged to expenses
|
9
|
17
|
Usage
– disposition
|
(4)
|
(42)
|
Currency
translation effect
|
(9)
|
3
|
Ending
|
$669
|
$673
|
|
|
|
Sept.
30,
2019
(Unaudited)
|
June
30,
2019
|
|
Investment
|
Investment
Amount
|
Investment
Amount
|
Investment
Amount
|
|
Date
/ Reclassification Date
|
(RM)
|
(U.S.
Dollars)
|
(U.S.
Dollars)
|
Penang Property
Reclassification
from investment property
|
June
30, 2015
|
681
|
181*
|
181*
|
Currency
translation
|
|
-
|
(18)
|
(15)
|
|
681
|
163
|
166
|
|
Accumulated
depreciation on rental property
|
June
30, 2015
|
(310)
|
(83)*
|
(83)*
|
Currency
translation
|
|
-
|
8
|
6
|
|
(310)
|
(75)
|
(77)
|
|
Net
investment in rental property - Malaysia
|
|
371
|
88
|
89
|
|
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
|
|
-
|
(175)
|
Gross
investment in rental property
|
|
9,649
|
1,354
|
Accumulated
depreciation on rental property
|
Sep
30, 2019
|
(6,196)
|
(885)
|
Reclassified
as “Assets held for sale”-Mao Ye Property
|
July
01, 2018
|
2,822
|
410
|
Reclassification
from “Assets held for sale”-Mao Ye
Property
|
Mar
31, 2019
|
(1,029)
|
(143)
|
|
(4,403)
|
(618)
|
|
Net investment in property – China
|
|
5,246
|
736
|
|
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”-Mao Ye Property
|
July
01, 2018
|
2,822
|
410
|
Reclassification
from “Assets held for sale”-Mao Ye
Property
|
Mar
31, 2019
|
(1,029)
|
(143)
|
|
(4,282)
|
(623)
|
|
Net investment in property – China
|
|
5,367
|
782
|
|
|
|
Sept.
30,
2019
(Unaudited)
|
June
30,
2019
|
|
Investment
|
Investment
Amount
|
Investment
Amount
|
Investment
Amount
|
|
Date
/ Reclassification Date
|
(RM)
|
(U.S.
Dollars)
|
(U.S.
Dollars)
|
Purchase
of Penang Property
|
Dec
31, 2012
|
681
|
181
|
181
|
Currency
translation
|
|
-
|
(18)
|
(15)
|
Reclassification
as “Assets held for sale”
|
June
30, 2015
|
(681)
|
(163)
|
(166)
|
|
-
|
-
|
-
|
|
Accumulated
depreciation on rental property
|
June
30, 2015
|
(310)
|
(83)
|
(83)
|
Currency
translation
|
|
-
|
8
|
6
|
Reclassified
as “Assets held for sale”
|
June
30, 2015
|
310
|
75
|
77
|
Net
investment in rental property - Malaysia
|
|
-
|
-
|
-
|
|
Sept.
30, 2019
(Unaudited)
|
June
30,
2019
|
Down
payment for purchase of investment properties *
|
$1,645
|
$1,645
|
Down
payment for purchase of property, plant and equipment
|
-
|
100
|
Deposits
for rental and utilities
|
169
|
169
|
Currency
translation effect
|
(220)
|
(164)
|
Total
|
$1,594
|
$1,750
|
|
RMB
|
US
Dollars
|
Original
investment( 10% if Junzhou equity)
|
$10,000
|
$1,606
|
Less:
Management Fee
|
(5,000)
|
(803)
|
Net
Investment
|
5,000
|
803
|
Less:
Share of loss on Joint Venture
|
(137)
|
(22)
|
Net Investment as downpayment(Note *a)
|
4,863
|
781
|
Loans
Receivable
|
5,000
|
814
|
Interest
Receivable
|
1,250
|
200
|
Less:Impairment
of Interest
|
(906)
|
(150)
|
Transferred to downpayment(Note *b)
|
5,344
|
864
|
* Down payment for purchase of investment properties
|
10,207
|
1,645
|
Entity with
|
Type of
|
Interest
|
Expiration
|
Credit
|
Unused
|
Facility
|
Facility
|
Rate
|
Date
|
Limitation
|
Credit
|
Trio-Tech International Pte. Ltd., Singapore
|
Lines of Credit
|
Ranging from 1.85% to 5.5%
|
-
|
$4,126
|
$4,126
|
Trio-Tech (Tianjin) Co., Ltd.
|
Lines of Credit
|
5.22% to 6.3%
|
-
|
$1,404
|
$1,404
|
Universal
(Far East) Pte. Ltd
|
Lines of Credit
|
Ranging from 1.85% to 5.5%
|
-
|
$362
|
$362
|
Trio-Tech Malaysia Sdn. Bhd.
|
Revolving Credit
|
Cost of Funds Rate +2%
|
-
|
$358
|
$358
|
Entity with
|
Type of
|
Interest
|
Expiration
|
Credit
|
Unused
|
Facility
|
Facility
|
Rate
|
Date
|
Limitation
|
Credit
|
Trio-Tech International Pte. Ltd., Singapore
|
Lines of Credit
|
Ranging from 1.85% to 5.5%
|
-
|
$4,213
|
$4,213
|
Trio-Tech (Tianjin) Co., Ltd.
|
Lines of Credit
|
5.22% to 6.3%
|
-
|
$1,492
|
$1,492
|
Universal
(Far East) Pte. Ltd
|
Lines of Credit
|
Ranging from 1.85% to 5.5%
|
-
|
$370
|
$183
|
Trio-Tech Malaysia Sdn. Bhd.
|
Revolving Credit
|
Cost of Funds Rate +2%
|
-
|
$363
|
$363
|
|
Sept.
30, 2019
(Unaudited)
|
June
30, 2019
|
Payroll
and related costs
|
$1,371
|
$1,354
|
Commissions
|
71
|
107
|
Customer
deposits
|
45
|
46
|
Legal
and audit
|
345
|
299
|
Sales
tax
|
12
|
9
|
Utilities
|
119
|
120
|
Warranty
|
38
|
39
|
Accrued
purchase of materials and property, plant and
equipment
|
244
|
362
|
Provision
for re-instatement
|
308
|
302
|
Deferred
income
|
100
|
61
|
Contract
liabilities
|
496
|
501
|
Other
accrued expenses
|
286
|
293
|
Currency
translation effect
|
(61)
|
(7)
|
Total
|
$3,374
|
$3,486
|
|
Sept.
30,
2019
(Unaudited)
|
June
30,
2019
|
Beginning
|
$39
|
$82
|
Additions
charged to cost and expenses
|
-
|
15
|
Reversal
|
(1)
|
(58)
|
Currency
translation effect
|
-
|
-
|
Ending
|
$38
|
$39
|
|
Sept.
30, 2019
(Unaudited)
|
June
30, 2019
|
Note
payable denominated in RM for expansion plans in Malaysia, maturing
in August 2028, bearing interest at the bank’s prime rate
less 2.00% (4.85% and 5.00% at September 30, 2019 and June 30,
2019) per annum, with monthly payments of principal plus interest
through August 2028, collateralized by the acquired building with a
carrying value of $2,633 and $2,683, as at September 30, 2019 and
June 30, 2019, respectively.
|
2,516
|
2,638
|
|
|
|
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 September 30,
2019 and June 30, 2019) with monthly payments of principal plus
interest through June 2020. This note payable is secured by plant
and equipment with a carrying value of $135 and $148, as at
September 30, 2019 and June 30, 2019, respectively.
|
103
|
142
|
|
|
|
Total bank loans
payable
|
$2,619
|
$2,780
|
Current
portion of bank loan payable
|
366
|
494
|
Currency
translation effect on current portion of bank loan
|
(6)
|
(6)
|
Current portion of bank loan payable
|
360
|
488
|
Long
term portion of bank loan payable
|
2,292
|
2,344
|
Currency
translation effect on long-term portion of bank loan
|
(33)
|
(52)
|
Long term portion of bank loans payable
|
$2,259
|
$2,292
|
Remainder of fiscal
2020
|
$360
|
2021
|
357
|
2022
|
375
|
2023
|
393
|
2024
|
401
|
Thereafter
|
733
|
Total
obligations and commitments
|
$2,619
|
2020
|
$488
|
2021
|
362
|
2022
|
380
|
2023
|
399
|
2024
|
407
|
Thereafter
|
744
|
Total
obligations and commitments
|
$2,780
|
|
Three
Months
Ended
Sept.
30,
|
Net
Revenue
|
Operating
Income
/ (Loss)
|
Total
Assets
|
Depr.
And
Amort.
|
Capital
Expenditures
|
Manufacturing
|
2019
|
$3,317
|
(12)
|
9,434
|
47
|
19
|
2018
|
$3,637
|
107
|
8,566
|
29
|
1
|
|
|
|
|
|
|
|
|
Testing
Services
|
2019
|
4,390
|
68
|
22,138
|
610
|
520
|
|
2018
|
4,437
|
(138)
|
24,200
|
512
|
1,213
|
|
|
|
|
|
|
|
Distribution
|
2019
|
2,099
|
204
|
785
|
111
|
-
|
|
2018
|
1,944
|
172
|
656
|
-
|
-
|
|
|
|
|
|
|
|
Real
Estate
|
2019
|
17
|
(17)
|
3,577
|
18
|
-
|
|
2018
|
27
|
(12)
|
3,441
|
14
|
-
|
|
|
|
|
|
|
|
Fabrication
|
2019
|
-
|
-
|
27
|
-
|
-
|
Services
*
|
2018
|
-
|
-
|
25
|
-
|
-
|
|
|
|
|
|
|
|
Corporate
&
|
2019
|
-
|
(21)
|
157
|
-
|
-
|
Unallocated
|
2018
|
-
|
(6)
|
151
|
-
|
-
|
|
|
|
|
|
|
|
Total
Company
|
2019
|
$9,823
|
222
|
36,118
|
786
|
539
|
2018
|
$10,045
|
123
|
37,039
|
555
|
1,214
|
|
Three
Months Ended
September
30,
|
|
|
2019
(Unaudited)
|
2018
(Unaudited)
|
Interest
income
|
32
|
10
|
Other
rental income
|
30
|
27
|
Exchange gain
(loss)
|
5
|
(39)
|
Bad
debt recovery
|
11
|
2
|
Other
miscellaneous income
|
32
|
43
|
Total
|
$110
|
$43
|
|
Sept.
30,2019
(Unaudited)
|
Jun
30,2019
(Unaudited)
|
Trade
Accounts Receivable
|
7,520
|
7,113
|
Accounts
Payable
|
3,170
|
3,272
|
Contract
Assets
|
517
|
419
|
Contract
Liabilities
|
496
|
501
|
|
Three
Months Ended
|
|
|
September
30,
|
|
|
2019
(Unaudited)
|
2018
(Unaudited)
|
Income
attributable to Trio-Tech International common shareholders from
continuing operations, net of tax
|
$274
|
$69
|
Loss
attributable to Trio-Tech International common shareholders from
discontinued operations, net of tax
|
(1)
|
(4)
|
Net income attributable to Trio-Tech International common
shareholders
|
$273
|
$65
|
|
|
|
Weighted
average number of common shares outstanding - basic
|
3,673
|
3,608
|
Dilutive
effect of stock options
|
17
|
124
|
Number
of shares used to compute earnings per share –
diluted
|
3,690
|
3,732
|
|
|
|
Basic
earnings per share from continuing operations attributable to
Trio-Tech International
|
0.07
|
0.02
|
|
|
|
Basic
earnings per share from discontinued operations attributable to
Trio-Tech International
|
-
|
-
|
Basic earnings
per share from net income attributable to Trio-Tech
International
|
$0.07
|
$0.02
|
|
|
|
Diluted
earnings per share from continuing operations attributable to
Trio-Tech International
|
0.07
|
0.02
|
|
|
|
Diluted
earnings per share from discontinued operations attributable to
Trio-Tech International
|
-
|
-
|
Diluted
earnings per share from net income attributable to Trio-Tech
International
|
$0.07
|
$0.02
|
|
|
|
|
Three
Months Ended
September
30,
|
|
|
2019
|
2018
|
Expected
volatility
|
45.38%to
97.48%
|
60.41%
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
|
|
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average Remaining
Contractual
Term
(Years)
|
Aggregate
Intrinsic
Value
|
|
|
|
|
|
Outstanding
at July 1, 2019
|
136,000
|
$4.53
|
4.28
|
$-
|
Granted
|
-
|
-
|
-
|
-
|
Exercised
|
-
|
-
|
-
|
-
|
Forfeited
or expired
|
-
|
-
|
-
|
-
|
Outstanding at September 30,
2019
|
136,000
|
4.53
|
4.02
|
19.2
|
Exercisable at September 30,
2019
|
49,000
|
4.97
|
3.86
|
5
|
|
Options
|
Weighted Average
Grant-Date
Fair
Value
|
|
|
|
Non-vested
at July 1, 2019
|
87,000
|
$4.28
|
Granted
|
-
|
-
|
Vested
|
-
|
-
|
Forfeited
|
-
|
-
|
Non-vested
at September 30, 2019
|
87,000
|
$4.28
|
|
|
|
|
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
|
-
|
-
|
-
|
-
|
Exercised
|
-
|
-
|
-
|
-
|
Forfeited
or expired
|
-
|
-
|
-
|
-
|
Outstanding at September 30,
2018
|
60,000
|
5.98
|
4.48
|
-
|
Exercisable at September 30,
2018
|
15,000
|
5.98
|
4.48
|
-
|
|
Options
|
Weighted Average
Grant-Date
Fair
Value
|
|
|
|
Non-vested
at July 1, 2018
|
45,000
|
$5.98
|
Granted
|
-
|
-
|
Vested
|
-
|
-
|
Forfeited
|
-
|
-
|
|
45,000
|
$5.98
|
|
Options
|
Weighted
Average
Exercise
Price
|
Weighted Average
Remaining
Contractual
Term
(Years)
|
Aggregate
Intrinsic
Value
|
Outstanding at July
1, 2019
|
77,500
|
$3.69
|
2.22
|
$-
|
Granted
|
-
|
-
|
-
|
-
|
Exercised
|
-
|
-
|
-
|
-
|
Forfeited or
expired
|
-
|
-
|
-
|
-
|
Outstanding at
September 30, 2019
|
77,500
|
$3.69
|
1.97
|
$14
|
Exercisable at
September 30, 2019
|
68,125
|
$3.62
|
1.89
|
$14
|
|
Options
|
Weighted Average
Grant-Date
Fair
Value
|
|
|
|
Non-vested
at July 1, 2019
|
9,375
|
$4.14
|
Granted
|
-
|
-
|
Vested
|
-
|
-
|
Forfeited
|
-
|
-
|
Non-vested at September 30,
2019
|
9,375
|
$4.14
|
|
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average Remaining
Contractual
Term
(Years)
|
Aggregate
Intrinsic
Value
|
Outstanding
at July 1, 2018
|
127,500
|
$3.52
|
2.10
|
$121
|
Granted
|
-
|
-
|
-
|
-
|
Exercised
|
(15,000)
|
3.62
|
-
|
-
|
Forfeited
or expired
|
-
|
-
|
-
|
-
|
Outstanding
at September 30, 2018
|
112,500
|
$3.50
|
2.10
|
$120
|
Exercisable
at September 30, 2018
|
83,750
|
$3.39
|
1.75
|
$99
|
|
Options
|
Weighted Average
Grant-Date
Fair
Value
|
|
|
|
Non-vested
at July 1, 2018
|
28,750
|
$3.83
|
Granted
|
-
|
-
|
Vested
|
-
|
-
|
Forfeited
|
-
|
-
|
Non-vested at September 30,
2018
|
28,750
|
$3.83
|
|
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average Remaining
Contractual
Term
(Years)
|
Aggregate
Intrinsic
Value
|
|
|
|
|
|
Outstanding
at July 1, 2019
|
160,000
|
$4.63
|
4.25
|
$-
|
Granted
|
-
|
-
|
-
|
-
|
Exercised
|
-
|
-
|
-
|
-
|
Forfeited
or expired
|
-
|
-
|
-
|
-
|
Outstanding at September 30,
2019
|
160,000
|
4.63
|
4.00
|
26
|
Exercisable at September 30,
2019
|
160,000
|
4.63
|
4.00
|
26
|
|
|
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
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Exercised
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Forfeited or expired
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Outstanding at September 30, 2018
|
|
|
80,000
|
|
|
|
5.98
|
|
|
|
4.48
|
|
|
|
-
|
|
Exercisable at September 30, 2018
|
|
|
80,000
|
|
|
|
5.98
|
|
|
|
4.48
|
|
|
|
-
|
|
|
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
(Years)
|
Aggregate
Intrinsic
Value
|
|
|
|
|
|
Outstanding
at July 1, 2019
|
300,000
|
$3.40
|
1.58
|
$9
|
Granted
|
-
|
-
|
-
|
-
|
Exercised
|
-
|
-
|
-
|
-
|
Forfeited
or expired
|
-
|
-
|
-
|
-
|
Outstanding
at September 30, 2019
|
300,000
|
$3.40
|
1.33
|
$97
|
Exercisable
at September 30, 2019
|
300,000
|
$3.40
|
1.33
|
$97
|
|
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
|
(40,000)
|
3.62
|
-
|
-
|
Forfeited
or expired
|
(20,000)
|
(3.62)
|
-
|
-
|
Outstanding
at September 30, 2018
|
330,000
|
$3.38
|
2.13
|
$394
|
Exercisable
at September 30, 2018
|
330,000
|
$3.38
|
2.13
|
$394
|
2020
|
$51
|
2021
|
22
|
|
$73
|
2020
|
72
|
2021
|
6
|
|
$78
|
|
September
30,
|
|
2019
|
|
(Unaudited)
|
Finance Leases (Plant & equipment)
|
|
Plant
and equipment, at cost
|
1,829
|
Accumulated
depreciation
|
783
|
Plant and equipment,
net
|
1,046
|
|
|
Current
portion of finance leases
|
206
|
Net
of current portion of finance leases
|
479
|
Total finance lease
liabilities
|
685
|
|
|
Operating Leases (Corporate offices and Research and development
facilities)
|
|
Operating
lease right-of-use assets
|
614
|
|
|
Current
portion of operating leases
|
362
|
Net
of current portion of operating leases
|
219
|
Total operating lease
liabilities
|
581
|
|
|
Lease Cost
|
|
Interest
on Finance Lease
|
12
|
Operating
lease costs
|
175
|
|
187
|
|
September
30,
|
|
2019
|
|
(Unaudited)
|
Cash Paid for amounts included in the measurement of lease
liabilities
|
|
Finance
cash flows from finance leases
|
65
|
Finance
cash flows from operating leases
|
184
|
Right-of-use assets obtained in exchange for new operating lease
liabilities
|
|
|
|
Weighted-average remaining lease term:
|
|
Finance
leases
|
3.29
|
Operating
leases
|
1.16
|
Weighted-average Discount Rate:
|
|
Finance
leases
|
3.51%
|
Operating
leases
|
3.02%
|
|
Operating lease Liabilities
|
Finance Lease Liabilities
|
Fiscal Year
|
|
|
Remainder
of 2020
|
$368
|
242
|
2021
|
200
|
215
|
2022
|
40
|
161
|
2023
|
1
|
81
|
2024
|
-
|
58
|
Total
future minimum lease payments
|
$609
|
757
|
Less:
amount representing interest
|
(28)
|
(72)
|
Present
value of net minimum lease payments
|
581
|
685
|
|
|
|
Presentation
on statement of financial position
|
|
|
Current
|
$362
|
206
|
Non
Current
|
$219
|
479
|
Fiscal Year
|
Operating lease Liabilities
|
Finance Lease Liabilities
|
2020
|
$620
|
283
|
2021
|
216
|
187
|
2022
|
47
|
143
|
2023
|
1
|
68
|
2024
|
-
|
44
|
Total
future minimum lease payments
|
$884
|
725
|
Revenue
Components
|
Three
Months Ended
September
30,
|
|
|
2019
|
2018
|
Revenue:
|
|
|
Manufacturing
|
33.8%
|
36.2%
|
Testing
Services
|
44.7
|
44.2
|
Distribution
|
21.3
|
19.3
|
Real
Estate
|
0.2
|
0.3
|
Total
|
100.0%
|
100.0%
|
|
Three
Months Ended
September
30,
|
|
|
2019
|
2018
|
Revenue
|
100.0%
|
100.0%
|
Cost
of sales
|
77.1
|
79.1
|
Gross Margin
|
22.9%
|
20.9%
|
Operating
expenses
|
|
|
General
and administrative
|
18.2%
|
17.5%
|
Selling
|
1.9
|
1.5
|
Research
and development
|
0.8
|
0.7
|
Gain
on disposal of plant and equipment
|
(0.2)
|
-
|
Total
operating expenses
|
20.7%
|
19.7%
|
Income from Operations
|
2.2%
|
1.2%
|
|
Three Months
Ended
September
30,
|
|
(Unaudited)
|
2019
|
2018
|
General
and administrative
|
$1,788
|
$1,759
|
Selling
|
190
|
147
|
Research
and development
|
76
|
72
|
Gain
on disposal of plant and equipment
|
(24)
|
-
|
Total
|
$2,030
|
$1,978
|
|
Three
Months Ended
September
30,
|
|
(Unaudited)
|
2019
|
2018
|
Interest expenses
|
$68
|
$78
|
|
Three
Months Ended
September
30,
|
|
|
2019
|
2018
|
Interest
income
|
32
|
10
|
Other
rental income
|
30
|
27
|
Exchange
gain/(loss)
|
5
|
(39)
|
Bad
debt recovery
|
11
|
2
|
Other
miscellaneous income
|
32
|
43
|
Total
|
$110
|
$43
|
|
Three
Months Ended
September
30,
|
|
(Unaudited)
|
2019
|
2018
|
Revenue
|
$3,317
|
$3,637
|
Gross margin
|
23.0%
|
21.4%
|
(Loss)/Income from operations
|
$(12)
|
$107
|
|
Three
Months Ended
September
30,
|
|
(Unaudited)
|
2019
|
2018
|
Revenue
|
$4,390
|
$4,437
|
Gross margin
|
27.3%
|
23.8%
|
Income/(Loss) from operations
|
$68
|
$(138)
|
|
Three
Months Ended
September
30,
|
|
(Unaudited)
|
2019
|
2018
|
Revenue
|
$2,099
|
$1,944
|
Gross margin
|
13.9%
|
13.3%
|
Income from operations
|
$204
|
$172
|
|
Three
Months Ended
September
30,
|
|
(Unaudited)
|
2019
|
2018
|
Revenue
|
$17
|
$27
|
Gross margin
|
(5.9)%
|
33.3%
|
Loss from operations
|
$(17)
|
$(12)
|
|
Three
Months Ended
September
30,
|
|
(Unaudited)
|
2019
|
2018
|
Loss from operations
|
$(21)
|
$(6)
|
|
Rule 13a-14(a) Certification of Principal Executive Officer of
Registrant
|
|
|
Rule 13a-14(a) Certification of Principal Financial Officer of
Registrant
|
|
|
Section 1350 Certification
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
TRIO-TECH INTERNATIONAL
|
|
|
By:
|
/s/
Victor H.M. Ting
VICTOR H.M. TING
Vice President and Chief Financial Officer
(Principal Financial Officer)
Dated: November 13, 2019
|
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) $ in Thousands |
Sep. 30, 2019
USD ($)
|
---|---|
Jiang Huai [Member] | |
Short-term loan receivables | |
Short-term | $ 325 |
Less: allowance for doubtful receivables | (325) |
Short-term loan receivables, net | 0 |
Jiang Huai [Member] | RMB | |
Short-term loan receivables | |
Short-term | 2,000 |
Less: allowance for doubtful receivables | (2,000) |
Short-term loan receivables, net | 0 |
Jun Zhou Zhi Ye [Member] | |
Long-term loan receivables | |
Long-term | 814 |
Less: transfer - down-payment for purchase of property | (814) |
Long-term loan receivables, net | 0 |
Jun Zhou Zhi Ye [Member] | RMB | |
Long-term loan receivables | |
Long-term | 5,000 |
Less: transfer - down-payment for purchase of property | (5,000) |
Long-term loan receivables, net | $ 0 |
STOCK OPTIONS (Details) |
3 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Expected life (years) | 2 years 6 months | |
Minimum [Member] | ||
Expected volatility | 45.38% | 60.41% |
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 |
LEASES (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jun. 30, 2019 |
---|---|---|
Leases [Abstract] | ||
2020 | $ 51 | $ 72 |
2021 | 22 | 6 |
Total | $ 73 | $ 78 |
NEW ACCOUNTING PRONOUNCEMENTS |
3 Months Ended |
---|---|
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | The amendments in ASU 2019-07 Codification Updates to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplifications to improve, update, and simplify its regulations on financial reporting and disclosure. The amendments are effective for all entities upon addition to the FASB Codification.
The amendments in ASU 2018-18 ASC Topic 808: Collaborative Arrangements: Clarifying the Interaction between Topic 808 and Topic 606 provide more comparability in the presentation of revenue for certain transactions between collaborative arrangement participants. The amendments allow organizations to only present units of account in collaborative arrangements that are within the scope of the revenue recognition standard together with revenue accounted for under the revenue recognition standard. The parts of the collaborative arrangement that are not in the scope of the revenue recognition standard should be presented separately from revenue accounted for under the revenue recognition standard. The amendments are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. While early application is permitted, including adoption in an interim period, the Company has not elected to early adopt. The effectiveness of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations.
The amendments in ASU 2018-13 ASC Topic 820: Fair Value Measurement: Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement modify the disclosure requirements on fair value measurements based on the concepts in the Concepts Statement, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. While early application is permitted, including adoption in an interim period, the Company has not elected to early adopt. The effectiveness of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations.
The amendments in ASU 2017-04 ASC Topic 350 — 'Intangibles - Goodwill and Other (“ASC Topic 350”) simplify the test for goodwill impairment. For public companies, these amendments are effective for annual periods beginning after December 15, 2019, including interim periods within those periods. While early application is permitted, including adoption in an interim period, the Company has not elected to early adopt. The effectiveness of this update is not expected to have a significant effect on the Company’s presentation of consolidated financial position or results of operations.
The amendments in ASU 2019-05 ASC Topic 326: Financial Instruments — Credit Losses (“ASC Topic 326”): Targeted Transition Relief is issued to provide option to measure certain types of assets at fair value which allows companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The amendments in ASU 2018-19 ASC Topic 326: Codification Improvements to Financial Instruments – Credit Losses clarify that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the lease’s standard. The amendments in ASU 2016-13 ASC Topic 326: Financial Instruments — Credit losses (“ASC Topic 326”) are issued for the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. For public companies that are SEC filers, ASC Topic 326 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. While early application will be permitted for all organizations for fiscal years and interim periods within those fiscal years, beginning after December 15, 2018, the Company has not yet determined if it will early adopt. The Company is currently evaluating the potential impact of this accounting standard update on its consolidated financial statements.
Other new pronouncements issued but not yet effective until after September 30, 2019 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations.
|
WARRANTY ACCRUAL |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 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 of the products manufactured by the Company is generally one year or the warranty period agreed with the customer. The Company estimates the warranty costs based on the historical rates of warranty returns. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary.
|
INVESTMENT PROPERTIES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT PROPERTIES | The following table presents the Company’s investment in properties in China as of September 30, 2019. The exchange rate is based on the market rate as of September 30, 2019.
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.
The following table presents the Company’s investment properties in Malaysia as of September 30, 2019 and June 30, 2019. The exchange rate is based on the exchange rate as of June 30, 2015 published by the Monetary Authority of Singapore.
Rental Property I - Mao Ye 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. On April 1, 2019, a supplementary agreement was signed to revise the monthly rent to RMB 20, or approximately $2.6 for 403 square meters for the remaining 2 unsold units. During the 2019 fiscal year, the Company sold thirteen of the fifteen units constituting the Mao Ye Property. Management has decided not to sell the remaining two units of Mao Ye properties, considering the market conditions in China.
Property purchased from MaoYe generated a rental income of $8 during the three months ended September 30, 2019 as compared to $22 for the same period in last fiscal year.
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. TTCQ is in the legal process to obtain the title deed, which is dependent on JiangHuai completing the entire project.
Property purchased from JiangHuai did not generate any rental income during the three months ended September 30, 2019 or during the same period in the prior fiscal year.
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. . 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 6% every year on May 1, commencing in 2019 until the rental agreement expired on April 30, 2021. For the other leased property (which lease expired on March 31, 2018), TTCQ has signed a rental agreement to rent out the 161 square meters at a monthly rent of RMB 10, or approximately $2 on November 1, 2018 which expires on October 31, 2019. In September 2019, TTCQ has renewed the agreement at the same month rent of RMB 10 or approximately $2 for a period of one year.
Properties purchased from Fu Li generated a rental income of $9 for the three months ended September 30, 2019, and $5 for the same period in the last fiscal year.
Summary
Total rental income for all investment properties in China was $17 for the three months ended September 30, 2019 and $27 for the same period in the last fiscal year.
Depreciation expenses for all investment properties in China were $18 for the three months ended September 30, 2019 and $14 for the same period in the last fiscal year.
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Comprehensive Income (Loss) Attributable to Trio-Tech International Common Shareholders: | ||
Net income | $ 263 | $ 6 |
Foreign currency translation, net of tax | (563) | (539) |
Comprehensive Loss | (300) | (533) |
Less: comprehensive Income (loss) attributable to the non-controlling interests | 9 | (135) |
Comprehensive Loss Attributable to Trio-Tech International Common Shareholders | $ (309) | $ (398) |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Nov. 01, 2019 |
|
Document And Entity Information | ||
Entity Registrant Name | TRIO-TECH INTERNATIONAL | |
Entity Central Index Key | 0000732026 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 3,673,055 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | CA | |
Entity File Number | 001-14523 | |
Title of 12b security | Common Stock, no par value | |
Trading Symbol | TRT | |
Security Exchange Name | NYSE |
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 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 the customers in certain circumstances.
Senior management reviews accounts receivable on a periodic basis to determine if any receivables will potentially be uncollectible. Management includes any accounts receivable balances that are determined to be uncollectible in the allowance for doubtful accounts. After all reasonable attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available, management believed the allowance for doubtful accounts as of September 30, 2019 and June 30, 2019 was adequate.
The following table represents the changes in the allowance for doubtful accounts:
|
ORGANIZATION AND BASIS OF PRESENTATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiaries |
* 100% owned by Trio-Tech International Pte. Ltd.
|
INVENTORIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in provision for obsolete inventory |
|
STOCK OPTIONS |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 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:
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 three months ended September 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, which, among other provisions, allows companies without access to adequate historical data about employee exercise behavior to use a simplified approach for estimating the expected life of a "plain vanilla" option grant. The simplified rule for estimating the expected life of such an option is the average of the time to vesting and the full term of the option. The risk-free rate is consistent with the expected life of the stock options and is based on the United States Treasury yield curve in effect at the time of grant.
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).
During the first quarter of fiscal year 2020, the Company did not grant any options pursuant to the 2017 Employee Plan. There were no stock options exercised during the three-month period ended September 30, 2019. The Company recognized $8 stock-based compensation expenses during the three months ended September 30, 2019.
During the first quarter of fiscal year 2019, the Company did not grant any options pursuant to the 2017 Employee Plan. There were no stock options exercised during the three-month period ended September 30, 2018. The Company recognized $1 stock-based compensation expenses during the three months ended September 30, 2018.
As of September 30, 2019, there were vested 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 remaining contractual term was 3.86 years.
As of September 30, 2018, there were vested stock options granted under the 2017 Employee Plan covering a total of 15,000 shares of Common Stock. The weighted-average exercise price was $5.98 and the weighted average remaining contractual term was 4.48 years.
A summary of option activities under the 2017 Employee Plan during the three months period ended Sep 30, 2019 is presented as follows:
A summary of the status of the Company’s non-vested employee stock options during the three months ended Sep 30, 2019 is presented below:
A summary of option activities under the 2017 Employee Plan during the three months period ended Sep 30, 2018 is presented as follows:
A summary of the status of the Company’s non-vested employee stock options during the three months ended September 30, 2018 is presented below:
2007 Employee Stock Option Plan
The 2007 Employee 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 three months ended September 30, 2019 and September 30, 2018 respectively.
There were no options exercised during the three months ended September 30, 2019. There were 15,000 of options exercised during the three months ended September 30, 2018. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2019. The Company recognized stock-based compensation expenses of $1 in the three months ended September 30, 2018 under the Employee Plan.
As of September 30, 2019, there were vested stock options granted under the 2007 Employee Plan covering a total of 68,125 shares of Common Stock. The weighted-average exercise price was $3.62 and the weighted average remaining contractual term was 1.89 years.
As of September 30, 2018, there were vested employee stock options covering a total of 83,750 shares of Common Stock. The weighted-average exercise price was $3.39 and the weighted average contractual term was 1.75 years.
A summary of option activities under the 2007 Employee Plan during the three months ended September 30, 2019 is presented as follows:
A summary of the status of the Company’s non-vested employee stock options during the three months ended September 30, 2019 is presented below:
A summary of option activities under the 2007 Employee Plan during the three months ended September 30, 2018 is presented as follows:
A summary of the status of the Company’s non-vested employee stock options during the three months ended September 30, 2018 is presented below:
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 exercisable immediately as of the grant date.
During the first quarter of fiscal year 2020, the Company did not grant any options pursuant to the 2017 Directors Plan. There were no stock options exercised during the three months ended September 30, 2019. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2019.
During the first quarter of fiscal year 2019, the Company did not grant any options pursuant to the 2017 Directors Plan. There were no stock options exercised during the three months ended September 30, 2018. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2018.
As all of the stock options granted under the 2017 Directors Plan vest immediately on the date of grant, there were no unvested stock options granted under the 2017 Directors Plan as of September 30, 2019.
As of September 30, 2019, there were vested stock options granted under the 2017 Directors Plan covering a total of 160,000 shares of Common Stock. The weighted-average exercise price was $4.63 and the weighted average remaining contractual term was 4.00 years.
As of September 30, 2018, there were vested stock options granted under the 2017 Directors Plan covering a total of 80,000 shares of Common Stock. The weighted-average exercise price was $5.98 and the weighted average remaining contractual term was 4.48 years.
A summary of option activities under the 2017 Directors Plan during the three months ended September 30, 2019 is presented as follows:
A summary of option activities under the 2017 Directors Plan during the three months ended September 30, 2018 is presented as follows:
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 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 three months ended September 30, 2019 and September 30, 2018.
There were no stock options exercised during the three months ended September 30, 2019. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2019.
There were no stock options exercised during the three months ended September 30, 2018. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2018.
As of September 30, 2019, there were vested stock options granted under the 2007 Directors Plan 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 1.33 years.
As of September 30, 2018, there were vested stock options granted under the 2007 Directors Plan covering a total of 330,000 shares of Common Stock. The weighted-average exercise price was $3.38 and the weighted average remaining contractual term was 2.13 years.
A summary of option activities under the 2007 Directors Plan during the three months ended September 30, 2019 is presented as follows:
A summary of option activities under the 2007 Directors Plan during the three months ended September 30, 2018 is presented as follows:
|
OTHER INCOME |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER INCOME | Other income consisted of the following:
|
WARRANTY ACCRUAL (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty Accrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty liability |
|
REVENUE (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||||||
Contract assets and liabilities |
|
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jun. 30, 2019 |
---|---|---|
Malaysia [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 0 | $ 4 |
Malaysia [Member] | Ringgit RM | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | 18 | |
Tianjin [Member] | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 0 | 58 |
Tianjin [Member] | RMB | ||
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 397 |
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jun. 30, 2019 |
---|---|---|
Payables and Accruals [Abstract] | ||
Payroll and related costs | $ 1,371 | $ 1,354 |
Commissions | 71 | 107 |
Customer deposits | 45 | 46 |
Legal and audit | 345 | 299 |
Sales tax | 12 | 9 |
Utilities | 119 | 120 |
Warranty | 38 | 39 |
Accrued purchase of materials and property, plant and equipment | 244 | 362 |
Provision for re-instatement | 308 | 302 |
Deferred income | 100 | 61 |
Contract liabilities | 496 | 501 |
Other accrued expenses | 286 | 293 |
Currency translation effect | (61) | (7) |
Total | $ 3,374 | $ 3,486 |
EARNINGS PER SHARE |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | The Company adopted ASC Topic 260, Earnings Per Share. Basic Earnings Per Share (“EPS”) is computed by dividing net income available to common shareholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential common shares outstanding during a period. In computing diluted EPS, the average price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants.
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 September 30, 2019. No outstanding options were excluded in the computation of diluted EPS for fiscal year 2020 since all options were dilutive.
Options to purchase 582,500 shares of Common Stock at exercise prices ranging from $2.69 to $5.98 per share were outstanding as of September 30, 2018. No outstanding options were excluded in the computation of diluted EPS for fiscal year 2019 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 period presented herein:
|
BUSINESS SEGMENTS |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS | 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.
The testing service industry (which performs structural and electronic tests of semiconductor devices), the designing and manufacturing of equipment (which equipment tests the structural integrity of integrated circuits and other products), distribution of various products from other manufacturers in Singapore and Southeast Asia, and the real estate segment in China.
The revenue allocated to individual countries was based on where the customers were located. The allocation of the cost of equipment, the current year investment in new equipment and depreciation expense have been made on the basis of the primary purpose for which the equipment was acquired.
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:
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.
All inter-segment revenue was from the manufacturing segment to the testing and distribution segments. Total inter-segment revenue was $381 for the three months ended September 30, 2019, as compared to $285 for the same period in the last fiscal year. Corporate assets mainly consisted of cash and prepaid expenses. Corporate expenses mainly consisted of stock option expenses, salaries, insurance, professional expenses and directors' fees. Corporate expenses are allocated to the four segments. The following segment information table includes segment operating income or loss after including the corporate expenses allocated to the segments, which gets eliminated in the consolidation.
The following segment information is un-audited for the three months ended September 30, 2019 and September 30, 2018:
Business Segment Information:
* Fabrication services is a discontinued operation
|
BANK LOANS PAYABLE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Payable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank loans payable |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future minimum payments | Future minimum payments (excluding interest) as at September 30, 2019 were as follows:
Future minimum payments (excluding interest) as at June 30, 2019 were as follows:
|
EARNINGS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the weighted average shares |
|
BANK LOANS PAYABLE (Details 1) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jun. 30, 2019 |
---|---|---|
Loans Payable [Abstract] | ||
2020 | $ 360 | $ 488 |
2021 | 357 | 362 |
2022 | 375 | 380 |
2023 | 393 | 399 |
2024 | 401 | 407 |
Thereafter | 733 | 744 |
Total obligations and commitments | $ 2,619 | $ 2,780 |
REVENUE (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jun. 30, 2019 |
---|---|---|
Revenue | ||
Trade Accounts Receivable | $ 7,520 | $ 7,113 |
Accounts Payable | 3,170 | 3,272 |
Contract Assets | 517 | 419 |
Contract Liabilities | $ 496 | $ 501 |
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2019 |
Jun. 30, 2019 |
|
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Beginning | $ 263 | $ 259 |
Additions charged to expenses | 28 | 94 |
Recovered | (15) | (84) |
Currency translation effect | (8) | (6) |
Ending | $ 268 | $ 263 |
LEASES (Details 1) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Jun. 30, 2019 |
|
Finance Leases | ||
Plant and equipment, at cost | $ 1,829 | |
Accumulated depreciation | 783 | |
Plant and equipment, net | 1,046 | |
Current portion of finance leases | 206 | $ 283 |
Net of current portion of finance leases | 479 | 442 |
Total finance lease liabilities | 685 | |
Operating Leases | ||
Operating lease right-of-use assets | 614 | 0 |
Current portion of operating leases | 362 | 0 |
Net of current portion of operating leases | 219 | $ 0 |
Total operating lease liabilities | 581 | |
Lease Cost | ||
Interest on Finance Lease | 12 | |
Operating lease costs | 175 | |
Total lease cost | 187 | |
Finance cash flows from finance leases | 65 | |
Finance cash flows from operating leases | $ 184 | |
Weighted-average remaining lease term: Finance leases | 3 years 3 months 14 days | |
Weighted-average remaining lease term: Operating leases | 1 year 1 month 28 days | |
Weighted-average discount rate: Finance leases | 3.51% | |
Weighted-average discount rate: Operating leases | 3.02% |
ASSETS HELD FOR SALE |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 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. During the fourth quarter of fiscal year 2019, Management entered into a Sales and Purchase Agreement with a potential buyer. The completion of sale is subject to the approval by local government. The net book value of the building was RM371, or $88, as at September 30, 2019 and RM371, or $89, as at June 30, 2019.
The following table presents the Company’s assets held for sale in Malaysia as of September 30, 2019 and June 30, 2019. *The exchange rate is based on the exchange rate as of June 30, 2015 published by the Monetary Authority of Singapore.
|
TERM DEPOSITS |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TERM DEPOSITS |
Restricted deposits represent the amount of cash pledged to secure loans payable to 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.
|
ORGANIZATION AND BASIS OF PRESENTATION |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | Trio-Tech International (“the Company” or “TTI” hereafter) was incorporated in fiscal year 1958 under the laws of the State of California. TTI provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia. In addition, TTI operates testing facilities in the United States. The Company also designs, develops, manufactures and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components. In the first quarter of fiscal year 2020, TTI conducted business in four business segments: Manufacturing, Testing Services, Distribution and Real Estate. TTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand, Indonesia and China as follows:
* 100% owned by Trio-Tech International Pte. Ltd.
The accompanying un-audited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. All significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements are presented in U.S. dollars. The accompanying condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. Operating results for the three months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2020. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report for the fiscal year ended June 30, 2019.
The Company’s operating results are presented based on the translation of foreign currencies using the respective quarter’s average exchange rate.
Basis of Presentation and Summary of Significant Accounting Policies
Comparability
Effective on the first day of fiscal 2020, the company adopted Accounting Standards Update 2016-02, Leases (“ASC 842”). Prior periods were not retrospectively restated, and accordingly, the consolidated balance sheet as of June 30, 2019, and the condensed consolidated statements of operations for the three months ended September 30, 2018 were prepared using accounting standards that were different than those in effect for the three months ended September 30, 2019.
Leases-Lessee
Accounting Standards Codification ("ASC") Topic 842 introduces new requirements to increase transparency and comparability among organizations for leasing transactions for both lessees and lessors. It requires a lessee to record a right-of-use asset and a lease liability for all leases with terms longer than 12 months. These leases will be either finance or operating, with classification affecting the pattern of expense recognition.
The standard provided an alternative modified retrospective transition method. Under this method, the cumulative effect adjustment to the opening balance of retained earnings is recognized on the date of adoption (July 1, 2019). The Company adopted ASC 842 as of July 1, 2019, and applied the alternative modified retrospective transition method requiring application of the new guidance to all leases existing at, or entered into on or after, the date of adoption, i.e. July 1, 2019.
The Company applies the guidance in ASC 842 to individual leases of assets. When the Company receives substantially all of the economic benefits from and directs the use of specified property, plant and equipment, transactions give rise to leases. The Company’s classes of assets include real estate leases.
Operating leases are included in operating lease right-of-use ("ROU") assets, current portion and long term portion of operating leases in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Finance leases are included in plant and equipment, current portion and long term portion of finance leases in our consolidated balance sheets.
The Company has elected the practical expedient within ASC 842 to not separate lease and non-lease components within lease transactions for all classes of assets. Additionally, the Company has elected the short-term lease exception for all classes of assets, does not apply the recognition requirements for leases of 12 months or less, and recognizes lease payments for short-term leases as expense either straight-line over the lease term or as incurred depending on whether the lease payments are fixed or variable. These elections are applied consistently for all leases.
As part of applying the transition method, the Company has elected to apply the package of transition practical expedients within the new guidance. As required by the new standard, these expedients have been elected as a package and are consistently applied across the Company’s lease portfolio. Given this election, the Company need not reassess:
When discount rates implicit in leases cannot be readily determined, the Company uses the applicable incremental borrowing rate at lease commencement to perform lease classification tests on lease components and to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate, over a similar term. At each reporting period when there is a new lease initiated, the rates established for that quarter will be used.
In applying the alternative modified retrospective transition method, the Company measured lease liabilities at the present value of the sum of remaining minimum rental payments (as defined under ASC Topic 840). The present value of lease liabilities has been measured using the Company’s incremental borrowing rates as of July 1, 2019 (the date of initial application). Additionally, ROU assets for these operating leases have been measured as the initial measurement of application lease liabilities adjusted for reinstatement liabilities.
The adoption of this new standard at July 1, 2019, and the application of the modified retrospective transition approach resulted in the following changes in the Company’s financial report:
Leases-Lessor
For the Company as a lessor, all of our leases will continue to be classified as operating leases under the new standard. We do not expect the new standard to have a material effect on our financial statements and we do not expect a significant change in our leasing activities between now and adoption. |
ACCRUED EXPENSES |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES | Accrued expenses consisted of the following:
|
TERM DEPOSITS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term deposits |
|
ASSETS HELD FOR SALE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Held-for-sale, Not Part of Disposal Group [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets held for sale |
|
F
MOYG[X>)X[\;_]=&V_=6WK8[33?0V=#1K=I.&EIJ;(NI[OPU!:(@=B>;T<8!<
M*C*+1S P"#.V-Q^"R' '%G9@QP[LL@-KV%V8-/&H.4]AQ$R32TV,;3AHP\DX
M$H4[B&$'L8PCT2R.2>,6'I,T9G%(C7,.&TF@D00884]]EXA!V,3+I8*PB12:
M2($)_E13,<0GQUQ(26#Z9]!%!EQ8YB*3+C2?6T 3N!M:X:6N@!/'U[H"5A2S
M D0+NQ^]!+"C@9>8>]' "[>"-"$OD$\/FH"7A'LA6K, "KK5;_P#W V)@%1$@#%BK))YG4/
M HL$T$0^#)*"("D 8@79I$!-(ON[@439 DH&HF0 RD)1L0>W(N^!+C"*[D@C
M;!]Z2!4'"\<-+W1&04+;B VQI^I*_A><_"]B:6D"BT]P?=-'US"_\DXE2W
MTMEQI>^/OLL?.5=4._2>=&TJ??%/$T:/R@P3/1;#[3=,%._&FQU-?R^*_U!+
M P04 " #U2VU/%]=T4#," '!P &0 'AL+W=OA(1 0.6" O/;!>Y B"#DTWA)FG@.&8C+\YOZ0ZS=UW)F%NZT
M^,-KUQ5XCU$-#1N$>]3C-TCU7&.4BO\!%Q >'C+Q,2HM;%Q1-5BG95+QJ4CV
M.NU <6&F$08@)^$2PI@S
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M=UU_FNCS9FQ>QXM.':?&/)C_'5C]!5!+ P04 " #U2VU/K:/R[UH# "L
M$ &0 'AL+W=OTZ5A<7W$40G.3$3V8
MPLZFU;Q/&G[4=EB8L1SZK6&B13_VDLF]H5W_!5!+ P04 " #U2VU/_J>Z
MK2P" "&!@ &0 'AL+W=O
4I"'-IHUATD3K#3!WXIJJXC\14(4
MP$(1H!2!B0_7&:(<-PA1@] 81&N#S*IBDB1&TAM)F'A6'5M-E&4X1X1R1!N.
MV$LMD$D3KT%B2U,AFB3 06(4)$9 [!F)MTG2V )!-)F'@R0H2(* Y!9(LDV2
MAQ8(IOG'%DE1D'0+XEOK?T@W22+/MT P38J#9"A(AH!820[9)DD:VC.":*((
M!\E1D!P!L?[L0[[Y(X+$M]:O0D3I9I>0U9&DKXAOE-^:7C@G)M7I9LZ@*V,2
ME*'WI*JJU:VT=%JX2MU,59M/9_/4D6R8KQVRW'WE'U!+ P04 " #U2VU/
MPD,/:/4! #>!0 &0 'AL+W=O