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 Office)
|
|
(Zip
Code)
|
|
|
Name of
each exchange
|
Title
of each class
|
Trading
Symbol
|
on
which registered
|
Common
Stock, no par value
|
TRT
|
NYSE
American
|
|
|
Page
|
|
Part I
|
|
|
|
|
Item 1
|
Business
|
1
|
Item 1A
|
Risk factors
|
5
|
Item 1B
|
Unresolved staff comments
|
5
|
Item 2
|
Properties
|
6
|
Item 3
|
Legal proceedings
|
7
|
Item 4
|
Mine safety disclosures
|
7
|
|
|
|
|
Part II
|
|
|
|
|
Item 5
|
Market for registrant’s common equity, related stockholder
matters and issuer purchases of equity securities
|
8
|
Item 6
|
[Reserved]
|
8
|
Item 7
|
Management’s discussion and analysis of financial condition
and results of operations
|
9
|
Item 7A
|
Quantitative and qualitative disclosures about market
risk
|
23
|
Item 8
|
Financial statements and supplementary data
|
23
|
Item 9
|
Changes in and disagreements with accountants on accounting and
financial disclosure
|
23
|
Item 9A
|
Controls and procedures
|
23
|
Item 9B
|
Other information
|
24
|
Item 9 C
|
Disclosure Regarding Foreign Jurisdictions that Prevent
Inspections
|
24
|
|
|
25
|
|
Part III
|
|
|
|
|
Item 10
|
Directors, executive officers and corporate governance
|
25
|
Item 11
|
Executive compensation
|
25
|
Item 12
|
Security ownership of certain beneficial owners and management and
related stockholder matters
|
25
|
Item 13
|
Certain relationships and related transactions, and director
independence
|
25
|
Item 14
|
Principal accountant fees and services
|
25
|
|
|
|
|
Part IV
|
|
|
|
|
Item 15
|
Exhibits and financial statement schedules
|
25
|
Item 16
|
Form 10-K summary
|
25
|
|
|
|
Signatures
|
|
|
Exhibits
|
|
|
|
Report of independent registered public accounting
firm
|
F-1
|
|
Consolidated Balance Sheets as of June 30, 2021 and
2020
|
F-2
|
|
Consolidated Statements of Operations and Comprehensive Income for
the Years Ended June 30, 2021 and 2020
|
F-3
|
|
Consolidated Statements of Shareholders’ Equity for the Years
Ended June 30, 2021 and 2020
|
F-6
|
|
Consolidated Statements of Cash Flows for the Years Ended June 30,
2021 and 2020
|
F-7
|
|
Notes to Consolidated Financial Statements
|
F-8
|
2017
|
Trio-Tech
International Pte. Ltd., Singapore, recertified to biz SAFE Level 3
Workplace Safety and Health standards.
|
2018
|
Trio-Tech
(Tianjin) Co. Ltd. recertified to ISO 9001:2015 standards. (Apr
2018).
Trio-Tech
International Pte. Ltd. (Singapore) recertified to ISO 9001:2015
standards. (Jun 2018)
Trio-Tech
(Malaysia) Sdn. Bhd. recertified to ISO 9001:2015 standards. (Jun
2018)
Trio-Tech
(Bangkok) Co. Ltd. recertified to ISO 9001:2015 standards. (Jun
2018)
Trio-Tech
International Pte. Ltd. (Singapore) recertified to ISO 14001:2015
standards. (Jun 2018)
|
2019
|
Trio-Tech
(Tianjin) Co. Ltd. recertified to ISO 14001:2015 standards. (Jul
2019)
Trio-Tech
(Tianjin) Co. Ltd. recertified to OHSAS 18001:2007 standards. (Jul
2019)
|
2020
|
Trio-Tech
International certified to ISO 9001:2005 standards. (March
2020)
|
2021
|
Trio-Tech
(Tianjin) Co. Ltd. recertified to ISO 9001:2015 standards. (Mar
2021)
Trio-Tech
(Tianjin) Co. Ltd. recertified to ISO 14001:2015 standards. (Mar
2021)
Trio-Tech
(Tianjin) Co. Ltd. certified to ISO 45001:2018 standards. (Mar
2021)
Trio-Tech
International Pte. Ltd. (Singapore) recertified to ISO 9001:2015
standards. (July 2021)
Trio-Tech
International Pte. Ltd. (Singapore) recertified to ISO 14001:2015
standards. (July 2021)
Trio-Tech
(Malaysia) Sdn. Bhd. recertified to ISO 9001:2015 standards. (July
2021)
Trio-Tech
(Malaysia) Sdn. Bhd. recertified to ISO 14001:2015 standards. (July
2021)
Trio-Tech
(Bangkok) Co. Ltd. recertified to ISO 9001:2015 standards. (July
2021)
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
Manufacturing
backlog
|
$5,040
|
$5,010
|
Testing services
backlog
|
3,775
|
2,915
|
Distribution
backlog
|
4,648
|
1,409
|
Real estate
backlog*
|
40
|
6
|
|
$13,503
|
$9,340
|
Location
|
Segment
|
Approx. Sq. Ft.
Occupied
|
Owned
(O) or Leased (L)
&
Expiration Date
|
|
16139 Wyandotte Street, Van Nuys,
CA 91406,
United States of America
|
Corporate, Testing Services / Manufacturing
|
5,200
|
(L) Mar 2023
|
|
1004, Toa Payoh North, Singapore
Unit No. HEX 07-01/07
|
Testing Services
|
6,864
|
(L) Sep 2025
|
|
Unit No. HEX 07-01/07, (ancillary site)
|
Testing Services
|
2,532
|
(L) Sep 2025
|
|
Unit No. HEX 03-01/02/03
|
Testing Services / Manufacturing
|
2,959
|
(L) Sep 2025
|
|
Unit No. HEX 01-08/15
|
Testing Services / Manufacturing / Logistics Store
|
6,864
|
(L) Jan 2023
|
|
Unit No. HEX 01-08/15, (ancillary site)
|
Testing Services / Manufacturing
|
449
|
(L) Jan 2023
|
|
Unit No. HEX 07-10/11
|
Testing Services / Manufacturing
|
1,953
|
(L) Dec 2021
|
|
1008, Toa Payoh North, Singapore
Unit No. HEX 03-09/17
|
Manufacturing
|
6,099
|
(L) Jan 2023
|
|
Unit No. HEX 03-09/17, (ancillary site)
|
Manufacturing
|
70
|
(L) Jan 2023
|
|
Unit No. HEX 01-09/10/11
|
Manufacturing
|
2,202
|
(L) Nov 2023
|
|
Unit No. HEX 01-15/16
|
Manufacturing
|
1,400
|
(L) Sep 2023
|
|
Unit No. HEX 01-08
|
Manufacturing
|
603
|
(L) Sep 2023
|
|
Unit No. HEX 01-12/14
|
Manufacturing
|
1,664
|
(L) Jul 2022
|
|
Lot No. 11A, Jalan SS8/2,
Sungai Way Free Industrial Zone,
47300 Petaling Jaya,
Selangor Darul Ehsan, Malaysia
|
Testing Services
|
78,706
|
(O)
|
|
4809-3-35,CBD Perdana 2
Persiaran Flora Cyber 12
63000 Cyberjaya
|
Manufacturing
|
2000
|
(L) May 2022
|
|
327, Chalongkrung Road,
Lamplathew, Lat Krabang,
Bangkok 10520, Thailand
|
Testing Services
|
34,433
|
(O)
|
|
No. 5, Xing Han Street, Block A
#04-15/16, Suzhou Industrial Park
China 215021
|
Testing Services
|
6,200
|
(L) Jan 2022
|
|
27-05, Huang Jin Fu Pan.
No. 26 Huang Jin Qiao Street
Hechuan District Chongqing
China 401520
|
Real Estate
|
969
|
(L) Aug 2023
|
|
B7-2, Xiqing Economic Development Area International Industrial
Park
Tianjin City, China 300385
|
Testing Services
|
45,940
|
(L) April 2026
|
|
For
the Year Ended June 30,
|
|
|
2021
|
2020
(Restated)
|
Revenue
|
100.0%
|
100.0%
|
Cost of
sales
|
76.4
|
78.9
|
Gross
Margin
|
23.6%
|
21.1%
|
Operating
expenses:
|
|
|
General and
administrative
|
21.3%
|
20.5%
|
Selling
|
1.4
|
2.0
|
Research and
development
|
1.1
|
1.0
|
Impairment loss on
long-lived assets
|
-
|
0.4
|
Total operating
expenses
|
23.8%
|
23.9%
|
Loss
from Operations
|
(0.2)%
|
(2.7)%
|
|
For
the Year Ended June 30,
|
|
|
2021
|
2020
|
Manufacturing
|
40.5%
|
33.7%
|
Testing
|
42.7
|
43.0
|
Distribution
|
16.7
|
23.1
|
Real
estate
|
0.1
|
0.2
|
Total
|
100.0%
|
100.0%
|
|
|
|
|
For
the Year Ended June 30,
|
|
|
2021
|
2020
(Restated)
|
General and
administrative
|
$6,938
|
$7,064
|
Selling
|
446
|
679
|
Research and
development
|
357
|
355
|
Impairment loss on
long-lived assets
|
-
|
139
|
Gain on disposal of
property, plant and equipment
|
(1)
|
(24)
|
Total
|
$7,740
|
$8,213
|
|
For the Year Ended June
30,
|
|
|
2021
|
2020
|
Interest
expenses
|
$126
|
$230
|
|
For
the Year Ended June 30,
|
|
|
2021
|
2020
|
Interest
income
|
$118
|
$177
|
Other rental
income
|
100
|
110
|
Exchange
loss
|
(69)
|
(35)
|
Bad debt recovery/
(expense)
|
9
|
(59)
|
Extinguishment of
PPP loan
|
121
|
-
|
Dividend
income
|
32
|
-
|
Other miscellaneous
income
|
52
|
141
|
Total
|
$363
|
$334
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
Revenue
|
$13,151
|
$11,605
|
Gross
margin
|
25.4%
|
23.1%
|
Income/(Loss) from
operations
|
$376
|
$(326)
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
Revenue
|
$13,846
|
$14,840
|
Gross
margin
|
24.7%
|
23.5%
|
Loss from
operations
|
$(997)
|
$(1,040)
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
Revenue
|
$5,437
|
$7,958
|
Gross
margin
|
17.7%
|
14.0%
|
Income from
operations
|
$657
|
$751
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
Revenue
|
$28
|
$62
|
Gross
margin
|
(175.0)%
|
(16.1)%
|
Loss from
operations
|
$(116)
|
$(97)
|
|
For the Year
Ended
June 30,
|
|
|
2021
|
2020
(Restated)
|
Income / (Loss) from
operations
|
$10
|
$(235)
|
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%,
SIBOR rate +1.2%
and LIBOR rate +1.25%
|
-
|
$4,237
|
$4,237
|
Universal (Far
East) Pte. Ltd., Singapore
|
Lines of
Credit
|
Ranging from 1.85%
to 5.5%
|
-
|
$1,115
|
$1,043
|
Trio-Tech Malaysia
Sdn. Bhd., Malaysia
|
Revolving
Credit
|
Cost of Funds Rate
+2%
|
-
|
$361
|
$361
|
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%,
SIBOR rate +1.25%
and LIBOR rate +1.30%
|
-
|
$4,806
|
$4,806
|
Universal (Far
East) Pte. Ltd., Singapore
|
Lines of
Credit
|
Ranging from 1.85%
to 5.5%
|
-
|
$359
|
$187
|
Trio-Tech Malaysia
Sdn. Bhd., Malaysia
|
Revolving
Credit
|
Cost of Funds Rate
+2%
|
-
|
$350
|
$350
|
|
TRIO-TECH
INTERNATIONAL
By:
/s/ Victor H.M.
Ting
VICTOR
H.M. TING
Vice
President and
Chief
Financial Officer
October
1, 2021
|
|
/s/ A. Charles Wilson
A. Charles Wilson, Director Chairman of the
Board
October 1,
2021
/s/ S.W.Yong
S. W. Yong,
Director
President, Chief
Executive Officer
(Principal
Executive Officer)
October 1,
2021
/s/ Victor H. M. Ting
Victor H.M. Ting,
Director
Vice
President,
and
Chief Financial Officer
(Principal
Financial Officer)
October 1,
2021
/s/
Jason T.
Adelman
Jason T. Adelman,
Director
October 1,
2021
/s/
Richard M.
Horowitz
Richard
M. Horowitz, Director
October 1,
2021
|
Number
|
Description
|
Articles
of Incorporation, as currently in effect. [Incorporated by
reference to Exhibit 3.1 to the Registrant’s Annual Report on
Form 10-K for June 30, 1988.]
|
|
|
|
Bylaws,
as currently in effect. [Incorporated by reference to Exhibit 3.2
to the Registrant’s Annual Report on Form 10-K for June 30,
1988.]
|
|
|
|
Amendment
to 2007 Employee Stock Option Plan [Incorporated by reference to
Exhibit A to the Registrant’s Proxy Statement for its Annual
Meeting held December 14, 2010.]**
|
|
|
|
Amendment
to 2007 Directors Equity Incentive Plan [Incorporated by reference
to Exhibit B to the Registrant’s Proxy Statement for its
Annual Meeting held December 14, 2010.]**
|
|
|
|
Amendment
to 2007 Directors Equity Incentive Plan [Incorporated by reference
to Appendix A to the Registrant’s Proxy Statement for its
Annual Meeting held December 9, 2013.]**
|
|
|
|
2017
Employee Stock Option Plan [Incorporated by reference to Appendix 1
to the Registrant’s Proxy Statement for its Annual Meeting
held December 4, 2017.]**
|
|
|
|
2017
Directors Equity Incentive Plan [Incorporated by reference to
Appendix 2 to the Registrant’s Proxy Statement for its Annual
Meeting held December 4, 2017.]**
|
|
|
|
Amendment to 2017
Directors Equity Incentive Plan
|
|
|
|
21.1
|
Subsidiaries
of the Registrant (100% owned by the Registrant except as otherwise
stated)
|
|
|
|
Express
Test Corporation (Dormant), a California Corporation
|
|
Trio-Tech
Reliability Services (Dormant), a California
Corporation
|
|
KTS
Incorporated, dba Universal Systems (Dormant), a California
Corporation
|
|
European
Electronic Test Center. Ltd., a Cayman Islands Corporation
(Operation ceased on November 1, 2005)
|
|
Trio-Tech
International Pte. Ltd., a Singapore Corporation
|
|
Universal
(Far East) Pte. Ltd., a Singapore Corporation
|
|
Trio-Tech
International (Thailand) Co., Ltd., a Thailand
Corporation
|
|
Trio-Tech
(Bangkok) Co., Ltd., a Thailand Corporation
|
|
Trio-Tech
(Malaysia) Sdn Bhd., a Malaysia Corporation (55% owned by the
subsidiary of Registrant)
|
|
Trio-Tech
(Kuala Lumpur) Sdn Bhd., a Malaysia Corporation (100% owned by
Trio-Tech Malaysia)
|
|
Prestal
Enterprise Sdn. Bhd., a Malaysia Corporation (76% owned by
Trio-Tech International Pte. Ltd., a Singapore
Corporation)
|
|
Trio-Tech
(SIP) Co., Ltd., a China Corporation
|
|
Trio-Tech
(Chongqing) Co. Ltd., (100% owned by Trio-Tech International Pte.
Ltd., a Singapore Corporation)
|
|
SHI
International Pte. Ltd, a Singapore Corporation (55% owned
Trio-Tech International Pte. Ltd., a Singapore
Corporation)
|
|
PT SHI
Indonesia, an Indonesia Corporation (100% owned by SHI
International Pte. Ltd., a Singapore Corporation)
|
|
Trio-Tech
(Tianjin) Co., Ltd., a China Corporation (100% owned by Trio-Tech
International Pte. Ltd., a Singapore Corporation)
|
|
|
Consent
of Independent Registered Public Accounting Firm*
|
|
|
|
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
|
|
June 30,
2021
|
June 30,
2020
(Restated)
|
ASSETS
|
|
|
CURRENT ASSETS:
|
|
|
Cash
and cash equivalents
|
$5,836
|
$4,150
|
Short-term
deposits
|
6,651
|
6,838
|
Trade
account receivables, less allowance for doubtful accounts of $311
and $314,
Respectively
|
8,293
|
5,951
|
Other
receivables
|
662
|
998
|
Inventories,
less provision for obsolete inventories of $679 and $678,
respectively
|
2,080
|
1,922
|
Prepaid
expenses and other current assets
|
418
|
341
|
Financed
sales receivable
|
19
|
-
|
Total
current assets
|
23,959
|
20,200
|
NON-CURRENT
ASSETS:
|
|
|
Deferred
tax assets
|
217
|
247
|
Investment
properties, net
|
681
|
690
|
Property,
plant and equipment, net
|
9,531
|
10,310
|
Operating
lease right-of-use assets
|
1,876
|
944
|
Other
assets
|
262
|
1,609
|
Financed
sales receivable
|
39
|
-
|
Restricted
term deposits
|
1,741
|
1,660
|
Total
non-current assets
|
14,347
|
15,460
|
TOTAL
ASSETS
|
$38,306
|
$35,660
|
|
|
|
LIABILITIES
|
|
|
CURRENT
LIABILITIES:
|
|
|
Lines
of credit
|
$72
|
$172
|
Accounts
payable
|
3,702
|
2,590
|
Accrued
expenses
|
3,363
|
3,005
|
Income
taxes payable
|
314
|
344
|
Current
portion of bank loans payable
|
439
|
370
|
Current
portion of finance leases
|
197
|
231
|
Current
portion of operating leases
|
672
|
477
|
Current
portion of PPP loan
|
-
|
54
|
Total
current liabilities
|
8,759
|
7,243
|
NON-CURRENT
LIABILITIES:
|
|
|
Bank
loans payable, net of current portion
|
1,621
|
1,836
|
Finance leases,
net of current portion
|
253
|
435
|
Operating
leases, net of current portion
|
1,204
|
467
|
Income
taxes payable
|
385
|
430
|
PPP
loan, net of current portion
|
-
|
67
|
Other
non-current liabilities
|
31
|
36
|
Total
non-current liabilities
|
3,494
|
3,271
|
TOTAL
LIABILITIES
|
$12,253
|
$10,514
|
|
|
|
EQUITY
|
|
|
TRIO-TECH INTERNATIONAL’S
SHAREHOLDERS' EQUITY:
|
|
|
Common stock, no par value,
15,000,000 shares authorized; 3,913,055 and 3,673,055 shares issued
and outstanding as at June 30, 2021 and June 30, 2020,
respectively
|
$12,178
|
$11,424
|
Paid-in capital
|
4,233
|
3,984
|
Accumulated retained
earnings
|
6,824
|
7,415
|
Accumulated other comprehensive
gain-translation adjustments
|
2,399
|
1,143
|
Total
Trio-Tech International shareholders' equity
|
25,634
|
23,966
|
Noncontrolling
interest
|
419
|
1,180
|
TOTAL
EQUITY
|
$26,053
|
$25,146
|
TOTAL
LIABILITIES AND EQUITY
|
$38,306
|
$35,660
|
|
For the Year
Ended
|
|
|
|
June
30,
|
|
June
30,
2021
|
2020
(Restated)
|
Revenue
|
|
|
Manufacturing
|
$13,151
|
$11,605
|
Testing
services
|
13,846
|
14,840
|
Distribution
|
5,437
|
7,958
|
Real
estate
|
28
|
62
|
|
32,462
|
34,465
|
Cost of
Sales
|
|
|
Cost of
manufactured products sold
|
9,809
|
8,927
|
Cost of testing
services rendered
|
10,431
|
11,353
|
Cost of
distribution
|
4,475
|
6,847
|
Cost of real
estate
|
77
|
72
|
|
24,792
|
27,199
|
|
|
|
Gross
Margin
|
7,670
|
7,266
|
|
|
|
Operating
Expenses:
|
|
|
General and
administrative**
|
6,938
|
7,064
|
Selling
|
446
|
679
|
Research and
development
|
357
|
355
|
Impairment loss on
long-lived assets
|
-
|
139
|
Gain on disposal of
property, plant and equipment
|
(1)
|
(24)
|
Total operating
expenses
|
7,740
|
8,213
|
|
|
|
Loss from
Operations
|
(70)
|
(947)
|
|
|
|
Other (Expenses)
/ Income
|
|
|
Interest
expenses
|
(126)
|
(230)
|
Other income,
net
|
363
|
334
|
Government
grants
|
514
|
778
|
Gain on sale of
properties
|
-
|
1,172
|
Impairment loss on other
assets
|
(1,580)
|
-
|
Total other (expenses) /
income
|
(829)
|
2,054
|
|
|
|
(Loss) / Income
from Continuing Operations before Income
Taxes
|
(899)
|
1,107
|
|
|
|
Income Tax
(Expenses)/Benefits
|
(228)
|
12
|
|
|
|
(Loss) / Income from continuing
operations before noncontrolling interests, net of
tax
|
(1,127)
|
1,119
|
|
|
|
Discontinued
Operations
|
|
|
Loss from discontinued operations,
net of tax
|
(28)
|
(3)
|
NET (LOSS) /
INCOME
|
(1,155)
|
1,116
|
|
|
|
Less: net (loss)/income attributable
to noncontrolling interests
|
(564)
|
238
|
Net (Loss) /
Income Attributable to Trio-Tech International Common
Shareholders
|
$(591)
|
$878
|
|
|
|
Amounts
Attributable to Trio-Tech International Common
Shareholders:
|
|
|
(Loss)/ Income from continuing
operations, net of tax
|
(575)
|
879
|
Loss from discontinued operations,
net of tax
|
(16)
|
(1)
|
Net (Loss)/
Income Attributable to Trio-Tech International Common
Shareholders
|
$(591)
|
$878
|
|
|
|
Basic (Loss) /
Earnings per Share:
|
|
|
Basic (loss) / earnings per share
from continuing operations attributable to Trio-Tech
International
|
$(0.16)
|
$0.24
|
Basic loss per share from
discontinued operations attributable to Trio-Tech
International
|
$-
|
$-
|
Basic (Loss) /
Earnings per Share from Net Income
|
|
|
Attributable to
Trio-Tech International
|
$(0.16)
|
$0.24
|
|
|
|
Diluted (Loss) /
Earnings per Share:
|
|
|
Diluted (loss) / earnings per share
from continuing operations attributable to Trio-Tech
International
|
$(0.15)
|
$0.24
|
Diluted loss per share from
discontinued operations attributable to Trio-Tech
International
|
-
|
-
|
Diluted (Loss) /
Earnings per Share from Net Income
|
|
|
Attributable to
Trio-Tech International
|
$(0.15)
|
$0.24
|
|
|
|
Weighted average number of common
shares outstanding
|
|
|
Basic
|
3,768
|
3,673
|
Dilutive effect of stock
options
|
117
|
53
|
Number of shares used to compute
earnings per share diluted
|
3,885
|
3,726
|
|
For
the Year Ended
|
|
|
|
June
30,
|
|
June
30,
2021
|
2020
(Restated)
|
Comprehensive
Income Attributable to Trio-Tech
International Common
Shareholders:
|
|
|
|
|
|
Net (loss) /
income
|
$(1,155)
|
1,116
|
Foreign currency
translation, net of tax
|
1,248
|
(742)
|
Comprehensive
Income
|
93
|
374
|
Less: comprehensive
(loss) / income attributable to the noncontrolling
interests
|
(572)
|
220
|
Comprehensive
Income Attributable to Trio-Tech International Common
Shareholders
|
$665
|
$154
|
|
|
|
|
Common
Stock
|
Paid-in
|
Accumulated
Retained
|
Accumulated
Other
Comprehensive
|
Non-
Controlling
|
|
|
|
No. of
Shares
|
Amount
|
Capital
|
Earnings
|
Income
|
Interests
|
Total
|
|
$
|
$
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2019
(Restated)
|
3,673
|
11,424
|
3,838
|
6,537
|
1,867
|
1,195
|
24,861
|
|
|
|
|
|
|
|
|
Stock option expenses
(Restated)
|
-
|
-
|
146
|
-
|
-
|
-
|
146
|
Net income
(Restated)
|
-
|
-
|
-
|
878
|
-
|
238
|
1,116
|
Dividend declared by
subsidiary
|
-
|
-
|
-
|
-
|
-
|
(235)
|
(235)
|
Translation
adjustment
|
-
|
-
|
-
|
-
|
(724)
|
(18)
|
(742)
|
Balance at June 30, 2020
(Restated)
|
3,673
|
11,424
|
3,984
|
7,415
|
1,143
|
1,180
|
25,146
|
|
|
|
|
|
|
|
|
Stock option
expenses
|
-
|
-
|
249
|
-
|
-
|
-
|
249
|
Net loss
|
-
|
-
|
-
|
(591)
|
-
|
(564)
|
(1,155)
|
Dividend declared by
subsidiary
|
-
|
-
|
-
|
-
|
-
|
(189)
|
(189)
|
Exercise of
options
|
240
|
754
|
-
|
-
|
-
|
-
|
754
|
Translation
adjustment
|
-
|
-
|
-
|
-
|
1,256
|
(8)
|
1,248
|
Balance at June 30,
2021
|
3,913
|
12,178
|
4,233
|
6,824
|
2,399
|
419
|
26,053
|
|
Year
Ended
|
|
|
|
June
30,
|
|
June
30,
2021
|
2020
(Restated)
|
|
|
|
Cash
Flow from Operating Activities
|
|
|
Net
income
|
$(1,155)
|
$1,116
|
Adjustments to
reconcile net income to net cash flow provided by operating
activities
|
|
|
Gain
on sale of assets held for sale
|
-
|
(1,172)
|
Depreciation
and amortization
|
3,059
|
3,100
|
Impairment loss on
other assets
|
1,580
|
-
|
Impairment
loss on long-lived assets
|
-
|
139
|
Stock
option expenses
|
249
|
146
|
(Reversal)
/ Addition of obsolete inventories
|
(15)
|
18
|
Payment
of interest portion of finance leases
|
(40)
|
(61)
|
Bad
debt (recovery) / expenses
|
(9)
|
59
|
Accrued
interest expense, net accrued (interest income)
|
29
|
(69)
|
PPP
loan forgiveness income
|
(121)
|
-
|
Dividend
income
|
(32)
|
-
|
Dividend
received
|
32
|
-
|
Gain on sale of
property, plant and equipment
|
(1)
|
(24)
|
Warranty
addition/ (recovery), net
|
3
|
(26)
|
Deferred
tax (benefit)/ expenses
|
(139)
|
63
|
Changes in
operating assets and liabilities, net of acquisition
effects
|
|
|
Trade
account receivables
|
(2,347)
|
1,110
|
Other
receivables
|
336
|
(181)
|
Other
assets
|
(327)
|
100
|
Inventories
|
(98)
|
430
|
Prepaid expenses and other current assets
|
(97)
|
(54)
|
Accounts payable and accrued expenses
|
1,377
|
(968)
|
Income
taxes payable
|
118
|
12
|
Operating
leases liabilities
|
(764)
|
(727)
|
Net
Cash Provided by Operating Activities
|
1,638
|
3,011
|
|
|
|
Cash
Flow from Investing Activities
|
|
|
Proceeds from sale
of assets held for sale
|
-
|
1,167
|
Proceeds from
disposal of property, plant and equipment
|
-
|
39
|
Withdrawal of
unrestricted deposit
|
2,335
|
-
|
Investments in
restricted and unrestricted deposits
|
(1,790)
|
(2,806)
|
Addition to
property, plant and equipment
|
(1,112)
|
(1,017)
|
Net
Cash Used in Investing Activities
|
(567)
|
(2,617)
|
|
|
|
Cash
Flow from Financing Activities
|
|
|
Payment on lines of
credit
|
(589)
|
(2,437)
|
Payment of bank
loans
|
(412)
|
(486)
|
Payment of
principal portion of finance leases
|
(253)
|
(344)
|
Dividends paid on
noncontrolling interest
|
(189)
|
(235)
|
Proceeds from
exercising stock options
|
754
|
-
|
Proceeds from bank
loans
|
205
|
-
|
Proceeds from lines
of credit
|
482
|
2,370
|
Proceeds from
finance leases
|
-
|
279
|
Proceeds from PPP
loan
|
-
|
121
|
Net
Cash Used in Financing Activities
|
(2)
|
(732)
|
|
|
|
Effect
of Changes in Exchange Rate
|
698
|
(421)
|
|
|
|
Net
Increase/ (Decrease) in Cash, Cash Equivalents, and Restricted
Cash
|
1,767
|
(759)
|
Cash,
Cash Equivalents, and Restricted Cash at Beginning of
Period
|
5,810
|
6,569
|
Cash,
Cash Equivalents, and Restricted Cash at End of Period
|
$7,577
|
$5,810
|
|
|
|
Supplementary
Information of Cash Flows
|
|
|
Cash paid during
the period for:
|
|
|
Interest
|
$122
|
$229
|
Income
taxes
|
$207
|
$126
|
|
|
|
Non-Cash
Transactions
|
|
|
Finance
lease of property, plant and equipment
|
$-
|
$279
|
Reconciliation
of Cash, Cash Equivalents, and Restricted Cash
|
|
|
Cash
|
5,836
|
4,150
|
Restricted
Term Deposits
|
1,741
|
1,660
|
Total
Cash, Cash Equivalents, and Restricted Cash Shown in Statement of
Cash Flows
|
$7,577
|
$5,810
|
|
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
|
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
|
|
For
the year ended June 30, 2020
(as
previously reported)
|
For
the year ended June 30, 2020
(Restated)
|
CONSOLIDATED
BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES)
|
|
|
Paid-in
capital
|
3,363
|
3,984
|
Accumulated
retained earnings
|
8,036
|
7,415
|
Total Trio-tech
International shareholders' equity
|
23,966
|
23,966
|
TOTAL
EQUITY
|
25,146
|
25,146
|
|
For
the year ended June 30, 2020
(as
previously reported)
|
For
the year ended June 30, 2020
(Restated)
|
CONSOLIDATED
STATEMENTS OF SHAREHOLDERS EQUITY
|
|
|
Accumulated
retained earnings
|
$8,036
|
$7,415
|
Paid-in
capital
|
3,363
|
3,984
|
|
For
the year ended June 30, 2020
(as
previously reported)
|
For
the year ended June 30, 2020
(Restated)
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|
|
General and
administrative expenses
|
$6,976
|
$7,064
|
Total operating
expenses
|
8,125
|
8,213
|
Loss from
operation
|
(859)
|
(947)
|
Income from
Continuing Operations before Income Taxes
|
1,195
|
1,107
|
Income from
continuing operations before non-controlling interests, net of
tax
|
1,207
|
1,119
|
NET
INCOME
|
1,204
|
1,116
|
Net Income
Attributable to Trio-Tech International Common
Shareholders
|
966
|
878
|
Basic
Earnings per Share:
|
|
|
Basic earnings per
share from continuing operations attributable to Trio-Tech
International
|
0.26
|
0.24
|
|
|
|
Diluted
Earnings per Share:
|
|
|
Diluted earnings
per share from continuing operations attributable to Trio-Tech
International
|
0.26
|
0.24
|
|
June
30,
2021
|
June
30,
2020
|
|
|
|
Short-term
deposits
|
$6,353
|
$7,028
|
Currency
translation effect on short-term deposits
|
298
|
(190)
|
Total
short-term deposits
|
6,651
|
6,838
|
Restricted term
deposits
|
1,682
|
1,712
|
Currency
translation effect on restricted term deposits
|
59
|
(52)
|
Total
restricted term deposits
|
1,741
|
1,660
|
Total
term deposits
|
$8,392
|
$8,498
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
Beginning
|
$314
|
$263
|
Additions charged
to expenses
|
5
|
351
|
Recovered
|
(14)
|
(284)
|
Write-off
|
(16)
|
(9)
|
Currency
translation effect
|
22
|
(7)
|
Ending
|
$311
|
$314
|
|
Loan Expiry
|
|
Loan Amount
|
|
|
Loan Amount
|
|
||
|
Date
|
|
(RMB)
|
|
|
(U.S. Dollars)
|
|
||
Short-term loan receivables
|
|
|
|
|
|
|
|
||
JiangHuai
(Project - Yu Jin Jiang An)
|
May 31,
2013
|
|
|
2,000
|
|
|
|
309
|
|
Less:
allowance for doubtful receivables
|
|
|
|
(2,000
|
)
|
|
|
(309
|
)
|
Net loan receivable from property development projects
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loan receivables
|
|
|
|
|
|
|
|
||
Jun
Zhou Zhi Ye
|
Oct 31,
2016
|
|
|
5,000
|
|
|
|
773
|
|
Less:
transfer – down payment for purchase of investment
property
|
|
|
|
(5,000
|
)
|
|
|
(773
|
)
|
Net loan receivable from property development projects
|
|
|
|
-
|
|
|
|
-
|
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
|
|
|
Raw
materials
|
$1,152
|
$1,281
|
Work in
progress
|
1,218
|
968
|
Finished
goods
|
325
|
422
|
Less: provision for
obsolete inventories
|
(679)
|
(678)
|
Currency
translation effect
|
64
|
(71)
|
|
$2,080
|
$1,922
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
|
|
|
Beginning
|
$678
|
$673
|
Additions charged
to expenses
|
13
|
26
|
Usage -
disposition
|
(28)
|
(8)
|
Currency
translation effect
|
16
|
(13)
|
Ending
|
$679
|
$678
|
|
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 - FuLi
|
Apr 08,
2010
|
4,025
|
648
|
Currency
translation
|
|
-
|
(36)
|
Gross investment in
rental property
|
|
9,649
|
1,493
|
Accumulated
depreciation on rental property
|
June 30,
2021
|
(7,040)
|
(1,079)
|
Reclassified as
“Assets held for sale”
|
July 01,
2018
|
2,822
|
410
|
Reclassification
from “Assets held for sale”
|
Mar 31,
2019
|
(1,029)
|
(143)
|
|
(5,247)
|
(812)
|
|
Net
investment in property – China
|
|
4,402
|
681
|
|
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 - FuLi
|
Apr 08,
2010
|
4,025
|
648
|
Currency
translation
|
|
-
|
(166)
|
Gross investment in
rental property
|
|
9,649
|
1,363
|
Accumulated
depreciation on rental property
|
June 30,
2020
|
(6,558)
|
(940)
|
Reclassified as
“Assets held for sale”
|
July 01,
2018
|
2,822
|
410
|
Reclassification
from “Assets held for sale”
|
Mar 31,
2019
|
(1,029)
|
(143)
|
|
(4,765)
|
(673)
|
|
Net
investment in property – China
|
|
4,884
|
690
|
|
Estimated Useful Life
in Years
|
June 30,
2021
|
June 30,
2020
|
Building and
improvements
|
3-20
|
$5,141
|
$5,102
|
Leasehold
improvements
|
3-27
|
6,174
|
6,170
|
Machinery and
equipment
|
3-7
|
26,804
|
26,578
|
Furniture and
fixtures
|
3-5
|
1,170
|
1,134
|
Equipment under
finance leases
|
3-5
|
1,413
|
1,066
|
Property, plant and
equipment, gross
|
|
$40,702
|
$40,050
|
Less: accumulated
depreciation
|
|
(28,751)
|
(27,148)
|
Accumulated
amortization on equipment under finance leases
|
(1,199)
|
(719)
|
|
Total accumulated
depreciation
|
$(29,950)
|
$(27,867)
|
|
Property, plant and
equipment before currency translation effect, net
|
10,752
|
12,183
|
|
Currency
translation effect
|
(1,221)
|
(1,873)
|
|
Property,
plant and equipment, net
|
$9,531
|
$10,310
|
|
June
30,
|
June
30,
|
|
2021
|
2020
|
|
|
|
Down payment for
purchase of investment properties*
|
$-
|
$1,645
|
Down payment for
purchase of property, plant and equipment
|
372
|
8
|
Deposits for rental
and utilities and others
|
160
|
171
|
Currency
translation effect
|
(270)
|
(215)
|
Total
|
$262
|
$1,609
|
|
RMB
|
U.S.
Dollars
|
Original Investment
(10% of 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 Down Payment (Note *a)
|
4,863
|
781
|
Loans
Receivable
|
5,000
|
814
|
Interest
Receivable
|
1,250
|
200
|
Less: Impairment of
Interest
|
(906)
|
(150)
|
Transferred
to Down Payment (Note *b)
|
5,344
|
864
|
*
Down Payment for Purchase of Investment Properties
|
10,207
|
1,645
|
Less:
Provision of Impairment loss on other assets
|
(10,207)
|
(1,645)
|
Down
Payment for Purchase of Investment Properties
|
-
|
-
|
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%, SIBOR rate +1.2% and LIBOR rate +1.25%
|
-
|
$4,237
|
$4,237
|
Universal (Far
East) Pte. Ltd., Singapore
|
Lines of
Credit
|
Ranging from 1.85%
to 5.5%
|
-
|
$1,115
|
$1,043
|
Trio-Tech Malaysia
Sdn. Bhd., Malaysia
|
Revolving
Credit
|
Cost of Funds Rate
+2%
|
-
|
$361
|
$361
|
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%, SIBOR rate +1.25% and LIBOR rate +1.30%
|
-
|
$4,806
|
$4,806
|
Universal (Far
East) Pte. Ltd., Singapore
|
Lines of
Credit
|
Ranging from 1.85%
to 5.5%
|
-
|
$359
|
$187
|
Trio-Tech Malaysia
Sdn. Bhd., Malaysia
|
Revolving
Credit
|
Cost of Funds Rate
+2%
|
-
|
$350
|
$350
|
Accrued expenses
consisted of the following:
|
For
the Year Ended June 30,
|
|
|
2021
|
2020
(Restated)
|
|
|
|
Payroll and related
costs
|
1,362
|
1,185
|
Commissions
|
51
|
104
|
Customer
deposits
|
45
|
30
|
Legal and
audit
|
321
|
315
|
Sales
tax
|
9
|
19
|
Utilities
|
91
|
80
|
Warranty
|
14
|
12
|
Accrued purchase of
materials and property, plant and equipment
|
144
|
186
|
Provision for
reinstatement
|
290
|
300
|
Deferred
income
|
67
|
88
|
Contract
liabilities
|
628
|
476
|
Other accrued
expenses
|
279
|
287
|
Currency
translation effect
|
62
|
(77)
|
Total
|
$3,363
|
$3,005
|
|
For the Year
Ended
June
30,
|
|
|
2021
|
2020
|
Beginning
|
$12
|
$39
|
Additions charged
to cost and expenses
|
7
|
1
|
Utilization
|
(4)
|
(27)
|
Currency
translation effect
|
(1)
|
(1)
|
Ending
|
$14
|
$12
|
|
June
30, 2021
|
June
30, 2020
|
Note payable
denominated in RM for expansion plans in Malaysia, maturing in
August 2024, bearing interest at the bank’s prime rate less
2.00% (3.60% and 3.85% at June 30, 2021 and June 30, 2020) per
annum, respectively, with monthly payments of principal plus
interest through August 2028, collateralized by the acquired
building with a carrying value of $2,579 and $2,543, as at June 30,
2021 and June 30, 2020, respectively.
|
$1,885
|
$2,206
|
|
|
|
Financial
arrangement at fixed interest rate 3.2% per annum with monthly
payments of principal plus interest through July 2025
|
$175
|
-
|
|
|
|
Total
bank loans payable
|
2,060
|
2,206
|
|
|
|
Current portion of
bank loans payable
|
428
|
384
|
Currency
translation effect on current portion of bank loans
|
11
|
(14)
|
Current
portion of bank loans payable
|
439
|
370
|
Long term portion
of bank loans payable
|
1,564
|
1,911
|
Currency
translation effect on long-term portion of bank loans
|
57
|
(75)
|
Long
term portion of bank loans payable
|
$1,621
|
$1,836
|
2022
|
$439
|
2023
|
457
|
2024
|
462
|
2025
|
208
|
2026
|
171
|
Thereafter
|
323
|
Total
obligations and commitments
|
$2,060
|
2021
|
$370
|
2022
|
384
|
2023
|
400
|
2024
|
403
|
2025
|
158
|
Thereafter
|
491
|
Total
obligations and commitments
|
$2,206
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
Revenue
|
|
|
Customer
A
|
37.7%
|
38.4%
|
Customer
B
|
9.7%
|
17.6%
|
|
|
|
Trade Account
Receivables
|
|
|
Customer
A
|
34.7%
|
40.6%
|
Customer
B
|
11.8%
|
6.3%
|
Business
Segment Information:
|
|
Year
|
|
Operating
|
|
Depr.
|
|
|
Ended
|
Net
|
Income
|
Total
|
and
|
Capital
|
|
June
30,
|
Revenue
|
(Loss)
|
Assets
|
Amort.
|
Expenditures
|
Manufacturing
|
2021
|
$13,151
|
$376
|
$13,622
|
$411
|
$350
|
|
2020
|
$11,605
|
$(326)
|
$9,807
|
$346
|
$134
|
|
|
|
|
|
|
|
Testing
Services
|
2021
|
13,846
|
(997)
|
21,099
|
2,570
|
762
|
|
2020
|
14,840
|
(1,040)
|
21,086
|
2,578
|
834
|
|
|
|
|
|
|
|
Distribution
|
2021
|
5,437
|
657
|
1,156
|
4
|
-
|
|
2020
|
7,958
|
751
|
875
|
100
|
-
|
|
|
|
|
|
|
|
Real
Estate
|
2021
|
28
|
(116)
|
2,070
|
74
|
|
|
2020
|
62
|
(97)
|
3,587
|
76
|
|
|
|
|
|
|
|
|
Fabrication
|
2021
|
-
|
-
|
-
|
-
|
-
|
Services*
|
2020
|
-
|
-
|
27
|
-
|
-
|
|
|
|
|
|
|
|
Corporate
&
|
2021
|
-
|
(10)
|
359
|
-
|
|
Unallocated
|
2020
(Restated)
|
-
|
(235)
|
278
|
-
|
|
|
|
|
|
|
|
|
Total
Company
|
2021
|
$32,462
|
$(70)
|
$38,306
|
$3,059
|
$1,112
|
|
2020
|
$34,465
|
$(947)
|
$35,660
|
$3,100
|
$1,017
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
Interest
income
|
118
|
177
|
Other rental
income
|
100
|
110
|
Exchange
loss
|
(69)
|
(35)
|
Bad debt recovery/
(expense)
|
9
|
(59)
|
Extinguishment of
PPP loan
|
121
|
-
|
Dividend
income
|
32
|
-
|
Other miscellaneous
income
|
52
|
141
|
Total
|
$363
|
$334
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
Government
grants
|
514
|
778
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
United
States
|
(53)
|
(740)
|
International
|
(846)
|
1,847
|
Total
|
$(899)
|
$1,107
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
Current:
|
|
|
Federal
|
$13
|
$(1)
|
State
|
2
|
2
|
Foreign
|
352
|
212
|
|
$367
|
$213
|
Deferred:
|
|
|
Federal
|
$-
|
$-
|
State
|
-
|
-
|
Foreign
|
(139)
|
(225)
|
|
(139)
|
(225)
|
Total
provisions
|
$228
|
$(12)
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
|
Statutory federal
tax rate
|
21.00%
|
21.00%
|
State taxes, net of
federal benefit
|
(0.41)
|
(0.50)
|
Permanent items and
credits
|
4.1
|
13.95
|
Foreign rate
differential
|
74.02
|
(33.86)
|
Other
|
0.67
|
2.14
|
Changes in
valuation allowance
|
(74.02)
|
(3.73)
|
Tax reform related
to one-time repatriation tax
|
-
|
-
|
Effective
rate
|
25.36%
|
(1.00)%
|
|
For the Year Ended
June 30,
|
|
Deferred tax
assets:
|
2021
|
2020
|
Net operating
losses and credits
|
$782
|
$487
|
Inventory
valuation
|
144
|
121
|
Provision for bad
debts
|
-
|
785
|
Accrued
vacation
|
12
|
37
|
Accrued
expenses
|
134
|
188
|
Fixed asset
basis
|
3
|
1
|
Investment in
subsidiaries
|
77
|
277
|
Unrealized
gain
|
4
|
24
|
Other
|
12
|
51
|
Total deferred tax
assets
|
$1,168
|
$1,971
|
Deferred tax
liabilities:
|
|
|
Depreciation
|
(329)
|
(359)
|
Others
|
(-)
|
(76)
|
Total deferred
income tax liabilities
|
$(329)
|
$(435)
|
|
|
|
Subtotal
|
839
|
1,536
|
Valuation
allowance
|
(622)
|
(1,289)
|
Net
deferred tax assets
|
$217
|
$247
|
|
|
|
Presented
as follows in the balance sheets:
|
|
|
Deferred tax
assets
|
217
|
247
|
Deferred tax
liabilities
|
-
|
-
|
Net
deferred tax assets
|
$217
|
$247
|
|
June
30,
|
June
30,
|
|
2021
|
2020
|
Trade Account
Receivables
|
8,293
|
5,951
|
Accounts
Payable
|
3,702
|
2,590
|
Contract
Assets
|
337
|
216
|
Contract
Liabilities
|
628
|
476
|
|
For
the Year Ended
June
30,
|
|
|
2021
|
2020
(Restated)
|
|
|
|
(Loss) / Income
attributable to Trio-Tech International common shareholders from
continuing operations, net of tax
|
$(575)
|
$879
|
Loss attributable
to Trio-Tech International common shareholders from discontinued
operations, net of tax
|
$(16)
|
$(1)
|
|
|
|
Net
(Loss) / income attributable to Trio-Tech International common
shareholders
|
(591)
|
878
|
|
|
|
Weighted average
number of common shares outstanding - basic
|
3,768
|
3,673
|
Dilutive effect of
stock options
|
117
|
53
|
Number
of shares used to compute earnings per share - diluted
|
3,885
|
3,726
|
|
|
|
Basic
(Loss) / Earnings per Share:
|
|
|
Basic (loss) /
earnings per share from continuing operations attributable to
Trio-Tech International
|
$(0.16)
|
$0.24
|
Basic loss per
share from discontinued operations attributable to Trio-Tech
International
|
$-
|
$-
|
|
|
|
Basic
(Loss) / Earnings per Share from net income attributable to
Trio-Tech International
|
$(0.16)
|
$0.24
|
|
|
|
Diluted
(Loss) / Earnings per Share:
|
|
|
Diluted (loss) /
earnings per share from continuing operations attributable to
Trio-Tech International
|
$(0.15)
|
$0.24
|
Diluted loss per
share from discontinued operations attributable to Trio-Tech
International
|
-
|
-
|
|
|
|
Diluted
(Loss) / Earnings per Share from net income attributable to
Trio-Tech International
|
$(0.15)
|
$0.24
|
|
For the Year
Ended
June 30,
|
|
|
2021
|
2020
|
Expected
volatility
|
40.89% to
69.03%
|
40.89% to
55.19%
|
Risk-free interest
rate
|
0.14% to 2.35%
|
0.30% to 2.35%
|
Expected life
(years)
|
2.5 - 3.25
|
2.5 - 3.25
|
|
Options
|
Weighted
Average
Exercise
Price
|
Weighted Average
Remaining
Contractual
Term
(Years)
|
Aggregate
Intrinsic
Value
|
|
|
|
|
|
Outstanding at July
1, 2020
|
196,000
|
$3.92
|
3.72
|
$36
|
Granted
|
71,000
|
5.03
|
4.16
|
14
|
Exercised
|
-
|
-
|
-
|
-
|
Forfeited or
expired
|
-
|
-
|
-
|
-
|
Outstanding at June
30, 2021
|
267,000
|
4.21
|
3.22
|
290
|
Exercisable at June
30, 2021
|
164,750
|
4.35
|
2.74
|
173
|
|
Options
|
Weighted Average
Grant-Date
Fair
Value
|
|
|
|
Non-vested at July
1, 2020
|
98,000
|
$1.79
|
Granted
|
71,000
|
1.88
|
Vested
|
(66,750)
|
1.83
|
Forfeited
|
-
|
-
|
Non-vested at June
30, 2021
|
102,250
|
$2.29
|
|
|
|
|
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
|
60,000
|
2.53
|
2.73
|
36
|
Exercised
|
-
|
-
|
-
|
-
|
Forfeited or
expired
|
-
|
-
|
-
|
-
|
Outstanding at June
30, 2020
|
196,000
|
3.92
|
3.72
|
36
|
Exercisable at June
30, 2020
|
98,000
|
4.44
|
3.41
|
9
|
|
Options
|
Weighted Average
Grant-Date
Fair
Value
|
|
|
|
Non-vested at July
1, 2019
|
87,000
|
$1.43
|
Granted
|
60,000
|
0.85
|
Vested
|
(49,000)
|
1.51
|
Forfeited
|
-
|
-
|
Non-vested at June
30, 2020
|
98,000
|
$1.79
|
|
|
|
|
Options
|
Weighted
Average
Exercise
Price
|
Weighted Average
Remaining
Contractual
Term
(Years)
|
Aggregate
Intrinsic
Value
|
|
|
|
|
|
Outstanding at July
1, 2020
|
77,500
|
$3.69
|
1.22
|
$-
|
Granted
|
-
|
-
|
-
|
-
|
Exercised
|
(40,000)
|
3.26
|
-
|
-
|
Forfeited or
expired
|
-
|
-
|
-
|
-
|
Outstanding at June
30, 2021
|
37,500
|
$4.14
|
0.75
|
$-
|
Exercisable at June
30, 2021
|
37,500
|
$4.14
|
0.75
|
$-
|
|
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 June
30, 2020
|
77,500
|
$3.69
|
1.22
|
$-
|
Exercisable at June
30, 2020
|
77,500
|
$3.69
|
1.22
|
$-
|
|
|
Weighted Average
Grant-Date
|
|
Options
|
Fair
Value
|
|
|
|
Non-vested at July
1, 2020
|
-
|
$-
|
Granted
|
-
|
-
|
Vested
|
-
|
-
|
Forfeited
|
-
|
-
|
Non-vested at June
30, 2021
|
-
|
$-
|
|
|
Weighted Average
Grant-Date
|
|
Options
|
Fair
Value
|
|
|
|
Non-vested at July
1, 2019
|
9,375
|
$1.22
|
Granted
|
-
|
-
|
Vested
|
(9,375)
|
1.22
|
Forfeited
|
-
|
-
|
Non-vested at June
30, 2020
|
-
|
$-
|
|
Options
|
Weighted
Average
Exercise
Price
|
Weighted Average
Remaining
Contractual
Term
(Years)
|
Aggregate
Intrinsic
Value
|
|
|
|
|
|
Outstanding at July
1, 2020
|
240,000
|
$3.93
|
3.75
|
$48
|
Granted
|
80,000
|
5.27
|
4.64
|
-
|
Exercised
|
-
|
-
|
-
|
-
|
Forfeited or
expired
|
-
|
-
|
-
|
-
|
Outstanding at June
30, 2021
|
320,000
|
4.27
|
3.22
|
340
|
Exercisable at June
30, 2021
|
320,000
|
4.27
|
3.22
|
340
|
|
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
|
80,000
|
2.53
|
4.73
|
48
|
Exercised
|
-
|
-
|
-
|
-
|
Forfeited or
expired
|
-
|
-
|
-
|
-
|
Outstanding at June
30, 2020
|
240,000
|
3.93
|
3.75
|
48
|
Exercisable at June
30, 2020
|
240,000
|
3.93
|
3.75
|
48
|
|
Options
|
Weighted
Average
Exercise
Price
|
Weighted Average
Remaining
Contractual
Term
(Years)
|
Aggregate
Intrinsic
Value
|
|
|
|
|
|
Outstanding at July
1, 2020
|
250,000
|
3.32
|
0.83
|
22
|
Granted
|
-
|
-
|
-
|
-
|
Exercised
|
(200,000)
|
3.12
|
-
|
-
|
Forfeited or
expired
|
-
|
-
|
-
|
-
|
Outstanding at June
30, 2021
|
50,000
|
4.14
|
0.75
|
45
|
Exercisable at June
30, 2021
|
50,000
|
4.14
|
0.75
|
45
|
|
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
|
(50,000)
|
3.81
|
-
|
-
|
Outstanding at June
30, 2020
|
250,000
|
3.32
|
0.83
|
22
|
Exercisable at June
30, 2020
|
250,000
|
3.32
|
0.83
|
22
|
2022
|
$145
|
2023
|
$16
|
|
$161
|
2021
|
$120
|
2022
|
$114
|
|
$234
|
|
June
30,
|
|
Components
of Lease Balances
|
2021
|
|
Assets
|
|
|
Gross financial
sales receivable
|
$65
|
|
Unearned finance
income
|
(7)
|
|
Financed Sales
Receivable
|
$58
|
|
|
|
|
Net
financed sales receivables due within one year
|
$19
|
|
Net
financed sales receivables due after one year
|
$39
|
|
|
June
30,
|
Components
of Lease Balances
|
Classification
|
2021
|
Assets
|
|
|
Operating
lease assets
|
Right-of-use
asset-operating, net
|
$1,876
|
Finance
lease assets
|
Property, plant
& equipment
|
1,413
|
Accumulated
amortization
Right-of-use
asset
|
|
(1,199)
|
Assets
|
Property, plant
& equipment
|
$214
|
Total
Leased Assets
|
|
$2,090
|
Liabilities
|
|
|
Operating
Lease Liabilities
|
|
|
Current
portion
|
Current portion of
lease liability- operating
|
$672
|
Long-term
portion
|
Lease liability-
operating, net of current portion
|
1,204
|
Total
Operating Lease Liabilities
|
|
$1,876
|
Finance
Lease Liabilities
|
|
|
Current portion of
finance leases
|
Current portion of
lease liability- finance
|
$197
|
Net of current
portion of finance leases
|
Lease liability-
finance, net of current portion
|
253
|
Total
Finance Lease Liabilities
|
|
$450
|
|
|
|
Total
Lease Liabilities
|
|
$2,326
|
|
3
Months Ended
|
12 Months
Ended
|
Lease
Cost
|
June 30,
2021
|
|
Finance lease
cost:
|
|
|
Interest on lease
liabilities
|
7
|
$42
|
Amortization of
right-of-use asset
|
74
|
334
|
Total Finance Lease
Cost
|
81
|
376
|
|
|
|
Operating Lease
Costs
|
$199
|
$765
|
|
|
|
|
June
30,
|
|
2021
|
Cash
paid for amounts included in the measurement of lease
liabilities
|
|
Operating
cash flows from finance leases
|
$(40)
|
Operating
cash flows from operating leases
|
$(764)
|
Right-of-use
assets obtained in exchange for new operating lease
liabilities
|
$932
|
|
|
Weighted
average remaining lease term (years):
|
|
Finance
leases
|
2.72
|
Operating
leases
|
3.09
|
Weighted
average discount rate:
|
|
Finance
leases
|
3.56
|
Operating
leases
|
4.60
|
|
Operating
Lease Liabilities
|
Finance
Lease Liabilities
|
Fiscal
Year
|
|
|
2022
|
748
|
218
|
2023
|
537
|
137
|
2024
|
313
|
111
|
2025
|
291
|
22
|
Thereafter
|
156
|
-
|
Total future
minimum lease payments
|
$2,045
|
$488
|
Less: amount
representing interest
|
(169)
|
(38)
|
Present value of
net minimum lease payments
|
1,876
|
450
|
|
|
|
Presentation on
statement of financial position
|
|
|
Current
|
$672
|
$197
|
Non-Current
|
$1,204
|
$253
|
|
Operating
Lease Liabilities
|
Finance
Lease Liabilities
|
Fiscal
Year
|
|
|
2021
|
509
|
265
|
2022
|
317
|
211
|
2023
|
168
|
133
|
2024
|
-
|
107
|
Thereafter
|
-
|
20
|
Total future
minimum lease payments
|
$994
|
$736
|
Less: amount
representing interest
|
(50)
|
(70)
|
Present value of
net minimum lease payments
|
944
|
666
|
|
|
|
Presentation on
statement of financial position
|
|
|
Current
|
$477
|
$231
|
Non-Current
|
$467
|
$435
|
|
For the Year Ended June
30,
|
|
Noncontrolling
interest
|
2021
|
2020
|
Beginning
balance
|
$1,180
|
$1,195
|
Net (loss)/
income
|
(564)
|
238
|
Dividend declared
by a subsidiary
|
(189)
|
(235)
|
Translation
adjustment
|
(8)
|
(18)
|
Ending
balance
|
$419
|
$1,180
|
Document and Entity Information - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2021 |
Sep. 01, 2021 |
Dec. 31, 2020 |
|
Document And Entity Information | |||
Entity Registrant Name | TRIO-TECH INTERNATIONAL | ||
Entity Central Index Key | 0000732026 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2021 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | CA | ||
Entity File Number | 1-14523 | ||
Entity Public Float | $ 6,644,000 | ||
Entity Common Stock, Shares Outstanding | 3,913,055 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 311 | $ 314 |
Provision for obsolete inventory | $ 679 | $ 678 |
Common stock, authorized | 15,000,000 | 15,000,000 |
Common stock, issued | 3,913,055 | 3,673,055 |
Common stock, outstanding | 3,913,055 | 3,673,055 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||
Revenue | |||||
Manufacturing | $ 13,151 | $ 11,605 | |||
Testing services | 13,846 | 14,840 | |||
Distribution | 5,437 | 7,958 | |||
Real estate | 28 | 62 | |||
Total | 32,462 | 34,465 | |||
Cost of Sales | |||||
Cost of manufactured products sold | 9,809 | 8,927 | |||
Cost of testing services rendered | 10,431 | 11,353 | |||
Cost of distribution | 4,475 | 6,847 | |||
Cost of real estate | 77 | 72 | |||
Total | 24,792 | 27,199 | |||
Gross Margin | 7,670 | 7,266 | |||
Operating Expenses | |||||
General and administrative | 6,938 | 7,064 | |||
Selling | 446 | 679 | |||
Research and development | 357 | 355 | |||
Impairment loss on long-lived assets | 0 | 139 | |||
Gain on disposal of property, plant and equipment | (1) | (24) | |||
Total operating expenses | 7,740 | 8,213 | |||
Loss from Operations | (70) | (947) | |||
Other (Expenses) / Income | |||||
Interest expenses | (126) | (230) | |||
Other income, net | 363 | 334 | |||
Government grants | 514 | 778 | |||
Gain on sale of properties | 0 | 1,172 | |||
Impariment loss on other assets | (1,580) | 0 | |||
Total other (expenses) / income | (829) | 2,054 | |||
(Loss) / Income from Continuing Operations before Income Taxes | (899) | 1,107 | |||
Income Tax Benefits / (Expenses) | (228) | 12 | |||
(Loss) / Income from continuing operations before non-controlling interests, net of tax | (1,127) | 1,119 | |||
Discontinued Operations | |||||
Loss from discontinued operations, net of tax | (28) | (3) | |||
NET (LOSS) / INCOME | (1,155) | 1,116 | [1] | ||
Less: net income/(loss) attributable to non-controlling interests | (564) | 238 | |||
(Loss) / Net Income Attributable to Trio-Tech International Common Shareholders | (591) | 878 | |||
Amounts Attributable to Trio-Tech International Common Shareholders: | |||||
(Loss) / Income from continuing operations, net of tax | (575) | 879 | |||
Loss from discontinued operations, net of tax | (16) | (1) | |||
Net (Loss) / Income Attributable to Trio-Tech International Common Shareholders | $ (591) | $ 878 | |||
Basic Earnings per Share: | |||||
Basic (loss) / earnings per share from continuing operations attributable to Trio-Tech International | $ (.16) | $ .24 | |||
Basic earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | |||
Basic (loss) / earnings per Share from Net Income Attributable to Trio-Tech International | (.16) | 0.24 | |||
Diluted (Loss) / Earnings per Share: | |||||
Diluted (loss) / earnings per share from continuing operations attributable to Trio-Tech International | (.15) | .24 | |||
Diluted earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 | |||
Diluted (Loss) / Earnings per Share from Net Income Attributable to Trio-Tech International | $ (.15) | $ 0.24 | |||
Weighted average number of common shares outstanding Basic | 3,768 | 3,673 | |||
Dilutive effect of stock options | 117 | 53 | |||
Number of shares used to compute earnings per share diluted | 3,885 | 3,726 | |||
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||
Comprehensive Income Attributable to Trio-Tech International Common Shareholders: | |||||
Net (loss) / income | $ (1,155) | $ 1,116 | [1] | ||
Foreign currency translation, net of tax | 1,248 | (742) | |||
Comprehensive Income | 93 | 374 | |||
Less: comprehensive (loss) / income attributable to the non-controlling interests | (572) | 220 | |||
Comprehensive Income Attributable to Trio-Tech International Common Shareholders | $ 2,665 | $ 154 | |||
|
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands |
Common Stock |
Additional Paid-In Capital |
Accumulated Retained Earnings |
Accumulated Other Comprehensive Income |
Noncontrolling Interest |
Total |
|||
---|---|---|---|---|---|---|---|---|---|
Beginning balance, shares at Jun. 30, 2019 | 3,673 | ||||||||
Beginning balance, amount at Jun. 30, 2019 | [1] | $ 11,424 | $ 3,838 | $ 6,537 | $ 1,867 | $ 1,195 | $ 24,861 | ||
Stock option expenses | [1] | 146 | 146 | ||||||
Net (loss) / income | [1] | 878 | 238 | 1,116 | |||||
Dividend declared by subsidiary | (235) | (235) | |||||||
Translation adjustment | (724) | (18) | (742) | ||||||
Ending balance, shares at Jun. 30, 2020 | 3,673 | ||||||||
Ending balance, amount at Jun. 30, 2020 | $ 11,424 | 3,984 | 7,415 | 1,143 | 1,180 | 25,146 | [1] | ||
Stock option expenses | $ 249 | 249 | |||||||
Net (loss) / income | $ (591) | (564) | (1,155) | ||||||
Dividend declared by subsidiary | (189) | (189) | |||||||
Exercise of options, shares | 240 | ||||||||
Exercise of options, amount | $ 754 | 754 | |||||||
Translation adjustment | $ 1,256 | $ (8) | 1,248 | ||||||
Ending balance, shares at Jun. 30, 2021 | 3,913 | ||||||||
Ending balance, amount at Jun. 30, 2021 | $ 25,634 | ||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||
Cash Flow from Operating Activities | |||||
Net (loss) / income | $ (1,155) | $ 1,116 | [1] | ||
Adjustments to reconcile net income to net cash flow provided by operating activities | |||||
Gain on sale of assets held for sale | 0 | (1,172) | |||
Depreciation and amortization | 3,059 | 3,100 | |||
Impairment loss on other assets | (1,580) | 0 | |||
Impairment loss on long-lived assets | 0 | 139 | |||
Stock option expenses | 249 | 146 | |||
(Reversal) / Addition of obsolete inventory | (15) | 18 | |||
Payment of interest portion of finance leases | 40 | 61 | |||
Bad debt (recovery) / expenses | (9) | 59 | |||
Accrued interest expense, net accrued interest income | 29 | (69) | |||
PPP loan forgiveness income | 121 | 0 | |||
Dividend income | (32) | 0 | |||
Dividend received | 32 | 0 | |||
Gain on sale of property, plant and equipment | (1) | (24) | |||
Warranty addition / (recovery), net | (3) | (26) | |||
Deferred tax (benefit) / expenses | (139) | 63 | |||
Changes in operating assets and liabilities | |||||
Trade accounts receivables | (2,347) | 1,110 | |||
Other receivables | 336 | (181) | |||
Other assets | (327) | 100 | |||
Inventories | (98) | 430 | |||
Prepaid expenses and other current assets | (97) | (54) | |||
Accounts payable and accrued expenses | 1,377 | (968) | |||
Income tax payable | 118 | 12 | |||
Operating lease liabilities | 764 | 727 | |||
Net Cash Provided by Operating Activities | 1,638 | 3,011 | |||
Cash Flow from Investing Activities | |||||
Proceeds from sale of assets held for sale | 0 | 1,167 | |||
Proceeds from disposal of property, plant and equipment | 0 | 39 | |||
Withdrawal of un-restricted deposit | 2,335 | 0 | |||
Investments in restricted and un-restricted deposits | (1,790) | (2,806) | |||
Additions to property, plant and equipment | (1,112) | (1,017) | |||
Net Cash used in Investing Activities | (567) | (2,617) | |||
Cash Flow from Financing Activities | |||||
Payment on lines of credit | (589) | (2,437) | |||
Payment of bank loans | (412) | (486) | |||
Payment of principal portion of finance leases | (253) | (344) | |||
Dividends paid on non-controlling interest | (189) | (235) | |||
Proceeds from exercising stock options | 754 | 0 | |||
Proceeds from bank loans | 205 | 0 | |||
Proceeds from lines of credit | 482 | 2,370 | |||
Proceeds from finance leases | 0 | 279 | |||
Proceeds from PPP loan | 0 | 121 | |||
Net Cash Used in Financing Activities | (2) | (732) | |||
Effect of Changes in Exchange Rate | 698 | (421) | |||
Net (Decrease) / Increase in Cash, Cash Equivalents, and Restricted Cash | 1,767 | (759) | |||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 5,810 | 6,569 | |||
Cash, Cash Equivalents, and Restricted Cash at End of Period | 7,577 | 5,810 | |||
Supplementary Information of Cash Flows | |||||
Cash paid during the period for Interest | 122 | 229 | |||
Cash paid during the period for Income taxes | 207 | 126 | |||
Non-Cash Transactions | |||||
Finance lease of property, plant and equipment | 0 | 279 | |||
Reconciliation of Cash, cash equivalents, and restricted cash | |||||
Cash | 5,836 | 4,150 | [1] | ||
Restricted Term Deposits | 1,741 | 1,660 | |||
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ 7,577 | $ 5,810 | |||
|
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation and Principles of Consolidation - Trio-Tech International (the “Company” or “TTI” hereafter) was incorporated in fiscal 1958 under the laws of the State of California. TTI provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia. In addition, TTI operates testing facilities in the United States. The Company also designs, develops, manufactures and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components. In fiscal 2021, 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, Ireland and China as follows:
* 100% owned by Trio-Tech International Pte. Ltd.
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP’’). The basis of accounting differs from that used in the statutory financial statements of the Company’s subsidiaries and equity investee companies, which are prepared in accordance with the accounting principles generally accepted in their respective countries of incorporation. In the opinion of management, the consolidated financial statements have reflected all costs incurred by the Company and its subsidiaries in operating the business.
All dollar amounts in the consolidated financial statements and in the notes herein are presented in thousands of United States dollars (US$’000) unless otherwise designated.
Liquidity – The Company incurred net loss attributable to common shareholders of $591 and net income attributable to common shareholders of $878 for fiscal years 2021 and 2020, respectively.
The Company’s core businesses - testing services, manufacturing and distribution - operate in a volatile industry, whereby its average selling prices and product costs are influenced by competitive factors. These factors create pressures on sales, costs, earnings and cash flows, which will impact liquidity.
Foreign Currency Translation and Transactions — The U.S. dollar is the functional currency of the U.S. parent company. The Singapore dollar, the national currency of Singapore, is the primary currency of the economic environment in which the operations in Singapore are conducted. The Company also has business entities in Malaysia, Thailand, China and Indonesia of which the Malaysian ringgit (“RM”), Thai baht, Chinese renminbi (“RMB”) and Indonesian rupiah, are the national currencies. The Company uses the U.S. dollar for financial reporting purposes.
The Company translates assets and liabilities of its subsidiaries outside the U.S. into U.S. dollars using the rate of exchange prevailing at the fiscal year end, and the consolidated statements of operations and comprehensive income or loss is translated at average rates during the reporting period. Adjustments resulting from the translation of the subsidiaries’ financial statements from foreign currencies into U.S. dollars are recorded in shareholders' equity as part of accumulated other comprehensive gain - translation adjustments. Gains or losses resulting from transactions denominated in currencies other than functional currencies of the Company’s subsidiaries are reflected in income for the reporting period.
Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Among the more significant estimates included in these consolidated financial statements are the estimated allowance for doubtful account receivables, reserve for obsolete inventory, reserve for warranty, impairments and the deferred income tax asset allowance. Actual results could materially differ from those estimates.
Revenue Recognition — The Company adopted ASU No. 2014-09, ASC Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”). This standard update outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers.
We apply a five-step approach as defined in ASC Topic 606 in determining the amount and timing of revenue to be recognized: (1) identifying the contract with customer; (2) identifying the performance obligations in the contracts; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied.
Revenue derived from testing services is recognized when testing services are rendered. Revenue generated from sale of products in the manufacturing and distribution segments are recognized when persuasive evidence of an arrangement exists, delivery of the products has occurred, customer acceptance has been obtained (which means the significant risks and rewards of ownership have been transferred to the customer), the price is fixed or determinable and collectability is reasonably assured. Certain customers can request for installation and training services to be performed for certain products sold in the manufacturing segment. These services are mainly for helping customers with the test runs of the machines sold and are considered a separate performance obligation. Such services can be provided by other entities as well and these do not significantly modify the product. The Company recognizes the revenue at point in time when the Company has satisfied its performance obligation.
In the real estate segment: (1) revenue from property development is earned and recognized on the earlier of the dates when the underlying property is sold or upon the maturity of the agreement; if this amount is uncollectible, the agreement empowers the repossession of the property, and (2) rental revenue is recognized on a straight-line basis over the terms of the respective leases. This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue is commenced when the tenant assumes possession of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements.
GST / Indirect Taxes — The Company’s policy is to present taxes collected from customers and remitted to governmental authorities on a net basis. The Company records the amounts collected as a current liability and relieves such liability upon remittance to the taxing authority without impacting revenues or expenses.
Trade Account Receivables and Allowance for Doubtful Accounts — During the normal course of business, the Company extends unsecured credit to its customers in all segments. Typically, credit terms require payment to be made between 30 to 90 days from the date of the sale. The Company generally does not require collateral from our customers.
The Company’s management considers the following factors when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. The Company includes any account balances that are determined to be uncollectible, along with a general reserve, in the overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to management, the Company believed that its allowance for doubtful accounts was adequate as of June 30, 2021 and 2020.
Warranty Costs — The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded in its manufacturing segment. The Company estimates 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.
Cash and Cash Equivalents — The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Term Deposits — Term deposits consist of bank balances and interest-bearing deposits having maturities of 3 to 6 months.
Restricted Term Deposits — The Company held certain term deposits in the Singapore and Malaysia operations which were considered restricted, as they were held as security against certain facilities granted by the financial institutions.
Inventories — Inventories in the Company’s manufacturing and distribution segments, consisting principally of raw materials, works in progress, and finished goods, are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or market value. The semiconductor industry is characterized by rapid technological change, short-term customer commitments and rapid fluctuations in demand. Provisions for estimated excess and obsolete inventory are based on our regular reviews of inventory quantities on hand and the latest forecasts of product demand and production requirements from our customers. Inventories are written down for not-saleable, excess or obsolete raw materials, works-in-process and finished goods by charging such write-downs to cost of sales. In addition to write-downs based on newly introduced parts, statistics and judgments are used for assessing provisions of the remaining inventory based on salability and obsolescence.
Property, Plant and Equipment and Investment Properties — Property, plant and equipment, and investment properties are stated at cost, less accumulated depreciation and amortization. Depreciation is provided for over the estimated useful lives of the assets using the straight-line method. Amortization of leasehold improvements is provided for over the lease terms or the estimated useful lives of the assets, whichever is shorter, using the straight-line method.
Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and improvements to the assets are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the consolidated statements of operations and comprehensive income or loss.
Long-Lived Assets and Impairment – The Company’s business requires heavy investment in manufacturing facilities and equipment that are technologically advanced but can quickly become significantly underutilized or rendered obsolete by rapid changes in demand.
The Company evaluates the long-lived assets, including property, plant and equipment and investment property, for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for our business, significant negative industry or economic trends, and a significant decline in the stock price for a sustained period of time. Impairment is recognized based on the difference between the fair value of the asset and its carrying value, and fair value is generally measured based on discounted cash flow analysis, if there is significant adverse change.
The Company applies the provisions of ASC Topic 360, Accounting for the Impairment or Disposal of Long-Lived Assets (“ASC Topic 360”), to property, plant and equipment. ASC Topic 360 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value.
Leases - Company as Lessee
Accounting Standards Codification Topic 842 ("ASC Topic 842") introduced 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 Company applies the guidance in ASC Topic 842 to its 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, the 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 under the noncurrent asset portion of our consolidated balance sheets and under this current portion and noncurrent liabilities portion of 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 related lease. Finance leases are included in property, plant and equipment under the noncurrent asset portion of our consolidated balance sheets and under the current portion and noncurrent liabilities portion of our consolidated balance sheets.
The Company has elected the practical expedient within ASC Topic 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.
Leases - Company as Lessor
All of the leases under which the Company is the lessor will continue to be classified as operating leases and sales-type lease under the new standard The new standard did not have a material effect on our consolidated financial statements and will not have a significant change in our leasing activities.
Comprehensive Income or Loss — ASC Topic 220, Reporting Comprehensive Income, (“ASC Topic 220”), establishes standards for reporting and presentation of comprehensive income or loss and its components in a full set of general-purpose consolidated financial statements. The Company has chosen to report comprehensive income or loss in the statements of operations. Comprehensive income or loss is comprised of net income or loss and all changes to shareholders’ equity except those due to investments by owners and distributions to owners.
Income Taxes — The Company accounts for income taxes using the liability method in accordance with ASC Topic 740, Accounting for Income Taxes (“ASC Topic 740”). ASC Topic 740 requires an entity to recognize deferred tax liabilities and assets. Deferred tax assets and liabilities are recognized for the future tax consequence attributable to the difference between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements, which will result in taxable or deductible amounts in future years. Further, the effects of enacted tax laws or rate changes are included as part of deferred tax expenses or benefits in the period that covers the enactment date.
The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The Company recognizes potential liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result.
Retained Earnings — It is the intention of the Company to reinvest earnings of its foreign subsidiaries in the operations of those subsidiaries. These taxes are undeterminable at this time. The amount of earnings retained in subsidiaries was $16,683 and $15,585 at June 30, 2021 and 2020, respectively.
Research and Development Costs — The Company incurred research and development costs of $357 and $355 in fiscal year 2021 and in fiscal year 2020, respectively, which were charged to operating expenses as incurred.
Stock-based compensation — The Company calculates compensation expense related to stock option awards made to employees and directors based on the fair value of stock-based awards on the date of grant. The Company determines the grant date fair value of our stock option awards using the Black-Scholes option pricing model and for awards without performance condition the related stock-based compensation is recognized over the period in which a participant is required to provide service in exchange for the stock-based award, which is generally four years. The Company recognizes stock-based compensation expense in the consolidated statements of shareholders' equity based on awards ultimately expected to vest. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates.
Determining the fair value of stock-based awards at the grant date requires significant judgement. The determination of the grant date fair value of stock-based awards using the Black-Scholes option-pricing model is affected by our estimated common stock fair value as well as other subjective assumptions including the expected term of the awards, the expected volatility over the expected term of the awards, expected dividend yield and risk-free interest rates. The assumptions used in our option-pricing model represent management’s best estimates and are as follows:
Earnings per Share — Computation of basic earnings per share is conducted by dividing net income available to common shares (numerator) by the weighted average number of common shares outstanding (denominator) during a reporting period. Computation of diluted earnings per share gives effect to all dilutive potential common shares outstanding during a reporting period. In computing diluted earnings per share, the average market price of common shares for a reporting period is used in determining the number of shares assumed to be purchased from the exercise of stock options.
Fair Values of Financial Instruments — Carrying values of trade account receivables, accounts payable, accrued expenses, and term deposits approximate their fair value due to their short-term maturities. Carrying values of the Company’s lines of credit and long-term debt are considered to approximate their fair value because the interest rates associated with the lines of credit and long-term debt are adjustable in accordance with market situations when the Company tries to borrow funds with similar terms and remaining maturities. See Note 16 for detailed discussion of the fair value measurement of financial instruments.
ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The financial assets and financial liabilities that require recognition under the guidance include available-for-sale investments, employee deferred compensation plan and foreign currency derivatives. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. As such, fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. The hierarchy is broken down into three levels based on the reliability of inputs as follows:
Concentration of Credit Risk — Financial instruments that subject the Company to credit risk compose trade account receivables. The Company performs ongoing credit evaluations of its customers for potential credit losses. The Company generally does not require collateral. The Company believes that its credit policies do not result in significant adverse risk and historically it has not experienced significant credit related losses.
Investments — The Company (a) evaluates the sufficiency of the total equity at risk, (b) reviews the voting rights and decision-making authority of the equity investment holders as a group, and whether there are any guaranteed returns, protection against losses, or capping of residual returns within the group, and (c) establishes whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. The Company would consolidate an investment that is determined to be a VIE if it was the primary beneficiary. The primary beneficiary of a VIE is determined by a primarily qualitative approach, whereby the variable interest holder, if any, has the power to direct the VIE’s most significant activities and is the primary beneficiary. A new accounting standard became effective and changed the method by which the primary beneficiary of a VIE is determined. Through a primarily qualitative approach, the variable interest holder, who has the power to direct the VIE’s most significant activities is determined to be the primary beneficiary. To the extent that the investment does not qualify as VIE, the Company further assesses the existence of a controlling financial interest under a voting interest model to determine whether the investment should be consolidated.
Equity Method — The Company analyzes its investments to determine if they should be accounted for using the equity method. Management evaluates both Common Stock and in-substance Common Stock to determine whether they give the Company the ability to exercise significant influence over operating and financial policies of the investment even though the Company holds less than 50% of the Common Stock and in-substance Common Stock. The net income of the investment, if any, will be reported as “Equity in earnings of unconsolidated joint ventures, net of tax” in the Company’s consolidated statements of operations and comprehensive income.
Cost Method — Investee companies not accounted for under the consolidation or the equity method of accounting are accounted for under the cost method of accounting. Under this method, the Company’s share of the earnings or losses of such Investee companies is not included in the consolidated balance sheet or statements of operations and comprehensive income or loss. However, impairment charges are recognized in the consolidated statements of operations and comprehensive income or loss. If circumstances suggest that the value of the investee Company has subsequently recovered, such recovery is not recorded.
Loan Receivables from Property Development Projects — The loan receivables from property development projects are classified as current asset, carried at face value, and are individually evaluated for impairment. The allowance for loan losses reflects management’s best estimate of probable losses determined principally on the basis of historical experience and specific allowances for known loan accounts. All loans or portions thereof deemed to be uncollectible or to require an excessive collection cost are written off to the allowance for losses.
Interest income on the loan receivables from property development projects are recognized on an accrual basis. Discounts and premiums on loans are amortized to income using the interest method over the remaining period to contractual maturity. The amortization of discounts into income is discontinued on loans that are contractually 90 days past due or when collection of interest appears doubtful.
Contingent Liabilities — Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein.
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed.
Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.
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RESTATEMENTS |
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RESTATEMENTS | During the preparation of the Annual Report on Form 10-K for the year ended June 30, 2021, the Company has discovered errors in the accounting treatment of expensing stock option issued to the Company’s directors and employees from fiscal year 2016 to 2020 under FASB ASC Topic 718, Compensation – Stock Compensation, which resulted in misstatements in its previously issued consolidated financial statements for the years ended June 30, 2016 to June 30, 2020. The Company has amended and restated its 2020 consolidated financial statements to accumulated retained earnings by $621 and its additional paid-in-capital by $621 as of June 30, 2020. The Company has also increased its general and administrative expenses by $88 for the year ended June 30, 2020. As a result, the Company has restated its consolidated financial statements in accordance with ASC 250, Accounting Changes and Error Corrections (the “restated consolidated financial statements”). There is no tax impact implications resulted from the restatement.
The impact of the restatement on the consolidated financial statements as previously reported is summarized below:
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NEW ACCOUNTING PRONOUNCEMENTS |
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Accounting Standards Update and Change in Accounting Principle [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | In August 2020, the FASB issued ASU 2020-06: Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivative and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock as well as amend the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusion. In addition, this ASU improves and amends the related EPS guidance. These amendments are effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Adoption is either a modified retrospective method or a fully retrospective method of transition. The Company has completed its assessment and concluded that this update has no significant impact to the Company’s consolidated financial statements.
In March 2020, FASB issued ASU 2020-04 ASC Topic 848: Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The amendments are effective for all entities as of March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company has completed its assessment and concluded that this update has no significant impact to the Company’s consolidated financial statements..
The amendments in ASU 2019-12 ASC Topic 740: Income Taxes: Simplifying Accounting for Income Taxes remove specific exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles (GAAP). The amendments eliminate the need for an organization to analyze whether the specific exceptions apply in a given period, improve financial statement preparers’ application of income tax-related guidance and simplify GAAP. The amendments are effective for all entities for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The effectiveness of this update is not expected to have a significant effect on the Company’s consolidated financial position or results of operations.
In June 2016, FASB issued ASU 2016-13 ASC Topic 326: Financial Instruments — Credit Losses (“ASC Topic 326”) 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. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. ASC Topic 326 is effective for the Company for annual periods beginning after December 15, 2022. The Company has completed its assessment and concluded that this update has no significant impact to the Company’s consolidated financial statements..
Other new pronouncements issued but not yet effective until after June 30, 2021 are not expected to have a significant effect on the Company’s consolidated financial position or results of operations.
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TERM DEPOSITS |
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Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TERM DEPOSITS |
Restricted deposits represent the amount of cash pledged to secure loans payable granted by financial institutions and serve as collateral for public utility agreements such as electricity and water and performance bonds related to customs duty payable. Restricted term deposits are classified as noncurrent 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.
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TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS |
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TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | Account receivables are customer obligations due under normal trade terms. The Company performs continuing credit evaluations of its customers’ financial conditions, and although management generally does not require collateral, letters of credit may be required from its customers in certain circumstances.
Senior management reviews trade account receivables on a periodic basis to determine if any receivables will potentially be uncollectible. Management includes any trade account receivables balances that are determined to be uncollectible in the allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to us, management believed the allowance for doubtful accounts as of June 30, 2021 and June 30, 2020, was adequate.
The following table represents the changes in the allowance for doubtful accounts:
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LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS |
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LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS | The following table presents Trio-Tech (Chongqing) Co. Ltd (“TTCQ”)’s loan receivable from property development projects in China as of June 30, 2021.
The short-term loan receivables of renminbi (“RMB”) 2,000, or approximately $309, arose due to TTCQ entering into a Memorandum Agreement with JiangHuai Property Development Co. Ltd. (“JiangHuai”) to invest in their property development projects (Project - Yu Jin Jiang An) located in Chongqing City, China in fiscal 2011. TTCQ is in the legal process of recovering the outstanding amount of $309.
The long-term loan receivable of RMB 5,000, or approximately $773, arose from TTCQ entering into a Memorandum Agreement with JiaSheng Property Development Co. Ltd. (“JiaSheng”) to invest in JiaSheng’s property development projects (Project B-48 Phase 2) located in Chongqing City, China in fiscal 2011. The loan receivable was secured and repayable at the end of the term. The book value of the loan receivable approximates its fair value. During fiscal year 2015, the loan receivable was transferred to down payment for purchase of investment property that is being developed in the Singapore Themed Resort Project (See Note 10).
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INVENTORIES |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | Inventories consisted of the following:
The following table represents the changes in provision for obsolete inventories:
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INVESTMENT PROPERTIES |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT PROPERTIES | The following table presents the Company’s investment in properties in China as of June 30, 2021. The exchange rate is based on the market rate as of June 30, 2021.
The following table presents the Company’s investment in properties in China as of June 30, 2020. The exchange rate is based on the market rate as of June 30, 2020.
Rental Property I - MaoYe Property
In fiscal 2008, TTCQ purchased an office in Chongqing, China from MaoYe Property Ltd. (“MaoYe”) for a total cash purchase price of RMB 5,554, or approximately $894. During the fiscal year 2019, the Company sold thirteen of the fifteen units constituting the MaoYe Property. Management has decided not to sell the remaining two units of MaoYe properties in the near future, considering the market conditions in China. These properties are vacant as of June 30, 2021, since the last lease agreement expired in March 2021. A new lease agreement had subsequently been signed in September 2021 at a monthly rate of RMB14, or approximately $2, commencing from September 1, 2021 to February 28, 2022.
Property purchased from MaoYe generated a rental income of $9 and $32 for the years ended June 30, 2021 and 2020, respectively.
Depreciation expense for MaoYe was $15 and $13 for the years ended June 30, 2021 and 2020, respectively.
Rental Property II - JiangHuai
In fiscal year 2010, TTCQ purchased eight units of commercial property in Chongqing, China from Chongqing JiangHuai Real Estate Development Co. Ltd. (“JiangHuai”) for a total purchase price of RMB 3,600, or approximately $580. TTCQ had yet to receive the title deed for these properties. TTCQ was in the legal process of obtaining the title deed until the developer encountered cash flow difficulties in the recent years. Since then, JiangHuai company is under liquidation and is now undergoing asset distribution. Nonetheless, this is not expected to affect the property’s market value but, in view of the COVID-19 pandemic and current economic situation, it is likely to be more tedious and time-consuming for the Court in their execution of the sale.
Property purchased from JiangHuai did not generate any rental income for both the years ended June 30, 2021 and 2020.
Depreciation expense for JiangHuai was $27 and $26 for the years ended June 30, 2021 and 2020, respectively.
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 to TTCQ in April 2013 and the title deed was received during the third quarter of fiscal 2014.
One of the two commercial properties were leased by TTCQ by a third party under a two years lease to rent out the 154.49 square meter at a monthly rate of RMB9, or approximately $1, commencing from May 21, 2021 to May 23, 2023.
For the other leased property, TTCQ renewed the lease agreement to rent out the 161 square meter space at a monthly rate of RMB10, or approximately $1, from November 1, 2019 to October 31, 2020. After which, TTCQ renewed the lease agreement at a monthly rate of RMB10, or approximately $1, from November 1, 2020 to April 30, 2021 and May 1, 2021 to October 31, 2021. Properties purchased from FuLi generated a rental income of $19 and $30 for the years ended June 30, 2021 and 2020, respectively.
Depreciation expense for FuLi was $30 and $28 for the years ended June 30, 2021 and 2020, respectively.
Summary
Total rental income for all investment properties in China was $28 for the year ended June 30, 2021, and $62 for the same period in the prior fiscal year.
Depreciation expenses for all investment properties in China were $72 and $67 for the years ended June 30, 2021 and 2020, respectively.
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PROPERTY, PLANT AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | Property, plant and equipment consisted of the following:
Depreciation and amortization expenses for property, plant and equipment during fiscal years 2021 and 2020 were $2,419 and $2,341, respectively. |
OTHER ASSETS |
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Other Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS |
*Down payment for purchase of investment properties included:
a) On December 2, 2010, the Company signed a Joint Venture agreement (“agreement”) with Jia Sheng Property Development Co. Ltd. (“Developer”) to form a new company, Junzhou Co. Limited (“Joint Venture” or “Junzhou”), to jointly develop the “Singapore Themed Park” project (the “project”). The Company paid RMB10 million for the 10% investment in the joint venture. The Developer paid the Company a management fee of RMB 5 million in cash upon signing of the agreement, with a remaining fee of RMB 5 million payable upon fulfilment of certain conditions in accordance with the agreement. The Company further reduced its investment by RMB 137, or approximately $22, through the losses from operations incurred by the Joint Venture.
On October 2, 2013, the Company disposed of its entire 10% interest in the Joint Venture but to date has not received payment in full therefor. The Company recognized that disposal based on the recorded net book value of RMB 5 million, or equivalent to $803K, from net considerations paid, in accordance with GAAP under ASC Topic 845 Non-monetary Consideration. It is presented under “Other Assets” as noncurrent assets to defer the recognition of the gain on the disposal of the 10% interest in the joint venture investment until such time that the consideration is paid, so that the gain can be ascertained.
b) Amounts of RMB 5,000, or approximately $773, as disclosed in Note 6, plus the interest receivable on long term loan receivable of RMB 1,250, or approximately $200, and impairment on interest of RMB 906, or approximately $150.
The shop lots in the Singapore Themed Resort Project being developed by the Developer under the agreement are to be delivered to TTCQ upon completion thereof. The initial targeted date of completion was December 31, 2016. Based on discussion with the Developer, the completion date is currently estimated to be December 31, 2022. The delay was primarily due to the time needed by the Developer to work with various parties to inject sufficient funds into this project, especially during the COVID-19 pandemic.
During the fourth quarter of 2021, The Company accrued an impairment charge of $1,580 related to the doubtful recovery of the down payment on shop lots in the Singapore Theme Resort Project in Chongging, China. The Company elected to take this non-cash impairment charge because of increased uncertainties regarding the project’s viability given the developers weakening financial condition as well as uncertainties arising from the negative real-estate environment in China, implementation of control measures on real-estate lending and its relevant government policies, together with effects of the ongoing pandemic.
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LINES OF CREDIT |
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LINES OF CREDIT | The carrying value of the Company’s lines of credit approximates its fair value, because the interest rates associated with the lines of credit are adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities.
The Company’s credit rating provides it with readily and adequate access to funds in global markets.
As of June 30, 2021, the Company had certain lines of credit that are collateralized by restricted deposits.
As of June 30, 2020, the Company had certain lines of credit that are collateralized by restricted deposits.
On November 18, 2019, Trio-Tech International Pte. Ltd. signed an agreement with JECC Leasing (Singapore) Pte. Ltd. for an Account Receivables Financing facility for SGD 1,000, or approximately $742 based on the market exchange rate. Interest is charged at LIBOR rate +1.3% for USD financing and SIBOR rate +1.25% for SGD financing. The financing facility was set up to facilitate the working capital in our operations in Singapore. The Company started to use this facility in the second quarter of fiscal year 2020.
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ACCRUED EXPENSES |
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ACCRUED EXPENSES |
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WARRANTY ACCRUAL |
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WARRANTY ACCRUAL | The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded. The warranty period for products manufactured by the Company is generally one year or the warranty period agreed upon with the customer. The Company estimates the warranty costs based on the historical rates of warranty returns. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary.
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BANK LOANS PAYABLE |
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Loans Payable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BANK LOANS PAYABLE | Bank loans payable consisted of the following:
Future minimum payments (excluding interest) as of June 30, 2021, were as follows:
Future minimum payments (excluding interest) as of June 30, 2020, were as follows:
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | The Company had capital commitments in Malaysia for the purchase of equipment and other related infrastructure costs amounting to RM305, or approximately $74 as at June 30, 2021, as compared to no capital commitment as at June 30, 2020.
The Company is, from time to time, the subject of litigation claims and assessments arising out of matters occurring in its normal business operations. In the opinion of management, resolution of these matters will not have a material adverse effect on the Company’s consolidated financial statements.
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FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE |
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Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE | In accordance with ASC Topic 825 and 820, the following presents assets and liabilities measured and carried at fair value and classified by level of fair value measurement hierarchy:
There were no transfers between Levels 1 and 2 during the fiscal year ended June 30, 2021, or for the same period in the prior fiscal year.
Term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments.
Restricted term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments.
PPP loan (Level 2) – The carrying amount approximates its fair value based on similar short-term debt issues available to the Company.
Lines of credit (Level 3) – The carrying value of the lines of credit approximates fair value due to the short-term nature of the obligations.
Bank loans payable (Level 3) – The carrying value of the Company’s bank loan payables approximates its fair value as the interest rates associated with long-term debt is adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities.
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CONCENTRATION OF CUSTOMERS |
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CONCENTRATION OF CUSTOMERS | The Company had two major customer that accounted for the following revenue and trade account receivables:
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BUSINESS SEGMENTS |
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BUSINESS SEGMENTS | In fiscal year 2021, the Company operated in four segments; the testing service industry (which performs structural and electronic tests of semiconductor devices), the designing and manufacturing of equipment (assembly of equipment that tests the structural integrity of integrated circuits and other products), distribution of various products from other manufacturers in Singapore and Asia and the real estate segment in China.
The revenue allocated to individual countries was based on where the customers were located. The allocation of the cost of equipment, the current year investment in new equipment and depreciation expense have been made on the basis of the primary purpose for which the equipment was acquired.
All intersegment sales were sales from the manufacturing segment to the testing and distribution segment. Total intersegment sales were $410 in fiscal year 2021 and $816 in fiscal year 2020. Corporate assets mainly consisted of cash and prepaid expenses. Corporate expenses mainly consisted of stock option expenses, salaries, insurance, professional expenses and directors' fees. Corporate expenses are allocated to the four segments on a predetermined fixed amount calculated based on the annual budgeted sales, except the Malaysia operation, which is calculated based on actual sales. The following segment information table includes segment operating income or loss after including corporate expenses allocated to the segments, which gets eliminated in the consolidation.
* Fabrication services is a discontinued operation.
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER INCOME, NET | Other income, net consisted of the following:
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GOVERNMENT GRANTS |
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GOVERNMENT GRANTS |
During fiscal year 2021, the Company received government grants amounting to $514, of which $401 were the financial assistance received from the Singapore and Malaysia governments amid the COVID-19 pandemic.
During fiscal year 2020, the Company received government grants amounting to $778, of which $718 were the financial assistance received from the Singapore, Malaysia and China governments amid the COVID-19 pandemic.
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | (Loss)/Income before provision for income taxes consists of the following:
The components of the provision for income taxes are as follows:
A reconciliation of income tax benefit compared to the amount of income tax expense that would result by applying the U.S. federal statutory income tax rate to pre-tax income is as follows:
The provision for income taxes has been determined based upon the tax laws and rates in the countries in which we operate. The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgment is required in determining the provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.
Due to the enactment of Tax Cuts and Jobs Act, the Company is subject to a tax on global intangible low-taxed income (“GILTI”). GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences including outside basis differences expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost, and therefore has included GILTI expense in its effective tax rate calculation for the year ended June 30, 2021.
On March 27, 2020, The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted by the US Government in response to the COVID-19 pandemic. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act did not have a material impact to the consolidated financial statements as of June 30, 2021. During fiscal year ended June 30, 2021, the Company received acknowledgement of forgiveness of its paycheck protection program loan which is treated as tax-exempt income for US federal tax purposes.
The Company has maintained an indefinite reinvestment assertion as of June 30, 2021. Accordingly, no deferred taxes related to withholding taxes or unrealized foreign currency gains or losses have been recorded.
In assessing the ability to realize the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on these criteria, management believes it is more likely than not the Company will not realize the benefits of the federal, state, and foreign deductible differences. Accordingly, a full valuation allowance has been established.
Temporary differences that give rise to a significant portion of deferred tax assets and deferred tax liabilities are as follows for the year ended June 30:
The valuation allowance decreased by $667 and increased by $527 in fiscal years 2021 and 2020, respectively.
At June 30, 2021, the Company had federal net operating loss carryforwards and state net operating loss carryforward of $1,248, which expire through 2033. These carryovers may be subject to limitations under I.R.C. Section 382. Management of the Company is uncertain whether it is more likely than not that these future benefits will be realized. Accordingly, a full valuation allowance was established.
Generally, U.S. federal, state, and foreign authorities may examine the Company’s tax returns for three years, four years, and five years, respectively, from the date an income tax return is filed. However, the taxing authorities may continue to adjust the Company’s net operating loss carryforwards until the statute of limitations closes on the tax years in which the net operating losses are utilized.
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REVENUE |
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REVENUE | The Company generates revenue primarily from 3 different segments: Manufacturing, Testing and Distribution. The Company accounts for a contract with a customer when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company’s revenues are measured based on consideration stipulated in the arrangement with each customer, net of any sales incentives and amounts collected on behalf of third parties, such as sales taxes. The revenues are recognized as separate performance obligations that are satisfied by transferring control of the product or service to the customer.
Significant Judgments
The Company’s arrangements with its customers include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. A product or service is considered distinct if it is separately identifiable from other deliverables in the arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer.
The Company allocates the transaction price to each performance obligation on a relative stand-alone 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 renders 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 nonconformance issues for rejected products. Based on historical and recent data trends, it is concluded that these terms of the contract do not represent potential variable consideration. The transaction price is not contingent on the occurrence of any future event.
Distribution
The Company distributes complementary products, particularly equipment, industrial products and components by manufacturers mainly from the U.S., Europe, Taiwan and Japan. The Company recognizes revenue from product sales at a point in time when the Company has satisfied its performance obligation by transferring control of the product to the customer. The Company uses judgment to evaluate whether the control has transferred by considering several indicators discussed above. The Company recognizes the revenue at a point in time, generally upon shipment or delivery of the products to the customer or distributors, depending upon terms of the sales order.
Method and Impact of Adoption
Effective as of July 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and its related amendments using the modified retrospective transition method. This method was applied to contracts that were not complete as of the date of adoption. Under the modified retrospective transition approach, periods prior to the adoption date were not adjusted and continue to be reported in accordance with ASC Topic 605.
An assessment was made on the impact of all existing arrangements as at the date of adoption, under ASC Topic 606, to identify the cumulative effect of applying ASC Topic 606 on the beginning retained earnings. The Company quantified the impact of the adoption on its financial position, results of operations and cash flow, and the impact was insignificant to the Company.
The impact is primarily driven by the changes related to the accounting of standard warranty. Prior to adoption of ASC Topic 606, the Company accounted for the estimated warranty cost as a charge to costs of sales when revenue was recognized. Upon adoption of ASC Topic 606, the standard warranty for customized products is recognized as a separate performance obligation.
The Company has completed its adoption and implemented policies, processes and controls to support the standard’s measurement and disclosure requirements. The Company recognizes net product revenue when it satisfies the obligations as evidenced by the transfer of control of its products and services to customers. The guidance did not have material impact on the Company’s consolidated financial results.
Contract Balances
The timing of revenue recognition, billings and collections may result in billed account receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities). The Company’s payment terms and conditions vary by contract type, although terms generally include a requirement of payment of 70% to 90% of total contract consideration within 30 to 60 days of shipment, with the remainder payable within 30 days of acceptance. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component.
Contract assets were recorded under other receivable while contract liabilities were recorded under accrued expenses in the balance sheet.
The following table is the reconciliation of contract balances.
Remaining Performance Obligation
As at June 30, 2021, the Company had $924 of remaining performance obligations, which represents our obligation to deliver products and services. Given the profile of contract terms, approximately 82.2% of this amount is expected to be recognized as revenue over the next two years, while the remaining amount is expected to be recognized between three and five years.
Refer to note 18 “Business Segments” of the Notes to Consolidated Financial Statements for information related to revenue.
Practical Expedients
The Company applies the following practical expedients:
Costs to obtain a contract are not material, and the Company generally expenses such costs as incurred because the amortization period is one year or less.
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EARNINGS PER SHARE |
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EARNINGS PER SHARE | The Company adopted ASC Topic 260, Earnings Per Share. Basic earnings per share (“EPS”) are 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 674,500 shares of Common Stock at exercise prices ranging from $2.53 to $5.98 per share were outstanding as of June 30, 2021. 348,000 stock options were excluded in the computation of diluted EPS for fiscal year 2021 because they were anti-dilutive.
Options to purchase 763,500 shares of Common Stock at exercise prices ranging from $2.53 to $5.98 per share were outstanding as of June 30, 2020. 410,000 (restated) stock options were excluded in the computation of diluted EPS for fiscal year 2020 because they were anti-dilutive.
The following table is a reconciliation of the weighted average shares used in the computation of basic and diluted EPS for the years presented herein:
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STOCK OPTIONS (RESTATED) |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK OPTIONS (RESTATED) | 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. The Company’s board of directors approved an amendment to the 2017 Directors Plan in September 2020 to increase the shares covered thereby from 300,000 shares to an aggregate of 600,000 shares, which amendment was approved by the Company’s shareholders at the annual meeting held in December 2020. 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 twelve months ended June 30, 2021 and 2020 respectively. The observation period covered is consistent with the expected life of the 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 no less than fair value as of the grant date and the options granted must be exercisable within a maximum of ten years after the date of grant, or such lesser period of time as is set forth in the stock option agreements. The options may be exercisable (a) immediately as of the effective date of the stock option agreement granting the option, or (b) in accordance with a schedule related to the date of the grant of the option, the date of first employment, or such other date as may be set by the Compensation Committee. Generally, options granted under the 2017 Employee Plan are exercisable within five years after the date of grant, and vest over the period as follows: 25% vesting on the grant date and the remaining balance vesting in equal installments on the next three succeeding anniversaries of the grant date. The share-based compensation will be recognized in terms of the grade method on a straight-line basis for each separately vesting portion of the award. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2017 Employee Plan).
The Company granted options to purchase 71,000 shares of its Common Stock to employees pursuant to the 2017 Employee Plan during the twelve months ended June 30, 2021. The weighted average grant-date fair value of stock options granted during the year ended June 30, 2021 was $1.88. The total fair value of vested employee stock options granted during the year ended June 30, 2021 was $39.
There were no stock options exercised during the twelve months ended June 30, 2021. The Company recognized stock-based compensation expenses of $10 and $105 in the three and twelve months ended June 30, 2021, respectively under the 2017 Employee Plan. The balance of unamortized stock-based compensation of $71 based on fair value on the grant date related to options granted under the 2017 Employee Plan is to be recognized over a period of three years. The weighted average remaining contractual term for non-vested options was 2.00 years.
As of June 30, 2021, there were vested employee stock options granted under the 2017 Employee Plan covering a total of 164,750 shares of Common Stock. The weighted average exercise price was $4.35, and the weighted average contractual term was 2.74 years. The total fair value of vested employee stock options as of June 30, 2021 was $268.
The Company granted options to purchase 60,000 shares of its Common Stock to employees pursuant to the 2017 Employee Plan during the twelve months ended June 30, 2020. The weighted average grant-date fair value of stock options granted during the year ended June 30, 2020 was $0.85. The total fair value of vested employee stock options granted during the year ended June 30, 2020 was $16.
There were no stock options exercised during the twelve months ended June 30, 2020. The Company recognized stock-based compensation expenses of $18* and $85* in the three and twelve months ended June 30, 2020, respectively under the 2017 Employee Plan. The balance of unamortized stock-based compensation of $54* based on fair value on the grant date related to options granted under the 2017 Employee Plan is to be recognized over a period of three years. The weighted average remaining contractual term for non-vested options was 2.03 years.
As of June 30, 2020, there were vested employee stock options granted under the 2017 Employee Plan covering a total of 98,000 shares of Common Stock. The weighted average exercise price was $4.44 and the weighted average contractual term was 3.41 years. The total fair value of vested employee stock options as of June 30, 2020 was $164*.
A summary of option activities under the 2017 Employee Plan during the twelve-month period ended June 30, 2021 is presented as follows:
A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2021 is presented below:
A summary of option activities under the 2017 Employee Plan during the twelve-month period ended June 30, 2020 is presented as follows:
A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2020 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.
There were 40,000 options exercised during the twelve months ended June 30, 2021. The Company recognized stock-based compensation expenses of $Nil in the twelve months ended June 30, 2021 under the 2007 Employee Plan.
There were no options exercised during the twelve months ended June 30, 2020. The Company recognized stock-based compensation expenses of $Nil in the twelve months ended June 30, 2020 under the 2007 Employee Plan.
As of June 30, 2021, there were vested employee stock options that were exercisable covering a total of 37,500 shares of Common Stock. The weighted average exercise price was $4.14 and the weighted average contractual term was 0.75 years. The total fair value of vested employee stock options as of June 30, 2021 was $61.
As of June 30, 2020, there were vested employee stock options that were exercisable covering a total of 77,500 shares of Common Stock. The weighted average exercise price was $3.69 and the weighted average contractual term was 1.22 years. The total fair value of vested employee stock options as of June 30, 2020 was $120.
A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2021, is presented as follows:
A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2020, is presented as follows:
A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2021, is presented below:
A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2020, is presented below:
2017 Directors Equity Incentive Plan
The 2017 Directors Plan initially covered an aggregate of 300,000 shares of the Company’s common stock. The Company’s board of directors approved an amendment to the 2017 Directors Plan in September 2020 to increase the shares covered thereby from 300,000 shares to an aggregate of 600,000 shares, which amendment was approved by the Company’s shareholders at the annual meeting held in December 2020. The 2017 Directors Plan permits the grant of options to its directors in the form of non-qualified options and restricted stock. The exercise price of the non-qualified options is required to be 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.
In the fiscal year ended June 30, 2021, the Company granted options to purchase 80,000 shares of its Common Stock to directors pursuant to the 2017 Directors Plan with an exercise price equal to the fair market value of Common Stock (as defined under the 2017 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) at the date of grant. The fair value of the options granted to purchase 80,000 shares of the Company’s Common Stock was approximately $143 based on the fair value of $1.79 per share determined by the Black-Scholes option pricing model. As all of the stock options granted under the 2017 Directors Plan vest immediately at the date of grant, there were no unvested stock options granted under the 2017 Directors Plan as of June 30, 2021. There were no options exercised during the twelve months ended June 30, 2021. The Company recognized stock-based compensation expenses of $143 in the twelve months ended June 30, 2021 under the 2017 Directors Plan.
In the fiscal year ended June 30, 2020, the Company granted options to purchase 80,000 shares of its Common Stock to directors pursuant to the 2017 Directors Plan with an exercise price equal to the fair market value of Common Stock (as defined under the 2017 Directors Plan in conformity with Regulation 409A or the Internal Revenue Code of 1986, as amended) at the date of grant. The fair value of the options granted to purchase 80,000 shares of the Company’s Common Stock was approximately $61 based on the fair value of $0.76 per share determined by the Black-Scholes option pricing model. As all of the stock options granted under the 2017 Directors Plan vest immediately at the date of grant, there were no unvested stock options granted under the 2017 Directors Plan as of June 30, 2020. There were no options exercised during the twelve months ended June 30, 2020. The Company recognized stock-based compensation expenses of $61 in the twelve months ended June 30, 2020, under the 2017 Directors Plan.
A summary of option activities under the 2017 Directors Plan during the twelve months ended June 30, 2021, is presented as follows:
A summary of option activities under the 2017 Directors Plan during the twelve months ended June 30, 2020, 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 Directors Plan permitted the grant of options covering up to an aggregate of 500,000 shares of Common Stock to its directors in the form of nonqualified options and restricted stock. The exercise price of the nonqualified options is 100% of the fair value of the underlying shares on the grant date. The options have five-year contractual terms and are generally exercisable immediately as of the grant date.
As the 2007 Directors plan terminated in fiscal 2018, the Company did not grant any options pursuant to the 2007 Director Plan during the twelve months ended June 30, 2021.
There were 200,000 stock options exercised during the twelve-month ended June 30, 2021. The Company did not recognize any stock-based compensation expenses during the twelve months ended June 30, 2021.
There were 50,000 stock options expired, while no stock options were exercised during the twelve-month ended June 30, 2020. The Company did not recognize any stock-based compensation expenses during the twelve-month ended June 30, 2020.
As of June 30, 2021, there were vested director stock options covering a total of 50,000 shares of Common Stock. The weighted average exercise price was $4.14 and the weighted average remaining contractual term was 0.75 years. The total fair value of vested directors' stock options as of June 30, 2021 was $72. All director stock options vest immediately at the date of grant. There were no unvested director stock options as of June 31, 2021.
As of June 30, 2020, there were vested director stock options covering a total of 250,000 shares of Common Stock. The weighted average exercise price was $3.32 and the weighted average remaining contractual term was 0.83 years. The total fair value of vested directors' stock options as of June 30, 2020 was $301. All director stock options vest immediately at the date of grant. There were no unvested director stock options as of June 30, 2020.
A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2021, is presented as follows:
A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2020, is presented as follows:
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | Company as Lessor
Operating leases under which the Company is the lessor arise from leasing the Company’s commercial real estate investment property to third parties. Initial lease terms generally range from 12 to 60 months. Depreciation expense for assets subject to operating leases is taken into account primarily on the straight-line method over a period of twenty years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expenses relating to the property held as investments in operating leases were $72 and $67 for the years ended June 30, 2021 and 2020, respectively.
Future minimum rental income in China and Thailand to be received from fiscal year 2022 to fiscal year 2023 on non-cancellable operating leases is contractually due as of June 30, 2021, as follows:
Future minimum rental income in China and Thailand to be received from fiscal year 2021 to fiscal year 2022 on non-cancellable operating leases is contractually due as of June 30, 2020, as follows:
Sales-type lease which the Company is the lessor arise from lease of four units Chiller System. The Company classifies its lease arrangements at inception of the arrangement. The lease term is 3 years, contains an automatic transfer of title at the end of the lease term and a guarantee of residual value at the end of the lease term. The customer is required to pay for executory cost such as taxes.
Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales of four units of chiller systems are as follows:
As of June 30, 2021, the financed sale receivables had a weighted average effective interest rate of 13.2% and weighted average remaining lease term of 2.75 years.
Company as Lessee
The Company has operating leases for corporate offices and research and development facilities with remaining lease terms of one year to three years and finance leases for plant and equipment.
Supplemental balance sheet information related to leases is as follows (in thousands):
Other information related to leases was as follows (in thousands except lease term and discount rate):
As of June 30, 2021, the maturities of the Company's operating and finance lease liabilities were as follow:
As of June 30, 2020, the maturities of the Company's operating and finance lease liabilities were as follows:
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NON-CONTROLLING INTEREST |
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Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NON-CONTROLLING INTEREST | In accordance with the provisions of ASC Topic 810, the Company has classified the noncontrolling interest as a component of stockholders’ equity in the accompanying consolidated balance sheets. Additionally, the Company has presented the net income attributable to the Company and the noncontrolling ownership interests separately in the accompanying consolidated financial statements.
Noncontrolling interest represents the minority stockholders’ share of 45% of the equity of Trio-Tech Malaysia Sdn. Bhd., 45% interest in SHI International Pte. Ltd., and 24% interest in Prestal Enterprise Sdn. Bhd., which are subsidiaries of the Company.
The table below reflects a reconciliation of the equity attributable to noncontrolling interest:
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PAYCHECK PROTECTION PROGRAM LOAN |
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Loans Payable [Abstract] | |
PAYCHECK PROTECTION PROGRAM LOAN | The Coronavirus Aid, Relief, and Economic Security (CARES) Act created the Paycheck Protection Program (PPP) to provide certain small businesses with liquidity to support their operations during the COVID-19 pandemic. The PPP is a loan program designed to provide a direct incentive for small businesses to keep their employees on payroll.
The loans have a 1% fixed interest rate and are due in two years with payment deferred for the first six months. However, they are eligible for forgiveness (in full or in part, including any accrued interest) under certain conditions and are subject to audit by the U.S. government. The loans will be forgiven if the loan proceeds were used for eligible purposes, including payroll, benefits, rent and utilities, and the Company maintained its payroll levels for eight weeks.
In May 2020, the Company received loan proceeds in the amount of approximately $121 under the PPP. The Company accounted for the PPP loan as a financial liability in accordance with Accounting Standards Codification (ASC) 470 Debt after considering the following aspects: (1) the legal form of a PPP loan is debt regardless of whether the Company expects the loan to be forgiven and (2) given the degree of uncertainty and complexity surrounding the PPP loan forgiveness process, this may impact a Company’s initial assessment.
Under ASC 470, the Company recognizes a liability for the full amount of PPP proceeds received and accrues interest over the term of the loan. No additional interest was imputed at a market rate because the guidance on imputing interest in ASC 835-30 excludes transactions where interest rates are prescribed by a government agency. If any amount is ultimately forgiven (i.e., the Company is legally released from being the loan’s primary obligor in accordance with ASC 405-20), income from the extinguishment of the liability would be recognized in the income statement as a gain on loan extinguishment. The Company intended to use the proceeds for purposes consistent with the PPP. Hence, the Company expects that its use of the loan proceeds will meet the conditions for forgiveness of the loan.
During fiscal 2021, the Company received approval from the Small Business Administration (SBA) that the full loan of $121 had been forgiven. The forgiveness of the PPP loan has been included as a separate line under disclosure note Other income, net.
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation - Trio-Tech International (the “Company” or “TTI” hereafter) was incorporated in fiscal 1958 under the laws of the State of California. TTI provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia. In addition, TTI operates testing facilities in the United States. The Company also designs, develops, manufactures and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components. In fiscal 2021, 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, Ireland and China as follows:
* 100% owned by Trio-Tech International Pte. Ltd.
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP’’). The basis of accounting differs from that used in the statutory financial statements of the Company’s subsidiaries and equity investee companies, which are prepared in accordance with the accounting principles generally accepted in their respective countries of incorporation. In the opinion of management, the consolidated financial statements have reflected all costs incurred by the Company and its subsidiaries in operating the business.
All dollar amounts in the consolidated financial statements and in the notes herein are presented in thousands of United States dollars (US$’000) unless otherwise designated.
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Liquidity | Liquidity – The Company incurred net loss attributable to common shareholders of $591 and net income attributable to common shareholders of $878 for fiscal years 2021 and 2020, respectively. |
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Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions — The U.S. dollar is the functional currency of the U.S. parent company. The Singapore dollar, the national currency of Singapore, is the primary currency of the economic environment in which the operations in Singapore are conducted. The Company also has business entities in Malaysia, Thailand, China and Indonesia of which the Malaysian ringgit (“RM”), Thai baht, Chinese renminbi (“RMB”) and Indonesian rupiah, are the national currencies. The Company uses the U.S. dollar for financial reporting purposes.
The Company translates assets and liabilities of its subsidiaries outside the U.S. into U.S. dollars using the rate of exchange prevailing at the fiscal year end, and the consolidated statements of operations and comprehensive income or loss is translated at average rates during the reporting period. Adjustments resulting from the translation of the subsidiaries’ financial statements from foreign currencies into U.S. dollars are recorded in shareholders' equity as part of accumulated other comprehensive gain - translation adjustments. Gains or losses resulting from transactions denominated in currencies other than functional currencies of the Company’s subsidiaries are reflected in income for the reporting period.
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Use of Estimates | Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Among the more significant estimates included in these consolidated financial statements are the estimated allowance for doubtful account receivables, reserve for obsolete inventory, reserve for warranty, impairments and the deferred income tax asset allowance. Actual results could materially differ from those estimates.
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Revenue Recognition | Revenue Recognition — The Company adopted ASU No. 2014-09, ASC Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”). This standard update outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers.
We apply a five-step approach as defined in ASC Topic 606 in determining the amount and timing of revenue to be recognized: (1) identifying the contract with customer; (2) identifying the performance obligations in the contracts; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied.
Revenue derived from testing services is recognized when testing services are rendered. Revenue generated from sale of products in the manufacturing and distribution segments are recognized when persuasive evidence of an arrangement exists, delivery of the products has occurred, customer acceptance has been obtained (which means the significant risks and rewards of ownership have been transferred to the customer), the price is fixed or determinable and collectability is reasonably assured. Certain customers can request for installation and training services to be performed for certain products sold in the manufacturing segment. These services are mainly for helping customers with the test runs of the machines sold and are considered a separate performance obligation. Such services can be provided by other entities as well and these do not significantly modify the product. The Company recognizes the revenue at point in time when the Company has satisfied its performance obligation.
In the real estate segment: (1) revenue from property development is earned and recognized on the earlier of the dates when the underlying property is sold or upon the maturity of the agreement; if this amount is uncollectible, the agreement empowers the repossession of the property, and (2) rental revenue is recognized on a straight-line basis over the terms of the respective leases. This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue is commenced when the tenant assumes possession of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements.
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GST / Indirect Taxes | GST / Indirect Taxes — The Company’s policy is to present taxes collected from customers and remitted to governmental authorities on a net basis. The Company records the amounts collected as a current liability and relieves such liability upon remittance to the taxing authority without impacting revenues or expenses.
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Trade accounts Receivable and Allowance for Doubtful Accounts | Trade Account Receivables and Allowance for Doubtful Accounts — During the normal course of business, the Company extends unsecured credit to its customers in all segments. Typically, credit terms require payment to be made between 30 to 90 days from the date of the sale. The Company generally does not require collateral from our customers.
The Company’s management considers the following factors when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. The Company includes any account balances that are determined to be uncollectible, along with a general reserve, in the overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available to management, the Company believed that its allowance for doubtful accounts was adequate as of June 30, 2021 and 2020.
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Warranty Costs | Warranty Costs — The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded in its manufacturing segment. The Company estimates 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.
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Cash and Cash Equivalents | Cash and Cash Equivalents — The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
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Term Deposits and Restricted Term Deposits | Term Deposits — Term deposits consist of bank balances and interest-bearing deposits having maturities of 3 to 6 months.
Restricted Term Deposits — The Company held certain term deposits in the Singapore and Malaysia operations which were considered restricted, as they were held as security against certain facilities granted by the financial institutions.
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Inventories | Inventories — Inventories in the Company’s manufacturing and distribution segments, consisting principally of raw materials, works in progress, and finished goods, are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or market value. The semiconductor industry is characterized by rapid technological change, short-term customer commitments and rapid fluctuations in demand. Provisions for estimated excess and obsolete inventory are based on our regular reviews of inventory quantities on hand and the latest forecasts of product demand and production requirements from our customers. Inventories are written down for not-saleable, excess or obsolete raw materials, works-in-process and finished goods by charging such write-downs to cost of sales. In addition to write-downs based on newly introduced parts, statistics and judgments are used for assessing provisions of the remaining inventory based on salability and obsolescence.
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Property, Plant and Equipment & Investment Property | Property, Plant and Equipment and Investment Properties — Property, plant and equipment, and investment properties are stated at cost, less accumulated depreciation and amortization. Depreciation is provided for over the estimated useful lives of the assets using the straight-line method. Amortization of leasehold improvements is provided for over the lease terms or the estimated useful lives of the assets, whichever is shorter, using the straight-line method.
Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and improvements to the assets are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the consolidated statements of operations and comprehensive income or loss.
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Long-Lived Assets and Impairment | Long-Lived Assets and Impairment – The Company’s business requires heavy investment in manufacturing facilities and equipment that are technologically advanced but can quickly become significantly underutilized or rendered obsolete by rapid changes in demand.
The Company evaluates the long-lived assets, including property, plant and equipment and investment property, for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for our business, significant negative industry or economic trends, and a significant decline in the stock price for a sustained period of time. Impairment is recognized based on the difference between the fair value of the asset and its carrying value, and fair value is generally measured based on discounted cash flow analysis, if there is significant adverse change.
The Company applies the provisions of ASC Topic 360, Accounting for the Impairment or Disposal of Long-Lived Assets (“ASC Topic 360”), to property, plant and equipment. ASC Topic 360 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value.
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Leases | Leases - Company as Lessee
Accounting Standards Codification Topic 842 ("ASC Topic 842") introduced 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 Company applies the guidance in ASC Topic 842 to its 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, the 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 under the noncurrent asset portion of our consolidated balance sheets and under this current portion and noncurrent liabilities portion of 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 related lease. Finance leases are included in property, plant and equipment under the noncurrent asset portion of our consolidated balance sheets and under the current portion and noncurrent liabilities portion of our consolidated balance sheets.
The Company has elected the practical expedient within ASC Topic 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.
Leases - Company as Lessor
All of the leases under which the Company is the lessor will continue to be classified as operating leases and sales-type lease under the new standard The new standard did not have a material effect on our consolidated financial statements and will not have a significant change in our leasing activities.
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Comprehensive Income or Loss | Comprehensive Income or Loss — ASC Topic 220, Reporting Comprehensive Income, (“ASC Topic 220”), establishes standards for reporting and presentation of comprehensive income or loss and its components in a full set of general-purpose consolidated financial statements. The Company has chosen to report comprehensive income or loss in the statements of operations. Comprehensive income or loss is comprised of net income or loss and all changes to shareholders’ equity except those due to investments by owners and distributions to owners.
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Income Taxes | Income Taxes — The Company accounts for income taxes using the liability method in accordance with ASC Topic 740, Accounting for Income Taxes (“ASC Topic 740”). ASC Topic 740 requires an entity to recognize deferred tax liabilities and assets. Deferred tax assets and liabilities are recognized for the future tax consequence attributable to the difference between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements, which will result in taxable or deductible amounts in future years. Further, the effects of enacted tax laws or rate changes are included as part of deferred tax expenses or benefits in the period that covers the enactment date.
The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The Company recognizes potential liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result.
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Retained Earnings | Retained Earnings — It is the intention of the Company to reinvest earnings of its foreign subsidiaries in the operations of those subsidiaries. These taxes are undeterminable at this time. The amount of earnings retained in subsidiaries was $16,683 and $15,585 at June 30, 2021 and 2020, respectively.
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Research and Development Costs | Research and Development Costs — The Company incurred research and development costs of $357 and $355 in fiscal year 2021 and in fiscal year 2020, respectively, which were charged to operating expenses as incurred.
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Stock Based Compensation | Stock-based compensation — The Company calculates compensation expense related to stock option awards made to employees and directors based on the fair value of stock-based awards on the date of grant. The Company determines the grant date fair value of our stock option awards using the Black-Scholes option pricing model and for awards without performance condition the related stock-based compensation is recognized over the period in which a participant is required to provide service in exchange for the stock-based award, which is generally four years. The Company recognizes stock-based compensation expense in the consolidated statements of shareholders' equity based on awards ultimately expected to vest. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates.
Determining the fair value of stock-based awards at the grant date requires significant judgement. The determination of the grant date fair value of stock-based awards using the Black-Scholes option-pricing model is affected by our estimated common stock fair value as well as other subjective assumptions including the expected term of the awards, the expected volatility over the expected term of the awards, expected dividend yield and risk-free interest rates. The assumptions used in our option-pricing model represent management’s best estimates and are as follows:
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Earnings per Share | Earnings per Share — Computation of basic earnings per share is conducted by dividing net income available to common shares (numerator) by the weighted average number of common shares outstanding (denominator) during a reporting period. Computation of diluted earnings per share gives effect to all dilutive potential common shares outstanding during a reporting period. In computing diluted earnings per share, the average market price of common shares for a reporting period is used in determining the number of shares assumed to be purchased from the exercise of stock options.
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Fair Values of Financial Instruments | Fair Values of Financial Instruments — Carrying values of trade account receivables, accounts payable, accrued expenses, and term deposits approximate their fair value due to their short-term maturities. Carrying values of the Company’s lines of credit and long-term debt are considered to approximate their fair value because the interest rates associated with the lines of credit and long-term debt are adjustable in accordance with market situations when the Company tries to borrow funds with similar terms and remaining maturities. See Note 16 for detailed discussion of the fair value measurement of financial instruments.
ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The financial assets and financial liabilities that require recognition under the guidance include available-for-sale investments, employee deferred compensation plan and foreign currency derivatives. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. As such, fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. The hierarchy is broken down into three levels based on the reliability of inputs as follows:
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Concentration of Credit Risk | Concentration of Credit Risk — Financial instruments that subject the Company to credit risk compose trade account receivables. The Company performs ongoing credit evaluations of its customers for potential credit losses. The Company generally does not require collateral. The Company believes that its credit policies do not result in significant adverse risk and historically it has not experienced significant credit related losses.
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Investments | Investments — The Company (a) evaluates the sufficiency of the total equity at risk, (b) reviews the voting rights and decision-making authority of the equity investment holders as a group, and whether there are any guaranteed returns, protection against losses, or capping of residual returns within the group, and (c) establishes whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. The Company would consolidate an investment that is determined to be a VIE if it was the primary beneficiary. The primary beneficiary of a VIE is determined by a primarily qualitative approach, whereby the variable interest holder, if any, has the power to direct the VIE’s most significant activities and is the primary beneficiary. A new accounting standard became effective and changed the method by which the primary beneficiary of a VIE is determined. Through a primarily qualitative approach, the variable interest holder, who has the power to direct the VIE’s most significant activities is determined to be the primary beneficiary. To the extent that the investment does not qualify as VIE, the Company further assesses the existence of a controlling financial interest under a voting interest model to determine whether the investment should be consolidated.
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Equity Method | Equity Method — The Company analyzes its investments to determine if they should be accounted for using the equity method. Management evaluates both Common Stock and in-substance Common Stock to determine whether they give the Company the ability to exercise significant influence over operating and financial policies of the investment even though the Company holds less than 50% of the Common Stock and in-substance Common Stock. The net income of the investment, if any, will be reported as “Equity in earnings of unconsolidated joint ventures, net of tax” in the Company’s consolidated statements of operations and comprehensive income.
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Cost Method | Cost Method — Investee companies not accounted for under the consolidation or the equity method of accounting are accounted for under the cost method of accounting. Under this method, the Company’s share of the earnings or losses of such Investee companies is not included in the consolidated balance sheet or statements of operations and comprehensive income or loss. However, impairment charges are recognized in the consolidated statements of operations and comprehensive income or loss. If circumstances suggest that the value of the investee Company has subsequently recovered, such recovery is not recorded.
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Loan Receivables from Property Development Projects | Loan Receivables from Property Development Projects — The loan receivables from property development projects are classified as current asset, carried at face value, and are individually evaluated for impairment. The allowance for loan losses reflects management’s best estimate of probable losses determined principally on the basis of historical experience and specific allowances for known loan accounts. All loans or portions thereof deemed to be uncollectible or to require an excessive collection cost are written off to the allowance for losses.
Interest income on the loan receivables from property development projects are recognized on an accrual basis. Discounts and premiums on loans are amortized to income using the interest method over the remaining period to contractual maturity. The amortization of discounts into income is discontinued on loans that are contractually 90 days past due or when collection of interest appears doubtful.
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Contingent liabilities | Contingent Liabilities — Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein.
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed.
Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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RESTATEMENTS (Tables) |
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Restatements |
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TERM DEPOSITS (Tables) |
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Term deposits |
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TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) |
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LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Tables) |
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Companys loans receivable from property development projects |
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INVENTORIES (Tables) |
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INVESTMENT PROPERTIES (Tables) |
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Companys investment in the property based on the exchange rate | The following table presents the Company’s investment in properties in China as of June 30, 2021. The exchange rate is based on the market rate as of June 30, 2021.
The following table presents the Company’s investment in properties in China as of June 30, 2020. The exchange rate is based on the market rate as of June 30, 2020.
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
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Schedule of property, plant and equipment |
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OTHER ASSETS (Tables) |
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*Down payment for purchase of investment properties included:
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LINES OF CREDIT (Tables) |
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Lines of credit | As of June 30, 2021, the Company had certain lines of credit that are collateralized by restricted deposits.
As of June 30, 2020, the Company had certain lines of credit that are collateralized by restricted deposits.
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ACCRUED EXPENSES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses |
|
WARRANTY ACCRUAL (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty Accrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty liability |
|
BANK LOANS PAYABLE (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Payable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank loans payable |
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Future minimum payments | Future minimum payments (excluding interest) as of June 30, 2021, were as follows:
Future minimum payments (excluding interest) as of June 30, 2020, were as follows:
|
CONCENTRATION OF CUSTOMERS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of customers |
|
BUSINESS SEGMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business segments |
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OTHER INCOME, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income |
|
GOVERNMENT GRANTS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||
Government Grants | ||||||||||||||||||||||||||||
Government grants |
|
INCOME TAXES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before provision for income taxes |
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Components of income tax provision (benefits) |
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Reconciliation of income tax rate |
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Deferred income tax assets (liabilities) |
|
REVENUE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract assets and liabilities |
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EARNINGS PER SHARE (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the weighted average shares |
|
STOCK OPTIONS (RESTATED) (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value weighted average assumptions |
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2017 Employee Plan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option activities |
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Company's non-vested employee stock options |
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2007 Employee Plan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option activities | A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2021, is presented as follows:
A summary of option activities under the 2007 Employee Plan during the twelve-month period ended June 30, 2020, is presented as follows:
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Company's non-vested employee stock options | A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2021, is presented below:
A summary of the status of the Company’s non-vested employee stock options during the twelve months ended June 30, 2020, is presented below:
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2017 Directors Equity Incentive Plan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option activities | A summary of option activities under the 2017 Directors Plan during the twelve months ended June 30, 2021, is presented as follows:
A summary of option activities under the 2017 Directors Plan during the twelve months ended June 30, 2020, is presented as follows:
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2007 Directors Equity Incentive Plan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option activities | A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2021, is presented as follows:
A summary of option activities under the 2007 Directors Plan during the twelve months ended June 30, 2020, is presented as follows:
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LEASES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future minimum rental income | Future minimum rental income in China and Thailand to be received from fiscal year 2022 to fiscal year 2023 on non-cancellable operating leases is contractually due as of June 30, 2021, as follows:
Future minimum rental income in China and Thailand to be received from fiscal year 2021 to fiscal year 2022 on non-cancellable operating leases is contractually due as of June 30, 2020, as follows:
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Supplemental lease information |
Supplemental balance sheet information related to leases is as follows (in thousands):
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Lease cost |
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Other information related to leases |
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Maturities of lease liabilities | As of June 30, 2021, the maturities of the Company's operating and finance lease liabilities were as follow:
As of June 30, 2020, the maturities of the Company's operating and finance lease liabilities were as follows:
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NON-CONTROLLING INTEREST (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest |
|
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) |
Jun. 30, 2021 |
---|---|
Express Test Corporation (Dormant) | |
Ownership | 100.00% |
Trio-Tech Reliability Services (Dormant) | |
Ownership | 100.00% |
KTS Incorporated, dba Universal Systems (Dormant) | |
Ownership | 100.00% |
European Electronic Test Centre (Dormant) | |
Ownership | 100.00% |
Trio-Tech International Pte. Ltd | |
Ownership | 100.00% |
Universal (Far East) Pte. Ltd | |
Ownership | 100.00% |
Trio-Tech International (Thailand) Co. Ltd | |
Ownership | 100.00% |
Trio-Tech (Bangkok) Co. Ltd. | |
Ownership | 100.00% |
Trio-Tech (Malaysia) Sdn. Bhd. (55% owned by Trio-Tech International Pte. Ltd.) | |
Ownership | 55.00% |
Trio-Tech (Kuala Lumpur) Sdn. Bhd. (100% owned by Trio-Tech Malaysia Sdn. Bhd.) | |
Ownership | 55.00% |
Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.) | |
Ownership | 76.00% |
Trio-Tech (SIP) Co. Ltd. | |
Ownership | 100.00% |
Trio-Tech (Chongqing) Co. Ltd. SHI International Pte. Ltd. | |
Ownership | 100.00% |
SHI International Pte. Ltd. (55% owned by Trio-Tech International Pte. Ltd.) | |
Ownership | 55.00% |
PT SHI Indonesia (100% owned by SHI International Pte. Ltd) | |
Ownership | 55.00% |
Trio-Tech (Tianjin) Co. Ltd. | |
Ownership | 100.00% |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Net Income Attributable to Trio-Tech International Common Shareholders | $ (591) | $ 878 |
Earnings retained in subsidiaries | 16,683 | 15,585 |
Research and development costs | $ 357 | $ 355 |
RESTATEMENTS (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2019 |
[1] | |||
---|---|---|---|---|---|---|---|
Paid-in capital | $ 4,233 | $ 3,984 | [1] | ||||
Accumulated retained earnings | 6,824 | 7,415 | [1] | ||||
Total Trio-Tech International shareholders' equity | 26,053 | 23,966 | [1] | ||||
TOTAL EQUITY | $ 25,634 | 25,146 | [1] | $ 24,861 | |||
Previously Reported | |||||||
Paid-in capital | 3,363 | ||||||
Accumulated retained earnings | 8,036 | ||||||
Total Trio-Tech International shareholders' equity | 23,966 | ||||||
TOTAL EQUITY | $ 25,146 | ||||||
|
RESTATEMENTS (Details 1) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
|||
---|---|---|---|---|---|
Accumulated retained earnings | $ 6,824 | $ 7,415 | [1] | ||
Paid-in capital | $ 4,233 | 3,984 | [1] | ||
Previously Reported | |||||
Accumulated retained earnings | 8,036 | ||||
Paid-in capital | $ 3,363 | ||||
|
RESTATEMENTS (Details 2) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||
General and administrative | $ 6,938 | $ 7,064 | |||
Total operating expenses | 7,740 | 8,213 | |||
Loss from Operations | (70) | (947) | |||
Income from Continuing Operations before Income Taxes | (899) | 1,107 | |||
Income from continuing operations before non-controlling interests, net of tax | (1,127) | 1,119 | |||
NET (LOSS) / INCOME | (1,155) | 1,116 | [1] | ||
Net Income Attributable to Trio-Tech International Common Shareholders | $ (591) | $ 878 | |||
Basic earnings per share from continuing operations attributable to Trio-Tech International | $ (.16) | $ .24 | |||
Diluted earnings per share from continuing operations attributable to Trio-Tech International | $ (.15) | $ .24 | |||
Previously Reported | |||||
General and administrative | $ 6,976 | ||||
Total operating expenses | 8,125 | ||||
Loss from Operations | (859) | ||||
Income from Continuing Operations before Income Taxes | 1,195 | ||||
Income from continuing operations before non-controlling interests, net of tax | 1,207 | ||||
NET (LOSS) / INCOME | 1,204 | ||||
Net Income Attributable to Trio-Tech International Common Shareholders | $ 966 | ||||
Basic earnings per share from continuing operations attributable to Trio-Tech International | $ .26 | ||||
Diluted earnings per share from continuing operations attributable to Trio-Tech International | $ .26 | ||||
|
TERM DEPOSITS (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|
Deposits [Abstract] | ||
Short-term deposits | $ 6,353 | $ 7,028 |
Currency translation effect on short-term deposits | 298 | (190) |
Total short-term deposits | 6,651 | 6,838 |
Restricted term deposits | 1,682 | 1,712 |
Currency translation effect on restricted term deposits | 59 | (52) |
Total restricted term deposits | 1,741 | 1,660 |
Total term deposits | $ 8,392 | $ 8,498 |
TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Beginning | $ 314 | $ 263 |
Additions charged to expenses | 5 | 351 |
Recovered | (14) | (284) |
Write-off | (16) | (9) |
Currency translation effect | 22 | (7) |
Ending | $ 311 | $ 314 |
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (Details) $ in Thousands |
Jun. 30, 2021
USD ($)
|
---|---|
Jiang Huai | |
Short-term loan receivables | |
Short-term | $ 309 |
Less: allowance for doubtful receivables | (309) |
Short-term loan receivables, net | 0 |
Jiang Huai | Yuan 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 | Yuan RMB | |
Short-term loan receivables | |
Short-term | 5,000 |
Less: allowance for doubtful receivables | (5,000) |
Short-term loan receivables, net | 0 |
Jun Zhou Zhi Ye | USD | |
Short-term loan receivables | |
Short-term | 773 |
Less: allowance for doubtful receivables | (773) |
Short-term loan receivables, net | $ 0 |
INVENTORIES (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
|||
---|---|---|---|---|---|
Inventory Disclosure [Abstract] | |||||
Raw materials | $ 1,152 | $ 1,281 | |||
Work in progress | 1,218 | 968 | |||
Finished goods | 325 | 422 | |||
Less: provision for obsolete inventories | (679) | (678) | |||
Currency translation effect | 64 | (71) | |||
Inventory net | $ 2,080 | $ 1,922 | [1] | ||
|
INVENTORIES (Details 1) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Inventory Disclosure [Abstract] | ||
Beginning | $ 678 | $ 673 |
Additions charged to expenses | 13 | 26 |
Usage - disposition | (28) | (8) |
Currency translation effect | 16 | (13) |
Ending | $ 679 | $ 678 |
INVESTMENT PROPERTIES (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|
MaoYe | ||
Investment amount | $ 894 | $ 894 |
Currency translation | (87) | (87) |
Reclassified as "Assets held for sale" | (807) | (807) |
Reclassification from "Assets held for sale" | 301 | 301 |
Net investment in property | 301 | 301 |
MaoYe | Yuan RMB | ||
Investment amount | 5,554 | 5,554 |
Currency translation | 0 | 0 |
Reclassified as "Assets held for sale" | (5,554) | (5,554) |
Reclassification from "Assets held for sale" | 2,024 | 2,024 |
Net investment in property | 2,024 | 2,024 |
Jiang Huai | ||
Investment amount | 580 | 580 |
Net investment in property | 580 | |
Jiang Huai | Yuan RMB | ||
Investment amount | 3,600 | 3,600 |
Net investment in property | 3,600 | |
Fu Li | ||
Investment amount | 648 | 648 |
Currency translation | (36) | (166) |
Gross investment in rental property | 1,363 | |
Net investment in property | 673 | |
Fu Li | Yuan RMB | ||
Investment amount | 4,025 | 4,025 |
Currency translation | 0 | 0 |
Gross investment in rental property | 9,649 | |
Net investment in property | 4,765 | |
China | ||
Gross investment in rental property | 1,493 | |
Accumulated depreciation on rental property | (1,079) | (940) |
Reclassified as "Assets held for sale" | 410 | 410 |
Reclassification from "Assets held for sale" | (143) | (143) |
Net investment in property | 681 | 690 |
China | Yuan RMB | ||
Gross investment in rental property | 9,649 | |
Accumulated depreciation on rental property | (7,040) | (6,558) |
Reclassified as "Assets held for sale" | 2,822 | 2,822 |
Reclassification from "Assets held for sale" | (1,029) | (1,029) |
Net investment in property | $ 4,402 | $ 4,884 |
INVESTMENT PROPERTIES (Details Narrative) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
MaoYe | ||
Investment amount | $ 894 | $ 894 |
Rental income | 9 | 32 |
Depreciation expenses | 15 | 13 |
MaoYe | Yuan RMB | ||
Investment amount | 5,554 | 5,554 |
Jiang Huai | ||
Investment amount | 580 | 580 |
Rental income | 0 | 0 |
Depreciation expenses | 27 | 26 |
Jiang Huai | Yuan RMB | ||
Investment amount | 3,600 | 3,600 |
Fu Li | ||
Investment amount | 648 | 648 |
Rental income | 19 | 30 |
Depreciation expenses | 30 | 28 |
Fu Li | Yuan RMB | ||
Investment amount | 4,025 | 4,025 |
China | ||
Rental income | 62 | 28 |
Depreciation expenses | $ 67 | $ 72 |
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||
Property, plant and equipment, gross | $ 40,702 | $ 40,050 | |||
Accumulated depreciation | (28,751) | (27,148) | |||
Accumulated amortization on equipment under capital leases | (1,199) | (719) | |||
Total accumulated amortization depreciation | (29,950) | (27,867) | |||
Property, plant and equipment before currency translation effect | 10,752 | 12,183 | |||
Currency translation effect | (1,221) | (1,873) | |||
Property, plant and equipment, net | 9,531 | 10,310 | [1] | ||
Building and improvements | |||||
Property, plant and equipment, gross | $ 5,141 | 5,102 | |||
Building and improvements | Minimum | |||||
Estimated useful life in years | 3 years | ||||
Building and improvements | Maximum | |||||
Estimated useful life in years | 20 years | ||||
Leasehold improvements | |||||
Property, plant and equipment, gross | $ 6,174 | 6,170 | |||
Leasehold improvements | Minimum | |||||
Estimated useful life in years | 3 years | ||||
Leasehold improvements | Maximum | |||||
Estimated useful life in years | 27 years | ||||
Machinery and equipment | |||||
Property, plant and equipment, gross | $ 26,804 | 1,134 | |||
Machinery and equipment | Minimum | |||||
Estimated useful life in years | 3 years | ||||
Machinery and equipment | Maximum | |||||
Estimated useful life in years | 7 years | ||||
Furniture and fixtures | |||||
Property, plant and equipment, gross | $ 1,170 | 26,578 | |||
Furniture and fixtures | Minimum | |||||
Estimated useful life in years | 3 years | ||||
Furniture and fixtures | Maximum | |||||
Estimated useful life in years | 5 years | ||||
Equipment under finance leases | |||||
Property, plant and equipment, gross | $ 1,413 | $ 1,066 | |||
Equipment under finance leases | Minimum | |||||
Estimated useful life in years | 3 years | ||||
Equipment under finance leases | Maximum | |||||
Estimated useful life in years | 5 years | ||||
|
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expenses | $ 2,419 | $ 2,341 |
OTHER ASSETS (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|
Other Assets [Abstract] | ||
Down payment for purchase of investment properties | $ 0 | $ 1,645 |
Down payment for purchase of property, plant and equipment | 372 | 8 |
Deposit for rental and utilities | 160 | 171 |
Currency translation effect | (270) | (215) |
Ending balance | $ 262 | $ 1,609 |
OTHER ASSETS (Details 1) $ in Thousands |
Jun. 30, 2021
USD ($)
|
|||||
---|---|---|---|---|---|---|
Yuan RMB | ||||||
Original investment | $ 10,000 | |||||
Less: management fee | (5,000) | |||||
Net investment | 5,000 | |||||
Less: share of loss on joint venture | (137) | |||||
Net investment as down payment | 4,863 | [1] | ||||
Loans receivable | 5,000 | |||||
Interest receivable | 1,250 | |||||
Less: impairment of interest | (906) | |||||
Transferred to down payment | 5,344 | [2] | ||||
*Down payment for purchase of investment properties | 10,207 | |||||
Less: Provision of Impairment loss on other assets | (10,207) | |||||
Down Payment for Purchase of Investment Properties | 0 | |||||
USD | ||||||
Original investment | 1,606 | |||||
Less: management fee | (803) | |||||
Net investment | 803 | |||||
Less: share of loss on joint venture | (22) | |||||
Net investment as down payment | 781 | [1] | ||||
Loans receivable | 814 | |||||
Interest receivable | 200 | |||||
Less: impairment of interest | (150) | |||||
Transferred to down payment | 864 | [2] | ||||
*Down payment for purchase of investment properties | 1,645 | |||||
Less: Provision of Impairment loss on other assets | (1,645) | |||||
Down Payment for Purchase of Investment Properties | $ 0 | |||||
|
LINES OF CREDIT (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
TrioTech Intl Credit Facility | ||
Type of facility | Lines of Credit | |
Credit limitation | $ 4,237 | $ 4,806 |
Unused credit | $ 4,237 | 4,806 |
TrioTech Intl Credit Facility | Minimum | ||
Interest rate | 1.85% | |
TrioTech Intl Credit Facility | Maximum | ||
Interest rate | 5.50% | |
Universal (Far East) Pte. Ltd | ||
Type of facility | Lines of Credit | |
Credit limitation | $ 1,115 | 359 |
Unused credit | $ 1,043 | 187 |
Universal (Far East) Pte. Ltd | Minimum | ||
Interest rate | 1.85% | |
Universal (Far East) Pte. Ltd | Maximum | ||
Interest rate | 5.50% | |
TrioTech Malaysia | ||
Type of facility | Revolving Credit | |
Credit limitation | $ 361 | 350 |
Unused credit | $ 361 | $ 350 |
TrioTech Malaysia | Minimum | ||
Interest rate | 2.00% | |
TrioTech Malaysia | Maximum | ||
Interest rate | 2.00% |
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|
Payables and Accruals [Abstract] | ||
Payroll and related costs | $ 1,362 | $ 1,185 |
Commissions | 51 | 104 |
Customer deposits | 45 | 30 |
Legal and audit | 321 | 315 |
Sales tax | 9 | 19 |
Utilities | 91 | 80 |
Warranty | 14 | 12 |
Accrued purchase of materials and property, plant and equipment | 144 | 186 |
Provision for re-instatement | 290 | 300 |
Deferred income | 67 | 88 |
Contract liabilities | 628 | 476 |
Other accrued expenses | 279 | 287 |
Currency translation effect | 62 | (77) |
Total | $ 3,363 | $ 3,005 |
WARRANTY ACCRUAL (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Warranty Accrual | ||
Beginning | $ 12 | $ 39 |
Additions charged to cost and expenses | 7 | 1 |
Utilization / reversal | (4) | (27) |
Currency translation effect | (1) | (1) |
Ending | $ 14 | $ 12 |
BANK LOANS PAYABLE (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
|||
---|---|---|---|---|---|
Bank loan payable | $ 2,060 | $ 2,206 | |||
Current portion of bank loan payable | 428 | 384 | |||
Currency translation effect on short-term portion of bank loan | 11 | (14) | |||
Current portion of bank loan payable | 439 | 370 | [1] | ||
Long term portion of bank loan payable | 1,564 | 1,911 | |||
Currency translation effect on long-term portion of bank loan | 57 | (75) | |||
Long term portion of bank loans payable | 1,621 | 1,836 | [1] | ||
Commercial Bank Note 1 | |||||
Bank loan payable | 1,885 | 2,206 | |||
Commercial Bank Note 2 | |||||
Bank loan payable | $ 175 | $ 0 | |||
|
BANK LOANS PAYABLE (Details 1) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|
Loans Payable [Abstract] | ||
2021 | $ 0 | $ 370 |
2022 | 439 | 384 |
2023 | 457 | 400 |
2024 | 462 | 403 |
2025 | 208 | 158 |
2026 | 171 | 0 |
Thereafter | 323 | 491 |
Total obligations and commitments | $ 2,060 | $ 2,206 |
COMMITMENTS AND CONTINGENCIES (Details Narrative) $ in Thousands |
Jun. 30, 2021
USD ($)
|
---|---|
Malaysia US | |
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 93 |
Malaysia | Ringgit RM | |
Capital commitments for the purchase of equipment and other related infrastructure costs | $ 388 |
CONCENTRATION OF CUSTOMERS (Details) |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Sales | Customer A | ||
Concentration risk | 37.70% | 38.40% |
Sales | Customer B | ||
Concentration risk | 9.70% | 17.60% |
Account Receivable | Customer A | ||
Concentration risk | 34.70% | 40.60% |
Account Receivable | Customer B | ||
Concentration risk | 11.80% | 6.30% |
BUSINESS SEGMENTS (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Net revenue | $ 32,462 | $ 34,465 |
Operating Income (Loss) | (70) | (947) |
Total assets | 38,306 | 35,660 |
Depreciation and amortization | 3,059 | 3,100 |
Capital expenditures | 1,112 | 1,017 |
Manufacturing | ||
Net revenue | 13,151 | 11,605 |
Operating Income (Loss) | 376 | (326) |
Total assets | 13,622 | 9,807 |
Depreciation and amortization | 411 | 346 |
Capital expenditures | 350 | 134 |
Testing Services | ||
Net revenue | 13,846 | 14,840 |
Operating Income (Loss) | (997) | (1,040) |
Total assets | 21,099 | 21,086 |
Depreciation and amortization | 2,570 | 2,578 |
Capital expenditures | 762 | 834 |
Distribution | ||
Net revenue | 5,437 | 7,958 |
Operating Income (Loss) | 657 | 751 |
Total assets | 1,156 | 875 |
Depreciation and amortization | 4 | 100 |
Capital expenditures | 0 | 0 |
Real Estate | ||
Net revenue | 28 | 62 |
Operating Income (Loss) | (116) | (97) |
Total assets | 2,070 | 3,587 |
Depreciation and amortization | 74 | 76 |
Capital expenditures | 0 | 0 |
Fabrication Services | ||
Net revenue | 0 | 0 |
Operating Income (Loss) | 0 | 0 |
Total assets | 0 | 27 |
Depreciation and amortization | 0 | 0 |
Capital expenditures | 0 | 0 |
Corporate And Unallocated | ||
Net revenue | 0 | 0 |
Operating Income (Loss) | (10) | (235) |
Total assets | 359 | 278 |
Depreciation and amortization | 0 | 0 |
Capital expenditures | $ 0 | $ 0 |
OTHER INCOME, NET (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Other Income and Expenses [Abstract] | ||
Interest income | $ 118 | $ 177 |
Other rental income | 100 | 110 |
Exchange gain / (loss) | (69) | (35) |
Bad debt recovery | 9 | (59) |
Extinguishment of PPP loan | (121) | 0 |
Dividend Income | 32 | 0 |
Other miscellaneous income | 52 | 0 |
Total | $ 363 | $ 334 |
GOVERNMENT GRANTS (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Government Grants | ||
Government Grants | $ 514 | $ 778 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income before provision for income taxes | $ (899) | $ 1,107 |
United States | ||
Income before provision for income taxes | (53) | (740) |
International | ||
Income before provision for income taxes | $ (846) | $ 1,847 |
INCOME TAXES (Details 1) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Current | ||
Federal | $ 13 | $ (1) |
State | 2 | 2 |
Foreign | 352 | 212 |
Total | 367 | 213 |
Deferred | ||
Federal | 0 | 0 |
State | 0 | 0 |
Foreign | (139) | (225) |
Total | (139) | (225) |
Total provision | $ 228 | $ (12) |
INCOME TAXES (Details 2) |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Statutory federal tax rate | 21.00% | 21.00% |
State taxes, net of federal benefit | (0.41%) | (0.50%) |
Permanent items and credits | 4.10% | 13.95% |
Foreign rate differential | 74.02% | 33.86% |
Other | 0.67% | 2.14% |
Changes in valuation allowance | (74.02%) | (3.73%) |
Tax reform | 0.00% | 0.00% |
Effective rate | 25.36% | (1.00%) |
INCOME TAXES (Details 3) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|
Deferred tax assets: | ||
Net operating losses and credits | $ 782 | $ 487 |
Inventory valuation | 144 | 121 |
Provision for bad debts | 0 | 785 |
Accrued vacation | 12 | 37 |
Accrued expenses | 134 | 188 |
Fixed asset basis | 3 | 1 |
Investment in subsidiaries | 77 | 277 |
Unrealized gain | 4 | 24 |
Other | 12 | 51 |
Total deferred tax assets | 1,168 | 1,971 |
Deferred tax liabilities: | ||
Depreciation | (329) | (359) |
Others | 0 | (76) |
Total deferred income tax liabilities | (329) | (435) |
Subtotal | 839 | 1,536 |
Valuation allowance | (622) | (1,289) |
Net deferred tax assets | 217 | 247 |
Presented as follows in the balance sheets: | ||
Deferred tax assets | 217 | 247 |
Deferred tax liabilities | 0 | 0 |
Net deferred tax assets / (liability) | $ 217 | $ 247 |
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Increase (decrease) in valuation allowance | $ 667 | $ 527 |
Federal | ||
Net operating loss carryforwards | 1,248 | |
State | ||
Net operating loss carryforwards | $ 1,248 |
REVENUE (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|
Revenue | ||
Trade accounts receivable | $ 8,293 | $ 5,951 |
Accounts payable | 3,702 | 2,590 |
Contract assets | 337 | 216 |
Contract liabilities | $ 628 | $ 476 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Earnings Per Share [Abstract] | ||
(Loss) / Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax | $ (575) | $ 879 |
Income / (loss) attributable to Trio-Tech International common shareholders from discontinued operations, net of tax | (16) | (1) |
Net (Loss) / income attributable to Trio-Tech International common shareholders | $ (591) | $ 878 |
Weighted average number of common shares outstanding - basic | 3,768 | 3,673 |
Dilutive effect of stock options | 117 | 53 |
Number of shares used to compute earnings per share - diluted | 3,885 | 3,726 |
Basic (Loss) / Earnings per Share: | ||
Basic (Loss) / earnings per share from continuing operations attributable to Trio-Tech International | $ (.16) | $ .24 |
Basic (Loss) / earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 |
Basic (Loss) / Earnings per Share from Net Income Attributable to Trio-Tech International | (.16) | 0.24 |
Diluted (Loss) / Earnings per Share: | ||
Diluted (Loss) / earnings per share from continuing operations attributable to Trio-Tech International | (.15) | .24 |
Diluted (Loss) / earnings per share from discontinued operations attributable to Trio-Tech International | 0 | 0 |
Diluted (Loss) / Earnings per Share from Net Income Attributable to Trio-Tech International | $ (.15) | $ 0.24 |
EARNINGS PER SHARE (Details Narrative) - $ / shares |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|
Options outstanding | 674,500 | 763,500 |
Employee Stock Option [Member] | ||
Options outstanding | 348,000 | 410,000 |
Employee Stock Option [Member] | Minimum | ||
Weighted average exercise price | $ 2.53 | $ 2.53 |
Employee Stock Option [Member] | Maximum [Member] | ||
Weighted average exercise price | $ 5.98 | $ 5.98 |
STOCK OPTIONS (RESTATED) (Details) |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Minimum | ||
Expected volatility | 40.89% | 40.89% |
Risk-free interest rate | 0.14% | 0.30% |
Expected life (years) | 2 years 6 months | 2 years 6 months |
Maximum | ||
Expected volatility | 69.03% | 55.19% |
Risk-free interest rate | 2.35% | 2.35% |
Expected life (years) | 3 years 4 months | 3 years 4 months |
STOCK OPTIONS (RESTATED) (Details 1) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Options outstanding, beginning | 763,500 | |
Options outstanding | 674,500 | 763,500 |
2017 Employee Plan | ||
Options outstanding, beginning | 196,000 | 136,000 |
Granted | 71,000 | 60,000 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Options outstanding | 267,000 | 196,000 |
Options exercisable | 164,750 | 98,000 |
Weighted average exercise price outstanding, beginning | $ 3.92 | $ 4.53 |
Granted | 5.03 | 2.53 |
Exercised | .00 | .00 |
Forfeited or expired | .00 | .00 |
Weighted average exercise price outstanding | 4.21 | 3.92 |
Weighted average exercise price exercisable | $ 4.35 | $ 4.44 |
Weighted average remaining contractual term outstanding, beginning | 3 years 11 months 1 day | 4 years 3 months 11 days |
Granted | 4 years 1 month 28 days | 2 years 8 months 23 days |
Weighted average remaining contractual term outstanding, ending | 4 years 2 months 16 days | 3 years 8 months 19 days |
Weighted average remaining contractual term exercisable | 4 years 4 months 6 days | 3 years 4 months 28 days |
Aggregate intrinsic value outstanding, beginning | $ 36 | $ 0 |
Granted | 14 | 36 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Aggregate intrinsic value outstanding, ending | 290 | 36 |
Aggregate intrinsic value exercisable | $ 173 | $ 9 |
2007 Employee Plan | ||
Options outstanding, beginning | 77,500 | 77,500 |
Granted | 0 | 0 |
Exercised | (40,000) | 0 |
Forfeited or expired | 0 | 0 |
Options outstanding | 37,500 | 77,500 |
Options exercisable | 37,500 | 77,500 |
Weighted average exercise price outstanding, beginning | $ 3.69 | $ 3.69 |
Granted | .00 | .00 |
Exercised | 3.26 | .00 |
Forfeited or expired | .00 | .00 |
Weighted average exercise price outstanding | 4.14 | 3.69 |
Weighted average exercise price exercisable | $ 4.14 | $ 3.69 |
Weighted average remaining contractual term outstanding, beginning | 1 year 2 months 19 days | 2 years 2 months 19 days |
Weighted average remaining contractual term outstanding, ending | 9 months | 1 year 2 months 19 days |
Weighted average remaining contractual term exercisable | 9 months | 1 year 2 months 19 days |
Aggregate intrinsic value outstanding, beginning | $ 0 | $ 0 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Aggregate intrinsic value outstanding, ending | 0 | 0 |
Aggregate intrinsic value exercisable | $ 0 | $ 0 |
2017 Directors Equity Incentive Plan | ||
Options outstanding, beginning | 240,000 | 160,000 |
Granted | 80,000 | 80,000 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Options outstanding | 320,000 | 240,000 |
Options exercisable | 320,000 | 240,000 |
Weighted average exercise price outstanding, beginning | $ 3.93 | $ 4.63 |
Granted | 5.27 | 2.53 |
Exercised | .00 | .00 |
Forfeited or expired | .00 | .00 |
Weighted average exercise price outstanding | 4.27 | 3.93 |
Weighted average exercise price exercisable | $ 4.27 | $ 3.93 |
Weighted average remaining contractual term outstanding, beginning | 3 years 9 months | 4 years 3 months |
Granted | 4 years 7 months 20 days | 4 years 8 months 23 days |
Weighted average remaining contractual term outstanding, ending | 3 years 2 months 19 days | 4 years 9 months |
Weighted average remaining contractual term exercisable | 3 years 2 months 19 days | 4 years 9 months |
Aggregate intrinsic value outstanding, beginning | $ 48 | $ 0 |
Granted | 0 | 48 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Aggregate intrinsic value outstanding, ending | 340 | 48 |
Aggregate intrinsic value exercisable | $ 340 | $ 48 |
2007 Directors Equity Incentive Plan | ||
Options outstanding, beginning | 250,000 | 300,000 |
Granted | 0 | 0 |
Exercised | (200,000) | 0 |
Forfeited or expired | 0 | (50,000) |
Options outstanding | 50,000 | 250,000 |
Options exercisable | 50,000 | 250,000 |
Weighted average exercise price outstanding, beginning | $ 3.32 | $ 3.40 |
Granted | .00 | .00 |
Exercised | 3.12 | 0.00 |
Forfeited or expired | .00 | 3.81 |
Weighted average exercise price outstanding | 4.14 | 3.32 |
Weighted average exercise price exercisable | $ 4.14 | $ 3.32 |
Weighted average remaining contractual term outstanding, beginning | 9 months 29 days | 1 year 6 months 29 days |
Weighted average remaining contractual term outstanding, ending | 9 months | 9 months 29 days |
Weighted average remaining contractual term exercisable | 9 months | 9 months 29 days |
Aggregate intrinsic value outstanding, beginning | $ 22 | $ 9 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Forfeited or expired | 0 | 0 |
Aggregate intrinsic value outstanding, ending | 45 | 22 |
Aggregate intrinsic value exercisable | $ 45 | $ 22 |
STOCK OPTIONS (RESTATED) (Details 2) - $ / shares |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
2017 Employee Plan | ||
Non-vested options outstanding, beginning | 98,000 | 87,000 |
Granted | 71,000 | 60,000 |
Vested | (66,750) | (49,000) |
Forfeited | 0 | 0 |
Non-vested options outstanding, ending | 102,250 | 98,000 |
Weighted average grant-date fair value outstanding, beginning | $ 1.79 | $ 1.43 |
Granted | 1.88 | 0.85 |
Vested | (1.83) | (1.51) |
Forfeited | .00 | .00 |
Weighted average grant-date fair value outstanding, ending | $ 2.29 | $ 1.79 |
2007 Employee Plan | ||
Non-vested options outstanding, beginning | 0 | 9,375 |
Granted | 0 | 0 |
Vested | 0 | (9,375) |
Forfeited | 0 | 0 |
Non-vested options outstanding, ending | 0 | 0 |
Weighted average grant-date fair value outstanding, beginning | $ 0.00 | $ .00 |
Granted | 0.00 | 1.22 |
Vested | (0.00) | (.00) |
Forfeited | 0.00 | 1.22 |
Weighted average grant-date fair value outstanding, ending | $ 0.00 | $ 0.00 |
STOCK OPTIONS (RESTATED) (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Stock-based compensation expense | $ 249 | $ 146 |
Aggregate intrinsic value options exercised | $ 754 | |
Employee 2017 | ||
Options granted | 71,000 | 60,000 |
Exercised during period | 0 | 0 |
Stock-based compensation expense | $ 105 | $ 85 |
Unamortized stock-based compensation | $ 71 | $ 54 |
Weighted average remaining term, nonvested | 2 years 11 days | |
Vested stock options | 164,750 | 98,000 |
Weighted-average exercise price, vested options | $ 4.35 | $ 4.44 |
Weighted average contractual term | 2 years 8 months 27 days | 3 years 4 months 28 days |
Fair value of stock options, vested and outstanding | $ 268 | $ 164 |
Employee 2007 | ||
Options granted | 0 | 0 |
Exercised during period | 40,000 | |
Stock-based compensation expense | $ 0 | $ 0 |
Vested stock options | 37,500 | 77,500 |
Weighted-average exercise price, vested options | $ 4.14 | $ 3.69 |
Weighted average contractual term | 9 months | 1 year 2 months 19 days |
Fair value of stock options, vested and outstanding | $ 61 | $ 120 |
Director 2017 | ||
Options granted | 80,000 | 80,000 |
Stock-based compensation expense | $ 143 | $ 61 |
Vested stock options | 320,000 | 240,000 |
Weighted-average exercise price, vested options | $ 4.27 | $ 3.93 |
Fair value of stock options, vested and outstanding | $ 143 | $ 61 |
Director 2007 | ||
Exercised during period | 200,000 | 50,000 |
Vested stock options | 50,000 | 250,000 |
Weighted-average exercise price, vested options | $ 4.14 | $ 3.32 |
Weighted average contractual term | 9 months | 9 months 29 days |
Fair value of stock options, vested and outstanding | $ 72 |
LEASES (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|
Leases [Abstract] | ||
2021 | $ 0 | $ 120 |
2022 | 145 | 114 |
2023 | 16 | 0 |
Total | 161 | $ 234 |
Gross financial sales receivable | 65 | |
Unearned finance income | (7) | |
Financed sales receivable | 58 | |
Net financed sales receivables due within one year | 19 | |
Net financed sales receivables due after one year | $ 39 |
LEASES (Details 1) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
|||
---|---|---|---|---|---|
Operating Leases | |||||
Operating lease right-of-use assets | $ 1,876 | $ 944 | [1] | ||
Current portion of operating leases | 672 | 477 | [1] | ||
Net of current portion of operating leases | 1,204 | 467 | [1] | ||
Total operating lease liabilities | 1,876 | 944 | |||
Finance Leases | |||||
Property and equipment, at cost | 1,413 | ||||
Accumulated depreciation | (1,199) | ||||
Property and equipment, net | 214 | ||||
Current portion of finance leases | 197 | 231 | [1] | ||
Net of current portion of finance leases | 253 | 435 | [1] | ||
Total finance lease liabilities | 450 | $ 666 | |||
Total leased assets | 2,090 | ||||
Total lease liabilities | $ 2,326 | ||||
|
LEASES (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2021 |
|
Lease Cost | ||
Interest on lease liability | $ 7 | $ 42 |
Amortization of right-of-use asset | 74 | 334 |
Total finance lease cost | 81 | 376 |
Operating lease costs | $ 199 | $ 765 |
LEASES (Details 3) $ in Thousands |
12 Months Ended |
---|---|
Jun. 30, 2021
USD ($)
| |
Leases [Abstract] | |
Operating cash flows from finance lease | $ (40) |
Operating cash flows from operating leases | (764) |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 932 |
Weighted-average remaining lease term: finance leases | 2 years 8 months 19 days |
Weighted-average remaining lease term: operating leases | 3 years 1 month 2 days |
Weighted-average discount rate: finance leases | 356.00% |
Weighted-average discount rate: operating leases | 460.00% |
LEASES (Details 4) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Jun. 30, 2020 |
|||
---|---|---|---|---|---|
Operating Lease Liabilities | |||||
2021 | $ 0 | $ 509 | |||
2022 | 748 | 317 | |||
2023 | 537 | 168 | |||
2024 | 313 | 0 | |||
2025 | 291 | 0 | |||
Thereafter | 156 | 0 | |||
Total future minimum lease payments | 2,045 | 994 | |||
Less: amount representing interest | (169) | (50) | |||
Present value of net minimum lease payments | 1,876 | 944 | |||
Current | 672 | 477 | [1] | ||
Non-current | 1,204 | 467 | [1] | ||
Finance Leases Liabilities | |||||
2021 | 0 | 265 | |||
2022 | 218 | 211 | |||
2023 | 137 | 133 | |||
2024 | 111 | 107 | |||
2025 | 22 | 0 | |||
Thereafter | 0 | 20 | |||
Total future minimum lease payments | 488 | 736 | |||
Less: amount representing interest | (38) | (70) | |||
Present value of net minimum lease payments | 450 | 666 | |||
Current | 197 | 231 | [1] | ||
Non-current | $ 253 | $ 435 | [1] | ||
|
NON-CONTROLLING INTEREST (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
||||
Non-controlling interest | |||||
Net (loss) / income | $ (1,155) | $ 1,116 | [1] | ||
Dividend declared by subsidiary | (189) | (235) | |||
Translation adjustment | 1,248 | (742) | |||
Noncontrolling Interest | |||||
Non-controlling interest | |||||
Beginning balance | 1,180 | 1,195 | |||
Net (loss) / income | (564) | 238 | [1] | ||
Dividend declared by subsidiary | (189) | (235) | |||
Translation adjustment | (8) | (18) | |||
Ending balance | $ 419 | $ 1,180 | |||
|
NON-CONTROLLING INTEREST (Details Narrative) |
Jun. 30, 2021 |
---|---|
Controlling Interest 1 | |
Non controlling interest | 45.00% |
Controlling Interest 2 | |
Non controlling interest | 45.00% |
Controlling Interest 3 | |
Non controlling interest | 24.00% |
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