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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended December 31, 2024

 

OR

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Transition Period from ___ to ___

 

Commission File Number 1-14523

 

TRIO-TECH INTERNATIONAL

(Exact name of Registrant as specified in its Charter)

 

California

95-2086631

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification Number)

  

Block 1008 Toa Payoh North

 

Unit 03-09 Singapore

318996

(Address of principal executive offices)

(Zip Code)

 

Registrant's Telephone Number, Including Area Code: (65) 6265 3300

 

Securities registered pursuant to Section 12(b) of the Act:

  

Name of each exchange

Title of each class

Trading Symbol

on which registered

Common Stock, no par value

TRT

NYSE American

 

Securities registered pursuant to Section 12(g) of the Act: None

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ☒ No ☐  

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes ☒  No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-‐accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-‐2 of the Exchange Act. (Check one):

 

Large Accelerated Filer

☐

 

Accelerated Filer

☐

Non-Accelerated Filer 

☒

 

Smaller reporting company

☒

   

Emerging growth company

☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐   No ☒

 

As of February 1, 2025, there were 4,251,555 shares of the issuer’s Common Stock, no par value, outstanding.

 

 
Table of Contents

 

 

TRIO-TECH INTERNATIONAL

INDEX TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION, OTHER INFORMATION AND SIGNATURE

 

   

Page

Part I.

Financial Information

  
     

Item 1.

Financial Statements

1
 

(a)   Condensed Consolidated Balance Sheets as of December 31, 2024 (Unaudited), and June 30, 2024

1
 

(b)   Condensed Consolidated Statements of Operations and Comprehensive Income / (Loss) for the Three and Six Months Ended December 31, 2024 (Unaudited), and December 31, 2023 (Unaudited)

2
 

(c)   Condensed Consolidated Statements of Shareholders’ Equity for the Six Months Ended December 31, 2024 (Unaudited), and December 31, 2023 (Unaudited)

4
 

(d)   Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2024 (Unaudited), and December 31, 2023 (Unaudited)

5
 

(e)   Notes to Condensed Consolidated Financial Statements (Unaudited)

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

41

Item 4.

Controls and Procedures

41
     

Part II.

Other Information

  
     

Item 1.

Legal Proceedings

42

Item 1A.

Risk Factors

42

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

42

Item 3.

Defaults upon Senior Securities

42

Item 4.

Mine Safety Disclosures

42

Item 5.

Other Information

42

Item 6.

Exhibits

42
     

Signatures

43

 

-i-
Table of Contents

 

 

FORWARD-LOOKING STATEMENTS

 

The discussions of Trio-Tech International’s (the “Company”) business and activities set forth in this Quarterly Report on Form 10-Q (this “Quarterly Report”) and in other past and future reports and announcements by the Company may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and assumptions regarding future activities and results of operations of the Company. In light of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the following factors, among others, could cause actual results to differ materially from those reflected in any forward-looking statements made by or on behalf of the Company: market acceptance of Company products and services; changing business conditions or technologies and volatility in the semiconductor industry, which could affect demand for the Company’s products and services; the impact of competition; problems with technology; product development schedules; delivery schedules; changes in military or commercial testing specifications which could affect the market for the Company’s products and services; difficulties in profitably integrating acquired businesses, if any, into the Company; or the divestiture in the future of one or more business segments; risks associated with conducting business internationally and especially in Asia, including currency fluctuations and devaluation, currency restrictions, local laws and restrictions and possible social, political and economic instability; changes in U.S. and global financial and equity markets, including market disruptions and significant interest rate fluctuations; the trade tension between U.S. and China; inflation; the war in Ukraine and Russia, the war between Israel and Hamas; other economic, financial and regulatory factors beyond the Company’s control and uncertainties relating to our ability to operate our business in China; uncertainties regarding the enforcement of laws and the fact that rules and regulation in China can change quickly with little advance notice, along with the risk that the Chinese government may intervene or influence our operation at any time, or may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers could result in a material change in our operations, financial performance and/or the value of our common stock, no par value (“Common Stock”), or impair our ability to raise money. Other than statements of historical fact, all statements made in this Quarterly Report are forward-looking, including, but not limited to, statements regarding industry prospects, future results of operations or financial position, and statements of our intent, belief and current expectations about our strategic direction, prospective and future financial results and condition. In some cases, you can identify forward-looking statements by the use of terminology such as “may,” “will,” “expects,” “plans,” “anticipates,” “estimates,” “potential,” “believes,” “can impact,” “continue,” or the negative thereof or other comparable terminology. Forward-looking statements involve risks and uncertainties that are inherently difficult to predict, which could cause actual outcomes and results to differ materially from our expectations, forecasts and assumptions.

 

Unless otherwise required by law, we undertake no obligation to update forward-looking statements to reflect subsequent events, changed circumstances, or the occurrence of unanticipated events. You are cautioned not to place undue reliance on such forward-looking statements.

 

 
Table of Contents
 

 

PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES)

 

  

December 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     

ASSETS

        

CURRENT ASSETS:

        

Cash and cash equivalents

 $10,323  $10,035 

Short-term deposits

  6,222   6,497 

Trade accounts receivable, less allowance for expected credit losses of $80 and $209, respectively

  9,881   10,661 

Other receivables

  961   541 

Inventories, less provision for obsolete inventories of $771 and $679, respectively

  1,957   3,162 

Prepaid expense and other current assets

  548   536 

Restricted term deposits

  756   750 

Total current assets

  30,648   32,182 

NON-CURRENT ASSETS:

        

Deferred tax assets

  68   124 

Investment properties, net

  372   407 

Property, plant and equipment, net

  5,594   5,937 

Operating lease right-of-use assets

  1,197   1,887 

Other assets

  129   232 

Restricted term deposits

  1,792   1,771 

Total non-current assets

  9,152   10,358 

TOTAL ASSETS

 $39,800  $42,540 
         

LIABILITIES

        

CURRENT LIABILITIES:

        

Accounts payable

 $1,804  $3,175 

Accrued expense

  2,695   3,634 

Contract liabilities

  721   754 

Income taxes payable

  288   379 

Current portion of bank loans payable

  258   261 

Current portion of finance leases

  42   57 

Current portion of operating leases

  943   1,162 

Total current liabilities

  6,751   9,422 

NON-CURRENT LIABILITIES:

        

Bank loans payable, net of current portion

  524   613 

Finance leases, net of current portion

  12   34 

Operating leases, net of current portion

  254   725 

Income taxes payable, net of current portion

  -   141 

Other non-current liabilities

  30   27 

Total non-current liabilities

  820   1,540 

TOTAL LIABILITIES

 $7,571  $10,962 
         

EQUITY

        

SHAREHOLDERS’ EQUITY:

        

Common stock, no par value, 15,000,000 shares authorized; 4,250,305 shares issued outstanding as at December 31, 2024 and June 30, 2024, respectively

 $13,325  $13,325 

Paid-in capital

  5,656   5,531 

Accumulated retained earnings

  12,084   11,813 

Accumulated other comprehensive income-translation adjustments

  778   660 

Total shareholders’ equity

  31,843   31,329 

Non-controlling interest

  386   249 

TOTAL EQUITY

 $32,229  $31,578 

TOTAL LIABILITIES AND EQUITY

 $39,800  $42,540 

 

See notes to condensed consolidated financial statements.

 

 

- 1 -
Table of Contents
 

 

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS)

UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)

 

   

Three Months Ended

    

Six Months Ended

  
   

December 31,

    

December 31,

    

December 31,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  

Revenue

                                

Semiconductor Back-end Solutions

   $ 5,809     $ 7,896     $ 12,688     $ 15,072  

Industrial Electronics

     2,801       4,300       5,715       7,083  

Others

     9       6       15       13  
      8,619       12,202       18,418       22,168  
                                 

Cost of Sales

     6,401       9,348       13,878       16,794  
                                 

Gross Margin

     2,218       2,854       4,540       5,374  
                                 

Operating Expense:

                                

General and administrative

     1,965       1,817       3,929       3,975  

Selling

     176       248       326       435  

Research and development

     114       131       202       216  

(Gain) / Loss on disposal of property, plant and equipment

     (34 )     (19 )     (47 )     72  

Total operating expense

     2,221       2,177       4,410       4,698  
                                 

(Loss) / Income from Operations

     (3 )     677       130       676  
                                 

Other Income / (Expense)

                                

Interest expense

     (13 )     (22 )     (26 )     (46 )

Other income / (expense), net

     686       (82 )     321       114  

Government grant

     5       4       71       77  

Total other income / (expense)

     678       (100 )     366       145  
                                 

Income from Continuing Operations before Income Taxes

     675       577       496       821  
                                 

Income Tax Expense

     (139 )     (95 )     (190 )     (132 )
                                 

Income from Continuing Operations before Non-controlling Interest, Net of Taxes

     536       482       306       689  
                                 

Discontinued Operations

                                

(Loss) / Income from discontinued operations, net of tax

     (7 )     4       -       4  

Net Income

     529       486       306       693  
                                 

Less: Net income / (loss) attributable to non-controlling interest

     22       (21 )     35       (44 )

Net Income Attributable to Common Shareholders

   $ 507     $ 507     $ 271     $ 737  
                                 

Amounts Attributable to Common Shareholders:

                                

Income from continuing operations, net of tax

     511       503       271       730  

(Loss) / Income from discontinued operations, net of tax

     (4 )     4       -       7  

Net Income Attributable to Common Shareholders

   $ 507     $ 507     $ 271     $ 737  
                                 

Basic Earnings per Share:

                                

Basic earnings per share from continuing operations

   $ 0.12     $ 0.12     $ 0.06     $ 0.18  

Basic earnings per share from discontinued operations

     -       -       -       -  

Basic Earnings per Share from Net Income

   $ 0.12     $ 0.12     $ 0.06     $ 0.18  
                                 

Diluted Earnings per Share:

                                

Diluted earnings per share from continuing operations

   $ 0.12     $ 0.12     $ 0.06     $ 0.17  

Diluted earnings per share from discontinued operations

     -       -       -       -  

Diluted Earnings per Share from Net Income

   $ 0.12     $ 0.12     $ 0.06     $ 0.17  
                                 

Weighted Average Number of Common Shares Outstanding

                                

Basic

     4,250       4,120       4,250       4,109  

Dilutive effect of stock options

     153       139       119       161  

Number of Shares Used to Compute Earnings Per Share Diluted

     4,403       4,259       4,369       4,270  

 

See notes to condensed consolidated financial statements.

 

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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

UNAUDITED (IN THOUSANDS)

 

   

Three Months Ended

    

Six Months Ended

  
   

Dec. 31,

    

Dec. 31,

    

Dec. 31,

    

Dec. 31,

  
   

2024

    

2023

    

2024

    

2023

  

Comprehensive (Loss) / Income Attributable to Common Shareholders:

                                
                                 

Net income

   $ 529     $ 486     $ 306     $ 693  

Foreign currency translation, net of tax

     (1,794 )     1,158       220       975  

Comprehensive (Loss) / Income

     (1,265 )     1,644       526       1,668  

Less: comprehensive income / (loss) attributable to non- controlling interest

     (2 )     (72 )     137       (74 )

Comprehensive (Loss) / Income Attributable to Common Shareholders

   $ (1,263 )   $ 1,716     $ 389     $ 1,742  

 

See notes to condensed consolidated financial statements.

 

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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

UNAUDITED (IN THOUSANDS)

 

Six months ended December 31, 2024

 

                                   

Accumulated

                  
                           

Accumulated

    

Other

    

Non-

          
   

Common Stock

    

Paid-in

    

Retained

    

Comprehensive

    

controlling

          
   

Shares

    

Amount

    

Capital

    

Earnings

    

Income

    

Interest

    

Total

  
           

$

    

$

    

$

    

$

    

$

    

$

  
                                                         

Balance at June 30, 2024

     4,250       13,325       5,531       11,813       660       249       31,578  

Stock option expense

     -       -       125       -       -       -       125  

Net income

     -       -       -       271       -       35       306  

Translation adjustment

     -       -       -       -       118       102       220  

Balance at December 31, 2024

     4,250       13,325       5,656       12,084       778       386       32,229  

 

Six months ended December 31, 2023

 

                                   

Accumulated

                  
                           

Accumulated

    

Other

    

Non-

          
   

Common Stock

    

Paid-in

    

Retained

    

Comprehensive

    

controlling

          
   

Shares

    

Amount

    

Capital

    

Earnings

    

Income / (Loss)

    

Interest

    

Total

  
           

$

    

$

    

$

    

$

    

$

    

$

  
                                                         

Balance at June 30, 2023

     4,097       12,819       5,066       10,763       758       165       29,571  

Stock option expenses

     -       -       90       -       -       -       90  

Net income / (loss)

     -       -       -       737       -       (44 )     693  

Exercise of stock option

     64       199       -       -       -       -       199  

Translation adjustment

     -       -       -       -       1,005       (30 )     975  

Balance at December 31, 2023

     4,161       13,018       5,156       11,500       1,763       91       31,528  

 

See notes to condensed consolidated financial statements.

 

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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS)

 

   

Six Months Ended

  
   

December 31,

    

December 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

Cash Flow from Operating Activities

                

Net income

   $ 306     $ 693  

Adjustments to reconcile net income to net cash flow provided by operating activities

                

Unrealized foreign exchange (gain) / loss

     (100 )     91  

Depreciation and amortization

     1,422       2,784  

(Gain) / Loss on sales of property, plant and equipment

     (47 )     71  

Provision for obsolete inventories, net

     104       14  

Stock compensation

     125       90  

Bad debt recovery

     (14 )     (3 )

Allowance for expected credit losses

     61       -  

Accrued interest expense, net accrued interest income

     (10 )     (35 )

Payment of interest portion of finance lease

     (2 )     (3 )

Warranty expense / (recovery), net

     -       15  

Reversal of income tax provision

     (6 )     (7 )

Deferred tax expense / (benefits)

     50       (51 )

Changes in operating assets and liabilities, net of acquisition effects

                

Trade accounts receivable

     735       (2,562 )

Other receivables

     (420 )     (90 )

Other assets

     97       (58 )

Inventories

     1,127       (1,342 )

Prepaid expense and other current assets

     (12 )     129  

Accounts payable, accrued expense and contract liabilities

     (2,283 )     3,147  

Income taxes payable

     (160 )     (259 )

Other non-current liabilities

     3       (564 )

Operating lease liabilities

     (722 )     (693 )

Net Cash Provided by Operating Activities

   $ 254     $ 1,367  
                 

Cash Flow from Investing Activities

                

Withdrawal from unrestricted term deposits, net

     4,309       2,666  

Investment in unrestricted term deposits, net

     (4,002 )     (1,641 )

Additions to property, plant and equipment

     (252 )     (158 )

Proceeds from disposal of property, plant and equipment

     185       -  

Proceeds from disposal of assets held-for-sale

     -       269  

Net Cash Provided by Investing Activities

     240       1,136  
                 

Cash Flow from Financing Activities

                

Payment on lines of credit

     (98 )     (575 )

Payment of bank loans

     (140 )     (241 )

Payment of finance leases

     (38 )     (55 )

Proceeds from exercising stock options

     -       199  

Proceeds from lines of credit

     93       952  

Net Cash (Used in) / Provided by Financing Activities

     (183 )     280  
                 

Effect of Changes in Exchange Rate

     4       685  
                 

Net Increase in Cash, Cash Equivalents, and Restricted Cash

     315       3,468  

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period

     12,556       10,038  

Cash, Cash Equivalents, and Restricted Cash at End of Period

   $ 12,871     $ 13,506  
                 

Supplementary Information of Cash Flows

                

Cash paid during the period for:

                

Interest

   $ 12     $ 21  

Income taxes

   $ 326     $ 371  
                 

Reconciliation of Cash, Cash Equivalents, and Restricted Cash

                

Cash

     10,323       10,966  

Restricted Term-Deposits in Current Assets

     756       762  

Restricted Term-Deposits in Non-Current Assets

     1,792       1,778  

Total Cash, Cash Equivalents, and Restricted Cash Shown in Statements of Cash Flows

   $ 12,871     $ 13,506  

 

Restricted deposits represent the amount of cash pledged to secure loans payable or trade financing granted by financial institutions, serve as collateral for public utility agreements such as electricity and water, and performance bonds related to customs duty payable. Restricted deposits are classified as current and non-current depending on whether they relate to long-term or short-term obligations. Restricted deposits of $756 as at December 31, 2024 are classified as current assets as they relate to short-term trade financing. On the other hand, restricted deposits of $1,792 as at December 31, 2024 are classified as non-current assets as they relate to long-term obligations and will become unrestricted only upon discharge of the obligations. 

 

See notes to condensed consolidated financial statements.

 

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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

 

 

1.

ORGANIZATION AND BASIS OF PRESENTATION

 

Trio-Tech International (the “Company”, or “TTI”) was incorporated in fiscal year ended June 30, 1958 under the laws of the State of California. The Company has traditionally been a provider of reliability test equipment and services to the semiconductor and other industries. The Company provides comprehensive electrical, environmental, and burn-in testing services to semiconductor manufacturers in Asia. The Company designs and manufactures an extensive range of burn-in and reliability test equipment used in the “back-end” manufacturing processes of semiconductors. The Company also designs, manufactures and distributes an extensive range of test, process and other equipment used in the manufacturing processes of customers in various industries in the consumer and industrial market. The Company also acts as a design-in reseller of a wide range of camera modules, LCD displays and touch screen panels. 

 

In the first quarter of fiscal year ended June 30, 2025 (“Fiscal 2025”), we made changes in our business strategy in an effort to better align with our focus areas and to streamline operations. While the semiconductor industry is and will remain a major market for Trio-Tech, an important component of our strategy is to reduce our historic concentration on this industry. As a result, we have decided to organize our operating businesses based on the markets that we serve. Beginning in fiscal 2025, we report our financial performance based on our new segments, Semiconductor Back-end Solutions and Industrial Electronics.

 

TTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand, Indonesia, Cayman Islands and China as follows:

 

  

Ownership

 

Location

Express Test Corporation (Dormant)

  100%

Van Nuys, California

Trio-Tech Reliability Services (Dormant)

  100%

Van Nuys, California

KTS Incorporated, dba Universal Systems (Dormant)

  100%

Van Nuys, California

European Electronic Test Centre (Dormant)

  100%

Cayman Islands

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. (100% owned by Trio-Tech Malaysia Sdn. Bhd.)#

  55%

Selangor, Malaysia

Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.)

  76%

Selangor, Malaysia

Trio-Tech (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) (95% owned by SHI International Pte. Ltd.)

  52%

Batam, Indonesia

Trio-Tech (Tianjin) Co., Ltd. *

  100%

Tianjin, China

Trio-Tech (Jiangsu) Co., Ltd. (51% owned by Trio-Tech (SIP) Co., Ltd.)

  51%

Suzhou, China

 

* 100% owned by Trio-Tech International Pte. Ltd.

#  Trio-Tech (Kuala Lumpur) Sdn. Bhd. has been gazetted and is in the process of being struck off from the register.

 

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The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements are presented in U.S. dollars unless otherwise stated. The accompanying condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report for the fiscal year ended  June 30, 2024 (“Fiscal 2024”). The Company’s operating results are presented based on the translation of foreign currencies using the respective quarter’s average exchange rate.

 

The results of operations for the six months ended December 31, 2024 are not necessarily indicative of the results that may be expected for any other interim period or for the full year ending June 30, 2025.

 

Use of Estimates — The preparation of consolidated financial statements in conformity with GAAP 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 expense during the reporting period. Among the more significant estimates included in these consolidated financial statements are the estimated allowance for credit losses on account receivables, reserve for obsolete inventory, impairments, provision of income tax, stock options and the deferred income tax asset allowance. Actual results could materially differ from those estimates.

 

Significant Accounting Policies. There have been no material changes to our significant accounting policies summarized in Note 1 “Basis of Presentation and Summary of Significant Accounting Policies” to our consolidated Financial Statements included in our Annual Report on Form 10-K for Fiscal 2024.

 

Recasting of Certain Prior Period Information - In response to changes in our business strategy, during the first quarter of fiscal 2025, the Company’s chief operating decision maker, who is also our Chief Executive Officer, requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, beginning in fiscal 2025, we report our financial performance based on our new segments described in Note 14 – Segment Information. We have recast certain prior period amounts to conform to the way we internally manage and monitor segment performance during fiscal 2025. This change primarily impacted Note 14 – Segment Information, with no impact on consolidated net income or cash flows.

 

Comparative figures - Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net income.

 
 

2.

NEW ACCOUNTING PRONOUNCEMENTS

 

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The new guidance requires enhanced disclosures about significant segment expense. This standard update is effective for Company beginning in the fiscal year ending June 30, 2025 and interim period reports beginning in the first quarter of the fiscal year ending June 30, 2026. Early adoption is permitted on a retrospective basis. The Company is currently evaluating the impact of this ASU on segment disclosure.

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The new guidance requires enhanced disclosures about income tax expense. This standard update is effective for Company beginning in the fiscal year ending June 30, 2026. Early adoption is permitted on a prospective basis. The Company is currently evaluating the impact of this ASU on annual income tax disclosures.

 

In November 2024, the FASB released ASU No. 2024-03, Disaggregation of Income Statement Expenses. This ASU’s purpose is to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. Early adoption is permitted. This standard update is effective for Company beginning in the fiscal year ending June 30, 2029.

 

New pronouncements issued but not yet effective until after December 31, 2024, are not expected to have a significant effect on the Company’s consolidated financial position or results of operations.

 

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3.

TERM DEPOSITS

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Short-term deposits

 $6,592  $6,540 

Currency translation effect on short-term deposits

  (370)  (43)

Total short-term deposits

  6,222   6,497 

Restricted term deposits - Current

  804   750 

Currency translation effect on restricted term deposits

  (48)  - 

Total restricted term deposits - Current

  756   750 

Restricted term deposits – Non-current

  1,897   1,773 

Currency translation effect on restricted term deposits

  (105)  (2)

Total restricted term deposits - Non-current

  1,792   1,771 

Total term deposits

 $8,770  $9,018 

 

Restricted deposits represent the amount of cash pledged to secure loans payable or trade financing granted by financial institutions, serve as collateral for public utility agreements such as electricity and water, and performance bonds related to customs duty payable. Restricted deposits are classified as current and non-current depending on whether they relate to long-term or short-term obligations. Restricted deposits of $756 as at  December 31, 2024 are classified as current assets as they relate to short-term trade financing. On the other hand, restricted deposits of $1,792 as at  December 31, 2024 are classified as non-current assets as they relate to long-term obligations and will become unrestricted only upon discharge of the obligations. 

 
 

4.

TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR EXPECTED CREDIT LOSSES

 

Accounts receivable are customer obligations due under normal trade terms. The Company performs continuing credit evaluations of its customers’ financial conditions, and although management generally does not require collateral, letters of credit may be required from the customers in certain circumstances.

 

The allowance for trade receivable represents management’s expected credit losses in our trade receivables as of the date of the financial statements. The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be inherent in the trade receivables, but that have not been specifically identified.

 

The following table represents the changes in the allowance for expected credit losses: 

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Beginning

 $209  $217 

Additions charged to expense

  61   12 

Recovered

  (14)  (15)

Written off

  (178)  (2)

Currency translation effect

  2   (3)

Ending

 $80  $209 

 
 

5.

LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS

 

The following table presents Trio-Tech (Chongqing) Co. Ltd (“TTCQ”)’s loan receivables from property development projects in China as of December 31, 2024.

 

 

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   274 

Less: allowance for expected credit losses

  (2,000)  (274)

Net loan receivables from property development projects

  -   - 

 

The short-term loan receivables amounting to renminbi (“RMB”) 2,000, or approximately $274 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 the fiscal year ended June 30, 2011 (“Fiscal 2011”). Based on TTI’s financial policy, an allowance for expected credit losses of $274 on the investment in JiangHuai was recorded during the fiscal year ended June 30, 2014 (“Fiscal 2014”). TTCQ did not generate other income from JiangHuai for the quarter ended  December 31, 2024 or for Fiscal 2024. TTCQ is in the legal process of recovering the outstanding amount of approximately $274.

 

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6.

INVENTORIES

 

Inventories consisted of the following:

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Raw materials

 $1,413  $1,668 

Work in progress

  772   1,048 

Finished goods

  520   1,129 

Less: provision for obsolete inventories

  (771)  (679)

Currency translation effect

  23   (4)
  $1,957  $3,162 

 

The following table represents the changes in provision for obsolete inventories:

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Beginning

 $679  $648 

Additions charged to expense

  97   65 

Usage – disposition

  -   (21)

Currency translation effect

  (5)  (13)

Ending

 $771  $679 

 
 

7.

INVESTMENT PROPERTIES

 

The following table presents the Company’s investment in properties in China as of December 31, 2024. The exchange rate is based on the market rate as of December 31, 2024.

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Property I – MaoYe Property

        

Cost

 $301  $301 

Less: Accumulated depreciation

  (243)  (226)

Currency translation effect

  (12)  (22)
  $46   53 

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Property II – JiangHuai Property

        

Cost

 $-  $580 

Less: Accumulated depreciation

  -   (360)

Currency translation effect

  -   (83)

Carrying value of relinquished asset

 $-  $137 

Cost of acquired asset

  137   - 

Less: Accumulated depreciation of acquired asset

  (12)  - 

Currency translation effect

  (1)  - 
  $124  $137 

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Property III – FuLi Property

        

Cost

 $648  $648 

Less: Accumulated Depreciation

  (368)  (338)

Currency translation effect

  (78)  (93)
  $202  $217 

 

Rental Property I – MaoYe Property

 

MaoYe Property generated a rental income of $6 and $12 during the three and six months ended December 31, 2024, as compared to $6 and $12 for the same period in Fiscal 2024.

 

A lease agreement was entered into on February 1, 2023 for a period of 4 years at a monthly rate of RMB15, or approximately $2. Pursuant to the agreement, monthly rental will increase by 5% after the second year.

 

Depreciation expense for MaoYe Property was $3 and $7 for the three and six months ended December 31, 2024, as compared to $4 and $8 for the same period in Fiscal 2024.

 

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Rental Property II – JiangHuai

 

During the year ended June 30, 2010 (“Fiscal 2010”), TTCQ purchased eight units of commercial property in Chongqing, China, from JiangHuai for RMB 3,600, or approximately $580. The title deeds for these properties had not been received by TTCQ since the entire project had not been completed by JiangHuai. JiangHuai is currently in liquidation and the local court had appointed a Management Company to manage the liquidation process and address claims from stakeholders. To expedite the resolution, TTCQ agreed to settle the claims through an asset exchange. The court directed the Management Company to engage a third-party valuer to assess the assets involved. Based on the valuation, the court determined that TTCQ would receive title deeds for 5 shop units having a total area of 547.67 m² in exchange of the claim made for the 8 units without title deeds. In July 2024, the court concluded that the value of these 5 shop units was equivalent to the original purchase price of 8 shop units of RMB 3,600 and issued a court order to process title deeds for the 5 units in the name of TTCQ. The carrying value of the JiangHuai asset group as at  June 30, 2024 was RMB 990. Applying the guidance in FASB Accounting Standards Codification ("ASC") Topic 845, Nonmonetary transactions, this transaction lacks commercial substance and hence, the JiangHuai asset group will continue to be accounted based on the carrying value of the exchanged investment properties. The title deeds have been received as of September 2024.

 

JiangHuai Property did not generate any rental income for the three and six months ended December 31, 2024 and 2023.

 

Depreciation expense for JiangHuai was $6 and $12 for the three and six months ended December 31, 2024, as compared to $6 and $12 for the same period in Fiscal 2024.

 

Rental Property III – FuLi

 

FuLi Property generated a rental income of $3 for the three and six months ended December 31, 2024, as compared to $Nil and $1 for the same period in Fiscal 2024.

 

A lease agreement was entered into October 10, 2024 for a period of 4 years at a monthly rate of RMB9, or approximately $1. Pursuant to the agreement, monthly rental will increase by 5% after the second year.

 

Depreciation expense for FuLi was $7 and $13 for the three and six months ended December 31, 2024, as compared to $7 and $14 for the same period in Fiscal 2024.

 

Summary

 

Total rental income for all investment properties in China was $9 and $15 for the three and six months ended December 31, 2024, as compared to $6 and $13 for the same period in Fiscal 2024.

 

Depreciation expense for all investment properties in China was $16 and $32 for the three and six months ended December 31, 2024, as compared to $17 and $34 for the same period in Fiscal 2024.

 
 

8.

OTHER ASSETS

 

Other assets consisted of the following:

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     

Deposits for rental and utilities and others

 $122  $234 

Downpayment for Purchase of Investment Properties*

  1,580   1,580 

Less: Provision for Impairment

  (1,580)  (1,580)

Currency translation effect

  7   (2)

Total

 $129  $232 

 

*Down payment for purchase of investment properties included downpayment relating to shop lots in Singapore Themed Resort Project in Chongqing, China. The shop lots are to be delivered to TTCQ upon completion of the construction. The initial targeted date of completion was in Fiscal 2017. However, progress has stalled because the developer is currently reorganizing assets and renegotiating with the creditors to complete the project.

 

During the fourth quarter of Fiscal 2021, the Company accrued an impairment charge of $1,580 related to the doubtful recovery of the down payment on property in the Singapore Themed Resort Project in Chongqing, China. The Company elected to take this non-cash impairment charge due to 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 in China and its relevant government policies.

 
 

9.

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 ready and adequate access to funds in global markets.

 

As of December 31, 2024, the Company had certain lines of credit that are collateralized by restricted deposits.

 

Entity with

  

Type of

  

Interest

  

Credit

    

Unused

  

Facility

  

Facility

  

Rate

  

Limitation

    

Credit

  

Trio-Tech International Pte. Ltd., Singapore

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $3,895     $3,615  

Universal (Far East) Pte. Ltd.

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $1,837     $1,770  

Trio-Tech Malaysia Sdn. Bhd.

  

Revolving credit

  

Cost of Funds Rate +2%

   $334     $334  

 

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As of June 30, 2024, the Company had certain lines of credit that are collateralized by restricted deposits.

 

Entity with

  

Type of

  

Interest

  

Credit

    

Unused

  

Facility

  

Facility

  

Rate

  

Limitation

    

Credit

  

Trio-Tech International Pte. Ltd., Singapore

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $ 3,907     $ 3,626  

Universal (Far East) Pte. Ltd.

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $ 1,843     $ 1,818  

Trio-Tech Malaysia Sdn. Bhd.

  

Revolving credit

  

Cost of Funds Rate +2%

   $ 318     $ 318  

 
 

10.

ACCRUED EXPENSE

 

Accrued expense consisted of the following:

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Payroll and related costs

 $1,148  $1,737 

Commissions

  152   164 

Legal and audit

  211   328 

Sales tax and witholding Tax

  93   34 

Sales rebate

  100   81 

Travelling Expenses

  44   25 

Utilities

  201   231 

Warranty

  19   27 

Accrued purchase of materials and property, plant and equipment

  178   553 

Provision for reinstatement

  380   380 

Other accrued expense

  146   52 

Currency translation effect

  23   22 

Total

 $2,695  $3,634 

 
 

11.

ASSURANCE WARRANTY ACCRUAL

 

The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded. The warranty period of the products manufactured by the Company is generally one year or the warranty period agreed 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.

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Beginning

 $27  $24 

Additions charged to cost and expense

  -   21 

Utilization

  (8)  (20)

Currency translation effect

  -   2 

Ending

 $19  $27 

 

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12.

BANK LOANS PAYABLE

 

Bank loans payable consisted of the following:

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Note payable denominated in the Malaysian Ringgit for expansion plans in Malaysia, maturing in July 2028, bearing interest at the bank’s prime rate less 2.00% (4.85% for both December 31, 2024 and June 30, 2024) per annum, with monthly payments of principal plus interest through July 2028, collateralized by the acquired building with a carrying value of $2,237 and $2,208, as at December 31, 2024 and June 30, 2024, respectively.

 $551  $596 

Financing arrangement at fixed interest rate 3.2% per annum, with monthly payments of principal plus interest through July 2025.

  26   44 

Financing arrangement at fixed interest rate 3.0% per annum, with monthly payments of principal plus interest through December 2026.

  106   124 

Financing arrangement at fixed interest rate 3.0% per annum, with monthly payments of principal plus interest through August 2027.

  99   110 

Total bank loans payable

 $782  $874 
         

Current portion of bank loans payable

  245   235 

Currency translation effect on current portion of bank loans

  13   26 

Current portion of bank loans payable

  258   261 

Long-term portion of bank loans payable

  491   591 

Currency translation effect on long-term portion of bank loans

  33   22 

Long-term portion of bank loans payable

 $524  $613 

 

Future minimum payments (excluding interest) as at December 31, 2024, were as follows:

 

Remainder of Fiscal 2025

 $137 

2026

  242 

2027

  222 

Thereafter

  181 

Total obligations and commitments

 $782 

 

Future minimum payments (excluding interest) as at June 30, 2024, were as follows:

 

2025

 $260 

2026

  230 

2027

  212 

Thereafter

  172 

Total obligations and commitments

 $874 

 
 

13.

COMMITMENTS AND CONTINGENCIES

 

The Company has capital commitment of $79 as at December 31, 2024, as compared to capital commitment of $65 as at June 30, 2024.

 

Deposits with banks are not fully insured by the local government or agency and are consequently exposed to risk of loss. The Company believes that the probability of bank failure, causing loss to the Company, is remote.

 

The Company is, from time to time, the subject of litigation claims and assessments arising out of matters occurring in its normal business operations. In the opinion of management, resolution of these matters will not have a material adverse effect on the Company’s consolidated financial statements.

 
 

14.

BUSINESS SEGMENTS

 

ASC Topic 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of a reporting entity, the operating results of which are reviewed regularly by the chief operating decision maker (“CODM”) to make decisions about resource allocation and to assess performance. Our CODM is our Chief Executive Officer.

 

In response to changes in our business strategy in an effort to better align with our focus areas and to streamline operations, during the first quarter of Fiscal 2025, our CODM requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, we have updated our reporting and beginning in Fiscal 2025, we report our financial performance based on our new segments, “Semiconductor Back-end Solutions” (“SBS”) and “Industrial Electronics” (“IE”), and analyze gross profit and operating income as the measure of segment profitability. We have recast certain prior period amounts to conform to the way we internally manage and monitor segment performance during Fiscal 2025.

 

Our operating businesses are organized based on the nature of markets. The SBS segment comprises our core semiconductor back-end equipment manufacturing and testing operations that serve the semiconductor industry. Our value-added distribution business, along with our services and equipment manufacturing operations that serve various industries are being reported together in our IE segment. A detailed description of our operating segments as of December 31, 2024 can be found in the overview section of Item 2 of this Quarterly Report, entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations". A mapping of our previous presentation and the new segments is presented below:

 

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●

Manufacturing – Manufacturing of equipment that solely serves the back-end processes of the semiconductor industry is presented under the SBS segment, and manufacturing of equipment that serves various industries is presented under the IE segment.

 

●

Testing Services – Testing services are presented under the SBS segment.

 

●

Distribution – Value-added distribution of burn-in test related equipment is presented under the SBS segment, and value-added distribution of other electronic products is presented under the IE segment.

 

●

Real estate – Real-estate segment relates to real estate investments made in ChongQing, China. When identifying reportable segments, management evaluates the contribution of each segment to the overall business strategy and whether the segment reported provides meaningful information to users about the Company’s performance and prospects. Revenue from the real-estate segment has been below 1% of total revenue in the past five fiscal years due to the negative real-estate environment in China. Effective in Fiscal 2025, management therefore concluded that the real-estate segment is not integral to the Company’s operations and does not intend to allocate any additional resources to this segment. As a result, this segment will cease to be a reportable segment in Fiscal 2025, and therefore will be presented under the Others segment.

 

Our CODM uses total revenue, gross profit, operating income and total assets in assessing segment performance and deciding how to allocate resources. Segment operating income includes corporate allocations. Segment revenues include sales of equipment and services by our segments. Total intersegment sales were $22 and $83 in the three months ended December 31, 2024 and  December 31, 2023 respectively. Certain corporate costs, including those related to legal, information technology, human resources and shared services are allocated to our segments based on their relative revenues, manpower costs and fixed assets. 

 

The amounts related to revenue and earnings presented as Others include the results of an immaterial real estate business that ceased to be a reportable segment in Fiscal 2025 and includes certain costs incurred at the corporate-level, including the cost of our stock compensation plans not allocated to our reportable segments. Assets presented under Others segment consisted primarily of cash and cash equivalents, prepaid expenses and investment properties. 

 

The cost of equipment, current year investment in new equipment and depreciation expense is allocated into respective reportable segments based on the primary purpose for which the equipment was acquired.

 

The following Segment Information is unaudited for the six months ended December 31, 2024, and December 31, 2023:

 

Business Segment Information:

 

 

Six Months

     

Gross

  

Operating

             
 

Ended

 

Net

  

Profit /

  

Income /

  

Total

  

Depr. and

  

Capital

 
 

Dec. 31,

 

Revenue

  

(Loss)

  

(Loss)

  

Assets

  

Amort.

  

Expenditures

 

Semiconductor Back-end Solutions

2024

 $12,688  $3,536  $274  $30,704  $1,275  $252 
 

2023

 $15,072  $3,862  $302  $35,508  $2,624  $158 
                          

Industrial Electronics

2024

  5,715   1,024   (30)  6,270   113   - 
 

2023

  7,083   1,535   484   8,176   125   - 
                          

Others

2024

  15   (20)  (114)  2,826   34   - 
 

2023

  13   (23)  (110)  2,914   35   - 
                          

Total Company

2024

 $18,418  $4,540  $130  $39,800  $1,422  $252 
 

2023

 $22,168  $5,374  $676  $46,598  $2,784  $158 

 

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The following Segment Information is unaudited for the three months ended December 31, 2024, and December 31, 2023:

 

Business Segment Information:

 

 

Three Months

     

Gross

  

Operating

             
 

Ended

 

Net

  

Profit /

  

Income /

  

Total

  

Depr. and

  

Capital

 
 

Dec. 31,

 

Revenue

  

(Loss)

  

(Loss)

  

Assets

  

Amort.

  

Expenditures

 

Semiconductor Back-end Solutions

2024

 $5,809  $1,742  $97  $30,704  $639  $119 
 

2023

 $7,896  $1,982  $342  $35,508  $1,239  $81 
                          

Industrial Electronics

2024

  2,801   485   (23)  6,270   55    
 

2023

  4,300   885   294   8,176   57   - 
                          

Others

2024

  9   (9)  (77)  2,826   17    
 

2023

  6   (13)  41   2,914   17   - 
                          

Total Company

2024

 $8,619  $2,218  $(3) $39,800  $711  $119 
 

2023

 $12,202  $2,854  $677  $46,598  $1,313  $81 

 

Management periodically evaluates the ongoing contributions of each of its business segments to its current and future revenue and prospects. As a result, it may divest one or more business segments in the future to enable management to concentrate on segments where it anticipates opportunities for future revenue growth, thereby maximizing shareholder value. 

 

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15.

OTHER INCOME / (EXPENSE)

 

Other income / (expense) consisted of the following:

 

  

Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 

Interest income

 $82  $96  $183  $174 

Other rental income

  42   36   80   72 

Exchange gain / (loss)

  550   (236)  44   (177)

Other miscellaneous income

  12   22   14   45 

Total

 $686  $(82) $321  $114 

 
 

16.

GOVERNMENT GRANTS

 

  

Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 

Government grant

 $5  $4  $71  $77 

 

In the three months ended December 31, 2024, the Company received government grants amounting to $5, which was related to capital expenditure subsidy received from the China government. During the same period in 2024, the Company received government grants amounting to $4, related to capital expenditure subsidy received from the China government.

 

In the six months ended December 31, 2024, the Company received government grants amounting to $71, $62 of which was financial assistance received from the Singapore government for local resident recruitment, and the remaining $9, which was related to capital expenditure subsidy received from the China government. During the same period in Fiscal 2024, the Company received government grants amounting to $77, $16 of which was an incentive from the Singapore government for local resident recruitment, and the remaining $57 from the U.S. government related to Employee Retention Credit (“ERC”).

 

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17.

INCOME TAX

 

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 the 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. GILTI expense was $nil for the three and six months ended December 31, 2024, as compared to $15 and $30 for the three and six months ended December 31, 2023, respectively.

 

The Company's income tax expense was $139 and $190 for the three and six months ended December 31, 2024, as compared to $95 and $132 for the same period in Fiscal 2024. Our effective tax rate (“ETR”) from continuing operations was 38.3% and 16.1% for six months ended December 31, 2024 and December 31, 2023, respectively. Income tax expense increased due to lower deferred tax assets in our Singapore operation, driven by lower provisions, which reduced the deductible temporary differences. This was partially offset by lower GILTI tax due to lower chargeable income derived from controlled foreign corporation.

 

The Company accrues penalties and interest related to unrecognized tax benefits when necessary, as a component of penalties and interest expense, respectively. The Company had no unrecognized tax benefits or related accrued penalties or interest expense at  December 31, 2024 and December 31, 2023, respectively.

 

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 all of the benefits of the federal, state, and foreign deductible differences. Accordingly, a valuation allowance has been established against portion of the deferred tax assets recorded in the U.S. and various foreign jurisdictions.

 
 

18.

REVENUE

 

The Company generates revenue primarily from two segments: Semiconductor Back-end Solutions ("SBS") and Industrial Electronics ("IE"). 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.

 

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The Company allocates the transaction price to each performance obligation on a relative standalone selling price basis (“SSP”). Determining the SSP for each distinct performance obligation and allocation of consideration from an arrangement to the individual performance obligations and the appropriate timing of revenue recognition are significant judgments with respect to these arrangements. The Company typically establishes the SSP based on observable prices of products or services sold separately in comparable circumstances to similar clients. The Company may estimate SSP by considering internal costs, profit objectives and pricing practices in certain circumstances.

 

Warranties, discounts and allowances are estimated using historical and recent data trends. The Company includes estimates in the transaction price only to the extent that a significant reversal of revenue is not probable in subsequent periods. The Company’s products and services are generally not sold with a right of return, nor has the Company experienced significant returns from or refunds to its customers.

 

Products

 

The Company derives SBS segment revenue from the sale of burn-in and reliability test equipment used in the “back-end” manufacturing processes of semiconductors. Our equipment includes burn-in systems, burn-in boards and related equipment that is used in the testing of structural integrity of integrated circuits. 

 

Under the IE segment, the Company designs, manufactures and distributes an extensive range of test, process and other equipment used in the manufacturing processes of customers in various industries in the consumer and industrial market. The Company also acts as a design-in reseller of a wide range of camera module, LCD displays and touch screen panels.

 

The Company recognizes revenue at a point in time when the Company has satisfied its performance obligation by transferring control of the product to the customer. The Company uses judgment to evaluate whether the control has transferred by considering several indicators, including whether:

 

●

the Company has a present right to payment;

 

●

the customer has legal title;

 

●

the customer has physical possession;

 

●

the customer has significant risk and rewards of ownership; and

 

●

the customer has accepted the product, or whether customer acceptance is considered a formality based on history of acceptance of similar products (for example, when the customer has previously accepted the same equipment, with the same specifications, and when we can objectively demonstrate that the tool meets all the required acceptance criteria, and when the installation of the system is deemed perfunctory).

 

Not all 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.

 

Majority of equipment sales include a 12-month warranty. The Company generally provides a limited warranty that our products comply with applicable specifications at the time of delivery. Under our standard terms and conditions of sale, liability for certain failures of product during a stated warranty period is usually limited to repair or replacement of defective parts. The Company has concluded that the warranty provided for standard products are assurance type warranties and are not separate performance obligations.

 

Customized products are generally more complex and, as a result, may contain unforeseen faults that could lead to additional costs for us, including increased servicing or the need to provide product modifications. 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.

 

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Services

 

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 services revenue from burn-in test services, manpower supply and other associated services and also from equipment maintenance. 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 include warranty, late delivery penalty and reimbursement to solve non-conformance issues for rejected products. Based on historical and recent data trends, it is concluded that these terms of the contract do not represent potential variable consideration. The transaction price is not contingent on the occurrence of any future event.

 

Contract Balances

 

The timing of revenue recognition, billings and collections may result in billed accounts receivable, unbilled receivables, contract assets, customer advances, deposits and 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.

 

The following table is the reconciliation of contract balances.

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Trade Accounts Receivable

 $9,881  $10,661 

Accounts Payable

  1,804   3,175 

Contract Liabilities

  721   754 

 

Remaining Performance Obligation

 

The Company had $nil remaining performance obligations, which represents our obligation to deliver products and services for both period ended  December 31, 2024 and December 31, 2023.

 

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19.

EARNINGS PER SHARE

 

Options to purchase 741,750 shares of Common Stock at exercise prices ranging from $2.53 to $7.76 per share were outstanding as of December 31, 2024. 140,500 stock options were excluded in the computation of diluted earnings per share (“EPS”) for the three and six months ended December 31, 2024, because they were anti-dilutive.

 

Options to purchase 617,000 shares of Common Stock at exercise prices ranging from $2.53 to $7.76 per share were outstanding as of December 31, 2023. 284,500 stock options were excluded in the computation of EPS for the three and six months ended December 31, 2023, 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 period presented herein:

 

  

Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 
                 

Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax

 $511  $503  $271  $730 

Income attributable to Trio-Tech International common shareholders from discontinued operations, net of tax

  (4)  4   -   7 

Net Income Attributable to Trio-Tech International Common Shareholders

 $507  $507  $271  $737 
                 

Weighted average number of common shares outstanding - basic

  4,250   4,120   4,250   4,109 

Dilutive effect of stock options

  153   139   119   161 

Number of shares used to compute earnings per share - diluted

  4,403   4,259   4,369   4,270 
                 

Basic earnings per share from continuing operations attributable to Trio-Tech International

 $0.12  $0.12  $0.06  $0.18 

Basic earnings per share from discontinued operations attributable to Trio-Tech International

  -   -   -   - 

Basic Earnings per Share from Net Income Attributable to Trio-Tech International

 $0.12  $0.12  $0.06  $0.18 
                 

Diluted earnings per share from continuing operations attributable to Trio-Tech International

 $0.12  $0.12  $0.06  $0.17 

Diluted earnings per share from discontinued operations attributable to Trio-Tech International

  -   -   -   - 

Diluted Earnings per Share from Net Income Attributable to Trio-Tech International (1*)

 $0.12  $0.12  $0.06  $0.17 

 

(1*) For periods in which the Company has reported net loss, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, because dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.

 
 

20.

STOCK OPTIONS

 

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.

 

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Assumptions

 

The fair value for the stock options granted to both employees and directors was estimated using the Black-Scholes option pricing model with the following weighted average assumptions, assuming: 

 

●

An expected life varying from 2.50 to 3.25 years, calculated in accordance with the guidance provided in SEC Staff bulletin No. 110 for plain vanilla options using the simplified method, since the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term

●

A risk-free interest rate varying from 0.11% to 4.59% (2024: 0.20% to 4.59%);

●

No expected dividend payments; and

●

Expected volatility of 47.3% to 73.9% (2024: 47.3% to 72.2%).

 

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. In December 2021, the Company’s Board of Directors approved an amendment to the 2017 Employee Plan 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 2021.

 

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).

 

During the six-month period ended December 31, 2024, there were 40,000 stock options granted and no stock options were exercised under 2017 Employee Plan. The Company recognized $125 in stock-based compensation expense during the six months ended December 31, 2024.

 

During the six-month period ended December 31, 2023, there were 48,000 stock options granted and 63,875 stock options were exercised under 2017 Employee Plan. The Company recognized $90 in stock-based compensation expense during the six months ended December 31, 2023.

 

As of December 31, 2024, there were vested stock options granted under the 2017 Employee Plan covering a total of 164,500 shares of Common Stock. The weighted-average exercise price was $5.54 and the weighted average remaining contractual term was 2.59 years.

 

As of December 31, 2023, there were vested stock options granted under the 2017 Employee Plan covering a total of 88,250 shares of Common Stock. The weighted-average exercise price was $5.59 and the weighted average remaining contractual term was 3.08 years.

 

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A summary of option activities under the 2017 Employee Plan during the six months ended December 31, 2024, is presented as follows:

 

          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2024

  270,750  $5.35   3.43  $268 

Granted

  40,000   6.17   -   - 

Exercised

  -   -   -   - 

Forfeited or expired

  -   -   -   - 

Outstanding at December 31, 2024

  310,750   5.45   3.13   204 

Exercisable at December 31, 2024

  164,500   5.54   2.59   107 

 

A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2024, is presented below:

 

      

Weighted

 
      

Average

 
      

Grant-Date

 
  

Options

  

Fair Value

 
         

Non-vested at July 1, 2024

  134,500  $5.12 

Granted

  40,000   5.65 

Vested

  (28,250)  - 

Non-vested at December 31, 2024

  146,250   5.35 

 

A summary of option activities under the 2017 Employee Plan during the six months ended December 31, 2023, is presented as follows:

 

          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2023

  216,375  $4.89   2.92  $140 

Granted

  48,000   4.88   -   - 

Exercised

  (63,875)  3.12   -   - 

Forfeited or expired

  (3,500)  4   -   - 

Outstanding at December 31, 2023

  197,000  $5.48   3.51  $39 

Exercisable at December 31, 2023

  88,250  $5.59   3.08  $16 

 

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A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2023, is presented below:

 

      

Weighted

 
      

Average

 
      

Grant-Date

 
  

Options

  

Fair Value

 
         

Non-vested at July 1, 2023

  81,750  $5.53 

Granted

  48,000   4.88 

Vested

  (21,000)  - 

Non-vested at December 31, 2023

  108,750  $5.38 

 

2017 Directors Equity Incentive Plan

 

The 2017 Directors Plan permits the grant of options to its directors in the form of non-qualified options and restricted stock, and initially covered up to an aggregate of 300,000 shares of Common Stock. In September 2020, the Company’s Board of Directors approved an amendment to the 2017 Directors Plan 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. In October 2023, the Company’s Board of Directors approved an amendment to the 2017 Directors Plan to increase the shares covered thereby from 600,000 shares to an aggregate of 900,000 shares, which amendment was approved by the Company’s shareholders at the annual meeting held in December 2023.

 

Under the 2017 Directors Plan, 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.

 

During the six-month period ended December 31, 2024, and 2023, respectively, the Company did not grant any options pursuant to the 2017 Directors Plan. There were no stock options exercised and the Company did not recognize any stock-based compensation expense during the three and six months ended December 31, 2024, and 2023 respectively.

 

As all the stock options granted under the 2017 Directors Plan vest immediately on the date of grant, there were no unvested stock options granted under the 2017 Directors Plan as of December 31, 2024, or December 31, 2023.

 

As of December 31, 2024, there were vested stock options granted under the 2017 Directors Plan covering a total of 431,000 shares of Common Stock. The weighted average exercise price was $5.24 and the weighted average remaining contractual term was 2.38 years.

 

As of December 31, 2023, there were vested stock options granted under the 2017 Directors Plan covering a total of 420,000 shares of Common Stock. The weighted average exercise price was $4.91 and the weighted average remaining contractual term was 2.41 years. 

 

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A summary of option activities under the 2017 Directors Plan during the six months ended December 31, 2024, is presented as follows: 

 

          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2024

  431,000  $5.24   2.88  $531 

Granted

  -   -   -     

Exercised

  -   -   -     

Forfeited or expired

  -   -   -     

Outstanding at December 31, 2024

  431,000   5.24   2.38   439 

Exercisable at December 31, 2024

  431,000  $5.24   2.38  $439 

 

A summary of option activities under the 2017 Directors Plan during the six months ended December 31, 2023, is presented as follows:

 

          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2023

  420,000  $4.91   2.91  $309 

Granted

  -   -   -   - 

Exercised

  -   -   -   - 

Forfeited or expired

  -   -   -   - 

Outstanding at December 31, 2023

  420,000  $4.91   2.41  $352 

Exercisable at December 31, 2023

  420,000  $4.91   2.41  $352 

 
 

21.

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 20 years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expense relating to the property held as investments in operating leases was $17 and $34 for the three months ended December 31, 2024, and December 31, 2023, respectively.

 

Future minimum rental income in China and Thailand to be received from Fiscal 2025 to the fiscal year ended June 30, 2029 (“Fiscal 2029”) on non-cancelable operating leases is contractually due as follows as of December 31, 2024:

 

Remainder of 2025

 $78 

2026

  61 

2027

  32 

2028

  17 

2029

  4 
  $192 

 

Future minimum rental income in China and Thailand to be received from Fiscal 2025 to Fiscal 2027 on non-cancelable operating leases is contractually due as follows as of June 30, 2024:

 

2025

 $131 

2026

  44 

2027

  16 
  $191 

 

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Company as Lessee

 

The Company is the lessee under operating leases for corporate offices and manufacturing and testing facilities with remaining lease terms of one year to four years and finance leases for plant and equipment.

 

Supplemental balance sheet information related to leases was as follows (in thousands):

 

Components of Lease Balances

 

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     

Finance Leases (Plant and Equipment)

        

Plant and equipment, at cost

 $1,642  $1,649 

Accumulated depreciation

  (1,110)  (1,091)

Plant and Equipment, Net

 $532  $558 
         

Current portion of finance leases

 $42  $57 

Net of current portion of finance leases

  12   34 

Total Finance Lease Liabilities

 $54  $91 
         

Operating Leases (Corporate Offices, Manufacturing and Testing Facilities)

        

Operating lease right-of-use assets, Net

 $1,197  $1,887 
         

Current portion of operating leases

  943   1,162 

Net of current portion of operating leases

  254   725 

Total Operating Lease Liabilities

 $1,197  $1,887 

 

As of December 31, 2024, the Company has entered into lease agreements for properties that have been signed but have not yet commenced. The leases agreements are expected to begin on January 1, 2025 and June 1, 2025 respectively. The future minimum lease payments are $9 for the remainder of Fiscal 2025, $69 for Fiscal 2026, $66 for Fiscal 2027 and $123 thereafter. Since the lease terms have yet to commence, the Company has not recognized a Right-of-Use (ROU) asset and its corresponding lease liability in the balance sheet as of December 31, 2024. The ROU asset and lease liabilities will be recognized in the financial statements when the lease term commences.

 

 

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Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 
                 

Lease Cost

                

Finance lease cost:

                

Interest on finance lease

 $1  $2  $2  $5 

Amortization of right-of-use assets

  19   12   38   56 

Total finance lease cost

  20   14   40   61 
                 

Operating Lease Costs

 $387  $385  $775  $754 

 

Other information related to leases was as follows (in thousands except lease term and discount rate):

 

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

 

Cash Paid for Amounts Included in the Measurement of Lease Liabilities

        

Operating cash flows from finance leases

 $2  $3 

Operating cash flows from operating leases

  722   693 

Finance cash flows from finance leases

  38   55 

Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities

      - 
         

Weighted-Average Remaining Lease Term:

        

Finance leases

  1.25   0.80 

Operating leases

  1.50   2.08 

Weighted-Average Discount Rate:

        

Finance leases

  2.28%  2.89%

Operating leases

  5.51%  5.51%

 

As of December 31, 2024, the maturities of the Company’s operating and finance lease liabilities are as follow:

 

  

Operating

  

Finance

 
  

Lease

  

Lease

 
  

Liabilities

  

Liabilities

 

Fiscal Year

        

Remainder of Fiscal 2025

  670   22 

2026

  437   34 

2027

  55    

Thereafter

  86   - 

Total future minimum lease payments

 $1,248  $56 

Less: amount representing interest

  (51)  (2)

Present value of net minimum lease payments

 $1,197  $54 
         

Presentation on statement of financial position

        

Current

  943   42 

Non-Current

  254   12 

 

As of June 30, 2024, future minimum lease payments under finance leases and noncancelable operating leases were as follows:

 

  

Operating

  

Finance

 
  

Lease

  

Lease

 
  

Liabilities

  

Liabilities

 

Fiscal Year

        

2025

 $1,234  $61 

2026

  658   34 

2027

  86   - 

Total future minimum lease payments

 $1,978  $95 

Less: amount representing interest

  (91)  (4)

Present value of net minimum lease payments

 $1,887  $91 
         

Presentation on statement of financial position

        

Current

 $1,162  $57 

Non-Current

  725   34 

 

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22.

FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE

 

In accordance with ASC Topics 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 three months ended  December 31, 2024 and year ended June 30, 2024.

 

Term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments.

 

Restricted term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments.

 

Lines of credit (Level 3) – The carrying value of the lines of credit approximates fair value due to the short-term nature of the obligations.

 

Bank loans payable (Level 3) – The carrying value of the Company’s bank loans payable 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.

 
 

23.

CONCENTRATION OF CUSTOMERS

 

The Company had three major customers that accounted for the following revenue and trade account receivables:

 

  

For the Six Months Ended

 
  

Dec. 31,

 
  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

 

Revenue

        

- Customer A

  20.8%  21.8%

- Customer B

  18.0%  17.7%

- Customer C

  10.3%  13.9%

Trade Account Receivables

        

- Customer A

  20.3%  21.0%

- Customer B

  17.0%  24.4%

- Customer C

  18.5%  22.8%

 

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TRIO-TECH INTERNATIONAL AND SUBSIDIARIES

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

 

Overview

 

The following should be read in conjunction with the condensed consolidated financial statements and notes in Item I above and with the audited consolidated financial statements and notes, the information under the headings “Management’s discussion and analysis of financial condition and results of operations” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 (“Fiscal 2024”).

 

Trio-Tech International (“TTI”) was incorporated in 1958 under the laws of the State of California. As used herein, the term “Trio-Tech” or “Company” or “we” or “us” or “Registrant” includes Trio-Tech International and its subsidiaries unless the context otherwise indicates. Our mailing address and executive offices are located at Block 1008 Toa Payoh North, Unit 03-09 Singapore 318996, and our telephone number is (65) 6265 3300.

 

The Company has traditionally been a provider of reliability test equipment and services to the semiconductor and other industries. Our customers rely on us to verify that their semiconductor components meet or exceed the rigorous reliability standards demanded for automotive electronics, industrial electronics, computing and data storage, consumer electronics, and communication markets. We act as a global one-stop solution for our customers by designing and building reliability test solutions and offering comprehensive testing services. The Company also develops and manufactures an extensive range of equipment used in the manufacturing processes of semiconductors and various other industries.

 

In the first quarter of Fiscal 2025, we made changes in our business strategy in an effort to better align with our focus areas and to streamline operations. While the semiconductor industry is and will remain a major market for the Company, an important component of our strategy is to reduce our historic concentration on this industry. As a result, we have decided to organize our operating businesses based on the markets that we serve. Beginning in Fiscal 2025, we report our financial performance based on our new segments, Semiconductor Back-end Solutions and Industrial Electronics.

 

“Semiconductor Back-end Solutions” (“SBS”) segment comprises of our core semiconductor back-end manufacturing and testing operations that serve the semiconductor industry. Our value-added distribution business, along with our services and equipment manufacturing operations that serve various industries will be reported together in our “Industrial Electronics” (“IE”) segment. A mapping of our previous presentation and the revised segments is presented below:

 

●

Manufacturing – Manufacturing of equipment that solely serves the back-end processes of the semiconductor industry is presented under the SBS segment, and manufacturing of equipment that serves various industries is presented under the IE segment.

 

●

Testing Services – Testing services are presented under the SBS segment

 

●

Distribution – Value-added distribution of burn-in test related equipment is presented under the SBS segment, and value-added distribution of other electronic products are presented under the IE segment.

 

●

Real estate – Real-estate segment relates to real estate investments made in ChongQing, China. When identifying reportable segments, management evaluates the contribution of each segment to our overall business strategy and whether the segment reported provides meaningful information to users about the Company’s performance and prospects. Revenue from the real-estate segment has been below 1% of total revenue in the past five fiscal years due to the negative real-estate environment in China. Effective in Fiscal 2025, management therefore concluded that the real-estate segment is not integral to the Company’s operations and does not intend to allocate any additional resources to this segment. As a result, this segment will cease to be a reportable segment in Fiscal 2025, and therefore will be presented under the Others segment.

 

The types of products and services provided by each segment are summarized below:

 

Semiconductor Back-end Solutions

 

The SBS segment of the Company designs and manufactures an extensive range of burn-in and reliability test equipment used in the “back-end” manufacturing processes of semiconductors. Our equipment includes burn-in systems, burn-in boards and related equipment that is used in the testing of structural integrity of integrated circuits. We also act as an extended development team of Integrated Device Manufacturers (“IDMs”) and Fabless semiconductor companies in the testing process with our expert technical skills, especially in the New Product Introduction (“NPI”) process.

 

The Company also provides comprehensive electrical, environmental, and burn-in testing services to semiconductor manufacturers in our testing laboratories in Asia. Our customers include both manufacturers and end users of semiconductor and electronic components who look to us when they decide to outsource their testing process. We also support the asset-light strategy of our customers by setting up test facilities and providing component level, package level and system level testing services with expert technology that improves the productivity of our customers. The independent tests are performed to industry and customer specific standards.

 

Industrial Electronics

 

The IE segment of the Company includes the design, manufacture and distribution of an extensive range of test, process and other equipment used in the manufacturing processes of customers in various industries in the consumer and industrial market. Our equipment includes environmental chambers, leak detectors, autoclaves, centrifuges, dynamic testers, HAST testers, temperature-controlled chucks, and more. This segment also provides preventive maintenance, calibration services, repair services and upgrading and refurbishment services for temperature, humidity and pressurization equipment.

 

In addition to marketing our proprietary products, we distribute mechanical, electrical and electronic products made by manufacturers around the world. The products include environmental chambers, mechanical shock and vibration testers, specialized equipment for aerospace applications and more. We also distribute a wide range of components such as connectors, sockets, cables, LCD displays and touch screen panels. We act as value-added resellers by enhancing the value of the distributed products by customizing each to the needs of our customers through our expert engineering and integration services. We also support our customers as their extended research and development arm in product design, leveraging the expert skills of our component engineers and design engineers.

 

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Critical Accounting Estimates & Policies

 

The preparation of our Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions in applying our accounting policies that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base these estimates and assumptions on historical experience and evaluate them on an ongoing basis to ensure that they remain reasonable under current conditions. Actual results could differ from those estimates. We discuss the development and selection of the critical accounting estimates with the Audit Committee of our Board of Directors on a quarterly basis, and the Audit Committee has reviewed our related disclosure in this Quarterly Report on Form 10-Q.

 

There have been no material changes in our critical accounting estimates and policies since our Annual Report on Form 10-K for Fiscal 2024. Refer to Note 1 “Basis of Presentation and Summary of Significant Accounting Policies” to our Condensed Consolidated Financial Statements for additional details. In addition, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in Part II, Item 7 of our Annual Report on Form 10-K for Fiscal 2024 for a complete description of our critical accounting policies and estimates.

 

SecondQuarter Fiscal Year 2025 Highlights

 

●

Total revenue decreased by $3,583, or 29.4%, to $8,619 in the second quarter of Fiscal 2025, compared to $12,202 for the same period in Fiscal 2024.

●

SBS segment revenue decreased by $2,087, or 26.4% to $5,809 for the second quarter of Fiscal 2025, compared to $7,896 for the same period in Fiscal 2024.

●

IE segment revenue decreased by $1,499, or 34.9%, to $2,801 for the second quarter of Fiscal 2025, compared to $4,300 for the same period in Fiscal 2024.

●

The overall gross profit margin increased by 2.3% to 25.7% for the second quarter of Fiscal 2025, from 23.4% for the same period in Fiscal 2024.

●

General and administrative expense increased by $148, or 8.1%, to $1,965 for the second quarter of Fiscal 2025, from $1,817 for the same period in Fiscal 2024.

●

Selling expense decreased by $72, or 29.0%, to $176 for the second quarter of Fiscal 2025, from $248 for the same period in Fiscal 2024.

●

Loss from operations was $3 for the second quarter of Fiscal 2025, reflecting a decline of $680 as compared to income from operations of $677 for the same period in Fiscal 2024.

●

Other income increased by $768 to $686 for the second quarter of Fiscal 2025, as compared to other expense of $82 for the same period in Fiscal 2024.

●

Income tax expense was $139 in the second quarter of Fiscal 2025, an increase of $44 as compared to $95 for the same period in Fiscal 2024.

●

During the second quarter of Fiscal 2025, income from continuing operations before non-controlling interest, net of tax was $536, as compared to income from continuing operations before non-controlling interest of $482 for the same period in Fiscal 2024.

●

Net income attributable to non-controlling interest for the second quarter of Fiscal 2025 was $22, an increase of $43 as compared to net loss of $21 for the same period in Fiscal 2024.

●

Basic earnings per share for the second quarter of Fiscal 2025 was $0.12, as compared to earnings per share of $0.12 for the same period in Fiscal 2024.

●

Diluted earnings per share for the second quarter of Fiscal 2025 was $0.12, as compared to earnings per share of $0.12 for the same period in Fiscal 2024.

●

Total assets decreased by $2,740 to $39,800 as of December 31, 2024, compared to $42,540 as of June 30, 2024.

●

Total liabilities decreased by $3,391 to $7,571 as of December 31, 2024, compared to $10,962 as of June 30, 2024.

 

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Results of Operations and Business Outlook

 

The following table sets forth our revenue components for both three and six months ended December 31, 2024 and 2023.

 

Revenue Components

  

Three Months Ended

    

Six Months Ended

  
   

Dec. 31,

    

Dec. 31,

    

Dec. 31,

    

Dec. 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

    

(Unaudited)

    

(Unaudited)

  
                                 

Semiconductor Back-end Solutions (SBS)

     67.4 %     64.7 %     68.9 %     68.0 %

Industrial Electronics (IE)

     32.5 %     35.2 %     31.0 %     32.0 %

Others

     0.1 %     0.1 %     0.1 %     0.0 %

Total

     100 %     100 %     100.0 %     100.0 %

 

Revenue for the three and six months ended December 31, 2024 was $8,619 and $18,418, respectively, a decrease of $3,583 and $3,750, respectively, when compared to the revenue of $12,202 and $22,168 for the same period of Fiscal 2024. As a percentage, revenue decreased by 29.4% and 16.9% for the three and six months ended December 31, 2024, when compared to revenue for the same period of Fiscal 2024.

 

Revenue within our two current segments for the three and six months ended December 31, 2024, is discussed below.

 

Semiconductor Back-end Solutions (SBS)

 

Revenue in the SBS segment as a percentage of total revenue was 67.4% and 68.9% for the three and six months ended December 31, 2024, an increase of 2.7% and 0.9% of total revenue when compared to 64.7% and 68.0% in the same period of Fiscal 2024. Total SBS revenue decreased by $2,087 to $5,809 from $7,896 and decreased by $2,384 to $12,688 from $15,072 for the three and six months ended December 31, 2024, respectively.

 

SBS revenue experienced a decline across all SBS operations except Malaysia operation. The demand reduced for both testing services and product sales. The semiconductor market downturn impacted the segment's overall performance.  The demand for these services is heavily influenced by the broader semiconductor industry outlook, as well as market trends and customer forecasts. Given the inherent challenges in accurately predicting market fluctuations, it remains difficult to anticipate shifts in demand with precision. However, the company is in a strong position to take advantage of any recovery in the industry and is looking into new ways to expand its services, which should help drive growth in the future.

 

Industrial Electronics (IE)

 

Revenue in the IE segment as a percentage of total revenue was 32.5% and 31.0% for the three and six months ended December 31, 2024, representing a decrease of 2.7% and 1.0% compared to 35.2% and 32.0% in the same period of Fiscal 2024. Total IE revenue decreased by $1,499 from $4,300 to $2,801 and decreased by $1,368 from $7,083 to $5,715 for the three and six months ended December 31, 2024, respectively, compared to the same period of Fiscal 2024

 

IE revenue experienced a decline due to a decrease in demand for electronic components. The demand for the IE segment is primarily driven by a combination of factors, including fluctuations in customer product demand, evolving market conditions, and the capital expenditure budgets and forecasts of our customers. However, our strength as value-added reseller enables us to respond quickly when industry changes. Over the longer term, management believes this strategy positions us well to sustain growth and enhance market resilience.

 

 

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Uncertainties and Remedies

 

There are several influencing factors which create uncertainties when forecasting performance, such as the changing nature of technology, specific customer requirements, decline in demand for certain types of burn-in devices or equipment, decline in demand for testing services and fabrication services, and other factors. One factor that influences uncertainty is the highly competitive nature of the semiconductor industry. Additionally, certain customers are unable to provide a forecast of the products required in the upcoming weeks, rendering it, difficult to plan adequate resources needed to meet these customers’ requirements because of short lead time and last-minute order confirmation. This will normally result in a lower margin for these products as it is often more expensive to purchase materials in a short time frame. However, the Company has taken certain actions and formulated certain plans to deal with and to help mitigate these unpredictable factors. For example, to meet manufacturing customers’ demands upon short notice, the Company maintains higher inventories but continues to work closely with its customers to avoid stockpiling. We believe that we have improved customer service through our efforts to keep our staff up to date on the newest technology and stressing the importance of understanding and meeting the stringent requirements of our customers. Finally, the Company is exploring new markets and products, looking for new customers, and upgrading and improving burn-in technology while at the same time searching for improved testing methods for higher technology chips.

 

The Company’s primary exposure to movements in foreign currency exchange rates relates to non-U.S. dollar-denominated sales and operating expense in its subsidiaries. Strengthening of the United States dollar (“U.S. Dollar”) relative to foreign currencies adversely affects the U.S. Dollar value of the Company’s foreign currency-denominated sales and earnings, and generally leads the Company to raise international pricing, potentially reducing demand for the Company’s products. Margins on sales of the Company’s products in foreign countries and on sales of products that include components obtained from foreign suppliers could be materially adversely affected by foreign currency exchange rate fluctuations. In some circumstances, for competitive or other reasons, the Company may decide not to raise local prices to fully offset the U.S. Dollar’s strengthening, or at all, which would adversely affect the U.S. Dollar value of the Company’s foreign currency-denominated sales and earnings. Conversely, a strengthening of foreign currencies relative to the U.S. Dollar, while generally beneficial to the Company’s foreign currency denominated sales and earnings, could cause the Company to reduce international pricing, thereby limiting the benefit. Additionally, strengthening of foreign currencies may also increase the Company’s cost of product components denominated in those currencies, thus adversely affecting gross margins.

 

We may experience supply shortages as well as inflationary cost pressures in at least the near term. Risks and uncertainties related to supply chain challenges, and inflationary pressures may continue to negatively impact our revenue and gross margin. We continue to monitor and evaluate the business impact to react proactively.

 

On August 9, 2022, the CHIPS and Science Act of 2022 (“CHIPS Act”) was enacted in the U.S. The CHIPS Act will provide financial incentives to the semiconductor industry which are primarily directed at manufacturing activities within the U.S. We continue to evaluate the business impact and potential opportunities related to the CHIPS Act. As of date, we do not see any direct effect of the CHIPS Act on the Company in the foreseeable future. 

 

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Comparison of the Three Months Ended December 31, 2024, and December 31, 2023

 

The following table sets forth certain consolidated statements of income data as a percentage of revenue for the three months ended December 31, 2024 and 2023 respectively:

 

   

Three Months Ended

  
   

December 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

Revenue

     100.0 %     100.0 %

Cost of sales

     74.3 %     76.6 %

Gross Margin

     25.7 %     23.4 %

Operating expense

                

General and administrative

     22.8 %     14.9 %

Selling

     2.0 %     2.0 %

Research and development

     1.3 %     1.1 %

(Gain) on disposal of property, plant and equipment

     (0.4 )%     (0.1 )%

Total operating expense

     25.8 %     17.9 %

(Loss) / Income from Operations

     (0.1 )%     5.5 %

 

Overall Gross Margin

 

Overall gross margin as a percentage of revenue increased by 2.3% to 25.7% for the three months ended December 31, 2024, from 23.4% for the same period of Fiscal 2024. Gross profits decreased by $636 to $2,218 for the three months ended December 31, 2024, from $2,854 for the same period in Fiscal 2024.

 

Gross profit margin as a percentage of revenue in the SBS segment increased by 4.9% to 30.0% for the three months ended December 31, 2024, as compared to 25.1% for the same period in Fiscal 2024. The increase in gross profit was primarily driven by lower costs, resulting from reduced depreciation charges, as certain assets in the China operations were fully depreciated by the end of the second quarter of the previous fiscal year. In absolute dollar amounts, gross profit in the SBS segment for the three months ended December 31, 2024, was $1,742, a decrease of $240, compared to $1,982 in the same period in Fiscal 2024. The decrease in the absolute dollar of gross profit margin is attributed to the decrease in revenue.

 

Gross profit margin as a percentage of revenue in the IE segment decreased by 3.3% to 17.3% for the three months ended December 31, 2024, from 20.6% for the same period in Fiscal 2024. In absolute dollar amounts, gross profit in the IE segment for the three months ended December 31, 2024, was $485, indicating a decrease of $400, compared to $885 in the same period in Fiscal 2024. The decline is primarily attributable to lower demand for electronic components, coupled with an unfavorable product mix in equipment sales. In the IE segment, a portion of the cost of sales consists of fixed costs, which, when spread over lower revenue, leads to a decrease in the gross profit margin.

 

Operating Expense

 

Operating expense for the three months ended December 31, 2024 and 2023 was as follows:

 

   

Three Months Ended

  
   

December 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

General and administrative

   $ 1,965     $ 1,817  

Selling

     176       248  

Research and development

     114       131  

(Gain) on disposal of property, plant and equipment

     (34 )     (19 )

Total

   $ 2,221     $ 2,177  

 

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General and administrative expense increased by $148, or 8.1%, from $1,817 to $1,965 for the three months ended December 31, 2024, compared to the same period in Fiscal 2024. The increase in general and administrative expense was primarily due to increase in manpower cost to cater to the Malaysia and Singapore business expansion and an increase in allowance for expected credit losses compared to same period of Fiscal 2024.

 

Selling expense decreased by $72, or 29.0%, from $248 to $176 for the three months ended December 31, 2024, compared to the same period in Fiscal 2024. The reduction in selling expenses was mainly due to a decline in commissions paid to agents, along with lower business travel costs.

 

(Loss) / Income from Operations

 

Loss from operations was $3 for the three months ended December 31, 2024, a decrease of $680, compared to income of $677 from operations for the same period in Fiscal 2024. The decline was mainly due to the reduced revenue arising from weaker demand in our core markets, reflecting broader industry trends. Management remains committed over cost control initiatives, including tighter non-discretionary spending, to ensure the company is well-positioned to capitalize on future growth opportunities once the market stabilizes.

 

Interest Expense

 

Interest expense for the three months ended December 31, 2024 and 2023 was as follows:

 

   

Three Months Ended

  
   

December 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

Interest expense

   $ 13     $ 22  

 

Interest expense was $13 for the three months ended December 31, 2024, a decrease of $9, or 40.9%, compared to $22 for the same period of Fiscal 2024 due to lower utilization of credit facilities. As of December 31, 2024, the Company had an unused line of credit of $5,719 as compared to $5,256 as at December 31, 2023.

 

Other Income / (Expense)

 

Other Income / (Expense) for the three months ended December 31, 2024 and 2023 was as follows:

 

   

Three Months Ended

  
   

December 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

Interest income

   $ 82     $ 96  

Other rental income

     42       36  

Exchange gain / (loss)

     550       (236 )

Other miscellaneous income

     12       22  

Total

   $ 686     $ (82 )

 

Other income increased by $768 to $686 for the three months ended December 31, 2024 as compared to other expense of $82 for the same period in Fiscal 2024. The increase was primarily driven by a favorable foreign currency movement, resulting in an exchange gain for the three months ended December 31, 2024, compared to an exchange loss for the same period in Fiscal 2024.

 

Government Grant

 

   

Three Months Ended

  
   

December 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  
                 

Government Grant

   $ 5     $ 4  

 

In the three months ended December 31, 2024, the Company received government grants amounting to $5 related to capital expenditure subsidy received from the China government.

 

During the same period in Fiscal 2024, the Company received government grants amounting to $4, related to capital expenditure subsidy received from the China government. 

 

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Income Tax Expense

 

The Company's income tax expense was $139 and $95 for the three months ended December 31, 2024, and 2023, respectively. Income tax expense increased due to lower deferred tax assets in our Singapore operation, driven by lower provisions, which reduced the deductible temporary differences. This was partially offset by lower GILTI tax due to lower chargeable income derived from controlled foreign corporation.

 

Non-controlling Interest

 

As of December 31, 2024, we held a 55% interest in Trio-Tech (Malaysia) Sdn. Bhd., Trio-Tech (Kuala Lumpur) Sdn. Bhd., SHI International Pte. Ltd., and 52% interest in PT. SHI Indonesia. We also held a 76% interest in Prestal Enterprise Sdn. Bhd and 51% interest in Trio-tech JiangSu Co. Ltd. The share of non-controlling interest in the net income from the subsidiaries for the three months ended December 31, 2024 was $22 compared to the share of loss from the non-controlling interest of $21 for the same period of Fiscal 2024. The increase in the net income shared by non-controlling interest in the subsidiaries was attributable to the increase in net income generated by the Company’s Malaysia and China operations.

 

Net Income Attributable to Trio-Tech International Common Shareholders

 

Net income attributable to Company’s common shareholders was $507 for the three months ended December 31, 2024, compared to a net income of $507 for the same period in Fiscal 2024.

 

Earnings per Share

 

Basic earnings per share from continuing operations were $0.12 for three months ended December 31, 2024 as compared to basic earnings per share of $0.12 for the same period of Fiscal 2024. Basic earnings per share from discontinued operations were $nil for three months ended December 31, 2024 and December 31, 2023 respectively.

 

Diluted earnings per share from continuing operations were $0.12 for three months ended December 31, 2024 as compared to diluted earnings per share of $0.12 for the same period of Fiscal 2024. Diluted earnings per share from discontinued operations were $nil for three months ended December 31, 2024 and December 31, 2023.

 

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Segment Information

 

The revenue, gross margin, and income / (loss) from operations for each segment during the second quarter of Fiscal 2025 and Fiscal 2024 are presented below. As the revenue and gross margin for each segment were discussed in the previous section, only the comparison of income / (loss) from operations is discussed below.

 

Semiconductor Back-end Solutions (SBS)

 

The revenue, gross margin and income from operations for the SBS segment for the three months ended December 31, 2024 and 2023 were as follows:

 

   

Three Months Ended

  
   

December 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

Revenue

   $ 5,809     $ 7,896  

Gross margin

     30.0 %     25.1 %

Income from operations

   $ 97     $ 342  

 

Income from operations from the SBS segment was $97 compared to income from operations of $342 in the same period in Fiscal 2024. The decrease in income from operations was due to a decrease in revenue and gross profit in absolute dollar amounts. Operating expense remained fairly consistent at $1,645 and $1,640 for the three months ended December 31, 2024 and 2023, respectively. 

 

Industrial Electronics (IE)

 

The revenue, gross margin, and (loss) / income from operations for the IE segment for the three months ended December 31, 2024 and 2023 were as follows:

 

   

Three Months Ended

  
   

December 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

Revenue

   $ 2,801     $ 4,300  

Gross margin

     17.3 %     20.6 %

(Loss) / Income from operations

   $ (23 )   $ 294  

 

Loss from operations in the IE segment for the three months ended December 31, 2024, was $23, a decline of $317 from income from operations of $294 in the same period in Fiscal 2024. The decline was mainly attributable to a decrease in revenue and gross profit in absolute dollar amounts. Operating expense was $508 and $591 for the three months ended December 31, 2024 and 2023, respectively. The decrease in operating expenses was mainly contributed to lower selling expense and corporate overhead incurred for the period.

 

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Comparison of the Six Months Ended December 31, 2024, and December 31, 2023

 

The following table sets forth certain consolidated statements of income data as a percentage of revenue for the six months ended December 31, 2024 and 2023 respectively:

 

   

Six Months Ended

  
   

Dec. 31,

    

Dec. 31,

  
   

2024

    

2023

  
                 

Revenue

     100.0 %     100.0 %

Cost of sales

     75.4 %     75.8 %

Gross Margin

     24.6 %     24.2 %

Operating expense:

                

General and administrative

     21.3 %     17.9 %

Selling

     1.8 %     2.0 %

Research and development

     1.1 %     1.0 %

(Gain) / Loss on disposal of property, plant and equipment

     (0.3 )%     0.3 %

Total operating expense

     23.9 %     21.2 %

Income from Operations

     0.7 %     3.0 %

 

Overall Gross Margin

 

Overall gross margin as a percentage of revenue increased marginally by 0.4% to 24.6% for the six months ended December 31, 2024, from 24.2% for the same period of Fiscal 2024. Gross profits decreased by $834 to $4,540 for the six months ended December 31, 2024, from $5,374 for the same period in Fiscal 2024.

 

Gross profit margin as a percentage of revenue in the SBS segment increased by 2.3% to 27.9% for the six months ended December 31, 2024, as compared to 25.6% for the same period in Fiscal 2024. The Company managed to achieve a modest improvement in gross profit margin despite the decline in revenue in the SBS segment, driven by lower cost of sales which helped mitigate the impact of revenue decline in SBS segment. The lower cost of sales was due to reduced depreciation charges, as some of the assets in China operations were fully depreciated as at the end of second quarter of Fiscal 2024. In absolute dollar amounts, gross profit in the SBS segment for the six months ended December 31, 2024, was $3,536, a decrease of $326, compared to $3,862 in the same period in Fiscal 2024. The decrease in absolute dollar of gross profit is attributed to the decline in revenue.

 

Gross profit margin as a percentage of revenue in the IE segment decreased by 3.8% to 17.9% for the six months ended December 31, 2024, compared to 21.7% in the same period in Fiscal 2024. In absolute dollar amounts, gross profit in the IE segment for the six months ended December 31, 2024, was $1,024, indicating a decrease of $511, compared to $1,535 in the same period in Fiscal 2024. The decline is primarily attributable to lower demand for electronic component sales, coupled with an unfavorable product mix of equipment sales. In the IE segment, a portion of the cost of sales consists of fixed costs, which, when spread over lower revenue leads to a decrease in the gross profit margin.

 

Operating Expense

 

Operating expense for the six months ended December 31, 2024 and 2023 was as follows:

 

   

Six Months Ended

  
   

Dec. 31,

    

Dec. 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

General and administrative

   $ 3,929     $ 3,975  

Selling

     326       435  

Research and development

     202       216  

(Gain) / Loss on disposal of property, plant and equipment

     (47 )     72  

Total

   $ 4,410     $ 4,698  

 

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General and administrative expense decreased marginally by $46, or 1.2%, from $3,975 to $3,929 for the six months ended December 31, 2024, compared to the same period in Fiscal 2024. 

 

Selling expense decreased by $109, or 25.1%, from $435 to $326 for the six months ended December 31, 2024, compared to the same period in Fiscal 2024. The decrease in selling expenses was mainly due to lower commission costs, driven by a decline in commissionable revenue, as well as a decrease in business travel expenses.

 

Income from Operations

 

Income from operations was $130 for the six months ended December 31, 2024, a decrease of $546, compared to income of $676 from operations for the same period in Fiscal 2024. The decrease was mainly due to lower revenue and gross profit in absolute dollars amount across all business segments.

 

Interest Expense

 

Interest expense for the six months ended December 31, 2024 and 2023 was as follows:

 

   

Six Months Ended

  
   

Dec. 31,

    

Dec. 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

Interest expense

   $ 26     $ 46  

 

Interest expense was $26 for the six months ended December 31, 2024, a decrease of $20, or 43.5%, compared to $46 for the same period of Fiscal 2024 due to lower utilization of credit facilities.

 

Other Income

 

Other Income for the six months ended December 31, 2024 and 2023 was as follows:

 

   

Six Months Ended

  
   

Dec. 31,

    

Dec. 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

Interest income

   $ 183     $ 174  

Other rental income

     80       72  

Exchange gain / (loss)

     44       (177 )

Other miscellaneous income

     14       45  

Total

   $ 321     $ 114  

 

Other income increased by $207 from $114 to $321 for the six months ended December 31, 2024 compared to the same period in Fiscal 2024. The increase is primarily due to a favorable foreign currency effect for the six months ended December 31, 2024 compared to an unfavorable foreign currency impact during the same period in Fiscal 2024.

 

Government Grant

 

   

Six Months Ended

  
   

December 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  
                 

Government Grant

   $ 71     $ 77  

 

In the six months ended December 31, 2024, the Company received government grants amounting to $71, $62 of which was an incentive from the Singapore government for local resident recruitment, and $9 related to capital expenditure subsidy received from the China government.

 

During the same period in Fiscal 2024, the Company received government grants amounting to $77, $16 of which was financial assistance received from the Singapore government for local resident recruitment, and $57 from the U.S. government related to Employee Retention Credit (“ERC”). 

 

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Income Tax Expense

 

The Company's income tax expense was $190 and $132 for the six months ended December 31, 2024, and 2023, respectively. Income tax expense increased due to lower deferred tax assets in our Singapore operation, driven by lower provisions, which reduced the deductible temporary differences. This was partially offset by lower GILTI tax due to lower chargeable income derived from controlled foreign corporation.

 

Non-controlling Interest

 

As of December 31, 2024, we held a 55% interest in Trio-Tech (Malaysia) Sdn. Bhd., Trio-Tech (Kuala Lumpur) Sdn. Bhd., SHI International Pte. Ltd., and 52% interest in PT. SHI Indonesia. We also held a 76% interest in Prestal Enterprise Sdn. Bhd and 51% interest in Trio-tech JiangSu Co. Ltd. The share of non-controlling interest in the net income from the subsidiaries for the six months ended December 31, 2024 was $35 compared to the share of loss from the non-controlling interest of $44 for the same period of Fiscal 2024. The increase in the net income shared by non-controlling interest in the subsidiaries was attributable to the increase in net income generated by the Company’s Malaysia and China operations.

 

Net Income Attributable to Trio-Tech International Common Shareholders

 

Net income attributable to Company’s common shareholders was $271 for the six months ended December 31, 2024, a decrease of $466, compared to the net income of $737 for the same period in Fiscal 2024.

 

Earnings per Share

 

Basic earnings per share from continuing operations was $0.06 for six months ended December 31, 2024 as compared to basic earnings per share of $0.18 for the same period of Fiscal 2024. Basic earnings per share from discontinued operations were $nil for six months ended December 31, 2024 and December 31, 2023 respectively.

 

Diluted earnings per share from continuing operations were $0.06 for six months ended December 31, 2024 as compared to diluted earnings per share of $0.17 for the same period of Fiscal 2024. Diluted earnings per share from discontinued operations were $nil for six months ended December 31, 2024 and December 31, 2023.

 

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Segment Information

 

The revenue, gross margin, and income from operations for each segment for the six months ended December 31, 2024 and 2023 are presented below. As the revenue and gross margin for each segment were discussed in the previous section, only the comparison of income / (loss) from operations is discussed below.

 

Semiconductor Back-end Solutions (SBS)

 

The revenue, gross margin and income from operations for the SBS segment for the six months ended December 31, 2024 and 2023 were as follows:

 

   

Six Months Ended

  
   

Dec. 31,

    

Dec. 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

Revenue

   $ 12,688     $ 15,072  

Gross margin

     27.9 %     25.6 %

Income from operations

   $ 274     $ 302  

 

Income from operations from the SBS segment was $274 compared to income from operations of $302 in the same period in Fiscal 2024. The decrease in income from operations was mainly due to a decrease in revenue in absolute dollar amounts. Operating expense was $3,262 and $3,560 for the six months ended December 31, 2024 and 2023, respectively. The decrease in operating expense was mainly due to a gain from disposal of fixed asset, lower performance-based remunerations and also lower selling expenses for the six months ended December 31, 2024 compared to the same period in Fiscal 2024

 

- 38 -
Table of Contents

 

Industrial Electronics (IE)

 

The revenue, gross margin, and (loss) / income from operations for the IE segment for the six months ended December 31, 2024 and 2023 were as follows:

 

   

Six Months Ended

  
   

Dec. 31,

    

Dec. 31,

  
   

2024

    

2023

  
   

(Unaudited)

    

(Unaudited)

  

Revenue

   $ 5,715     $ 7,083  

Gross margin

     17.9 %     21.7 %

(Loss) / Income from operations

   $ (30 )   $ 484  

 

Loss from operations in the IE segment for the six months ended December 31, 2024, was $30, a decline of $514 as compared to income from operations of $484 in the same period in Fiscal 2024. The decline was mainly attributable to a decrease in gross profit in absolute dollar amounts. Operating expense was $1,054 and $1,051 for the six months ended December 31, 2024 and 2023, respectively. 

 

- 39 -
Table of Contents

 

Financial Condition

 

During the six months ended December 31, 2024, total assets decreased by $2,740 to $39,800 compared to $42,540 as of  June 30, 2024. The decrease was primarily due to a decrease in trade accounts receivable, inventories, operating lease right-of-use assets and property, plant and equipment, which was partially offset by an increase in cash and cash equivalents and other receivables.

 

Cash and cash equivalents were $10,323 at December 31, 2024, reflecting an increase of $288 from $10,035 at June 30, 2024.  The increase in cash and cash equivalents was offset by a $275 decrease in short-term deposits, which declined from $6,497 as of June 30, 2024, to $6,222 as of December 31, 2024, due to the maturity of deposits that were not reinvested and instead used for operating purposes.

 

The trade accounts receivable balance as of December 31, 2024 decreased by $780 to $9,881, from $10,661 at June 30, 2024, primarily due to the decrease in revenue between June 30, 2024 and December 31, 2024. The number of days’ sales outstanding in accounts receivables for the group was 101 days and 90 days for the second quarter of Fiscal 2025 and the end of Fiscal 2024, respectively.

 

Other receivables at December 31, 2024, were $961, an increase of $420, compared to $541 at June 30, 2024. The increase was mainly due to advance payments to creditors made by Singapore operations, which the sales are expected to be realized in the coming fiscal quarters.

 

Inventories at December 31, 2024, were $1,957, a decrease of $1,205, compared to $3,162 at June 30, 2024. The decrease in inventories was primarily due to the fulfilment of orders in our Singapore operations, coupled with a reduction in purchase volumes in response to a slower customer demand.

 

Prepaid expense was $548 as at December 31, 2024 compared to $536 at June 30, 2024. This mainly relates to the prepayment for insurance, rental and software license fee.

 

Investment properties’ net in China was $372 at December 31, 2024 and $407 at June 30, 2024. The decrease was primarily due to the depreciation charged and foreign currency exchange movement between June 30, 2024 and December 31, 2024.

 

Property, plant and equipment decreased by $343 from $5,937 at June 30, 2024, to $5,594 at December 31, 2024, mainly due to depreciation charged for the period.

 

Other assets decreased by $103 to $129 at December 31, 2024 compared to $232 at June 30, 2024. Other assets mainly comprise of rental and utilities deposits.

 

Accounts payable decreased by $1,371 to $1,804 at December 31, 2024, compared to $3,175 at June 30, 2024 which is consistent with the decline in inventory.

 

Accrued expense decreased by $939 to $2,695 at December 31, 2024, as compared to $3,634 at June 30, 2024. The decrease in accrued expense was mainly due to payments made out of provisions and a decrease in accrued purchases.

 

Contract liabilities decreased by $33 to $721 at December 31, 2024 as compared to $754 at June 30, 2024 .

 

- 40 -
Table of Contents

 

Bank loans payable decreased by $92 to $782 as of December 31, 2024, as compared to $874 as of June 30, 2024. The decrease was mainly due to the repayment made coupled with foreign currency exchange movement between June 30, 2024 and December 31, 2024 .

 

Finance leases decreased by $37 to $54 at December 31, 2024, as compared to $91 at June 30, 2024. This was due to the repayments of leases in our Singapore and Malaysia operations.

 

Operating lease right-of-use assets and the corresponding lease liability decreased by $690 to $1,197 at December 31, 2024, as compared to $1,887 at June 30, 2024. This was due to operating lease expense charged for the period and also partially driven by a shift in our business model in one of our China operations, resulting in a decrease in operating lease right-of-use assets and the corresponding lease liabilities due to the reduced need for space.

 

Other non-current liabilities increased to $30 as at December 31, 2024, as compared to $27 at June 30, 2024. 

 

Liquidity Comparison

 

Net cash provided by operating activities decreased by $1,113 to an inflow of $254 for the six months ended December 31, 2024, from an inflow of $1,367 for the same period in Fiscal 2024. The decrease in net cash provided by operating activities was primarily due to higher payments to trade creditors by $5,430 and lower depreciation of $1,362 for the six months ended December 31, 2024 as compared to the six months ended December 31, 2023. These are partially offset by higher cash inflow for trade receivables and inventories for the six months ended December 31, 2024 with a difference of $3,297 and $2,469 respectively, compared to the same period in Fiscal 2024

 

Net cash provided by investing activities decreased by $896 to $240 for the six months ended December 31, 2024 compared with the same period in Fiscal 2024. This was primarily due to a net withdrawal from unrestricted term deposits which matured for the six months ended December 31, 2023, and were held for working capital purposes.

 

Net cash used in financing activities for the six months ended December 31, 2024, was $183, representing a decrease of $463, compared to cash inflow of $280 during the six months ended December 31, 2023. The changes in cashflow from financing activities was mainly due to cash inflow from the stock option exercise and net proceeds from lines of credit for the six months ended December 31, 2023. which were not present during the six months ended December 31, 2024

 

The Company filed a shelf registration statement with the Securities and Exchange Commission, pursuant to which we may raise capital of $10,000,000 of any combination of securities (common stock, warrants, debt securities or units) for expansion of the Company’s testing capacity and working capital purposes if necessary.

 

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

ITEM 4.  CONTROLS AND PROCEDURES

 

An evaluation was carried out by the Company’s Chief Executive Officer and Chief Financial Officer of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of December 31, 2024, the end of the period covered by this Form 10-Q. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures were effective at a reasonable level.

 

Changes in Internal Control Over Financial Reporting

 

There has been no change in the Company’s internal control over financial reporting during the fiscal quarter ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

- 41 -
Table of Contents

 

TRIO-TECH INTERNATIONAL

PART II. OTHER INFORMATION

 

ITEM 1.          LEGAL PROCEEDINGS

 

Not applicable.

 

ITEM 1A.       RISK FACTORS

 

Not applicable.

 

ITEM 2.          UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

Not applicable.

 

ITEM 3.          DEFAULTS UPON SENIOR SECURITIES

 

Not applicable.

 

ITEM 4.          MINE SAFETY DISCLOSURES

 

Not applicable.

 

 

ITEM 5.         OTHER INFORMATION

 

Not applicable.

 

 

ITEM 6.          EXHIBITS

 

31.1

Rule 13a-14(a) Certification of Principal Executive Officer of Registrant

31.2

Rule 13a-14(a) Certification of Principal Financial Officer of Registrant

32

Section 1350 Certification

101.INS

Inline XBRL Instance Document

101.SCH

Inline XBRL Taxonomy Extension Schema

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

- 42 -
Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

TRIO-TECH INTERNATIONAL
 

By:

/s/ Srinivasan Anitha

SRINIVASAN ANITHA

Chief Financial Officer

(Principal Financial Officer)

Dated: February 13, 2025

 

 

- 43 -

Exhibit 31.1

CERTIFICATIONS

 

I, S. W. Yong, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Trio-Tech International, a California corporation;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Dated: February 13, 2025

/s/ S. W. Yong

S. W. Yong, Chairman and Chief Executive Officer

(Principal Executive Officer)

 

 

Exhibit 31.2

 

I, Srinivasan Anitha, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Trio-Tech International, a California corporation;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Dated: February 13, 2025

 

/s/ Srinivasan Anitha

Srinivasan Anitha , Chief Financial Officer (Principal Financial Officer)

 

 

Exhibit 32

 

 

SECTION 1350 CERTIFICATION

 

Each of the undersigned, S.W. Yong, Chairman and Chief Executive Officer of Trio-Tech International, a California corporation (the “Company”), and Srinivasan Anitha, Chief Financial Officer of the Company, do hereby certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his or her knowledge (1) the quarterly report on Form 10-Q of the Company for the three months ended December 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

/s/ S. W. Yong

Name: S. W. Yong

Title: Chairman and Chief Executive Officer

Dated: February 13, 2025

 

 

/s/ Srinivasan Anitha

Name: Srinivasan Anitha

Title: Chief Financial Officer

Dated: February 13, 2025

 

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 
v3.25.0.1
Document And Entity Information - shares
 6 Months Ended
Dec. 31, 2024
Feb. 01, 2025
Document Information [Line Items]    
Entity Central Index Key 0000732026  
Entity Registrant Name TRIO-TECH INTERNATIONAL  
Amendment Flag false  
Current Fiscal Year End Date --06-30  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2025  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Dec. 31, 2024  
Document Transition Report false  
Entity File Number 1-14523  
Entity Incorporation, State or Country Code CA  
Entity Tax Identification Number 95-2086631  
Entity Address, Address Line One Block 1008  
Entity Address, City or Town Toa Payoh North  
Entity Address, Country SG  
Entity Address, Postal Zip Code 318996  
City Area Code 65  
Local Phone Number 6265 3300  
Title of 12(b) Security Common Stock, no par value  
Trading Symbol TRT  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   4,251,555
v3.25.0.1
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
CURRENT ASSETS:    
Cash and cash equivalents $ 10,323 $ 10,035
Short-term deposits 6,222 6,497
Trade accounts receivable, less allowance for expected credit losses of $80 and $209, respectively 9,881 10,661
Other receivables 961 541
Inventories, less provision for obsolete inventories of $771 and $679, respectively 1,957 3,162
Prepaid expense and other current assets 548 536
Restricted term deposits 756 750
Total current assets 30,648 32,182
NON-CURRENT ASSETS:    
Deferred tax assets 68 124
Investment properties, net 372 407
Property, plant and equipment, net 5,594 5,937
Operating lease right-of-use assets 1,197 1,887
Other assets 129 232
Restricted term deposits 1,792 1,771
Total non-current assets 9,152 10,358
TOTAL ASSETS 39,800 42,540
CURRENT LIABILITIES:    
Accounts payable 1,804 3,175
Accrued expense 2,695 3,634
Contract liabilities 721 754
Income taxes payable 288 379
Current portion of bank loans payable 258 261
Current portion of finance leases 42 57
Current portion of operating leases 943 1,162
Total current liabilities 6,751 9,422
NON-CURRENT LIABILITIES:    
Bank loans payable, net of current portion 524 613
Finance leases, net of current portion 12 34
Operating leases, net of current portion 254 725
Income taxes payable, net of current portion 0 141
Other non-current liabilities 30 27
Total non-current liabilities 820 1,540
TOTAL LIABILITIES 7,571 10,962
SHAREHOLDERS’ EQUITY:    
Common stock, no par value, 15,000,000 shares authorized; 4,250,305 shares issued outstanding as at December 31, 2024 and June 30, 2024, respectively 13,325 13,325
Paid-in capital 5,656 5,531
Accumulated retained earnings 12,084 11,813
Accumulated other comprehensive income-translation adjustments 778 660
Total shareholders’ equity 31,843 31,329
Non-controlling interest 386 249
TOTAL EQUITY 32,229 31,578
TOTAL LIABILITIES AND EQUITY $ 39,800 $ 42,540
v3.25.0.1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
$ / shares in Thousands, $ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Trade accounts receivable, allowance for expected credit loss $ 80 $ 209
Provision for obsolete inventory $ 771 $ 679
Common stock, par value (in dollars per share) $ 0 $ 0
Common stock, shares authorized (in shares) 15,000,000 15,000,000
Common stock, shares issued (in shares) 4,250,305 4,250,305
Common stock, shares outstanding (in shares) 4,250,305 4,250,305
v3.25.0.1
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Revenue        
Revenues $ 8,619 $ 12,202 $ 18,418 $ 22,168
Cost of Sales 6,401 9,348 13,878 16,794
Gross Margin 2,218 2,854 4,540 5,374
Operating Expense:        
General and administrative 1,965 1,817 3,929 3,975
Selling 176 248 326 435
Research and development 114 131 202 216
(Gain) / Loss on disposal of property, plant and equipment (34) (19) (47) 72
Total operating expense 2,221 2,177 4,410 4,698
(Loss) / Income from Operations (3) 677 130 676
Other Income / (Expense)        
Interest expense (13) (22) (26) (46)
Other income / (expense), net 686 (82) 321 114
Government grant 5 4 71 77
Total other income / (expense) 678 (100) 366 145
Income from Continuing Operations before Income Taxes 675 577 496 821
Income Tax Expense (139) (95) (190) (132)
Income from Continuing Operations before Non-controlling Interest, Net of Taxes 536 482 306 689
Discontinued Operations        
(Loss) / Income from discontinued operations, net of tax (7) 4 0 4
Net Income 529 486 306 693
Less: Net income / (loss) attributable to non-controlling interest 22 (21) 35 (44)
Net Income Attributable to Common Shareholders 507 507 271 737
Amounts Attributable to Common Shareholders:        
Income from continuing operations, net of tax 511 503 271 730
(Loss) / Income from discontinued operations, net of tax (4) 4 0 7
Net Income Attributable to Common Shareholders $ 507 $ 507 $ 271 $ 737
Basic Earnings per Share:        
Basic earnings per share from continuing operations (in dollars per share) $ 0.12 $ 0.12 $ 0.06 $ 0.18
Basic earnings per share from discontinued operations (in dollars per share) 0 0 0 0
Basic Earnings per Share from Net Income (in dollars per share) 0.12 0.12 0.06 0.18
Diluted Earnings per Share:        
Diluted earnings per share from continuing operations (in dollars per share) 0.12 0.12 0.06 0.17
Diluted earnings per share from discontinued operations (in dollars per share) 0 0 0 0
Diluted Earnings per Share from Net Income (in dollars per share) [1] $ 0.12 $ 0.12 $ 0.06 $ 0.17
Weighted Average Number of Common Shares Outstanding        
Basic (in shares) 4,250 4,120 4,250 4,109
Dilutive effect of stock options (in shares) 153 139 119 161
Number of Shares Used to Compute Earnings Per Share Diluted (in shares) 4,403 4,259 4,369 4,270
Semiconductor Back-end Solutions [Member]        
Revenue        
Revenues $ 5,809 $ 7,896 $ 12,688 $ 15,072
Industrial Electronics [Member]        
Revenue        
Revenues 2,801 4,300 5,715 7,083
Product and Service, Other [Member]        
Revenue        
Revenues $ 9 $ 6 $ 15 $ 13
[1] For periods in which the Company has reported net loss, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, because dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.
v3.25.0.1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Comprehensive (Loss) / Income Attributable to Common Shareholders:        
Net income $ 529 $ 486 $ 306 $ 693
Foreign currency translation, net of tax (1,794) 1,158 220 975
Comprehensive (Loss) / Income (1,265) 1,644 526 1,668
Less: comprehensive income / (loss) attributable to non- controlling interest (2) (72) 137 (74)
Comprehensive (Loss) / Income Attributable to Common Shareholders $ (1,263) $ 1,716 $ 389 $ 1,742
v3.25.0.1
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)
$ in Thousands
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Noncontrolling Interest [Member]
Total
Balance (in shares) at Jun. 30, 2023 4,097,000          
Balance at Jun. 30, 2023 $ 12,819 $ 5,066 $ 10,763 $ 758 $ 165 $ 29,571
Stock option expense 0 90 0 0 0 90
Net income 0 0 737 0 (44) 693
Translation adjustment $ 0 0 0 1,005 (30) 975
Exercise of stock option (in shares) 64          
Exercise of stock option $ 199 0 0 0 0 199
Balance (in shares) at Dec. 31, 2023 4,161,000          
Balance at Dec. 31, 2023 $ 13,018 5,156 11,500 1,763 91 31,528
Balance (in shares) at Jun. 30, 2024 4,250,000          
Balance at Jun. 30, 2024 $ 13,325 5,531 11,813 660 249 31,578
Stock option expense 0 125 0 0 0 125
Net income 0 0 271 0 35 306
Translation adjustment $ 0 0 0 118 102 220
Balance (in shares) at Dec. 31, 2024 4,250,000          
Balance at Dec. 31, 2024 $ 13,325 $ 5,656 $ 12,084 $ 778 $ 386 $ 32,229
v3.25.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Cash Flow from Operating Activities    
Net income $ 306 $ 693
Adjustments to reconcile net income to net cash flow provided by operating activities    
Unrealized foreign exchange (gain) / loss (100) 91
Depreciation and amortization 1,422 2,784
(Gain) / Loss on sales of property, plant and equipment (47) 71
Provision for obsolete inventories, net 104 14
Stock compensation 125 90
Bad debt recovery (14) (3)
Allowance for expected credit losses 61 0
Accrued interest expense, net accrued interest income (10) (35)
Payment of interest portion of finance lease (2) (3)
Warranty expense / (recovery), net 0 15
Reversal of income tax provision (6) (7)
Deferred tax expense / (benefits) 50 (51)
Changes in operating assets and liabilities, net of acquisition effects    
Trade accounts receivable 735 (2,562)
Other receivables (420) (90)
Other assets 97 (58)
Inventories 1,127 (1,342)
Prepaid expense and other current assets (12) 129
Accounts payable, accrued expense and contract liabilities (2,283) 3,147
Income taxes payable (160) (259)
Other non-current liabilities 3 (564)
Operating lease liabilities (722) (693)
Net Cash Provided by Operating Activities 254 1,367
Cash Flow from Investing Activities    
Withdrawal from unrestricted term deposits, net 4,309 2,666
Investment in unrestricted term deposits, net (4,002) (1,641)
Additions to property, plant and equipment (252) (158)
Proceeds from disposal of property, plant and equipment 185 0
Proceeds from disposal of assets held-for-sale 0 269
Net Cash Provided by Investing Activities 240 1,136
Cash Flow from Financing Activities    
Payment on lines of credit (98) (575)
Payment of bank loans (140) (241)
Payment of finance leases (38) (55)
Proceeds from exercising stock options 0 199
Proceeds from lines of credit 93 952
Net Cash (Used in) / Provided by Financing Activities (183) 280
Effect of Changes in Exchange Rate 4 685
Net Increase in Cash, Cash Equivalents, and Restricted Cash 315 3,468
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 12,556 10,038
Cash, Cash Equivalents, and Restricted Cash at End of Period 12,871 13,506
Supplementary Information of Cash Flows    
Interest 12 21
Income taxes 326 371
Cash 10,323 10,966
Restricted Term-Deposits in Current Assets 756 762
Restricted Term-Deposits in Non-Current Assets 1,792 1,778
Total Cash, Cash Equivalents, and Restricted Cash Shown in Statements of Cash Flows $ 12,871 $ 13,506
v3.25.0.1
Note 1 - Organization and Basis of Presentation
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1.

ORGANIZATION AND BASIS OF PRESENTATION

 

Trio-Tech International (the “Company”, or “TTI”) was incorporated in fiscal year ended June 30, 1958 under the laws of the State of California. The Company has traditionally been a provider of reliability test equipment and services to the semiconductor and other industries. The Company provides comprehensive electrical, environmental, and burn-in testing services to semiconductor manufacturers in Asia. The Company designs and manufactures an extensive range of burn-in and reliability test equipment used in the “back-end” manufacturing processes of semiconductors. The Company also designs, manufactures and distributes an extensive range of test, process and other equipment used in the manufacturing processes of customers in various industries in the consumer and industrial market. The Company also acts as a design-in reseller of a wide range of camera modules, LCD displays and touch screen panels. 

 

In the first quarter of fiscal year ended June 30, 2025 (“Fiscal 2025”), we made changes in our business strategy in an effort to better align with our focus areas and to streamline operations. While the semiconductor industry is and will remain a major market for Trio-Tech, an important component of our strategy is to reduce our historic concentration on this industry. As a result, we have decided to organize our operating businesses based on the markets that we serve. Beginning in fiscal 2025, we report our financial performance based on our new segments, Semiconductor Back-end Solutions and Industrial Electronics.

 

TTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand, Indonesia, Cayman Islands and China as follows:

 

  

Ownership

 

Location

Express Test Corporation (Dormant)

  100%

Van Nuys, California

Trio-Tech Reliability Services (Dormant)

  100%

Van Nuys, California

KTS Incorporated, dba Universal Systems (Dormant)

  100%

Van Nuys, California

European Electronic Test Centre (Dormant)

  100%

Cayman Islands

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. (100% owned by Trio-Tech Malaysia Sdn. Bhd.)#

  55%

Selangor, Malaysia

Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.)

  76%

Selangor, Malaysia

Trio-Tech (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) (95% owned by SHI International Pte. Ltd.)

  52%

Batam, Indonesia

Trio-Tech (Tianjin) Co., Ltd. *

  100%

Tianjin, China

Trio-Tech (Jiangsu) Co., Ltd. (51% owned by Trio-Tech (SIP) Co., Ltd.)

  51%

Suzhou, China

 

* 100% owned by Trio-Tech International Pte. Ltd.

#  Trio-Tech (Kuala Lumpur) Sdn. Bhd. has been gazetted and is in the process of being struck off from the register.

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements are presented in U.S. dollars unless otherwise stated. The accompanying condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report for the fiscal year ended  June 30, 2024 (“Fiscal 2024”). The Company’s operating results are presented based on the translation of foreign currencies using the respective quarter’s average exchange rate.

 

The results of operations for the six months ended December 31, 2024 are not necessarily indicative of the results that may be expected for any other interim period or for the full year ending June 30, 2025.

 

Use of Estimates — The preparation of consolidated financial statements in conformity with GAAP 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 expense during the reporting period. Among the more significant estimates included in these consolidated financial statements are the estimated allowance for credit losses on account receivables, reserve for obsolete inventory, impairments, provision of income tax, stock options and the deferred income tax asset allowance. Actual results could materially differ from those estimates.

 

Significant Accounting Policies. There have been no material changes to our significant accounting policies summarized in Note 1 “Basis of Presentation and Summary of Significant Accounting Policies” to our consolidated Financial Statements included in our Annual Report on Form 10-K for Fiscal 2024.

 

Recasting of Certain Prior Period Information - In response to changes in our business strategy, during the first quarter of fiscal 2025, the Company’s chief operating decision maker, who is also our Chief Executive Officer, requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, beginning in fiscal 2025, we report our financial performance based on our new segments described in Note 14 – Segment Information. We have recast certain prior period amounts to conform to the way we internally manage and monitor segment performance during fiscal 2025. This change primarily impacted Note 14 – Segment Information, with no impact on consolidated net income or cash flows.

 

Comparative figures - Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net income.

 
v3.25.0.1
Note 2 - New Accounting Pronouncements
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Accounting Standards Update and Change in Accounting Principle [Text Block]

2.

NEW ACCOUNTING PRONOUNCEMENTS

 

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The new guidance requires enhanced disclosures about significant segment expense. This standard update is effective for Company beginning in the fiscal year ending June 30, 2025 and interim period reports beginning in the first quarter of the fiscal year ending June 30, 2026. Early adoption is permitted on a retrospective basis. The Company is currently evaluating the impact of this ASU on segment disclosure.

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The new guidance requires enhanced disclosures about income tax expense. This standard update is effective for Company beginning in the fiscal year ending June 30, 2026. Early adoption is permitted on a prospective basis. The Company is currently evaluating the impact of this ASU on annual income tax disclosures.

 

In November 2024, the FASB released ASU No. 2024-03, Disaggregation of Income Statement Expenses. This ASU’s purpose is to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. Early adoption is permitted. This standard update is effective for Company beginning in the fiscal year ending June 30, 2029.

 

New pronouncements issued but not yet effective until after December 31, 2024, are not expected to have a significant effect on the Company’s consolidated financial position or results of operations.

 
v3.25.0.1
Note 3 - Term Deposits
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Term Deposits [Text Block]

3.

TERM DEPOSITS

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Short-term deposits

 $6,592  $6,540 

Currency translation effect on short-term deposits

  (370)  (43)

Total short-term deposits

  6,222   6,497 

Restricted term deposits - Current

  804   750 

Currency translation effect on restricted term deposits

  (48)  - 

Total restricted term deposits - Current

  756   750 

Restricted term deposits – Non-current

  1,897   1,773 

Currency translation effect on restricted term deposits

  (105)  (2)

Total restricted term deposits - Non-current

  1,792   1,771 

Total term deposits

 $8,770  $9,018 

 

Restricted deposits represent the amount of cash pledged to secure loans payable or trade financing granted by financial institutions, serve as collateral for public utility agreements such as electricity and water, and performance bonds related to customs duty payable. Restricted deposits are classified as current and non-current depending on whether they relate to long-term or short-term obligations. Restricted deposits of $756 as at  December 31, 2024 are classified as current assets as they relate to short-term trade financing. On the other hand, restricted deposits of $1,792 as at  December 31, 2024 are classified as non-current assets as they relate to long-term obligations and will become unrestricted only upon discharge of the obligations. 

 
v3.25.0.1
Note 4 - Trade Accounts Receivable and Allowance for Expected Credit Losses
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4.

TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR EXPECTED CREDIT LOSSES

 

Accounts receivable are customer obligations due under normal trade terms. The Company performs continuing credit evaluations of its customers’ financial conditions, and although management generally does not require collateral, letters of credit may be required from the customers in certain circumstances.

 

The allowance for trade receivable represents management’s expected credit losses in our trade receivables as of the date of the financial statements. The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be inherent in the trade receivables, but that have not been specifically identified.

 

The following table represents the changes in the allowance for expected credit losses: 

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Beginning

 $209  $217 

Additions charged to expense

  61   12 

Recovered

  (14)  (15)

Written off

  (178)  (2)

Currency translation effect

  2   (3)

Ending

 $80  $209 

 
v3.25.0.1
Note 5 - Loans Receivable From Property Development Projects
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Loan Receivable From Property Development Projects [Text Block]

5.

LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS

 

The following table presents Trio-Tech (Chongqing) Co. Ltd (“TTCQ”)’s loan receivables from property development projects in China as of December 31, 2024.

 

 

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   274 

Less: allowance for expected credit losses

  (2,000)  (274)

Net loan receivables from property development projects

  -   - 

 

The short-term loan receivables amounting to renminbi (“RMB”) 2,000, or approximately $274 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 the fiscal year ended June 30, 2011 (“Fiscal 2011”). Based on TTI’s financial policy, an allowance for expected credit losses of $274 on the investment in JiangHuai was recorded during the fiscal year ended June 30, 2014 (“Fiscal 2014”). TTCQ did not generate other income from JiangHuai for the quarter ended  December 31, 2024 or for Fiscal 2024. TTCQ is in the legal process of recovering the outstanding amount of approximately $274.

 
v3.25.0.1
Note 6 - Inventories
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Inventory Disclosure [Text Block]

6.

INVENTORIES

 

Inventories consisted of the following:

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Raw materials

 $1,413  $1,668 

Work in progress

  772   1,048 

Finished goods

  520   1,129 

Less: provision for obsolete inventories

  (771)  (679)

Currency translation effect

  23   (4)
  $1,957  $3,162 

 

The following table represents the changes in provision for obsolete inventories:

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Beginning

 $679  $648 

Additions charged to expense

  97   65 

Usage – disposition

  -   (21)

Currency translation effect

  (5)  (13)

Ending

 $771  $679 

 
v3.25.0.1
Note 7 - Investment Properties
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Investment Property In China [Text Block]

7.

INVESTMENT PROPERTIES

 

The following table presents the Company’s investment in properties in China as of December 31, 2024. The exchange rate is based on the market rate as of December 31, 2024.

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Property I – MaoYe Property

        

Cost

 $301  $301 

Less: Accumulated depreciation

  (243)  (226)

Currency translation effect

  (12)  (22)
  $46   53 

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Property II – JiangHuai Property

        

Cost

 $-  $580 

Less: Accumulated depreciation

  -   (360)

Currency translation effect

  -   (83)

Carrying value of relinquished asset

 $-  $137 

Cost of acquired asset

  137   - 

Less: Accumulated depreciation of acquired asset

  (12)  - 

Currency translation effect

  (1)  - 
  $124  $137 

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Property III – FuLi Property

        

Cost

 $648  $648 

Less: Accumulated Depreciation

  (368)  (338)

Currency translation effect

  (78)  (93)
  $202  $217 

 

Rental Property I – MaoYe Property

 

MaoYe Property generated a rental income of $6 and $12 during the three and six months ended December 31, 2024, as compared to $6 and $12 for the same period in Fiscal 2024.

 

A lease agreement was entered into on February 1, 2023 for a period of 4 years at a monthly rate of RMB15, or approximately $2. Pursuant to the agreement, monthly rental will increase by 5% after the second year.

 

Depreciation expense for MaoYe Property was $3 and $7 for the three and six months ended December 31, 2024, as compared to $4 and $8 for the same period in Fiscal 2024.

 

Rental Property II – JiangHuai

 

During the year ended June 30, 2010 (“Fiscal 2010”), TTCQ purchased eight units of commercial property in Chongqing, China, from JiangHuai for RMB 3,600, or approximately $580. The title deeds for these properties had not been received by TTCQ since the entire project had not been completed by JiangHuai. JiangHuai is currently in liquidation and the local court had appointed a Management Company to manage the liquidation process and address claims from stakeholders. To expedite the resolution, TTCQ agreed to settle the claims through an asset exchange. The court directed the Management Company to engage a third-party valuer to assess the assets involved. Based on the valuation, the court determined that TTCQ would receive title deeds for 5 shop units having a total area of 547.67 m² in exchange of the claim made for the 8 units without title deeds. In July 2024, the court concluded that the value of these 5 shop units was equivalent to the original purchase price of 8 shop units of RMB 3,600 and issued a court order to process title deeds for the 5 units in the name of TTCQ. The carrying value of the JiangHuai asset group as at  June 30, 2024 was RMB 990. Applying the guidance in FASB Accounting Standards Codification ("ASC") Topic 845, Nonmonetary transactions, this transaction lacks commercial substance and hence, the JiangHuai asset group will continue to be accounted based on the carrying value of the exchanged investment properties. The title deeds have been received as of September 2024.

 

JiangHuai Property did not generate any rental income for the three and six months ended December 31, 2024 and 2023.

 

Depreciation expense for JiangHuai was $6 and $12 for the three and six months ended December 31, 2024, as compared to $6 and $12 for the same period in Fiscal 2024.

 

Rental Property III – FuLi

 

FuLi Property generated a rental income of $3 for the three and six months ended December 31, 2024, as compared to $Nil and $1 for the same period in Fiscal 2024.

 

A lease agreement was entered into October 10, 2024 for a period of 4 years at a monthly rate of RMB9, or approximately $1. Pursuant to the agreement, monthly rental will increase by 5% after the second year.

 

Depreciation expense for FuLi was $7 and $13 for the three and six months ended December 31, 2024, as compared to $7 and $14 for the same period in Fiscal 2024.

 

Summary

 

Total rental income for all investment properties in China was $9 and $15 for the three and six months ended December 31, 2024, as compared to $6 and $13 for the same period in Fiscal 2024.

 

Depreciation expense for all investment properties in China was $16 and $32 for the three and six months ended December 31, 2024, as compared to $17 and $34 for the same period in Fiscal 2024.

 
v3.25.0.1
Note 8 - Other Assets
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Other Assets Disclosure [Text Block]

8.

OTHER ASSETS

 

Other assets consisted of the following:

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     

Deposits for rental and utilities and others

 $122  $234 

Downpayment for Purchase of Investment Properties*

  1,580   1,580 

Less: Provision for Impairment

  (1,580)  (1,580)

Currency translation effect

  7   (2)

Total

 $129  $232 

 

*Down payment for purchase of investment properties included downpayment relating to shop lots in Singapore Themed Resort Project in Chongqing, China. The shop lots are to be delivered to TTCQ upon completion of the construction. The initial targeted date of completion was in Fiscal 2017. However, progress has stalled because the developer is currently reorganizing assets and renegotiating with the creditors to complete the project.

 

During the fourth quarter of Fiscal 2021, the Company accrued an impairment charge of $1,580 related to the doubtful recovery of the down payment on property in the Singapore Themed Resort Project in Chongqing, China. The Company elected to take this non-cash impairment charge due to 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 in China and its relevant government policies.

 
v3.25.0.1
Note 9 - Lines of Credit
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Line of Credit [Text Block]

9.

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 ready and adequate access to funds in global markets.

 

As of December 31, 2024, the Company had certain lines of credit that are collateralized by restricted deposits.

 

Entity with

  

Type of

  

Interest

  

Credit

    

Unused

  

Facility

  

Facility

  

Rate

  

Limitation

    

Credit

  

Trio-Tech International Pte. Ltd., Singapore

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $3,895     $3,615  

Universal (Far East) Pte. Ltd.

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $1,837     $1,770  

Trio-Tech Malaysia Sdn. Bhd.

  

Revolving credit

  

Cost of Funds Rate +2%

   $334     $334  

 

As of June 30, 2024, the Company had certain lines of credit that are collateralized by restricted deposits.

 

Entity with

  

Type of

  

Interest

  

Credit

    

Unused

  

Facility

  

Facility

  

Rate

  

Limitation

    

Credit

  

Trio-Tech International Pte. Ltd., Singapore

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $ 3,907     $ 3,626  

Universal (Far East) Pte. Ltd.

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $ 1,843     $ 1,818  

Trio-Tech Malaysia Sdn. Bhd.

  

Revolving credit

  

Cost of Funds Rate +2%

   $ 318     $ 318  

 
v3.25.0.1
Note 10 - Accrued Expense
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Accounts Payable and Accrued Liabilities Disclosure [Text Block]

10.

ACCRUED EXPENSE

 

Accrued expense consisted of the following:

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Payroll and related costs

 $1,148  $1,737 

Commissions

  152   164 

Legal and audit

  211   328 

Sales tax and witholding Tax

  93   34 

Sales rebate

  100   81 

Travelling Expenses

  44   25 

Utilities

  201   231 

Warranty

  19   27 

Accrued purchase of materials and property, plant and equipment

  178   553 

Provision for reinstatement

  380   380 

Other accrued expense

  146   52 

Currency translation effect

  23   22 

Total

 $2,695  $3,634 

 
v3.25.0.1
Note 11 - Assurance Warranty Accrual
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Product Warranty Disclosure [Text Block]

11.

ASSURANCE WARRANTY ACCRUAL

 

The Company provides for the estimated costs that may be incurred under its warranty program at the time the sale is recorded. The warranty period of the products manufactured by the Company is generally one year or the warranty period agreed 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.

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Beginning

 $27  $24 

Additions charged to cost and expense

  -   21 

Utilization

  (8)  (20)

Currency translation effect

  -   2 

Ending

 $19  $27 

 
v3.25.0.1
Note 12 - Bank Loans Payable
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

12.

BANK LOANS PAYABLE

 

Bank loans payable consisted of the following:

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Note payable denominated in the Malaysian Ringgit for expansion plans in Malaysia, maturing in July 2028, bearing interest at the bank’s prime rate less 2.00% (4.85% for both December 31, 2024 and June 30, 2024) per annum, with monthly payments of principal plus interest through July 2028, collateralized by the acquired building with a carrying value of $2,237 and $2,208, as at December 31, 2024 and June 30, 2024, respectively.

 $551  $596 

Financing arrangement at fixed interest rate 3.2% per annum, with monthly payments of principal plus interest through July 2025.

  26   44 

Financing arrangement at fixed interest rate 3.0% per annum, with monthly payments of principal plus interest through December 2026.

  106   124 

Financing arrangement at fixed interest rate 3.0% per annum, with monthly payments of principal plus interest through August 2027.

  99   110 

Total bank loans payable

 $782  $874 
         

Current portion of bank loans payable

  245   235 

Currency translation effect on current portion of bank loans

  13   26 

Current portion of bank loans payable

  258   261 

Long-term portion of bank loans payable

  491   591 

Currency translation effect on long-term portion of bank loans

  33   22 

Long-term portion of bank loans payable

 $524  $613 

 

Future minimum payments (excluding interest) as at December 31, 2024, were as follows:

 

Remainder of Fiscal 2025

 $137 

2026

  242 

2027

  222 

Thereafter

  181 

Total obligations and commitments

 $782 

 

Future minimum payments (excluding interest) as at June 30, 2024, were as follows:

 

2025

 $260 

2026

  230 

2027

  212 

Thereafter

  172 

Total obligations and commitments

 $874 

 
v3.25.0.1
Note 13 - Commitments and Contingencies
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

13.

COMMITMENTS AND CONTINGENCIES

 

The Company has capital commitment of $79 as at December 31, 2024, as compared to capital commitment of $65 as at June 30, 2024.

 

Deposits with banks are not fully insured by the local government or agency and are consequently exposed to risk of loss. The Company believes that the probability of bank failure, causing loss to the Company, is remote.

 

The Company is, from time to time, the subject of litigation claims and assessments arising out of matters occurring in its normal business operations. In the opinion of management, resolution of these matters will not have a material adverse effect on the Company’s consolidated financial statements.

 
v3.25.0.1
Note 14 - Business Segments
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

14.

BUSINESS SEGMENTS

 

ASC Topic 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of a reporting entity, the operating results of which are reviewed regularly by the chief operating decision maker (“CODM”) to make decisions about resource allocation and to assess performance. Our CODM is our Chief Executive Officer.

 

In response to changes in our business strategy in an effort to better align with our focus areas and to streamline operations, during the first quarter of Fiscal 2025, our CODM requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, we have updated our reporting and beginning in Fiscal 2025, we report our financial performance based on our new segments, “Semiconductor Back-end Solutions” (“SBS”) and “Industrial Electronics” (“IE”), and analyze gross profit and operating income as the measure of segment profitability. We have recast certain prior period amounts to conform to the way we internally manage and monitor segment performance during Fiscal 2025.

 

Our operating businesses are organized based on the nature of markets. The SBS segment comprises our core semiconductor back-end equipment manufacturing and testing operations that serve the semiconductor industry. Our value-added distribution business, along with our services and equipment manufacturing operations that serve various industries are being reported together in our IE segment. A detailed description of our operating segments as of December 31, 2024 can be found in the overview section of Item 2 of this Quarterly Report, entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations". A mapping of our previous presentation and the new segments is presented below:

 

●

Manufacturing – Manufacturing of equipment that solely serves the back-end processes of the semiconductor industry is presented under the SBS segment, and manufacturing of equipment that serves various industries is presented under the IE segment.

 

●

Testing Services – Testing services are presented under the SBS segment.

 

●

Distribution – Value-added distribution of burn-in test related equipment is presented under the SBS segment, and value-added distribution of other electronic products is presented under the IE segment.

 

●

Real estate – Real-estate segment relates to real estate investments made in ChongQing, China. When identifying reportable segments, management evaluates the contribution of each segment to the overall business strategy and whether the segment reported provides meaningful information to users about the Company’s performance and prospects. Revenue from the real-estate segment has been below 1% of total revenue in the past five fiscal years due to the negative real-estate environment in China. Effective in Fiscal 2025, management therefore concluded that the real-estate segment is not integral to the Company’s operations and does not intend to allocate any additional resources to this segment. As a result, this segment will cease to be a reportable segment in Fiscal 2025, and therefore will be presented under the Others segment.

 

Our CODM uses total revenue, gross profit, operating income and total assets in assessing segment performance and deciding how to allocate resources. Segment operating income includes corporate allocations. Segment revenues include sales of equipment and services by our segments. Total intersegment sales were $22 and $83 in the three months ended December 31, 2024 and  December 31, 2023 respectively. Certain corporate costs, including those related to legal, information technology, human resources and shared services are allocated to our segments based on their relative revenues, manpower costs and fixed assets. 

 

The amounts related to revenue and earnings presented as Others include the results of an immaterial real estate business that ceased to be a reportable segment in Fiscal 2025 and includes certain costs incurred at the corporate-level, including the cost of our stock compensation plans not allocated to our reportable segments. Assets presented under Others segment consisted primarily of cash and cash equivalents, prepaid expenses and investment properties. 

 

The cost of equipment, current year investment in new equipment and depreciation expense is allocated into respective reportable segments based on the primary purpose for which the equipment was acquired.

 

The following Segment Information is unaudited for the six months ended December 31, 2024, and December 31, 2023:

 

Business Segment Information:

 

 

Six Months

     

Gross

  

Operating

             
 

Ended

 

Net

  

Profit /

  

Income /

  

Total

  

Depr. and

  

Capital

 
 

Dec. 31,

 

Revenue

  

(Loss)

  

(Loss)

  

Assets

  

Amort.

  

Expenditures

 

Semiconductor Back-end Solutions

2024

 $12,688  $3,536  $274  $30,704  $1,275  $252 
 

2023

 $15,072  $3,862  $302  $35,508  $2,624  $158 
                          

Industrial Electronics

2024

  5,715   1,024   (30)  6,270   113   - 
 

2023

  7,083   1,535   484   8,176   125   - 
                          

Others

2024

  15   (20)  (114)  2,826   34   - 
 

2023

  13   (23)  (110)  2,914   35   - 
                          

Total Company

2024

 $18,418  $4,540  $130  $39,800  $1,422  $252 
 

2023

 $22,168  $5,374  $676  $46,598  $2,784  $158 

 

The following Segment Information is unaudited for the three months ended December 31, 2024, and December 31, 2023:

 

Business Segment Information:

 

 

Three Months

     

Gross

  

Operating

             
 

Ended

 

Net

  

Profit /

  

Income /

  

Total

  

Depr. and

  

Capital

 
 

Dec. 31,

 

Revenue

  

(Loss)

  

(Loss)

  

Assets

  

Amort.

  

Expenditures

 

Semiconductor Back-end Solutions

2024

 $5,809  $1,742  $97  $30,704  $639  $119 
 

2023

 $7,896  $1,982  $342  $35,508  $1,239  $81 
                          

Industrial Electronics

2024

  2,801   485   (23)  6,270   55    
 

2023

  4,300   885   294   8,176   57   - 
                          

Others

2024

  9   (9)  (77)  2,826   17    
 

2023

  6   (13)  41   2,914   17   - 
                          

Total Company

2024

 $8,619  $2,218  $(3) $39,800  $711  $119 
 

2023

 $12,202  $2,854  $677  $46,598  $1,313  $81 

 

Management periodically evaluates the ongoing contributions of each of its business segments to its current and future revenue and prospects. As a result, it may divest one or more business segments in the future to enable management to concentrate on segments where it anticipates opportunities for future revenue growth, thereby maximizing shareholder value. 

 
v3.25.0.1
Note 15 - Other (Expense) Income
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Other Income and Other Expense Disclosure [Text Block]

15.

OTHER INCOME / (EXPENSE)

 

Other income / (expense) consisted of the following:

 

  

Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 

Interest income

 $82  $96  $183  $174 

Other rental income

  42   36   80   72 

Exchange gain / (loss)

  550   (236)  44   (177)

Other miscellaneous income

  12   22   14   45 

Total

 $686  $(82) $321  $114 

 
v3.25.0.1
Note 16 - Government Grants
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Government Assistance [Text Block]

16.

GOVERNMENT GRANTS

 

  

Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 

Government grant

 $5  $4  $71  $77 

 

In the three months ended December 31, 2024, the Company received government grants amounting to $5, which was related to capital expenditure subsidy received from the China government. During the same period in 2024, the Company received government grants amounting to $4, related to capital expenditure subsidy received from the China government.

 

In the six months ended December 31, 2024, the Company received government grants amounting to $71, $62 of which was financial assistance received from the Singapore government for local resident recruitment, and the remaining $9, which was related to capital expenditure subsidy received from the China government. During the same period in Fiscal 2024, the Company received government grants amounting to $77, $16 of which was an incentive from the Singapore government for local resident recruitment, and the remaining $57 from the U.S. government related to Employee Retention Credit (“ERC”).

 
v3.25.0.1
Note 17 - Income Tax
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

17.

INCOME TAX

 

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 the 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. GILTI expense was $nil for the three and six months ended December 31, 2024, as compared to $15 and $30 for the three and six months ended December 31, 2023, respectively.

 

The Company's income tax expense was $139 and $190 for the three and six months ended December 31, 2024, as compared to $95 and $132 for the same period in Fiscal 2024. Our effective tax rate (“ETR”) from continuing operations was 38.3% and 16.1% for six months ended December 31, 2024 and December 31, 2023, respectively. Income tax expense increased due to lower deferred tax assets in our Singapore operation, driven by lower provisions, which reduced the deductible temporary differences. This was partially offset by lower GILTI tax due to lower chargeable income derived from controlled foreign corporation.

 

The Company accrues penalties and interest related to unrecognized tax benefits when necessary, as a component of penalties and interest expense, respectively. The Company had no unrecognized tax benefits or related accrued penalties or interest expense at  December 31, 2024 and December 31, 2023, respectively.

 

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 all of the benefits of the federal, state, and foreign deductible differences. Accordingly, a valuation allowance has been established against portion of the deferred tax assets recorded in the U.S. and various foreign jurisdictions.

 
v3.25.0.1
Note 18 - Revenue
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

18.

REVENUE

 

The Company generates revenue primarily from two segments: Semiconductor Back-end Solutions ("SBS") and Industrial Electronics ("IE"). The Company accounts for a contract with a customer when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company’s revenues are measured based on consideration stipulated in the arrangement with each customer, net of any sales incentives and amounts collected on behalf of third parties, such as sales taxes. The revenues are recognized as separate performance obligations that are satisfied by transferring control of the product or service to the customer.

 

Significant Judgments

 

The Company’s arrangements with its customers include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. A product or service is considered distinct if it is separately identifiable from other deliverables in the arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer.

 

The Company allocates the transaction price to each performance obligation on a relative standalone selling price basis (“SSP”). Determining the SSP for each distinct performance obligation and allocation of consideration from an arrangement to the individual performance obligations and the appropriate timing of revenue recognition are significant judgments with respect to these arrangements. The Company typically establishes the SSP based on observable prices of products or services sold separately in comparable circumstances to similar clients. The Company may estimate SSP by considering internal costs, profit objectives and pricing practices in certain circumstances.

 

Warranties, discounts and allowances are estimated using historical and recent data trends. The Company includes estimates in the transaction price only to the extent that a significant reversal of revenue is not probable in subsequent periods. The Company’s products and services are generally not sold with a right of return, nor has the Company experienced significant returns from or refunds to its customers.

 

Products

 

The Company derives SBS segment revenue from the sale of burn-in and reliability test equipment used in the “back-end” manufacturing processes of semiconductors. Our equipment includes burn-in systems, burn-in boards and related equipment that is used in the testing of structural integrity of integrated circuits. 

 

Under the IE segment, the Company designs, manufactures and distributes an extensive range of test, process and other equipment used in the manufacturing processes of customers in various industries in the consumer and industrial market. The Company also acts as a design-in reseller of a wide range of camera module, LCD displays and touch screen panels.

 

The Company recognizes revenue at a point in time when the Company has satisfied its performance obligation by transferring control of the product to the customer. The Company uses judgment to evaluate whether the control has transferred by considering several indicators, including whether:

 

●

the Company has a present right to payment;

 

●

the customer has legal title;

 

●

the customer has physical possession;

 

●

the customer has significant risk and rewards of ownership; and

 

●

the customer has accepted the product, or whether customer acceptance is considered a formality based on history of acceptance of similar products (for example, when the customer has previously accepted the same equipment, with the same specifications, and when we can objectively demonstrate that the tool meets all the required acceptance criteria, and when the installation of the system is deemed perfunctory).

 

Not all 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.

 

Majority of equipment sales include a 12-month warranty. The Company generally provides a limited warranty that our products comply with applicable specifications at the time of delivery. Under our standard terms and conditions of sale, liability for certain failures of product during a stated warranty period is usually limited to repair or replacement of defective parts. The Company has concluded that the warranty provided for standard products are assurance type warranties and are not separate performance obligations.

 

Customized products are generally more complex and, as a result, may contain unforeseen faults that could lead to additional costs for us, including increased servicing or the need to provide product modifications. 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.

 

Services

 

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 services revenue from burn-in test services, manpower supply and other associated services and also from equipment maintenance. 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 include warranty, late delivery penalty and reimbursement to solve non-conformance issues for rejected products. Based on historical and recent data trends, it is concluded that these terms of the contract do not represent potential variable consideration. The transaction price is not contingent on the occurrence of any future event.

 

Contract Balances

 

The timing of revenue recognition, billings and collections may result in billed accounts receivable, unbilled receivables, contract assets, customer advances, deposits and 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.

 

The following table is the reconciliation of contract balances.

 

  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Trade Accounts Receivable

 $9,881  $10,661 

Accounts Payable

  1,804   3,175 

Contract Liabilities

  721   754 

 

Remaining Performance Obligation

 

The Company had $nil remaining performance obligations, which represents our obligation to deliver products and services for both period ended  December 31, 2024 and December 31, 2023.

 
v3.25.0.1
Note 19 - Earnings Per Share
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Earnings Per Share [Text Block]

19.

EARNINGS PER SHARE

 

Options to purchase 741,750 shares of Common Stock at exercise prices ranging from $2.53 to $7.76 per share were outstanding as of December 31, 2024. 140,500 stock options were excluded in the computation of diluted earnings per share (“EPS”) for the three and six months ended December 31, 2024, because they were anti-dilutive.

 

Options to purchase 617,000 shares of Common Stock at exercise prices ranging from $2.53 to $7.76 per share were outstanding as of December 31, 2023. 284,500 stock options were excluded in the computation of EPS for the three and six months ended December 31, 2023, 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 period presented herein:

 

  

Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 
                 

Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax

 $511  $503  $271  $730 

Income attributable to Trio-Tech International common shareholders from discontinued operations, net of tax

  (4)  4   -   7 

Net Income Attributable to Trio-Tech International Common Shareholders

 $507  $507  $271  $737 
                 

Weighted average number of common shares outstanding - basic

  4,250   4,120   4,250   4,109 

Dilutive effect of stock options

  153   139   119   161 

Number of shares used to compute earnings per share - diluted

  4,403   4,259   4,369   4,270 
                 

Basic earnings per share from continuing operations attributable to Trio-Tech International

 $0.12  $0.12  $0.06  $0.18 

Basic earnings per share from discontinued operations attributable to Trio-Tech International

  -   -   -   - 

Basic Earnings per Share from Net Income Attributable to Trio-Tech International

 $0.12  $0.12  $0.06  $0.18 
                 

Diluted earnings per share from continuing operations attributable to Trio-Tech International

 $0.12  $0.12  $0.06  $0.17 

Diluted earnings per share from discontinued operations attributable to Trio-Tech International

  -   -   -   - 

Diluted Earnings per Share from Net Income Attributable to Trio-Tech International (1*)

 $0.12  $0.12  $0.06  $0.17 

 

(1*) For periods in which the Company has reported net loss, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, because dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.

 
v3.25.0.1
Note 20 - Stock Options
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

20.

STOCK OPTIONS

 

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.

 

Assumptions

 

The fair value for the stock options granted to both employees and directors was estimated using the Black-Scholes option pricing model with the following weighted average assumptions, assuming: 

 

●

An expected life varying from 2.50 to 3.25 years, calculated in accordance with the guidance provided in SEC Staff bulletin No. 110 for plain vanilla options using the simplified method, since the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term

●

A risk-free interest rate varying from 0.11% to 4.59% (2024: 0.20% to 4.59%);

●

No expected dividend payments; and

●

Expected volatility of 47.3% to 73.9% (2024: 47.3% to 72.2%).

 

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. In December 2021, the Company’s Board of Directors approved an amendment to the 2017 Employee Plan 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 2021.

 

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).

 

During the six-month period ended December 31, 2024, there were 40,000 stock options granted and no stock options were exercised under 2017 Employee Plan. The Company recognized $125 in stock-based compensation expense during the six months ended December 31, 2024.

 

During the six-month period ended December 31, 2023, there were 48,000 stock options granted and 63,875 stock options were exercised under 2017 Employee Plan. The Company recognized $90 in stock-based compensation expense during the six months ended December 31, 2023.

 

As of December 31, 2024, there were vested stock options granted under the 2017 Employee Plan covering a total of 164,500 shares of Common Stock. The weighted-average exercise price was $5.54 and the weighted average remaining contractual term was 2.59 years.

 

As of December 31, 2023, there were vested stock options granted under the 2017 Employee Plan covering a total of 88,250 shares of Common Stock. The weighted-average exercise price was $5.59 and the weighted average remaining contractual term was 3.08 years.

 

A summary of option activities under the 2017 Employee Plan during the six months ended December 31, 2024, is presented as follows:

 

          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2024

  270,750  $5.35   3.43  $268 

Granted

  40,000   6.17   -   - 

Exercised

  -   -   -   - 

Forfeited or expired

  -   -   -   - 

Outstanding at December 31, 2024

  310,750   5.45   3.13   204 

Exercisable at December 31, 2024

  164,500   5.54   2.59   107 

 

A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2024, is presented below:

 

      

Weighted

 
      

Average

 
      

Grant-Date

 
  

Options

  

Fair Value

 
         

Non-vested at July 1, 2024

  134,500  $5.12 

Granted

  40,000   5.65 

Vested

  (28,250)  - 

Non-vested at December 31, 2024

  146,250   5.35 

 

A summary of option activities under the 2017 Employee Plan during the six months ended December 31, 2023, is presented as follows:

 

          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2023

  216,375  $4.89   2.92  $140 

Granted

  48,000   4.88   -   - 

Exercised

  (63,875)  3.12   -   - 

Forfeited or expired

  (3,500)  4   -   - 

Outstanding at December 31, 2023

  197,000  $5.48   3.51  $39 

Exercisable at December 31, 2023

  88,250  $5.59   3.08  $16 

 

A summary of the status of the Company’s non-vested employee stock options during the six months ended December 31, 2023, is presented below:

 

      

Weighted

 
      

Average

 
      

Grant-Date

 
  

Options

  

Fair Value

 
         

Non-vested at July 1, 2023

  81,750  $5.53 

Granted

  48,000   4.88 

Vested

  (21,000)  - 

Non-vested at December 31, 2023

  108,750  $5.38 

 

2017 Directors Equity Incentive Plan

 

The 2017 Directors Plan permits the grant of options to its directors in the form of non-qualified options and restricted stock, and initially covered up to an aggregate of 300,000 shares of Common Stock. In September 2020, the Company’s Board of Directors approved an amendment to the 2017 Directors Plan 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. In October 2023, the Company’s Board of Directors approved an amendment to the 2017 Directors Plan to increase the shares covered thereby from 600,000 shares to an aggregate of 900,000 shares, which amendment was approved by the Company’s shareholders at the annual meeting held in December 2023.

 

Under the 2017 Directors Plan, 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.

 

During the six-month period ended December 31, 2024, and 2023, respectively, the Company did not grant any options pursuant to the 2017 Directors Plan. There were no stock options exercised and the Company did not recognize any stock-based compensation expense during the three and six months ended December 31, 2024, and 2023 respectively.

 

As all the stock options granted under the 2017 Directors Plan vest immediately on the date of grant, there were no unvested stock options granted under the 2017 Directors Plan as of December 31, 2024, or December 31, 2023.

 

As of December 31, 2024, there were vested stock options granted under the 2017 Directors Plan covering a total of 431,000 shares of Common Stock. The weighted average exercise price was $5.24 and the weighted average remaining contractual term was 2.38 years.

 

As of December 31, 2023, there were vested stock options granted under the 2017 Directors Plan covering a total of 420,000 shares of Common Stock. The weighted average exercise price was $4.91 and the weighted average remaining contractual term was 2.41 years. 

 

A summary of option activities under the 2017 Directors Plan during the six months ended December 31, 2024, is presented as follows: 

 

          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2024

  431,000  $5.24   2.88  $531 

Granted

  -   -   -     

Exercised

  -   -   -     

Forfeited or expired

  -   -   -     

Outstanding at December 31, 2024

  431,000   5.24   2.38   439 

Exercisable at December 31, 2024

  431,000  $5.24   2.38  $439 

 

A summary of option activities under the 2017 Directors Plan during the six months ended December 31, 2023, is presented as follows:

 

          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2023

  420,000  $4.91   2.91  $309 

Granted

  -   -   -   - 

Exercised

  -   -   -   - 

Forfeited or expired

  -   -   -   - 

Outstanding at December 31, 2023

  420,000  $4.91   2.41  $352 

Exercisable at December 31, 2023

  420,000  $4.91   2.41  $352 

 
v3.25.0.1
Note 21 - Leases
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Lessee and Lessor, Leases [Text Block]

21.

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 20 years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expense relating to the property held as investments in operating leases was $17 and $34 for the three months ended December 31, 2024, and December 31, 2023, respectively.

 

Future minimum rental income in China and Thailand to be received from Fiscal 2025 to the fiscal year ended June 30, 2029 (“Fiscal 2029”) on non-cancelable operating leases is contractually due as follows as of December 31, 2024:

 

Remainder of 2025

 $78 

2026

  61 

2027

  32 

2028

  17 

2029

  4 
  $192 

 

Future minimum rental income in China and Thailand to be received from Fiscal 2025 to Fiscal 2027 on non-cancelable operating leases is contractually due as follows as of June 30, 2024:

 

2025

 $131 

2026

  44 

2027

  16 
  $191 

 

Company as Lessee

 

The Company is the lessee under operating leases for corporate offices and manufacturing and testing facilities with remaining lease terms of one year to four years and finance leases for plant and equipment.

 

Supplemental balance sheet information related to leases was as follows (in thousands):

 

Components of Lease Balances

 

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     

Finance Leases (Plant and Equipment)

        

Plant and equipment, at cost

 $1,642  $1,649 

Accumulated depreciation

  (1,110)  (1,091)

Plant and Equipment, Net

 $532  $558 
         

Current portion of finance leases

 $42  $57 

Net of current portion of finance leases

  12   34 

Total Finance Lease Liabilities

 $54  $91 
         

Operating Leases (Corporate Offices, Manufacturing and Testing Facilities)

        

Operating lease right-of-use assets, Net

 $1,197  $1,887 
         

Current portion of operating leases

  943   1,162 

Net of current portion of operating leases

  254   725 

Total Operating Lease Liabilities

 $1,197  $1,887 

 

As of December 31, 2024, the Company has entered into lease agreements for properties that have been signed but have not yet commenced. The leases agreements are expected to begin on January 1, 2025 and June 1, 2025 respectively. The future minimum lease payments are $9 for the remainder of Fiscal 2025, $69 for Fiscal 2026, $66 for Fiscal 2027 and $123 thereafter. Since the lease terms have yet to commence, the Company has not recognized a Right-of-Use (ROU) asset and its corresponding lease liability in the balance sheet as of December 31, 2024. The ROU asset and lease liabilities will be recognized in the financial statements when the lease term commences.

 

 

  

Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 
                 

Lease Cost

                

Finance lease cost:

                

Interest on finance lease

 $1  $2  $2  $5 

Amortization of right-of-use assets

  19   12   38   56 

Total finance lease cost

  20   14   40   61 
                 

Operating Lease Costs

 $387  $385  $775  $754 

 

Other information related to leases was as follows (in thousands except lease term and discount rate):

 

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

 

Cash Paid for Amounts Included in the Measurement of Lease Liabilities

        

Operating cash flows from finance leases

 $2  $3 

Operating cash flows from operating leases

  722   693 

Finance cash flows from finance leases

  38   55 

Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities

      - 
         

Weighted-Average Remaining Lease Term:

        

Finance leases

  1.25   0.80 

Operating leases

  1.50   2.08 

Weighted-Average Discount Rate:

        

Finance leases

  2.28%  2.89%

Operating leases

  5.51%  5.51%

 

As of December 31, 2024, the maturities of the Company’s operating and finance lease liabilities are as follow:

 

  

Operating

  

Finance

 
  

Lease

  

Lease

 
  

Liabilities

  

Liabilities

 

Fiscal Year

        

Remainder of Fiscal 2025

  670   22 

2026

  437   34 

2027

  55    

Thereafter

  86   - 

Total future minimum lease payments

 $1,248  $56 

Less: amount representing interest

  (51)  (2)

Present value of net minimum lease payments

 $1,197  $54 
         

Presentation on statement of financial position

        

Current

  943   42 

Non-Current

  254   12 

 

As of June 30, 2024, future minimum lease payments under finance leases and noncancelable operating leases were as follows:

 

  

Operating

  

Finance

 
  

Lease

  

Lease

 
  

Liabilities

  

Liabilities

 

Fiscal Year

        

2025

 $1,234  $61 

2026

  658   34 

2027

  86   - 

Total future minimum lease payments

 $1,978  $95 

Less: amount representing interest

  (91)  (4)

Present value of net minimum lease payments

 $1,887  $91 
         

Presentation on statement of financial position

        

Current

 $1,162  $57 

Non-Current

  725   34 

 
v3.25.0.1
Note 22 - Fair Value of Financial Instruments Approximate Carrying Value
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

22.

FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE

 

In accordance with ASC Topics 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 three months ended  December 31, 2024 and year ended June 30, 2024.

 

Term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments.

 

Restricted term deposits (Level 2) – The carrying amount approximates fair value because of the short maturity of these instruments.

 

Lines of credit (Level 3) – The carrying value of the lines of credit approximates fair value due to the short-term nature of the obligations.

 

Bank loans payable (Level 3) – The carrying value of the Company’s bank loans payable 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.

 
v3.25.0.1
Note 23 - Concentration of Customers
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]

23.

CONCENTRATION OF CUSTOMERS

 

The Company had three major customers that accounted for the following revenue and trade account receivables:

 

  

For the Six Months Ended

 
  

Dec. 31,

 
  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

 

Revenue

        

- Customer A

  20.8%  21.8%

- Customer B

  18.0%  17.7%

- Customer C

  10.3%  13.9%

Trade Account Receivables

        

- Customer A

  20.3%  21.0%

- Customer B

  17.0%  24.4%

- Customer C

  18.5%  22.8%

 
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Insider Trading Arr Line Items  
Rule 10b5-1 Arrangement Adopted [Flag] false
Rule 10b5-1 Arrangement Terminated [Flag] false
Non-Rule 10b5-1 Arrangement Terminated [Flag] false
Non-Rule 10b5-1 Arrangement Adopted [Flag] false
v3.25.0.1
Note 1 - Organization and Basis of Presentation (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Subsidiary of Limited Liability Company or Limited Partnership, Description [Table Text Block]
  

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%

Cayman Islands

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. (100% owned by Trio-Tech Malaysia Sdn. Bhd.)#

  55%

Selangor, Malaysia

Prestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.)

  76%

Selangor, Malaysia

Trio-Tech (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) (95% owned by SHI International Pte. Ltd.)

  52%

Batam, Indonesia

Trio-Tech (Tianjin) Co., Ltd. *

  100%

Tianjin, China

Trio-Tech (Jiangsu) Co., Ltd. (51% owned by Trio-Tech (SIP) Co., Ltd.)

  51%

Suzhou, China
v3.25.0.1
Note 3 - Term Deposits (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Term Deposits [Table Text Block]
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Short-term deposits

 $6,592  $6,540 

Currency translation effect on short-term deposits

  (370)  (43)

Total short-term deposits

  6,222   6,497 

Restricted term deposits - Current

  804   750 

Currency translation effect on restricted term deposits

  (48)  - 

Total restricted term deposits - Current

  756   750 

Restricted term deposits – Non-current

  1,897   1,773 

Currency translation effect on restricted term deposits

  (105)  (2)

Total restricted term deposits - Non-current

  1,792   1,771 

Total term deposits

 $8,770  $9,018 
v3.25.0.1
Note 4 - Trade Accounts Receivable and Allowance for Expected Credit Losses (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Accounts Receivable, Allowance for Credit Loss [Table Text Block]
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Beginning

 $209  $217 

Additions charged to expense

  61   12 

Recovered

  (14)  (15)

Written off

  (178)  (2)

Currency translation effect

  2   (3)

Ending

 $80  $209 
v3.25.0.1
Note 5 - Loans Receivable From Property Development Projects (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
 

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   274 

Less: allowance for expected credit losses

  (2,000)  (274)

Net loan receivables from property development projects

  -   - 
v3.25.0.1
Note 6 - Inventories (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Inventory, Current [Table Text Block]
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Raw materials

 $1,413  $1,668 

Work in progress

  772   1,048 

Finished goods

  520   1,129 

Less: provision for obsolete inventories

  (771)  (679)

Currency translation effect

  23   (4)
  $1,957  $3,162 
Schedule of Inventory, Noncurrent [Table Text Block]
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Beginning

 $679  $648 

Additions charged to expense

  97   65 

Usage – disposition

  -   (21)

Currency translation effect

  (5)  (13)

Ending

 $771  $679 
v3.25.0.1
Note 7 - Investment Properties (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Table Text Block]
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Property I – MaoYe Property

        

Cost

 $301  $301 

Less: Accumulated depreciation

  (243)  (226)

Currency translation effect

  (12)  (22)
  $46   53 
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Property II – JiangHuai Property

        

Cost

 $-  $580 

Less: Accumulated depreciation

  -   (360)

Currency translation effect

  -   (83)

Carrying value of relinquished asset

 $-  $137 

Cost of acquired asset

  137   - 

Less: Accumulated depreciation of acquired asset

  (12)  - 

Currency translation effect

  (1)  - 
  $124  $137 
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Property III – FuLi Property

        

Cost

 $648  $648 

Less: Accumulated Depreciation

  (368)  (338)

Currency translation effect

  (78)  (93)
  $202  $217 
v3.25.0.1
Note 8 - Other Assets (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Other Assets [Table Text Block]
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     

Deposits for rental and utilities and others

 $122  $234 

Downpayment for Purchase of Investment Properties*

  1,580   1,580 

Less: Provision for Impairment

  (1,580)  (1,580)

Currency translation effect

  7   (2)

Total

 $129  $232 
v3.25.0.1
Note 9 - Lines of Credit (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Line of Credit Facilities [Table Text Block]

Entity with

  

Type of

  

Interest

  

Credit

    

Unused

  

Facility

  

Facility

  

Rate

  

Limitation

    

Credit

  

Trio-Tech International Pte. Ltd., Singapore

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $3,895     $3,615  

Universal (Far East) Pte. Ltd.

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $1,837     $1,770  

Trio-Tech Malaysia Sdn. Bhd.

  

Revolving credit

  

Cost of Funds Rate +2%

   $334     $334  

Entity with

  

Type of

  

Interest

  

Credit

    

Unused

  

Facility

  

Facility

  

Rate

  

Limitation

    

Credit

  

Trio-Tech International Pte. Ltd., Singapore

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $ 3,907     $ 3,626  

Universal (Far East) Pte. Ltd.

  

Lines of Credit

  

Cost of Funds Rate +1.25%

   $ 1,843     $ 1,818  

Trio-Tech Malaysia Sdn. Bhd.

  

Revolving credit

  

Cost of Funds Rate +2%

   $ 318     $ 318  
v3.25.0.1
Note 10 - Accrued Expense (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Accrued Liabilities [Table Text Block]
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Payroll and related costs

 $1,148  $1,737 

Commissions

  152   164 

Legal and audit

  211   328 

Sales tax and witholding Tax

  93   34 

Sales rebate

  100   81 

Travelling Expenses

  44   25 

Utilities

  201   231 

Warranty

  19   27 

Accrued purchase of materials and property, plant and equipment

  178   553 

Provision for reinstatement

  380   380 

Other accrued expense

  146   52 

Currency translation effect

  23   22 

Total

 $2,695  $3,634 
v3.25.0.1
Note 11 - Assurance Warranty Accrual (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Product Warranty Liability [Table Text Block]
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Beginning

 $27  $24 

Additions charged to cost and expense

  -   21 

Utilization

  (8)  (20)

Currency translation effect

  -   2 

Ending

 $19  $27 
v3.25.0.1
Note 12 - Bank Loans Payable (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Debt [Table Text Block]
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Note payable denominated in the Malaysian Ringgit for expansion plans in Malaysia, maturing in July 2028, bearing interest at the bank’s prime rate less 2.00% (4.85% for both December 31, 2024 and June 30, 2024) per annum, with monthly payments of principal plus interest through July 2028, collateralized by the acquired building with a carrying value of $2,237 and $2,208, as at December 31, 2024 and June 30, 2024, respectively.

 $551  $596 

Financing arrangement at fixed interest rate 3.2% per annum, with monthly payments of principal plus interest through July 2025.

  26   44 

Financing arrangement at fixed interest rate 3.0% per annum, with monthly payments of principal plus interest through December 2026.

  106   124 

Financing arrangement at fixed interest rate 3.0% per annum, with monthly payments of principal plus interest through August 2027.

  99   110 

Total bank loans payable

 $782  $874 
         

Current portion of bank loans payable

  245   235 

Currency translation effect on current portion of bank loans

  13   26 

Current portion of bank loans payable

  258   261 

Long-term portion of bank loans payable

  491   591 

Currency translation effect on long-term portion of bank loans

  33   22 

Long-term portion of bank loans payable

 $524  $613 
Schedule of Maturities of Long-Term Debt [Table Text Block]

Remainder of Fiscal 2025

 $137 

2026

  242 

2027

  222 

Thereafter

  181 

Total obligations and commitments

 $782 

2025

 $260 

2026

  230 

2027

  212 

Thereafter

  172 

Total obligations and commitments

 $874 
v3.25.0.1
Note 14 - Business Segments (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
 

Six Months

     

Gross

  

Operating

             
 

Ended

 

Net

  

Profit /

  

Income /

  

Total

  

Depr. and

  

Capital

 
 

Dec. 31,

 

Revenue

  

(Loss)

  

(Loss)

  

Assets

  

Amort.

  

Expenditures

 

Semiconductor Back-end Solutions

2024

 $12,688  $3,536  $274  $30,704  $1,275  $252 
 

2023

 $15,072  $3,862  $302  $35,508  $2,624  $158 
                          

Industrial Electronics

2024

  5,715   1,024   (30)  6,270   113   - 
 

2023

  7,083   1,535   484   8,176   125   - 
                          

Others

2024

  15   (20)  (114)  2,826   34   - 
 

2023

  13   (23)  (110)  2,914   35   - 
                          

Total Company

2024

 $18,418  $4,540  $130  $39,800  $1,422  $252 
 

2023

 $22,168  $5,374  $676  $46,598  $2,784  $158 
 

Three Months

     

Gross

  

Operating

             
 

Ended

 

Net

  

Profit /

  

Income /

  

Total

  

Depr. and

  

Capital

 
 

Dec. 31,

 

Revenue

  

(Loss)

  

(Loss)

  

Assets

  

Amort.

  

Expenditures

 

Semiconductor Back-end Solutions

2024

 $5,809  $1,742  $97  $30,704  $639  $119 
 

2023

 $7,896  $1,982  $342  $35,508  $1,239  $81 
                          

Industrial Electronics

2024

  2,801   485   (23)  6,270   55    
 

2023

  4,300   885   294   8,176   57   - 
                          

Others

2024

  9   (9)  (77)  2,826   17    
 

2023

  6   (13)  41   2,914   17   - 
                          

Total Company

2024

 $8,619  $2,218  $(3) $39,800  $711  $119 
 

2023

 $12,202  $2,854  $677  $46,598  $1,313  $81 
v3.25.0.1
Note 15 - Other (Expense) Income (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Other Nonoperating Income, by Component [Table Text Block]
  

Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 

Interest income

 $82  $96  $183  $174 

Other rental income

  42   36   80   72 

Exchange gain / (loss)

  550   (236)  44   (177)

Other miscellaneous income

  12   22   14   45 

Total

 $686  $(82) $321  $114 
v3.25.0.1
Note 16 - Government Grants (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Government Grants [Table Text Block]
  

Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 

Government grant

 $5  $4  $71  $77 
v3.25.0.1
Note 18 - Revenue (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Revenue from External Customers by Products and Services [Table Text Block]
  

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     
         

Trade Accounts Receivable

 $9,881  $10,661 

Accounts Payable

  1,804   3,175 

Contract Liabilities

  721   754 
v3.25.0.1
Note 19 - Earnings Per Share (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
  

Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 
                 

Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax

 $511  $503  $271  $730 

Income attributable to Trio-Tech International common shareholders from discontinued operations, net of tax

  (4)  4   -   7 

Net Income Attributable to Trio-Tech International Common Shareholders

 $507  $507  $271  $737 
                 

Weighted average number of common shares outstanding - basic

  4,250   4,120   4,250   4,109 

Dilutive effect of stock options

  153   139   119   161 

Number of shares used to compute earnings per share - diluted

  4,403   4,259   4,369   4,270 
                 

Basic earnings per share from continuing operations attributable to Trio-Tech International

 $0.12  $0.12  $0.06  $0.18 

Basic earnings per share from discontinued operations attributable to Trio-Tech International

  -   -   -   - 

Basic Earnings per Share from Net Income Attributable to Trio-Tech International

 $0.12  $0.12  $0.06  $0.18 
                 

Diluted earnings per share from continuing operations attributable to Trio-Tech International

 $0.12  $0.12  $0.06  $0.17 

Diluted earnings per share from discontinued operations attributable to Trio-Tech International

  -   -   -   - 

Diluted Earnings per Share from Net Income Attributable to Trio-Tech International (1*)

 $0.12  $0.12  $0.06  $0.17 
v3.25.0.1
Note 20 - Stock Options (Tables)
 6 Months Ended
Dec. 31, 2024
Director Plan 2017 [Member]  
Notes Tables  
Share-Based Payment Arrangement, Option, Activity [Table Text Block]
          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2024

  431,000  $5.24   2.88  $531 

Granted

  -   -   -     

Exercised

  -   -   -     

Forfeited or expired

  -   -   -     

Outstanding at December 31, 2024

  431,000   5.24   2.38   439 

Exercisable at December 31, 2024

  431,000  $5.24   2.38  $439 
Employee Stock Option Plan 2017 [Member]  
Notes Tables  
Share-Based Payment Arrangement, Option, Activity [Table Text Block]
          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2024

  270,750  $5.35   3.43  $268 

Granted

  40,000   6.17   -   - 

Exercised

  -   -   -   - 

Forfeited or expired

  -   -   -   - 

Outstanding at December 31, 2024

  310,750   5.45   3.13   204 

Exercisable at December 31, 2024

  164,500   5.54   2.59   107 
          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2023

  216,375  $4.89   2.92  $140 

Granted

  48,000   4.88   -   - 

Exercised

  (63,875)  3.12   -   - 

Forfeited or expired

  (3,500)  4   -   - 

Outstanding at December 31, 2023

  197,000  $5.48   3.51  $39 

Exercisable at December 31, 2023

  88,250  $5.59   3.08  $16 
          

Weighted

     
          

Average

     
      

Weighted

  

Remaining

     
      

Average

  

Contractual

  

Aggregate

 
      

Exercise

  

Term

  

Intrinsic

 
  

Options

  

Price

  

(Years)

  

Value

 
                 

Outstanding at July 1, 2023

  420,000  $4.91   2.91  $309 

Granted

  -   -   -   - 

Exercised

  -   -   -   - 

Forfeited or expired

  -   -   -   - 

Outstanding at December 31, 2023

  420,000  $4.91   2.41  $352 

Exercisable at December 31, 2023

  420,000  $4.91   2.41  $352 
Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block]
      

Weighted

 
      

Average

 
      

Grant-Date

 
  

Options

  

Fair Value

 
         

Non-vested at July 1, 2024

  134,500  $5.12 

Granted

  40,000   5.65 

Vested

  (28,250)  - 

Non-vested at December 31, 2024

  146,250   5.35 
      

Weighted

 
      

Average

 
      

Grant-Date

 
  

Options

  

Fair Value

 
         

Non-vested at July 1, 2023

  81,750  $5.53 

Granted

  48,000   4.88 

Vested

  (21,000)  - 

Non-vested at December 31, 2023

  108,750  $5.38 
v3.25.0.1
Note 21 - Leases (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Operating Lease, Lease Income [Table Text Block]

Remainder of 2025

 $78 

2026

  61 

2027

  32 

2028

  17 

2029

  4 
  $192 

2025

 $131 

2026

  44 

2027

  16 
  $191 
Operating and Finance Leases of Lessee Disclosure [Table Text Block]

Components of Lease Balances

 

Dec. 31,

  

June 30,

 
  

2024

  

2024

 
  

(Unaudited)

     

Finance Leases (Plant and Equipment)

        

Plant and equipment, at cost

 $1,642  $1,649 

Accumulated depreciation

  (1,110)  (1,091)

Plant and Equipment, Net

 $532  $558 
         

Current portion of finance leases

 $42  $57 

Net of current portion of finance leases

  12   34 

Total Finance Lease Liabilities

 $54  $91 
         

Operating Leases (Corporate Offices, Manufacturing and Testing Facilities)

        

Operating lease right-of-use assets, Net

 $1,197  $1,887 
         

Current portion of operating leases

  943   1,162 

Net of current portion of operating leases

  254   725 

Total Operating Lease Liabilities

 $1,197  $1,887 
  

Three Months Ended

  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

  

(Unaudited)

 
                 

Lease Cost

                

Finance lease cost:

                

Interest on finance lease

 $1  $2  $2  $5 

Amortization of right-of-use assets

  19   12   38   56 

Total finance lease cost

  20   14   40   61 
                 

Operating Lease Costs

 $387  $385  $775  $754 
Operating and Finance Leases Of Lessee Other Disclosure [Table Text Block]
  

Six Months Ended

 
  

Dec. 31,

  

Dec. 31,

 
  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

 

Cash Paid for Amounts Included in the Measurement of Lease Liabilities

        

Operating cash flows from finance leases

 $2  $3 

Operating cash flows from operating leases

  722   693 

Finance cash flows from finance leases

  38   55 

Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities

      - 
         

Weighted-Average Remaining Lease Term:

        

Finance leases

  1.25   0.80 

Operating leases

  1.50   2.08 

Weighted-Average Discount Rate:

        

Finance leases

  2.28%  2.89%

Operating leases

  5.51%  5.51%
Schedule Of Future Minimum Rental Payments for Operating and Finance Leases [Table Text Block]
  

Operating

  

Finance

 
  

Lease

  

Lease

 
  

Liabilities

  

Liabilities

 

Fiscal Year

        

Remainder of Fiscal 2025

  670   22 

2026

  437   34 

2027

  55    

Thereafter

  86   - 

Total future minimum lease payments

 $1,248  $56 

Less: amount representing interest

  (51)  (2)

Present value of net minimum lease payments

 $1,197  $54 
         

Presentation on statement of financial position

        

Current

  943   42 

Non-Current

  254   12 
  

Operating

  

Finance

 
  

Lease

  

Lease

 
  

Liabilities

  

Liabilities

 

Fiscal Year

        

2025

 $1,234  $61 

2026

  658   34 

2027

  86   - 

Total future minimum lease payments

 $1,978  $95 

Less: amount representing interest

  (91)  (4)

Present value of net minimum lease payments

 $1,887  $91 
         

Presentation on statement of financial position

        

Current

 $1,162  $57 

Non-Current

  725   34 
v3.25.0.1
Note 23 - Concentration of Customers (Tables)
 6 Months Ended
Dec. 31, 2024
Notes Tables  
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]
  

For the Six Months Ended

 
  

Dec. 31,

 
  

2024

  

2023

 
  

(Unaudited)

  

(Unaudited)

 

Revenue

        

- Customer A

  20.8%  21.8%

- Customer B

  18.0%  17.7%

- Customer C

  10.3%  13.9%

Trade Account Receivables

        

- Customer A

  20.3%  21.0%

- Customer B

  17.0%  24.4%

- Customer C

  18.5%  22.8%
v3.25.0.1
Note 1 - Organization and Basis of Presentation (Details Textual)
Dec. 31, 2024
Trio-Tech (Tianjin) Co., Ltd, [Member]  
Subsidiary, Ownership Percentage, Parent 100.00%
v3.25.0.1
Note 1 - Organization and Basis of Presentation - Ownership (Details)
Dec. 31, 2024
Express Test Corporation Dormant [Member]  
Ownership 100.00%
Trio Tech Reliability Services Dormant [Member]  
Ownership 100.00%
KTS Incorporated, dba Universal Systems (Dormant) [Member]  
Ownership 100.00%
European Electronic Test Centre (Dormant) [Member]  
Ownership 100.00%
Trio Tech International Pte Ltd [Member]  
Ownership 100.00%
Universal (Far East) Pte. Ltd. [Member]  
Ownership 100.00% [1]
Trio-Tech International (Thailand) Co. Ltd. [Member]  
Ownership 100.00% [1]
Trio-Tech (Bangkok) Co. Ltd [Member]  
Ownership 100.00% [1]
Trio-Tech (Malaysia) Sdn. Bhd.[Member]  
Ownership 55.00%
Trio-Tech (Kuala Lumpur) Sdn. Bhd. [Member]  
Ownership 55.00% [2]
Prestal Enterprise Sdn. Bhd. [Member]  
Ownership 76.00%
Trio-Tech (SIP) Co., Ltd [Member]  
Ownership 100.00% [1]
Trio-Tech (Chongqing) Co. Ltd [Member]  
Ownership 100.00% [1]
SHI International Pte. Ltd. (Dormant) [Member]  
Ownership 55.00%
PT SHI Indonesia (Dormant) [Member]  
Ownership 52.00%
Trio-Tech (Tianjin) Co., Ltd, [Member]  
Ownership 100.00% [1]
Trio-tech (Jiangsu) Co. Ltd. [Member]  
Ownership 51.00%
[1] 100% owned by Trio-Tech International Pte. Ltd.
[2] Trio-Tech (Kuala Lumpur) Sdn. Bhd. has been gazetted and is in the process of being struck off from the register.
v3.25.0.1
Note 3 - Term Deposits (Details Textual)
$ in Thousands
Dec. 31, 2024
USD ($)
Deposits Assets, Restricted, Current, Net $ 756
Deposits Assets, Restricted Term Deposits, Noncurrent, Net $ 1,792
v3.25.0.1
Note 3 - Term Deposits - Term Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Dec. 31, 2023
Short-term deposits $ 6,592 $ 6,540  
Currency translation effect on short-term deposits (370) (43)  
Total short-term deposits 6,222 6,497  
Restricted term deposits - Current 804 750  
Currency translation effect on restricted term deposits (48) 0  
Total restricted term deposits - Current 756 750  
Restricted term deposits – Non-current 1,897 1,773  
Currency translation effect on restricted term deposits (105) (2)  
Total restricted term deposits - Non-current 1,792 1,771 $ 1,778
Total term deposits $ 8,770 $ 9,018  
v3.25.0.1
Note 4 - Trade Accounts Receivable and Allowance for Expected Credit Losses - Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2024
Jun. 30, 2024
Beginning $ 209 $ 217
Additions charged to expense 61 12
Recovered (14) (15)
Written off (178) (2)
Currency translation effect 2 (3)
Ending $ 80 $ 209
v3.25.0.1
Note 5 - Loans Receivable From Property Development Projects (Details Textual) - Dec. 31, 2024
$ in Thousands, ¥ in Millions
USD ($)
CNY (¥)
Financing Receivable, before Allowance for Credit Loss, Current $ 274 ¥ 2
Financing Receivable, Allowance for Credit Loss 274  
Financing Receivable, Allowance for Credit Losses, Current $ 274  
v3.25.0.1
Note 5 - Loans Receivable From Property Development Projects - Loans Receivable (Details) - Dec. 31, 2024
¥ in Thousands, $ in Thousands
USD ($)
CNY (¥)
Financing Receivable, before Allowance for Credit Loss, Current $ 274 ¥ 2,000
Less: allowance for expected credit losses (274) (2,000)
Net loan receivables from property development projects $ 0 ¥ 0
v3.25.0.1
Note 6 - Inventories - Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Jun. 30, 2023
Raw materials $ 1,413 $ 1,668  
Work in progress 772 1,048  
Finished goods 520 1,129  
Less: provision for obsolete inventories (771) (679) $ (648)
Currency translation effect 23 (4)  
Inventory, Net $ 1,957 $ 3,162  
v3.25.0.1
Note 6 - Inventories - Changes in Provision for Obsolete Inventories (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2024
Jun. 30, 2024
Beginning $ 679 $ 648
Additions charged to expense 97 65
Usage – disposition 0 (21)
Currency translation effect (5) (13)
Ending $ 771 $ 679
v3.25.0.1
Note 7 - Investment Properties (Details Textual)
¥ in Thousands, $ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Oct. 10, 2024
USD ($)
Feb. 01, 2023
USD ($)
Feb. 01, 2023
CNY (¥)
Jul. 31, 2024
CNY (¥)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jun. 30, 2010
USD ($)
Jun. 30, 2010
CNY (¥)
Jun. 30, 2024
USD ($)
Jun. 30, 2024
CNY (¥)
Mao Ye [Member]                        
Operating Lease, Lease Income         $ 6 $ 6 $ 12 $ 12        
Monthly Lease Revenue Amount   $ 2 ¥ 15                  
Depreciation         3 4 7 8        
Real Estate Investments, Net         46   46       $ 53  
Jiang Huai [Member]                        
Operating Lease, Lease Income         0 0 0 0        
Depreciation         6 6 12 12        
Payments to Acquire Projects       ¥ 3,600         $ 580 ¥ 3,600    
Real Estate Investments, Net         124   124       137 ¥ 990
FuLi [Member]                        
Operating Lease, Lease Income         3 0 3 1        
Monthly Lease Revenue Amount $ 1                      
Depreciation         7 7 13 14        
Real Estate Investments, Net         202   202       $ 217  
CHINA                        
Operating Lease, Lease Income         9 6 15 13        
Depreciation         $ 16 $ 17 $ 32 $ 34        
v3.25.0.1
Note 7 - Investment Properties - Investment Properties (Details)
¥ in Thousands, $ in Thousands
Dec. 31, 2024
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2024
CNY (¥)
Mao Ye [Member]      
Cost $ 301 $ 301  
Less: Accumulated depreciation (243) (226)  
Currency translation effect (12) (22)  
Real Estate Investments, Net 46 53  
Jiang Huai [Member]      
Cost 0 580  
Currency translation effect 0 (83)  
Real Estate Investments, Net 124 137 ¥ 990
Less: Accumulated depreciation 0 (360)  
Carrying value of relinquished asset 0 137  
Cost of acquired asset 137 0  
Less: Accumulated depreciation of acquired asset (12) 0  
Currency translation effect (1) 0  
FuLi [Member]      
Cost 648 648  
Currency translation effect (78) (93)  
Real Estate Investments, Net 202 217  
Less: Accumulated depreciation $ (368) $ (338)  
v3.25.0.1
Note 8 - Other Assets (Details Textual)
$ in Thousands
 3 Months Ended
Jun. 30, 2021
USD ($)
Asset Impairment Charges, Total $ 1,580
v3.25.0.1
Note 8 - Other Assets - Other Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Deposits for rental and utilities and others $ 122 $ 234
Downpayment for Purchase of Investment Properties* 1,580 1,580
Less: Provision for Impairment (1,580) (1,580)
Currency translation effect 7 (2)
Total $ 129 $ 232
v3.25.0.1
Note 9 - Lines Of Credit- Line of Credit (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2024
Jun. 30, 2024
Trio Tech International Pte Ltd [Member]    
Interest Rate 1.25%  
Credit Limitation $ 3,895 $ 3,907
Unused credit $ 3,615 $ 3,626
Trio Tech International Pte Ltd [Member] | Maximum [Member]    
Interest Rate   1.25%
Universal (Far East) Pte. Ltd. [Member]    
Interest Rate 1.25%  
Credit Limitation $ 1,837 $ 1,843
Unused credit $ 1,770 $ 1,818
Universal (Far East) Pte. Ltd. [Member] | Maximum [Member]    
Interest Rate   1.25%
Trio-Tech (Malaysia) Sdn. Bhd.[Member]    
Interest Rate 2.00% 2.00%
Credit Limitation $ 334 $ 318
Unused credit $ 334 $ 318
v3.25.0.1
Note 10 - Accrued Expense - Accrued Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Payroll and related costs $ 1,148 $ 1,737
Commissions 152 164
Legal and audit 211 328
Sales tax and witholding Tax 93 34
Sales rebate 100 81
Travelling Expenses 44 25
Utilities 201 231
Warranty 19 27
Accrued purchase of materials and property, plant and equipment 178 553
Provision for reinstatement 380 380
Other accrued expense 146 52
Currency translation effect 23 22
Total $ 2,695 $ 3,634
v3.25.0.1
Note 11 - Assurance Warranty Accrual - Warrant Liability (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2024
Jun. 30, 2024
Beginning $ 27 $ 24
Additions charged to cost and expense 0 21
Utilization (8) (20)
Currency translation effect 0 2
Ending $ 19 $ 27
v3.25.0.1
Note 12 - Bank Loans Payable - Bank Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Bank loan payable $ 782 $ 874
Current portion of bank loans payable 245 235
Currency translation effect on current portion of bank loans 13 26
Current portion of bank loans payable 258 261
Long-term portion of bank loans payable 491 591
Currency translation effect on long-term portion of bank loans 33 22
Long-term portion of bank loans payable 524 613
Notes Payable To Banks 1 [Member]    
Bank loan payable 551 596
Notes Payable To Banks 2 [Member]    
Bank loan payable 26 44
Notes Payable to Bank 3 [Member]    
Bank loan payable 106 124
Notes Payable to Bank 4 [Member]    
Bank loan payable $ 99 $ 110
v3.25.0.1
Note 12 - Bank Loans Payable - Bank Loans (Details) (Parentheticals) - USD ($)
 6 Months Ended 12 Months Ended
Dec. 31, 2024
Jun. 30, 2024
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] Prime Rate [Member] Prime Rate [Member]
Notes Payable To Banks 1 [Member]    
Carrying value $ 2,237 $ 2.208
Effective rate 4.85% 4.85%
Basis spread rate 2.00% 2.00%
Notes Payable To Banks 2 [Member]    
Fixed Interest Rate 3.20% 3.20%
Notes Payable to Bank 3 [Member]    
Fixed Interest Rate 3.00% 3.00%
Notes Payable to Bank 4 [Member]    
Fixed Interest Rate 3.00% 3.00%
v3.25.0.1
Note 12 - Bank Loans Payable - Future Minimum Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Remainder of Fiscal year $ 137  
Next fiscal year 242 $ 260
Two fiscal years after 222 230
Thereafter 181  
Total obligations and commitments $ 782 874
Three fiscal years after   212
Thereafter   $ 172
v3.25.0.1
Note 13 - Commitments and Contingencies (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Contractual Obligation $ 79 $ 65
v3.25.0.1
Note 14 - Business Segments (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer, Including Assessed Tax $ 8,619 $ 12,202 $ 18,418 $ 22,168
Intersegment Eliminations [Member]        
Revenue from Contract with Customer, Including Assessed Tax $ 22 $ 83    
v3.25.0.1
Note 14 - Business Segments - Business Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2024
Revenues $ 8,619 $ 12,202 $ 18,418 $ 22,168  
Gross Profit / (Loss) 2,218 2,854 4,540 5,374  
Operating Income / (Loss) (3) 677 130 676  
Total Assets 39,800 46,598 39,800 46,598 $ 42,540
Depreciation and Amortization 711 1,313 1,422 2,784  
Capital Expenditures 119 81 252 158  
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]          
Revenues 9 6 15 13  
Gross Profit / (Loss) (9) (13) (20) (23)  
Operating Income / (Loss) (77) 41 (114) (110)  
Total Assets 2,826 2,914 2,826 2,914  
Depreciation and Amortization 17 17 34 35  
Capital Expenditures 0 0 0  
Semiconductor Back-end Solutions [Member] | Operating Segments [Member]          
Revenues 5,809 7,896 12,688 15,072  
Gross Profit / (Loss) 1,742 1,982 3,536 3,862  
Operating Income / (Loss) 97 342 274 302  
Total Assets 30,704 35,508 30,704 35,508  
Depreciation and Amortization 639 1,239 1,275 2,624  
Capital Expenditures 119 81 252 158  
Industrial Electronics [Member] | Operating Segments [Member]          
Revenues 2,801 4,300 5,715 7,083  
Gross Profit / (Loss) 485 885 1,024 1,535  
Operating Income / (Loss) (23) 294 (30) 484  
Total Assets 6,270 8,176 6,270 8,176  
Depreciation and Amortization 55 57 113 125  
Capital Expenditures $ 0 $ 0 $ 0  
v3.25.0.1
Note 15 - Other (Expense) Income - Other Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Interest income $ 82 $ 96 $ 183 $ 174
Other rental income 42 36 80 72
Exchange gain / (loss) 550 (236) 44 (177)
Other miscellaneous income 12 22 14 45
Total $ 686 $ (82) $ 321 $ 114
v3.25.0.1
Note 16 - Government Grants (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Government Assistance, Income, Increase (Decrease) $ 5 $ 4 $ 71 $ 77
Financial Assistance Received From the Chinese Government [Member        
Government Assistance, Income, Increase (Decrease) $ 5 $ 4 9  
Financial Assistance Received From the Singapore Government [Member]        
Government Assistance, Income, Increase (Decrease)     $ 62 16
Employee Retention Credit [Member]        
Government Assistance, Income, Increase (Decrease)       $ 57
v3.25.0.1
Note 16 - Government Grants - Grants Received (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Government grant $ 5 $ 4 $ 71 $ 77
v3.25.0.1
Note 17 - Income Tax (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation, GILTI, Amount $ 0 $ 15 $ 0 $ 30
Income Tax Expense (Benefit) 139 95 $ 190 $ 132
Effective Income Tax Rate Reconciliation, Percent     38.30% 16.10%
Unrecognized Tax Benefits $ 0 $ 0 $ 0 $ 0
v3.25.0.1
Note 18 - Revenue (Details Textual)
$ in Thousands
 6 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Number of Operating Segments 2  
Revenue, Remaining Performance Obligation, Amount $ 0 $ 0
v3.25.0.1
Note 18 - Revenue - Revenue by Product and Service (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Trade Accounts Receivable $ 9,881 $ 10,661
Accounts Payable 1,804 3,175
Contract Liabilities $ 721 $ 754
v3.25.0.1
Note 19 - Earnings Per Share (Details Textual) - $ / shares
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding (in shares) 741,750 617,000 741,750 617,000
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share)     $ 2.53 $ 2.53
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share)     $ 7.76 $ 7.76
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) 140,500 284,500 140,500 284,500
v3.25.0.1
Note 19 - Earnings Per Share - Computation of Basic and Diluted EPS (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax $ 511 $ 503 $ 271 $ 730
Income attributable to Trio-Tech International common shareholders from discontinued operations, net of tax (4) 4 0 7
Net Income Attributable to Trio-Tech International Common Shareholders $ 507 $ 507 $ 271 $ 737
Weighted average number of common shares outstanding - basic (in shares) 4,250 4,120 4,250 4,109
Dilutive effect of stock options (in shares) 153 139 119 161
Number of shares used to compute earnings per share - diluted (in shares) 4,403 4,259 4,369 4,270
Basic earnings per share from continuing operations attributable to Trio-Tech International (in dollars per share) $ 0.12 $ 0.12 $ 0.06 $ 0.18
Basic earnings per share from discontinued operations attributable to Trio-Tech International (in dollars per share) 0 0 0 0
Basic Earnings per Share from Net Income (in dollars per share) 0.12 0.12 0.06 0.18
Diluted earnings per share from continuing operations attributable to Trio-Tech International (in dollars per share) 0.12 0.12 0.06 0.17
Diluted earnings per share from discontinued operations attributable to Trio-Tech International (in dollars per share) 0 0 0 0
Diluted Earnings per Share from Net Income (in dollars per share) [1] $ 0.12 $ 0.12 $ 0.06 $ 0.17
[1] For periods in which the Company has reported net loss, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, because dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.
v3.25.0.1
Note 20 - Stock Options (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2020
Dec. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2024
Oct. 31, 2023
Sep. 24, 2017
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Payments     $ 0          
Employee Stock Option Plan 2017 [Member]                
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) 600,000             300,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized (in shares) 300,000              
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) 10 years              
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) 5 years              
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)       40,000 48,000      
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares)       (0) 63,875      
Share-Based Payment Arrangement, Expense       $ 125 $ 90      
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number (in shares)     164,500 164,500 88,250      
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price (in dollars per share)     $ 5.54 $ 5.54 $ 5.59      
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term (Year)       2 years 7 months 2 days 3 years 29 days      
Employee Stock Option Plan 2017 [Member] | Share-Based Payment Arrangement, Tranche One [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage 25.00%              
Director Plan 2017 [Member]                
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)   600,000         900,000 300,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized (in shares)   300,000            
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year)   5 years            
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)       0 0      
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares)       0 0      
Share-Based Payment Arrangement, Expense       $ 0 $ 0      
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number (in shares)     431,000 431,000 420,000      
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price (in dollars per share)     $ 5.24 $ 5.24 $ 4.91      
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term (Year)       2 years 4 months 17 days 2 years 4 months 28 days      
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares (in shares)     0 0 0      
Minimum [Member]                
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term (Year)     2 years 6 months          
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate     0.11%     0.20%    
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate     47.30%     47.30%    
Maximum [Member]                
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term (Year)     3 years 3 months          
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate     4.59%     4.59%    
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate     73.90%     72.20%    
v3.25.0.1
Note 20 - Stock Options - Summary of 2017 Employee Plan Options Activities (Details) - USD ($)
 6 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Employee Stock Option Plan 2017 [Member]        
Outstanding. options (in shares) 270,750 216,375 216,375  
Outstanding, weighted average exercise price (in dollars per share) $ 5.35 $ 4.89 $ 4.89  
Outstanding, weighted average remaining contractual term (Year) 3 years 1 month 17 days 3 years 6 months 3 days 3 years 5 months 4 days 2 years 11 months 1 day
Aggregate intrinsic value outstanding $ 204 $ 39 $ 268 $ 140
Granted, options (in shares) 40,000 48,000    
Granted, weighted average exercise price (in dollars per share) $ 6.17 $ 4.88    
Exercised, options (in shares) 0 (63,875)    
Exercised, weighted average exercise price (in dollars per share) $ 0 $ 3.12    
Forfeited or expired, options (in shares) 0 (3,500)    
Outstanding, options (in shares) 310,750 197,000 270,750 216,375
Outstanding, weighted average exercise price (in dollars per share) $ 5.45 $ 5.48 $ 5.35 $ 4.89
Exercisable, options (in shares) 164,500 88,250    
Exercisable, weighted average exercise price (in dollars per share) $ 5.54 $ 5.59    
Exercisable, weighted average remaining contractual term (Year) 2 years 7 months 2 days 3 years 29 days    
Exercisable, aggregate intrinsic value $ 107 $ 16    
Exercised, options (in shares) 0 (63,875)    
Director Plan 2017 [Member]        
Outstanding. options (in shares) 431,000 420,000 420,000  
Outstanding, weighted average exercise price (in dollars per share) $ 5.24 $ 4.91 $ 4.91  
Outstanding, weighted average remaining contractual term (Year) 2 years 4 months 17 days 2 years 4 months 28 days 2 years 10 months 17 days 2 years 10 months 28 days
Aggregate intrinsic value outstanding $ 439 $ 352 $ 531 $ 309
Granted, options (in shares) 0 0    
Granted, weighted average exercise price (in dollars per share) $ 0 $ 0    
Exercised, options (in shares) 0 0    
Exercised, weighted average exercise price (in dollars per share) $ 0      
Forfeited or expired, options (in shares) 0      
Outstanding, options (in shares) 431,000 420,000 431,000 420,000
Outstanding, weighted average exercise price (in dollars per share) $ 5.24 $ 4.91 $ 5.24 $ 4.91
Exercisable, options (in shares) 431,000 420,000    
Exercisable, weighted average exercise price (in dollars per share) $ 5.24 $ 4.91    
Exercisable, weighted average remaining contractual term (Year) 2 years 4 months 17 days 2 years 4 months 28 days    
Exercisable, aggregate intrinsic value $ 439 $ 352    
Exercised, options (in shares) 0 0    
v3.25.0.1
Note 20 - Stock Options - Summary of Nonvested Employee Stock (Details) - Employee Stock Option Plan 2017 [Member] - $ / shares
 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Non-vested options outstanding (in shares) 134,500 81,750
Non-vested, weighted average grant date fair value (in dollars per share) $ 5.12 $ 5.53
Granted (in shares) 40,000 48,000
Granted, weighted average grant date fair value (in dollars per share) $ 5.65 $ 4.88
Vested (in shares) (28,250) (21,000)
Non-vested options outstanding (in shares) 146,250 108,750
Non-vested, weighted average grant date fair value (in dollars per share) $ 5.35 $ 5.38
v3.25.0.1
Note 20 - Stock Options - Summary of 2017 Directors Plan Options Activities (Details) - Director Plan 2017 [Member] - USD ($)
 6 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Outstanding. options (in shares) 431,000 420,000 420,000  
Outstanding, weighted average exercise price (in dollars per share) $ 5.24 $ 4.91 $ 4.91  
Outstanding, weighted average remaining contractual term (Year) 2 years 4 months 17 days 2 years 4 months 28 days 2 years 10 months 17 days 2 years 10 months 28 days
Aggregate intrinsic value outstanding $ 439 $ 352 $ 531 $ 309
Granted, options (in shares) 0 0    
Granted, weighted average exercise price (in dollars per share) $ 0 $ 0    
Exercise of stock option (in shares) 0 0    
Exercised, weighted average exercise price (in dollars per share) $ 0      
Forfeited or expired, options (in shares) 0      
Forfeited or expired, weighted average exercise price (in dollars per share) $ 0      
Outstanding, options (in shares) 431,000 420,000 431,000 420,000
Outstanding, weighted average exercise price (in dollars per share) $ 5.24 $ 4.91 $ 5.24 $ 4.91
Exercisable, options (in shares) 431,000 420,000    
Exercisable, weighted average exercise price (in dollars per share) $ 5.24 $ 4.91    
Exercisable, weighted average remaining contractual term (Year) 2 years 4 months 17 days 2 years 4 months 28 days    
Exercisable, aggregate intrinsic value $ 439 $ 352    
v3.25.0.1
Note 21 - Leases (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Lessor Asset under Operating Lease, Term (Year) 20 years  
Depreciation, Lessor Asset under Operating Lease $ 17 $ 34
Operating Lease, Lease Not yet Commenced [Member]    
Unrecorded Unconditional Purchase Obligation, to be Paid, Remainder of Fiscal Year 9  
Unrecorded Unconditional Purchase Obligation, to be Paid, Year One 69  
Unrecorded Unconditional Purchase Obligation, to be Paid, Year Two 66  
Unrecorded Unconditional Purchase Obligation Due After Two Years $ 123  
Minimum [Member]    
Lessor, Operating Lease, Term of Contract (Month) 12 months  
Lessee, Operating Lease, Remaining Lease Term (Year) 1 year  
Maximum [Member]    
Lessor, Operating Lease, Term of Contract (Month) 60 months  
Lessee, Operating Lease, Remaining Lease Term (Year) 4 years  
v3.25.0.1
Note 21 - Leases - Future Minimum Rental Income (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Remainder of fiscal year $ 78  
Fiscal year after 61 $ 131
Two fiscal years after 32 44
Three fiscal years after 17 16
Four fiscal years after 4  
Payments to be received, total $ 192 $ 191
v3.25.0.1
Note 21 - Leases - Supplement Balance Sheet Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2024
Plant and equipment, at cost $ 1,642   $ 1,642   $ 1,649
Accumulated depreciation (1,110)   (1,110)   (1,091)
Plant and Equipment, Net 532   532   558
Current portion of finance leases 42   42   57
Net of current portion of finance leases 12   12   34
Total Finance Lease Liabilities 54   54   91
Operating lease right-of-use assets 1,197   1,197   1,887
Current portion of operating leases 943   943   1,162
Net of current portion of operating leases 254   254   725
Total Operating Lease Liabilities 1,197   1,197   $ 1,887
Interest on finance lease 1 $ 2 2 $ 5  
Amortization of right-of-use assets 19 12 38 56  
Total finance lease cost 20 14 40 61  
Operating Lease Costs $ 387 $ 385 $ 775 $ 754  
v3.25.0.1
Note 21 - Leases - Other Information (Details) - USD ($)
$ in Thousands
 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Operating cash flows from finance leases $ 2 $ 3
Operating cash flows from operating leases 722 693
Finance cash flows from finance leases $ 38 55
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities   $ 0
Finance leases (Year) 1 year 3 months 9 months 18 days
Operating leases (Year) 1 year 6 months 2 years 29 days
Finance leases 2.28% 2.89%
Operating leases 5.51% 5.51%
v3.25.0.1
Note 21 - Leases - Future Minimum Lease Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Remainder of Fiscal year, operating lease $ 670  
Remainder of Fiscal year, finance lease 22  
next fiscal year, operating lease 437 $ 1,234
next fiscal year, finance lease 34 61
Two fiscal years after, operating lease 55 658
Two fiscal years after, finance lease 34
Thereafter, operating lease 86  
Thereafter, finance lease 0  
Total future minimum lease payments, operating lease 1,248 1,978
Total future minimum lease payments, finance lease 56 95
Less: amount representing interest, operating lease (51) (91)
Less: amount representing interest, finance lease (2) (4)
Present value of net minimum lease payments, operating lease 1,197 1,887
Present value of net minimum lease payments, finance lease 54 91
Current, operating lease 943 1,162
Current, finance lease 42 57
Non-current, operating lease 254 725
Non-Current, finance lease $ 12 34
Three fiscal years after, operating lease   86
Three fiscal years after, finance lease   $ 0
v3.25.0.1
Note 23 - Concentration of Customers (Details Textual)
Dec. 31, 2024
Number of Major Customers 3
v3.25.0.1
Note 23 - Concentration of Customers - Revenue and Trade Accounts Receivables (Details) - Customer Concentration Risk [Member]
 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Revenue Benchmark [Member] | Customer A [Member]    
Concentration risk 20.80% 21.80%
Revenue Benchmark [Member] | Customer B [Member]    
Concentration risk 18.00% 17.70%
Revenue Benchmark [Member] | Customer C [Member]    
Concentration risk 10.30% 13.90%
Accounts Receivable [Member] | Customer A [Member]    
Concentration risk 20.30% 21.00%
Accounts Receivable [Member] | Customer B [Member]    
Concentration risk 17.00% 24.40%
Accounts Receivable [Member] | Customer C [Member]    
Concentration risk 18.50% 22.80%
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