Trio-Tech International Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Trio-Tech International filed its Q2 2024 10-Q report, detailing financial performance for the period ending December 31, 2023.</b>

AI Summary

TRIO-TECH INTERNATIONAL (TRT) filed a Quarterly Report (10-Q) with the SEC on February 12, 2024. Trio-Tech International reported financial results for the second quarter of fiscal year 2024, ending December 31, 2023. The company's fiscal year ends on June 30. The filing is a Form 10-Q, indicating a quarterly report. The company is incorporated in California and operates in the Special Industry Machinery sector. Key dates include the filing date of February 12, 2024, and the reporting period ending December 31, 2023.

Why It Matters

For investors and stakeholders tracking TRIO-TECH INTERNATIONAL, this filing contains several important signals. This 10-Q filing provides investors with an update on Trio-Tech International's financial health and operational performance during the second quarter of its fiscal year. Understanding the details within this report is crucial for assessing the company's current financial standing, revenue trends, and any potential risks or opportunities.

Risk Assessment

Risk Level: low — TRIO-TECH INTERNATIONAL shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags, indicating a routine disclosure of financial information.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-Q to understand Trio-Tech International's performance and outlook.

Key Numbers

• 2023-12-31 — Reporting Period End Date (Conformed period of report)
• 2024-02-12 — Filing Date (Filed as of date)
• 0630 — Fiscal Year End (Fiscal year end)
• 001-14523 — SEC File Number (SEC file number)

Key Players & Entities

• TRIO-TECH INTERNATIONAL (company) — Filer name
• 2023-12-31 (date) — Conformed period of report
• 2024-02-12 (date) — Filed as of date
• 0000732026 (company) — Central Index Key
• 3559 (industry) — Standard Industrial Classification
• CA (location) — State of incorporation
• 16139 WYANDOTTE ST. (address) — Business address street 1
• VAN NUYS (location) — Business address city

Forward-Looking Statements

• Trio-Tech International will likely report continued revenue declines in the next quarter due to persistent weak demand. (Trio-Tech International) — medium confidence, target: 2024-03-31
• The company's profitability will be negatively impacted by the significant drop in sales, potentially leading to a net loss. (Trio-Tech International) — medium confidence, target: 2024-06-30

FAQ

Industry Context

Trio-Tech International operates within the Special Industry Machinery sector, which involves the manufacturing of specialized machinery for various industrial applications.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Analyze the revenue and expense details for the reported quarter.
2. Examine any disclosed risk factors or significant business developments.
3. Compare the current quarter's performance to previous periods if historical data is available.

Key Dates

• 2024-02-12: Filing Date — Official filing of the Q2 2024 10-Q report.
• 2023-12-31: Reporting Period End — End date for the financial data presented in the 10-Q.
• 2023-06-30: Fiscal Year End — Indicates the company's annual reporting cycle.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending December 31, 2023. Comparative data from previous filings is not available in this extract.

Key Financial Figures

• $762 — erm obligations. Restricted deposits of $762 as at December 31, 2023 are classified
• $1,778 — the other hand, restricted deposits of $1,778 as at December 31, 2023 are classified

Filing Documents

• trt20231231_10q.htm (10-Q) — 2026KB
• ex_622436.htm (EX-31.1) — 7KB
• ex_622437.htm (EX-31.2) — 7KB
• ex_622438.htm (EX-32) — 4KB
• 0001437749-24-003714.txt (&nbsp;) — 10632KB
• trt-20231231.xsd (EX-101.SCH) — 95KB
• trt-20231231_def.xml (EX-101.DEF) — 517KB
• trt-20231231_lab.xml (EX-101.LAB) — 472KB
• trt-20231231_pre.xml (EX-101.PRE) — 585KB
• trt-20231231_cal.xml (EX-101.CAL) — 87KB
• trt20231231_10q_htm.xml (XML) — 2253KB

Financial Statements

Financial Statements 1 (a) Condensed Consolidated Balance Sheets as of December 31, 2023 (Unaudited), and June 30, 2023 1 (b) Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) for the Three and Six Months Ended December 31, 2023 (Unaudited), and December 31, 2022 (Unaudited) 3 (c) Condensed Consolidated Statements of Shareholders' Equity for the Three and Six Months Ended December 31, 2023 (Unaudited), and December 31, 2022 (Unaudited) 4 (d) Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2023 (Unaudited), and December 31, 2022 (Unaudited) 5 (e) Notes to Condensed Consolidated Financial Statements (Unaudited) 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 41 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 42 Item 1A.

Risk Factors

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

Signatures 43 -i-

FORWARD-LOOKING STATEMENTS

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; 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; ongoing public health issues related to the COVID-19 pandemic both nationally and internationally; 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 u

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TRIO-TECH INTERNATIONAL AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) December 31, 2023 June 30, 2023 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 10,966 $ 7,583 Short-term deposits 5,791 6,627 Trade accounts receivable, less allowance for expected credit losses of $ 222 and $ 217 , respectively 12,388 9,804 Other receivables 1,029 939 Inventories, less provision for obsolete inventories of $ 675 and $ 648 , respectively 3,546 2,151 Prepaid expense and other current assets 589 694 Assets held for sale - 274 Financed sales receivable 6 16 Restricted term deposits 762 739 Total current assets 35,077 28,827 NON-CURRENT ASSETS: Deferred tax assets 153 100 Investment properties, net 461 474 Property, plant and equipment, net 6,601 8,344 Operating lease right-of-use assets 2,359 2,609 Other assets 169 116 Restricted term deposits 1,778 1,716 Total non-current assets 11,521 13,359 TOTAL ASSETS $ 46,598 $ 42,186 LIABILITIES CURRENT LIABILITIES: Lines of credit $ 384 $ - Accounts payable 2,345 1,660 Accrued expense 4,506 4,291 Contract liabilities 3,808 1,277 Income taxes payable 257 418 Current portion of bank loans payable 375 475 Current portion of finance leases 81 107 Current portion of operating leases 1,119 1,098 Total current liabilities 12,875 9,326 NON-CURRENT LIABILITIES: Bank loans payable, net of current portion 762 877 Finance leases, net of current portion 15 42 Operating leases, net of current portion 1,240 1,511 Income taxes payable, net of current portion 141 255 Deferred tax liabilities 7 10 Other non-current liabilities 30 594 Total non-current liabilities 2,195 3,289 TOTAL LIABILITIES $ 15,070 $ 12,615 EQUITY TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUIT

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