Revenue Performance - Total revenue for Q3 2024 increased by 6% to $10,398,000 compared to $9,842,000 in Q3 2023[3] - Manufacturing segment revenue surged by 62% to $4,813,000, while Distribution segment revenue rose by 51% to $1,783,000[3] - Testing Services segment revenue decreased by 33% to $3,796,000, reflecting ongoing weakness in global semiconductor demand[3][8] - For the first nine months of fiscal 2024, total revenue decreased by 5% to $32,566,000 compared to $34,171,000 in the same period last year[9] - Manufacturing revenue for the first nine months increased by 8% to $12,488,000, while Distribution revenue rose by 33% to $6,453,000[9] Profitability - Gross margin for Q3 2024 improved to $2,703,000, representing 26% of revenue, up from 25% in the same quarter last year[4] - Net income attributable to common shareholders for Q3 2024 was $70,000, or $0.02 per diluted share, compared to a net loss of $7,000 in Q3 2023[6] - Net income for the three months ended March 31, 2024, was $163,000, compared to $54,000 for the same period in 2023, representing a significant increase[19] - Comprehensive loss attributable to Trio-Tech International for the three months ended March 31, 2024, was $(683,000), compared to a comprehensive income of $305,000 for the same period in 2023[19] Financial Position - Cash, cash equivalents, and short-term deposits increased to $17,025,000, or $4.04 per outstanding share, as of March 31, 2024[13] - Shareholders' equity increased to $31,452,000, or $7.47 per outstanding share, compared to $29,571,000 at June 30, 2023[13] - Total current assets increased to $32,270,000 as of March 31, 2024, from $28,827,000 as of June 30, 2023, reflecting a growth of approximately 15.9%[21] - Cash and cash equivalents rose to $10,716,000 as of March 31, 2024, compared to $7,583,000 as of June 30, 2023, indicating an increase of about 41.9%[21] - Total liabilities decreased to $11,635,000 as of March 31, 2024, from $12,615,000 as of June 30, 2023, showing a reduction of approximately 7.8%[21] - Shareholders' equity for Trio-Tech International increased to $31,242,000 as of March 31, 2024, up from $29,406,000 as of June 30, 2023, representing an increase of about 6.3%[21] - The company’s accumulated retained earnings increased to $11,570,000 as of March 31, 2024, from $10,763,000 as of June 30, 2023, showing a growth of approximately 7.5%[21] Currency and Asset Changes - The company reported a foreign currency translation loss of $(753,000) for the three months ended March 31, 2024, compared to a gain of $166,000 for the same period in 2023[19] - Total non-current assets decreased to $10,817,000 as of March 31, 2024, from $13,359,000 as of June 30, 2023, reflecting a decline of approximately 19.0%[21] - Accounts payable increased to $2,406,000 as of March 31, 2024, compared to $1,660,000 as of June 30, 2023, indicating a rise of about 45.0%[21] Management Outlook - The CEO expressed cautious optimism regarding continued favorable trends in revenue and profitability for the Manufacturing and Distribution segments[7]

Revenue Performance - Total revenue increased by $556, or 5.6%, to $10,398 in Q3 Fiscal 2024, compared to $9,842 in Q3 Fiscal 2023[143] - Manufacturing segment revenue increased by $1,850, or 62.4%, to $4,813 in Q3 Fiscal 2024, compared to $2,963 in Q3 Fiscal 2023[143] - Testing segment revenue decreased by $1,901, or 33.4%, to $3,796 in Q3 Fiscal 2024, compared to $5,697 in Q3 Fiscal 2023[143] - Distribution segment revenue increased by $604, or 51.2%, to $1,783 in Q3 Fiscal 2024, compared to $1,179 in Q3 Fiscal 2023[143] - Revenue in the Manufacturing segment accounted for 46.3% of total revenue in Q3 Fiscal 2024, up from 30.1% in Q3 Fiscal 2023[145] - Revenue in the Testing segment accounted for 36.5% of total revenue in Q3 Fiscal 2024, down from 57.9% in Q3 Fiscal 2023[145] - Distribution segment revenue increased to $1,783 million for the three months ended March 31, 2024, up from $1,179 million in 2023, with income from operations rising to $222 million from $151 million[183] - Manufacturing segment revenue increased to $12,488 million for the nine months ended March 31, 2024, up from $11,592 million in 2023, with income from operations rising to $447 million from $373 million[206] - Testing segment revenue decreased to $13,606 million for the nine months ended March 31, 2024, down from $17,709 million in 2023, resulting in a loss from operations of $463 million compared to an income of $1,445 million[207] - Distribution segment revenue for the nine months ended March 31, 2024, was $6,453 million, an increase of 33% from $4,855 million in the same period of 2023[208] Profitability and Margins - Overall gross profit margin increased by 1.0% to 26.0% in Q3 Fiscal 2024, from 25.0% in Q3 Fiscal 2023[143] - For the three months ended March 31, 2024, overall gross margin increased by 1.0% to 26.0%, with gross profits rising by $245 to $2,703 compared to $2,458 in the same period of Fiscal 2023[162] - Manufacturing segment revenue increased to $4,813, with gross margin rising to 25.3% from 17.3%, resulting in income from operations of $298 compared to a loss of $104 in the same period of Fiscal 2023[181] - Testing segment revenue decreased to $3,796, with a gross margin of 31.5%, resulting in a loss from operations of $183, down from income of $37 in the same period of Fiscal 2023[182] - Distribution segment gross profit increased by $97 to $301, despite a marginal decrease in gross profit margin to 16.9% from 17.3%[165] - Overall gross margin decreased by 2.8% to 24.8% for the nine months ended March 31, 2024, down from 27.6% in the same period of 2023, with gross profits decreasing by $1,338 million to $8,077 million[188] - Gross margin for the Distribution segment improved to 17.6% in 2024 from 16.3% in 2023[208] Operating Income and Expenses - Income from operations was $59 in Q3 Fiscal 2024, an increase of $96 compared to a loss of $37 in Q3 Fiscal 2023[143] - General and administrative expenses increased by $103, or 4.6%, to $2,351, primarily due to higher professional fees and remuneration expenses[169] - Selling expenses increased by $44, or 27.5%, to $204, mainly due to increased travel costs associated with business travel[170] - Corporate operating loss increased to $255 million for the three months ended March 31, 2024, compared to a loss of $87 million in the same period in 2023, primarily due to higher stock compensation and professional fees[186] - Corporate loss from operations decreased to $41 million in 2024 from $276 million in 2023[210] Net Income and Earnings Per Share - Net income attributable to common shareholders was $39 for the three months ended March 31, 2024, a change of $46 from a net loss of $7 in the same period of Fiscal 2023[177] - Basic earnings per share from continuing operations were $0.02 for the three months ended March 31, 2024, compared to $nil for the same period in Fiscal 2023[178] - Net income attributable to common shareholders decreased to $776 million for the nine months ended March 31, 2024, down from $1,382 million in 2023, primarily due to decreased revenue and gross margin[202] - Basic earnings per share from continuing operations was $0.19 for the nine months ended March 31, 2024, compared to $0.34 for the same period in 2023[203] Assets and Liabilities - Total assets increased by $901 to $43,087 as of March 31, 2024, compared to $42,186 as of June 30, 2023[143] - Total liabilities decreased by $980 to $11,635 as of March 31, 2024, compared to $12,615 as of June 30, 2023[143] - Cash and cash equivalents rose by $3,133 million to $10,716 million as of March 31, 2024, attributed to cash generated from operations[212] - Trade accounts receivable increased by $279 million to $10,083 million as of March 31, 2024, primarily due to longer credit terms in Singapore operations[214] Other Income and Expenses - Interest expense decreased by $12, or 41.4%, to $17 for the three months ended March 31, 2024, due to lower utilization of credit facilities[172] - Interest expense decreased by $20 to $63 million for the nine months ended March 31, 2024, from $83 million in the same period of 2023 due to lower utilization of credit facilities[197] - Other income increased by $212 to $252, primarily driven by favorable foreign currency impacts and increased interest income[173] - Other income increased to $366 million for the nine months ended March 31, 2024, compared to an expense of $49 million in 2023, driven by favorable foreign currency impacts and increased interest income[198] Real Estate Segment - Real Estate segment revenue was $6 million for the three months ended March 31, 2024, compared to $3 million in 2023, with a loss from operations of $23 million, improved from a loss of $34 million[184] - Real Estate segment revenue was $19 million for the nine months ended March 31, 2024, up from $15 million in 2023[209] Financing Activities - The company filed a shelf registration statement to raise up to $10,000 million for expansion and working capital purposes[227]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2023 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 FORM 10-Q (State or other jurisdi ...

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 September 30, 2023 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 jurisd ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (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) For the fiscal year ended June 30, 2023 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 ☑ ANNUAL REPORT PUR ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☐ 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 Block 1008 Toa Payoh North Unit 03-09 Singapore 318996 ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECU ...

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, 2022 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 jurisdic ...

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 September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ___ to ___ California 95-2086631 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) Block 1008 Toa Payoh North Un ...

Part I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Trio-Tech International operates primarily in the semiconductor industry across manufacturing, testing, and distribution segments, with a minor real estate component and significant customer concentration - The company operates in four segments: manufacturing, testing services, distribution, and real estate, with operations spanning the U.S. and Asia[17](index=17&type=chunk) - Revenue from the semiconductor industry (testing, manufacturing, distribution) constituted **99.9% of total revenue** for fiscal years 2022 and 2021[20](index=20&type=chunk) - Strategic goals include market share expansion, geographic growth, new product development, and pursuing strategic relationships or acquisitions[23](index=23&type=chunk) - In fiscal 2022, sales to the top three customers represented approximately **65.9% of total net revenue**, with one major customer contributing **40.3%**[37](index=37&type=chunk) Backlog by Segment (in thousands) | Backlog by Segment (in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Manufacturing | $6,977 | $5,040 | | Testing services | $5,698 | $3,775 | | Distribution | $4,687 | $4,648 | | Real estate | $101 | $40 | | **Total** | **$17,463** | **$13,503** | - As of June 30, 2022, the company employed approximately **740 full-time employees**, with **732 in Asia** and **8 in the U.S.**[47](index=47&type=chunk) [Item 1A. Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Trio-Tech is exempt from providing detailed risk factor disclosures - As a smaller reporting company under Rule 12b-2 of the Exchange Act, Trio-Tech is not required to provide Item 1A information[49](index=49&type=chunk) [Item 2. Properties](index=12&type=section&id=Item%202.%20Properties) The company operates from owned and leased facilities across the U.S. and Asia, primarily for testing services, deemed adequate for foreseeable needs - The company owns testing facilities in Selangor, Malaysia (approx. **78,706 sq. ft.**) and Bangkok, Thailand (approx. **34,433 sq. ft.**)[53](index=53&type=chunk) - Leased properties in California, Singapore, and China support corporate, testing, and manufacturing operations, with lease expirations between 2022 and 2026[53](index=53&type=chunk) [Item 3. Legal Proceedings](index=13&type=section&id=Item%203.%20Legal%20Proceedings) The company faces routine litigation, but management anticipates no material adverse effect on financial statements, with no significant proceedings involving key personnel - Management asserts that current litigation claims and assessments will not materially and adversely affect the company's consolidated financial statements[54](index=54&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=15&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NYSE American under 'TRT', with no cash dividends declared in fiscal years 2021 or 2022 - The company's common stock is traded on the NYSE American under the symbol **"TRT"**[58](index=58&type=chunk) - No cash dividends were declared for the fiscal years ended June 30, 2022, or June 30, 2021[59](index=59&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2022 saw significant revenue growth to **$44,065 thousand**, a shift to **$2,395 thousand net profit**, improved gross margin, and strengthened financial position, with sufficient liquidity for the next 12 months [Fiscal 2022 Highlights and Financial Condition](index=16&type=section&id=Fiscal%202022%20Highlights%20and%20Financial%20Condition) Fiscal 2022 highlights include a **35.7% revenue increase** to **$44,065 thousand**, a turnaround to **$2,395 thousand net profit**, and strengthened financial health with increased assets and working capital Key Financial Metrics (in thousands) | Key Financial Metrics (in thousands) | Fiscal 2022 | Fiscal 2021 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $44,065 | $32,462 | 35.7% | | Gross Profit | $11,733 | $7,670 | 53.0% | | Gross Margin | 26.6% | 23.6% | +3.0 pts | | Profit / (Loss) from Operations | $2,353 | $(61) | N/A | | Net Profit / (Loss) Attributable to Trio-Tech | $2,395 | $(591) | N/A | - Total assets increased by **13.3%** to **$43,421 thousand**, driven by increases in cash, trade receivables, and inventories[72](index=72&type=chunk) - Total liabilities increased by **25.8%** to **$15,419 thousand**, primarily due to higher lines of credit and accrued expenses[79](index=79&type=chunk) - Working capital increased by **13.6%** to **$17,273 thousand** as of June 30, 2022[71](index=71&type=chunk)[169](index=169&type=chunk) [Comparison of Operating Results](index=26&type=section&id=Comparison%20of%20Operating%20Results) Fiscal 2022 revenue grew **35.7%** to **$44,065 thousand**, driven by strong Testing and Distribution segment performance, leading to improved gross margin and a **$2,353 thousand operating profit** Revenue by Segment (in thousands) | Revenue by Segment (in thousands) | Fiscal 2022 | Fiscal 2021 | Change (%) | | :--- | :--- | :--- | :--- | | Manufacturing | $13,526 | $13,151 | 2.9% | | Testing Services | $19,477 | $13,846 | 40.7% | | Distribution | $11,037 | $5,437 | 103.0% | | Real Estate | $25 | $28 | -10.7% | | **Total** | **$44,065** | **$32,462** | **35.7%** | Gross Margin by Segment (%) | Gross Margin by Segment (%) | Fiscal 2022 | Fiscal 2021 | | :--- | :--- | :--- | | Manufacturing | 25.0% | 25.4% | | Testing Services | 33.5% | 24.7% | | Distribution | 17.1% | 17.7% | | Real Estate | (212.0)% | (157.0)% | - General and administrative expenses increased to **$8,361 thousand** from **$6,929 thousand**, primarily due to higher stock option compensation and payroll expenses[142](index=142&type=chunk) Earnings/(Loss) per Share | Earnings/(Loss) per Share | Fiscal 2022 | Fiscal 2021 | | :--- | :--- | :--- | | Basic EPS from continuing operations | $0.61 | $(0.16) | | Diluted EPS from continuing operations | $0.57 | $(0.15) | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is strong, supported by **$2,123 thousand** in operating cash flow, **$17,273 thousand** working capital, and approximately **$4,575 thousand** in unused credit lines, sufficient for the next 12 months - Net cash provided by operating activities was **$2,123 thousand** for fiscal 2022, an increase from **$1,638 thousand** in the prior year[165](index=165&type=chunk) - Capital expenditures totaled **$1,468 thousand** in Fiscal 2022, up from **$1,112 thousand** in Fiscal 2021, primarily for testing services across Asia[170](index=170&type=chunk) Unused Credit Facilities (as of June 30, 2022, in thousands) | Unused Credit Facilities (as of June 30, 2022, in thousands) | Credit Limitation | Unused Credit | | :--- | :--- | :--- | | Trio-Tech International Pte. Ltd., Singapore | $4,090 | $3,651 | | Universal (Far East) Pte. Ltd., Singapore | $1,076 | $586 | | Trio-Tech Malaysia Sdn. Bhd., Malaysia | $338 | $338 | - An S-3 registration statement filed in December 2021 allows the company to potentially raise up to **$10 million** for capacity expansion and working capital[168](index=168&type=chunk) [Item 9A. Controls and Procedures](index=35&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of June 30, 2022, management concluded that disclosure controls and internal control over financial reporting were effective, with no material changes during Q4 FY2022 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2022[179](index=179&type=chunk) - Management concluded that internal controls over financial reporting were effective as of June 30, 2022, based on the COSO framework[180](index=180&type=chunk)[184](index=184&type=chunk) - No material changes to internal control over financial reporting occurred during the fourth quarter of Fiscal 2022[185](index=185&type=chunk) Part III [Items 10-14. Directors, Executive Compensation, Security Ownership, and Related Transactions](index=38&type=section&id=Items%2010-14.%20Directors%2C%20Executive%20Compensation%2C%20Security%20Ownership%2C%20and%20Related%20Transactions) Information for Items 10-14, covering directors, executive compensation, and security ownership, is incorporated by reference from the company's Proxy Statement - Information for Items 10-14 is incorporated by reference from the company's definitive Proxy Statement for its 2022 Annual Meeting of Shareholders[190](index=190&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=38&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements and exhibits filed with the Form 10-K, including governing documents, compensatory plans, and required certifications - The financial statements, including the independent auditors' report, are filed as part of the Annual Report[192](index=192&type=chunk) - Exhibits include Articles of Incorporation, Bylaws, stock plans, employment agreements, and required certifications[198](index=198&type=chunk) Financial Statements and Supplementary Data [Report of Independent Registered Public Accounting Firm](index=42&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Mazars LLP issued an unqualified opinion on the consolidated financial statements for FY2022 and FY2021, confirming fair presentation in conformity with U.S. GAAP and no critical audit matters - Mazars LLP provided an unqualified audit opinion on the company's consolidated financial statements[204](index=204&type=chunk) - The audit was conducted per PCAOB standards, with no critical audit matters identified[206](index=206&type=chunk)[209](index=209&type=chunk) [Consolidated Financial Statements](index=43&type=section&id=Consolidated%20Financial%20Statements) This section presents the audited consolidated financial statements, including Balance Sheets, Statements of Operations, Shareholders' Equity, and Cash Flows for fiscal years 2022 and 2021 Balance Sheet Highlights (in thousands) | Balance Sheet Highlights (in thousands) | June 30, 2022 | June 30, 2021 | | :--- | :--- | :--- | | Total Current Assets | $29,202 | $23,959 | | Total Assets | $43,421 | $38,306 | | Total Current Liabilities | $11,929 | $8,759 | | Total Liabilities | $15,419 | $12,253 | | Total Shareholders' Equity | $28,002 | $26,053 | Statement of Operations Highlights (in thousands) | Statement of Operations Highlights (in thousands) | Year Ended June 30, 2022 | Year Ended June 30, 2021 | | :--- | :--- | :--- | | Total Revenue | $44,065 | $32,462 | | Gross Margin | $11,733 | $7,670 | | Profit / (Loss) from Operations | $2,353 | $(61) | | Net Income / (Loss) | $2,299 | $(1,155) | | Net Income / (Loss) Attributable to Trio-Tech | $2,395 | $(591) | Cash Flow Highlights (in thousands) | Cash Flow Highlights (in thousands) | Year Ended June 30, 2022 | Year Ended June 30, 2021 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $2,123 | $1,638 | | Net Cash Used in Investing Activities | $(444) | $(567) | | Net Cash Provided by / (Used in) Financing Activities | $911 | $(2) | | Net Increase in Cash | $1,799 | $1,767 | [Notes to Consolidated Financial Statements](index=51&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on accounting policies, segment performance, customer concentration, revenue recognition, leases, stock compensation, and a **$1,580 thousand** FY2021 impairment charge [Note 9. Other Assets and Note 7. Investment Properties](index=63&type=section&id=Note%209.%20Other%20Assets%20and%20Note%207.%20Investment%20Properties) The company holds investment properties in China, generating **$25 thousand** rental income in FY2022, and recorded a **$1,580 thousand** impairment charge in FY2021 on a Chongqing property project - The company recorded a non-cash impairment charge of **$1,580 thousand** in Q4 fiscal 2021 due to doubtful recovery of a down payment on a Chongqing property project[110](index=110&type=chunk)[309](index=309&type=chunk) - Investment properties in China generated rental income of **$25 thousand** in FY2022 and **$28 thousand** in FY2021[301](index=301&type=chunk) [Note 16. Concentration of Customers](index=70&type=section&id=Note%2016.%20Concentration%20of%20Customers) The company faces significant customer concentration, with two major customers accounting for **40.3%** and **19.4%** of FY2022 revenue and substantial trade receivables Customer Concentration (%) | Customer Concentration (%) | 2022 | 2021 | | :--- | :--- | :--- | | **Revenue** | | | | - Customer A | 40.3% | 37.7% | | - Customer B | 19.4% | 9.7% | | **Trade Account Receivables** | | | | - Customer A | 36.0% | 34.7% | | - Customer B | 24.2% | 11.8% | [Note 17. Business Segments](index=71&type=section&id=Note%2017.%20Business%20Segments) Detailed segment performance for FY2022 shows Testing Services as the largest revenue contributor with a significant profit turnaround, strong growth in Distribution, and stable Manufacturing revenue with declining operating income Segment Performance (FY2022, in thousands) | Segment Performance (FY2022, in thousands) | Net Revenue | Operating Income (Loss) | Total Assets | Capital Expenditures | | :--- | :--- | :--- | :--- | :--- | | Manufacturing | $13,526 | $275 | $14,652 | $116 | | Testing Services | $19,477 | $1,313 | $25,148 | $1,351 | | Distribution | $11,037 | $1,525 | $1,740 | $- | | Real Estate | $25 | $(119) | $1,608 | $1 | | Corporate & Unallocated | $- | $(641) | $273 | $- | [Note 24. Leases](index=84&type=section&id=Note%2024.%20Leases) As of June 30, 2022, the company reported **$3,152 thousand** in operating lease right-of-use assets and **$3,389 thousand** in total lease liabilities, with weighted average remaining terms of 2.83 and 2.02 years for operating and finance leases, respectively Lease Balances (as of June 30, 2022, in thousands) | Lease Balances (as of June 30, 2022, in thousands) | Assets | Liabilities | | :--- | :--- | :--- | | Operating Leases | $3,152 | $3,152 | | Finance Leases | $548 | $237 | | **Total** | **$3,700** | **$3,389** |

Revenue Performance - Trio-Tech International generated approximately 99.9% of its revenue from its three core business segments: manufacturing of test equipment, testing services, and distribution of test equipment during the three months ended March 31, 2022 [178]. - Total revenue increased by $3,026, or 37.3%, to $11,138 for the third quarter of fiscal year 2022 compared to $8,112 for the same period in fiscal year 2021 [218]. - Revenue in the manufacturing segment decreased by $33, or 1.1%, to $3,097 for the third quarter of fiscal year 2022 compared to $3,130 for the same period in fiscal year 2021 [218]. - Testing segment revenue increased by $913, or 26.1%, to $4,417 for the third quarter of fiscal year 2022 compared to $3,504 for the same period in fiscal year 2021 [218]. - Distribution segment revenue increased by $2,153, or 146.8%, to $3,620 for the third quarter of fiscal year 2022 compared to $1,467 for the same period in fiscal year 2021 [218]. - Revenue attributable to the distribution segment increased by $4,248 to $8,038 for the nine months ended March 31, 2022, compared to $3,790 for the same period in the prior fiscal year [229]. - Revenue from the testing segment accounted for 39.6% of total revenue for the three months ended March 31, 2022, representing a decrease of 3.6% compared to 43.2% for the same period in the last fiscal year [225]. - Revenue for the three months ended March 31, 2022, was $3,097 million, a slight decrease from $3,130 million for the same period in 2021 [260]. - Testing segment revenue increased to $13,983 million for the nine months ended March 31, 2022, up from $10,018 million in the same period last year, with a gross margin improvement to 34.6% from 23.6% [289]. - Distribution segment revenue rose to $8,038 million, compared to $3,790 million in the prior year, with income from operations increasing to $1,108 million from $407 million [291]. Financial Position - As of March 31, 2022, the company had cash and cash equivalents and short-term deposits totaling $12,431,000 and an unused line of credit of $5,158,000 [187]. - Total assets increased by $3,497 to $41,803 as of March 31, 2022, compared to $38,306 as of June 30, 2021 [218]. - Total liabilities increased by $1,173 to $13,426 as of March 31, 2022, compared to $12,253 as of June 30, 2021 [218]. - Cash and cash equivalents rose to $7,478 million, reflecting an increase of $1,642 million from $5,836 million as of June 30, 2021 [295]. - Trade accounts receivable increased by $2,292 million to $10,585 million, primarily due to an increase in overall Group's revenue [296]. - Accrued expenses increased by $1,680 million to $5,043 million as of March 31, 2022, mainly due to an increase in accrued purchases and customer deposits [302]. - Operating lease right-of-use assets increased by $725 million to $2,601 million as of March 31, 2022, due to a new lease agreement in the China operation [304]. Profitability and Expenses - Overall gross profit margin decreased by 3.2% to 22.2% for the third quarter of fiscal year 2022 from 25.4% for the same period in fiscal year 2021 [218]. - General and administrative expenses increased by $455, or 23.7%, to $2,378 for the third quarter of fiscal year 2022 from $1,923 for the same period in fiscal year 2021 [218]. - Overall gross margin decreased by 3.2% to 22.2% for the three months ended March 31, 2022, compared to 25.4% for the same period last year [240]. - Gross profit margin in the manufacturing segment decreased by 13.1% to 18.3% for the three months ended March 31, 2022, from 31.4% in the same period last year, resulting in a gross profit decrease of $415 to $567 million [241]. - Gross profit margin in the testing segment increased by 4.0% to 28.3% for the three months ended March 31, 2022, with gross profit rising by $395 to $1,248 million [242]. - General and administrative expenses increased by $1,060 million, or 20.3%, to $6,305 million for the nine months ended March 31, 2022, primarily due to higher payroll-related expenses [273]. - Selling expenses rose by $93 million, or 26.1%, to $449 million for the nine months ended March 31, 2022, driven by increased commission expenses in the manufacturing and distribution segments [274]. Operational Challenges - The company suffered a revenue loss of approximately $260,000 due to a 12-day shutdown of its facility in Tianjin, China, in compliance with local COVID-19 lockdown measures [184]. - The company has implemented various safety measures for employees during the COVID-19 pandemic, including social distancing and wellness screenings [185]. - The company evaluates its long-lived assets for impairment whenever events indicate that the carrying value may not be recoverable [206]. - The semiconductor industry is characterized by rapid technological change, which impacts inventory valuation and necessitates regular reviews of inventory quantities [195]. - The company’s operations are classified as part of the global supply chain and essential businesses in many jurisdictions [185]. Net Income and Loss - Loss from operations increased to $130 million for the three months ended March 31, 2022, compared to a loss of $65 million for the same period last year [249]. - Interest expense increased by $6, or 24.0%, to $31 million for the three months ended March 31, 2022, compared to $25 million for the same period in 2021 [250]. - Other income decreased by $146 million from $273 million to $127 million for the three months ended March 31, 2022, primarily due to a decrease in government grants [251]. - Net loss attributable to common shareholders was $167 million for the three months ended March 31, 2022, a change of $345 million from a net income of $178 million for the same period last year [256]. - Basic earnings per share from continuing operations were negative $0.04 for the three months ended March 31, 2022, compared to $0.05 for the same period last year [257]. - The share of net loss from subsidiaries by noncontrolling interest decreased to $37 million for the three months ended March 31, 2022, from $112 million for the same period last year [255]. - Income from operations improved to $1,496 million for the nine months ended March 31, 2022, compared to a loss of $429 million in the same period of the last fiscal year [275]. - Net income attributable to common shareholders was $1,605 million for the nine months ended March 31, 2022, an increase of $1,200 million compared to $405 million for the same period in the last fiscal year [283]. - Basic earnings per share from continuing operations increased to $0.40 for the nine months ended March 31, 2022, compared to $0.11 for the same period in the last fiscal year [284]. Future Outlook - The company believes its existing cash balances and credit sources are sufficient to fund operations for the foreseeable future [187]. - The company filed an S3 registration statement to potentially raise $10,000 million for expansion of testing capacity and working capital [308].