{"url_path":"/sec/trt/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 FINANCIAL STATEMENTS**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/732026/0001437749-26-016914-index.html","accession_number":"0001437749-26-016914","cik":"0000732026","ticker":"TRT","issuer_name":"TRIO-TECH INTERNATIONAL","edgar_url":"https://www.sec.gov/Archives/edgar/data/732026/0001437749-26-016914-index.html","primary_entity_key":"0000732026","primary_entity_name":"TRIO-TECH INTERNATIONAL"},"word_count":11881,"has_tables":true,"body_markdown":"**ITEM 1. FINANCIAL STATEMENTS**\n\n \n\n**TRIO-TECH INTERNATIONAL AND SUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES)**\n\n \n\n  \n*March 31,*\n  \n*June 30,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n     \n\n**ASSETS**\n   ** **   ** **\n\nCURRENT ASSETS:\n        \n\nCash and cash equivalents\n $12,970  $10,890 \n\nShort-term deposits\n  2,558   5,817 \n\nTrade accounts receivable, less allowance for expected credit losses of $151 and $35, respectively\n  13,386   10,804 \n\nOther receivables\n  511   608 \n\nInventories, less provision for obsolete inventories of $824 and $851, respectively\n  2,472   2,262 \n\nPrepaid expense and other current assets\n  555   384 \n\nRestricted term deposits\n  821   816 \n\n**Total current assets**\n  33,273** **  31,581 \n\nNON-CURRENT ASSETS:\n        \n\nDeferred tax assets\n  90   91 \n\nInvestment properties, net\n  305   345 \n\nProperty, plant and equipment, net\n  5,994   6,021 \n\nOperating lease right-of-use assets\n  2,870   864 \n\nOther assets\n  244   231 \n\nRestricted term deposits\n  1,939   1,935 \n\n**Total non-current assets**\n  11,442** **  9,487 \n\n**TOTAL ASSETS**\n $44,715  $41,068 \n\n         \n\n**LIABILITIES**\n   ** **   ** **\n\nCURRENT LIABILITIES:\n        \n\nLines of credit\n $-  $141 \n\nAccounts payable\n  5,698   1,896 \n\nAccrued expense\n  2,884   3,036 \n\nContract liabilities\n  92   250 \n\nIncome taxes payable\n  154   122 \n\nCurrent portion of bank loans payable\n  260   256 \n\nCurrent portion of finance leases\n  1   43 \n\nCurrent portion of operating leases\n  766   540 \n\n**Total current liabilities**\n  9,855   6,284 \n\nNON-CURRENT LIABILITIES:\n        \n\nBank loans payable, net of current portion\n  255   428 \n\nOperating leases, net of current portion\n  2,104   324 \n\nDeferred tax liabilities\n  6   10 \n\nOther non-current liabilities\n  31   31 \n\n**Total non-current liabilities**\n  2,396** **  793 \n\n**TOTAL LIABILITIES**\n $12,251  $7,077 \n\n         \n\n**EQUITY**\n   ** **   ** **\n\nTRIO-TECH INTERNATIONAL SHAREHOLDERS’ EQUITY:\n        \n\nCommon stock, no par value, with 15,000,000 shares authorized; 8,962,909 and 8,625,610 shares issued as of March 31, 2026 and June 30, 2025, respectively; and 8,960,166 and 8,625,460 shares outstanding as of those dates, respectively.\n $14,378  $13,490 \n\nPaid-in capital\n  6,372   5,979 \n\nTreasury stock, at cost\n  (12)  - \n\nAccumulated retained earnings\n  11,030   12,037 \n\nAccumulated other comprehensive income-translation adjustments\n  2,557   2,522 \n\n**Total Trio-Tech International shareholders’ equity**\n  34,325** **  34,028 \n\nNon-controlling interest\n  (1,861)  (37)\n\n**TOTAL EQUITY**\n $32,464** ** $33,991 \n\n**TOTAL LIABILITIES AND EQUITY**\n $44,715** ** $41,068 \n\n \n\nSee notes to condensed consolidated financial statements.\n\n \n\n- 1 -\n\n[Table of Contents](#toc)\n\n \n\n**TRIO-TECH INTERNATIONAL AND SUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS)**\n\n**UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)**\n\n \n\n \n \n\n*Three Months Ended*\n\n \n \n\n*Nine Months Ended*\n\n \n\n \n \n\n*March 31,*\n\n \n \n\n*March 31,*\n\n \n \n\n*March 31,*\n\n \n \n\n*March 31,*\n\n \n\n \n \n\n*2026*\n\n \n \n\n*2025*\n\n \n \n\n*2026*\n\n \n \n\n*2025*\n\n \n\n**Revenue**\n\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n\nSemiconductor Back-end Solutions\n\n \n$\n13,079\n \n \n$\n5,425\n \n \n$\n36,888\n \n \n$\n18,113\n \n\nIndustrial Electronics\n\n \n \n3,426\n \n \n \n1,950\n \n \n \n10,762\n \n \n \n7,665\n \n\nOthers\n\n \n \n6\n \n \n \n9\n \n \n \n24\n \n \n \n24\n \n\n \n \n \n16,511\n \n \n \n7,384\n \n \n \n47,674\n \n \n \n25,802\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Cost of Sales**\n\n \n \n13,957\n \n \n \n5,408\n \n \n \n40,036\n \n \n \n19,286\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nGross Margin\n\n \n \n2,554\n \n \n \n1,976\n \n \n \n7,638\n \n \n \n6,516\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Operating Expense:**\n\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n\nGeneral and administrative\n\n \n \n2,273\n \n \n \n2,067\n \n \n \n6,644\n \n \n \n5,996\n \n\nSelling\n\n \n \n263\n \n \n \n216\n \n \n \n633\n \n \n \n542\n \n\nResearch and development\n\n \n \n99\n \n \n \n90\n \n \n \n299\n \n \n \n292\n \n\nGain on disposal of property, plant and equipment\n\n \n \n-\n \n \n \n(54\n)\n \n \n-\n \n \n \n(101\n)\n\n**Total operating expense**\n\n \n \n2,635\n \n \n \n2,319\n \n \n \n7,576\n \n \n \n6,729\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n(Loss) / Income from Operations\n\n \n \n(81\n)\n \n \n(343\n)\n \n \n62\n \n \n \n(213\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Other Income / (Expense)**\n\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n\nInterest expense\n\n \n \n(11\n)\n \n \n(10\n)\n \n \n(41\n)\n \n \n(36\n)\n\nOther income / (expense), net\n\n \n \n188\n \n \n \n(144\n)\n \n \n610\n \n \n \n177\n \n\nGovernment grant\n\n \n \n11\n \n \n \n22\n \n \n \n15\n \n \n \n93\n \n\n**Total other income / (expense)**\n\n \n \n188\n \n \n \n(132\n)\n \n \n584\n \n \n \n234\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nIncome / (Loss) from Continuing Operations before Income Taxes\n\n \n \n107\n \n \n \n(475\n)\n \n \n646\n \n \n \n21\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Income Tax Expense**\n\n \n \n(146\n)\n \n \n(6\n)\n \n \n(287\n)\n \n \n(196\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n(Loss) / Income from Continuing Operations before Non-controlling Interest, Net of Taxes\n\n \n \n(39\n)\n \n \n(481\n)\n \n \n359\n \n \n \n(175\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Discontinued Operations**\n\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n\nIncome from discontinued operations, net of tax\n\n \n \n2\n \n \n \n5\n \n \n \n60\n \n \n \n5\n \n\nNet (Loss) / Income\n\n \n \n(37\n)\n \n \n(476\n)\n \n \n419\n \n \n \n(170\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nLess: Net income attributable to non-controlling interest\n\n \n \n1\n \n \n \n19\n \n \n \n254\n \n \n \n54\n \n\nNet (Loss) / Income Attributable to Common Shareholders\n\n \n$\n(38\n)\n \n$\n(495\n)\n \n$\n165\n \n \n$\n(224\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Amounts Attributable to Common Shareholders:**\n\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n\n(Loss) / Income from continuing operations, net of tax\n\n \n \n(39\n)\n \n \n(498\n)\n \n \n132\n \n \n \n(227\n)\n\nIncome from discontinued operations, net of tax\n\n \n \n1\n \n \n \n3\n \n \n \n33\n \n \n \n3\n \n\n**Net (Loss) / Income Attributable to Common Shareholders**\n\n \n$\n(38\n)\n \n$\n(495\n)\n \n$\n165\n \n \n$\n(224\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Basic (Loss) / Earnings per Share:**\n\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n\nBasic (loss) / earnings per share from continuing operations\n\n \n$\n(0.00\n)\n \n$\n(0.06\n)\n \n$\n0.02\n \n \n$\n(0.03\n)\n\nBasic earnings from discontinued operations\n\n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n\n**Basic (Loss) / Earnings per Share from Net Income**\n\n \n$\n(0.00\n)\n \n$\n(0.06\n)\n \n$\n0.02\n \n \n$\n(0.03\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Diluted (Loss) / Earnings per Share:**\n\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n\nDiluted (loss) / earnings per share from continuing operations\n\n \n$\n(0.00\n)\n \n$\n(0.06\n)\n \n$\n0.02\n \n \n$\n(0.03\n)\n\nDiluted earnings per share from discontinued operations\n\n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n\n**Diluted (Loss) / Earnings per Share from Net Income**\n\n \n$\n(0.00\n)\n \n$\n(0.06\n)\n \n$\n0.02\n \n \n$\n(0.03\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Weighted Average Number of Common Shares Outstanding (1)**\n\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n\nBasic\n\n \n \n8,840\n \n \n \n8,545\n \n \n \n8,721\n \n \n \n8,516\n \n\nDilutive effect of stock options\n\n \n \n908\n \n \n \n206\n \n \n \n554\n \n \n \n226\n \n\n**Number of Shares Used to Compute Earnings Per Share Diluted**\n\n \n \n9,748\n \n \n \n8,751\n \n \n \n9,275\n \n \n \n8,742\n \n\n \n\n*(1)*\n\n*On January 5, 2026, the Company effected a two-for-one forward stock split of the Company's issued Common Stock. All share and per-share amounts included in the accompanying condensed consolidated financial statements have been retrospectively adjusted to reflect the stock split.*\n\nSee notes to condensed consolidated financial statements.\n\n \n\n- 2 -\n\n[Table of Contents](#toc)\n\n \n\n**TRIO-TECH INTERNATIONAL AND SUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**\n\n**UNAUDITED (IN THOUSANDS)**\n\n \n\n \n \n\n*Three Months Ended*\n\n \n \n\n*Nine Months Ended*\n\n \n\n \n \n\n*March 31,*\n\n \n \n\n*March 31,*\n\n \n \n\n*March 31,*\n\n \n \n\n*March 31,*\n\n \n\n \n \n\n*2026*\n\n \n \n\n*2025*\n\n \n \n\n*2026*\n\n \n \n\n*2025*\n\n \n\n**Comprehensive (Loss) / Income Attributable to Common Shareholders:**\n\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n \n \n \n** **\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nNet (loss) / income\n\n \n$\n(37\n)\n \n$\n(476\n)\n \n$\n419\n \n \n$\n(170\n)\n\nForeign currency translation, net of tax\n\n \n \n(21\n)\n \n \n522\n \n \n \n374\n \n \n \n742\n \n\nComprehensive (Loss) / Income\n\n \n \n(58\n)\n \n \n46\n \n \n \n793\n \n \n \n572\n \n\nLess: comprehensive income attributable to non-controlling interest\n\n \n \n2\n \n \n \n26\n \n \n \n294\n \n \n \n163\n \n\nComprehensive (Loss) / Income Attributable to Common Shareholders\n\n \n$\n(60\n)\n \n$\n20\n \n \n$\n499\n \n \n$\n409\n \n\n \n\nSee notes to condensed consolidated financial statements.\n\n \n\n- 3 -\n\n[Table of Contents](#toc)\n\n \n\n**TRIO-TECH INTERNATIONAL AND SUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY**\n\n**UNAUDITED (IN THOUSANDS)**\n\n \n\n**Nine months ended March 31, 2026**\n\n \n\n \n \n \n* *\n \n \n \n* *\n \n \n \n* *\n \n \n \n* *\n \n \n \n* *\n \n \n \n**Accumulated**\n \n \n \n* *\n \n \n \n* *\n \n\n \n \n \n* *\n \n \n \n* *\n \n \n \n* *\n \n \n \n* *\n \n \n \n**Accumulated**\n \n \n \n**Other**\n \n \n \n**Non-**\n \n \n \n* *\n \n\n \n \n\n**Common Stock**\n\n \n \n\n**Paid-in**\n\n \n \n\n**Treasury**\n\n \n \n\n**Retained**\n\n \n \n\n**Comprehensive**\n\n \n \n\n**controlling**\n\n \n \n \n* *\n** **\n\n \n \n\n**Shares**\n\n \n \n\n**Amount**\n\n \n \n\n**Capital**\n\n \n \n\n**Stock, at cost**\n\n \n \n\n**Earnings**\n\n \n \n\n**Income**\n\n \n \n\n**Interest**\n\n \n \n\n**Total**\n\n \n\n \n \n \n \n \n \n\n$\n\n \n \n\n$\n\n \n \n\n$\n\n \n \n\n$\n\n \n \n\n$\n\n \n \n\n$\n\n \n \n\n$\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance at June 30, 2025\n\n \n \n4,313\n \n \n \n13,490\n \n \n \n5,979\n \n \n \n-\n \n \n \n12,037\n \n \n \n2,522\n \n \n \n(37\n)\n \n \n33,991\n \n\nStock option expense\n\n \n \n*-*\n \n \n \n-\n \n \n \n393\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n393\n \n\nExercise of stock option\n\n \n \n337\n \n \n \n888\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n888\n \n\nNet income\n\n \n \n*-*\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n165\n \n \n \n-\n \n \n \n254\n \n \n \n419\n \n\nStock split adjustment (1)\n\n \n \n4,313\n \n \n \n*-*\n \n \n \n*-*\n \n \n \n*-*\n \n \n \n*-*\n \n \n \n*-*\n \n \n \n*-*\n \n \n \n*-*\n \n\nTreasury stock, at cost\n\n \n \n*-*\n \n \n \n-\n \n \n \n-\n \n \n \n(12\n)\n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n(12\n)\n\nAcquisition of subsidiary without a change in control\n\n \n \n*-*\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n(1,172\n)\n \n \n(299\n)\n \n \n(2,032\n)\n \n \n(3,503\n)\n\nDividend declared by subsidiary\n\n \n \n*-*\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n(86\n)\n \n \n(86\n)\n\nTranslation adjustment\n\n \n \n*-*\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n334\n \n \n \n40\n \n \n \n374\n \n\nBalance at March 31, 2026\n\n \n \n8,963\n \n \n \n14,378\n \n \n \n6,372\n \n \n \n(12\n)\n \n \n11,030\n \n \n \n2,557\n \n \n \n(1,861\n)\n \n \n32,464\n \n\n \n\n \n\n*(1)*\n\n*On January 5, 2026, the Company effected a two-for-one forward stock split of the Company's issued Common Stock. All share and per-share amounts included in the accompanying condensed consolidated financial statements have been retrospectively adjusted to reflect the stock split.*\n\n \n\n \n\n \n\n**Nine months ended March 31, 2025**\n\n \n\n \n \n \n* *\n** **\n \n \n* *\n** **\n \n \n* *\n** **\n \n \n* *\n** **\n \n\n**Accumulated**\n\n \n \n \n* *\n** **\n \n \n* *\n** **\n\n \n \n \n* *\n** **\n \n \n* *\n** **\n \n \n* *\n** **\n \n\n**Accumulated**\n\n \n \n\n**Other**\n\n \n \n\n**Non-**\n\n \n \n \n* *\n** **\n\n \n \n\n**Common Stock**\n\n \n \n\n**Paid-in**\n\n \n \n\n**Retained**\n\n \n \n\n**Comprehensive**\n\n \n \n\n**controlling**\n\n \n \n \n* *\n** **\n\n \n \n\n**Shares**\n\n \n \n\n**Amount**\n\n \n \n\n**Capital**\n\n \n \n\n**Earnings**\n\n \n \n\n**Income**\n\n \n \n\n**Interest**\n\n \n \n\n**Total**\n\n \n\n \n \n \n \n \n \n\n$\n\n \n \n\n$\n\n \n \n\n$\n\n \n \n\n$\n\n \n \n\n$\n\n \n \n\n$\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance at June 30, 2024\n\n \n \n4,250\n \n \n \n13,325\n \n \n \n5,531\n \n \n \n11,813\n \n \n \n660\n \n \n \n249\n \n \n \n31,578\n \n\nStock option expenses\n\n \n \n*-*\n \n \n \n-\n \n \n \n413\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n413\n \n\nExercise of stock option\n\n \n \n*126*\n \n \n \n165\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n165\n \n\nNet (loss) / income\n\n \n \n*-*\n \n \n \n-\n \n \n \n-\n \n \n \n(224\n)\n \n \n-\n \n \n \n54\n \n \n \n(170\n)\n\nStock split adjustment (1)\n\n \n \n4,250\n \n \n \n*-*\n \n \n \n*-*\n \n \n \n*-*\n \n \n \n*-*\n \n \n \n*-*\n \n \n \n*-*\n \n\nTranslation adjustment\n\n \n \n*-*\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n633\n \n \n \n109\n \n \n \n742\n \n\nBalance at March 31, 2025\n\n \n \n8,626\n \n \n \n13,490\n \n \n \n5,944\n \n \n \n11,589\n \n \n \n1,293\n \n \n \n412\n \n \n \n32,728\n \n\n \n\n*(1)*\n\n*On January 5, 2026, the Company effected a two-for-one forward stock split of the Company's issued Common Stock. All share and per-share amounts included in the accompanying condensed consolidated financial statements have been retrospectively adjusted to reflect the stock split.*\n\n \n\n \n\nSee notes to condensed consolidated financial statements.\n\n \n\n- 4 -\n\n[Table of Contents](#toc)\n\n \n\n**TRIO-TECH INTERNATIONAL AND SUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** **(IN THOUSANDS)**\n\n \n\n \n \n\n*Nine Months Ended*\n\n \n\n \n \n\n*March 31,*\n\n \n \n\n*March 31,*\n\n \n\n \n \n\n*2026*\n\n \n \n\n*2025*\n\n \n\n \n \n\n(Unaudited)\n\n \n \n\n(Unaudited)\n\n \n\n**Cash Flow from Operating Activities**\n\n \n \n \n** **\n \n \n \n** **\n\nNet income / (loss)\n\n \n$\n419\n \n \n$\n(170\n)\n\nAdjustments to reconcile net income to net cash flow provided by operating activities\n\n \n \n \n \n \n \n \n \n\nUnrealized foreign exchange (gain) / loss\n\n \n \n(21\n)\n \n \n135\n \n\nDepreciation and amortization\n\n \n \n1,611\n \n \n \n2,093\n \n\nGain on disposal of property, plant and equipment\n\n \n \n-\n \n \n \n(101\n)\n\n(Reversal) / Provision for obsolete inventories, net\n\n \n \n(23\n)\n \n \n122\n \n\nStock compensation\n\n \n \n393\n \n \n \n413\n \n\nBad debt recovery\n\n \n \n(7\n)\n \n \n(61\n)\n\nAllowance for expected credit losses\n\n \n \n158\n \n \n \n62\n \n\nAccrued interest expense, net accrued interest income\n\n \n \n18\n \n \n \n(20\n)\n\nPayment of interest portion of finance lease\n\n \n \n(1\n)\n \n \n(3\n)\n\nWarranty expense, net\n\n \n \n12\n \n \n \n2\n \n\nReversal of income tax provision\n\n \n \n(19\n)\n \n \n(9\n)\n\nDeferred tax expense\n\n \n \n8\n \n \n \n20\n \n\nChanges in operating assets and liabilities, net of acquisition effects\n\n \n \n \n \n \n \n \n \n\nTrade accounts receivable\n\n \n \n(2,733\n)\n \n \n1,697\n \n\nOther receivables\n\n \n \n97\n \n \n \n(344\n)\n\nOther assets\n\n \n \n(11\n)\n \n \n103\n \n\nInventories\n\n \n \n(199\n)\n \n \n853\n \n\nPrepaid expense and other current assets\n\n \n \n(156\n)\n \n \n67\n \n\nAccounts payable, accrued expense and contract liabilities\n\n \n \n3,377\n \n \n \n(2,437\n)\n\nIncome taxes payable\n\n \n \n44\n \n \n \n(313\n)\n\nOther non-current liabilities\n\n \n \n-\n \n \n \n3\n \n\nRepayment of operating lease\n\n \n \n(649\n)\n \n \n(1,077\n)\n\n**Net Cash Provided by Operating Activities**\n\n \n$\n2,318\n \n \n$\n1,035\n \n\n \n \n \n \n \n \n \n \n \n\n**Cash Flow from Investing Activities**\n\n \n \n \n** **\n \n \n \n** **\n\nWithdrawal from unrestricted term deposits, net\n\n \n \n3,241\n \n \n \n4,901\n \n\nInvestment in unrestricted term deposits, net\n\n \n \n(400\n)\n \n \n(4,838\n)\n\nAdditions to property, plant and equipment\n\n \n \n(876\n)\n \n \n(408\n)\n\nProceeds from disposal of property, plant and equipment\n\n \n \n-\n \n \n \n246\n \n\n**Net Cash Provided by / (Used in) Investing Activities**\n\n \n$\n1,965\n** **\n \n$\n(99\n)\n\n \n \n \n \n \n \n \n \n \n\n**Cash Flow from Financing Activities**\n\n \n \n \n** **\n \n \n \n** **\n\nPayment on lines of credit\n\n \n \n(1,003\n)\n \n \n(98\n)\n\nPayment of bank loans\n\n \n \n(219\n)\n \n \n(208\n)\n\nPayment of finance leases\n\n \n \n(42\n)\n \n \n(48\n)\n\nAcquisition of non-controlling interest\n\n \n \n(3,503\n)\n \n \n-\n \n\nRepurchase of common stock\n\n \n \n(12\n)\n \n \n-\n \n\nProceeds from exercising stock options\n\n \n \n888\n \n \n \n165\n \n\nProceeds from lines of credit\n\n \n \n856\n \n \n \n93\n \n\n**Net Cash Used in Financing Activities**\n\n \n$\n(3,035\n)\n \n$\n(96\n)\n\n \n \n \n \n \n \n \n \n \n\nEffect of Changes in Exchange Rate\n\n \n$\n841\n \n \n$\n222\n \n\n \n \n \n \n \n \n \n \n \n\nNet Increase in Cash, Cash Equivalents, and Restricted Cash\n\n \n \n2,089\n \n \n \n1,062\n \n\nCash, Cash Equivalents, and Restricted Cash at Beginning of Period\n\n \n \n13,641\n \n \n \n12,556\n \n\n**Cash, Cash Equivalents, and Restricted Cash at End of Period**\n\n \n$\n15,730\n \n \n$\n13,618\n \n\n \n \n \n \n \n \n \n \n \n\n**Supplementary Information of Cash Flows**\n\n \n \n \n** **\n \n \n \n** **\n\nCash paid during the period for:\n\n \n \n \n \n \n \n \n \n\nInterest\n\n \n$\n39\n \n \n$\n35\n \n\nIncome taxes\n\n \n$\n75\n \n \n$\n492\n \n\n \n \n \n \n \n \n \n \n \n\n**Reconciliation of Cash, Cash Equivalents, and Restricted Cash**\n\n \n \n \n** **\n \n \n \n** **\n\n**Cash**\n\n \n \n12,970\n \n \n \n11,020\n \n\n**Restricted Term-Deposits in Current Assets**\n\n \n \n821\n \n \n \n776\n \n\n**Restricted Term-Deposits in Non-Current Assets**\n\n \n \n1,939\n \n \n \n1,822\n \n\n**Total Cash, Cash Equivalents, and Restricted Cash Shown in Statements of Cash Flows**\n\n \n$\n15,730\n \n \n$\n13,618\n \n\n \n \n \n \n \n \n \n \n \n\n \n\nRestricted 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 $821 and $776 as at March 31, 2026 and 2025, respectively are classified as current assets as they relate to short-term trade financing. On the other hand, restricted deposits of $1,939 and $1,822 as at March 31, 2026 and 2025, respectively are classified as non-current assets as they relate to long-term obligations and will become unrestricted only upon discharge of the obligations.\n\n \n\nSee notes to condensed consolidated financial statements.\n\n \n\n- 5 -\n\n[Table of Contents](#toc)\n\n \n\n**TRIO-TECH INTERNATIONAL AND SUBSIDIARIES**\n\n \n\n**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**\n\n**(IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)**\n\n \n\n**1.**\n\n**ORGANIZATION AND BASIS OF PRESENTATION**\n\n \n\nTrio-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. In addition, the company provides a comprehensive range of parts, components, and engineered solutions serving the consumer, industrial, and aerospace markets.\n\n \n\nTTI has subsidiaries in the U.S., Singapore, Malaysia, Thailand, Indonesia, Cayman Islands and China as follows:\n\n \n\n  \n*Ownership*\n \n*Location*\n\nExpress Test Corporation (Dormant)\n  100%\n*Van Nuys, California*\n\nTrio-Tech Reliability Services (Dormant)\n  100%\n*Van Nuys, California*\n\nKTS Incorporated, dba Universal Systems (Dormant)\n  100%\n*Van Nuys, California*\n\nEuropean Electronic Test Centre (Dormant)^^\n  100%\n*Cayman Islands*\n\nTrio-Tech International Pte. Ltd.\n  100%\n*Singapore*\n\nUniversal (Far East) Pte. Ltd.*\n  100%\n*Singapore*\n\nTrio-Tech International (Thailand) Co. Ltd. *\n  100%\n*Bangkok, Thailand*\n\nTrio-Tech (Bangkok) Co. Ltd. *\n  100%\n*Bangkok, Thailand*\n\nTrio-Tech (Malaysia) Sdn. Bhd. # *\n  100%\n*Penang and Selangor, Malaysia*\n\nPrestal Enterprise Sdn. Bhd. (76% owned by Trio-Tech International Pte. Ltd.)\n  76%\n*Selangor, Malaysia*\n\nTrio-Tech (SIP) Co., Ltd. *\n  100%\n*Suzhou, China*\n\nTrio-Tech (Chongqing) Co. Ltd. *\n  100%\n*Chongqing, China*\n\nSHI International Pte. Ltd. (Dormant) (55% owned by Trio-Tech International Pte. Ltd)^\n  55%\n*Singapore*\n\nTrio-Tech (Tianjin) Co., Ltd. *\n  100%\n*Tianjin, China*\n\nTrio-Tech (Jiangsu) Co., Ltd. (100% owned by Trio-Tech (SIP) Co., Ltd.)\n  100%\n*Suzhou, China*\n\n \n\n* 100% owned by Trio-Tech International Pte. Ltd.\n\n \n\n# On *September 17, 2025, *the Company and Lodestar Enterprise Sdn. Bhd. (“Lodestar”) entered into an Equity Purchase Agreement (“Agreement”) pursuant to which the Company, through its wholly-owned subsidiary, Trio-Tech International Pte. Ltd (Singapore) (“Trio-Tech Singapore”) agreed to acquire from Lodestar the remaining 50% of the total share capital of Trio-Tech (Malaysia) Sdn. Bhd. (\"Trio-tech Malaysia\") owned by Lodestar and *not* already owned by Trio-Tech Singapore (the “Acquisition”).  The Company received the required approval from the Ministry of Investment, Trade and Industry in Malaysia, and the Acquisition was consummated on *December 3, 2025.*The purchase price for the Acquisition was RM14,200, payable in cash, or approximately $3,503. Upon consummation of the Acquisition, the Company, through Trio-Tech Singapore, now owns *100%* of the share capital of Trio-Tech Malaysia.\n\n^During the *second* quarter of fiscal *2026,* it was identified that PT SHI Indonesia, a dormant entity that was 95% owned by SHI International Pte Ltd has been dissolved and this dissolution did *not* have a material impact on the Company's consolidated financial statements. \n\n^^During the *third* quarter of fiscal *2026,* it was identified that dormant subsidiary, European Electronic Test Centre, had been dissolved, which had *no* material impact on the Company's consolidated financial statements.\n\n \n\n \n\n-\n*6* -\n\n[Table of Contents](#toc)\n\n \n\nThe 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, 2025* (“Fiscal *2025*”). The Company’s operating results are presented based on the translation of foreign currencies using the respective quarter’s average exchange rate.\n\n \n\nOn *July 1, 2025,*the Company’s subsidiary Universal (Far East) Pte. Ltd. changed its functional currency from the Singapore Dollar to the U.S. Dollar (\"USD\"). Management concluded that significant economic facts and circumstances changed such that the new functional currency better reflects the subsidiary’s operating environment. The change has been accounted for prospectively from *July 1, 2025.*Prior periods have *not* been restated. Non-monetary assets and liabilities at the date of change were translated at the rates as of that date, and translation gains/losses arising after that date are recognized in other comprehensive income.\n\n \n\nThe results of operations for the *nine* months ended *March 31, 2026* are *not* necessarily indicative of the results that *may*be expected for any other interim period or for the full year ending *June 30, 2026*.\n\n \n\n*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.\n\n \n\n*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 *2025.***\n\n \n\n \n\n**2.**\n\n**NEW ACCOUNTING PRONOUNCEMENTS**\n\n \n\nIn *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.\n\n \n\nIn *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, 2028.*\n\n \n\nIn *July 2025,*the FASB issued ASU *2025*-*05,* Financial Instruments – Credit Losses (Topic *326*), *Measurement of Credit Losses for Accounts Receivable and Contract Assets*. The new guidance allows companies to apply a practical expedient when estimating credit losses on current accounts receivable and contract assets. The standard update is effective for our annual and interim reports beginning in the *first* quarter of our fiscal year ending *June 30, 2027.*Early adoption is permitted for periods in which financial statements have *not* yet been issued or made ready for issuance. The amendments in this ASU should be applied on a prospective basis. We are currently evaluating the impact of adopting this guidance on our condensed consolidated financial statements.\n\n \n\nIn *December 2025,*the Financial Accounting Standards Board (“FASB”) issued ASU *2025‑11,* Interim Reporting (Topic *270*): *Narrow-Scope Improvements*, which is intended to clarify the applicability of interim reporting guidance, the types of interim reporting and the form and content of interim GAAP financial statements. ASU *2025*-*11* will be effective for our fiscal year ending *June 30, 2028 *and we are currently evaluating the impact it *may*have on our condensed consolidated financial statements.\n\n \n\nIn *December 2025,*the FASB also issued accounting standards update (“ASU”) *No.* *2025*-*10,* “Government Grants (Topic *832*): *Accounting for Government Grants Received by Business Entities*” (“ASU *2025*-*10”*), which establishes guidance on the recognition, measurement, and presentation of government grants. The standard *may*be adopted using a full retrospective, modified retrospective, or modified prospective transition method. ASU *2025*-*10* is effective for the fiscal year ending *June 30, 2029,*and interim periods within that year, with early adoption permitted. The Company is currently assessing the impact of this guidance on its condensed consolidated financial statements.\n\n \n\nNew pronouncements issued but *not* yet effective until after *March 31, 2026*, are *not* expected to have a significant effect on the Company’s condensed consolidated financial statements.\n\n \n\n-\n*7* -\n\n[Table of Contents](#toc)\n\n \n\n \n\n**3.**\n\n**TERM DEPOSITS**\n\n \n\n  \n*March 31,*\n  \n*June 30,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n     \n\n         \n\nShort-term deposits\n $2,987  $5,571 \n\nCurrency translation effect on short-term deposits\n  (429)  246 \n\n**Total short-term deposits**\n $2,558** ** $5,817 \n\nRestricted term deposits - Current\n  830   768 \n\nCurrency translation effect on restricted term deposits\n  (9)  48 \n\n**Total restricted term deposits - Current**\n $821** ** $816 \n\nRestricted term deposits – Non-current\n  1,948   1,797 \n\nCurrency translation effect on restricted term deposits\n  (9)  138 \n\n**Total restricted term deposits - Non-current**\n $1,939** ** $1,935 \n\nTotal term deposits\n $5,318  $8,568 \n\n \n\nRestricted 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 $821 and $816 as at *March 31, 2026* and *June 30, 2025*, respectively are classified as current assets as they relate to short-term trade financing. On the other hand, restricted deposits of $1,939 and $1,935 as at *March 31, 2026* and *June 30, 2025*, respectively are classified as non-current assets as they relate to long-term obligations and will become unrestricted only upon discharge of the obligations. \n\n \n\n \n\n**4.**\n\n**TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE FOR EXPECTED CREDIT LOSSES**\n\n \n\nAccounts 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.\n\n \n\nThe 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.\n\n \n\nThe following table represents the changes in the allowance for expected credit losses: \n\n \n\n  \n*March 31,*\n  \n*June 30,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n     \n\n         \n\nBeginning\n $35  $209 \n\nAdditions charged to expense\n  158   62 \n\nRecovered\n  (7)  (61)\n\nWritten off\n  (35)  (178)\n\nCurrency translation effect\n  -   3 \n\nEnding\n $151  $35 \n\n \n\n-\n*8* -\n\n[Table of Contents](#toc)\n\n \n\n \n\n**5.**\n\n**LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS**\n\n \n\nThe following table presents Trio-Tech (Chongqing) Co. Ltd (“TTCQ”)’s loan receivables from property development projects in China as of *March 31, 2026*.\n\n \n\n \n**Loan Expiry**\n \n**Loan Amount**\n  \n**Loan Amount**\n \n\n \n**Date**\n \n**(RMB)**\n  \n**(U.S. Dollars)**\n \n\n**Short-term loan receivables**\n    ** **   ** **\n\nJiangHuai (Project – Yu Jin Jiang An)\n\n*May 31, 2013*\n  2,000   289 \n\n*Less: allowance for expected credit losses*\n  (2,000)  (289)\n\n*Net loan receivables from property development projects*\n  -   - \n\n \n\nThe short-term loan receivables amounting to renminbi (“RMB”) 2,000, or approximately $289 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 the Company’s financial policy, an allowance for expected credit losses of $289 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 *three* months ended *March 31, 2026*and *2025*. TTCQ is in the legal process of recovering the outstanding amount of approximately $289.\n\n \n\n \n\n**6.**\n\n**INVENTORIES**\n\n \n\nInventories consisted of the following:\n\n \n\n \n \n\n*March 31,*\n\n \n \n\n*June 30,*\n\n \n\n \n \n\n*2026*\n\n \n \n\n*2025*\n\n \n\n \n \n\n(Unaudited)\n\n \n \n \n \n \n\n \n \n \n \n \n \n \n \n \n\nRaw materials\n\n \n$\n1,390\n \n \n$\n1,438\n \n\nWork in progress\n\n \n \n1,229\n \n \n \n658\n \n\nFinished goods\n\n \n \n693\n \n \n \n838\n \n\nLess: provision for obsolete inventories\n\n \n \n(824\n)\n \n \n(851\n)\n\nCurrency translation effect\n\n \n \n(16\n)\n \n \n179\n \n\n \n \n$\n2,472\n \n \n$\n2,262\n \n\n \n\nThe following table represents the changes in provision for obsolete inventories:\n\n \n\n \n \n\n*March 31,*\n\n \n \n\n*June 30,*\n\n \n\n \n \n\n*2026*\n\n \n \n\n*2025*\n\n \n\n \n \n\n(Unaudited)\n\n \n \n \n \n \n\n \n \n \n \n \n \n \n \n \n\nBeginning\n\n \n$\n851\n \n \n$\n679\n \n\n(Reversal) / Additions charged to expense\n\n \n \n(23\n)\n \n \n160\n \n\nUsage – disposition\n\n \n \n-\n \n \n \n(10\n)\n\nCurrency translation effect\n\n \n \n(4\n)\n \n \n22\n \n\nEnding\n\n \n$\n824\n \n \n$\n851\n \n\n \n\n-\n*9* -\n\n[Table of Contents](#toc)\n\n \n\n \n\n**7.**\n\n**INVESTMENT PROPERTIES**\n\n \n\nThe following table presents the Company’s investment in properties in China as of *March 31, 2026*. The exchange rate is based on the market rate as of *March 31, 2026*.\n\n \n\n  \n*March 31,*\n  \n*June 30,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n     \n\n         \n\n**Property I – MaoYe Property**\n   ** **   ** **\n\nCost\n $301  $301 \n\nLess: Accumulated depreciation\n  (261)  (250)\n\nCurrency translation effect\n  (10)  (11)\n\n  $30  $40 \n\n \n\n  \n*March 31,*\n  \n*June 30,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n     \n\n         \n\n**Property II – JiangHuai Property**\n   ** **   ** **\n\nCost\n $137  $137 \n\nLess: Accumulated depreciation\n  (45)  (25)\n\nCurrency translation effect\n  6   1 \n\n  $98  $113 \n\n \n\n  \n*March 31,*\n  \n*June 30,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n     \n\n         \n\n**Property III – FuLi Property**\n   ** **   ** **\n\nCost\n $648  $648 \n\nLess: Accumulated depreciation\n  (403)  (382)\n\nCurrency translation effect\n  (68)  (74)\n\n  $177  $192 \n\n \n\n**Rental Property I**–**MaoYe Property**\n\n \n\nMaoYe Property generated a rental income of $nil and $9 during the *three* and *nine* months ended *March 31, 2026*, as compared to $6 and $19 for the same period on Fiscal *2025.*\n\n \n\nA lease agreement was entered into on *April **15,* *2026* for a period of *2* years at a monthly rate of RMB12, or approximately $2. \n\n \n\nDepreciation expense for MaoYe Property was $3 and $11 for the *three* and *nine* months ended *March 31, 2026*, as compared to $3 and $10 for the same period in Fiscal *2025.*\n\n \n\n-\n*10* -\n\n[Table of Contents](#toc)\n\n \n\n**Rental Property II**–**JiangHuai**\n\n \n\nJiangHuai Property generated rental income of $1 and $3 for the *three* and *nine* months ended *March 31, 2026*. It did *not* generate any rental income for the same period in Fiscal *2**025.* On *January 1, 2025,*the Company entered into a *three*-year lease agreement with a monthly rental payment of RMB2, or approximately $0.3. On *September 17, 2025,*the Company entered into another *one*-year lease with a monthly rental of RMB2, or approximately $0.3. Additionally, on *October 30, 2025,*the Company executed *three* separate lease agreements with terms of *three* years each and a monthly rental of RMB2, or approximately $0.3; The Company had *not* started collecting rental revenue under the *October*lease agreements due to the pending completion of utility connections.\n\n \n\nDepreciation expense for JiangHuai was $8 and $20 for the *three* and *nine* months ended *March 31, 2026*, as compared to $7 and $20 for the same period in Fiscal *2025.*\n\n \n\n**Rental Property III**–**FuLi**\n\n \n\nFuLi Property generated a rental income of $4 and $10 for the *three* and *nine* months ended *March 31, 2026*, as compared to $3 and $6 for the *three* and *nine* months ended *March 31, 2025*.\n\n \n\nA 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.\n\n \n\nDepreciation expense for FuLi was $7 and $21 for the *three* and *nine* months ended *March 31, 2026*, as compared to $7 and $21 for the same period in Fiscal *2025.*\n\n \n\n**Summary**\n\n \n\nTotal rental income for all investment properties in China was $5 and $22 for the *three* and *nine* months ended *March 31, 2026*, as compared to $9 and $25 for the same period in Fiscal *2025.*\n\n \n\nDepreciation expense for all investment properties in China was $18 and $52 for the *three* and *nine* months ended *March 31, 2026*, as compared to $17 and $51 for the same period in Fiscal *2025.*\n\n \n\n \n\n**8.**\n\n**OTHER ASSETS**\n\n \n\nOther assets consisted of the following:\n\n \n\n  \n*March 31,*\n  \n*June 30,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n     \n\nDeposits for rental and utilities and others\n $242  $219 \n\nDownpayment for purchase of investment properties*\n  1,580   1,580 \n\nLess: provision for impairment\n  (1,580)  (1,580)\n\nCurrency translation effect\n  2   12 \n\n**Total**\n $244  $231 \n\n \n\n*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 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.\n\n \n\n-\n*11* -\n\n[Table of Contents](#toc)\n\n \n\nDuring the *fourth* quarter of Fiscal *2021,* the Company accrued an impairment charge of $1,580 related to the doubtful recovery of the down payment on property in the Singapore Themed Resort Project in Chongqing, China. The Company elected to take this non-cash impairment charge due to increased uncertainties regarding the project’s viability, given the developers’ weakening financial condition as well as uncertainties arising from the negative real-estate environment in China, implementation of control measures on real-estate lending in China and its relevant government policies. There have been *no* changes in circumstances since the impairment was recorded.\n\n \n\n \n\n**9.**\n\n**LINES OF CREDIT**\n\n \n\nThe carrying value of the Company’s lines of credit approximates its fair value because the interest rates associated with the lines of credit are adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities.\n\n \n\nThe Company’s credit rating provides it with ready and adequate access to funds in global markets.\n\n \n\nAs of *March 31, 2026*, the Company had certain lines of credit that are collateralized by restricted deposits.\n\n \n\nEntity with\n\n \n\n*Type of*\n\n \n\n*Interest*\n\n \n\n*Credit*\n\n \n \n\n*Unused*\n\n \n\nFacility\n\n \n\n*Facility*\n\n \n\n*Rate*\n\n \n\n*Limitation*\n\n \n \n\n*Credit*\n\n \n\nTrio-Tech International Pte. Ltd., Singapore\n\n \n\n*Lines of Credit*\n\n \n\nCost of Funds Rate +1.25%\n\n \n$\n4,105\n \n \n$\n3,846\n \n\nUniversal (Far East) Pte. Ltd.\n\n \n\n*Lines of Credit*\n\n \n\nCost of Funds Rate +1.25%\n\n \n$\n1,946\n \n \n$\n1,908\n \n\nTrio-Tech Malaysia Sdn. Bhd.\n\n \n\n*Revolving credit*\n\n \n\nCost of Funds Rate +2%\n\n \n$\n370\n \n \n$\n370\n \n\n \n\nAs of *June 30, 2025*, the Company had certain lines of credit that are collateralized by restricted deposits.\n\n \n\nEntity with\n\n \n\n*Type of*\n\n \n\n*Interest*\n\n \n\n*Credit*\n\n \n \n\n*Unused*\n\n \n\nFacility\n\n \n\n*Facility*\n\n \n\n*Rate*\n\n \n\n*Limitation*\n\n \n \n\n*Credit*\n\n \n\nTrio-Tech International Pte. Ltd., Singapore\n\n \n\n*Lines of Credit*\n\n \n\nCost of Funds Rate +1.25%\n\n \n$\n4,155\n \n \n$\n3,856\n \n\nUniversal (Far East) Pte. Ltd.\n\n \n\n*Lines of Credit*\n\n \n\nCost of Funds Rate +1.25%\n\n \n$\n1,960\n \n \n$\n1,864\n \n\nTrio-Tech Malaysia Sdn. Bhd.\n\n \n\n*Revolving credit*\n\n \n\nCost of Funds Rate +2%\n\n \n$\n354\n \n \n$\n354\n \n\n \n\n-\n*12* -\n\n[Table of Contents](#toc)\n\n \n\n \n\n**10.**\n\n**ACCRUED EXPENSE**\n\n \n\nAccrued expense consisted of the following:\n\n \n\n \n \n\n*March 31,*\n\n \n \n\n*June 30,*\n\n \n\n \n \n\n*2026*\n\n \n \n\n*2025*\n\n \n\n \n \n\n(Unaudited)\n\n \n \n \n \n \n\n \n \n \n \n \n \n \n \n \n\nPayroll and related costs\n\n \n$\n1,300\n \n \n$\n1,040\n \n\nCommissions\n\n \n \n234\n \n \n \n155\n \n\nLegal and audit\n\n \n \n322\n \n \n \n302\n \n\nSales tax and withholding tax\n\n \n \n66\n \n \n \n61\n \n\nSales rebate\n\n \n \n16\n \n \n \n46\n \n\nTravel expense\n\n \n \n20\n \n \n \n24\n \n\nUtilities\n\n \n \n105\n \n \n \n95\n \n\nWarranty\n\n \n \n17\n \n \n \n17\n \n\nAccrued purchase\n\n \n \n72\n \n \n \n339\n \n\nProvision for reinstatement\n\n \n \n581\n \n \n \n555\n \n\nOther accrued expense\n\n \n \n87\n \n \n \n122\n \n\nDividend payable\n\n \n \n44\n \n \n \n3\n \n\nAcquisition of subsidiary shares from non-controlling interest\n\n \n \n-\n \n \n \n141\n \n\nCurrency translation effect\n\n \n \n20\n \n \n \n136\n \n\n**Total**\n\n \n$\n2,884\n \n \n$\n3,036\n \n\n \n\n \n\n**11.**\n\n**ASSURANCE WARRANTY ACCRUAL**\n\n \n\nThe Company provides for the estimated costs that *may*be incurred under its warranty program at the time the sale is recorded. The warranty period of the products manufactured by the Company is generally *one* year or the warranty period agreed upon with the customer. The Company estimates the warranty costs based on the historical rates of warranty returns. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary.\n\n \n\n \n \n\n*March 31,*\n\n \n \n\n*June 30,*\n\n \n\n \n \n\n*2026*\n\n \n \n\n*2025*\n\n \n\n \n \n\n(Unaudited)\n\n \n \n \n \n \n\n \n \n \n \n \n \n \n \n \n\nBeginning\n\n \n$\n17\n \n \n$\n27\n \n\nAdditions charged to cost and expense\n\n \n \n12\n \n \n \n4\n \n\nUtilization\n\n \n \n(12\n)\n \n \n(15\n)\n\nCurrency translation effect\n\n \n \n-\n \n \n \n1\n \n\n**Ending**\n\n \n$\n17\n \n \n$\n17\n \n\n \n\n-\n*13* -\n\n[Table of Contents](#toc)\n\n \n\n \n\n**12.**\n\n**BANK LOANS PAYABLE**\n\n \n\nBank loans payable consisted of the following:\n\n \n\n  \n*March 31,*\n  \n*June 30,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n     \n\n         \n\nNote 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 March 31, 2026 and June 30, 2025) per annum, with monthly payments of principal plus interest through July 2028, collateralized by the acquired building with a carrying value of $2,430 and $2,351, as at March 31, 2026 and June 30, 2025, respectively.\n $409  $508 \n\nFinancing arrangement at fixed interest rate 3.2% per annum, with monthly payments of principal plus interest through July 2025.\n  -   4 \n\nFinancing arrangement at fixed interest rate 3.0% per annum, with monthly payments of principal plus interest through December 2026.\n  45   85 \n\nFinancing arrangement at fixed interest rate 3.0% per annum, with monthly payments of principal plus interest through August 2027.\n  61   87 \n\n**Total bank loans payable**\n $515  $684 \n\n         \n\nCurrent portion of bank loans payable\n  247   225 \n\nCurrency translation effect on current portion of bank loans\n  13   31 \n\n**Current portion of bank loans payable**\n $260  $256 \n\nLong-term portion of bank loans payable\n  240   368 \n\nCurrency translation effect on long-term portion of bank loans\n  15   60 \n\n**Long-term portion of bank loans payable**\n $255  $428 \n\n \n\nFuture minimum payments (excluding interest) as at *March 31, 2026*, were as follows:\n\n \n\nRemainder of Fiscal 2026\n\n \n$\n68\n \n\n2027\n\n \n \n247\n \n\n2028\n\n \n \n189\n \n\nThereafter\n\n \n \n11\n \n\n**Total obligations and commitments**\n\n \n$\n515\n \n\n \n\nFuture minimum payments (excluding interest) as at *June 30, 2025*, were as follows:\n\n \n\n2026\n\n \n$\n256\n \n\n2027\n\n \n \n236\n \n\n2028\n\n \n \n181\n \n\nThereafter\n\n \n \n11\n \n\n**Total obligations and commitments**\n\n \n$\n684\n \n\n \n\n-\n*14* -\n\n[Table of Contents](#toc)\n\n \n\n \n\n**13.**\n\n**COMMITMENTS AND CONTINGENCIES**\n\n \n\nThe Company has capital commitments for capital expenditures amounting to $30 as at *March 31, 2026*, as compared to capital commitment of $16 as at *June 30, 2025*.\n\n \n\nDeposits with banks are\n*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.\n\n \n\nDuring the *third* quarter of fiscal year *2026,* the Company's Malaysia subsidiary entered into a *one*-year customs bond arrangement totaling MYR10 million or approximately $2,470. This bond serves as a financial guarantee for the payment of duties and taxes in the event of any violation of temporary import or controlled schemes. As of the reporting date, management does *not* expect any material liabilities to arise from this arrangement.\n\n \n\nThe 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.\n\n \n\n \n\n**14.**\n\n**BUSINESS SEGMENTS**\n\n \n\nASC 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.\n\n \n\nOur 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 *March 31, 2026* 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:\n\n \n\n●\nManufacturing – 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.\n\n \n\n●\nTesting Services – Testing services are presented under the SBS segment.\n\n \n\n-\n*15* -\n\n[Table of Contents](#toc)\n\n \n\n●\nDistribution – 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.\n\n \n\n●\nReal 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. \n\n \n\nOur 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 revenue includes sales of equipment and services by our segments. Total intersegment sales were $1 and $3 in the *three* months ended *March 31, 2026* and *March 31, 2025* 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 revenue, manpower costs and fixed assets.\n\n \n\nThe amounts related to revenue and earnings presented as Others include the results of an immaterial real estate business 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 the Others segment consisted primarily of cash and cash equivalents, prepaid expense and investment properties.\n\n \n\nThe 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.\n\n \n\n \n*Nine Months*\n  * *  \n*Gross*\n  \n*Operating*\n   * *   * *   * * \n\n \n*Ended*\n \n*Net*\n  \n*Profit /*\n  \n*Income /*\n  \n*Total*\n  \n*Depr. and*\n  \n*Capital*\n \n\n \n*March 31,*\n \n*Revenue*\n  \n*(Loss)*\n  \n*(Loss)*\n  \n*Assets*\n  \n*Amort.*\n  \n*Expenditures*\n \n\nSemiconductor Back-end Solutions\n\n*2026*\n $36,888  $5,460  $407  $30,433  $1,357  $828 \n\n \n*2025*\n $18,113  $4,972  $271  $25,508  $1,872  $352 \n\n                          \n\nIndustrial Electronics\n\n*2026*\n  10,762   2,206   226   6,451   201   48 \n\n \n*2025*\n  7,665   1,572   (30)  5,915   170   56 \n\n                          \n\nOthers\n\n*2026*\n  24   (28)  (571)  7,831   53   - \n\n \n*2025*\n  24   (28)  (454)  8,536   51   - \n\n                          \n\nTotal Company\n\n*2026*\n $47,674  $7,638  $62  $44,715  $1,611  $876 \n\n \n*2025*\n $25,802  $6,516  $(213) $39,959  $2,093  $408 \n\n \n\n-\n*16* -\n\n[Table of Contents](#toc)\n\n \n\nThe following segment information is unaudited for the *three* months ended *March 31, 2026*, and *March 31, 2025*:\n\n \n\n**Business Segment Information:**\n\n \n\n \n*Three Months*\n  * *  \n*Gross*\n  \n*Operating*\n   * *   * *   * * \n\n \n*Ended*\n \n*Net*\n  \n*Profit /*\n  \n*Income /*\n  \n*Total*\n  \n*Depr. and*\n  \n*Capital*\n \n\n \n*March 31,*\n \n*Revenue*\n  \n*(Loss)*\n  \n*(Loss)*\n  \n*Assets*\n  \n*Amort.*\n  \n*Expenditures*\n \n\nSemiconductor Back-end Solutions\n\n*2026*\n $13,079  $1,973  $319  $30,433  $539  $528 \n\n \n*2025*\n $5,425  $1,436  $(3) $25,508  $597  $100 \n\n                          \n\nIndustrial Electronics\n\n*2026*\n  3,426   593   10   6,451   81   16 \n\n \n*2025*\n  1,950   548   -   5,915   57   56 \n\n                          \n\nOthers\n\n*2026*\n  6   (12)  (410)  7,831   18   - \n\n \n*2025*\n  9   (8)  (340)  8,536   17   - \n\n                          \n\nTotal Company\n\n*2026*\n $16,511  $2,554  $(81) $44,715  $638  $544 \n\n \n*2025*\n $7,384  $1,976  $(343) $39,959  $671  $156 \n\n \n\nManagement periodically evaluates the ongoing contributions of each of its business segments to its current and future revenue and prospects. As a result, it *may*divest *one* or more business segments in the future to enable management to concentrate on segments where it anticipates opportunities for future revenue growth, thereby maximizing shareholder value.\n\n \n\n \n\n**15.**\n\n**OTHER INCOME / (EXPENSE)**\n\n \n\nOther income / (expense) consisted of the following:\n\n \n\n \n \n\n*Three Months Ended*\n\n \n \n\n*Nine Months Ended*\n\n \n\n \n \n\n*March 31,*\n\n \n \n\n*March 31,*\n\n \n \n\n*March 31,*\n\n \n \n\n*March 31,*\n\n \n\n \n \n\n*2026*\n\n \n \n\n*2025*\n\n \n \n\n*2026*\n\n \n \n\n*2025*\n\n \n\n \n \n\n(Unaudited)\n\n \n \n\n(Unaudited)\n\n \n \n\n(Unaudited)\n\n \n \n\n(Unaudited)\n\n \n\nInterest income\n\n \n$\n57\n \n \n$\n74\n \n \n$\n194\n \n \n$\n257\n \n\nOther rental income\n\n \n \n31\n \n \n \n29\n \n \n \n91\n \n \n \n109\n \n\nExchange loss\n\n \n \n(63\n)\n \n \n(251\n)\n \n \n(53\n)\n \n \n(207\n)\n\nDividend income ^\n\n \n \n177\n \n \n \n-\n \n \n \n371\n \n \n \n-\n \n\nOther miscellaneous (expense) / income\n\n \n \n(14\n)\n \n \n4\n \n \n \n7\n \n \n \n18\n \n\n**Total**\n\n \n$\n188\n \n \n$\n(144\n)\n \n$\n610\n \n \n$\n177\n \n\n  \n\n^ During the financial period, dividend income was received by Prestal Sdn. Bhd., *one* of the Company’s subsidiaries, from an investment in unquoted shares.\n\n \n\n**16.**\n\n**GOVERNMENT GRANTS**\n\n  \n\n  \n*Three Months Ended*\n  \n*Nine Months Ended*\n \n\n  \n*March 31,*\n  \n*March 31,*\n  \n*March 31,*\n  \n*March 31,*\n \n\n  \n*2026*\n  \n*2025*\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n  \n(Unaudited)\n  \n(Unaudited)\n  \n(Unaudited)\n \n\nGovernment grant\n $11  $22  $15  $93 \n\n \n\nIn the *three* months ended *March 31, 2026*, the Company receive government grants amounting to $11, wholly from the Singapore government for local resident recruitment. In comparison, during the same period in Fiscal *2025*, the Company received government grants amounting to $22, $19 consisting of an incentive from the Singapore government for local resident recruitment, and $3 related to a capital expenditure subsidy received from the government in China.\n\n \n\nIn the *nine* months ended *March 31, 2026*, the Company received government grants amounting to $15, $13 consisting of financial assistance received from the Singapore government for local resident recruitment, and the remaining $2, which was related to a capital expenditure subsidy received from the government in China. During the same period in Fiscal *2025,* the Company received government grants amounting to $93, $81 of which was financial assistance received from the Singapore government for local resident recruitment, and the remaining $12, which was related to a capital expenditure subsidy received from the government in China.\n\n \n\n-\n*17* -\n\n[Table of Contents](#toc)\n\n \n\n \n\n**17.**\n\n**INCOME TAX**\n\n \n\nThe 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.\n\n \n\nDue 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 $32 and $nil for the *nine* months ended *March 31, 2026*and *2025*, respectively. The GILTI expense recorded during the *nine* months ended *March 31, 2026*primarily related to the finalization of the Company’s fiscal year *2025* tax provision, resulting in an under provision adjustment recorded in the current period.\n\n \n\nThe Company's income tax expense was $146 and $287 for the *three* and *nine* months ended *March 31, 2026*, as compared to $6 and $196 for the same period in Fiscal *2025*. Income tax expense increased due to GILTI expenses and withholding taxes. Our effective tax rate (“ETR”) from continuing operations was 44.4% and 933.3% for the *nine* months ended *March 31, 2026* and *March 31, 2025*, respectively. ETR was higher for the *nine* months ended *March 31, 2025,*due to lower deferred tax assets in our Singapore operation, driven by lower provisions, which reduced the deductible temporary differences.\n\n \n\nThe 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 *March 31, 2026* and *March 31, 2025*, respectively.\n\n \n\nIn 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.\n\n \n\n \n\n**18.**\n\n**REVENUE**\n\n \n\nThe 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.\n\n \n\n**Significant Judgments**\n\n \n\nThe 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.\n\n \n\n-\n*18* -\n\n[Table of Contents](#toc)\n\n \n\nThe 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.\n\n \n\nWarranties, 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.\n\n \n\n**Products**\n\n \n\nThe 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.\n\n \n\nUnder 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.\n\n \n\nThe 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:\n\n \n\n●\n\nthe Company has a present right to payment;\n\n \n\n●\n\nthe customer has legal title;\n\n \n\n●\n\nthe customer has physical possession;\n\n \n\n●\n\nthe customer has significant risk and rewards of ownership; and\n\n \n\n●\n\nthe 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).\n\n \n\n*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.\n\n \n\nMajority 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.\n\n \n\nCustomized 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.\n\n \n\nProduct sales were $5,300 and $16,488 for the *three* and *nine* months ended *March 31, 2026*, as compared $3,812 to $13,765 and for the same period in Fiscal *2025.*\n\n \n\n-\n*19* -\n\n[Table of Contents](#toc)\n\n \n\n**Services**\n\n \n\nThe 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.\n\n \n\nTerms 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.\n\n \n\nService sales were $11,205 and $31,162 for the *three* and *nine* months ended *March 31, 2026*, as compared to $3,563 and $12,013 for the same period in Fiscal *2025.*\n\n \n\n**Contract Balances**\n\n \n\nThe 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.\n\n \n\nThe following table is the reconciliation of contract balances.\n\n \n\n  \n*March 31,*\n  \n*June 30,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n     \n\n         \n\nTrade Accounts Receivable\n $13,386  $10,804 \n\nAccounts Payable\n  5,698   1,896 \n\nContract Liabilities\n  92   250 \n\n \n\n**Contract Liabilities**\n\n \n\nRevenue recognized during the period that was included in contract liabilities at the beginning of the period was $231.\n\n \n\n**Remaining Performance Obligation**\n\n \n\nThe Company had $2 and $nil remaining performance obligations, which represents our obligation to deliver products and services for both periods ended *March 31, 2026* and *March 31, 2025*, respectively.\n\n \n\n**19.**\n\n**EARNINGS PER SHARE**\n\n \n\nOptions to purchase 1,666,926 shares of Common Stock at exercise prices ranging from $2.25 to $6.92 per share were outstanding as of *March 31, 2026*. no stock options were excluded in the computation of diluted earnings per share (“EPS”) for the *three* and *nine* months ended *March 31, 2026*, as all such options were dilutive.\n\n \n\nOptions to purchase 1,638,500 shares of Common Stock at exercise prices ranging from $1.87 to $3.88 per share were outstanding as of *March 31, 2025*. 281,412 stock options were excluded in the computation of EPS for the *three* and *nine* months ended *March 31, 2025*, because they were anti-dilutive.\n\n \n\n-\n*20* -\n\n[Table of Contents](#toc)\n\n \n\nThe following table is a reconciliation of the weighted average shares used in the computation of basic and diluted EPS for the period presented herein:\n\n \n\n  \n*Three Months Ended*\n  \n*Nine Months Ended*\n \n\n  \n*March 31,*\n  \n*March 31,*\n  \n*March 31,*\n  \n*March 31,*\n \n\n  \n*2026*\n  \n*2025*\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n  \n(Unaudited)\n  \n(Unaudited)\n  \n(Unaudited)\n \n\n                 \n\n(Loss) / Income attributable to Trio-Tech International common shareholders from continuing operations, net of tax\n $(39) $(498) $132  $(227)\n\nIncome attributable to Trio-Tech International common shareholders from discontinued operations, net of tax\n  1   3   33   3 \n\n**Net (Loss) / Income Attributable to Trio-Tech International Common Shareholders**\n $(38) $(495) $165  $(224)\n\n                 \n\nWeighted average number of common shares outstanding - basic\n  8,840   8,545   8,721   8,516 \n\nDilutive effect of stock options\n  908   206   554   226 \n\nNumber of shares used to compute earnings per share - diluted\n  9,748   8,751   9,275   8,742 \n\n                 \n\nBasic (loss) / earnings per share from continuing operations attributable to Trio-Tech International\n $(0.00) $(0.06) $0.02  $(0.03)\n\nBasic earnings per share from discontinued operations attributable to Trio-Tech International\n  -   -   -   - \n\n**Basic (Loss) / Earnings per Share from Net Income Attributable to Trio-Tech International**\n $(0.00) $(0.06) $0.02  $(0.03)\n\n                 \n\nDiluted (loss) / earnings per share from continuing operations attributable to Trio-Tech International\n $(0.00) $(0.06) $0.02  $(0.03)\n\nDiluted earnings per share from discontinued operations attributable to Trio-Tech International\n  -   -   -   - \n\n**Diluted (Loss) / Earnings per Share from Net Income Attributable to Trio-Tech International**\n $(0.00) $(0.06) $0.02  $(0.03)\n\n \n\n \n\n \n\n \n\n**20.**\n\n**STOCK OPTIONS**\n\n \n\nOn *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.*\n\n \n\n**Assumptions**\n\n \n\nThe 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:\n\n \n\n●\nAn 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;\n\n●\n\nA risk-free interest rate varying from 3.59% to 4.59% (*2025:* 0.11% to 4.59%);\n\n●\n\nNo expected dividend payments; and\n\n●\n\nExpected volatility of 46.7% to 72.2% (*2025:* 46.7% to 73.9%).\n\n \n\n-\n*21* -\n\n[Table of Contents](#toc)\n\n \n\n**2017 Employee Stock Option Plan**\n\n \n\nThe Company’s *2017* Employee Plan permits the grant of stock options to its employees covering up to an aggregate of 600,000 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 600,000 shares to an aggregate of 1,200,000 shares, which amendment was approved by the Company’s shareholders at the annual meeting held in *December 2021.*\n\n \n\nUnder 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).\n\n \n\nDuring the *nine*-month period ended *March 31, 2026*, there were 169,000 stock options granted and 177,132 stock options were exercised under the *2017* Employee Plan. The Company recognized $220 in stock-based compensation expense during the *nine* months ended *March 31, 2026*.\n\n \n\nDuring the *nine*-month period ended *March 31, 2025*, there were 160,000 stock options granted and 5,000 stock options were exercised under the *2017* Employee Plan. The Company recognized $209 in stock-based compensation expense during the *nine* months ended *March 31, 2025*.\n\n \n\nAs of *March 31, 2026*, there were vested stock options granted under the *2017* Employee Plan covering a total of 397,640 shares of Common Stock. The weighted-average exercise price was $3.00 and the weighted average remaining contractual term was 2.40 years.\n\n \n\nAs of *March 31, 2025*, there were vested stock options granted under the *2017* Employee Plan covering a total of 421,500 shares of Common Stock. The weighted-average exercise price was $2.80 and the weighted average remaining contractual term was 2.60 years.\n\n \n\nA summary of option activities under the *2017* Employee Plan during the *nine* months ended *March 31, 2026*, is presented as follows:\n\n \n\n   * *   * *  \n*Weighted*\n   * * \n\n   * *   * *  \n*Average*\n   * * \n\n   * *  \n*Weighted*\n  \n*Remaining*\n   * * \n\n   * *  \n*Average*\n  \n*Contractual*\n  \n*Aggregate*\n \n\n   * *  \n*Exercise*\n  \n*Term*\n  \n*Intrinsic*\n \n\n  \n*Options*\n  \n*Price*\n  \n*(Years)*\n  \n*Value*\n \n\n                 \n\nOutstanding at July 1, 2025\n  696,904  $2.77   2.88  $113 \n\nGranted\n  169,000   4.66   *-*   *-* \n\nExercised\n  (177,132)  2.63   *-*   *-* \n\nForfeited or expired\n  (4,000)  *2.44*   *-*   *-* \n\nOutstanding at March 31, 2026*\n  684,772  $3.28   3.02  $1,804 \n\nExercisable at March 31, 2026*\n  397,640  $3.00   2.40  $1,126 \n\n \n\n*In connection with the two-for-*one* stock split effected on *January 5, 2026,*outstanding stock options were adjusted to preserve their economic value. As a result of rounding adjustments applied on an award-by-award basis, the sum of option activity presented *may**not* equal the mathematical application of the stock split ratio.\n\n \n\n-\n*22* -\n\n[Table of Contents](#toc)\n\n \n\nA summary of the status of the Company’s non-vested employee stock options during the *nine* months ended *March 31, 2026*, is presented below:\n\n \n\n   * *  \n*Weighted*\n \n\n   * *  \n*Average*\n \n\n   * *  \n*Grant-Date*\n \n\n  \n*Options*\n  \n*Fair Value*\n \n\n         \n\nNon-vested at July 1, 2025\n  273,992  $2.74 \n\nGranted\n  169,000   4.66 \n\nVested\n  (155,860)  *-* \n\nNon-vested at March 31, 2026*\n  287,132  $3.66 \n\n \n\n*In connection with the two-for-*one* stock split effected on *January 5, 2026,*outstanding stock options were adjusted to preserve their economic value. As a result of rounding adjustments applied on an award-by-award basis, the sum of option activity presented *may**not* equal the mathematical application of the stock split ratio.\n\n \n\nA summary of option activities under the *2017* Employee Plan during the *nine* months ended *March 31, 2025*, is presented as follows:\n\n \n\n   * *   * *  \n*Weighted*\n   * * \n\n   * *   * *  \n*Average*\n   * * \n\n   * *  \n*Weighted*\n  \n*Remaining*\n   * * \n\n   * *  \n*Average*\n  \n*Contractual*\n  \n*Aggregate*\n \n\n   * *  \n*Exercise*\n  \n*Term*\n  \n*Intrinsic*\n \n\n  \n*Options*\n  \n*Price*\n  \n*(Years)*\n  \n*Value*\n \n\n                 \n\nOutstanding at July 1, 2024\n  541,500  $2.68   3.43  $268 \n\nGranted\n  160,000   3.10   *-*   *-* \n\nExercised\n  (5,000)  2.49   *-*   *-* \n\nOutstanding at March 31, 2025\n  696,500  $2.78   *3.13*  $*243* \n\nExercisable at March 31, 2025\n  421,500  $2.80   2.60  $160 \n\n \n\n \n\nA summary of the status of the Company’s non-vested employee stock options during the *nine* months ended *March 31, 2025*, is presented below:\n\n \n\n   * *  \n*Weighted*\n \n\n   * *  \n*Average*\n \n\n   * *  \n*Grant-Date*\n \n\n  \n*Options*\n  \n*Fair Value*\n \n\n         \n\nNon-vested at July 1, 2024\n  269,000  $2.56 \n\nGranted\n  160,000   3.10 \n\nVested\n  (154,000)  *-* \n\nNon-vested at March 31, 2025\n  275,000  $2.74 \n\n \n\n**2017 Directors Equity Incentive Plan**\n\n \n\nThe *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 600,000 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 thereunder from 600,000 shares to an aggregate of 1,200,000 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 thereunder from 1,200,000 shares to an aggregate of 1,800,000 shares, which amendment was approved by the Company’s shareholders at the annual meeting held in *December 2023.*\n\n \n\nUnder 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. \n\nOn *January 9, **2026,* an exceptional equity grant was approved and issued. The award is subject to a non-standard vesting arrangement, under which the total grant vests in eight equal quarterly installments. Each installment represents *one*-*eighth* (12.5%) of the total award, vesting over a two-year period, contingent upon continued directorship and in accordance with the governing equity plan.\n\n \n\n-\n*23* -\n\n[Table of Contents](#toc)\n\n \n\nDuring the *nine*-month period ended *March 31, 2026*, the Company granted 200,000 stock options under the *2017* Directors Plan. There were 160,167 stock options exercised and the Company recognized $173 in stock-based compensation expense during the *nine* months ended *March 31, 2026*.\n\n \n\nDuring the *nine*-month period ended *March 31, 2025*, the Company granted 200,000 stock options under the *2017* Directors Plan. There were 120,000 stock options exercised and the Company recognized $204 in stock-based compensation expense during the *nine* months ended *March 31, 2025*.\n\n \n\nAs all the stock options granted under the *2017* Directors Plan vest immediately on the date of grant except an exceptional equity grant was approved and issued on *January 9, 2026. * There were 175,000 and nil unvested stock options granted under the *2017* Directors Plan as of *March 31, 2026*, or *March 31, 2025*, respectively.\n\n \n\nAs of *March 31, 2026*, there were vested stock options granted under the *2017* Directors Plan covering a total of 807,154 shares of Common Stock. The weighted average exercise price was $3.08 and the weighted average remaining contractual term was 2.52 years.\n\n \n\nAs of *March 31, 2025*, there were vested stock options granted under the *2017* Directors Plan covering a total of 942,000 shares of Common Stock. The weighted average exercise price was $2.90 and the weighted average remaining contractual term was 3.01 years.\n\n \n\nA summary of option activity under the *2017* Directors Plan during the *nine* months ended *March 31, 2026*, is presented as follows:\n\n \n\n   * *   * *  \n*Weighted*\n   * * \n\n   * *   * *  \n*Average*\n   * * \n\n   * *  \n*Weighted*\n  \n*Remaining*\n   * * \n\n   * *  \n*Average*\n  \n*Contractual*\n  \n*Aggregate*\n \n\n   * *  \n*Exercise*\n  \n*Term*\n  \n*Intrinsic*\n \n\n  \n*Options*\n  \n*Price*\n  \n*(Years)*\n  \n*Value*\n \n\n                 \n\nOutstanding at July 1, 2025\n  942,321  $2.90   2.76  $136 \n\nGranted\n  200,000   6.92   *-*   *-* \n\nExercised\n  (160,167)  2.64   *-*   *-* \n\nOutstanding at March 31, 2026*\n  982,154  $3.76   2.92  $2,211 \n\nExercisable at March 31, 2026*\n  807,154  $3.08   2.52  $2,211 \n\n \n\n*In connection with the two-for-*one* stock split effected on *January 5, 2026,*outstanding stock options were adjusted to preserve their economic value. As a result of rounding adjustments applied on an award-by-award basis, the sum of option activity presented *may**not* equal the mathematical application of the stock split ratio.\n\nOn *January 9, 2026,*an exceptional equity grant was approved and issued. The award is subject to a non-standard vesting arrangement, under which the total grant vests in eight equal quarterly installments. Each installment represents *one*-*eighth* (12.5%) of the total award, vesting over a two-year period, contingent upon continued directorship and in accordance with the governing equity plan. A summary of the status of the Company’s non-vested employee stock options during the *nine* months ended *March 31, 2026*, is presented below:\n\n \n\n   * *  \n*Weighted*\n \n\n   * *  \n*Average*\n \n\n   * *  \n*Grant-Date*\n \n\n  \n*Options*\n  \n*Fair Value*\n \n\n         \n\nNon-vested at July 1, 2025\n  -  $- \n\nGranted\n  200,000   6.92 \n\nVested\n  (25,000)  - \n\nNon-vested at March 31, 2026\n  175,000  $6.92 \n\n \n\nA summary of option activity under the *2017* Directors Plan during the *nine* months ended *March 31, 2025*, is presented as follows:\n\n \n\n   * *   * *  \n*Weighted*\n   * * \n\n   * *   * *  \n*Average*\n   * * \n\n   * *  \n*Weighted*\n  \n*Remaining*\n   * * \n\n   * *  \n*Average*\n  \n*Contractual*\n  \n*Aggregate*\n \n\n   * *  \n*Exercise*\n  \n*Term*\n  \n*Intrinsic*\n \n\n  \n*Options*\n  \n*Price*\n  \n*(Years)*\n  \n*Value*\n \n\n                 \n\nOutstanding at July 1, 2024\n  862,000  $2.62   2.88  $531 \n\nGranted\n  200,000   3.11   *-*   *-* \n\nExercised\n  (120,000)  1.27   *-*   *-* \n\nOutstanding at March 31, 2025\n  942,000  $2.90   *3.01*  $*291* \n\nExercisable at March 31, 2025\n  942,000  $2.90   3.01  $291 \n\n \n\n-\n*24* -\n\n[Table of Contents](#toc)\n\n \n\n \n\n**21.**\n\n**LEASES**\n\n \n\n**Company as Lessor**\n\n \n\nOperating 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 48 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 $18 and $17 for the *three* months ended *March 31, 2026*, and *March 31, 2025*, respectively.\n\n \n\nFuture minimum rental income in China and Thailand to be received from Fiscal *2026* to the fiscal year ended *June 30, 2029 (*“Fiscal *2029”*) on non-cancelable operating leases is contractually due as follows as of *March 31, 2026*:\n\n \n\n \n\nRemainder of 2026\n $41 \n\n2027\n  165 \n\n2028\n  160 \n\n2029\n  26 \n\n  $392 \n\n \n\nFuture minimum rental income in China and Thailand to be received from Fiscal *2026* to Fiscal *2027* on non-cancelable operating leases is contractually due as follows as of *June 30, 2025*:\n\n \n\n2026\n $65 \n\n2027\n  23 \n\n2028\n  18 \n\n2029\n  4 \n\n  $110 \n\n \n\n**Company as Lessee**\n\n \n\nThe Company is the lessee under operating leases for corporate offices and manufacturing and testing facilities with remaining lease terms of one year to five years and finance leases for plant and equipment.\n\n \n\nSupplemental balance sheet information related to leases was as follows:\n\n \n\n**Components of Lease Balances**\n \n*March 31,*\n  \n*June 30,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n     \n\n**Finance Leases (Plant and Equipment)**\n   ** **   ** **\n\nPlant and equipment, at cost\n $395  $400 \n\nAccumulated depreciation\n  (189)  (131)\n\n**Plant and Equipment, Net**\n $206  $269 \n\n         \n\nCurrent portion of finance leases\n $1  $43 \n\n**Total Finance Lease Liabilities**\n $1  $43 \n\n         \n\n**Operating Leases (Corporate Offices, Manufacturing and Testing Facilities)**\n   ** **   ** **\n\nOperating lease right-of-use assets, Net\n $2,870  $864 \n\n         \n\nCurrent portion of operating leases\n  766   540 \n\nNon-current portion of operating leases, Net\n  2,104   324 \n\n**Total Operating Lease Liabilities**\n $2,870  $864 \n\n \n\n-\n*25* -\n\n[Table of Contents](#toc)\n\n \n\nAs of *April 2026,*the Company's Malaysia subsidiary entered into an office lease agreement and test facility lease agreement, with commencement dates of *April 1, 2026*and *June 1, 2026,*respectively. The new test facility is intended to support upcoming projects, with anticipated growth in operation volume related to the assembly and testing of integrated semiconductor devices. Separately, *one* of the Company's Singapore subsidiaries entered into a new equipment lease, with a commencement date of *May 1, 2026. *\n\n \n\nThe future minimum lease payments are $128 for the remainder of Fiscal *2026,* $1,499 for Fiscal *2027,* and $1,377 thereafter.\n\n \n\nAs the lease terms commence after *March 31, 2026,*the Company has *not* recognized a Right-of-Use (\"ROU\") asset or the corresponding lease liability in the balance sheet as of that date. The ROU asset and lease liabilities will be recognized in the financial statements upon commencement of the respective lease terms.\n\n \n\n  \n*Three Months Ended*\n  \n*Nine Months Ended*\n \n\n  \n*March 31,*\n  \n*March 31,*\n  \n*March 31,*\n  \n*March 31,*\n \n\n  \n*2026*\n  \n*2025*\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n  \n(Unaudited)\n  \n(Unaudited)\n  \n(Unaudited)\n \n\n                 \n\nLease Cost\n                \n\nFinance lease cost:\n                \n\nInterest on finance lease\n $-  $1  $1  $3 \n\nAmortization of right-of-use assets\n  21   19   61   57 \n\nTotal finance lease cost\n $21  $20   62   60 \n\n                 \n\nOperating Lease Costs\n $228  $355  $649  $1,130 \n\n \n\nOther information related to leases was as follows (in thousands except lease term and discount rate):\n\n \n\n  \n*Nine Months Ended*\n \n\n  \n*March 31,*\n  \n*March 31,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n  \n(Unaudited)\n \n\n**Cash Paid for Amounts Included in the Measurement of Lease Liabilities**\n   ** **   ** **\n\nOperating cash flows from finance leases\n $(1) $(3)\n\nOperating cash flows from operating leases\n  (649)  (1,077)\n\nFinance cash flows from finance leases\n  (42)  (48)\n\nRight-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities\n  2,596   - \n\n         \n\n**Weighted-Average Remaining Lease Term:**\n   ** **   ** **\n\nFinance leases\n  0.08   1.00 \n\nOperating leases\n  4.42   2.25 \n\n**Weighted-Average Discount Rate:**\n   ** **   ** **\n\nFinance leases\n  2.28%  2.28%\n\nOperating leases\n  4.73%  5.31%\n\n \n\n-\n*26* -\n\n[Table of Contents](#toc)\n\n \n\nAs of *March 31, 2026*, future minimum lease payments under finance leases and non-cancelable operating leases were as follows:\n\n \n\n  \n**Operating**\n  \n**Finance**\n \n\n  \n**Lease**\n  \n**Lease**\n \n\n  \n**Liabilities**\n  \n**Liabilities**\n \n\n**Fiscal Year**\n   ** **   ** **\n\nRemainder of Fiscal 2026\n $239  $1 \n\n2027\n  808   - \n\n2028\n  660   - \n\nThereafter\n  1,485   - \n\n**Total future minimum lease payments**\n $3,192  $1 \n\nLess: amount representing interest\n  (322)  - \n\n**Present value of net minimum lease payments**\n $2,870  $1 \n\n         \n\n**Presentation on balance sheet**\n   ** **   ** **\n\nCurrent\n $766  $1 \n\nNon-Current\n $2,104  $- \n\n \n\nAs of *June 30, 2025*, future minimum lease payments under finance leases and non-cancelable operating leases were as follows:\n\n \n\n  \n**Operating**\n  \n**Finance**\n \n\n  \n**Lease**\n  \n**Lease**\n \n\n  \n**Liabilities**\n  \n**Liabilities**\n \n\n**Fiscal Year**\n   ** **   ** **\n\n2026\n $560  $44 \n\n2027\n  146   - \n\n2028\n  117   - \n\nThereafter\n  100   - \n\n**Total future minimum lease payments**\n $923  $44 \n\nLess: amount representing interest\n  (59)  (1)\n\n**Present value of net minimum lease payments**\n $864  $43 \n\n         \n\n**Presentation on balance sheet**\n   ** **   ** **\n\nCurrent\n $540  $43 \n\nNon-Current\n $324  $- \n\n \n\n-\n*27* -\n\n[Table of Contents](#toc)\n\n \n\n \n\n**22.**\n\n**FAIR VALUE OF FINANCIAL INSTRUMENTS APPROXIMATE CARRYING VALUE**\n\n \n\nIn 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:\n\n \n\nThere were *no* transfers between Levels *1* and *2* during the *three* months ended *March 31, 2026* and year ended *June 30, 2025*.\n\n \n\nTerm deposits (Level *2*) – The carrying amount approximates fair value because of the short maturity of these instruments.\n\n \n\nRestricted term deposits (Level *2*) – The carrying amount approximates fair value because of the short maturity of these instruments or internal rate are at prevailing market rate.\n\n \n\nLines of credit (Level *3*) – The carrying value of the lines of credit approximates fair value due to the short-term nature of the obligations.\n\n \n\nBank 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.\n\n \n\n \n\n**23.**\n\n**CONCENTRATION OF CUSTOMERS**\n\n \n\nThe Company had three major customers that accounted for the following revenue and trade account receivables:\n\n \n\n  \n*For the Nine Months Ended*\n \n\n  \n*March 31,*\n \n\n  \n*2026*\n  \n*2025*\n \n\n  \n(Unaudited)\n  \n(Unaudited)\n \n\n**Revenue**\n   ** **   ** **\n\n- Customer A\n  41.1%  3.3%\n\n- Customer B\n  10.8%  16.1%\n\n- Customer C\n  9.3%  20.9%\n\n**Trade Account Receivables**\n   ** **   ** **\n\n- Customer A\n  37.2%  1.7%\n\n- Customer B\n  11.1%  13.7%\n\n- Customer C\n  9.3%  18.1%\n\n \n\n \n\n**24.** **STOCK REPURCHASE PROGRAM** \n\n \n\nOn *May 8, 2025, *the Company’s Board of Directors authorized a share repurchase program under which the Company *may *repurchase up to $1 million of its issued and outstanding Common Stock over a period of two years. Any and all share repurchase transactions are subject to market condition and applicable legal requirements. \n\nDuring the *three* and *nine* months ended *Mar 31, 2026,*the Company repurchased 2,593 shares of Common Stock for an aggregate purchase price of $12. As of *March 31, 2026,*$988 remained available under the repurchase authorization.\n\n \n\n \n\n**25.** **SUBSEQUENT EVENTS**\n\n \n\n*Registered Direct Offering*\n\n \n\nOn *April 24, 2026,*the Company entered into a securities purchase agreement with certain purchasers, pursuant to which the Company agreed to sell an aggregate of 1,052,632 shares of its Common Stock in a registered direct offering at a purchase price of *$9.50* per share. The offering closed on *April 27, 2026.*The Company received aggregate gross proceeds of approximately $10.0 million from the offering, before deducting placement agent commissions and other offering-related expenses. The Company intends to use the net proceeds for working capital and general corporate purposes. The offering was conducted pursuant to the Company’s effective shelf registration statement on Form S-*3* (Registration *No.* *333*-*291219*), including a base prospectus dated *December 16, 2025*and a prospectus supplement dated *April 24, 2026.*\n\n \n\n*Lease Agreement*\n\n \n\nOn *April 28, 2026,*the Company, through its subsidiary Trio-Tech Malaysia, entered into a lease agreement (the “Lease”) with Skygate Technology (M) SDN. BHD. (the “Landlord”), effective as of *June 1, 2026,*pursuant to which Trio-Tech Malaysia will lease approximately 104,000 square feet of space located at *2481,* Tingkat Perusahaan *4,* Kawasan Perusahaan Perai, *13600* Perai, Pulau Pinang (the “Premises”). The term of the Lease will commence on *June 1, 2026*and will expire on *May 30, 2028 (*the “Expiration Date”). The Company has the option to extend the Lease for *one* additional *one*-year term, subject to the terms therein. The monthly base rent due under the Lease shall initially be approximately $115,000 per month. The Landlord has the right to terminate the Lease upon customary events of default. The Company is also required to pay a security deposit in the amount of approximately $539,000 which will be refunded without interest to the Company by the Landlord in accordance with the terms and conditions of the Lease, unless Trio-Tech Malaysia vacates the Premises prior to the Expiration Date. The Company shall also pay the Malaysian Sales and Service Tax imposed in connection with this Agreement to the appropriate authority.\n\n \n\n \n\n \n\n- 28 -\n\n[Table of Contents](#toc)"}