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24. DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN | 12 Months Ended
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Jun. 30, 2017
Notes to Financial Statements |
DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN | The Company’s Indonesia operation and the Indonesia operation’s immediate holding company, which comprise the fabrication services segment, suffered continued operating losses from fiscal year 2010 to 2014, and the cash flow was minimal from fiscal year 2009 to 2014. The Company established a restructuring plan to close the fabrication services operation, and in accordance with ASC Topic 205, Presentation of Financial Statement Discontinued Operations (“ASC Topic 205”), from fiscal year 2015 onwards, the Company presented the operation results from fabrication services as a discontinued operation as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component. In accordance with the restructuring plan, the Company’s Indonesia operation is negotiating with its suppliers to settle the outstanding balance of accounts payable of $56 and has no collection for accounts receivable. The Company’s fabrication operation in Batam, Indonesia is in the process of winding up the operations. The Company anticipates that it may incur costs and expenses when the winding up of the subsidiary in Indonesia takes place. In January 2010, the Company established a restructuring plan to close the Testing operation in Shanghai, China. Based on the restructuring plan and in accordance with ASC Topic 205, the Company presented the operation results from Shanghai as a discontinued operation as the Company believed that no continued cash flow would be generated by the discontinued component (Shanghai subsidiary) and that the Company would have no significant continuing involvement in the operations of the discontinued component. The Shanghai operation has completed its winding up process as of March 30, 2017. The discontinued operations in Shanghai and in Indonesia incurred general and administrative expenses of $1 and $7 for the year ended June 30, 2017 and 2016. Income / (Loss) from discontinued operations was as follows:
|  | For the Year Ended June 30, |
|  | 2017 |  |  | 2016 |
Revenue |  | $ | - |  |  | $ | - |
Cost of sales |  |  | - |  |  |  | - |
Gross loss |  |  | - |  |  |  | - |
Operating expenses |  |  |  |  |  |  |  |
General and administrative |  |  | 1 |  |  |  | 7 |
Selling |  |  | - |  |  |  | - |
Impairment |  |  | - |  |  |  | - |
Total |  |  | 1 |  |  |  | 7 |
Loss from discontinued operation |  |  | (1 | ) |  |  | (7 | )
Other income / (charges) |  |  | (4 | ) |  |  | 3 |
Net income / (loss) from discontinued operation |  | $ | (5 | ) |  | $ | (4 | )
The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of this discontinued operation is immaterial.

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