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DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN

3 Months Ended

Sep. 30, 2017

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 $57 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. Management has assessed the costs and expenses to be immaterial, thus no accrual has been made.

The discontinued operations in Indonesia did not incur general and administrative expenses for the three months ended September 30, 2017, and did not incur general and administrative expenses for the same period in the last fiscal year. The Company anticipates that it may incur additional costs and expenses when the winding up of the business of the subsidiary through which the facilities operated takes place. Management has assessed the costs and expenses to be immaterial, thus no accrual has been made.

Loss / income from discontinued operations for the three months ended September 30, 2017 and 2016 were as follows:

	Three Months Ended September 30,
	2017 (Unaudited)			2016 (Unaudited)
Revenue	$	-		$	-
Cost of sales		-			-
Gross margin		-			-
Operating expenses
General and administrative		-			-
Selling		-			-
Impairment loss of property, plant and equipment		-			-
Total		-			-
Income from discontinued operation		-			-
Other (charges) / income		(3	)		1
Net income / (loss) from discontinued operation		2			(1	)
Less: net loss attributable to the non-controlling interest		-			-
Loss from discontinued operation, net of tax	$	(1	)		-

The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of this discontinued operation was immaterial.