DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Note 17 - DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN

The Company’s Shanghai operation, as a component of the Testing segment, suffered continued operating losses for three consecutive fiscal years and the cash flow was minimal for those three years. 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 205-20, Presentation of Financial Statement Discontinued Operations, 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 disposed component (Shanghai subsidiary) and that the Company would have no significant continuing involvement in the operation of the discontinued component. In accordance with the restructuring plan, before moving out of Shanghai, the Company will be required to pay the outstanding balance of accounts payable of RMB 249, or approximately $51 based on the exchange rate as on September 30, 2011 published by the Monetary Authority of Singapore.

The Company incurred general and administrative expenses of approximately zero for the three months ended September 30, 2011, for winding down the operation in Shanghai. The Company anticipates that it may incur additional costs and expenses in winding down the business of the subsidiary through which the China facility was operating.

Under the provision of ASC Topic 830, Foreign Currency Matters, translation adjustments that result when a foreign entity’s financial statements are translated into a parent company’s or an investor’s reporting currency are separately reported in the parent company’s other comprehensive income.  Foreign currency translation adjustments that are accumulated in other comprehensive income are reclassified to income only when they are realized, if the investment in the foreign entity is sold or is substantially or completely liquidated.  The foreign currency translation adjustments on the balance sheet of the Shanghai, China subsidiary as of September 30, 2011 were insignificant.

Loss from discontinued operations was as follows:

		Three Months Ended
		Sept. 30,			Sept. 30,
		2011			2010
		(Unaudited)			(Unaudited)
REVENUE		$	-		$	-
COST OF SALES			-			-
GROSS LOSS	)		-			-
OPERATING EXPENSES
General and administrative			1			2
Total			1			2
LOSS FROM DISCONTINUED OPERATION	)		(1	)		(2)	)))
OTHER INCOME			(1	)		(2)
LOSS FROM DISCONTINUED OPERATIONS	)	$	(1	)	$	(2)

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