Segment Information (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of Results of Operations by Segment

The following tables summarize the results of operations by segment.


	For the year ended June 30, 2022
(in thousands)	Durable Medical Equipment			Investment Management(1)			General Corporate(1)			Intercompany Eliminations(2)			Consolidated Total
Revenue:
Total revenue	$	63,458		$	4,516		$	876		$	(876	)	$	67,974
Operating costs and expenses:
Cost of durable medical equipment sold and services		(16,795	)		-			-			-			(16,795	)
Cost of durable medical equipment rentals		(7,149	)		-			-			-			(7,149	)
Depreciation and amortization		(1,737	)		(523	)		(1	)		-			(2,261	)
Non-cash compensation(3)		-			(1,872	)		(1,339	)		-			(3,211	)
Transaction costs(4)		(582	)		-			(499	)		-			(1,081	)
Other selling, general and administrative		(32,987	)		(4,879	)		(4,594	)		876			(41,584	)
Total operating expenses		(59,250	)		(7,274	)		(6,433	)		876			(72,081	)
Other income (expense):
Interest expense		(4,987	)		(161	)		(5,384	)		4,746			(5,786	)
Other income (expense)		(3,066	)		(5,633	)		8,322			(4,746	)		(5,123	)
Total other income (expense), net		(8,053	)		(5,794	)		2,938			-			(10,909	)
Total pre-tax income (loss) from continuing operations	$	(3,845	)	$	(8,552	)	$	(2,619	)	$	-		$	(15,016	)


	For the year ended June 30, 2021
(in thousands)	Durable Medical Equipment			Investment Management(1)			General Corporate(1)			Intercompany Eliminations(2)			Consolidated Total
Revenue:
Total revenue	$	57,643		$	3,210		$	579		$	(579	)	$	60,853
Operating costs and expenses:
Cost of durable medical equipment sold and services		(16,881	)		-			-			-			(16,881	)
Cost of durable medical equipment rentals		(6,950	)		-			-			-			(6,950	)
Depreciation and amortization		(1,909	)		(473	)		(1	)		-			(2,383	)
Non-cash compensation(3)		-			(757	)		(998	)		-			(1,755	)
Transaction costs(4)		(299	)		-			(618	)		-			(917	)
Other selling, general and administrative		(28,969	)		(2,810	)		(4,504	)		579			(35,704	)
Total operating expenses		(55,008	)		(4,040	)		(6,121	)		579			(64,590	)
Other income (expense):
Interest expense		(3,950	)		(101	)		(3,252	)		2,354			(4,949	)
Other income (expense)		(1,174	)		3,654			1,716			(2,354	)		1,842
Total other income (expense), net		(5,124	)		3,553			(1,536	)		-			(3,107	)
Total pre-tax income (loss) from continuing operations	$	(2,489	)	$	2,723		$	(7,078	)	$	-		$	(6,844	)

(1)

Previously reported non-operating activity including dividend income and unrealized gains/losses related to managed investments has been reclassified from General Corporate to Investment Management to conform with current segment organization.

(2)

The Company’s wholly-owned subsidiary, DME Manager, provides advisory services to HC LLC (formerly to DME, Inc) and receives consulting fees for those services. DME Manager is considered part of the general corporate operations while HC LLC is part of the durable medical equipment segment. The corresponding expense to HC LLC and revenue to DME Manager are eliminated in consolidation. Beginning December 29, 2020, DME Manager also provides advisory services to Forest and receives a consulting fee from Forest for those services. Both DME Manager and Forest are part of general corporate operations, and the corresponding revenue and expense are eliminated in consolidation. Additionally, Forest owns Series A-1 Preferred Stock and Series A-2 Preferred Stock of HC LLC. Forest is part of general corporate operations while HC LLC is part of the durable medical equipment segment. The corresponding interest expense to HC LLC and interest income to Forest are eliminated in consolidation.

(3)

Non-cash compensation includes stock-based compensation and compensation in the form of stock in portfolio companies held by the Company. Non-cash compensation attributable to the investment management segment is included in investment management expenses in the consolidated statements of operations. Non-cash compensation attributable to the general corporate segment is included in selling, general and administrative expense in the consolidated statements of operations.

(4)

Transaction costs, which consist of legal and other professional services, are included in selling, general and administrative expense in the consolidated statements of operations.

Schedule of Assets by Segment

The following tables summarize assets by segments:


	As of June 30, 2022
(in thousands)	Durable Medical Equipment		Investment Management(1)		General Corporate(1)		Total
Fixed assets, net	$	8,025	$	17	$	-	$	8,042
Identifiable intangible assets, net		5,921		13,250		-		19,171
Goodwill		52,463		-		-		52,463
Other assets		11,616		54,520		22,275		88,411
Total	$	78,025	$	67,787	$	22,275	$	168,087

	As of June 30, 2021
(in thousands)	Durable Medical Equipment		Investment Management(1)		General Corporate(1)		Total
Fixed assets, net	$	8,349	$	21	$	2	$	8,372
Identifiable intangible assets, net		7,104		1,824		-		8,928
Goodwill		50,536		-		-		50,536
Other assets		21,150		66,907		5,976		94,033
Total	$	87,139	$	68,752	$	5,978	$	161,869

(1)

Managed investment balances have been reclassified from General Corporate to Investment Management to conform with current segment organization.