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Assets and Liabilities Held for Sale and Discontinued Operations (Tables)
12 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Calculation of the Initial Gain on Sale of Controlling Interest in Subsidiary The following table shows calculation of the initial gain on Sale of HC LLC of $13.6 million:

(in thousands)

 

January 3, 2023

 

Net cash proceeds, after transaction costs and distributions to non-controlling interests

 

$

64,093

 

Fair value of shares of Quipt stock

 

 

2,000

 

Indemnity escrow receivable attributable to GEG and subsidiaries

 

 

320

 

Carrying value of non-controlling interest prior to sale (permanent equity)

 

 

2,977

 

Carrying value of non-controlling interest prior to sale (temporary equity)

 

 

2,977

 

Estimated future distributions of proceeds to non-controlling interests

 

 

(1,144

)

 

 

 

71,223

 

Less: Carrying value of net assets disposed

 

 

57,671

 

Gain on Sale of HC LLC

 

$

13,552

 

Reconciliation of Net Income from Discontinued Operations The following table provides a reconciliation of the Company’s net income from discontinued operations presented in the consolidated statements of operations:

 

 

For the twelve months ended June 30,

 

(in thousands)

 

2023

 

 

2022

 

Discontinued operations:

 

 

 

 

 

 

Durable medical equipment sales and services revenue

 

$

21,574

 

 

$

41,720

 

Durable medical equipment rental income

 

 

11,874

 

 

 

21,738

 

Net revenue

 

 

33,448

 

 

 

63,458

 

 

 

 

 

 

 

 

Cost of durable medical equipment sold and services

 

 

(8,654

)

 

 

(16,795

)

Cost of durable medical equipment rentals

 

 

(4,263

)

 

 

(7,149

)

Durable medical equipment other operating expenses

 

 

(17,519

)

 

 

(32,561

)

Depreciation and amortization

 

 

(783

)

 

 

(1,737

)

Transaction costs

 

 

(2,462

)

 

 

(582

)

Interest expense

 

 

(46

)

 

 

(240

)

Loss on extinguishment of debt

 

 

(23

)

 

 

(190

)

Other (expense) income, net

 

 

(50

)

 

 

2

 

Gain on disposal of discontinued operations

 

 

13,264

 

 

 

-

 

Income before income taxes from discontinued operations

 

 

12,912

 

 

 

4,206

 

Income tax benefit

 

 

289

 

 

 

62

 

Net income from discontinued operations

 

$

13,201

 

 

$

4,268

 

 

Reconciliation of Assets and Liabilities Held-for-Sale

The following table provides a reconciliation of the assets and liabilities held for sale presented in the consolidated balance sheet as of June 30, 2022:

(in thousands)

 

June 30, 2022

 

Cash and cash equivalents

 

$

1,314

 

Accounts receivable

 

 

5,867

 

Inventories

 

 

898

 

Prepaid and other current assets

 

 

385

 

Current assets held for sale

 

$

8,464

 

 

 

 

 

Property and equipment, net

 

$

521

 

Equipment held for rental, net

 

 

7,504

 

Identifiable intangible assets, net

 

 

5,921

 

Goodwill

 

 

52,463

 

Right-of-use assets

 

 

2,989

 

Other assets

 

 

163

 

Non-current assets held for sale

 

$

69,561

 

 

 

 

 

Accounts payable

 

$

6,030

 

Accrued expenses and other current liabilities

 

 

3,544

 

Deferred revenue

 

 

1,218

 

Current portion of lease liabilities

 

 

1,218

 

Current portion of equipment financing debt

 

 

2,993

 

Current liabilities held for sale

 

$

15,003

 

 

 

 

 

Lease liabilities, net of current portion

 

$

1,903

 

Redeemable preferred stock of subsidiaries

 

 

648

 

Non-current liabilities held for sale

 

$

2,551