SEGMENT INFORMATION (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of summarized financial information of reportable operating segments

Financial information concerning the Company's reportable operating segments is shown in the following table:


	For the Year Ended June 30, 2022
	Franchise		Company - owned		Consolidated (1)

	(Dollars in thousands)
Revenues:
Royalties	$	65,753	$	—	$	65,753
Fees	11,587		—		11,587
Product sales to franchisees	15,072		—		15,072
Advertising fund contributions	32,573		—		32,573
Franchise rental income	130,777		—		130,777
Company-owned salon revenue	—		20,205		20,205
Total revenue	255,762		20,205		275,967

Operating expenses:
Cost of product sales to franchisees	17,391		—		17,391
Inventory reserve (1)	—		—		7,655
General and administrative	62,816		2,458		65,274
Rent	5,498		3,859		9,357
Advertising fund expense	32,573		—		32,573
Franchise rent expense	130,777		—		130,777
Company-owned salon expense	—		21,952		21,952
Depreciation and amortization	4,913		1,311		6,224
Long-lived asset impairment	450		92		542

Goodwill impairment	13,120		—		13,120
Total operating expenses	267,538		29,672		304,865
Operating loss	$	(11,776)	$	(9,467)	$	(28,898)

_______________________________________________________________________________

(1)This charge, primarily related to reserving for personal protective equipment acquired as a result of the COVID-19 pandemic, relates to the wind down of our distribution centers and is reviewed separately from the segment results by the CODM. Consolidated results will not cross foot as the inventory reserve is not part of the Company's segments.


	For the Year Ended June 30, 2021
	Franchise		Company - owned		Consolidated

	(Dollars in thousands)
Revenues:
Royalties	$	52,357	$	—	$	52,357
Fees	10,215		—		10,215
Product sales to franchisees	56,699		—		56,699
Advertising fund contributions	22,023		—		22,023
Franchise rental income	127,392		—		127,392
Company-owned salon revenue	—		142,965		142,965
Total revenue	268,686		142,965		411,651

Operating expenses:
Cost of product sales to franchisees	43,756		—		43,756

General and administrative	87,493		8,934		96,427
Rent	4,922		35,832		40,754
Advertising fund expense	22,023		—		22,023
Franchise rent expense	127,392		—		127,392
Company-owned salon expense	—		141,204		141,204
Depreciation and amortization	7,019		14,730		21,749
Long-lived asset impairment	726		12,297		13,023


Total operating expenses	293,331		212,997		506,328
Operating loss	$	(24,645)	$	(70,032)	$	(94,677)

Schedule of total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate

Total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate were as follows:


	June 30,
	2022				2021
	Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net

	(Dollars in thousands)
U.S.	$	249,285	$	12,808	$	380,506	$	16,807
Other countries	26,682		27		31,145		99
Total	$	275,967	$	12,835	$	411,651	$	16,906