DISCONTINUED OPERATIONS

9 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS:

On June 30, 2022, the Company sold its Opensalon® Pro (OSP) solution to Soham Inc. The Company received $13.0 million in proceeds in June 2022 and in the nine months ended March 31, 2023, received an additional $5.0 million in proceeds, of which $0.5 million were received in the third quarter, offset by a $0.5 million transaction fee. As a result of the sale, the Company classified the OSP business as discontinued operations in the financial statements for all periods presented. No income taxes have been allocated to discontinued operations based on the methodology required by accounting for income taxes guidance.

The following summarizes the results of discontinued operations for the periods presented:


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022

	(Dollars in thousands)

Discontinued operations:
OSP fees	$	—	$	940	$	(226)	$	2,863
Cost of product sales to franchisees	—		(145)		—		(910)
General and administrative	—		(726)		(27)		(2,633)
Rent	—		(46)		(341)		(148)
Depreciation and amortization	—		(375)		—		(1,080)
Goodwill impairment	—		(2,880)		—		(2,880)
Interest expense	—		(179)		—		(537)
Gain from sale of OSP	518		—		4,552		—


Income (loss) from OSP discontinued operations, net	$	518	$	(3,411)	$	3,958	$	(5,325)