REVENUE RECOGNITION (Tables)

9 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of receivables, broker fees and deferred revenue

Information about receivables, broker fees and deferred revenue subject to the current revenue recognition guidance is as follows:

	March 31, 2023		June 30, 2022		Balance Sheet Classification
	(Dollars in thousands)
Receivables from contracts with customers, net	$	10,107	$	10,263	Receivables, net
Broker fees	13,218		15,592		Other assets
Deferred revenue:
Current
Gift card liability	$	1,865	$	2,037	Accrued expenses
Deferred franchise fees open salons	5,446		5,770		Accrued expenses
Total current deferred revenue	$	7,311	$	7,807
Non-current
Deferred franchise fees unopened salons	$	2,563	$	3,211	Other non-current liabilities
Deferred franchise fees open salons	22,518		26,827		Other non-current liabilities
Total non-current deferred revenue	$	25,081	$	30,038

Rollforward of allowance for doubtful accounts

The following table is a rollforward of the allowance for doubtful accounts for the periods indicated:

	Nine Months Ended March 31,
	2023		2022
	(Dollars in thousands)
Balance at beginning of period	$	6,559	$	7,774
Provision for doubtful accounts	545		(88)
Provision for franchisee rent (1)	15		847
Reclass of accrued rent (2)	74		396
Write-offs	(1,632)		(1,600)
Balance at end of period	$	5,561	$	7,329

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(1)The provision for franchisee rent is recognized as rent in the unaudited Condensed Consolidated Statement of Operations.

(2)The reclass of accrued rent represents franchisee rent obligations guaranteed by the Company that were unbilled and deemed unrecoverable as of June 30, 2021. The amounts billed in fiscal years 2023 and 2022 and the related accrual were reclassified to allowance for doubtful accounts.

Broker fees

The following table is a rollforward of the broker fee balance for the periods indicated:

	Nine Months Ended March 31,
	2023		2022
	(Dollars in thousands)
Balance at beginning of period	$	15,592	$	19,254
Additions	—		25
Amortization	(2,374)		(2,398)
Write-offs	—		(366)
Balance at end of period	$	13,218	$	16,515

Estimated revenue expected to be recognized

Estimated revenue expected to be recognized in the future related to deferred franchise fees for open salons as of March 31, 2023 is as follows (dollars in thousands):

Remainder of 2023	$	1,362
2024	5,390
2025	5,002
2026	4,536
2027	4,073
Thereafter	7,601
Total	$	27,964