DISCONTINUED OPERATIONS

6 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

3. DISCONTINUED OPERATIONS

On September 2, 2022, the Company sold its NauticStar business to certain affiliates of Iconic Marine Group, LLC ("Purchaser"). Pursuant to the terms of the purchase agreement, substantially all of the assets of NauticStar were sold, including, among other things, all of the issued and outstanding membership interests in its wholly-owned subsidiary NS Transport, LLC, all owned real property, equipment, inventory, intellectual property and accounts receivable, and the Purchaser assumed substantially all of the liabilities of NauticStar, including, among other things, product liability and warranty claims.

During the six months ended January 1, 2023, the Company recognized a $22.5 million loss on sale. The final settlement of the purchase price was subject to customary working capital adjustments that had been in arbitration, but were settled in October 2023 without a significant impact to the loss on sale previously recorded. The value of the assets and liabilities that were retained at the time of sale, which are primarily related to certain claims, are subject to change. Certain of these claims have been settled or are expected to settle for higher amounts than previously estimated, with the related activity being recorded as discontinued operations.

The following table summarizes the operating results of discontinued operations for the following periods:

	Six Months Ended
	December 31,			January 1,
	2023			2023
NET SALES	$	37		$	7,780
COST OF SALES		260			9,412
GROSS PROFIT (LOSS)		(223	)		(1,632	)
OPERATING EXPENSES:
Selling, general and administrative		1,132			2,522
Total operating expenses		1,132			2,522
OPERATING LOSS		(1,355	)		(4,154	)
Loss on sale of discontinued operations		157			(22,487	)
LOSS BEFORE INCOME TAX BENEFIT		(1,198	)		(26,641	)
INCOME TAX BENEFIT		276			5,774
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX	$	(922	)	$	(20,867	)

The operating results, and components thereof, of discontinued operations for the three months ended December 31, 2023 and January 1, 2023 were not significant.