Discontinued Operations

9 Months Ended

Mar. 31, 2022

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

4. Discontinued Operations

On June 23, 2021, the Company’s majority-owned indirect subsidiary FM Acquisition, entered into an agreement with Monomoy Properties Fort Myers, LLC (Monomoy FM) to sell the Company’s real estate business to Monomoy FM. Pursuant to the terms of the Purchase Agreement, the proceeds of the sale were subsequently reinvested in newly issued membership interests of Monomoy Properties, LLC (Monomoy Properties), a privately-held fund comprised of a portfolio of net leased industrial real estate assets.

The sale of the real estate business, which has historically been disclosed as its own reportable segment, represents a strategic shift away from the direct ownership and operation of real estate properties. Accordingly, our historical financial information has been recast to present the activities of the real estate business within discontinued operations, and the assets and liabilities of the real estate business as assets and liabilities of discontinued operations. As a passive investor in Monomoy Properties and with a membership interest of approximately 5%, we have determined that we have no significant continuing involvement with the real estate business.

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

	For the three months ended March 31,		For the nine months ended March 31,
(in thousands)	2021		2021
Discontinued operations:
Real estate rental revenue	$	1,276	$	3,824
Real estate expenses		128		380
Depreciation and amortization		430		1,291
Interest expense		645		1,942
Net income from discontinued operations	$	73	$	211