Segment Information (Tables)

9 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Results of Operations by Segment

The following tables illustrate results of operations by segment:

	For the three months ended March 31, 2022
(in thousands)	Durable Medical Equipment			Investment Management			General Corporate			Intercompany Eliminations(1)			Consolidated Total
Revenue:
Total revenue	$	15,634		$	988		$	230		$	(230	)	$	16,622
Operating costs and expenses:
Cost of durable medical equipment sold and services		(4,362	)		-			-			-			(4,362	)
Cost of durable medical equipment rentals		(1,708	)		-			-			-			(1,708	)
Depreciation and amortization		(428	)		(89	)		-			-			(517	)
Non-cash compensation(3)		-			(262	)		(316	)		-			(578	)
Transaction costs(4)		-			-			(92	)		-			(92	)
Other selling, general and administrative		(8,875	)		(1,372	)		(1,287	)		230			(11,304	)
Total operating expenses		(15,373	)		(1,723	)		(1,695	)		230			(18,561	)
Other income (expense):
Interest expense		(1,269	)		(24	)		(1,263	)		1,202			(1,354	)
Other income (expense)		(5,612	)		(3,222	)		7,174			(1,202	)		(2,862	)
Total other income (expense), net		(6,881	)		(3,246	)		5,911			-			(4,216	)
Total pre-tax income (loss)	$	(6,620	)	$	(3,981	)	$	4,446		$	-		$	(6,155	)

	For the three months ended March 31, 2021
(in thousands)	Durable Medical Equipment			Investment Management			General Corporate			Intercompany Eliminations(1)			Consolidated Total
Revenue:
Total revenue	$	13,117		$	728		$	162		$	(162	)	$	13,845
Operating costs and expenses:
Cost of durable medical equipment sold and services		(3,806	)		-			-			-			(3,806	)
Cost of durable medical equipment rentals		(1,657	)		-			-			-			(1,657	)
Depreciation and amortization		(508	)		(109	)		(1	)		-			(618	)
Non-cash compensation(3)		-			(181	)		(435	)		-			(616	)
Transaction costs(4)		(107	)		-			(155	)		-			(262	)
Other general and administrative		(6,023	)		(742	)		(1,380	)		162			(7,983	)
Total operating expenses		(12,101	)		(1,032	)		(1,971	)		162			(14,942	)
Other income (expense):
Interest expense		(1,280	)		(25	)		(1,287	)		1,231			(1,361	)
Other income (expense)		(4,795	)		(403	)		6,026			(1,231	)		(403	)
Total other income (expense), net		(6,075	)		(428	)		4,739			-			(1,764	)
Total pre-tax income (loss)	$	(5,059	)	$	(732	)	$	2,930		$	-		$	(2,861	)

	For the nine months ended March 31, 2022
(in thousands)	Durable Medical Equipment			Investment Management(1)			General Corporate(1)			Intercompany Eliminations(2)			Consolidated Total
Revenue:
Total revenue	$	46,917		$	2,992		$	645		$	(645	)	$	49,909
Operating costs and expenses:
Cost of durable medical equipment sold and services		(12,731	)		-			-			-			(12,731	)
Cost of durable medical equipment rentals		(5,292	)		-			-			-			(5,292	)
Depreciation and amortization		(1,324	)		(306	)		(1	)		-			(1,631	)
Non-cash compensation(3)		-			(1,604	)		(968	)		-			(2,572	)
Transaction costs(4)		(224	)		-			(311	)		-			(535	)
Other selling, general and administrative		(23,634	)		(3,283	)		(3,679	)		645			(29,951	)
Total operating expenses		(43,205	)		(5,193	)		(4,959	)		645			(52,712	)
Other income (expense):
Interest expense		(3,845	)		(72	)		(3,801	)		3,640			(4,078	)
Other income (expense)		(3,468	)		(4,479	)		8,194			(3,640	)		(3,393	)
Total other income (expense), net		(7,313	)		(4,551	)		4,393			-			(7,471	)
Total pre-tax income (loss)	$	(3,601	)	$	(6,752	)	$	79		$	-		$	(10,274	)

	For the nine months ended March 31, 2021
(in thousands)	Durable Medical Equipment			Investment Management(1)			General Corporate(1)			Intercompany Eliminations(2)			Consolidated Total
Revenue:
Total revenue	$	42,270		$	2,261		$	298		$	(298	)	$	44,531
Operating costs and expenses:
Cost of durable medical equipment sold and services		(12,716	)		-			-			-			(12,716	)
Cost of durable medical equipment rentals		(5,193	)		-			-			-			(5,193	)
Depreciation and amortization		(1,433	)		(364	)		(2	)		-			(1,799	)
Non-cash compensation(3)		-			(572	)		(758	)		-			(1,330	)
Transaction costs(4)		(194	)		-			(416	)		-			(610	)
Other selling, general and administrative		(21,822	)		(2,001	)		(3,524	)		298			(27,049	)
Total operating expenses		(41,358	)		(2,937	)		(4,700	)		298			(48,697	)
Other income (expense):
Interest expense		(2,676	)		(76	)		(2,086	)		1,231			(3,607	)
Other income (expense)		(6,631	)		2,166			6,035			(1,231	)		339
Total other income (expense), net		(9,307	)		2,090			3,949			-			(3,268	)
Total pre-tax income (loss)	$	(8,395	)	$	1,414		$	(453	)	$	-		$	(7,434	)

(1)Previously reported non-operating activity including dividend income and unrealized gains/losses related to managed investments has been reclassified from General Corporate to Investment Management to conform with current segment organization.

(2)The Company’s wholly-owned subsidiary, DME Manager, provides advisory services to HC LLC (formerly to DME, Inc.) and receives consulting fees from for those services. DME Manager is part of general corporate operations while HC LLC is part of the durable medical equipment segment. The corresponding expense to HC LLC and revenue to DME Manager are eliminated in consolidation. Beginning December 29, 2020, DME Manager also provides advisory services to Forest and receives a consulting fee from Forest for those services. Both DME Manager and Forest are part of general corporate operations, and the corresponding revenue and expense are eliminated in consolidation. Additionally, Forest owns Series A-1 Preferred Stock and Series A-2 Preferred Stock of HC LLC. Forest is part of general corporate operations while HC LLC is part of the durable medical equipment segment. The corresponding interest expense to HC LLC and interest income to Forest are eliminated in consolidation.

(3)Non-cash compensation includes stock-based compensation and compensation in the form of stock in portfolio companies held by the Company. Non-cash compensation attributable to the investment management segment is included in investment management expenses in the condensed consolidated statements of operations. Non-cash compensation attributable to the general corporate segment is included in selling, general and administrative expense in the condensed consolidated statements of operations.

(4)Transaction costs, which consist of legal and other professional services incurred in connection with consummated and unconsummated transactions, are included in selling, general and administrative expense in the condensed consolidated statements of operations.

Schedule of Assets by Segment

The following tables illustrate assets by segment:

	As of March 31, 2022
(in thousands)	Durable Medical Equipment		Investment Management		General Corporate		Total
Fixed assets, net	$	7,403	$	19	$	1	$	7,423
Identifiable intangible assets, net		6,209		1,524		-		7,733
Goodwill		52,463		-		-		52,463
Other assets		17,171		30,294		22,381		69,846
Total	$	83,246	$	31,837	$	22,382	$	137,465
	As of June 30, 2021
(in thousands)	Durable Medical Equipment		Investment Management		General Corporate		Total
Fixed assets, net	$	8,349	$	21	$	2	$	8,372
Identifiable intangible assets, net		7,104		1,824		-		8,928
Goodwill		50,536		-		-		50,536
Other assets		21,150		66,907		5,976		94,033
Total	$	87,139	$	68,752	$	5,978	$	161,869