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 for $4.6 million in cash. The real estate business consists of majority-interests in two Class A office buildings totaling 257,000 square feet situated on 17 acres of land in Fort Myers, Florida. The Company acquired the real estate business in March 2018 for $2.7 million. After transaction costs, the gain on the sale was $0.3 million.

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 Fund), 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 Fund and with a membership interest of approximately 5%, we determined that we had no significant continuing involvement with the real estate business upon disposition.

The following table provides a reconciliation of the Company’s net income from discontinued operations presented in the consolidated statements of operations for the year ended June 30, 2021:


(in thousands)	For the year ended June 30, 2021
Discontinued operations:
Net revenue	$	5,005
Real estate expenses		(505	)
Depreciation and amortization		(1,689	)
Operating income from discontinued operations		2,811
Interest expense		(2,536	)
Gain on sale of real estate business		263
Pretax income from discontinued operations		538
Income tax benefit		111
Net income from discontinued operations	$	649

There was no activity from discontinued operations in the consolidated statement of operations for the year ended June 30, 2022.