DISCONTINUED OPERATIONS

6 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS:

On June 30, 2022, the Company sold its Opensalon® Pro (OSP) solution to Soham Inc. The Company received $13.0 million in proceeds in June 2022 and in the six months ended December 31, 2022, received an additional $4.5 million in proceeds, net of a $0.5 million transaction fee. As a result of the sale, the Company classified the OSP business as discontinued operations in the financial statements for all periods presented. No income taxes have been allocated to discontinued operations based on the methodology required by accounting for income taxes guidance.

The following summarizes the results of discontinued operations for the periods presented:


	Three Months Ended December 31,				Six Months Ended December 31,
	2022		2021		2022		2021

	(Dollars in thousands)

Discontinued operations:
OSP fees	$	—	$	986	$	(226)	$	1,924
Cost of product sales to franchisees	—		(302)		—		(766)
General and administrative	—		(902)		(27)		(1,907)
Rent	26		(46)		(341)		(102)
Depreciation and amortization	—		(375)		—		(705)

Interest expense	—		(179)		—		(358)
Gain from sale of OSP	108		—		4,034		—


Gain (loss) from OSP discontinued operations, net	$	134	$	(818)	$	3,440	$	(1,914)