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DISCONTINUED OPERATIONS
 12 Months Ended
Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS
On June 30, 2022, the Company sold its OSP software-as-a-service solution to Soham Inc. As a result of the sale, the Company classified the OSP business as discontinued operations in the financial statements for all periods presented. The Company received $13.0 million in proceeds in June 2022 and received an additional $5.0 million in proceeds in fiscal year 2023, offset by a $0.5 million transaction fee. In fiscal year 2024, the Company received $2.0 million of proceeds that had been previously held back for general indemnity provisions. In fiscal year 2025, the Company received additional proceeds of $8.5 million related to the number of salons migrating to Soham's Zenoti product. Cash (used in) provided by investing activities for the years ended June 30, 2025, 2024, and 2023, includes $8.5 million, $2.0 million, and $4.5 million respectively, of cash from discontinued operations.
The following summarizes the results of discontinued operations for the periods presented:
Fiscal Years
202520242023
(Dollars in thousands)
Discontinued operations:
Fees$— $— $(226)
General and administrative— — (27)
Rent— — (351)
Gain from sale of OSP8,396 1,993 4,562 
Income from discontinued operations, before taxes 8,396 1,993 3,958 
Income tax expense from discontinued operations (1)(1,892)— — 
Income from discontinued operations, net of tax$6,504 $1,993 $3,958 
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(1)     Income taxes have been allocated to continuing and discontinued operations based on the methodology required by accounting for income taxes guidance. The tax expense in fiscal year 2025 is due to a GAAP and tax difference in timing of the gain recognition and does not reflect a current or cash tax liability. There was no tax impact in fiscal years 2024, or 2023, due to a valuation allowance.
The following summarizes the gain from the sale of OSP for the periods presented:
Fiscal Years
202520242023
(Dollars in thousands)
Cash proceeds$8,463 $2,000 $5,000 
Software write-off (1)— — (64)
Hardware write-down (2)— — (367)
Other, net, including professional fees(67)(7)(7)
Gain from sale of OSP$8,396 $1,993 $4,562 
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(1)Write-off of internally developed capitalized software.
(2)Prior to the sale, hardware used to run OSP was sold to franchisees. As a result of the sale, the Company wrote down the value of the hardware to its net realizable value and the charge is included in the gain on the sale of OSP.
The Company exited its office space in Fremont, California, but was liable for lease payments through September 2024. The related liability is included in accrued expenses as of June 30, 2024, in the Consolidated Balance Sheets.