Segments

12 Months Ended

Jun. 30, 2020

Segments

Segments

15.Segments

We operate in two segments: (i) “MCA Operations,” conducted primarily through LMCS, and (ii) "Real Estate Operations," conducted primarily through Recur.

Our President and Chief Operating Officer ("COO") is our chief operating decision maker (the “CODM”).  Our CODM uses revenue and operating income to evaluate the profitability of our operating segments; all other financial information is reviewed by the CODM on a consolidated basis.  Segment operating contribution reflects segment revenue, less operating expenses that are directly attributable to the operating segment, not including corporate and unallocated expenses.  All of our principal operations and assets are located in the United States.

Segment operating results are as follows (amounts in thousands):

	Fiscal Year Ended June 30,
	2020		2019
Segment revenue:
MCA advance income	$	3,240	$	1,694
Syndication fees		1,288		693
Interest on loans to MCA originators		887		117
Other MCA revenue		154		93
MCA operations revenues		5,569		2,597
Real estate operations revenues		304		859
Consolidated revenues		5,873		3,456
Segment operating expenses:
Selling, general and administrative		1,091		562
Impairment of goodwill and long-lived assets		1,395		—
Change in fair value of contingent consideration		(3,090)		730
Amortization of purchased intangibles		479		180
Provision for credit losses on advances		849		1,095
MCA operations		724		2,567
Real estate operations		—		—
Add:
Corporate expenses		6,640		3,646
Consolidated operating expenses		7,364		6,213
Segment operating income (loss):
MCA  operations		4,845		30
Real estate  operations		304		859
Add:
Corporate		(6,640)		(3,646)
Consolidated operating income (loss)	$	(1,491)	$	(2,757)

Segment assets as of June 30, 2020 and 2019 are as follows:

	June 30,		June 30,
	2020		2019
	(Amounts in thousands)
Segment Assets
MCA	$	19,287	$	18,277
Real estate		9,275		7,379
Add:
Corporate assets		48,065		47,190
Corporate intercompany loan to LMCS		(6,777)		(10,372)
Total consolidated assets	$	69,850	$	62,474