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Note 18 - Redeemable Noncontrolling Interest
9 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Noncontrolling Interest Disclosure [Text Block]

18)      Redeemable Noncontrolling Interest


The redeemable noncontrolling interest represents the minority shareholder's interest in NPPL, which was acquired as part of the Amran/Narayan Group Acquisition in the second quarter of fiscal year 2025.  The Company entered into a Shareholder Agreement that provides the Company with the right to purchase, and the noncontrolling interest holders with the right to sell, their remaining minority interest at a contractually defined redemption value. As the redemptions are contingently redeemable at the option of the noncontrolling interest shareholders, the Company classifies the redeemable noncontrolling interest in the mezzanine equity section on the consolidated balance sheets, which is presented above the equity section and below liabilities. The repurchase price of the redeemable noncontrolling interests is the greater of the share price paid for similar shares as part of the Amran/Narayan Acquisition or 12 times twelve months' trailing EBITDA.

 

In accounting for the subsequent measurement of the redeemable noncontrolling interest measurement adjustments pursuant to ASC 480, Distinguishing Liabilities from Equity, the Company has made accounting policy elections to record any such applicable changes on the immediate recognition of the full adjustment required to report the redeemable noncontrolling interest at its redemption value, while also electing to record such adjustments under the income method, with a corresponding offset recorded to the Net income attributable to noncontrolling interests in consolidated subsidiaries within the consolidated statement of operations for the period in which such measurement adjustment becomes required.  Given the pending approval of the RBI for the second closing and share swap, the noncontrolling interest is not probable of redemption as of March 31, 2025, and accordingly no measurement adjustments have been recorded for the three and nine months ended March 31, 2025.