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Segment Information (Tables) | 6 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Schedule of Results of Operations by Segment | The following tables illustrate results of operations by segment:
|  | For the three months ended December 31, 2020 |
(in thousands) |  | Durable Medical Equipment |  |  | Investment Management |  |  | Real Estate |  |  | General Corporate |  |  | Intercompany Eliminations(1) |  |  | Consolidated Total |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue |  | $ | 14,543 |  |  | $ | 760 |  |  | $ | 1,276 |  |  | $ | 45 |  |  | $ | (45 | ) |  | $ | 16,579 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of durable medical equipment sold and services |  |  | (4,703 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (4,703 | )
Cost of durable medical equipment rentals |  |  | (1,621 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1,621 | )
Depreciation and amortization |  |  | (462 | ) |  |  | (127 | ) |  |  | (431 | ) |  |  | (1 | ) |  |  | - |  |  |  | (1,021 | )
Stock-based compensation(2) |  |  | - |  |  |  | (197 | ) |  |  | - |  |  |  | (88 | ) |  |  | - |  |  |  | (285 | )
Transaction costs(3) |  |  | (87 | ) |  |  | - |  |  |  | - |  |  |  | (229 | ) |  |  | - |  |  |  | (316 | )
Other selling, general and administrative |  |  | (8,028 | ) |  |  | (719 | ) |  |  | (127 | ) |  |  | (1,006 | ) |  |  | 45 |  |  |  | (9,835 | )
Total operating expenses |  |  | (14,901 | ) |  |  | (1,043 | ) |  |  | (558 | ) |  |  | (1,324 | ) |  |  | 45 |  |  |  | (17,781 | )
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | (687 | ) |  |  | (25 | ) |  |  | (647 | ) |  |  | (552 | ) |  |  | - |  |  |  | (1,911 | )
Other income (expense) |  |  | (1,833 | ) |  |  | - |  |  |  | - |  |  |  | 3,950 |  |  |  | - |  |  |  | 2,117 |
Total other expense, net |  |  | (2,520 | ) |  |  | (25 | ) |  |  | (647 | ) |  |  | 3,398 |  |  |  | - |  |  |  | 206 |
Total pre-tax income (loss) |  | $ | (2,878 | ) |  | $ | (308 | ) |  | $ | 71 |  |  | $ | 2,119 |  |  | $ | - |  |  | $ | (996 | )
|  | For the three months ended December 31, 2019 |
(in thousands) |  | Durable Medical Equipment |  |  | Investment Management |  |  | Real Estate |  |  | General Corporate |  |  | Intercompany Eliminations(1) |  |  | Consolidated Total |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue |  | $ | 14,391 |  |  | $ | 889 |  |  | $ | 1,271 |  |  | $ | 57 |  |  | $ | (57 | ) |  | $ | 16,551 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of durable medical equipment sold and services |  |  | (3,689 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (3,689 | )
Cost of durable medical equipment rentals |  |  | (2,185 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (2,185 | )
Depreciation and amortization |  |  | (520 | ) |  |  | (179 | ) |  |  | (430 | ) |  |  | (1 | ) |  |  | - |  |  |  | (1,130 | )
Stock-based compensation(2) |  |  | - |  |  |  | (98 | ) |  |  | - |  |  |  | (110 | ) |  |  | - |  |  |  | (208 | )
Transaction costs(3) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (486 | ) |  |  | - |  |  |  | (486 | )
Other general and administrative |  |  | (7,736 | ) |  |  | (566 | ) |  |  | (126 | ) |  |  | (752 | ) |  |  | 57 |  |  |  | (9,123 | )
Total operating expenses |  |  | (14,130 | ) |  |  | (843 | ) |  |  | (556 | ) |  |  | (1,349 | ) |  |  | 57 |  |  |  | (16,821 | )
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | (937 | ) |  |  | (41 | ) |  |  | (655 | ) |  |  | - |  |  |  | - |  |  |  | (1,633 | )
Other income (expense) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (223 | ) |  |  | - |  |  |  | (223 | )
Total other expense, net |  |  | (937 | ) |  |  | (41 | ) |  |  | (655 | ) |  |  | (223 | ) |  |  | - |  |  |  | (1,856 | )
Total pre-tax income (loss) |  | $ | (676 | ) |  | $ | 5 |  |  | $ | 60 |  |  | $ | (1,515 | ) |  | $ | - |  |  | $ | (2,126 | )
|  | For the six months ended December 31, 2020 |
(in thousands) |  | Durable Medical Equipment |  |  | Investment Management |  |  | Real Estate |  |  | General Corporate |  |  | Intercompany Eliminations(1) |  |  | Consolidated Total |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue |  | $ | 29,153 |  |  | $ | 1,533 |  |  | $ | 2,548 |  |  | $ | 136 |  |  | $ | (136 | ) |  | $ | 33,234 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of durable medical equipment sold and services |  |  | (8,910 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (8,910 | )
Cost of durable medical equipment rentals |  |  | (3,536 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (3,536 | )
Depreciation and amortization |  |  | (925 | ) |  |  | (255 | ) |  |  | (861 | ) |  |  | (1 | ) |  |  | - |  |  |  | (2,042 | )
Stock-based compensation(2) |  |  | - |  |  |  | (391 | ) |  |  | - |  |  |  | (323 | ) |  |  | - |  |  |  | (714 | )
Transaction costs(3) |  |  | (87 | ) |  |  | - |  |  |  | - |  |  |  | (261 | ) |  |  | - |  |  |  | (348 | )
Other selling, general and administrative |  |  | (15,799 | ) |  |  | (1,251 | ) |  |  | (252 | ) |  |  | (2,152 | ) |  |  | 136 |  |  |  | (19,318 | )
Total operating expenses |  |  | (29,257 | ) |  |  | (1,897 | ) |  |  | (1,113 | ) |  |  | (2,737 | ) |  |  | 136 |  |  |  | (34,868 | )
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | (1,396 | ) |  |  | (51 | ) |  |  | (1,297 | ) |  |  | (1,124 | ) |  |  | - |  |  |  | (3,868 | )
Other income (expense) |  |  | (1,836 | ) |  |  | - |  |  |  | - |  |  |  | 2,578 |  |  |  | - |  |  |  | 742 |
Total other income (expense), net |  |  | (3,232 | ) |  |  | (51 | ) |  |  | (1,297 | ) |  |  | 1,454 |  |  |  | - |  |  |  | (3,126 | )
Total pre-tax income (loss) |  | $ | (3,336 | ) |  | $ | (415 | ) |  | $ | 138 |  |  | $ | (1,147 | ) |  | $ | - |  |  | $ | (4,760 | )
|  | For the six months ended December 31, 2019 |
(in thousands) |  | Durable Medical Equipment |  |  | Investment Management |  |  | Real Estate |  |  | General Corporate |  |  | Intercompany Eliminations(1) |  |  | Consolidated Total |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue |  | $ | 27,622 |  |  | $ | 1,756 |  |  | $ | 2,544 |  |  | $ | 80 |  |  | $ | (80 | ) |  | $ | 31,922 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of durable medical equipment sold and services |  |  | (7,152 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (7,152 | )
Cost of durable medical equipment rentals |  |  | (4,450 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (4,450 | )
Depreciation and amortization |  |  | (977 | ) |  |  | (358 | ) |  |  | (861 | ) |  |  | (1 | ) |  |  | - |  |  |  | (2,197 | )
Stock-based compensation(2) |  |  | - |  |  |  | (273 | ) |  |  | - |  |  |  | (228 | ) |  |  | - |  |  |  | (501 | )
Transaction costs(3) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (577 | ) |  |  | - |  |  |  | (577 | )
Other selling, general and administrative |  |  | (14,608 | ) |  |  | (1,082 | ) |  |  | (250 | ) |  |  | (2,329 | ) |  |  | 80 |  |  |  | (18,189 | )
Total operating expenses |  |  | (27,187 | ) |  |  | (1,713 | ) |  |  | (1,111 | ) |  |  | (3,135 | ) |  |  | 80 |  |  |  | (33,066 | )
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | (1,933 | ) |  |  | (83 | ) |  |  | (1,313 | ) |  |  | - |  |  |  | - |  |  |  | (3,329 | )
Other income (expense) |  |  | 3 |  |  |  | - |  |  |  | - |  |  |  | (692 | ) |  |  | - |  |  |  | (689 | )
Total other income (expense), net |  |  | (1,930 | ) |  |  | (83 | ) |  |  | (1,313 | ) |  |  | (692 | ) |  |  | - |  |  |  | (4,018 | )
Total pre-tax income (loss) |  | $ | (1,495 | ) |  | $ | (40 | ) |  | $ | 120 |  |  | $ | (3,747 | ) |  | $ | - |  |  | $ | (5,162 | )
(1) | The Company’s wholly-owned subsidiary, Great Elm DME Manager, LLC (DME Manager), provides advisory services to DME Inc. and receives consulting fee from DME Inc. for those services. DME Manager is part of general corporate operations while DME Inc. is part of the durable medical equipment segment. The corresponding expense to DME Inc. and revenue to DME Manager are eliminated in consolidation. Additionally, the Company’s majority-owned subsidiary, Forest, owns Series A-1 Preferred Stock and Series A-2 Preferred Stock of HC LLC. Forest is part of general corporate operations while HC LLC is part of the durable medical equipment segment. The corresponding interest expense to HC LLC and interest income to Forest are eliminated in consolidation.
(2) | Stock-based compensation attributable to the investment management segment is included in investment management expenses in the condensed consolidated statements of operations. Stock-based compensation attributable to the general corporate segment is included in selling, general and administrative expense in the condensed consolidated statements of operations.
(3) | Transaction costs, which consist of legal and other professional services incurred in connection with consummated and unconsummated transactions, are included in selling, general and administrative expense in the condensed consolidated statements of operations.
Schedule of Assets by Segment | The following tables illustrate assets by segment:
|  | As of December 31, 2020 |
(in thousands) |  | Durable Medical Equipment |  |  | Investment Management |  |  | Real Estate |  |  | General Corporate |  |  | Total |
Fixed assets, net |  | $ | 8,121 |  |  | $ | 27 |  |  | $ | 52,576 |  |  | $ | 4 |  |  | $ | 60,728 |
Identifiable intangible assets, net |  |  | 7,374 |  |  |  | 2,035 |  |  |  | 4,622 |  |  |  | - |  |  |  | 14,031 |
Goodwill |  |  | 50,010 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 50,010 |
Other assets |  |  | 19,310 |  |  |  | 2,978 |  |  |  | 2,782 |  |  |  | 49,540 |  |  |  | 74,610 |
Total |  | $ | 84,815 |  |  | $ | 5,040 |  |  | $ | 59,980 |  |  | $ | 49,544 |  |  | $ | 199,379 |
|  | As of June 30, 2020 |
(in thousands) |  | Durable Medical Equipment |  |  | Investment Management |  |  | Real Estate |  |  | General Corporate |  |  | Total |
Fixed assets, net |  | $ | 8,854 |  |  | $ | 35 |  |  | $ | 53,188 |  |  | $ | 4 |  |  | $ | 62,081 |
Identifiable intangible assets, net |  |  | 7,974 |  |  |  | 2,284 |  |  |  | 4,871 |  |  |  | - |  |  |  | 15,129 |
Goodwill |  |  | 50,010 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 50,010 |
Other assets |  |  | 19,055 |  |  |  | 2,654 |  |  |  | 2,171 |  |  |  | 44,345 |  |  |  | 68,225 |
Total |  | $ | 85,893 |  |  | $ | 4,973 |  |  | $ | 60,230 |  |  | $ | 44,349 |  |  | $ | 195,445 |

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