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Segment Information | 6 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment Information | 18. Segment Information The Company allocates resources based on three business operating segments: durable medical equipment, investment management and real estate with general corporate representing unallocated costs and activity to arrive at consolidated operations. Activity not allocated to the segments include, but are not limited to, certain investment and financing activities, professional fees, costs associated with being a public company, acquisition costs and costs associated with executive and corporate management departments, including compensation, benefits, rent and insurance. 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.
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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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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