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Segment Reporting
 9 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

8. Segment Reporting

During the first quarter of fiscal 2026, in conjunction with the equity transaction entered into with KLIM and the formation of REV (see Note 14 - Equity Transactions), the Company realigned the information that the CODM regularly reviews to evaluate performance for operating decision-making purposes, including performance assessment and allocation of resources. As a result of this change in segment reporting (see Note 1 - Organization), the Company retrospectively recast prior period results, by segment, to conform to the current period presentation. This structure includes two reportable segments: Alternative Credit and Real Estate. The structure is based on the Company’s various investment strategies.

As a result of the change noted above, effective for the quarter ended September 30, 2025, the Company began reporting the following business segments:

•
Alternative Credit - focused on income generation and capital preservation through investment in debt and income-generating securities, direct lending, CLOs, and specialty finance businesses including Factoring, Asset Based Lending and Healthcare
•
Real Estate - full service, end-to-end real estate platform combining investment expertise and turnkey execution capabilities for industrial outdoor storage (IOS) sector

The Company has a corporate office that is included in “Corporate & Other”. The corporate office supports the segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance and human resources.

Our CODM is our Chief Executive Officer and Chairman of the Company’s Board of Directors, Jason W. Reese. The primary measure used by CODM in measuring performance and allocating resources to the segments is net income, as reported on our condensed consolidated statements of operations, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis when making decisions about internal operations, such as staffing and related compensation, and planning for future investments. The Company does not disclose total asset information for its reportable segments as the information is not reviewed by the CODM.

The following tables provide the operating financial results of our operating segments for the three and nine months ended March 31, 2026 and March 31, 2025:

 

For the three months ended March 31, 2026

 

(in thousands)

Alternative Credit

 

 

Real Estate

 

 

Total Segments

 

 

Corporate & Other

 

 

Total

 

Revenues

$

1,545

 

 

$

1,873

 

 

$

3,418

 

 

$

-

 

 

$

3,418

 

Cost of revenues

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

1,643

 

 

 

2,850

 

 

 

4,493

 

 

 

814

 

 

 

5,307

 

Depreciation and amortization

 

-

 

 

 

251

 

 

 

251

 

 

 

62

 

 

 

313

 

Selling, general and administrative

 

313

 

 

 

558

 

 

 

871

 

 

 

897

 

 

 

1,768

 

Non-operating income/(expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and interest income

 

-

 

 

 

7

 

 

 

7

 

 

 

1,159

 

 

 

1,166

 

Interest expense

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,033

)

 

 

(1,033

)

Net realized and unrealized loss

 

-

 

 

 

-

 

 

 

-

 

 

 

(9,873

)

 

 

(9,873

)

Net realized and unrealized gain on investments of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

94

 

 

 

94

 

Interest and other income of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

183

 

 

 

183

 

Loss before income taxes

 

(411

)

 

 

(1,779

)

 

 

(2,190

)

 

 

(11,243

)

 

 

(13,433

)

Income tax benefit (expense)

 

-

 

 

 

27

 

 

 

27

 

 

 

(114

)

 

 

(87

)

Net loss

$

(411

)

 

$

(1,752

)

 

$

(2,163

)

 

$

(11,357

)

 

$

(13,520

)

 

 

For the three months ended March 31, 2025

 

(in thousands)

Alternative Credit

 

 

Real Estate

 

 

Total Segments

 

 

Corporate & Other

 

 

Total

 

Revenues

$

1,768

 

 

$

1,441

 

 

$

3,209

 

 

$

-

 

 

$

3,209

 

Cost of revenues

 

-

 

 

 

(11

)

 

 

(11

)

 

 

-

 

 

 

(11

)

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

1,596

 

 

 

1,592

 

 

 

3,188

 

 

 

813

 

 

 

4,001

 

Depreciation and amortization

 

71

 

 

 

290

 

 

 

361

 

 

 

-

 

 

 

361

 

Selling, general and administrative

 

250

 

 

 

595

 

 

 

845

 

 

 

568

 

 

 

1,413

 

Non-operating income/(expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and interest income

 

-

 

 

 

-

 

 

 

-

 

 

 

1,481

 

 

 

1,481

 

Interest expense

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,039

)

 

 

(1,039

)

Net realized and unrealized loss

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,439

)

 

 

(2,439

)

Net realized and unrealized loss on investments of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

(338

)

 

 

(338

)

Interest and other income of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

389

 

 

 

389

 

Loss before income taxes

 

(149

)

 

 

(1,025

)

 

 

(1,174

)

 

 

(3,327

)

 

 

(4,501

)

Income tax expense

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net loss

$

(149

)

 

$

(1,025

)

 

$

(1,174

)

 

$

(3,327

)

 

$

(4,501

)

 

 

For the nine months ended March 31, 2026

 

(in thousands)

Alternative Credit

 

 

Real Estate

 

 

Total Segments

 

 

Corporate & Other

 

 

Total

 

Revenues

$

4,619

 

 

$

12,598

 

 

$

17,217

 

 

$

-

 

 

$

17,217

 

Cost of revenues

 

-

 

 

 

6,764

 

 

 

6,764

 

 

 

-

 

 

 

6,764

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

4,648

 

 

 

8,350

 

 

 

12,998

 

 

 

2,465

 

 

 

15,463

 

Depreciation and amortization

 

138

 

 

 

767

 

 

 

905

 

 

 

62

 

 

 

967

 

Selling, general and administrative

 

1,246

 

 

 

1,799

 

 

 

3,045

 

 

 

2,907

 

 

 

5,952

 

Non-operating income/(expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and interest income

 

-

 

 

 

48

 

 

 

48

 

 

 

3,678

 

 

 

3,726

 

Interest expense

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,083

)

 

 

(3,083

)

Net realized and unrealized loss

 

-

 

 

 

-

 

 

 

-

 

 

 

(24,095

)

 

 

(24,095

)

Net realized and unrealized loss on investments of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,315

)

 

 

(3,315

)

Interest and other income of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

828

 

 

 

828

 

Loss before income taxes

 

(1,413

)

 

 

(5,034

)

 

 

(6,447

)

 

 

(31,421

)

 

 

(37,868

)

Income tax expense

 

-

 

 

 

(89

)

 

 

(89

)

 

 

(15

)

 

 

(104

)

Net loss

$

(1,413

)

 

$

(5,123

)

 

$

(6,536

)

 

$

(31,436

)

 

$

(37,972

)

 

 

For the nine months ended March 31, 2025

 

(in thousands)

Alternative Credit

 

 

Real Estate

 

 

Total Segments

 

 

Corporate & Other

 

 

Total

 

Revenues

$

6,233

 

 

$

4,475

 

 

$

10,708

 

 

$

-

 

 

$

10,708

 

Cost of revenues

 

-

 

 

 

1,082

 

 

 

1,082

 

 

 

-

 

 

 

1,082

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

4,688

 

 

 

3,908

 

 

 

8,596

 

 

 

2,393

 

 

 

10,989

 

Depreciation and amortization

 

204

 

 

 

714

 

 

 

918

 

 

 

-

 

 

 

918

 

Selling, general and administrative

 

941

 

 

 

985

 

 

 

1,926

 

 

 

2,321

 

 

 

4,247

 

Non-operating income/(expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and interest income

 

-

 

 

 

-

 

 

 

-

 

 

 

4,606

 

 

 

4,606

 

Interest expense

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,097

)

 

 

(3,097

)

Net realized and unrealized gain

 

-

 

 

 

-

 

 

 

-

 

 

 

3,767

 

 

 

3,767

 

Net realized and unrealized loss on investments of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

(89

)

 

 

(89

)

Interest and other income of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

1,168

 

 

 

1,168

 

Income (loss) before income taxes

 

400

 

 

 

(2,214

)

 

 

(1,814

)

 

 

1,641

 

 

 

(173

)

Income tax expense

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net income (loss)

$

400

 

 

$

(2,214

)

 

$

(1,814

)

 

$

1,641

 

 

$

(173

)

Selling, general and administrative includes expenses such as insurance, rent, professional fees and other expenses, along with expenses of the Consolidated Funds.