Discontinued Operations

3 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Note 12. Discontinued Operations

On November 13, 2023, the Company entered into the Purchase Agreement with Westlake Financial, pursuant to which the Company agreed to sell substantially all of its finance receivables and all of its repossessed assets. In connection with the entering into the Purchase Agreement, the Company ceased new loan originations of contracts and direct loans. On April 26, 2024, the transactions contemplated by the Purchase Agreement closed with an aggregate purchase price of $65.6 million, pursuant to the terms of the Purchase Agreement. As a result of the sale of the Company's finance receivables and repossessed assets to Westlake, the Company recognized a gain of $1.5 million, calculated as the excess of the total consideration over the carrying value of the finance receivables and repossessed assets sold to Westlake. The disposition of the finance receivables and all of its repossessed assets represents a strategic shift in the business based on the total assets, revenue, and net income of the segment sold to Westlake in comparison to the financial information of the Company as a whole.

The following depicts the results of operations for the discontinued operations of the Company for the three months ended June 30, 2024 and 2023:


	For the Three Months Ended June 30,
(In thousands)	2024		2023
Revenue
Interest and fee income on finance receivables	$	1,229	$	7,083
Total revenue		1,229		7,083

Operating expenses
Marketing		6		30
Provision for credit losses		-		645
Fair value and other adjustments, net		139		-
General and administrative		542		2,719
Total operating expenses		687		3,394

Other expense
Interest expense		-		500
Total other expense		-		500

Gain on disposal of assets, net of tax		1,517		-

Income before income taxes		2,059		3,189
Income tax expense (benefit)		-		145
Net income from discontinued operations, net of tax	$	2,059	$	3,044