Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2019 | Feb. 05, 2020 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | CCUR Holdings, Inc. | |
Entity Central Index Key | 0000749038 | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Trading Symbol | CCUR | |
Entity Common Stock, Shares Outstanding | 8,923,657 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 12,043 | $ 8,083 |
Equity securities, fair value | 5,639 | 7,405 |
Fixed maturity securities, available-for-sale, fair value | 22,776 | 20,393 |
Current maturities of mortgage and commercial loans receivable | 637 | 3,184 |
Advances receivable, net | 9,353 | 9,389 |
Prepaid expenses and other current assets | 2,202 | 1,779 |
Total current assets | 52,650 | 50,233 |
Land investment | 3,546 | 3,265 |
Deferred income taxes, net | 237 | 475 |
Mortgage and commercial loans receivable, net of maturities | 6,490 | 3,680 |
Definite-lived intangibles, net | 2,671 | 2,910 |
Goodwill | 1,260 | 1,260 |
Other long-term assets, net | 580 | 651 |
Total assets | 67,434 | 62,474 |
Current liabilities: | ||
Accounts payable and accrued expenses | 886 | 660 |
Notes payable, current | 1,600 | |
Contingent consideration, current | 750 | |
Total current liabilities | 2,486 | 1,410 |
Long-term liabilities: | ||
Pension liability | 4,086 | 4,136 |
Contingent consideration, long-term | 2,690 | 2,340 |
Long-term debt | 1,600 | |
Other long-term liabilities | 535 | 632 |
Total liabilities | 9,797 | 10,118 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity: | ||
Shares of common stock, par value $0.01; 14,000,000 authorized; 8,761,156 and 8,756,156 issued and outstanding at December 31, 2019, and June 30, 2019, respectively | 87 | 87 |
Capital in excess of par value | 209,076 | 208,881 |
Non-controlling interest | 1,214 | 762 |
Accumulated deficit | (144,652) | (150,795) |
Accumulated other comprehensive loss | (8,088) | (6,579) |
Total stockholders' equity | 57,637 | 52,356 |
Total liabilities, non-controlling interest, and stockholders' equity | $ 67,434 | $ 62,474 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Jun. 30, 2019 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 14,000,000 | 14,000,000 |
Common Stock, Shares, Issued | 8,761,156 | 8,756,156 |
Common Stock, Shares, Outstanding | 8,761,156 | 8,756,156 |
Series A Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,250,000 | 1,250,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Class A [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 100 | $ 100 |
Preferred Stock, Shares Authorized | 20,000 | 20,000 |
Preferred Stock, Shares Issued | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | ||||
Merchant cash advance fees and other revenue | $ 1,440 | $ 185 | $ 2,888 | $ 316 |
interest on mortgage and commercial loans | 347 | 185 | 630 | 220 |
Total revenues | 1,787 | 370 | 3,518 | 536 |
Operating expenses: | ||||
Sales and marketing | 307 | 612 | ||
General and administrative | 1,000 | 792 | 2,029 | 1,627 |
Change in fair value of contingent consideration | (410) | (400) | 0 | |
Amortization of purchased intangibles | 119 | 239 | ||
Provision for credit losses on advances | 180 | 495 | 396 | 495 |
Total operating expenses | 1,196 | 1,287 | 2,876 | 2,122 |
Operating income (loss) | 591 | (917) | 642 | (1,586) |
Other interest income | 2,145 | 890 | 4,282 | 1,735 |
Realized gain on investments, net | 843 | 1,919 | 201 | |
Unrealized loss on equity securities, net | (627) | (1,529) | (158) | (1,986) |
Other income, net | 65 | 26 | 66 | 105 |
Income (loss) before income taxes | 3,017 | (1,530) | 6,751 | (1,531) |
(Benefit) provision for income taxes | (17) | 156 | 2 | |
Net income (loss) | 3,034 | (1,530) | 6,595 | (1,533) |
Less: Net income attributable to non-controlling interest | (297) | (452) | ||
Net income (loss) attributable to CCUR Holdings, Inc. stockholders | $ 2,737 | $ (1,530) | $ 6,143 | $ (1,533) |
Earnings (loss) per share attributable to CCUR Holdings. Inc. stockholders: | ||||
Basic | $ 0.31 | $ (0.17) | $ 0.70 | $ (0.17) |
Diluted | $ 0.31 | $ (0.17) | $ 0.70 | $ (0.17) |
Weighted average shares outstanding - basic | 8,758,710 | 9,034,368 | 8,757,433 | 9,069,947 |
Weighted average shares outstanding - diluted | 8,840,870 | 9,034,368 | 8,825,583 | 9,069,947 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ 3,034 | $ (1,530) | $ 6,595 | $ (1,533) |
Other comprehensive income (loss): | ||||
Net unrealized loss on available for sale investments | (1,438) | (1,813) | (1,609) | (2,690) |
Foreign currency translation adjustment | (42) | 53 | 56 | 76 |
Pension and post-retirement benefits, net of tax | (46) | 16 | 44 | 32 |
Other comprehensive income (loss): | (1,526) | (1,744) | (1,509) | (2,582) |
Comprehensive income (loss) | 1,508 | (3,274) | 5,086 | (4,115) |
Comprehensive income attributable to non-controlling interest | (297) | (452) | ||
Comprehensive income (loss) attributable to CCUR Holdings, Inc. stockholders | $ 1,211 | $ (3,274) | $ 4,634 | $ (4,115) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-Controlling Interest [Member] | Total |
Balance at Jun. 30, 2018 | $ 91 | $ 210,083 | $ (151,795) | $ (2,313) | $ 56,066 | |
Balance (in shares) at Jun. 30, 2018 | 9,117,077 | |||||
Share-based compensation expense | 74 | 74 | ||||
Repurchase and retirement of stock | $ (1) | (613) | (614) | |||
Repurchase and retirement of stock (in shares) | (156,423) | |||||
Lapse of restrictions on restricted stock (in shares) | 7,500 | |||||
Adoption of ASU 2016-01 | 318 | (318) | ||||
Other comprehensive income, net of taxes: | ||||||
Net income (loss) | (1,533) | (1,533) | ||||
Unrealized loss on available-for-sale investments | (2,690) | (2,690) | ||||
Foreign currency translation adjustment | 76 | 76 | ||||
Pension and post-retirement benefits, net of tax | 32 | 32 | ||||
Total comprehensive income | (4,115) | |||||
Balance at Dec. 31, 2018 | $ 90 | 209,544 | (153,010) | (5,213) | 51,411 | |
Balance (in shares) at Dec. 31, 2018 | 8,968,154 | |||||
Balance at Sep. 30, 2018 | $ 91 | 210,027 | (151,480) | (3,469) | 55,169 | |
Balance (in shares) at Sep. 30, 2018 | 9,094,069 | |||||
Share-based compensation expense | 16 | 16 | ||||
Repurchase and retirement of stock | $ (1) | (499) | (500) | |||
Repurchase and retirement of stock (in shares) | (133,415) | |||||
Other comprehensive income, net of taxes: | ||||||
Net income (loss) | (1,530) | (1,530) | ||||
Unrealized loss on available-for-sale investments | (1,813) | (1,813) | ||||
Foreign currency translation adjustment | 53 | 53 | ||||
Pension and post-retirement benefits, net of tax | 16 | 16 | ||||
Total comprehensive income | (3,274) | |||||
Balance at Dec. 31, 2018 | $ 90 | 209,544 | (153,010) | (5,213) | 51,411 | |
Balance (in shares) at Dec. 31, 2018 | 8,968,154 | |||||
Balance at Jun. 30, 2019 | $ 87 | 208,881 | (150,795) | (6,579) | $ 762 | 52,356 |
Balance (in shares) at Jun. 30, 2019 | 8,756,156 | |||||
Share-based compensation expense | 195 | 195 | ||||
Lapse of restrictions on restricted stock (in shares) | 5,000 | |||||
Other comprehensive income, net of taxes: | ||||||
Net income (loss) | 6,143 | 452 | 6,595 | |||
Unrealized loss on available-for-sale investments | (1,609) | (1,609) | ||||
Foreign currency translation adjustment | 56 | 56 | ||||
Pension and post-retirement benefits, net of tax | 44 | 44 | ||||
Total comprehensive income | 5,086 | |||||
Balance at Dec. 31, 2019 | $ 87 | 209,076 | (144,652) | (8,088) | 1,214 | 57,637 |
Balance (in shares) at Dec. 31, 2019 | 8,761,156 | |||||
Balance at Sep. 30, 2019 | $ 87 | 208,980 | (147,389) | (6,562) | 917 | 56,033 |
Balance (in shares) at Sep. 30, 2019 | 8,756,156 | |||||
Share-based compensation expense | 96 | 96 | ||||
Lapse of restrictions on restricted stock (in shares) | 5,000 | |||||
Other comprehensive income, net of taxes: | ||||||
Net income (loss) | 2,737 | 297 | 3,034 | |||
Unrealized loss on available-for-sale investments | (1,438) | (1,438) | ||||
Foreign currency translation adjustment | (42) | (42) | ||||
Pension and post-retirement benefits, net of tax | (46) | (46) | ||||
Total comprehensive income | 1,508 | |||||
Balance at Dec. 31, 2019 | $ 87 | $ 209,076 | $ (144,652) | $ (8,088) | $ 1,214 | $ 57,637 |
Balance (in shares) at Dec. 31, 2019 | 8,761,156 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) | $ 6,595 | $ (1,533) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 242 | 1 |
Share-based compensation | 195 | 74 |
Provision for credit losses on advances | 396 | 495 |
Deferred taxes | 238 | 0 |
Non-cash accretion of interest income | (2,366) | (611) |
Payment-in-kind interest income | (483) | (412) |
Realized gain on investments, net | (1,919) | (201) |
Unrealized loss on investments, net | 158 | 1,986 |
Change in fair value of contingent consideration | (400) | 0 |
(Increase) decrease in assets: | ||
Prepaid expenses and other current assets | (829) | 345 |
Other long-term assets | 43 | (45) |
Increase (decrease) in liabilities: | ||
Accounts payable and accrued expenses | 226 | (311) |
Pension and other long-term liabilities | (16) | 110 |
Net cash provided by (used in) operating activities | 2,080 | (102) |
Cash flows provided by (used in) investing activities: | ||
Additions to land investment | (281) | 0 |
Additions to property and equipment | (8) | (6) |
Origination and fundings of mortgage and commercial loans receivable | (2,750) | (4,462) |
Collections of mortgage and commercial loans receivable | 2,554 | 1,949 |
Fundings of cash advances receivable | (14,829) | (7,882) |
Collections of cash advances receivable | 14,823 | 876 |
Proceeds from sale or maturity of securities | 3,893 | 6,159 |
Purchases of securities | (1,509) | (7,970) |
Net cash provided by (used in) investing activities | 1,893 | (11,336) |
Cash flows used in financing activities: | ||
Purchase of common stock for retirement | 0 | (615) |
Dividends paid | (1) | (1) |
Net cash used in financing activities | (1) | (616) |
Effect of exchange rates on cash and cash equivalents | (12) | 0 |
Increase (decrease) in cash and cash equivalents | 3,960 | (12,054) |
Cash and cash equivalents - beginning of year | 8,083 | 32,992 |
Cash and cash equivalents - end of period | 12,043 | 20,938 |
Cash paid during the year for: | ||
Interest | 40 | 0 |
Income taxes, net of refunds | $ 205 | $ 295 |
Overview of the Business and Ba
Overview of the Business and Basis of Presentation | 6 Months Ended |
Dec. 31, 2019 | |
Overview of the Business and Basis of Presentation | |
Overview of the Business and Basis of Presentation | 1. Overview of the Business and Basis of Presentation References herein to “CCUR Holdings,” the “Company,” “we,” “us,” or “our” refer to CCUR Holdings, Inc. and its subsidiaries on a consolidated basis, unless the context specifically indicates otherwise. We are a holding company owning and seeking to own subsidiaries engaged in a variety of business operations. As of December 31, 2019, we had two existing operating segments: (i) merchant cash advance (“MCA”) operations, conducted primarily through our subsidiary LM Capital Solutions, LLC (d/b/a “LuxeMark Capital”) (“LMCS”), and (ii) real estate operations, conducted through our subsidiary Recur Holdings LLC (“Recur”) and its subsidiaries. The Company holds an 80% interest in LMCS, with the remaining 20% held by LuxeMark Capital, LLC (“Old LuxeMark”). Through LMCS, we manage a connected network of MCA originators and syndicate participants who provide those originators with capital by purchasing participation interests in or co-funding MCA transactions. In addition, we provide loans to MCA originators, the proceeds of which are used by the MCA originators to fund MCAs themselves. LMCS’ daily operations are led by the three principals of Old LuxeMark. CCUR provides accounting and legal support to LMCS. Recur provides commercial loans to local, regional, and national builders, developers, and commercial landowners and also acquires, owns, and manages a portfolio of real property for development. Recur does not provide consumer mortgages. In addition to our MCA and real estate operating segments, we actively evaluate acquisitions of additional businesses or operating assets, either as part of an expansion of our current operating segments or establishment of a new operating segment, in an effort to reinvest the proceeds of our calendar year 2017 business dispositions and maximize use of other assets such as our net operating loss (“NOL”) carryforwards. We may also seek additional capital and financing to support the purchase of additional businesses and/or to provide additional working capital to further develop our operating segments. We believe that these activities will enable us to identify, acquire, and grow businesses and assets that will maximize value for all our stockholders. The unaudited consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to applicable rules and regulations. In the opinion of management, all adjustments of a normal recurring nature which were considered necessary for a fair presentation have been included. The year-end consolidated balance sheet data as of June 30, 2019 was derived from our audited consolidated financial statements and may not include all disclosures required by U.S. GAAP. The results of operations for the three months and six months ended December 31, 2019 are not necessarily indicative of the results to be expected for the entire year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019 filed with the SEC on August 28, 2019. We meet the SEC’s definition of a “Smaller Reporting Company,” and therefore qualify for the SEC’s reduced disclosure requirements for smaller reporting companies.The significant accounting policies used in preparing these consolidated financial statements are consistent with the accounting policies described in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019, except for those as described below. Goodwill and Intangible Assets Goodwill represents the excess of purchase price over the fair value of the net assets of businesses acquired. We review goodwill at least annually for impairment. In our evaluation of goodwill impairment, we perform a qualitative assessment that requires management judgment and the use of estimates to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. An entity has an unconditional option to bypass the qualitative assessment for any reporting unit and proceed directly to performing the quantitative goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. We perform our annual impairment tests as of December 31 of each year, unless circumstances indicate the need to accelerate the timing of the tests. We completed our annual impairment test of goodwill as of December 31, 2019 and concluded that there was no impairment. Intangible assets include trade name, non-competition agreements, and syndicate participant/originator relationships, are subject to amortization over their respective useful lives, and are classified in definite-lived intangibles, net in the accompanying consolidated balance sheets. These intangibles are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be fully recoverable. If facts and circumstances indicate that the carrying value might not be recoverable, projected undiscounted net cash flows associated with the related assets or groups of assets over their estimated remaining useful lives is compared against their respective carrying amounts. If an asset is found to be impaired, the impairment charge will be measured as the amount by which the carrying amount of an asset exceeds its fair value. Commercial and Mortgage Loans and Loan Losses We have potential exposure to transaction losses as a result of uncollectability of commercial mortgage and other loans. We base our reserve estimates on prior charge-off history and currently available information that is indicative of a transaction loss. We reflect additions to the reserve in current operating results, while we make charges to the reserve when we incur losses. We reflect recoveries in the reserve for transaction losses as collected. We have the intent and ability to hold these loans to maturity or payoff and as such, have classified these loans as held-for-investment. These loans are reported on the balance sheet at the outstanding principal balance adjusted for any charge-offs, allowance for loan losses, and deferred fees or costs. As of December 31, 2019, we have not recorded any charge-offs, and believe that an allowance for loan losses is not required. Land Investment Land investment assets are stated at acquired cost. Pre-acquisition and development costs are capitalized. Gains and losses resulting from the disposition of real estate are included in operations. As of December 31, 2019, all land held by the Company is considered to be held for use and development. Basic and Diluted Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during each fiscal period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during each fiscal period including dilutive common share equivalents. Under the treasury stock method, incremental shares representing the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued are included in the computation. Weighted-average common share equivalents of 7,598 and 10,937 for the three months ended December 31, 2019 and 2018, respectively, were excluded from the calculation, as their effect would have been anti-dilutive. Weighted-average common share equivalents of 8,644 and 13,420 for the six months ended December 31, 2019 and 2018, respectively, were excluded from the calculation, as their effect would have been anti-dilutive. The following table presents a reconciliation of the numerators and denominators of basic and diluted net income (loss) per share for the periods indicated: Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Basic weighted average number of shares outstanding 8,758,710 9,034,368 8,757,433 9,069,947 Effect of dilutive securities: Restricted stock 82,160 — 68,150 — Diluted weighted average number of shares outstanding 8,840,870 9,034,368 8,825,583 9,069,947 Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, we consider the most advantageous market in which it would transact and assumptions that market participants would use when pricing the asset or liability. Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements and Disclosures requires certain disclosures around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: · Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities; · Level 2 Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and · Level 3 Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which include the use of management estimates. Our investment portfolio consists of money market funds, equity securities, and corporate debt. All highly liquid investments with an original maturity of three months or less when purchased are considered to be cash equivalents. All cash equivalents are carried at cost less any unamortized premium or discount, which approximates fair value. All investments with original maturities of more than three months are classified as available-for-sale, trading or held-to-maturity investments. Our marketable securities, other than warrants and equity securities, are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of tax, reported in stockholders’ equity as a component of accumulated other comprehensive income or loss. Warrants to purchase stock are held as trading securities and are reported at fair value with gains and losses reported within the accompanying consolidated statements of operations. Interest on securities is recorded in interest income. Dividends paid by securities are recorded in other income. Any realized gains or losses are reported in the accompanying consolidated statements of operations. Equity securities are reported at fair value, with unrealized gains and losses resulting from adjustments to fair value reported within our consolidated statements of operations. We use Level 3 inputs to determine the fair value of our preferred stock investments. The Company has elected the measurement alternative and will record the investments at cost adjusted for observable price changes for an identical or similar investment of the same issuer. Observable price changes and impairment indicators will be assessed each reporting period. We also use Level 3 inputs to determine the fair value of our contingent consideration and common stock purchase warrants related to our acquisition of the assets of Old LuxeMark (the “LuxeMark Acquisition”). The Company uses a Monte Carlo simulation technique to value the performance-based contingent consideration and common stock purchase warrants. This technique is a probabilistic model which relies on repeated random sampling to obtain numerical results. The concluded values represent the means of those results. We provide fair value measurement disclosures of our securities in accordance with one of the three levels of fair value measurement. Our financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2019 and June 30, 2019 are as follows: As of Quoted December 31, Prices in Observable Unobservable 2019 Active Markets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Amounts in thousands) Cash $ 7,109 $ 7,109 $ — $ — Money market funds 4,934 4,934 — — Cash and cash equivalents $ 12,043 $ 12,043 $ — $ — Common stock $ 2,756 $ 2,756 $ — $ — Preferred stock 2,883 — — 2,883 Equity investments $ 5,639 $ 2,756 $ — $ 2,883 Corporate debt $ 22,776 $ — $ 22,776 $ — Available-for-sale investments $ 22,776 $ — $ 22,776 $ — Contingent consideration - cash earn-out $ 2,520 $ — $ — $ 2,520 Contingent consideration - warrants 170 — — 170 Liabilities $ 2,690 $ — $ — $ 2,690 Quoted As of Prices in Observable Unobservable June 30, 2019 Active Markets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Amounts in thousands) Cash $ 5,223 $ 5,223 $ — $ — Money market funds 2,860 2,860 — — Cash and cash equivalents $ 8,083 $ 8,083 $ — $ — Common stock warrants $ 1 $ 1 $ — $ — Common stock 4,521 4,521 — — Preferred stock 2,883 — — 2,883 Equity investments $ 7,405 $ 4,522 $ — $ 2,883 Corporate debt $ 20,393 $ — $ 20,393 $ — Available-for-sale investments $ 20,393 $ — $ 20,393 $ — Contingent consideration - cash earn-out $ 2,890 $ — $ — $ 2,890 Contingent consideration - warrants 200 — — 200 Liabilities $ 3,090 $ — $ — $ 3,090 The carrying amounts of certain financial instruments, including cash equivalents and MCAs, approximate their fair values due to their short-term nature. The following table provides a reconciliation of the beginning and ending balances for the Company’s assets and obligations measured at fair value using Level 3 inputs: Assets Obligations Preferred Contingent Stock Consideration (Amounts in thousands) Balance at June 30, 2019 $ 2,883 $ 3,090 Fair value adjustment to contingent consideration — (400) Balance at December 31, 2019 $ 2,883 $ 2,690 The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 ($ amounts in thousands): Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Equity securities, fair value Preferred stock $ 2,883 cost, or observable price changes not applicable not applicable Contingent consideration Contingent cash payments $ 2,520 Monte Carlo simulations discount rate 12.0 % expected volatility 25.0 % drift rate 1.6 % credit spread 8.0 % Contingent warrants $ 170 Black-Scholes, Monte Carlo expected term 5.37 years expected volatility 25.0 % risk free rate 1.7 % dividend yield 0.0 % The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 ($ amounts in thousands): Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Equity securities, fair value Preferred stock $ 2,883 cost, or observable price changes not applicable not applicable Contingent consideration Contingent cash payments $ 2,890 Monte Carlo simulations discount rate 12.0 % expected volatility 25.0 % drift rate 1.7 % credit spread 8.0 % Contingent warrants $ 200 Black-Scholes, Monte Carlo simulations expected term 6.25 years expected volatility 30.0 % risk free rate 2.6 % dividend yield 0.0 % |
Recent Accounting Guidance
Recent Accounting Guidance | 6 Months Ended |
Dec. 31, 2019 | |
Recent Accounting Guidance | |
Recent Accounting Guidance | 2. Recent Accounting Guidance Recently Issued and Adopted Accounting Guidance In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”), on the recognition of lease assets and lease liabilities on the balance sheet. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The new guidance changes the current accounting guidance related to the recognition of lease assets and lease liabilities. We early adopted the new guidance effective June 30, 2019, as further disclosed in Note 13 to these financial statements. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220) (“ASU 2018-02”) , which permits entities to reclassify the tax effects stranded in accumulated other comprehensive income as a result of recent United States federal tax reforms to retained earnings. Entities can elect to apply the guidance retrospectively or in the period of adoption. This guidance is effective for fiscal years beginning after December 15, 2018 and interim periods therein, with early adoption permitted. We adopted the new guidance effective July 1, 2019 with no material impact on our consolidated financial statements or disclosures. Recent Accounting Guidance Not Yet Adopted In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates (“ASU 2019-10”). Among other things, ASU 2019-10 provides that ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) will be effective for Public Business Entities that are SEC filers, excluding smaller reporting companies such as the Company, for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. For all other entities, including smaller reporting companies like the Company, ASU 2016-13 will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For all entities, early adoption will continue to be permitted. We are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements and disclosures. In December 2019 the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact that ASU 2019-12 will have on our consolidated financial statements and disclosures. |
Investments
Investments | 6 Months Ended |
Dec. 31, 2019 | |
Investments. | |
Investments | 3. Investments Fixed-Maturity and Equity Securities Investments The following tables provide information relating to investments in fixed-maturity and equity securities: Unrealized Unrealized December 31, 2019 Cost Gains Losses Fair Value (Amounts in thousands) Equity securities Common stock and common stock options $ 4,098 $ 69 $ (1,411) $ 2,756 Common stock warrants 288 — (288) — Preferred stock 2,883 — — 2,883 Total equity securities $ 7,269 $ 69 $ (1,699) $ 5,639 Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed-maturity securities Corporate debt $ 29,752 $ 138 $ (7,114) $ 22,776 Total fixed-maturity securities $ 29,752 $ 138 $ (7,114) $ 22,776 Unrealized Unrealized June 30, 2019 Cost Gains Losses Fair Value (Amounts in thousands) Equity securities Common stock $ 5,706 $ — $ (1,185) $ 4,521 Common stock warrants 288 — (287) 1 Preferred stock 2,883 — — 2,883 Total equity securities $ 8,877 $ — $ (1,472) $ 7,405 Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed-maturity securities Corporate debt $ 25,761 $ — $ (5,368) $ 20,393 Total fixed-maturity securities $ 25,761 $ — $ (5,368) $ 20,393 During the three months ended December 31, 2019, we reported $627,000 of unrealized loss on equity securities, net, within our consolidated statement of operations. Additionally, we reported $843,000 of realized gain on the sale of debt and equity securities within our consolidated statement of operations. During the six months ended December 31, 2019, we reported $158,000 of unrealized loss on equity securities, net, within our consolidated statement of operations, and $1,919,000 of realized gain on the sale of debt and equity securities within our consolidated statement of operations. Maturities of Fixed-Maturity Securities Available-for-Sale The amortized cost and fair values of fixed-maturity securities available for sale as of December 31, 2019 are shown by contractual maturity in the table below. Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value (Amounts in thousands) Fixed-maturity securities Due after one year through three years $ 21,769 $ 15,245 Due after three years through five years — — Due after five years through 10 years 7,983 7,531 Total fixed-maturity securities $ 29,752 $ 22,776 |
Mortgage and Commercial Loans R
Mortgage and Commercial Loans Receivable | 6 Months Ended |
Dec. 31, 2019 | |
Mortgage and Commercial Loans Receivable | |
Mortgage and Commercial Loans Receivable | 4. Mortgage and Commercial Loans Receivable We had $7,127,000 of loan assets as of December 31, 2019, of which $1,627,000 are mortgage loans secured by real property in certain markets throughout the United States, and the remaining balance was comprised of loans to MCA originators. A summary of mortgage loan activity for the six months ended December 31, 2019 is as follows: Provision Principal Deferred for Loan Carrying Mortgage Loans Receivable Balance Fees Loss Value (Amounts in thousands) Balance at July 1, 2019 $ 4,195 $ (81) $ — $ 4,114 Additions during the period: Amortization of deferred fees — 67 — 67 Deductions during the period: Collections of principal (2,554) — — (2,554) Balance at December 31, 2019 $ 1,641 $ (14) $ — $ 1,627 On July 1, 2019, one of our customers defaulted on a $1,400,000 commercial mortgage loan. This loan was repaid in full during the three months ended December 31, 2019. A summary of loan activity to MCA originators for the period is as follows (amounts in thousands): Carrying Other Loans Receivable Value Balance at July 1, 2019 $ 2,750 Additions during the period: Borrowings 2,750 Balance at December 31, 2019 $ 5,500 Loans reported under “Other Loans Receivable” have two-year, interest only terms, bearing interest at 17.0% per annum and are to a single MCA originator. |
Advances Receivable, net
Advances Receivable, net | 6 Months Ended |
Dec. 31, 2019 | |
Advances Receivable, net | |
Advances Receivable, net | 5 . Advances Receivable, net Total advances receivable, net consisted of the following: Provision Advance Deferred for Credit Carrying Principal Fees Losses Value (Amounts in thousands) Merchant cash advances $ 4,905 $ — $ (359) $ 4,546 Aviation advance 5,000 (193) — 4,807 Advances receivable, net $ 9,905 $ (193) $ (359) $ 9,353 As of December 31, 2019, 100% of MCAs in which we hold a participation interest were originated through three MCA originators. Changes in the allowance for MCA credit losses are as follows (amounts in thousands): Allowance for credit losses, July 1, 2019 $ 736 Provision for credit losses 396 Receivables charged off (911) Recoveries of receivables previously charged off 138 Allowance for credit losses, December 31, 2019 $ 359 During the three and six months ended December 31, 2019, we provided $5,000,000 and $8,000,000 of cash advances to an aviation business to fund the deposit required for the recipient’s aircraft purchases for up to four months, in exchange for paying us an upfront fee and a guaranty of the full repayment obligation from the principal of the third-party business. These prepaid fees are netted against the principal balance, earned over the four-month advance period, and are reported as part of MCA income within the statement of operations. During the three and six months ended December 31, 2019 we collected $3,000,000 of these advances. Each quarter, we review the carrying value of this cash advance, and determine if an impairment reserve is necessary. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Dec. 31, 2019 | |
Accounts Payable and Accrued Expenses | |
Accounts Payable and Accrued Expenses | 6 . Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: December 31, June 30, 2019 2019 (Amounts in thousands) Accounts payable, trade $ 199 $ 221 Accrued compensation 412 56 Unrecognized income from research and development tax credits 35 35 Other accrued expenses 240 348 Total accounts payable and accrued expenses $ 886 $ 660 |
Pensions
Pensions | 6 Months Ended |
Dec. 31, 2019 | |
Pensions | |
Pensions | 7. Pensions Defined Benefit Plans The following table provides the components of net periodic benefit cost of our German defined benefit pension plans recognized in earnings for the three months and six months ended December 31, 2019 and 2018 (amounts in thousands): Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Net Periodic Benefit Cost Interest cost $ 8 $ 15 $ 15 $ 30 Expected return on plan assets (1) (1) (2) (2) Recognized actuarial loss 22 16 44 32 Net periodic benefit cost $ 29 $ 30 $ 57 $ 60 |
Term Loan
Term Loan | 6 Months Ended |
Dec. 31, 2019 | |
Term Loan | |
Term Loan | 8. Term Loan In fiscal year 2019, we entered into an 18-month, $1,600,000 term loan with a commercial bank to finance part of a land purchase for the purpose of entitling and reselling the land. The term loan has an interest rate of 4.53% (2.75% plus the one-month London Interbank Offered Rate (the “LIBOR”)) at December 31, 2019, with interest-only payments due monthly. All principal and any unpaid interest are due in full upon maturity in November 2020. As of December 31, 2019, we have capitalized $44,000 of interest from this loan as part of the land cost. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | 9 . Income Taxes The Company and its subsidiaries file income tax returns in the U. S. federal jurisdiction and in various states and foreign jurisdictions. With a few exceptions, we are no longer subject to U. S. federal, state, and local, or non-U. S. income tax examinations by tax authorities for fiscal years before 1999. The domestic and foreign components of income (loss) from operations before the provision for income taxes are as follows (amounts in thousands): Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 United States $ 3,058 $ (1,470) $ 6,832 $ (1,428) Foreign (41) (60) (81) (103) Income (loss) from operations $ 3,017 $ (1,530) $ 6,751 $ (1,531) The components of the (benefit) provision for income taxes are as follows (amounts in thousands): Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Domestic $ (17) $ — $ 156 $ 2 Foreign — — — — Total $ (17) $ — $ 156 $ 2 NOLs As of June 30, 2019, we had U.S. federal NOL carryforwards of approximately $58,429,000 for income tax purposes, of which none expire in our fiscal year 2020, and the remainder expire at various dates through our fiscal year 2037; however, with the enactment of the Tax Cuts and Jobs Act (the “TCJA”) on December 22, 2017, federal NOLs generated in taxable years beginning after December 31, 2017 now have no expiration date. We recently completed an evaluation of the potential effect of Section 382 of the Internal Revenue Code (the “IRC”) on our ability to utilize these NOLs. The study concluded that we have not had an ownership change for the period from July 22, 1993 to June 30, 2019; therefore, the NOLs will not be subject to limitation under Section 382. If we experience an ownership change as defined in Section 382 of the IRC, our ability to use these NOLs will be substantially limited, which could therefore significantly impair the value of that asset. As of June 30, 2019, we had state NOLs of $42,563,000 and foreign NOLs of $8,296,000. The state NOLs expire according to the rules of each state and expiration will occur between fiscal year 2020 and fiscal year 2037. The foreign NOLs expire according to the rules of each country. As of June 30, 2019, the foreign NOLs can be carried forward indefinitely in each country, although some countries do restrict the amount of NOL that can be used in a given tax year. Deferred Tax Assets and Related Valuation Allowances In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining whether or not a valuation allowance for tax assets is needed, we evaluate all available evidence, both positive and negative, including: trends in operating income or losses; currently available information about future years; future reversals of existing taxable temporary differences; future taxable income exclusive of reversing temporary differences and carryforwards; taxable income in prior carryback years if carryback is permitted under the tax law; and tax planning strategies that would accelerate taxable amounts to utilize expiring carryforwards, change the character of taxable and deductible amounts from ordinary income or loss to capital gain or loss, or switch from tax-exempt to taxable investments. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. As of December 31, 2019, we maintained a full valuation allowance on our net deferred tax assets in all jurisdictions, with the exception of the $237,500 alternative minimum tax (“AMT”) credit carryforward that is now considered refundable in post-fiscal year 2019 after the enactment of the TCJA. The Company has a total of $950,000 in federal AMT credit carryforward. Of this amount, $475,000 was pending receipt as of December 31, 2019 and received in the third quarter of our fiscal year 2020. The remaining $475,000 has an indefinite life and will be 50% refundable on the Company’s June 30, 2020 tax return, with the remainder being refundable by fiscal year 2022. We do not have sufficient evidence of future income to conclude that it is more likely than not that the Company will realize its entire deferred tax inventory in any of its jurisdictions (United States and Germany). Therefore, we have recognized a full valuation allowance on the Company’s deferred tax inventory, other than the alternative minimum tax credit. We reevaluate our conclusions regarding the valuation allowance quarterly and will make appropriate adjustments as necessary in the period in which significant changes occur. Unrecognized Tax Benefits We have evaluated our unrecognized tax benefits and determined that there has not been a material change in the amount of such benefits for the three months or six months ended December 31, 2019. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | |
Stock-Based Compensation | 10 . Stock-Based Compensation We have a stock incentive plan providing for the grant of incentive stock options to employees and non-qualified stock options to employees and directors. The Compensation Committee of the Board of Directors (“Compensation Committee”) administers the Amended and Restated 2011 Stock Incentive Plan (the"Stock Plan"). Under the Stock Plan, the Compensation Committee may award stock options and shares of common stock on a restricted basis. The Stock Plan also specifically provides for stock appreciation rights and authorizes the Compensation Committee to provide, either at the time of the grant of an award under the Stock Plan or otherwise, that such award may be cashed out upon terms and conditions to be determined by the Compensation Committee or the Board of Directors. Option awards are granted with an exercise price equal to the market price of our stock at the date of grant. We recognize stock compensation expense in accordance with ASC 718-10 over the requisite service period of the individual grantees, which generally equals the vesting period. All of our stock compensation is accounted for as equity instruments. The Stock Plan became effective November 1, 2011 and replaced the 2001 Stock Option Plan that expired on October 31, 2011. At December 31, 2019, there were 787,219 shares available for future grants. We recorded $96,000 and $15,000 to general and administrative expense for stock-based compensation related to the issuance of stock options and restricted stock to employees and board members during the three months ended December 31, 2019 and 2018, respectively. We recorded $195,000 and $75,000 to general and administrative expense for stock-based compensation related to the issuance of stock options and restricted stock to employees and board members during the six months ended December 31, 2019 and 2018, respectively. Restricted Stock Awards As of December 31, 2019, we had 162,500 service-condition restricted stock awards outstanding at a weighted-average grant date fair value of $3.98. Stock-based compensation expense for the three months and six months ended December 31, 2019 and 2018 resulted from vesting of shares over their respective vesting periods. Total remaining compensation cost of restricted stock awards issued but not yet vested as of December 31, 2019 is $275,000, which is expected to be recognized over the weighted average period of 2.02 years. Restricted Stock Awards to be Granted Under the Company’s 2019 Bonus Plan Under the terms of the Company’s 2019 bonus plan, the Company will grant $350,000 of restricted stock to eligible participants, based upon the Company’s net asset value as of December 31, 2019. The restricted stock award will be subject to the Stock Plan, which requires a service period following the restricted stock award grant. The share-based compensation expense attributable to these awards will be recorded over the requisite service period starting with the service inception date and ending on the final vest date. Stock Options We use a Black-Scholes option valuation model to determine the grant date fair value of stock-based compensation for stock options. The Black-Scholes model incorporates various assumptions including the expected term of awards, volatility of stock price, risk-free rates of return, and dividend yield. The expected term of an award is no less than the option vesting period and is based on our expectations under our current operating environment. Expected volatility is based upon the historical volatility of the Company’s stock price. The risk-free interest rate is approximated using rates available on U.S. Treasury securities with a remaining term similar to the option’s expected life. The dividend yield used in the Black-Scholes option valuation model is based upon expectations of cash dividends. As of December 31, 2019, we had 15,000 stock options outstanding, of which 5,000 options had vested and were exercisable, at a weighted-average exercise price of $5.42, with a weighted-average remaining contractual term of 8.39 years. The total intrinsic value of options both outstanding and exercisable was nil for the three months and six months ended December 31, 2019 and 2018. Total remaining compensation cost of stock options granted, but not yet vested, at December 31, 2019 is $8,000, which is expected to be recognized over the weighted average remaining period of 1.38 years. We generally issue new shares to satisfy option exercises. During the three months and six months ended December 31, 2019 and 2018, there were no grants, forfeitures, or exercises of stock options. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | 11. Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of taxes, for the six months ended December 31, 2019: Pension and Currency Unrealized Postretirement Translation Loss on Benefit Plans Adjustments Investments Total (Amounts in thousands) Balance at June 30, 2019 $ (1,707) $ 496 $ (5,368) $ (6,579) Other comprehensive income (loss) before reclassifications 44 56 (1,609) (1,509) Effect of exchange rates on the pension plans 24 (24) — — Net current period other comprehensive income (loss) 68 32 (1,609) (1,509) Balance at December 31, 2019 $ (1,639) $ 528 $ (6,977) $ (8,088) |
Segments
Segments | 6 Months Ended |
Dec. 31, 2019 | |
Segments | |
Segments | 12. Segments We operate in two segments: (i) “MCA Operations,” conducted primarily through LMCS, and (ii) “Real Estate Operations,” conducted primarily through Recur. Our President and Chief Executive Officer is our chief operating decision maker (the “CODM”). Our CODM uses revenue and operating income to evaluate the profitability of our operating segments; all other financial information is reviewed by the CODM on a consolidated basis. Segment operating contribution reflects segment revenue less operating expenses that are directly attributable to the operating segment, not including corporate and unallocated expenses. All of our principal operations and assets are located in the United States. Segment operating results are as follows (amounts in thousands): Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Segment revenue: MCA advance income $ 990 $ 185 $ 1,795 $ 316 Syndication fees 388 — 938 — MCA originator loan income 235 — 439 — Other MCA revenue 62 — 155 — MCA operations revenues 1,675 185 3,327 316 Real estate operations revenues 112 185 191 220 Consolidated revenues 1,787 370 3,518 536 Segment operating expenses: MCA operations 199 — 988 — Real estate operations — — — — Add: Corporate expenses 997 1,287 1,888 2,122 Consolidated operating expenses 1,196 1,287 2,876 2,122 Segment operating income (loss): MCA operations 1,476 185 2,339 316 Real estate operations 112 185 191 220 Add: Corporate (997) (1,287) (1,888) (2,122) Consolidated operating income (loss) $ 591 $ (917) $ 642 $ (1,586) Segment assets are as follows: December 31, June 30, 2019 2019 (Amounts in thousands) Segment assets: MCA operations $ 22,090 $ 18,277 Real estate operations 5,173 7,379 Add: Corporate assets 50,519 47,190 Corporate intercompany loan to LMCS (10,348) (10,372) Total consolidated assets $ 67,434 $ 62,474 |
Leases
Leases | 6 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | 13. Leases The Company leases office space in two locations: (i) Duluth, Georgia, and (ii) New York City, New York. The Duluth, Georgia lease expired on January 31, 2020 and the New York City, New York lease expires in 2023. The Company signed a new lease for a corporate headquarters location in Duluth, Georgia, that commenced in January 2020 and expires on May 31, 2023. Minimum payment commitments over the life of the new lease are $271,000. We prospectively adopted ASU 2016-02 effective for the fiscal year ended June 30, 2019. For leases with a term of 12 months or less, we made an accounting policy election not to recognize lease assets and lease liabilities. The following information represents the amounts included in the financial statements related to leases (amounts in thousands): Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Operating lease cost $ 54 $ 1 $ 109 $ 2 Total lease cost $ 54 $ 1 $ 109 $ 2 Gross sublease income 48 — 100 — Operating cash flows from operating leases (6) (1) (9) (2) Right-of-use assets obtained in exchange for new operating lease liabilities — — — — Weighted-average remaining lease for new operating lease liabilities term - operating leases months N/A months N/A Weighted-average discount rate - operating leases 6.50 % N/A 6.50 % N/A Operating lease cost is reported as part of general and administrative expenses on the consolidated statement of operations. Sublease income is reported as a reduction of general and administrative expenses on the consolidated statement of operations. Operating cash flows from leases are reported as part of net income on the consolidated statement of cash flows. Right-of-use assets obtained in exchange for new operating lease liabilities are reported as part of other long-term assets on the consolidated balance sheet. The short-term portions of the operating lease liabilities are reported as part of accounts payable and accrued expenses on the consolidated balance sheet. The long-term portions of the operating lease liabilities are reported as part of other long-term liabilities on the consolidated balance sheet. At December 31, 2019, lease payments for operating leases for the next five years are as follows: Fiscal Year Ending June 30 Amount 2020 $ 91,000 2021 183,000 2022 183,000 2023 46,000 The total lease liability on the balance sheet as of December 31, 2019 is $461,000. Total unrecognized expected interest expense related to the lease is $41,000. |
Commitments and Contingencies a
Commitments and Contingencies and Related Party Transactions | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies and Related Party Transactions | |
Commitments and Contingencies and Related Party Transactions | 14. Commitments and Contingencies and Related Party Transactions Severance Arrangements Pursuant to the terms of the employment agreements with our Chief Executive Officer, Chief Financial Officer, and other senior employees, employment may be terminated either by the respective employee or by the Company at any time. In the event an agreement is terminated by us without cause, or in certain circumstances terminates constructively or expires, the terminated employee will receive severance compensation for a period from six to 12 months, depending on the employee, and bonus severance. Additionally, if terminated, our Chief Executive Officer, Chief Financial Officer and certain other senior executives will continue to receive the employer portion of health coverage during their severance period. At December 31, 2019, the maximum contingent liability under these agreements was $760,000 in the aggregate. In February 2019, the Company entered into a management agreement (as amended, the “Management Agreement”) with CIDM LLC (“CIDM” or the “Asset Manager”) under which CIDM provides consulting services and advice to the Board of Directors and the Company’s management regarding asset allocation and acquisition strategy. CIDM exclusively manages the Company’s portfolio of publicly traded investments and, subject to the terms of the Management Agreement and the guidelines set forth therein, maintains investment authority over such portfolio, in order to better position the Company to increase its return on assets. CIDM is an affiliate of the Company’s largest stockholder, JDS1, LLC. Under the terms of the Management Agreement, in addition to a quarterly cash payment to compensate CIDM for expenses incurred in connection with providing these services, the Company pays for these services through the issuance of cash-settled stock appreciation rights (“SARs”) based on increases in the asset value of the Company. Based on the terms of the SARs and the Management Agreement, CIDM may not exercise the SARs unless there are certain qualifying changes of control of the Company (which does not include any change of control related to the stock ownership of CIDM or its affiliates, including JDS1, LLC). CIDM and its affiliates are subject to standard trading restrictions and standstill provisions during the effective term of the Management Agreement. Based on the Company’s total assets as of December 31, 2019 and growth in net asset value (as defined in the Management Agreement) over the course of calendar year 2019, we expect to issue an additional 460,814 SARs to CIDM during the third quarter of our fiscal year 2020. The contingent liability associated with this cash-settled SAR commitment is dependent on certain change-of-control events. Neither the amount nor the range of possible amounts associated with this contingent liability is able to be estimated at the present time, as the future stock price of the Company cannot be predicted, but such liability is not limited by the terms of the Management Agreement and if realized may be material to the financial condition and results of operation of the Company. |
Overview of the Business and _2
Overview of the Business and Basis of Presentation (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
Overview of the Business and Basis of Presentation | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of purchase price over the fair value of the net assets of businesses acquired. We review goodwill at least annually for impairment. In our evaluation of goodwill impairment, we perform a qualitative assessment that requires management judgment and the use of estimates to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. An entity has an unconditional option to bypass the qualitative assessment for any reporting unit and proceed directly to performing the quantitative goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. We perform our annual impairment tests as of December 31 of each year, unless circumstances indicate the need to accelerate the timing of the tests. We completed our annual impairment test of goodwill as of December 31, 2019 and concluded that there was no impairment. Intangible assets include trade name, non-competition agreements, and syndicate participant/originator relationships, are subject to amortization over their respective useful lives, and are classified in definite-lived intangibles, net in the accompanying consolidated balance sheets. These intangibles are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be fully recoverable. If facts and circumstances indicate that the carrying value might not be recoverable, projected undiscounted net cash flows associated with the related assets or groups of assets over their estimated remaining useful lives is compared against their respective carrying amounts. If an asset is found to be impaired, the impairment charge will be measured as the amount by which the carrying amount of an asset exceeds its fair value. Commercial and Mortgage Loans and Loan Losses We have potential exposure to transaction losses as a result of uncollectability of commercial mortgage and other loans. We base our reserve estimates on prior charge-off history and currently available information that is indicative of a transaction loss. We reflect additions to the reserve in current operating results, while we make charges to the reserve when we incur losses. We reflect recoveries in the reserve for transaction losses as collected. We have the intent and ability to hold these loans to maturity or payoff and as such, have classified these loans as held-for-investment. These loans are reported on the balance sheet at the outstanding principal balance adjusted for any charge-offs, allowance for loan losses, and deferred fees or costs. As of December 31, 2019, we have not recorded any charge-offs, and believe that an allowance for loan losses is not required. |
Land Investment | Land Investment Land investment assets are stated at acquired cost. Pre-acquisition and development costs are capitalized. Gains and losses resulting from the disposition of real estate are included in operations. As of December 31, 2019, all land held by the Company is considered to be held for use and development. |
Basic and Diluted Earnings (Loss) per Share | Basic and Diluted Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during each fiscal period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during each fiscal period including dilutive common share equivalents. Under the treasury stock method, incremental shares representing the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued are included in the computation. Weighted-average common share equivalents of 7,598 and 10,937 for the three months ended December 31, 2019 and 2018, respectively, were excluded from the calculation, as their effect would have been anti-dilutive. Weighted-average common share equivalents of 8,644 and 13,420 for the six months ended December 31, 2019 and 2018, respectively, were excluded from the calculation, as their effect would have been anti-dilutive. The following table presents a reconciliation of the numerators and denominators of basic and diluted net income (loss) per share for the periods indicated: Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Basic weighted average number of shares outstanding 8,758,710 9,034,368 8,757,433 9,069,947 Effect of dilutive securities: Restricted stock 82,160 — 68,150 — Diluted weighted average number of shares outstanding 8,840,870 9,034,368 8,825,583 9,069,947 |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, we consider the most advantageous market in which it would transact and assumptions that market participants would use when pricing the asset or liability. Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements and Disclosures requires certain disclosures around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: · Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities; · Level 2 Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and · Level 3 Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which include the use of management estimates. Our investment portfolio consists of money market funds, equity securities, and corporate debt. All highly liquid investments with an original maturity of three months or less when purchased are considered to be cash equivalents. All cash equivalents are carried at cost less any unamortized premium or discount, which approximates fair value. All investments with original maturities of more than three months are classified as available-for-sale, trading or held-to-maturity investments. Our marketable securities, other than warrants and equity securities, are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of tax, reported in stockholders’ equity as a component of accumulated other comprehensive income or loss. Warrants to purchase stock are held as trading securities and are reported at fair value with gains and losses reported within the accompanying consolidated statements of operations. Interest on securities is recorded in interest income. Dividends paid by securities are recorded in other income. Any realized gains or losses are reported in the accompanying consolidated statements of operations. Equity securities are reported at fair value, with unrealized gains and losses resulting from adjustments to fair value reported within our consolidated statements of operations. We use Level 3 inputs to determine the fair value of our preferred stock investments. The Company has elected the measurement alternative and will record the investments at cost adjusted for observable price changes for an identical or similar investment of the same issuer. Observable price changes and impairment indicators will be assessed each reporting period. We also use Level 3 inputs to determine the fair value of our contingent consideration and common stock purchase warrants related to our acquisition of the assets of Old LuxeMark (the “LuxeMark Acquisition”). The Company uses a Monte Carlo simulation technique to value the performance-based contingent consideration and common stock purchase warrants. This technique is a probabilistic model which relies on repeated random sampling to obtain numerical results. The concluded values represent the means of those results. We provide fair value measurement disclosures of our securities in accordance with one of the three levels of fair value measurement. Our financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2019 and June 30, 2019 are as follows: As of Quoted December 31, Prices in Observable Unobservable 2019 Active Markets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Amounts in thousands) Cash $ 7,109 $ 7,109 $ — $ — Money market funds 4,934 4,934 — — Cash and cash equivalents $ 12,043 $ 12,043 $ — $ — Common stock $ 2,756 $ 2,756 $ — $ — Preferred stock 2,883 — — 2,883 Equity investments $ 5,639 $ 2,756 $ — $ 2,883 Corporate debt $ 22,776 $ — $ 22,776 $ — Available-for-sale investments $ 22,776 $ — $ 22,776 $ — Contingent consideration - cash earn-out $ 2,520 $ — $ — $ 2,520 Contingent consideration - warrants 170 — — 170 Liabilities $ 2,690 $ — $ — $ 2,690 Quoted As of Prices in Observable Unobservable June 30, 2019 Active Markets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Amounts in thousands) Cash $ 5,223 $ 5,223 $ — $ — Money market funds 2,860 2,860 — — Cash and cash equivalents $ 8,083 $ 8,083 $ — $ — Common stock warrants $ 1 $ 1 $ — $ — Common stock 4,521 4,521 — — Preferred stock 2,883 — — 2,883 Equity investments $ 7,405 $ 4,522 $ — $ 2,883 Corporate debt $ 20,393 $ — $ 20,393 $ — Available-for-sale investments $ 20,393 $ — $ 20,393 $ — Contingent consideration - cash earn-out $ 2,890 $ — $ — $ 2,890 Contingent consideration - warrants 200 — — 200 Liabilities $ 3,090 $ — $ — $ 3,090 The carrying amounts of certain financial instruments, including cash equivalents and MCAs, approximate their fair values due to their short-term nature. The following table provides a reconciliation of the beginning and ending balances for the Company’s assets and obligations measured at fair value using Level 3 inputs: Assets Obligations Preferred Contingent Stock Consideration (Amounts in thousands) Balance at June 30, 2019 $ 2,883 $ 3,090 Fair value adjustment to contingent consideration — (400) Balance at December 31, 2019 $ 2,883 $ 2,690 The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 ($ amounts in thousands): Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Equity securities, fair value Preferred stock $ 2,883 cost, or observable price changes not applicable not applicable Contingent consideration Contingent cash payments $ 2,520 Monte Carlo simulations discount rate 12.0 % expected volatility 25.0 % drift rate 1.6 % credit spread 8.0 % Contingent warrants $ 170 Black-Scholes, Monte Carlo expected term 5.37 years expected volatility 25.0 % risk free rate 1.7 % dividend yield 0.0 % The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 ($ amounts in thousands): Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Equity securities, fair value Preferred stock $ 2,883 cost, or observable price changes not applicable not applicable Contingent consideration Contingent cash payments $ 2,890 Monte Carlo simulations discount rate 12.0 % expected volatility 25.0 % drift rate 1.7 % credit spread 8.0 % Contingent warrants $ 200 Black-Scholes, Monte Carlo simulations expected term 6.25 years expected volatility 30.0 % risk free rate 2.6 % dividend yield 0.0 % |
Overview of the Business and _3
Overview of the Business and Basis of Presentation (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Overview of the Business and Basis of Presentation | |
Schedule of weighted average number of shares | The following table presents a reconciliation of the numerators and denominators of basic and diluted net income (loss) per share for the periods indicated: Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Basic weighted average number of shares outstanding 8,758,710 9,034,368 8,757,433 9,069,947 Effect of dilutive securities: Restricted stock 82,160 — 68,150 — Diluted weighted average number of shares outstanding 8,840,870 9,034,368 8,825,583 9,069,947 |
Schedule of financial assets and liabilities that were measured at fair value on a recurring basis | As of Quoted December 31, Prices in Observable Unobservable 2019 Active Markets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Amounts in thousands) Cash $ 7,109 $ 7,109 $ — $ — Money market funds 4,934 4,934 — — Cash and cash equivalents $ 12,043 $ 12,043 $ — $ — Common stock $ 2,756 $ 2,756 $ — $ — Preferred stock 2,883 — — 2,883 Equity investments $ 5,639 $ 2,756 $ — $ 2,883 Corporate debt $ 22,776 $ — $ 22,776 $ — Available-for-sale investments $ 22,776 $ — $ 22,776 $ — Contingent consideration - cash earn-out $ 2,520 $ — $ — $ 2,520 Contingent consideration - warrants 170 — — 170 Liabilities $ 2,690 $ — $ — $ 2,690 Quoted As of Prices in Observable Unobservable June 30, 2019 Active Markets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Amounts in thousands) Cash $ 5,223 $ 5,223 $ — $ — Money market funds 2,860 2,860 — — Cash and cash equivalents $ 8,083 $ 8,083 $ — $ — Common stock warrants $ 1 $ 1 $ — $ — Common stock 4,521 4,521 — — Preferred stock 2,883 — — 2,883 Equity investments $ 7,405 $ 4,522 $ — $ 2,883 Corporate debt $ 20,393 $ — $ 20,393 $ — Available-for-sale investments $ 20,393 $ — $ 20,393 $ — Contingent consideration - cash earn-out $ 2,890 $ — $ — $ 2,890 Contingent consideration - warrants 200 — — 200 Liabilities $ 3,090 $ — $ — $ 3,090 |
Schedule of the Company's assets and obligations measured at fair value using Level 3 inputs | The following table provides a reconciliation of the beginning and ending balances for the Company’s assets and obligations measured at fair value using Level 3 inputs: Assets Obligations Preferred Contingent Stock Consideration (Amounts in thousands) Balance at June 30, 2019 $ 2,883 $ 3,090 Fair value adjustment to contingent consideration — (400) Balance at December 31, 2019 $ 2,883 $ 2,690 |
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis | The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 ($ amounts in thousands): Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Equity securities, fair value Preferred stock $ 2,883 cost, or observable price changes not applicable not applicable Contingent consideration Contingent cash payments $ 2,520 Monte Carlo simulations discount rate 12.0 % expected volatility 25.0 % drift rate 1.6 % credit spread 8.0 % Contingent warrants $ 170 Black-Scholes, Monte Carlo expected term 5.37 years expected volatility 25.0 % risk free rate 1.7 % dividend yield 0.0 % The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 ($ amounts in thousands): Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Equity securities, fair value Preferred stock $ 2,883 cost, or observable price changes not applicable not applicable Contingent consideration Contingent cash payments $ 2,890 Monte Carlo simulations discount rate 12.0 % expected volatility 25.0 % drift rate 1.7 % credit spread 8.0 % Contingent warrants $ 200 Black-Scholes, Monte Carlo simulations expected term 6.25 years expected volatility 30.0 % risk free rate 2.6 % dividend yield 0.0 % |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Investments. | |
Summary of Available-For-Sale Securities | Unrealized Unrealized December 31, 2019 Cost Gains Losses Fair Value (Amounts in thousands) Equity securities Common stock and common stock options $ 4,098 $ 69 $ (1,411) $ 2,756 Common stock warrants 288 — (288) — Preferred stock 2,883 — — 2,883 Total equity securities $ 7,269 $ 69 $ (1,699) $ 5,639 Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed-maturity securities Corporate debt $ 29,752 $ 138 $ (7,114) $ 22,776 Total fixed-maturity securities $ 29,752 $ 138 $ (7,114) $ 22,776 Unrealized Unrealized June 30, 2019 Cost Gains Losses Fair Value (Amounts in thousands) Equity securities Common stock $ 5,706 $ — $ (1,185) $ 4,521 Common stock warrants 288 — (287) 1 Preferred stock 2,883 — — 2,883 Total equity securities $ 8,877 $ — $ (1,472) $ 7,405 Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed-maturity securities Corporate debt $ 25,761 $ — $ (5,368) $ 20,393 Total fixed-maturity securities $ 25,761 $ — $ (5,368) $ 20,393 |
Disclosure Of Information Regarding Maturity Of Available For Sale Of Securities | Amortized Cost Fair Value (Amounts in thousands) Fixed-maturity securities Due after one year through three years $ 21,769 $ 15,245 Due after three years through five years — — Due after five years through 10 years 7,983 7,531 Total fixed-maturity securities $ 29,752 $ 22,776 |
Mortgage and Commercial Loans_2
Mortgage and Commercial Loans Receivable (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Carrying Other Loans Receivable Value Balance at July 1, 2019 $ 2,750 Additions during the period: Borrowings 2,750 Balance at December 31, 2019 $ 5,500 |
Mortgage Receivable [Member] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Provision Principal Deferred for Loan Carrying Mortgage Loans Receivable Balance Fees Loss Value (Amounts in thousands) Balance at July 1, 2019 $ 4,195 $ (81) $ — $ 4,114 Additions during the period: Amortization of deferred fees — 67 — 67 Deductions during the period: Collections of principal (2,554) — — (2,554) Balance at December 31, 2019 $ 1,641 $ (14) $ — $ 1,627 |
Advances Receivable, net (Table
Advances Receivable, net (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Advances Receivable, net | |
Allowance for Credit Losses on Financing Receivables | Provision Advance Deferred for Credit Carrying Principal Fees Losses Value (Amounts in thousands) Merchant cash advances $ 4,905 $ — $ (359) $ 4,546 Aviation advance 5,000 (193) — 4,807 Advances receivable, net $ 9,905 $ (193) $ (359) $ 9,353 |
Schedule of advances receivable | Changes in the allowance for MCA credit losses are as follows (amounts in thousands): Allowance for credit losses, July 1, 2019 $ 736 Provision for credit losses 396 Receivables charged off (911) Recoveries of receivables previously charged off 138 Allowance for credit losses, December 31, 2019 $ 359 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Accounts Payable and Accrued Expenses | |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consist of the following: December 31, June 30, 2019 2019 (Amounts in thousands) Accounts payable, trade $ 199 $ 221 Accrued compensation 412 56 Unrecognized income from research and development tax credits 35 35 Other accrued expenses 240 348 Total accounts payable and accrued expenses $ 886 $ 660 |
Pensions (Tables)
Pensions (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Pensions | |
Schedule of components of net periodic pension cost of our German defined benefit pension plans recognized in earnings | Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Net Periodic Benefit Cost Interest cost $ 8 $ 15 $ 15 $ 30 Expected return on plan assets (1) (1) (2) (2) Recognized actuarial loss 22 16 44 32 Net periodic benefit cost $ 29 $ 30 $ 57 $ 60 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of components of income (loss) from operations | Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 United States $ 3,058 $ (1,470) $ 6,832 $ (1,428) Foreign (41) (60) (81) (103) Income (loss) from operations $ 3,017 $ (1,530) $ 6,751 $ (1,531) |
Schedule of components of the (benefit) provision for income taxes | Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Domestic $ (17) $ — $ 156 $ 2 Foreign — — — — Total $ (17) $ — $ 156 $ 2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Pension and Currency Unrealized Postretirement Translation Loss on Benefit Plans Adjustments Investments Total (Amounts in thousands) Balance at June 30, 2019 $ (1,707) $ 496 $ (5,368) $ (6,579) Other comprehensive income (loss) before reclassifications 44 56 (1,609) (1,509) Effect of exchange rates on the pension plans 24 (24) — — Net current period other comprehensive income (loss) 68 32 (1,609) (1,509) Balance at December 31, 2019 $ (1,639) $ 528 $ (6,977) $ (8,088) |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Segments | |
Schedule of Segment operating results | Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Segment revenue: MCA advance income $ 990 $ 185 $ 1,795 $ 316 Syndication fees 388 — 938 — MCA originator loan income 235 — 439 — Other MCA revenue 62 — 155 — MCA operations revenues 1,675 185 3,327 316 Real estate operations revenues 112 185 191 220 Consolidated revenues 1,787 370 3,518 536 Segment operating expenses: MCA operations 199 — 988 — Real estate operations — — — — Add: Corporate expenses 997 1,287 1,888 2,122 Consolidated operating expenses 1,196 1,287 2,876 2,122 Segment operating income (loss): MCA operations 1,476 185 2,339 316 Real estate operations 112 185 191 220 Add: Corporate (997) (1,287) (1,888) (2,122) Consolidated operating income (loss) $ 591 $ (917) $ 642 $ (1,586) |
Schedule of Segment assets | December 31, June 30, 2019 2019 (Amounts in thousands) Segment assets: MCA operations $ 22,090 $ 18,277 Real estate operations 5,173 7,379 Add: Corporate assets 50,519 47,190 Corporate intercompany loan to LMCS (10,348) (10,372) Total consolidated assets $ 67,434 $ 62,474 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of financial statements related to leases | Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Operating lease cost $ 54 $ 1 $ 109 $ 2 Total lease cost $ 54 $ 1 $ 109 $ 2 Gross sublease income 48 — 100 — Operating cash flows from operating leases (6) (1) (9) (2) Right-of-use assets obtained in exchange for new operating lease liabilities — — — — Weighted-average remaining lease for new operating lease liabilities term - operating leases months N/A months N/A Weighted-average discount rate - operating leases 6.50 % N/A 6.50 % N/A |
Schedule of operating leases | At December 31, 2019, lease payments for operating leases for the next five years are as follows: Fiscal Year Ending June 30 Amount 2020 $ 91,000 2021 183,000 2022 183,000 2023 46,000 |
Overview of the Business and _4
Overview of the Business and Basis of Presentation - Numerators and denominators of basic and diluted (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Overview of the Business and Basis of Presentation | ||||
Basic weighted average number of shares outstanding | 8,758,710 | 9,034,368 | 8,757,433 | 9,069,947 |
Effect of dilutive securities: | ||||
Restricted stock | 82,160 | 68,150 | ||
Diluted weighted average number of shares outstanding | 8,840,870 | 9,034,368 | 8,825,583 | 9,069,947 |
Overview of the Business and _5
Overview of the Business and Basis of Presentation - Financial assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Liabilities Fair Value Disclosure | $ 2,690 | $ 3,090 |
Preferred Stock [Member] | ||
Assets, Fair Value Disclosure | 2,883 | 2,883 |
Available-for-sale Securities [Member] | ||
Assets, Fair Value Disclosure | 22,776 | 20,393 |
Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 12,043 | 8,083 |
Equity Securities [Member] | ||
Assets, Fair Value Disclosure | 5,639 | 7,405 |
Equity Securities [Member] | Common Stock [Member] | ||
Assets, Fair Value Disclosure | 2,756 | 4,521 |
Equity Securities [Member] | Common stock warrants | ||
Assets, Fair Value Disclosure | 1 | |
Corporate Debt Securities [Member] | Available-for-sale Securities [Member] | ||
Assets, Fair Value Disclosure | 22,776 | 20,393 |
Cash [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 7,109 | 5,223 |
Money Market Funds [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 4,934 | 2,860 |
Fair Value, Inputs, Level 1 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Preferred Stock [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Available-for-sale Securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 12,043 | 8,083 |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ||
Assets, Fair Value Disclosure | 2,756 | 4,522 |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | Common Stock [Member] | ||
Assets, Fair Value Disclosure | 2,756 | 4,521 |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | Common stock warrants | ||
Assets, Fair Value Disclosure | 1 | |
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | Available-for-sale Securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 7,109 | 5,223 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 4,934 | 2,860 |
Fair Value, Inputs, Level 2 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Preferred Stock [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Available-for-sale Securities [Member] | ||
Assets, Fair Value Disclosure | 22,776 | 20,393 |
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | Common Stock [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | Common stock warrants | ||
Assets, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Available-for-sale Securities [Member] | ||
Assets, Fair Value Disclosure | 22,776 | 20,393 |
Fair Value, Inputs, Level 2 [Member] | Cash [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Liabilities Fair Value Disclosure | 2,690 | 3,090 |
Fair Value, Inputs, Level 3 [Member] | Preferred Stock [Member] | ||
Assets, Fair Value Disclosure | 2,883 | 2,883 |
Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ||
Assets, Fair Value Disclosure | 2,883 | 2,883 |
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | Common Stock [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | Common stock warrants | ||
Assets, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | Available-for-sale Securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Cash [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Contingent Consideration [Member] | ||
Liabilities Fair Value Disclosure | 2,520 | 2,890 |
Contingent Consideration [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Contingent Consideration [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Contingent Consideration [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities Fair Value Disclosure | 2,520 | 2,890 |
Common stock warrants | ||
Liabilities Fair Value Disclosure | 170 | 200 |
Common stock warrants | Fair Value, Inputs, Level 1 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Common stock warrants | Fair Value, Inputs, Level 2 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Common stock warrants | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities Fair Value Disclosure | $ 170 | $ 200 |
Overview of the Business and _6
Overview of the Business and Basis of Presentation - Assets and obligations measured at fair value using Level 3 (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Contingent Consideration [Member] | |
Balance at June 30, 2019 | $ 3,090 |
Fair value adjustment to contingent consideration | (400) |
Balance at December 31, 2019 | 2,690 |
Preferred Stock [Member] | |
Balance at June 30, 2019 | 2,883 |
Fair value adjustment to contingent consideration | 0 |
Balance at December 31, 2019 | $ 2,883 |
Overview of the Business and _7
Overview of the Business and Basis of Presentation - Valuation methodology and unobservable inputs (Details) $ in Thousands | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) |
Liabilities Fair Value Disclosure | $ 2,690 | $ 3,090 |
Preferred Stock [Member] | ||
Assets, Fair Value Disclosure | 2,883 | 2,883 |
Fair Value, Inputs, Level 1 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Preferred Stock [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Preferred Stock [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Liabilities Fair Value Disclosure | 2,690 | 3,090 |
Fair Value, Inputs, Level 3 [Member] | Preferred Stock [Member] | ||
Assets, Fair Value Disclosure | 2,883 | 2,883 |
Contingent Consideration [Member] | ||
Liabilities Fair Value Disclosure | 2,520 | 2,890 |
Contingent Consideration [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Contingent Consideration [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Contingent Consideration [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities Fair Value Disclosure | 2,520 | 2,890 |
Common stock warrants | ||
Liabilities Fair Value Disclosure | 170 | 200 |
Common stock warrants | Fair Value, Inputs, Level 1 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Common stock warrants | Fair Value, Inputs, Level 2 [Member] | ||
Liabilities Fair Value Disclosure | 0 | 0 |
Common stock warrants | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities Fair Value Disclosure | $ 170 | $ 200 |
Measurement Input, Discount Rate [Member] | Monte Carlo simulations [Member] | Contingent Consideration [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 12 | 12 |
Measurement Input, Expected Term [Member] | BlackScholes Monte Carlo Simulations [Member] | Common stock warrants | Fair Value, Inputs, Level 3 [Member] | ||
Warrants and Rights Outstanding, Measurement Input | 5.37 | 6.25 |
Measurement Input, Option Volatility [Member] | Monte Carlo simulations [Member] | Contingent Consideration [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 25 | 25 |
Measurement Input, Option Volatility [Member] | BlackScholes Monte Carlo Simulations [Member] | Common stock warrants | Fair Value, Inputs, Level 3 [Member] | ||
Warrants and Rights Outstanding, Measurement Input | 25 | 30 |
Measurement Input Drift Rate [Member] | Monte Carlo simulations [Member] | Contingent Consideration [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 1.6 | 1.7 |
Measurement Input, Credit Spread [Member] | Monte Carlo simulations [Member] | Contingent Consideration [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 8 | 8 |
Measurement Input, Risk Free Interest Rate [Member] | BlackScholes Monte Carlo Simulations [Member] | Common stock warrants | Fair Value, Inputs, Level 3 [Member] | ||
Warrants and Rights Outstanding, Measurement Input | 1.7 | 2.6 |
Measurement Input Dividend Yield [Member] | BlackScholes Monte Carlo Simulations [Member] | Common stock warrants | Fair Value, Inputs, Level 3 [Member] | ||
Warrants and Rights Outstanding, Measurement Input | 0 | 0 |
Overview of Business and Basis
Overview of Business and Basis of Presentation - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7,598 | 10,937 | 8,644 | 13,420 |
Lm Capital Solutions Llc [Member] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | 80.00% | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | 20.00% |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Jun. 30, 2019 | |
Available-for-sale Debt Securities, Amortized Cost | $ 29,752 | $ 25,761 |
Available-for-sale Equity Securities, Amortized Cost Basis | 7,269 | 8,877 |
Available-for-sale Debt Securities, Unrealized Gains | 138 | |
Available-for-sale Equity Securities, Unrealized Gains | 69 | |
Available-for-sale Debt Securities, Unrealized Losses | (7,114) | (5,368) |
Available-for-sale Equity Securities, Unrealized Losses | (1,699) | (1,472) |
Available-for-sale Securities, Debt Securities | 22,776 | 20,393 |
Equity securities, fair value | 5,639 | 7,405 |
Common Stock [Member] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 4,098 | 5,706 |
Available-for-sale Equity Securities, Unrealized Gains | 69 | |
Available-for-sale Equity Securities, Unrealized Losses | (1,411) | (1,185) |
Equity securities, fair value | 2,756 | 4,521 |
Common stock warrants | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 288 | 288 |
Available-for-sale Equity Securities, Unrealized Losses | (288) | (287) |
Equity securities, fair value | 1 | |
Preferred Stock [Member] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 2,883 | 2,883 |
Equity securities, fair value | 2,883 | 2,883 |
Corporate Debt Securities [Member] | ||
Available-for-sale Debt Securities, Amortized Cost | 29,752 | 25,761 |
Available-for-sale Debt Securities, Unrealized Gains | 138 | |
Available-for-sale Debt Securities, Unrealized Losses | (7,114) | (5,368) |
Available-for-sale Securities, Debt Securities | $ 22,776 | $ 20,393 |
Investments - Fixed-maturity se
Investments - Fixed-maturity securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Investments | ||
Fixed maturity securities Due after one year through three years Amortized Cost | $ 21,769 | |
Fixed maturity securities Due after five years through 10 years Amortized Cost | 7,983 | |
Fixed maturity securities Total fixed maturity securities Amortized Cost | 29,752 | $ 25,761 |
Fixed maturity securities Due after one year through three years Fair Value | 15,245 | |
Fixed maturity securities Due after five years through 10 years Fair Value | 7,531 | |
Fixed maturity securities Total fixed maturity securities Fair Value | $ 22,776 | $ 20,393 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Investments. | ||
Unrealized Gain on Securities | $ 627,000 | $ 158,000 |
Debt and Equity Securities, Realized Gain (Loss) | $ 843,000 | $ 1,919,000 |
Mortgage and Commercial Loans_3
Mortgage and Commercial Loans Receivable - Components, RF (Details) | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Deductions during the period: | |
Carrying Value Balance at December 31, 2019 | $ 7,127,000 |
Mortgage Receivable [Member] | |
Principal Balance at July 1, 2019 | 4,195,000 |
Deferred Fees Balance at July 1, 2019 | (81,000) |
Carrying Value Balance at July 1, 2019 | 4,114,000 |
Deductions during the period: | |
Collections of principal | (2,554,000) |
Additions during the period: | |
New mortgage loans | 67,000 |
Additions during the period: | |
New mortgage loans | 67,000 |
Deductions during the period: | |
Collections of principal | (2,554,000) |
Principal Balance at December 31, 2019 | 1,641,000 |
Deferred Fees Balance at December 31, 2019 | (14,000) |
Carrying Value Balance at December 31, 2019 | $ 1,627,000 |
Mortgage and Commercial Loans_4
Mortgage and Commercial Loans Receivable - Commercial Loan/credit facility (Details) | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Additions during the period: | |
Carrying Value Balance at December 31, 2019 | $ 7,127,000 |
Commercial Loan [Member] | |
Carrying Value Balance at July 1, 2019 | 2,750,000 |
Additions during the period: | |
Borrowings | 2,750,000 |
Carrying Value Balance at December 31, 2019 | $ 5,500,000 |
Mortgage and Commercial Loans_5
Mortgage and Commercial Loans Receivable - Additional Information (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Jul. 01, 2019 | |
Carrying value | $ 7,127,000 | |
Customers defaulted loan | $ 1,400,000 | |
MCA originator [Member] | ||
Term (in years) | 2 years | |
Stated percentage | 17.00% |
Advances Receivable, net - Tota
Advances Receivable, net - Total advances receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Advance Principal | $ 9,905 | |
Deferred Fees | (193) | |
Provision for Credit Losses | (359) | |
Carrying Value | 9,353 | $ 9,389 |
Aviation Advance [Member] | ||
Advance Principal | 5,000 | |
Deferred Fees | (193) | |
Carrying Value | 4,807 | |
Merchant Cash Advances [Member] | ||
Advance Principal | 4,905 | |
Provision for Credit Losses | (359) | |
Carrying Value | $ 4,546 |
Advances Receivable, net - Chan
Advances Receivable, net - Changes in the allowance for MCA credit losses (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Advances Receivable, net | ||
Allowance for credit losses, July 1, 2019 | $ 736 | |
Provision for credit losses | 396 | $ 495 |
Receivables charged off | (911) | |
Recoveries of receivables previously charged off | 138 | |
Allowance for credit losses, December 31, 2019 | $ 359 |
Advances Receivable, net - Addi
Advances Receivable, net - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Percentage of Merchant Cash Advances Originated through Single Merchant Cash Advance Funder | 100.00% | 100.00% |
Aviation Advance [Member] | ||
Payments to Acquire Receivables | $ 5,000 | $ 8,000 |
Proceeds from Collection of Notes Receivable | $ 3,000 | $ 3,000 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Accounts Payable and Accrued Expenses | ||
Accounts payable, trade | $ 199 | $ 221 |
Accrued compensation | 412 | 56 |
Unrecognized income from research and development tax credits | 35 | 35 |
Other accrued expenses | 240 | 348 |
Total accounts payable and accrued expenses | $ 886 | $ 660 |
Pensions (Details)
Pensions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Periodic Benefit Cost | ||||
Interest cost | $ 8 | $ 15 | $ 15 | $ 30 |
Expected return on plan assets | (1) | (1) | (2) | (2) |
Recognized actuarial loss | 22 | 16 | 44 | 32 |
Net periodic benefit cost | $ 29 | $ 30 | $ 57 | $ 60 |
Term Loan (Details)
Term Loan (Details) - Term Loan [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Jun. 30, 2019 | |
Term Loan | ||
Debt instrument, term | 18 months | |
Debt instrument, face amount | $ 1,600,000 | |
Interest rate (as a percent) | 4.53% | |
Variable interest rate | 2.75% | |
Interest costs capitalized | $ 44,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes | ||||
United States | $ 3,058 | $ (1,470) | $ 6,832 | $ (1,428) |
Foreign | (41) | (60) | (81) | (103) |
Income (loss) from operations | $ 3,017 | $ (1,530) | $ 6,751 | $ (1,531) |
Income Taxes - Component of pro
Income Taxes - Component of provision for income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | ||||
Domestic | $ (17) | $ 0 | $ 156 | $ 2 |
Foreign | 0 | 0 | 0 | 0 |
Total | $ (17) | $ 0 | $ 156 | $ 2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 58,429,000 | |
Income Tax Credits and Adjustments | $ 950,000 | |
Income Tax Credits and Adjustments, Subject to Refund | 475,000 | |
Income Tax Credits and Adjustments, Subject to Indefinite Life | $ 475,000 | |
Income Tax Credits and Adjustments, Refundable Percentage | 50.00% | |
Deferred Tax Assets, Net, Noncurrent | $ 237,000 | 475,000 |
Prepaid Expenses and Other Current Assets [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 237,500 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 42,563,000 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 8,296,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common Stock, Capital Shares Reserved for Future Issuance | 787,219 | 787,219 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 8 years 4 months 21 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 15,000 | 15,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 5,000 | 5,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 5.42 | $ 5.42 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | $ 0 | 0 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | $ 0 | $ 0 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 0 | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 0 | 0 | 0 | 0 |
Employee Stock Option [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 8,000 | $ 8,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 4 months 17 days | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 162,500 | 162,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 3.98 | $ 3.98 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 7 days | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 275,000 | $ 275,000 | ||
Restricted Stock [Member] | 2019 Bonus Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Contributions by Employer | 350,000 | |||
General and Administrative Expense [Member] | ||||
Allocated Share-based Compensation Expense | $ 96,000 | $ 15,000 | $ 195,000 | $ 75,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance at June 30, 2019 | $ (6,579) |
Other comprehensive income (loss) before reclassifications | (1,509) |
Net current period other comprehensive income (loss) | (1,509) |
Ending Balance at December 31, 2019 | (8,088) |
Pension and Postretirement Benefit Plans [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance at June 30, 2019 | (1,707) |
Other comprehensive income (loss) before reclassifications | 44 |
Effect of exchange rates on the pension plans | 24 |
Net current period other comprehensive income (loss) | 68 |
Ending Balance at December 31, 2019 | (1,639) |
Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance at June 30, 2019 | 496 |
Other comprehensive income (loss) before reclassifications | 56 |
Effect of exchange rates on the pension plans | (24) |
Net current period other comprehensive income (loss) | 32 |
Ending Balance at December 31, 2019 | 528 |
Unrealized Loss on Investments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance at June 30, 2019 | (5,368) |
Other comprehensive income (loss) before reclassifications | (1,609) |
Net current period other comprehensive income (loss) | (1,609) |
Ending Balance at December 31, 2019 | $ (6,977) |
Segments - Operating Results (D
Segments - Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment revenue: | ||||
Consolidated revenues | $ 1,787 | $ 370 | $ 3,518 | $ 536 |
Segment operating expenses: | ||||
Consolidated operating expenses | 1,196 | 1,287 | 2,876 | 2,122 |
Segment operating income (loss): | ||||
Consolidated operating income (loss) | 591 | (917) | 642 | (1,586) |
MCA [Member] | ||||
Segment revenue: | ||||
Consolidated revenues | 1,675 | 185 | 3,327 | 316 |
Segment operating expenses: | ||||
Consolidated operating expenses | 199 | 988 | 0 | |
Segment operating income (loss): | ||||
Consolidated operating income (loss) | 1,476 | 185 | 2,339 | 316 |
MCA [Member] | MCA advance income [Member] | ||||
Segment revenue: | ||||
Consolidated revenues | 990 | 185 | 1,795 | 316 |
MCA [Member] | Syndication fees [Member} | ||||
Segment revenue: | ||||
Consolidated revenues | 388 | 938 | 0 | |
MCA [Member] | MCA originator loan income [Member] | ||||
Segment revenue: | ||||
Consolidated revenues | 235 | 439 | 0 | |
MCA [Member] | Other MCA revenue [Member] | ||||
Segment revenue: | ||||
Consolidated revenues | 62 | 155 | 0 | |
Real estate operations | ||||
Segment revenue: | ||||
Consolidated revenues | 112 | 185 | 191 | 220 |
Segment operating expenses: | ||||
Consolidated operating expenses | 0 | 0 | ||
Segment operating income (loss): | ||||
Consolidated operating income (loss) | 112 | 185 | 191 | 220 |
Corporate [Member] | ||||
Segment operating expenses: | ||||
Consolidated operating expenses | 997 | 1,287 | 1,888 | 2,122 |
Segment operating income (loss): | ||||
Consolidated operating income (loss) | $ (997) | $ (1,287) | $ (1,888) | $ (2,122) |
Segments - Assets (Details)
Segments - Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 67,434 | $ 62,474 |
MCA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 22,090 | 18,277 |
Real estate operations | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 5,173 | 7,379 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 50,519 | 47,190 |
Corporate Intercompany loan to MCA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ (10,348) | $ (10,372) |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases | ||||
Term of lease | 12 months | 12 months | ||
Minimum payment commitments over the life of the new lease | $ 271,000 | $ 271,000 | ||
Amounts included in the financial statements related to leases | ||||
Operating lease cost | 54,000 | $ 1,000 | 109,000 | $ 2,000 |
Total lease cost | 54,000 | 1,000 | 109,000 | 2,000 |
Gross sublease income | 48,000 | 0 | 100,000 | 0 |
Operating cash flows from operating leases | (6,000) | (1,000) | (9,000) | (2,000) |
Right of use assets obtained in exchange for new operating lease liabilities | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average remaining lease term - operating leases | 33 months | 33 months | ||
Weighted average discount rate - operating leases | 6.50% | 6.50% |
Leases - Operating leases (Deta
Leases - Operating leases (Details) | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Lease payments for operating leases | |
2020 | $ 91,000 |
2021 | 183,000 |
2022 | 183,000 |
2023 | 46,000 |
Total lease liability | 461,000 |
Total unrecognized expected interest expense | $ 41,000 |
Commitments and Contingencies_2
Commitments and Contingencies and Related Party Transactions (Details) | 6 Months Ended |
Dec. 31, 2019USD ($)shares | |
Loss Contingencies [Line Items] | |
Contingent Liability for Employee Severance Payments | $ | $ 760,000 |
Stock Appreciation Rights (SARs) [Member] | |
Loss Contingencies [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 460,814 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Terminated Employees Severance Compensation Period | 6 months |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Terminated Employees Severance Compensation Period | 12 months |