Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2021 | Nov. 12, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SUNLINK HEALTH SYSTEMS, INC. | |
Entity Central Index Key | 0000096793 | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 6,954,151 | |
Entity File Number | 1-12607 | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 31-0621189 | |
Entity Address, Address Line One | 900 Circle 75 Parkway | |
Entity Address, Address Line Two | Suite 690 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30339 | |
City Area Code | 770 | |
Local Phone Number | 933-7000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | SSY | |
Title of 12(b) Security | Common Shares without par value | |
Security Exchange Name | NYSEAMER | |
Preferred Share Purchase Rights [Member] | ||
Document Information [Line Items] | ||
No Trading Symbol Flag | true | |
Title of 12(b) Security | Preferred Share Purchase Rights | |
Security Exchange Name | NONE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 8,933 | $ 9,962 |
Receivables - net | 4,687 | 4,189 |
Inventory | 1,917 | 1,890 |
Employee retention credits receivable | 3,586 | 3,586 |
Prepaid expense and other assets | 2,291 | 2,314 |
Total current assets | 21,414 | 21,941 |
Property, plant and equipment, at cost | 21,550 | 20,880 |
Less accumulated depreciation | 14,630 | 14,326 |
Property, plant and equipment - net | 6,920 | 6,554 |
Noncurrent Assets: | ||
Intangible assets - net | 1,220 | 1,227 |
Right of use assets | 1,165 | 1,251 |
Other noncurrent assets | 649 | 591 |
Total noncurrent assets | 3,034 | 3,069 |
TOTAL ASSETS | 31,368 | 31,564 |
Current liabilities: | ||
Accounts payable | 1,698 | 1,096 |
Current maturities of long-term debt | 37 | 3,009 |
Accrued payroll and related taxes | 2,077 | 1,866 |
Accrued sales tax | 2,118 | 1,966 |
Unearned CARES Act Funds | 514 | 437 |
Current operating lease liabilities | 355 | 403 |
Other accrued expenses | 746 | 888 |
Total current liabilities | 7,545 | 9,665 |
Long-Term Liabilities | ||
Long-term debt | 44 | 52 |
Noncurrent liability for professional liability risks | 43 | 31 |
Long-term operating lease liabilities | 830 | 875 |
Other noncurrent liabilities | 157 | 131 |
Total long-term liabilities | 1,074 | 1,089 |
Commitment and Contingencies | ||
Shareholders’ Equity | ||
Preferred Shares, authorized and unissued, 2,000 shares | 0 | 0 |
Common Shares, without par value: Issued and outstanding, 6,924 shares at September 30, 2021 and at June 30, 2021 | 3,463 | 3,463 |
Additional paid-in capital | 10,700 | 10,700 |
Retained earnings | 8,748 | 6,809 |
Accumulated other comprehensive loss | (162) | (162) |
Total Shareholders’ Equity | 22,749 | 20,810 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 31,368 | $ 31,564 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Jun. 30, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred shares, authorized | 2,000,000 | 2,000,000 |
Preferred shares, unissued | 2,000,000 | 2,000,000 |
Common shares, without par value | ||
Common shares, issued | 6,924,000 | 6,924,000 |
Common shares, outstanding | 6,924,000 | 6,924,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Earnings (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Net revenues | $ 10,525 | $ 10,422 |
Costs and Expenses | ||
Salaries, wages and benefits | 4,698 | 4,385 |
Supplies | 300 | 224 |
Other operating expenses | 1,082 | 949 |
Rent and lease expense | 170 | 170 |
Depreciation and amortization | 333 | 300 |
Operating Loss | (993) | (323) |
Other Income (Expense): | ||
Gains on sale of assets | 5 | 8 |
Forgiveness of PPP loans and accrued interest | 3,010 | 0 |
Federal stimulus - Provider relief funds | 0 | 31 |
Interest income (expense), net | (14) | (7) |
Earnings (Loss) from Continuing Operations before income taxes | 2,008 | (291) |
Income Tax Expense | 2 | 0 |
Earnings (Loss) from Continuing Operations | 2,006 | (291) |
Loss from Discontinued Operations, net of tax | (67) | (49) |
Net Earnings (Loss) | 1,939 | (340) |
Other comprehensive income | 0 | 0 |
Comprehensive Earnings (Loss) | $ 1,939 | $ (340) |
Continuing Operations: | ||
Basic | $ 0.29 | $ (0.04) |
Diluted | 0.28 | (0.04) |
Discontinued Operations: | ||
Basic | (0.01) | (0.01) |
Diluted | (0.01) | (0.01) |
Net Earnings (Loss): | ||
Basic | 0.28 | (0.05) |
Diluted | $ 0.27 | $ (0.05) |
Weighted-Average Common Shares Outstanding: | ||
Basic | 6,924 | 6,899 |
Diluted | 7,095 | 6,899 |
Product [Member] | ||
Costs and Expenses | ||
Cost of goods sold | $ 4,073 | $ 4,070 |
Service [Member] | ||
Costs and Expenses | ||
Cost of goods sold | $ 862 | $ 647 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Loss) [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Jun. 30, 2020 | $ 13,743 | $ 3,450 | $ 10,714 | $ (82) | $ (339) |
Beginning Balance,Shares at Jun. 30, 2020 | 6,899,000 | ||||
Net earnings (loss) | (340) | (340) | |||
Ending Balance at Sep. 30, 2020 | 13,403 | $ 3,450 | 10,714 | (422) | (339) |
Ending Balance, Shares at Sep. 30, 2020 | 6,899,000 | ||||
Beginning Balance at Jun. 30, 2021 | $ 20,810 | $ 3,463 | 10,700 | 6,809 | (162) |
Beginning Balance,Shares at Jun. 30, 2021 | 6,924,000 | 6,924,000 | |||
Net earnings (loss) | $ 1,939 | 1,939 | |||
Ending Balance at Sep. 30, 2021 | $ 22,749 | $ 3,463 | $ 10,700 | $ 8,748 | $ (162) |
Ending Balance, Shares at Sep. 30, 2021 | 6,924,000 | 6,924,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Cash Flows [Abstract] | ||
Net Cash Provided by (Used in) Operating Activities | $ (334) | $ 814 |
Cash Flows Used in Investing Activities: | ||
Expenditures for property, plant and equipment | (692) | (595) |
Proceeds from sale of other assets | 5 | 8 |
Net Cash Used in Investing Activities | (687) | (587) |
Cash Flows Used in Financing Activities: | ||
Payments on long-term debt | (8) | (8) |
Net Cash Used in Financing Activities | (8) | (8) |
Net Increase (Decrease) in Cash and Cash Equivalents | (1,029) | 219 |
Cash and Cash Equivalents Beginning of Period | 9,962 | 11,184 |
Cash and Cash Equivalents End of Period | 8,933 | 11,403 |
Cash Paid (Received) for: | ||
Interest | 4 | (1) |
Income taxes | 2 | 308 |
Non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for lease liabilities | $ 0 | $ 9 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. –Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements as of September 30, 2021 and for the three month periods ended September 30, 2021 and 2020 have been prepared in accordance with Rule 10-01 and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and, as such, do not include all information required by accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated June 30, 2021 balance sheet included in this interim filing has been derived from the audited financial statements at that date but does not include all the information and related notes required by GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements included in the SunLink Health Systems, Inc. (“SunLink”, “we”, “our”, “ours”, “us” or the “Company”) Annual Report on Form 10-K for the fiscal year ended June 30, 2021, filed with the SEC on September 27, 2021. In the opinion of management, the Condensed Consolidated Financial Statements, which are unaudited, include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position and results of operations for the periods indicated. The results of operations for the three month period ended September 30, 2021 are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. Throughout these notes to the consolidated financial statements, SunLink Health Systems, Inc., and its consolidated subsidiaries are referred to on a collective basis as “SunLink”, “we”, “our”, “ours”, “us” or the “Company.” This drafting style is not meant to indicate that the publicly traded Company or any subsidiary of the Company owns or operates any particular asset, business or property. Each operation and business described in this filing is owned and operated by a distinct and indirect subsidiary of SunLink Health System, Inc. |
Business Operations
Business Operations | 3 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Operations | Note 2. – Business Operations Healthcare Services • A subsidiary which owns and operates Trace Regional Healthcare and Trace Extended Care and Rehabilitation (“Trace”), an 84 licensed-bed acute care hospital, located in Houston, Mississippi, which includes an 26-bed geriatric psychology unit (“GPU”), and a 66-bed nursing home. This facility focuses primarily on senior healthcare services. • A subsidiary, SunLink Health Systems Technology (“SHS Technology”), which provides information technology (IT) services to outside customers and to SunLink subsidiaries. • A subsidiary which owns approximately five (5) acres of unimproved land in Houston, Mississippi, and • A subsidiary which owns approximately 25 acres of unimproved land in Ellijay, Georgia. Pharmacy The Pharmacy segment is composed of three operational areas which are conducted primarily in markets in south Louisiana: • Retail pharmacy products and services, consisting of retail pharmacy sales conducted in Crowley, Louisiana. • Institutional pharmacy services consisting of the provision of specialty and non-specialty pharmaceutical and biological products to institutional clients or to patients in institutional settings, such as nursing homes, assisted living facilities, behavioral and specialty hospitals, hospice, and correctional facilities; and, • Durable medical equipment products and services (“DME”), consisting primarily of the sale and rental of products for institutional clients or to patients in institutional settings and patient-administered home care. COVID-19 Pandemic and CARES Act Funding COVID-19 was declared a global pandemic by the World Health Organization on March 11, 2020. We have been monitoring the COVID-19 pandemic and its impact on our operations, and we have taken significant steps intended to minimize the risk to our employees and patients. Certain employees have been working remotely, but we believe these remote work arrangements have not materially affected our ability to maintain critical business operations, which are being conducted substantially in accordance with our understanding of applicable government health and safety protocols and guidance issued in response to the COVID-19 pandemic, although such protocols and guidance are recent, rapidly changing and at times, unclear. Nevertheless, as in many healthcare environments, we have experienced COVID-19 illness, including deaths, and some employees have tested positive and were placed on leave or in quarantine. We believe the effect of the COVID-19 pandemic and public and governmental responses to it have negatively affected our last seven quarters results. In late December 2020, we began receiving allotments of COVID-19 vaccine and have vaccinated patients, providers, employees, and staff in accordance with the protocols and guidelines in the states where we operate. Not all such individuals have been vaccinated to date and some individuals have not consented to vaccination. The Company and its subsidiaries are currently developing and will implement plans to vaccinate employees to the extent required by the final rules issued by OSHA and CMS. The Company believes the vaccine mandates may result in the loss of certain staff, including clinical staff, which may impact the Company’s ability to maintain the current levels of service. In our Healthcare businesses, we have experienced material reductions in demand and net revenues due to the COVID-19 outbreak. There continues to be reduced current demand for certain hospital services, and for extended care, rehabilitation center and nursing home admissions, and clinic visits. The availability and cost of medical supplies have adversely affected our Healthcare businesses, and we continue to monitor supplies and seek additional sources of many supply items. A reduction in the availability of qualified employees has also occurred, and, despite good faith efforts to do so, we have not yet been able to rehire or fully replace staff which were previously furloughed, laid off or retired. Since the beginning of the COVID-19 pandemic, our Pharmacy business has experienced reduced sales trends in certain areas, increased costs and reduced staff. Many of our primary physician referral sources have operated at reduced capacity, and until these referral sources are at full capacity, we believe the COVID-19 pandemic will continue to affect the demand for DME products and Retail and Institutional Pharmacy drugs and products. Reductions in employee hours have been made in response to the lower demand. Extended care facilities and rehabilitation centers, nursing homes and other customers of our Institutional Pharmacy services continue to be adversely affected by the COVID-19 pandemic. Our Institutional Pharmacy services have experienced increased costs and operational inefficiencies due to measures taken to protect our employees and by access controls and other restrictions implemented by our institutional customers. The impact of the COVID-19 pandemic has negatively affected our supply processes, especially with respect to access to respiratory equipment and certain personal protective equipment and cleaning products. Our Healthcare and Pharmacy segments have received approximately $5,446 in general and targeted Provider Relief Funds ("PRF") during the period April 1, 2020 through September 30, 2021 under the CARES Act, which was enacted in March 2020 in response to the COVID-19 pandemic. The PRF distributions have been accounted for as government grants, and a total of $4,933 have been recognized since April l, 2020 as other income under the gain contingency recognition method. During the quarter ended June 30, 2020, our Healthcare and Pharmacy segments received $3,234 in PPP loans provided under the CARES Act. These loans were forgivable upon compliance with conditions specified under the PPP loan program. As of September 30, 2021, all our PPP loans have been forgiven. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, made a number of changes to employer retention tax credits previously made available under the CARES Act, including modifying and extending the Employee Retention Credit ("ERC") for the six calendar months ending June 30, 2021. As a result of such legislation, the Company qualified for ERC for the first and second calendar quarters of 2021 due to the decrease in its gross receipts and has applied for ERC of $3,586 through amended quarterly payroll tax filings for the applicable quarters. PRF distributions are not subject to repayment provided we are able to attest to and comply with the terms and conditions of the funding, including demonstrating that the funds received have been used for designated, allowable healthcare-related expenses and capital expenditures attributable to COVID-19 and for "Lost Revenues" as defined by HHS. We continue to monitor compliance with the terms and conditions of the PRF and the impact of the pandemic on our revenues and expenses. If we are unable to attest to or comply with current or future terms and conditions, and there is no assurance we will be able to do so, our ability to retain some or all of the PRF received may be impacted, and we may have to return the unutilized portion of those funds, if any, in the future. Going forward, the Company is unable to determine the extent to which the COVID-19 pandemic will continue to affect its assets and operations. Our ability to make estimates of the effect of the COVID-19 pandemic on revenues, expenses or changes in accounting judgments that have had or are reasonably likely to have a material effect on our financial statements is currently limited. The nature and extent of the effect of the COVID-19 pandemic on our balance sheet and results of operations will depend on the severity and length of the pandemic; government actions to mitigate the pandemic's effect; regulatory changes in response to the pandemic, especially those that affect our hospital, extended care, rehabilitation center, nursing home, clinics, and our pharmacy operations; existing and potential government assistance that may be provided; and the requirements of PRF receipts, including our ability to retain such PRF received. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | Note 3. – Discontinued Operations Sold Hospitals – Subsidiaries of the Company have sold substantially all the assets of five hospitals (“Sold Hospitals”) during the period July 2, 2012 to March 17, 2019. The loss before income taxes of the Sold Hospitals results primarily from the effects of retained professional liability insurance and claims expenses and settlement of a lawsuit. Life Sciences and Engineering Segment —SunLink retained a defined benefit retirement plan which covered substantially all the employees of this segment when the segment was sold in fiscal 1998. Effective February 28, 1997, the plan was amended to freeze participant benefits and close the plan to new participants. Pension expense and related tax benefit or expense is reflected in the results of operations for this segment for the three months ended September 30, 2021 and 2020, respectively. The components of pension expense for the three months ended September 30, 2021 and 2020, respectively, were as follows: Three Months Ended September 30, 2021 2020 Interest Cost $ 11 $ 10 Expected return on assets (11 ) (9 ) Amortization of prior service cost 11 19 Net pension expense $ 11 $ 20 SunLink contributed $25 to the plan in the three months ended September 30, 2021 and expects to contribute an additional $75 during the last three fiscal quarters of the fiscal year ending June 30, 2022. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Sep. 30, 2021 | |
Federal Home Loan Banks [Abstract] | |
Shareholders' Equity | Note 4. – Shareholders’ Equity Stock-Based Compensation – For the three months ended September, 2021 and 2020, the Company recognized no stock-based compensation for options issued to employees and directors of the Company. There were no share options granted nor share options exercised during the three months ended September 30, 2021. |
Revenue and Accounts Receivable
Revenue and Accounts Receivables | 3 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Revenue and Accounts Receivable | Note 5. – Revenue and Accounts Receivables Revenues by payor were as follows for the three and nine months ended March 31, 2021 and 2020: Three Months Ended September 30, 2021 2020 Medicare $ 5,055 $ 4,533 Medicaid 2,368 2,621 Retail and Institutional Pharmacy 1,567 1,690 Managed Care & Other Insurance 1,320 1,432 Self-pay 184 101 Other 31 45 Total Net Revenues $ 10,525 $ 10,422 No settlements of prior year Medicare and Medicaid cost reports were recorded in the three months ended September 30, 2021 and 2020, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 6. – Intangible Assets Intangibles consist of the following, net of amortization: September 30, 2021 June 30, 2021 Pharmacy Segment Intangibles Trade Name (non-amortizing) $ 1,180 $ 1,180 Customer Relationships 1,089 1,089 Medicare License 623 623 2,892 2,892 Accumulated Amortization (1,672 ) (1,665 ) Net Intangibles $ 1,220 $ 1,227 Amortization expense was $7 and $7 for the three months ended September 30, 2021 and 2020, respectively. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7. – Long-Term Debt Long-term debt consisted of the following: September 30, 2021 June 30, 2021 Capital Lease $ 81 $ 89 CARES Act Paycheck Protection Plan Loans 0 2,972 Less current maturities (37 ) (3,009 ) Long-term Debt $ 44 $ 52 CARES Act Paycheck Protection Plan Loans— The CARES Act was enacted by the U.S. government on March 27, 2020. As part of the CARES Act, the PPP loan program was established and administered by the SBA. In April and May 2020, subsidiaries of the Company received approximately $3,234 of PPP loans through its regular bank. Forgiveness of PPP loans were generally available if the loans are used to pay wages, rent, utilities and interest on certain debt during the 24-week period following receipt of the loan proceeds and subject to other Federally-established terms and conditions. As of September 30, 2021, all our PPP loans were forgiven by the SBA, d uring fiscal 2021, we made forgiveness applications for all our PPP loans . Forgiveness applications were reviewed by both the lending bank and SBA and loan forgiveness amounts were determined . During the last quarter of our fiscal year ended June 30, 2021, $ 261 of our PPP loans and $ 3 of related accrued interest were forgiven by the SBA and $ 264 was recorded as income . In the quarter ended September 30, 2021, we received notification that the remaining outstanding $ 2,972 of PPP loans and $ 38 of related accrued interest was forgiven by the SBA . During the quarter ended September 30, 2021, we record ed $ 3,010 of income for PPP loan and accrued interest forgiveness. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. – Income Taxes Income tax expense of $2 (all state taxes) and $0 was recorded for continuing operations for the three months ended September 30, 2021 and 2020, respectively. Of the CARES Act provisions, the most material income tax considerations related to the Company are related to the amounts for ERC and amounts received as general and targeted PRF. Based on the latest published IRS guidance as of the preparation of the September 30, 2021 financial statements, PRF (to the extent the applicable terms and conditions required to retain the funds are met “Retainable PRF”) are fully includable in taxable income in the Company’s tax returns in the fiscal year received. ERC are included in tax income in the Company’s tax returns in the quarter in which the payroll expenses for which the credits offset are deductible. ERC results in qualified wages being disallowed as a deduction for the portion of the wages paid equal to the sum of the payroll tax credit taken in the associated quarter. For amounts received and forgiven under the PPP loans, due to the enactment of the Consolidated Appropriations Act, 2021, on December 27, 2020, Congress specifically allows the deduction of any expenses associated with forgiven PPP loan proceeds. It is the Company’s assumption at September 30, 2021 that all PPP Loan associated expenses will be deductible for income tax. In accordance with the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 740, we evaluate our deferred taxes quarterly to determine if adjustments to our valuation allowance are required based on the consideration of available positive and negative evidence using a “more likely than not” standard with respect to whether deferred tax assets will be realized. Our evaluation considers, among other factors, our historical operating results, our expectation of future results of operations, the duration of applicable statuary carryforward periods and conditions of the healthcare industry. The ultimate realization of our deferred tax assets depends primarily on our ability to generate future taxable income during the periods in which the related temporary differences in the financial basis and the tax basis of the assets become deductible. The value of our deferred tax assets will depend on applicable income tax rates. At September 30, 2021, consistent with the above process, we evaluated the need for a valuation allowance against our deferred tax assets and determined that it was more likely than not that none of our deferred tax assets would be realized. As a result, in accordance with ASC 740, we recognized a valuation allowance of $6,961 against the deferred tax asset so that there is no net long-term deferred income tax asset or liability at September 30, 2021. We conducted our evaluation by considering available positive and negative evidence to determine our ability to realize our deferred tax assets. In our evaluation, we gave more significant weight to evidence that was objective in nature as compared to subjective evidence. Also, more significant weight was given to evidence that directly related to our current financial performance as compared to less current evidence and future performance. The principal negative evidence that led us to determine at September 30, 2021 that all the deferred tax assets should have full valuation allowances was the projected current fiscal year tax loss disregarding unusual items associated with the CARES Act discussed above, history of losses as well as the underlying negative business conditions for rural healthcare businesses in which our Healthcare Services Segment businesses operate and the Federal income tax net operating loss carry-forward of approximately $16,847. For Federal income tax purposes, at September 30, 2021, the Company had approximately $16,847 of estimated net operating loss carry-forwards available for use in future years subject to the limitations of the provisions of Internal Revenue Code Section 382. These net operating loss carryforwards expire primarily in fiscal 2023 through fiscal 2038; however, with the enactment of the Tax Cut and Jobs Act on December 22, 2017, federal net operating loss carryforwards generated in taxable years beginning after December 31, 2017 now have no expiration date. The Company’s returns for the periods prior to the fiscal year ended June 30, 2018 are no longer subject to potential federal and state income tax examination. |
Leases
Leases | 3 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 9. – Leases The Company has operating leases and a financing lease relating to its pharmacy operations, medical office buildings, certain medical equipment, and office equipment. All lease agreements generally require the Company to pay maintenance, repairs, property taxes and insurance costs, which are variable amounts based on actual costs. Variable lease costs also include escalating rent payments that are not fixed at commencement but are based on an index determined in future periods over the lease term based on changes in the Consumer Price Index or other measure of cost inflation. Some leases include one or more options to renew the lease at the end of the initial term, with renewal terms that generally extend the lease at the then market rental rates. Leases may also include an option to buy the underlying asset at or a short time prior to the termination of the lease. All such options are at the Company’s discretion and are evaluated at the commencement of the lease, with only those that are reasonably certain of exercise included in determining the appropriate lease term. The components of lease cost and rent expense for the three months ended September 30, 2021 and 2020 are as follows: Three Months Ended Three Months Ended Lease Cost September 30, 2021 September 30, 2020 Operating lease cost: Operating lease cost $ 125 $ 118 Short-term rent expense 44 51 Variable lease cost 1 1 Total operating lease cost $ 170 $ 170 Finance lease cost: Amortization right-of-use assets $ 9 $ 9 Interest on finance lease liabilities 1 2 Total finance lease cost $ 10 $ 11 Supplemental balance sheet information relating to leases was as follows: As of As of September 30, June 30, 2021 2021 Operating Leases: Balance Sheet Classifications Operating Lease ROU Assets ROU Assets $ 1,165 $ 1,251 Finance Leases: Finance Lease ROU Assets Property, plant and equipment 203 203 Accumulated amortization Accumulated depreciation 80 72 Current finance lease liabilities Current maturities of long-term debt 37 37 Long-term finance lease liabilities Long-term debt 44 52 Supplemental cash flow and other information related to leases as of and for the three ended September 30, 2021 and 2020 are as follows: Three Months Ended Other information September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 126 $ 119 Operating cash flows from finance leases 1 2 Financing cash flow from finance leases 9 8 Right-of-use assets obtained in exchange for new operating lease liabilities 35 9 Weighted-average remaining lease term: Operating leases 2.16 years 3.16 years Finance leases 3.95 years 3.76 years Weighted-average discount rate: Operating leases 1.35 % 3.93 % Finance leases 6.54 % 6.54 % Commitments relating to non-cancellable operating and finance leases as of September 30, 2021 for each of the next five years and thereafter are as follows: Payments due within Operating Leases Finance Leases 1 year $ 366 $ 42 2 years 266 42 3 years 257 3 4 years 238 0 5 years 75 0 Over 5 years 7 0 Total minimum future payments 1,209 87 Less: Imputed interest (24 ) (6 ) Total liabilities 1,185 81 Less: Current portion (355 ) (37 ) Long-term liabilities $ 830 $ 44 |
Accrued Sales Tax
Accrued Sales Tax | 3 Months Ended |
Sep. 30, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Sales Tax | Note 10. – Accrued Sales Tax During the fiscal year ended June 30, 2019, the Pharmacy segment business amended its sales tax position to claim exemption from sales taxes on any revenue from sales of products and services to beneficiaries of government insurance programs to the extent reimbursed by the administrators of such programs. No such sales taxes for any period subsequent to those covered by such amended returns have been paid on the related reimbursement received with respect to sales of such products and services from the government payers’ insurance programs. The Company has filed amended sales tax returns for periods still open under the applicable statutes of limitations claiming refunds of such sales taxes paid. Refunds have been received from two taxing authorities in the amounts claimed on amended returns. Accordingly, amounts claimed and received from these two taxing authorities were recorded as revenues in the fiscal year ended June 30, 2020 in the amount of $359. The Company’s position with respect to such refunds claimed from other local taxing authorities is still uncertain as these claims are under audit by such local taxing authorities and such claims have not yet been determined probable of collection; therefore, no amount has been recorded as a receivable or in income by the Company at September 30, 2021 for such other local taxing authorities. In addition, the Company has continued to accrue the amounts for sales tax estimates from such other taxing authorities in amounts it believes would be payable if its amended returns and continuing position is challenged and the Company does not prevail. The unpaid sales tax accrued as a liability at September 30, 2021 is $2,118 compared to $1,966 at June 30, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. – Commitments and Contingencies Contractual obligations, commitments and contingencies related to outstanding debt and interest in continuing operations at September 30, 2021 were as follows: Payments due within: Long-Term Debt Interest on Outstanding Debt 1 year $ 37 $ 4 2 years 40 2 3 years 4 0 4 years 0 0 5 years 0 0 $ 81 $ 6 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12. – Related Party Transactions A director of the Company is a member of a law firm which provides services to SunLink. The Company expensed an aggregate of $50 and $55 for legal services to this law firm in the three months ended September 30, 2021 and 2020, respectively. Included in the Company’s condensed consolidated balance sheets at September 30, 2021 and June 30, 2021 is $48 and $21, respectively, of amounts payable to this law firm. |
Commitments for Capital Expendi
Commitments for Capital Expenditures | 3 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments for Capital Expenditures | Note 13. – Commitments for Capital Expenditures At September 30, 2021, the Company has approximately $966 of commitments for future capital expenditures for Trace under its Trace Forward Capital Plan which was announced in March 2021. This Plan expands, upgrades and improves the physical plant, patient care, ancillary services and support areas of Trace |
Financial Information by Segmen
Financial Information by Segment | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | Note 14. – Financial Information by Segment Under ASC Topic No. 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision-making group is composed of SunLink’s chief executive officer and other members of SunLink’s senior management. Our two reportable operating segments are Healthcare Services and Pharmacy. We evaluate performance of our operating segments based on revenue and operating profit (loss). At the beginning of the current fiscal year, the Company modified the approach to certain assets, and expense allocations to calculate segment assets, operating profit and depreciation and amortization. All prior year amounts have been changed to consistently apply the changed allocation method used in the current year. Segment information as of September 3 0 , 20 2 1 and 20 20 and for the three months then ended is as follows: Healthcare Services Pharmacy Corporate and Other Total As of and for the three months ended September 30, 2021 Net revenues from external customers $ 3,498 $ 7,027 $ 0 $ 10,525 Operating profit (loss) (587 ) 12 (418 ) (993 ) Depreciation and amortization 98 235 0 333 Assets 11,549 10,030 9,789 31,368 Expenditures for property, plant and equipment equipment 373 318 1 692 As of and for the three months ended September 30, 2020 Net revenues from external customers $ 3,465 $ 6,957 $ 0 $ 10,422 Operating profit (loss) (55 ) 195 (463 ) (323 ) Depreciation and amortization 79 221 0 300 Assets 8,206 8,077 11,962 28,245 Expenditures for property, plant and equipment equipment 235 353 7 595 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements as of September 30, 2021 and for the three month periods ended September 30, 2021 and 2020 have been prepared in accordance with Rule 10-01 and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and, as such, do not include all information required by accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated June 30, 2021 balance sheet included in this interim filing has been derived from the audited financial statements at that date but does not include all the information and related notes required by GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements included in the SunLink Health Systems, Inc. (“SunLink”, “we”, “our”, “ours”, “us” or the “Company”) Annual Report on Form 10-K for the fiscal year ended June 30, 2021, filed with the SEC on September 27, 2021. In the opinion of management, the Condensed Consolidated Financial Statements, which are unaudited, include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position and results of operations for the periods indicated. The results of operations for the three month period ended September 30, 2021 are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. Throughout these notes to the consolidated financial statements, SunLink Health Systems, Inc., and its consolidated subsidiaries are referred to on a collective basis as “SunLink”, “we”, “our”, “ours”, “us” or the “Company.” This drafting style is not meant to indicate that the publicly traded Company or any subsidiary of the Company owns or operates any particular asset, business or property. Each operation and business described in this filing is owned and operated by a distinct and indirect subsidiary of SunLink Health System, Inc. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Components of Pension Expense | The components of pension expense for the three months ended September 30, 2021 and 2020, respectively, were as follows: Three Months Ended September 30, 2021 2020 Interest Cost $ 11 $ 10 Expected return on assets (11 ) (9 ) Amortization of prior service cost 11 19 Net pension expense $ 11 $ 20 |
Revenue and Accounts Receivab_2
Revenue and Accounts Receivables (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Summary of Revenues by Payor | Revenues by payor were as follows for the three and nine months ended March 31, 2021 and 2020: Three Months Ended September 30, 2021 2020 Medicare $ 5,055 $ 4,533 Medicaid 2,368 2,621 Retail and Institutional Pharmacy 1,567 1,690 Managed Care & Other Insurance 1,320 1,432 Self-pay 184 101 Other 31 45 Total Net Revenues $ 10,525 $ 10,422 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangibles consist of the following, net of amortization: September 30, 2021 June 30, 2021 Pharmacy Segment Intangibles Trade Name (non-amortizing) $ 1,180 $ 1,180 Customer Relationships 1,089 1,089 Medicare License 623 623 2,892 2,892 Accumulated Amortization (1,672 ) (1,665 ) Net Intangibles $ 1,220 $ 1,227 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following: September 30, 2021 June 30, 2021 Capital Lease $ 81 $ 89 CARES Act Paycheck Protection Plan Loans 0 2,972 Less current maturities (37 ) (3,009 ) Long-term Debt $ 44 $ 52 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Cost and Rent Expense | The components of lease cost and rent expense for the three months ended September 30, 2021 and 2020 are as follows: Three Months Ended Three Months Ended Lease Cost September 30, 2021 September 30, 2020 Operating lease cost: Operating lease cost $ 125 $ 118 Short-term rent expense 44 51 Variable lease cost 1 1 Total operating lease cost $ 170 $ 170 Finance lease cost: Amortization right-of-use assets $ 9 $ 9 Interest on finance lease liabilities 1 2 Total finance lease cost $ 10 $ 11 |
Summary of Supplemental Balance Sheet Information | Supplemental balance sheet information relating to leases was as follows: As of As of September 30, June 30, 2021 2021 Operating Leases: Balance Sheet Classifications Operating Lease ROU Assets ROU Assets $ 1,165 $ 1,251 Finance Leases: Finance Lease ROU Assets Property, plant and equipment 203 203 Accumulated amortization Accumulated depreciation 80 72 Current finance lease liabilities Current maturities of long-term debt 37 37 Long-term finance lease liabilities Long-term debt 44 52 |
Summary of Supplemental Cash Flow and Other Information Related to Leases | Supplemental cash flow and other information related to leases as of and for the three ended September 30, 2021 and 2020 are as follows: Three Months Ended Other information September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 126 $ 119 Operating cash flows from finance leases 1 2 Financing cash flow from finance leases 9 8 Right-of-use assets obtained in exchange for new operating lease liabilities 35 9 Weighted-average remaining lease term: Operating leases 2.16 years 3.16 years Finance leases 3.95 years 3.76 years Weighted-average discount rate: Operating leases 1.35 % 3.93 % Finance leases 6.54 % 6.54 % |
Summary of Non-cancellable Operating and Finance Leases | Commitments relating to non-cancellable operating and finance leases as of September 30, 2021 for each of the next five years and thereafter are as follows: Payments due within Operating Leases Finance Leases 1 year $ 366 $ 42 2 years 266 42 3 years 257 3 4 years 238 0 5 years 75 0 Over 5 years 7 0 Total minimum future payments 1,209 87 Less: Imputed interest (24 ) (6 ) Total liabilities 1,185 81 Less: Current portion (355 ) (37 ) Long-term liabilities $ 830 $ 44 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations, Commitments and Contingencies | Contractual obligations, commitments and contingencies related to outstanding debt and interest in continuing operations at September 30, 2021 were as follows: Payments due within: Long-Term Debt Interest on Outstanding Debt 1 year $ 37 $ 4 2 years 40 2 3 years 4 0 4 years 0 0 5 years 0 0 $ 81 $ 6 |
Financial Information by Segm_2
Financial Information by Segment (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information as of September 3 0 , 20 2 1 and 20 20 and for the three months then ended is as follows: Healthcare Services Pharmacy Corporate and Other Total As of and for the three months ended September 30, 2021 Net revenues from external customers $ 3,498 $ 7,027 $ 0 $ 10,525 Operating profit (loss) (587 ) 12 (418 ) (993 ) Depreciation and amortization 98 235 0 333 Assets 11,549 10,030 9,789 31,368 Expenditures for property, plant and equipment equipment 373 318 1 692 As of and for the three months ended September 30, 2020 Net revenues from external customers $ 3,465 $ 6,957 $ 0 $ 10,422 Operating profit (loss) (55 ) 195 (463 ) (323 ) Depreciation and amortization 79 221 0 300 Assets 8,206 8,077 11,962 28,245 Expenditures for property, plant and equipment equipment 235 353 7 595 |
Business Operations - Additiona
Business Operations - Additional Information (Detail) $ in Thousands | 3 Months Ended | 18 Months Ended | |
Sep. 30, 2021USD ($)BedaArea | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($) | |
Business And Organization [Line Items] | |||
Employee retention credit amending quarterly payroll tax filing amount | $ 3,586 | ||
Provider Relief Fund Distributions CARES Act [Member] | |||
Business And Organization [Line Items] | |||
Recognized amount related to provide relief fund as other income | $ 4,933 | ||
Healthcare Services Segment [Member] | Mississippi [Member] | |||
Business And Organization [Line Items] | |||
Area of unimproved land owned by subsidiary | a | 5 | ||
Healthcare Services Segment [Member] | Georgia [Member] | |||
Business And Organization [Line Items] | |||
Area of unimproved land owned by subsidiary | a | 25 | ||
Healthcare Services Segment [Member] | Acute Care Hospital [Member] | Mississippi [Member] | |||
Business And Organization [Line Items] | |||
Number of licensed-bed owned and operated by a subsidiary | Bed | 84 | ||
Number of bed in nursing home owned and operated by subsidiary | Bed | 66 | ||
Number of bed in geriatric psychology subsidiary | Bed | 26 | ||
Pharmacy Segment [Member] | Louisiana [Member] | |||
Business And Organization [Line Items] | |||
Number of operational areas | Area | 3 | ||
Healthcare and Pharmacy segments [Member] | Provider Relief Fund Distributions CARES Act [Member] | |||
Business And Organization [Line Items] | |||
Proceeds under relief fund distributions | $ 5,446 | ||
Healthcare and Pharmacy segments [Member] | Paycheck Protection Program, CARES Act [Member] | |||
Business And Organization [Line Items] | |||
Proceeds from long-term debt | $ 3,234 |
Discontinued Operations - Compo
Discontinued Operations - Components of Pension Expense (Detail) - Life Sciences and Engineering [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Type [Extensible List] | us-gaap:PensionPlansDefinedBenefitMember | us-gaap:PensionPlansDefinedBenefitMember |
Interest Cost | $ 11 | $ 10 |
Expected return on assets | (11) | (9) |
Amortization of prior service cost | 11 | 19 |
Net pension expense | $ 11 | $ 20 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - Life Sciences and Engineering [Member] $ in Thousands | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Contribution to pension plan | $ 25 |
Expected contribution to pension plan during the remaining fiscal year | $ 75 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Share-based compensation, amount recognized | $ 0 | $ 0 |
Options granted | 0 | |
Options exercised | 0 |
Revenue and Accounts Receivab_3
Revenue and Accounts Receivables - Summary of Revenue by Payor (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | $ 10,525 | $ 10,422 |
Medicare [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 5,055 | 4,533 |
Medicaid [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 2,368 | 2,621 |
Retail and Institutional Pharmacy [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 1,567 | 1,690 |
Managed Care & Other Insurance [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 1,320 | 1,432 |
Self-Pay [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 184 | 101 |
Other [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | $ 31 | $ 45 |
Revenue and Accounts Receivab_4
Revenue and Accounts Receivables - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Receivables [Abstract] | ||
Net revenues for positive settlements and filings of prior year Medicare and Medicaid cost reports | $ 0 | $ 0 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Indefinite-lived Intangible Assets [Line Items] | ||
Total | $ 1,220 | $ 1,227 |
Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite and Indefinite-Lived Intangible Assets, Gross | 2,892 | 2,892 |
Accumulated Amortization | (1,672) | (1,665) |
Total | 1,220 | 1,227 |
Trade Name [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 1,180 | 1,180 |
Customer Relationships [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,089 | 1,089 |
Medicare License [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 623 | $ 623 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 7 | $ 7 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Debt Instrument [Line Items] | ||
Capital Lease | $ 81 | $ 89 |
Less current maturities | (37) | (3,009) |
Long-term Debt | 44 | 52 |
CARES Act Paycheck Protection Plan Loans [Member] | ||
Debt Instrument [Line Items] | ||
Loans | $ 0 | $ 2,972 |
Long-Term Debt (CARES Act Paych
Long-Term Debt (CARES Act Paycheck Protection Plan Loans) - Additional Information (Detail) - CARES Act Paycheck Protection Plan Loans [Member] - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | |
May 31, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||
PPP loans from bank | $ 3,234 | ||
Debt instrument forgiveness amount | $ 2,972 | $ 261 | |
Debt forgiveness accrued interest | 38 | 3 | |
Debt forgiveness income related to loan | $ 3,010 | $ 264 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 2,000 | $ 0 |
Federal tax expense | 2,000 | 0 |
State tax expense | 2,000 | $ 0 |
Deferred income tax valuation allowance | 6,961,000 | |
Net long-term deferred income tax asset or liability | 0 | |
Net operating loss carry-forward | $ 16,847,000 | |
Net operating loss carryforward expiration year | 2023 through fiscal 2038 |
Lease - Components of Lease Cos
Lease - Components of Lease Cost and Rent Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating lease cost: | ||
Operating lease cost | $ 125 | $ 118 |
Short-term rent expense | 44 | 51 |
Variable lease cost | 1 | 1 |
Total operating lease cost | 170 | 170 |
Finance lease cost: | ||
Amortization right-of-use assets | 9 | 9 |
Interest on finance lease liabilities | 1 | 2 |
Total finance lease cost | $ 10 | $ 11 |
Lease - Summary of Supplemental
Lease - Summary of Supplemental Balance Sheet Information Relating to Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Operating Leases: | |||
Operating Lease ROU Assets | $ 1,165 | $ 1,251 | $ 1,251 |
Finance Leases: | |||
Finance Lease ROU Assets | $ 203 | $ 203 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherAssets | us-gaap:OtherAssets | |
Accumulated amortization | $ 80 | $ 72 | |
Current finance lease liabilities | $ 37 | $ 37 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | us-gaap:DebtCurrent | us-gaap:DebtCurrent | |
Long-term finance lease liabilities | $ 44 | $ 52 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Lease - Summary of Supplement_2
Lease - Summary of Supplemental Cash Flow and Other Information Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 126 | $ 119 |
Operating cash flows from finance leases | 1 | 2 |
Financing cash flow from finance leases | 9 | 8 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 35 | $ 9 |
Weighted-average remaining lease term: | ||
Operating leases | 2 years 1 month 28 days | 3 years 1 month 28 days |
Finance leases | 3 years 11 months 12 days | 3 years 9 months 3 days |
Weighted-average discount rate: | ||
Operating leases | 1.35% | 3.93% |
Finance leases | 6.54% | 6.54% |
Lease - Summary of Non-cancella
Lease - Summary of Non-cancellable Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Leases [Abstract] | |||
1 year | $ 366 | ||
2 years | 266 | ||
3 years | 257 | ||
4 years | 238 | ||
5 years | 75 | ||
Over 5 years | 7 | ||
Total minimum future payments | 1,209 | ||
Less: Imputed interest | (24) | ||
Total liabilities | 1,185 | ||
Less: Current portion | (355) | $ (403) | |
Long-term liabilities | 830 | $ 875 | |
1 year | 42 | ||
2 years | 42 | ||
3 years | 3 | ||
4 years | 0 | ||
5 years | 0 | ||
Over 5 years | 0 | ||
Total minimum future payments | 87 | ||
Less: Imputed interest | (6) | ||
Total liabilities | 81 | ||
Less: Current portion | (37) | $ (37) | |
Long-term finance lease liabilities | $ 44 | $ 52 |
Accrued Sales Tax - Additional
Accrued Sales Tax - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021USD ($)Authority | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Payables And Accruals [Abstract] | |||
Number of taxing authorities | Authority | 2 | ||
Unpaid sales tax liability | $ 2,118 | $ 1,966 | |
Amounts claimed and received | $ 359 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Contractual Obligations, Commitments and Contingencies (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Long-Term Debt [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due within 1 year | $ 37 |
Payments due within 2 years | 40 |
Payments due within in 3 years | 4 |
Payments due within 4 years | 0 |
Payments due within 5years | 0 |
Contractual obligations, commitments and contingencies | 81 |
Interest on Outstanding Debt [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due within 1 year | 4 |
Payments due within 2 years | 2 |
Payments due within in 3 years | 0 |
Payments due within 4 years | 0 |
Payments due within 5years | 0 |
Contractual obligations, commitments and contingencies | $ 6 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Management [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Legal services to these law firms | $ 50 | $ 55 | |
Amount payable to law firms | $ 48 | $ 21 |
Commitments for Capital Expen_2
Commitments for Capital Expenditures - Additional Information (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Trace Forward Capital Plan [Member] | Trace Regional Hospital [Member] | |
Commitment And Contingencies [Line Items] | |
Commitments for future capital expenditures | $ 966 |
Financial Information by Segm_3
Financial Information by Segment - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Financial Information by Segm_4
Financial Information by Segment - Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Net revenues from external customers | $ 10,525 | $ 10,422 | |
Operating profit (loss) | (993) | (323) | |
Depreciation and amortization | 333 | 300 | |
Assets | 31,368 | 28,245 | $ 31,564 |
Expenditures for property, plant and equipment equipment | 692 | 595 | |
Operating Segments [Member] | Healthcare Services Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues from external customers | 3,498 | 3,465 | |
Operating profit (loss) | (587) | (55) | |
Depreciation and amortization | 98 | 79 | |
Assets | 11,549 | 8,206 | |
Expenditures for property, plant and equipment equipment | 373 | 235 | |
Operating Segments [Member] | Pharmacy Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues from external customers | 7,027 | 6,957 | |
Operating profit (loss) | 12 | 195 | |
Depreciation and amortization | 235 | 221 | |
Assets | 10,030 | 8,077 | |
Expenditures for property, plant and equipment equipment | 318 | 353 | |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues from external customers | 0 | 0 | |
Operating profit (loss) | (418) | (463) | |
Depreciation and amortization | 0 | 0 | |
Assets | 9,789 | 11,962 | |
Expenditures for property, plant and equipment equipment | $ 1 | $ 7 |