SunLink Health Systems (SSY) 10-Q 14 Nov 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2022	Nov. 14, 2022
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
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		7,031,603
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, 2022	Jun. 30, 2022
Current Assets:
Cash and cash equivalents	$ 4,951	$ 6,794
Receivables - net	4,686	4,624
Inventory	1,842	1,748
Employee retention credits receivable	1,761	1,761
Prepaid expense and other assets	2,166	1,888
Total current assets	15,406	16,815
Property, plant and equipment, at cost	23,859	23,920
Less accumulated depreciation	15,377	15,703
Property, plant and equipment - net	8,482	8,217
Noncurrent Assets:
Intangible assets - net	1,195	1,201
Right of use assets	1,113	1,187
Other noncurrent assets	630	523
Total noncurrent assets	2,938	2,911
TOTAL ASSETS	26,826	27,943
Current liabilities:
Accounts payable	1,831	1,347
Current maturities of long-term debt	41	40
Accrued payroll and related taxes	1,344	1,520
Accrued sales tax	2,777	2,600
Unearned CARES Act Funds	469	519
Current operating lease liabilities	354	352
Other accrued expenses	1,347	1,313
Total current liabilities	8,163	7,691
Long-Term Liabilities
Long-term debt	3	14
Noncurrent liability for professional liability risks	87	86
Long-term operating lease liabilities	780	857
Deferred income taxes	69	69
Other noncurrent liabilities	114	106
Total long-term liabilities	1,053	1,132
Commitments and Contingencies
Shareholders’ Equity
Preferred Shares, authorized and unissued, 2,000 shares	0	0
Common Shares, without par value: Issued and outstanding, 7,032 shares at September 30, 2022 and 6,954 at June 30, 2022	3,516	3,478
Additional paid-in capital	10,746	10,736
Retained earnings	3,242	4,800
Accumulated other comprehensive loss	106	106
Total Shareholders’ Equity	17,610	19,120
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 26,826	$ 27,943

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Jun. 30, 2022
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	7,032,000	6,954,000
Common shares, outstanding	7,032,000	6,954,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Earnings (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Net revenues	$ 11,037	$ 10,525
Costs and Expenses
Salaries, wages and benefits	5,330	4,698
Supplies	337	300
Other operating expenses	1,093	1,082
Rent and lease expense	118	170
Depreciation and amortization	368	333
Operating Loss	(1,613)	(993)
Other Income (Expense):
Gains on sale of assets	12	5
Forgiveness of PPP loans and accrued interest	0	3,010
Federal stimulus - Provider relief funds	61	0
Interest income (expense), net	(4)	(14)
Earnings (Loss) from Continuing Operations before income taxes	(1,544)	2,008
Income Tax Expense (Benefit)	0	2
Earnings (Loss) from Continuing Operations	(1,544)	2,006
Loss from Discontinued Operations, net of tax	(14)	(67)
Net Earnings (Loss)	(1,558)	1,939
Other comprehensive income	0	0
Comprehensive Earnings (Loss)	$ (1,558)	$ 1,939
Continuing Operations:
Basic	$ (0.22)	$ 0.29
Diluted	(0.22)	0.28
Discontinued Operations:
Basic	0	(0.01)
Diluted	0	(0.01)
Net Earnings (Loss):
Basic	(0.22)	0.28
Diluted	$ (0.22)	$ 0.27
Weighted-Average Common Shares Outstanding:
Basic	6,983	6,924
Diluted	6,983	7,095
Product [Member]
Costs and Expenses
Cost of goods sold	$ 4,369	$ 4,073
Service [Member]
Costs and Expenses
Cost of goods sold	$ 1,035	$ 862

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, 2021	$ 20,810	$ 3,463	$ 10,700	$ 6,809	$ (162)
Beginning Balance,Shares at Jun. 30, 2021		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
Beginning Balance at Jun. 30, 2022	$ 19,120	$ 3,478	10,736	4,800	106
Beginning Balance,Shares at Jun. 30, 2022	6,954,000	6,954,000
Share options exercised	$ 48	$ 38	10
Share options exercised, Shares	77,452	78,000
Net earnings (loss)	$ (1,558)			(1,558)
Ending Balance at Sep. 30, 2022	$ 17,610	$ 3,516	$ 10,746	$ 3,242	$ 106
Ending Balance, Shares at Sep. 30, 2022	7,032,000	7,032,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statement Of Cash Flows [Abstract]
Net Cash Provided by (Used in) Operating Activities	$ (1,271)	$ (334)
Cash Flows Used in Investing Activities:
Expenditures for property, plant and equipment	(624)	(692)
Proceeds from share option exercises	49	0
Proceeds from sale of other assets	13	5
Net Cash Used in Investing Activities	(562)	(687)
Cash Flows Used in Financing Activities:
Payments on long-term debt	(10)	(8)
Net Cash Used in Financing Activities	(10)	(8)
Net Decrease in Cash and Cash Equivalents	(1,843)	(1,029)
Cash and Cash Equivalents Beginning of Period	6,794	9,962
Cash and Cash Equivalents End of Period	4,951	8,933
Cash Paid (Received) for:
Interest	4	(1)
Income taxes	0	(293)
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for lease liabilities	$ 7	$ 35

Basis of Presentation

Basis of Presentation	3 Months Ended
	Sep. 30, 2022
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, 2022 and for the three month periods ended September 30, 2022 and 2021 have been prepared in accordance with Rule 8-03 and Article 8-03 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, 2022 balance sheet included in this interim filing has been derived from the audited consolidated financial statements at that date but does not include all the information and related notes required by GAAP for complete consolidated 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, 2022, filed with the SEC on September 28, 2022. 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 periods ended September 30, 2022 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 condensed 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 SunLink Health Systems, Inc. or any particular 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, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Business Operations	Note 2. – Business Operations Healthcare Services The Health Services segment includes the following: • A subsidiary which owns and operates Trace Regional Medical Center (“Trace”) which is composed of an 49 licensed-bed acute care hospital, located in Houston, Mississippi. Our Medical Center includes an 26-bed geriatric psychology unit (“GPU”) and an attached 66-bed extended care and rehabilitation center. 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: • Retail pharmacy products and services, consisting of retail pharmacy sales conducted in rural markets at two locations in Louisiana. This also includes non-institutional pharmacy services consisting of the provision of specialty and non-specialty pharmaceutical and biological products to clients or patients in non-institutional settings, including private residences in Louisiana; • Institutional pharmacy services consisting of the provision of specialty and non-specialty p harmaceutical and biological products to institutional clients or to patients in institutional settings, such as extended care and rehabilitation centers, 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 continued to monitor the impact on our operations of the COVID-19 pandemic and its aftermath and 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, among other things, our understanding of applicable government health and safety protocols and guidance issued in response to the COVID-19 pandemic, although such protocols and guidance have been subject to changes and at times have been unclear. Nevertheless, as in many healthcare environments, we have experienced disruption of our operations, 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 certain public and certain governmental responses to it have negatively affected our last eleven quarter’s 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 of CMS. The Company believes the vaccine mandates have resulted in the loss of staff, including clinical staff, and together with the current state of the labor market, have negatively affected the Company’s ability to maintain the current levels of service. In our Healthcare Segment business, we have experienced material reductions in demand and net revenues due to the COVID-19 pandemic and its aftermath. 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 accompanied by an increase in the levels of salaries, wages and benefits have occurred, and, despite good faith efforts to do so, we have not yet been able to rehire or fully replace staff reductions which were previously furloughed, laid off or retired. During the COVID-19 pandemic and its aftermath, our Pharmacy business has experienced reduced sales trends in certain areas, increased costs and reduced staff. Many of our primary physician referral sources have been operating at reduced capacity, and until these referral sources resume operating at full capacity, we believe the COVID-19 pandemic will have continuing to effects on 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 and its aftermath also has and continues to have negatively affected our supply processes and costs generally. Our Healthcare and Pharmacy segments have received approximately $6,182 in general and targeted Provider Relief Funds ("PRF") during the period April 1, 2020 through September 30, 2022 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 $5,715 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 Paycheck Protection Plan (“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, 2022, 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. Through the date of this filing, the Company has received $1,803 of ERC which we applied for. We continue to monitor compliance with the terms and conditions of the ERC and PPP programs and developing interpretations and enforcement of the ERC and PPP program rules and the regulations. PRF distributions are subject to Federal audits and Single Audits and 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 the department of “HHS”. We continue to monitor compliance with the terms and conditions of the PRF and developing interpretations and enforcement of PRF rules and regulations, as well as 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. The Company filed its Schedule of Grant Income of HHS awards and audit report for the year ended June 30, 2021 with the Health Resources and Services Administration (“HRSA”) agency of HHS on September 30, 2022. The Company is unable to determine the extent to which the COVID-19 pandemic and its aftermath 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 continuing effect of the COVID-19 pandemic and its aftermath on our balance sheet and results of operations will depend on the severity and length of the pandemic or to evolving strains of COVID-19; any further government actions to address the pandemic's continuing 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, including our ability to retain such PRF received.

Discontinued Operations

Discontinued Operations	3 Months Ended
	Sep. 30, 2022
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 Facilities”) during the period July 2, 2012 to March 17, 2019. The loss before income taxes of the Sold Facilities 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, 2022 and 2021, respectively. The components of pension expense for the three months ended September 30, 2022 and 2021, respectively, were as follows: Three Months Ended September 30, 2022 2021 Interest Cost $ 13 $ 11 Expected return on assets (11 ) (11 ) Amortization of prior service cost 0 11 Net pension expense $ 2 $ 11 SunLink contributed $22 to the plan in the three months ended September 30, 2022 and expects to contribute an additional $66 during the last nine months of the fiscal year ending June 30, 2023.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Sep. 30, 2022
Federal Home Loan Banks [Abstract]
Shareholders' Equity	Note 4. – Shareholders’ Equity Stock-Based Compensation – For the three months ended September 30, 2022 and 2021, the Company recognized no stock-based compensation for options issued to employees and directors of the Company. There were 77,452 shares issued as a result of options exercised during the three months ended September 30, 2022.

Revenue

Revenue	3 Months Ended
	Sep. 30, 2022
Revenue From Contract With Customer [Abstract]
Revenue	Note 5. – Revenue Revenues by payor were as follows for the three months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 2021 Medicare $ 5,013 $ 5,055 Medicaid 2,856 2,368 Retail and Institutional Pharmacy 1,499 1,567 Managed Care & Other Insurance 1,385 1,320 Self-pay 259 184 Other 25 31 Total Net Revenues $ 11,037 $ 10,525 No settlements of prior year Medicare and Medicaid cost reports were recorded in the three months ended September 30, 2022 and 2021, respectively.

Intangible Assets

Intangible Assets	3 Months Ended
	Sep. 30, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 6. – Intangible Assets Intangibles consist of the following, net of amortization: September 30, 2022 June 30, 2022 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 (1,697 ) (1,691 ) Net Intangibles $ 1,195 $ 1,201 Amortization expense was $6 and $7 for the three months ended September 30, 2022 and 2021, respectively.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Long-Term Debt	Note 7. – Long-Term Debt Long-term debt consisted of the following: September 30, 2022 June 30, 2022 Capital Lease $ 44 $ 54 Less current maturities (41 ) (40 ) Long-term Debt $ 3 $ 14 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 was generally available if the loans were used to pay wages, rent, utilities and interest on certain debt during the 24-week period following receipt of the loan proceeds, subject to other federally-established terms and conditions. As of June 30, 2022, all our PPP loans have been forgiven by the SBA. During the quarter ended September 30, 2021, $2,972 of our PPP loans and $ 38 of related accrued interest were forgiven by the SBA and $3,010 was recorded as other income.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 8. – Income Taxes No income tax expense and income tax expense of $2 (all state taxes) was recorded for continuing operations for the three months ended September 30, 2022 and 2021, respectively. Of the CARES Act provisions, the currently 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, 2022 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 taxable income in the quarter in which the payroll expenses 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 allowed the deduction of any expenses associated with forgiven PPP loan proceeds. It is the Company’s assumption at September 30, 2022 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, 2022, 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 $8,278 against the deferred tax asset so that there is no net long-term deferred income tax asset at September 30, 2022. 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. A long-term deferred tax liability of $69 is recorded September 30, 2022 to reflect the deferred tax liability for the non-amortizing trade name intangible asset. The principal negative evidence that led us to determine at September 30, 2022 that all the deferred tax assets should have full valuation allowances was the projected current fiscal year tax loss. For purposes of evaluating our valuations allowances, we have disregarded unusual items associated with the CARES Act discussed above, the Company’s history of losses, as well as the underlying negative business conditions for rural healthcare in which our Healthcare Services operates, and we have recognized none of our federal income tax net operating loss carry-forward of approximately $23,143. For federal income tax purposes, at September 30, 2022, the Company had approximately $23,143 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, 2022
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, all of 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, 2022 and 2021 are as follows: Three Months Ended Three Months Ended Lease Cost September 30, 2022 September 30, 2021 Operating lease cost: Operating lease cost $ 90 $ 125 Short-term rent expense 27 44 Variable lease cost 1 1 Total operating lease cost $ 118 $ 170 Finance lease cost: Amortization right-of-use assets $ 9 $ 9 Interest on finance lease liabilities 1 1 Total finance lease cost $ 10 $ 10 Supplemental balance sheet information relating to leases was as follows: As of As of September 30 June 30, 2022 2022 Operating Leases: Balance Sheet Classifications Operating Lease ROU Assets ROU Assets $ 1,113 $ 1,187 Finance Leases: Finance Lease ROU Assets Property, plant and equipment 203 203 Accumulated amortization Accumulated depreciation 108 101 Current finance lease liabilities Current maturities of long-term debt 41 40 Long-term finance lease liabilities Long-term debt 3 14 Supplemental cash flow and other information related to leases as of and for the three months ended September 30, 2022 and 2021 are as follows: Three Months Ended Other information September 30, 2022 September 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 91 $ 126 Operating cash flows from finance leases 1 1 Financing cash flow from finance leases 10 9 Right-of-use assets obtained in exchange for new operating lease liabilities 7 35 Weighted-average remaining lease term: Operating leases 1.16 years 2.16 years Finance leases 3.27 years 3.95 years Weighted-average discount rate: Operating leases 1.01 % 1.35 % Finance leases 6.54 % 6.54 % Commitments relating to non-cancellable operating and finance leases as of September 30, 2022 for each of the next five years and thereafter are as follows: Payments due within Operating Leases Finance Leases 1 year $ 359 $ 42 2 years 351 3 3 years 327 0 4 years 124 0 5 years 11 0 Over 5 years 0 0 Total minimum future payments 1,172 45 Less: Imputed interest (38 ) (1 ) Total liabilities 1,134 44 Less: Current portion (354 ) (41 ) Long-term liabilities $ 780 $ 3

Accrued Sales Tax

Accrued Sales Tax	3 Months Ended
	Sep. 30, 2022
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 state and local sales taxes in Louisiana on revenues from the 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 June 30, 2019 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 fil ed 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, a mounts claimed and received from these two taxing authorities were recorded as revenues in the fiscal year ended June 30 , 20 20 in the amount of $ 359 . Refunds from two different taxing authorities totaling approximately $ are under audit . T he Compan y’s position with respect to such refunds claimed from the two other local taxing authorities is still uncertain as these claims are under audit by such local taxing authorities and such claims ha ve 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 , 202 2 in respect of such other local taxing authorities . In a ddition, the Company has continued to accrue the amounts for sales tax estimates from these two 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 3 0 , 20 2 2 was $ compared to $ 2,600 at June 30, 20 2 2 .

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2022
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11. – Commitments and Contingencies Contractual obligations, commitments and contingencies related to outstanding debt and interest (excluding leases, see Note 9) in continuing operations at September 30, 2022 were as follows: Payments due within: Long-Term Debt Interest on Outstanding Debt 1 year $ 41 $ 1 2 years 3 0 3 years 0 0 4 years 0 0 5 years 0 0 $ 44 $ 1

Related Party Transactions

Related Party Transactions	3 Months Ended
	Sep. 30, 2022
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 $55 and $50 for legal services to this law firm in the three months ended September 30, 2022 and 2021, respectively. Included in the Company’s condensed consolidated balance sheets at September 30, 2022 and June 30, 2022 is $50 and $15, respectively, of amounts payable to this law firm.

Financial Information by Segmen

Financial Information by Segment	3 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Financial Information by Segment	Note 13. – 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). Segment information as of September 3 0 , 20 2 2 and 20 2 1 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, 2022 Net revenues from external customers $ 3,784 $ 7,253 $ 0 $ 11,037 Operating loss (1,034 ) (219 ) (360 ) (1,613 ) Depreciation and amortization 120 247 1 368 Assets 12,885 8,250 5,691 26,826 Expenditures for property, plant and equipment 354 269 1 624 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 13,549 10,030 9,789 33,368 Expenditures for property, plant and equipment 373 318 1 692

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Sep. 30, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited Condensed Consolidated Financial Statements as of September 30, 2022 and for the three month periods ended September 30, 2022 and 2021 have been prepared in accordance with Rule 8-03 and Article 8-03 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, 2022 balance sheet included in this interim filing has been derived from the audited consolidated financial statements at that date but does not include all the information and related notes required by GAAP for complete consolidated 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, 2022, filed with the SEC on September 28, 2022. 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 periods ended September 30, 2022 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 condensed 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 SunLink Health Systems, Inc. or any particular 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, 2022
Discontinued Operations And Disposal Groups [Abstract]
Components of Pension Expense	The components of pension expense for the three months ended September 30, 2022 and 2021, respectively, were as follows: Three Months Ended September 30, 2022 2021 Interest Cost $ 13 $ 11 Expected return on assets (11 ) (11 ) Amortization of prior service cost 0 11 Net pension expense $ 2 $ 11

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Sep. 30, 2022
Revenue From Contract With Customer [Abstract]
Summary of Revenues by Payor	Revenues by payor were as follows for the three months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 2021 Medicare $ 5,013 $ 5,055 Medicaid 2,856 2,368 Retail and Institutional Pharmacy 1,499 1,567 Managed Care & Other Insurance 1,385 1,320 Self-pay 259 184 Other 25 31 Total Net Revenues $ 11,037 $ 10,525

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Sep. 30, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangibles consist of the following, net of amortization: September 30, 2022 June 30, 2022 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 (1,697 ) (1,691 ) Net Intangibles $ 1,195 $ 1,201

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Summary of Long-Term Debt	Long-term debt consisted of the following: September 30, 2022 June 30, 2022 Capital Lease $ 44 $ 54 Less current maturities (41 ) (40 ) Long-term Debt $ 3 $ 14

Leases (Tables)

Leases (Tables)	3 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Components of Lease Cost and Rent Expense	The components of lease cost and rent expense for the three months ended September 30, 2022 and 2021 are as follows: Three Months Ended Three Months Ended Lease Cost September 30, 2022 September 30, 2021 Operating lease cost: Operating lease cost $ 90 $ 125 Short-term rent expense 27 44 Variable lease cost 1 1 Total operating lease cost $ 118 $ 170 Finance lease cost: Amortization right-of-use assets $ 9 $ 9 Interest on finance lease liabilities 1 1 Total finance lease cost $ 10 $ 10
Summary of Supplemental Balance Sheet Information	Supplemental balance sheet information relating to leases was as follows: As of As of September 30 June 30, 2022 2022 Operating Leases: Balance Sheet Classifications Operating Lease ROU Assets ROU Assets $ 1,113 $ 1,187 Finance Leases: Finance Lease ROU Assets Property, plant and equipment 203 203 Accumulated amortization Accumulated depreciation 108 101 Current finance lease liabilities Current maturities of long-term debt 41 40 Long-term finance lease liabilities Long-term debt 3 14
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 months ended September 30, 2022 and 2021 are as follows: Three Months Ended Other information September 30, 2022 September 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 91 $ 126 Operating cash flows from finance leases 1 1 Financing cash flow from finance leases 10 9 Right-of-use assets obtained in exchange for new operating lease liabilities 7 35 Weighted-average remaining lease term: Operating leases 1.16 years 2.16 years Finance leases 3.27 years 3.95 years Weighted-average discount rate: Operating leases 1.01 % 1.35 % 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, 2022 for each of the next five years and thereafter are as follows: Payments due within Operating Leases Finance Leases 1 year $ 359 $ 42 2 years 351 3 3 years 327 0 4 years 124 0 5 years 11 0 Over 5 years 0 0 Total minimum future payments 1,172 45 Less: Imputed interest (38 ) (1 ) Total liabilities 1,134 44 Less: Current portion (354 ) (41 ) Long-term liabilities $ 780 $ 3

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Sep. 30, 2022
Commitments And Contingencies Disclosure [Abstract]
Schedule of Contractual Obligations, Commitments and Contingencies	Contractual obligations, commitments and contingencies related to outstanding debt and interest (excluding leases, see Note 9) in continuing operations at September 30, 2022 were as follows: Payments due within: Long-Term Debt Interest on Outstanding Debt 1 year $ 41 $ 1 2 years 3 0 3 years 0 0 4 years 0 0 5 years 0 0 $ 44 $ 1

Financial Information by Segm_2

Financial Information by Segment (Tables)	3 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Segment Information	Segment information as of September 3 0 , 20 2 2 and 20 2 1 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, 2022 Net revenues from external customers $ 3,784 $ 7,253 $ 0 $ 11,037 Operating loss (1,034 ) (219 ) (360 ) (1,613 ) Depreciation and amortization 120 247 1 368 Assets 12,885 8,250 5,691 26,826 Expenditures for property, plant and equipment 354 269 1 624 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 13,549 10,030 9,789 33,368 Expenditures for property, plant and equipment 373 318 1 692

Business Operations - Additiona

Business Operations - Additional Information (Detail) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended	30 Months Ended
	Nov. 14, 2022 USD ($)	Sep. 30, 2022 USD ($) Bed a Area	Jun. 30, 2020 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2022 USD ($)
Business And Organization [Line Items]
Employee retention credit amending quarterly payroll tax filing amount				$ 3,586
Subsequent Event
Business And Organization [Line Items]
Proceeds from employee retention credit	$ 1,803
Provider Relief Fund Distributions CARES Act [Member]
Business And Organization [Line Items]
Recognized amount related to provide relief fund as other income		$ 5,715
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		49
Number of bed in extended care and rehabilitation center owned and operated by subsidiary | Bed		66
Number of bed in geriatric psychology unit owned and operated by 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					$ 6,182
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, 2022	Sep. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Type [Extensible List]	us-gaap:PensionPlansDefinedBenefitMember	us-gaap:PensionPlansDefinedBenefitMember
Interest Cost	$ 13	$ 11
Expected return on assets	(11)	(11)
Amortization of prior service cost	0	11
Net pension expense	$ 2	$ 11

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Detail) - Life Sciences and Engineering [Member] $ in Thousands	3 Months Ended
	Sep. 30, 2022 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contribution to pension plan	$ 22
Expected contribution to pension plan during the remaining fiscal year	$ 66

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-based compensation, amount recognized	$ 0	$ 0
Options exercised	77,452

Revenue - Summary of Revenue by

Revenue - Summary of Revenue by Payor (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Revenue Reconciling Item [Line Items]
Net Revenues	$ 11,037	$ 10,525
Medicare [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Net Revenues	5,013	5,055
Medicaid [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Net Revenues	2,856	2,368
Retail and Institutional Pharmacy [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Net Revenues	1,499	1,567
Managed Care & Other Insurance [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Net Revenues	1,385	1,320
Self-Pay [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Net Revenues	259	184
Other [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Net Revenues	$ 25	$ 31

Revenue - Additional Informatio

Revenue - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Revenue From Contract With Customer [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, 2022	Jun. 30, 2022
Indefinite-lived Intangible Assets [Line Items]
Total	$ 1,195	$ 1,201
Specialty Pharmacy Segment [Member]
Indefinite-lived Intangible Assets [Line Items]
Finite and Indefinite-Lived Intangible Assets, Gross	2,892	2,892
Accumulated Amortization	(1,697)	(1,691)
Total	1,195	1,201
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, 2022	Sep. 30, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 6	$ 7

Long-Term Debt - Summary of Lon

Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Debt Disclosure [Abstract]
Capital Lease	$ 44	$ 54
Less current maturities	(41)	(40)
Long-term Debt	$ 3	$ 14

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
Debt Instrument [Line Items]
PPP loans from bank	$ 3,234
Debt instrument forgiveness amount		$ 2,972
Debt forgiveness income related to loan		3,010
Debt forgiveness accrued interest		$ 38

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 0	$ 2,000
State tax expense (benefit)	0	$ 2,000
Deferred income tax valuation allowance	8,278,000
Net long-term deferred income tax asset or liability	0
Long-term deferred tax liability	69,000
Net operating loss carry-forward	$ 23,143,000
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, 2022	Sep. 30, 2021
Operating lease cost:
Operating lease cost	$ 90	$ 125
Short-term rent expense	27	44
Variable lease cost	1	1
Total operating lease cost	118	170
Finance lease cost:
Amortization right-of-use assets	9	9
Interest on finance lease liabilities	1	1
Total finance lease cost	$ 10	$ 10

Lease - Summary of Supplemental

Lease - Summary of Supplemental Balance Sheet Information Relating to Leases (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Operating Leases:
Right of use assets	$ 1,113	$ 1,187
Finance Leases:
Finance Lease ROU Assets	$ 203	$ 203
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant and equipment, at cost	Property, plant and equipment, at cost
Accumulated amortization	$ 108	$ 101
Current finance lease liabilities	$ 41	$ 40
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current maturities of long-term debt	Current maturities of long-term debt
Long-term finance lease liabilities	$ 3	$ 14
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	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, 2022	Sep. 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 91	$ 126
Operating cash flows from finance leases	1	1
Financing cash flow from finance leases	10	9
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 7	$ 35
Weighted-average remaining lease term:
Operating leases	1 year 1 month 28 days	2 years 1 month 28 days
Finance leases	3 years 3 months 7 days	3 years 11 months 12 days
Weighted-average discount rate:
Operating leases	1.01%	1.35%
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, 2022	Jun. 30, 2022
Leases [Abstract]
1 year	$ 359
2 years	351
3 years	327
4 years	124
5 years	11
Over 5 years	0
Total minimum future payments	1,172
Less: Imputed interest	(38)
Total liabilities	1,134
Less: Current portion	(354)	$ (352)
Long-term operating lease liabilities	780	857
1 year	42
2 years	3
3 years	0
4 years	0
5 years	0
Over 5 years	0
Total minimum future payments	45
Less: Imputed interest	(1)
Total liabilities	44
Less: Current portion	(41)	(40)
Long-term finance lease liabilities	$ 3	$ 14

Accrued Sales Tax - Additional

Accrued Sales Tax - Additional Information (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2022 USD ($) Authority	Jun. 30, 2022 USD ($)	Jun. 30, 2020 USD ($)
Payables And Accruals [Abstract]
Number of taxing authorities | Authority	2
Amounts claimed and received	$ 1,500		$ 359
Unpaid sales tax liability	$ 2,777	$ 2,600

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Contractual Obligations, Commitments and Contingencies (Detail) $ in Thousands	Sep. 30, 2022 USD ($)
Long-Term Debt [Member]
Commitment And Contingencies [Line Items]
Payments due within 1 year	$ 41
Payments due within 2 years	3
Payments due within in 3 years	0
Payments due within 4 years	0
Payments due within 5years	0
Contractual obligations, commitments and contingencies	44
Interest on Outstanding Debt [Member]
Commitment And Contingencies [Line Items]
Payments due within 1 year	1
Payments due within 2 years	0
Payments due within in 3 years	0
Payments due within 4 years	0
Payments due within 5years	0
Contractual obligations, commitments and contingencies	$ 1

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - Management [Member] - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022
Related Party Transaction [Line Items]
Legal services to these law firms	$ 55	$ 50
Amount payable to law firms	$ 50		$ 15

Financial Information by Segm_3

Financial Information by Segment - Additional Information (Detail)	3 Months Ended
	Sep. 30, 2022 Segment
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, 2022	Sep. 30, 2021	Jun. 30, 2022
Segment Reporting Information [Line Items]
Net revenues from external customers	$ 11,037	$ 10,525
Operating profit (loss)	(1,613)	(993)
Depreciation and amortization	368	333
Assets	26,826	33,368	$ 27,943
Expenditures for property, plant and equipment	624	692
Operating Segments [Member] | Healthcare Services Segment [Member]
Segment Reporting Information [Line Items]
Net revenues from external customers	3,784	3,498
Operating profit (loss)	(1,034)	(587)
Depreciation and amortization	120	98
Assets	12,885	13,549
Expenditures for property, plant and equipment	354	373
Operating Segments [Member] | Pharmacy Segment [Member]
Segment Reporting Information [Line Items]
Net revenues from external customers	7,253	7,027
Operating profit (loss)	(219)	12
Depreciation and amortization	247	235
Assets	8,250	10,030
Expenditures for property, plant and equipment	269	318
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Net revenues from external customers	0	0
Operating profit (loss)	(360)	(418)
Depreciation and amortization	1	0
Assets	5,691	9,789
Expenditures for property, plant and equipment	$ 1	$ 1