v3.26.1
Segment Reporting
 12 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

8. Segment Reporting

During the first quarter of fiscal 2026, in conjunction with the equity transaction entered into with KLIM and the formation of REV (see Note 20 - Equity Transactions), the Company realigned the information that the CODM regularly reviews to evaluate performance for operating decision-making purposes, including performance assessment and allocation of resources. As a result of this change in segment reporting (see Note 1 - Organization), the Company retrospectively recast prior period results, by segment, to conform to the current period presentation. This structure includes two reportable segments: Alternative Credit and Real Estate. The structure is based on the Company’s various investment strategies.

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

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

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

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

The following table provides the operating financial results of our operating segments for the year ended June 30, 2026:

 

For the twelve months ended June 30, 2026

 

(in thousands)

Alternative Credit

 

 

Real Estate

 

 

Total Segments

 

 

Corporate & Other

 

 

Total

 

Revenues

$

6,071

 

 

$

21,705

 

 

$

27,776

 

 

$

-

 

 

$

27,776

 

Cost of revenues

 

-

 

 

 

13,248

 

 

 

13,248

 

 

 

-

 

 

 

13,248

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

5,316

 

 

 

11,109

 

 

 

16,425

 

 

 

3,157

 

 

 

19,582

 

Depreciation and amortization

 

177

 

 

 

1,039

 

 

 

1,216

 

 

 

83

 

 

 

1,299

 

Selling, general and administrative

 

1,542

 

 

 

2,513

 

 

 

4,055

 

 

 

3,602

 

 

 

7,657

 

Non-operating income/(expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and interest income

 

-

 

 

 

53

 

 

 

53

 

 

 

4,724

 

 

 

4,777

 

Interest expense

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,106

)

 

 

(4,106

)

Net realized and unrealized loss

 

-

 

 

 

-

 

 

 

-

 

 

 

(22,244

)

 

 

(22,244

)

Net realized and unrealized loss on investments of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,659

)

 

 

(2,659

)

Interest and other income of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

958

 

 

 

958

 

Loss before income taxes

 

(964

)

 

 

(6,151

)

 

 

(7,115

)

 

 

(30,169

)

 

 

(37,284

)

Income tax (expense) benefit

 

-

 

 

 

(212

)

 

 

(212

)

 

 

588

 

 

 

376

 

Net loss

$

(964

)

 

$

(6,363

)

 

$

(7,327

)

 

$

(29,581

)

 

$

(36,908

)

 

 

 

For the twelve months ended June 30, 2025

 

(in thousands)

Alternative Credit

 

 

Real Estate

 

 

Total Segments

 

 

Corporate & Other

 

 

Total

 

Revenues

$

10,323

 

 

$

5,993

 

 

$

16,316

 

 

$

-

 

 

$

16,316

 

Cost of revenues

 

-

 

 

 

1,082

 

 

 

1,082

 

 

 

-

 

 

 

1,082

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

6,383

 

 

 

5,959

 

 

 

12,342

 

 

 

3,136

 

 

 

15,478

 

Depreciation and amortization

 

273

 

 

 

976

 

 

 

1,249

 

 

 

-

 

 

 

1,249

 

Selling, general and administrative

 

1,317

 

 

 

1,744

 

 

 

3,061

 

 

 

3,449

 

 

 

6,510

 

Non-operating income/(expenses):

 

-

 

 

 

-

 

 

 

 

 

 

-

 

 

 

 

Dividends and interest income

 

1

 

 

 

-

 

 

 

1

 

 

 

6,056

 

 

 

6,057

 

Interest expense

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,157

)

 

 

(4,157

)

Net realized and unrealized gain

 

-

 

 

 

-

 

 

 

-

 

 

 

16,854

 

 

 

16,854

 

Net realized and unrealized gain on investments of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

3,322

 

 

 

3,322

 

Interest and other income of Consolidated Funds

 

-

 

 

 

-

 

 

 

-

 

 

 

1,563

 

 

 

1,563

 

Income (loss) before income taxes

 

2,351

 

 

 

(3,768

)

 

 

(1,417

)

 

 

17,053

 

 

 

15,636

 

Income tax expense

 

-

 

 

 

-

 

 

 

-

 

 

 

(86

)

 

 

(86

)

Net income (loss)

$

2,351

 

 

$

(3,768

)

 

$

(1,417

)

 

$

16,967

 

 

$

15,550

 

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