On June 30, 2022, the Company sold its OSP software-as-a-service solution to Soham Inc. As a result of the sale, the Company classified the OSP business as discontinued operations in the financial statements for all periods presented. In fiscal year 2024, the Company received $2.0 million of proceeds that had been previously held back for general indemnity provisions. In fiscal year 2025, the Company received additional proceeds of $8.5 million related to the number of salons that migrated to Soham's Zenoti product. Cash (used in) provided by investing activities for the years ended June 30, 2025, and 2024, includes $8.5 million, and $2.0 million respectively, of cash from discontinued operations. The Zenoti migration was successfully completed in fiscal year 2025, and therefore no income from discontinued operations was recorded in fiscal year 2026.

The following summarizes the results of discontinued operations for the periods presented:


	Fiscal Years
	2025		2024

	(Dollars in thousands)
Discontinued operations:



Gain from sale of OSP	$	8,396	$	1,993
Income from discontinued operations, before taxes	8,396		1,993
Income tax expense from discontinued operations (1)	(1,892)		—
Income from discontinued operations, net of tax	$	6,504	$	1,993

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(1) Income taxes have been allocated to continuing and discontinued operations based on the methodology required by accounting for income taxes guidance. The tax expense in fiscal year 2025 is due to a GAAP and tax difference in timing of the gain recognition and does not reflect a current or cash tax liability. There was no tax impact in fiscal year 2024, due to a valuation allowance.