Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2023 | Nov. 14, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 1-10324 | |
Entity Registrant Name | THE INTERGROUP CORPORATION | |
Entity Central Index Key | 0000069422 | |
Entity Tax Identification Number | 13-3293645 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1516 S. Bundy Dr. | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90025 | |
City Area Code | (310) | |
Local Phone Number | 889-2500 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | INTG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,204,852 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
ASSETS | ||
Investment in Hotel, net | $ 40,227,000 | $ 40,318,000 |
Investment in real estate, net | 47,988,000 | 48,057,000 |
Investment in marketable securities | 13,590,000 | 18,345,000 |
Cash and cash equivalents | 6,686,000 | 5,960,000 |
Restricted cash | 6,073,000 | 6,914,000 |
Other assets, net | 4,204,000 | 2,764,000 |
Due from securities broker | 776,000 | |
Total assets | 119,544,000 | 122,358,000 |
Liabilities: | ||
Accounts payable and other liabilities - Hotel | 10,718,000 | 11,616,000 |
Accounts payable and other liabilities | 5,265,000 | 2,574,000 |
Due to securities broker | 1,601,000 | |
Obligations for securities sold | 737,000 | 1,416,000 |
Other notes payable | 2,813,000 | 2,954,000 |
Deferred tax liability | 4,927,000 | 4,927,000 |
Mortgage notes payable - Hotel, net | 106,896,000 | 107,117,000 |
Mortgage notes payable - real estate, net | 84,475,000 | 84,757,000 |
Total liabilities | 215,831,000 | 216,962,000 |
Shareholders’ deficit: | ||
Preferred stock, $.01 par value, 100,000 shares authorized; none issued | ||
Common stock, $.01 par value, 4,000,000 shares authorized; 3,459,888 and 3,459,888 issued; 2,204,852 and 2,205,927 outstanding, respectively | 33,000 | 33,000 |
Additional paid-in capital | 2,339,000 | 2,445,000 |
Accumulated deficit | (54,079,000) | (52,835,000) |
Treasury stock, at cost, 1,255,036 and 1,253,961 shares, respectively | (20,833,000) | (20,794,000) |
Total InterGroup shareholders’ deficit | (72,540,000) | (71,151,000) |
Noncontrolling interest | (23,747,000) | (23,453,000) |
Total shareholders’ deficit | (96,287,000) | (94,604,000) |
Total liabilities and shareholders’ deficit | $ 119,544,000 | $ 122,358,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 4,000,000 | 4,000,000 |
Common stock, shares issued | 3,459,888 | 3,459,888 |
Common stock, shares outstanding | 2,204,852 | 2,205,927 |
Treasury stock, shares | 1,255,036 | 1,253,961 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||
Total revenues | $ 15,510,000 | $ 16,388,000 |
Costs and operating expenses: | ||
Hotel operating expenses | (9,281,000) | (9,306,000) |
Real estate operating expenses | (2,356,000) | (2,191,000) |
Depreciation and amortization expenses | (1,522,000) | (1,329,000) |
General and administrative expenses | (755,000) | (699,000) |
Total costs and operating expenses | (13,914,000) | (13,525,000) |
Income from operations | 1,596,000 | 2,863,000 |
Other (expense) income: | ||
Interest expense - mortgages | (2,251,000) | (2,222,000) |
Net loss on marketable securities | (785,000) | (810,000) |
Dividend and interest income | 126,000 | 175,000 |
Trading and margin interest expense | (322,000) | (265,000) |
Total other expense, net | (3,232,000) | (3,122,000) |
Loss before income taxes | (1,636,000) | (259,000) |
Income tax benefit | 14,000 | 58,000 |
Net loss | (1,622,000) | (201,000) |
Less: Net loss attributable to the noncontrolling interest | 378,000 | 2,000 |
Net loss attributable to The InterGroup Corporation | $ (1,244,000) | $ (199,000) |
Net loss per share | ||
Basic | $ (0.74) | $ (0.09) |
Diluted | (0.74) | (0.09) |
Net loss per share attributable to The InterGroup Corporation | ||
Basic | (0.56) | (0.09) |
Diluted | $ (0.56) | $ (0.09) |
Weighted average number of basic common shares outstanding | 2,204,852 | 2,231,228 |
Weighted average number of diluted common shares outstanding | 2,204,852 | 2,482,423 |
Hotel [Member] | ||
Revenues: | ||
Total revenues | $ 11,093,000 | $ 12,310,000 |
Real Estate [Member] | ||
Revenues: | ||
Total revenues | $ 4,417,000 | $ 4,078,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jun. 30, 2022 | $ 33,000 | $ 3,277,000 | $ (46,116,000) | $ (19,324,000) | $ (62,130,000) | $ (20,874,000) | $ (83,004,000) |
Balance, shares at Jun. 30, 2022 | 3,459,888 | ||||||
Net Loss | (199,000) | (199,000) | (2,000) | (201,000) | |||
Investment in Portsmouth | (19,000) | (19,000) | 14,000 | (5,000) | |||
Purchase of treasury stock | (872,000) | (872,000) | (872,000) | ||||
Balance at Sep. 30, 2022 | $ 33,000 | 3,258,000 | (46,315,000) | (20,196,000) | (63,220,000) | (20,862,000) | (84,082,000) |
Balance, shares at Sep. 30, 2022 | 3,459,888 | ||||||
Balance at Jun. 30, 2023 | $ 33,000 | 2,445,000 | (52,835,000) | (20,794,000) | (71,151,000) | (23,453,000) | (94,604,000) |
Balance, shares at Jun. 30, 2023 | 3,459,888 | ||||||
Net Loss | (1,244,000) | (1,244,000) | (378,000) | (1,622,000) | |||
Investment in Portsmouth | (106,000) | (106,000) | 84,000 | (22,000) | |||
Purchase of treasury stock | (39,000) | (39,000) | (39,000) | ||||
Balance at Sep. 30, 2023 | $ 33,000 | $ 2,339,000 | $ (54,079,000) | $ (20,833,000) | $ (72,540,000) | $ (23,747,000) | $ (96,287,000) |
Balance, shares at Sep. 30, 2023 | 3,459,888 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (1,622,000) | $ (201,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,522,000 | 1,329,000 |
Amortization of loan costs | 90,000 | 88,000 |
Amortization of other notes payable | (141,000) | (142,000) |
Deferred taxes | (58,000) | |
Net unrealized loss on marketable securities | 679,000 | 10,000 |
Changes in operating assets and liabilities: | ||
Investment in marketable securities | 4,076,000 | 352,000 |
Other assets | (1,440,000) | (695,000) |
Accounts payable and other liabilities - Hotel | (898,000) | 1,653,000 |
Accounts payable and other liabilities | 2,691,000 | 318,000 |
Due to securities broker | (2,377,000) | (490,000) |
Obligations for securities sold | (679,000) | (449,000) |
Net cash provided by operating activities | 1,901,000 | 1,715,000 |
Cash flows from investing activities: | ||
Payments for hotel investments | (754,000) | (1,632,000) |
Payments for real estate investments | (608,000) | (800,000) |
Payments for investment in Portsmouth | (22,000) | (5,000) |
Net cash used in investing activities | (1,384,000) | (2,437,000) |
Cash flows from financing activities: | ||
Net payments of mortgage notes payable | (593,000) | (874,000) |
Purchase of treasury stock | (39,000) | (872,000) |
Net cash used in financing activities | (632,000) | (1,746,000) |
Net change in cash, cash equivalents and restricted cash | (115,000) | (2,468,000) |
Cash, cash equivalents and restricted cash at the beginning of the period | 12,874,000 | 23,349,000 |
Cash, cash equivalents and restricted cash at the end of the period | 12,759,000 | 20,881,000 |
Supplemental information: | ||
Interest paid | 1,937,000 | 1,797,000 |
Taxes paid | $ 23,000 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The condensed consolidated financial statements included herein have been prepared by The InterGroup Corporation (“InterGroup” or the “Company”), according to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations, although the Company believes the disclosures that are made are adequate to make the information presented not misleading. Further, the condensed consolidated financial statements reflect, in the opinion of management, all adjustments (which included only normal recurring adjustments) necessary for a fair statement of the financial position, cash flows and results of operations as of and for the periods indicated. It is suggested that these financial statements be read in conjunction with the audited financial statements of InterGroup and the notes therein included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023. The September 30, 2023 Condensed Consolidated Balance Sheet was derived from the Consolidated Balance Sheet as included in the Company’s Form 10-K for the year ended June 30, 2023. The unaudited condensed consolidated financial statements include the accounts of our wholly owned and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended September 30, 2023 are not necessarily indicative of results to be expected for the full fiscal year ending June 30, 2024. Effective February 19, 2021, the Company’s 83.7 68.8 75.7 2.5 Portsmouth’s primary business was conducted through its general and limited partnership interest in Justice Investors Limited Partnership, a California limited partnership (“Justice” or the “Partnership”). Effective July 15, 2021, Portsmouth completed the purchase of 100 0.7 Effective Prior to its dissolution effective December 23, 2021, Justice owned and operated a 544-room hotel property located at 750 Kearny Street, San Francisco California, known as the Hilton San Francisco Financial District (the “Hotel”) and related facilities including a five-level underground parking garage through its subsidiaries Justice Operating Company, LLC (“Operating”) and Justice Mezzanine Company, LLC (“Mezzanine”). Mezzanine was a wholly owned subsidiary of the Partnership; Operating is a wholly owned subsidiary of Mezzanine. Effective December 23, 2021, Portsmouth replaced Justice as the single member of Mezzanine. Mezzanine is the borrower under certain mezzanine indebtedness of Justice, and in December 2013, the Partnership conveyed ownership of the Hotel to Operating. The Hotel is a full-service Hilton brand hotel pursuant to a Franchise License Agreement with HLT Franchise Holding LLC (“Hilton”) through January 31, 2030. Aimbridge Hospitality (“Aimbridge”) manages the Hotel, along with its five-level parking garage, under certain Hotel management agreement (“HMA”) with Operating. The term of the management agreement is for an initial period of ten years commencing on the February 3, 2017 date and automatically renews for successive one (1) year periods, to not exceed five years in the aggregate, subject to certain conditions. Under the terms on the HMA, base management fee payable to Aimbridge shall be one and seven-tenths percent (1.70%) of total Hotel revenue. In addition to the operations of the Hotel, the Company also generates income from the ownership of real estate. Properties include apartment complexes, commercial real estate, and three single-family houses as strategic investments. The properties are located throughout the United States but are concentrated in Texas and Southern California. The Company also has investments in unimproved real property. All of the Company’s residential rental properties and its commercial rental property are managed in-house. There have been no material changes to the Company’s significant accounting policies during the three months ended September 30, 2023. Please refer to the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for a summary of the significant accounting policies. Recently Issued and Adopted Accounting Pronouncements As of September 30, 2023, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on the Company’s condensed consolidated financial statements. Going Concern The financial statements of the Hotel have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As discussed in Note 11 – Related Party and Other Financing Transactions, as of September 30, 2023, the outstanding balance consists of a senior mortgage loan and mezzanine loan totaling $ 106,896,000 107,287,000 Due to these factors and the uncertainty around the Hotel’s ability to successfully refinance the debt on favorable terms in the current lending environment gives rise to substantial doubt about the Hotel’s ability to continue as a going concern for one year after the financial statement issuance date. The Hotel is exploring the possibility of refinancing its senior mortgage and mezzanine debt with potential lenders. Alternatively, the Company is also exploring the possibility of a loan modification or extension to the existing debt with the current lenders, however, the Company may be unable to access further financing when needed. As such, there can be no assurance that the Company will be able to obtain additional liquidity when needed or under acceptable terms, if at all. During 2021 and first part of calendar 2022, we took advantage of the slow periods to make certain capital improvements including complete refinishing of all guest room furniture, resurfacing half of the hotel bathtubs that needed repair, refreshed meeting space and lobby paint and vinyl, replaced all bed frames and socks, and completed the carpet and wall covering corridor installation. In November 2022, we began our guestroom renovation and had completed approximately 307 guestrooms as of September 30, 2023. Hotel improvements are ongoing to remain competitive and we anticipate completing the guestroom renovations by the end March 2024. Once the Company completes its full renovation, management anticipates its high occupancy to continue and its average daily rates to increase as it completes renovation up to the point of generating a positive cash flows. The financial statements do not include any adjustments to the carrying amounts of assets, liabilities, and reported expenses that may be necessary if the Hotel were unable to continue as a going concern. |
LIQUIDITY
LIQUIDITY | 3 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY | NOTE 2 - LIQUIDITY Historically, our cash flows have been primarily generated from our Hotel and real estate operations. However, the dealings by federal, state, and local civil authorities have a material detrimental impact on our liquidity. For the three months ended September 30, 2023, our net cash flow provided by operations was $ 1,901,000 755,000 2,933,000 The Company had cash and cash equivalents of $ 6,686,000 5,960,000 6,073,000 6,914,000 13,629,000 15,328,000 On July 2, 2014, the Partnership obtained from InterGroup an unsecured loan in the principal amount of $ 4,250,000 12 with a term of 2 years 3% The loan was extended to July 31, 2023 10,000,000 11,350,000 16,000,000 the note maturity date was extended to July 31, 2025 20,000,000 15,700,000 1,500,000 17,200,000 In July 2022, the Company renewed its uncollateralized revolving line of credit from CIBC Bank USA (“CIBC”) at a reduced amount of $ 2,000,000 5,000,000 2,000,000 2,000,000 The Company’s known short-term liquidity requirements primarily consist of funds necessary to pay for operating and other expenditures, including management and franchise fees, corporate expenses, payroll and related costs, taxes, interest and principal payments on our outstanding indebtedness, and repairs and maintenance at all of our properties. Our long-term liquidity requirements primarily consist of funds necessary to pay for scheduled debt maturities and capital improvements of the Hotel and our real estate properties. We will continue to finance our business activities primarily with existing cash, including from the activities described above, and cash generated from our operations. The objectives of our cash management policy are to maintain existing leverage levels and the availability of liquidity, while minimizing operational costs. However, there can be no guarantee that management will be successful with its plan. The following table provides a summary as of September 30, 2023, the Company’s material financial obligations which also includes interest payments. SCHEDULE OF MATERIAL FINANCING OBLIGATION Total 2024 2025 2026 2027 2028 Thereafter 9 Months Year Year Year Year Total 2024 2025 2026 2027 2028 Thereafter Mortgage and subordinated notes payable $ 192,143,000 $ 107,697,000 $ 9,319,000 $ 1,165,000 $ 3,298,000 $ 1,772,000 $ 68,892,000 Other notes payable 2,813,000 425,000 567,000 567,000 463,000 317,000 474,000 Interest 25,521,000 3,797,000 2,898,000 2,390,000 2,284,000 2,286,000 11,866,000 Total $ 220,477,000 $ 111,919,000 $ 12,784,000 $ 4,122,000 $ 6,045,000 $ 4,375,000 $ 81,232,000 |
REVENUE
REVENUE | 3 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 3 – REVENUE Our revenue from real estate is primarily rental income from residential and commercial property leases which is recorded when due from residents and is recognized monthly as earned. The revenue recognition rules under ASC 606 specifically eliminates rental revenue from the accounting standard. The following table present our Hotel revenue disaggregated by revenue streams. SCHEDULE OF DISAGGREGATION OF REVENUE For the three months ended September 30, 2023 2022 Hotel revenues: Hotel rooms $ 9,561,000 $ 10,802,000 Food and beverage 627,000 535,000 Garage 825,000 822,000 Other operating departments 80,000 151,000 Total hotel revenue $ 11,093,000 $ 12,310,000 Performance obligations We identified the following performance obligations for which revenue is recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: ● Cancelable room reservations or ancillary services ● Non-cancelable room reservations and banquet or conference reservations ● Other ancillary goods and services ● Components of package reservations Hotel revenue primarily consists of hotel room rentals, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking). Revenue is recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are provided. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. We do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the nature of our business, our revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at our hotel are refunded to hotel guests if the guest cancels within the specified time period, before any services are rendered. Refunds related to service are generally recognized as an adjustment to the transaction price at the time the hotel stay occurs or services are rendered. Revenue recognition from apartment rental commences when an apartment unit is placed in service and occupied by a rent-paying tenant. Apartment units are leased on a short-term basis, with no lease extending beyond one year. Contract assets and liabilities The Company does not have any material contract assets as of September 30, 2023 and June 30, 2023, other than trade and other receivables, net on our consolidated balance sheets. Our receivables are primarily the result of contracts with customers that were entered within the past 12 months, which are reduced by a reserve for estimated credit losses that reflects our estimate of amounts that will not be collected and amounted to $ 0 486,000 Contract costs We consider sales commissions earned to be incremental costs of obtaining a contract with our customers. As a practical expedient, we expense these costs as incurred as our contracts with customers are less than one year. |
INVESTMENT IN HOTEL, NET
INVESTMENT IN HOTEL, NET | 3 Months Ended |
Sep. 30, 2023 | |
Investment In Hotel Net | |
INVESTMENT IN HOTEL, NET | NOTE 4 – INVESTMENT IN HOTEL, NET Investment in Hotel consisted of the following as of: SCHEDULE OF INVESTMENT IN HOTEL. NET Accumulated Net Book September 30, 2023 Cost Depreciation Value Land $ 2,738,000 $ - $ 2,738,000 Finance lease ROU assets 1,805,000 (1,318,000 ) 487,000 Furniture and equipment 39,481,000 (30,087,000 ) 9,394,000 Building and improvements 64,665,000 (37,057,000 ) 27,608,000 Investment in Hotel, net $ 108,689,000 $ (68,462,000 ) $ 40,227,000 Accumulated Net Book June 30, 2023 Cost Depreciation Value Land $ 2,738,000 $ - $ 2,738,000 Finance lease ROU assets 1,805,000 (1,239,000 ) 566,000 Furniture and equipment 38,727,000 (29,682,000 ) 9,045,000 Building and improvements 64,665,000 (36,696,000 ) 27,969,000 Investment in Hotel, net $ 107,935,000 $ (67,617,000 ) $ 40,318,000 Finance lease ROU assets, furniture and equipment are stated at cost, depreciated on a straight-line basis over their useful lives ranging from 3 7 15 39 845,000 627,000 |
INVESTMENT IN REAL ESTATE, NET
INVESTMENT IN REAL ESTATE, NET | 3 Months Ended |
Sep. 30, 2023 | |
Real Estate [Abstract] | |
INVESTMENT IN REAL ESTATE, NET | NOTE 5 – INVESTMENT IN REAL ESTATE, NET At September 30, 2023, the Company’s investment in real estate consisted of twenty properties located throughout the United States. These properties include sixteen apartment complexes, three single-family houses as strategic investments, and one commercial real estate property. The Company also owns unimproved land located in Maui, Hawaii. Investment in real estate consisted of the following: SCHEDULE OF INVESTMENT IN REAL ESTATE As of September 30, 2023 June 30, 2023 Land $ 22,998,000 $ 22,998,000 Buildings, improvements and equipment 73,758,000 73,151,000 Accumulated depreciation (50,698,000 ) (50,022,000 ) Investment in real estate, gross 46,058,000 46,127,000 Land held for development 1,930,000 1,930,000 Investment in real estate, net $ 47,988,000 $ 48,057,000 Building, improvements, and equipment are stated at cost, depreciated on a straight-line basis over their useful lives ranging from 5 40 608,000 676,000 678,000 |
INVESTMENT IN MARKETABLE SECURI
INVESTMENT IN MARKETABLE SECURITIES | 3 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT IN MARKETABLE SECURITIES | NOTE 6 – INVESTMENT IN MARKETABLE SECURITIES The Company’s investment in marketable securities consists primarily of corporate equities. The Company has also periodically invested in corporate bonds and income producing securities, which may include interests in real estate-based companies and REITs, where financial benefit could inure to its shareholders through income and/or capital gain. At September 30, 2023 and June 30, 2023, all of the Company’s marketable securities are classified as trading securities. The change in the unrealized gains and losses on these investments are included in earnings. Trading securities are summarized as follows: SCHEDULE OF TRADING SECURITIES Gross Gross Net Investment Cost Unrealized Gain Unrealized Loss Unrealized Gain Fair Value As of September 30, 2023 Corporate Equities $ 11,404,000 $ 2,875,000 $ (689,000 ) $ 2,186,000 $ 13,590,000 As of June 30, 2023 Corporate Equities $ 15,419,000 $ 3,713,000 $ (787,000 ) $ 2,926,000 $ 18,345,000 Net gains (losses) on marketable securities on the statement of operations is comprised of realized and unrealized gains (losses). Below is the composition of net losses on marketable securities for the three months ended September 30, 2023 and 2022, respectively: SCHEDULE OF NET GAINS (LOSSES) ON MARKETABLE SECURITIES COMPRISING OF REALIZED AND UNREALIZED GAINS (LOSSES) For the three months ended September 30, 2023 2022 Realized (loss) on marketable securities, net $ (106,000 ) $ (800,000 ) Unrealized loss on marketable securities, net (679,000 ) (10,000 ) Net loss on marketable securities $ (785,000 ) $ (810,000 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 7 - FAIR VALUE MEASUREMENTS The carrying values of the Company’s financial instruments not required to be carried at fair value on a recurring basis approximate fair value due to their short maturities (i.e., accounts receivable, other assets, accounts payable and other liabilities, due to securities broker and obligations for securities sold) or the nature and terms of the obligation (i.e., other notes payable and mortgage notes payable). The assets and liabilities measured at fair value on a recurring basis are as follows: SCHEDULE OF FAIR VALUE MEASUREMENT ON RECURRING BASIS As of September 30, 2023 June 30, 2023 Assets: Total - Level 1 Total - Level 1 Investment in marketable securities: REITs and real estate companies $ 3,147,000 $ 6,985,000 Technology 78,000 2,779,000 T-Notes 8,116,000 2,093,000 Financial services 965,000 1,865,000 Consumer cyclical 42,000 1,689,000 Basic materials 106,000 1,047,000 Healthcare 164,000 739,000 Communication services 769,000 566,000 Industrial 11,000 485,000 Utilities - 97,000 Energy 157,000 - Other 35,000 - Total $ 13,590,000 $ 18,345,000 The fair values of investments in marketable securities are determined by the most recently traded price of each security at the balance sheet date. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | NOTE 8 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows: SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH As of September 30, 2023 June 30, 2023 Cash and cash equivalents $ 6,686,000 $ 5,960,000 Restricted cash 6,073,000 6,914,000 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 12,759,000 $ 12,874,000 Restricted cash is comprised of amounts held by lenders for payment of real estate taxes, insurance, replacement and capital addition reserves for the Hotel and real estate properties. |
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS | 3 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION PLANS | NOTE 9 – STOCK BASED COMPENSATION PLANS The Company follows Accounting Standard Codification (ASC) Topic 718 “Compensation – Stock Compensation”, which addresses accounting for equity-based compensation arrangements, including employee stock options and restricted stock units. Please refer to Note 15 – Stock Based Compensation Plans in the Company’s Form 10-K for the year ended June 30, 2023 for more detailed information on the Company’s stock-based compensation plans. During the three months ended September 30, 2023 the Company did not record any stock option compensation cost. During the three months ended September 30, 2022, the Company did not record any stock option compensation cost. As of September 30, 2023 all compensation related to stock options has been fully amortized. Option-pricing models require the input of various subjective assumptions, including the option’s expected life, estimated forfeiture rates and the price volatility of the underlying stock. The expected stock price volatility is based on analysis of the Company’s stock price history. The Company has selected to use the simplified method for estimating the expected term. The risk-free interest rate is based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. No dividend yield is included as the Company has not issued any dividends and does not anticipate issuing any dividends in the future. The following table summarizes the stock options activity from July 1, 2022 through September 30, 2023: SCHEDULE OF STOCK OPTION ACTIVITY Number of Weighted Average Weighted Average Aggregate Shares Exercise Price Remaining Life Intrinsic Value Oustanding at July 1, 2022 251,195 $ 15.95 2.60 $ 6,628,000 Granted - - - - Exercised - - - - Forfeited - - - - Exchanged - - - - Outstanding at June 30, 2023 251,195 $ 15.95 1.60 $ 4,957,000 Exercisable at June 30, 2023 251,195 $ 15.95 1.60 $ 4,957,000 Vested at June 30, 2023 251,195 $ 15.95 1.60 $ 4,957,000 Oustanding at July 1, 2023 251,195 $ 15.95 1.60 $ 4,957,000 Granted - - - - Exercised - - - - Forfeited - - - - Exchanged - - - - Outstanding at September 30, 2023 251,195 $ 15.95 1.35 $ 3,661,000 Exercisable at September 30, 2023 251,195 $ 15.95 1.35 $ 3,661,000 Vested at September 30, 2023 251,195 $ 15.95 1.35 $ 3,661,000 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 10 – SEGMENT INFORMATION The Company operates in three reportable segments, the operation of the Hotel (“Hotel Operations”), the operation of its multi-family residential properties (“Real Estate Operations”) and the investment of its cash in marketable securities and other investments (“Investment Transactions”). These three operating segments, as presented in the financial statements, reflect how management internally reviews each segment’s performance. Management also makes operational and strategic decisions based on this information. Information below represents reported segments for the three months ended September 30, 2023 and 2022. Segment income from Hotel operations consists of the operation of the Hotel and operation of the garage. Segment income from real estate operations consists of the operation of the rental properties. Loss from investments consists of net investment loss, dividend and interest income and investment related expenses. SCHEDULE OF SEGMENT REPORTING INFORMATION As of and for the three months Hotel Real Estate Investment ended September 30, 2023 Operations Operations Transactions Corporate Total Revenues $ 11,093,000 $ 4,417,000 $ - $ - $ 15,510,000 Segment operating expenses (9,281,000 ) (2,356,000 ) - (755,000 ) (12,392,000 ) Segment income (loss) 1,812,000 2,061,000 - (755,000 ) 3,118,000 Interest expense - mortgage (1,606,000 ) (645,000 ) - - (2,251,000 ) Depreciation and amortization expense (845,000 ) (677,000 ) - - (1,522,000 ) Loss from investments - - (981,000 ) - (981,000 ) Income tax benefit - - - 14,000 14,000 Net income (loss) $ (639,000 ) $ 739,000 $ (981,000 ) $ (741,000 ) $ (1,622,000 ) Total assets $ 48,099,000 $ 47,988,000 $ 14,366,000 $ 9,091,000 $ 119,544,000 As of and for the three months Hotel Real Estate Investment ended September 30, 2022 Operations Operations Transactions Corporate Total Revenues $ 12,310,000 $ 4,078,000 $ - $ - $ 16,388,000 Segment operating expenses (9,306,000 ) (2,191,000 ) - (699,000 ) (12,196,000 ) Segment income (loss) 3,004,000 1,887,000 - (699,000 ) 4,192,000 Interest expense - mortgage (1,632,000 ) (590,000 ) - - (2,222,000 ) Depreciation and amortization expense (651,000 ) (678,000 ) - - (1,329,000 ) Loss from investments - - (900,000 ) - (900,000 ) Income tax benefit - - - 58,000 58,000 Net income (loss) $ 721,000 $ 619,000 $ (900,000 ) $ (641,000 ) $ (201,000 ) Total assets $ 47,526,000 $ 48,147,000 $ 10,687,000 $ 18,712,000 $ 125,072,000 |
RELATED PARTY AND OTHER FINANCI
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | 3 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | NOTE 11 – RELATED PARTY AND OTHER FINANCING TRANSACTIONS The following summarizes the balances of related party and other notes payable as of September 30, 2023 and June 30, 2023, respectively. SUMMARY OF RELATED PARTY AND OTHER FINANCING TRANSACTIONS As of September 30, 2023 June 30, 2023 Note payable - Hilton $ 1,979,000 $ 2,058,000 Note payable - Aimbridge 834,000 896,000 Total other notes payable $ 2,813,000 $ 2,954,000 Note payable to Hilton (Franchisor) is a self-exhausting, interest free development incentive note which is reduced by approximately $ 316,000 through 2030 On February 1, 2017, Operating entered into an HMA with Ambridge to manage the Hotel with an effective takeover date of February 3, 2017. The term of the management agreement is for an initial period of 10 2,000,000 8 834,000 896,000 Future minimum principal amortizations for all other financing transactions are as follows: SCHEDULE OF FUTURE MINIMUM PRINCIPAL AMORTIZATIONS For the year ending June 30, 2024 (9 months) $ 425,000 2025 567,000 2026 567,000 2027 463,000 2028 317,000 Thereafter 474,000 Long term debt $ 2,813,000 To fund the redemption of limited partnership interests and to repay the prior mortgage of $ 42,940,000 97,000,000 20,000,000 5.275 86,802,000 87,240,000 The mezzanine loan is secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The mezzanine interest only loan had an interest rate of 9.75% per annum and a maturity date of January 1, 2024 20,000,000 9.75 7.25 January 1, 2024 Effective May 11, 2017, InterGroup agreed to become an additional guarantor under the limited guaranty and an additional indemnitor under the environmental indemnity for Justice Investors limited partnership’s $ 97,000,000 20,000,000 On July 2, 2014, the Partnership obtained from InterGroup an unsecured loan in the principal amount of $ 4,250,000 12 with a term of 2 years 3 The loan was extended to July 31, 2023 10,000,000 11,350,000 16,000,000 the note maturity date was extended to July 31, 2025 20,000,000 15,700,000 1,500,000 17,200,000 In July 2018, InterGroup obtained a revolving $ 5,000,000 The RLOC carries a variable interest rate of 30-day LIBOR plus 3%. Interest is paid on a monthly basis. the maturity date of the RLOC from July 24, 2019 to July 23, 2020 2,000,000 5,000,000 2,000,000 As disclosed in its Definitive Information Statement on Schedule 14C, filed with the SEC on January 25, 2021, Santa Fe received shareholder approval to distribute its assets, as described and subsequently dissolve, all as set forth in the Information Statement. As InterGroup formerly owned 83.7 5,013,000 422,998 3.7 221,000 18,641 1,159,000 Four of the Portsmouth directors serve as directors of InterGroup. The Company’s Vice President Real Estate was elected President of Portsmouth in May 2021. The Company’s director and Chairman of the Audit Committee, William J. Nance, serves as Comstock’s director and Chairman of the Audit and Finance, Compensation and Nominating and Governance Committees of Comstock. As Chairman of the Executive Strategic Real Estate and Securities Investment Committee, the Company’s President and Chief Executive Officer (CEO), John V. Winfield, directs the investment activity of the Company in public and private markets pursuant to authority granted by the Board of Directors. Mr. Winfield also serves as Chief Executive Officer and Chairman of the Board of Portsmouth and oversees the investment activity of Portsmouth. Effective June 2016, Mr. Winfield became the Managing Director of Justice and served in that position until the dissolution of Justice in December 2021. Depending on certain market conditions and various risk factors, the Chief Executive Officer and Portsmouth may, at times, invest in the same companies in which the Company invests. Such investments align the interests of the Company with the interests of related parties because it places the personal resources of the Chief Executive Officer and the resources of Portsmouth, at risk in substantially the same manner as the Company in connection with investment decisions made on behalf of the Company. |
ACCOUNTS PAYABLE AND OTHER LIAB
ACCOUNTS PAYABLE AND OTHER LIABILITIES | 3 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND OTHER LIABILITIES | NOTE 12 – ACCOUNTS PAYABLE AND OTHER LIABILITIES The following summarizes the balances of accounts payable and other liabilities – Hotel as of September 30, 2023 and June 30, 2023. SCHEDULE OF ACCOUNTS PAYABLE AND OTHER LIABILITIES - HOTEL As of September 30, 2023 June 30, 2023 Trade payable $ 4,261,000 $ 3,240,000 Advance deposits 671,000 560,000 Property tax payable 1,582,000 617,000 Payroll and related accruals 3,208,000 2,918,000 Mortgage interest payable 632,000 214,000 Withholding and other taxes payable 1,495,000 1,204,000 Security deposit 954,000 925,000 Franchise fees 1,707,000 2,510,000 Management fees payable 1,106,000 1,683,000 Other 367,000 319,000 Total accounts payable and other liabilities $ 15,983,000 $ 14,190,000 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 13 – SUBSEQUENT EVENT The Company evaluated subsequent events through the date that the accompanying financial statements were issued, and has determined that no material subsequent events exist through the date of this filing. |
LIQUIDITY (Tables)
LIQUIDITY (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF MATERIAL FINANCING OBLIGATION | The following table provides a summary as of September 30, 2023, the Company’s material financial obligations which also includes interest payments. SCHEDULE OF MATERIAL FINANCING OBLIGATION Total 2024 2025 2026 2027 2028 Thereafter 9 Months Year Year Year Year Total 2024 2025 2026 2027 2028 Thereafter Mortgage and subordinated notes payable $ 192,143,000 $ 107,697,000 $ 9,319,000 $ 1,165,000 $ 3,298,000 $ 1,772,000 $ 68,892,000 Other notes payable 2,813,000 425,000 567,000 567,000 463,000 317,000 474,000 Interest 25,521,000 3,797,000 2,898,000 2,390,000 2,284,000 2,286,000 11,866,000 Total $ 220,477,000 $ 111,919,000 $ 12,784,000 $ 4,122,000 $ 6,045,000 $ 4,375,000 $ 81,232,000 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATION OF REVENUE | The following table present our Hotel revenue disaggregated by revenue streams. SCHEDULE OF DISAGGREGATION OF REVENUE For the three months ended September 30, 2023 2022 Hotel revenues: Hotel rooms $ 9,561,000 $ 10,802,000 Food and beverage 627,000 535,000 Garage 825,000 822,000 Other operating departments 80,000 151,000 Total hotel revenue $ 11,093,000 $ 12,310,000 |
INVESTMENT IN HOTEL, NET (Table
INVESTMENT IN HOTEL, NET (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Investment In Hotel Net | |
SCHEDULE OF INVESTMENT IN HOTEL. NET | Investment in Hotel consisted of the following as of: SCHEDULE OF INVESTMENT IN HOTEL. NET Accumulated Net Book September 30, 2023 Cost Depreciation Value Land $ 2,738,000 $ - $ 2,738,000 Finance lease ROU assets 1,805,000 (1,318,000 ) 487,000 Furniture and equipment 39,481,000 (30,087,000 ) 9,394,000 Building and improvements 64,665,000 (37,057,000 ) 27,608,000 Investment in Hotel, net $ 108,689,000 $ (68,462,000 ) $ 40,227,000 Accumulated Net Book June 30, 2023 Cost Depreciation Value Land $ 2,738,000 $ - $ 2,738,000 Finance lease ROU assets 1,805,000 (1,239,000 ) 566,000 Furniture and equipment 38,727,000 (29,682,000 ) 9,045,000 Building and improvements 64,665,000 (36,696,000 ) 27,969,000 Investment in Hotel, net $ 107,935,000 $ (67,617,000 ) $ 40,318,000 |
INVESTMENT IN REAL ESTATE, NET
INVESTMENT IN REAL ESTATE, NET (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Real Estate [Abstract] | |
SCHEDULE OF INVESTMENT IN REAL ESTATE | Investment in real estate consisted of the following: SCHEDULE OF INVESTMENT IN REAL ESTATE As of September 30, 2023 June 30, 2023 Land $ 22,998,000 $ 22,998,000 Buildings, improvements and equipment 73,758,000 73,151,000 Accumulated depreciation (50,698,000 ) (50,022,000 ) Investment in real estate, gross 46,058,000 46,127,000 Land held for development 1,930,000 1,930,000 Investment in real estate, net $ 47,988,000 $ 48,057,000 |
INVESTMENT IN MARKETABLE SECU_2
INVESTMENT IN MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SCHEDULE OF TRADING SECURITIES | At September 30, 2023 and June 30, 2023, all of the Company’s marketable securities are classified as trading securities. The change in the unrealized gains and losses on these investments are included in earnings. Trading securities are summarized as follows: SCHEDULE OF TRADING SECURITIES Gross Gross Net Investment Cost Unrealized Gain Unrealized Loss Unrealized Gain Fair Value As of September 30, 2023 Corporate Equities $ 11,404,000 $ 2,875,000 $ (689,000 ) $ 2,186,000 $ 13,590,000 As of June 30, 2023 Corporate Equities $ 15,419,000 $ 3,713,000 $ (787,000 ) $ 2,926,000 $ 18,345,000 |
SCHEDULE OF NET GAINS (LOSSES) ON MARKETABLE SECURITIES COMPRISING OF REALIZED AND UNREALIZED GAINS (LOSSES) | Net gains (losses) on marketable securities on the statement of operations is comprised of realized and unrealized gains (losses). Below is the composition of net losses on marketable securities for the three months ended September 30, 2023 and 2022, respectively: SCHEDULE OF NET GAINS (LOSSES) ON MARKETABLE SECURITIES COMPRISING OF REALIZED AND UNREALIZED GAINS (LOSSES) For the three months ended September 30, 2023 2022 Realized (loss) on marketable securities, net $ (106,000 ) $ (800,000 ) Unrealized loss on marketable securities, net (679,000 ) (10,000 ) Net loss on marketable securities $ (785,000 ) $ (810,000 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF FAIR VALUE MEASUREMENT ON RECURRING BASIS | The assets and liabilities measured at fair value on a recurring basis are as follows: SCHEDULE OF FAIR VALUE MEASUREMENT ON RECURRING BASIS As of September 30, 2023 June 30, 2023 Assets: Total - Level 1 Total - Level 1 Investment in marketable securities: REITs and real estate companies $ 3,147,000 $ 6,985,000 Technology 78,000 2,779,000 T-Notes 8,116,000 2,093,000 Financial services 965,000 1,865,000 Consumer cyclical 42,000 1,689,000 Basic materials 106,000 1,047,000 Healthcare 164,000 739,000 Communication services 769,000 566,000 Industrial 11,000 485,000 Utilities - 97,000 Energy 157,000 - Other 35,000 - Total $ 13,590,000 $ 18,345,000 |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows: SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH As of September 30, 2023 June 30, 2023 Cash and cash equivalents $ 6,686,000 $ 5,960,000 Restricted cash 6,073,000 6,914,000 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 12,759,000 $ 12,874,000 |
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SCHEDULE OF STOCK OPTION ACTIVITY | The following table summarizes the stock options activity from July 1, 2022 through September 30, 2023: SCHEDULE OF STOCK OPTION ACTIVITY Number of Weighted Average Weighted Average Aggregate Shares Exercise Price Remaining Life Intrinsic Value Oustanding at July 1, 2022 251,195 $ 15.95 2.60 $ 6,628,000 Granted - - - - Exercised - - - - Forfeited - - - - Exchanged - - - - Outstanding at June 30, 2023 251,195 $ 15.95 1.60 $ 4,957,000 Exercisable at June 30, 2023 251,195 $ 15.95 1.60 $ 4,957,000 Vested at June 30, 2023 251,195 $ 15.95 1.60 $ 4,957,000 Oustanding at July 1, 2023 251,195 $ 15.95 1.60 $ 4,957,000 Granted - - - - Exercised - - - - Forfeited - - - - Exchanged - - - - Outstanding at September 30, 2023 251,195 $ 15.95 1.35 $ 3,661,000 Exercisable at September 30, 2023 251,195 $ 15.95 1.35 $ 3,661,000 Vested at September 30, 2023 251,195 $ 15.95 1.35 $ 3,661,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING INFORMATION | SCHEDULE OF SEGMENT REPORTING INFORMATION As of and for the three months Hotel Real Estate Investment ended September 30, 2023 Operations Operations Transactions Corporate Total Revenues $ 11,093,000 $ 4,417,000 $ - $ - $ 15,510,000 Segment operating expenses (9,281,000 ) (2,356,000 ) - (755,000 ) (12,392,000 ) Segment income (loss) 1,812,000 2,061,000 - (755,000 ) 3,118,000 Interest expense - mortgage (1,606,000 ) (645,000 ) - - (2,251,000 ) Depreciation and amortization expense (845,000 ) (677,000 ) - - (1,522,000 ) Loss from investments - - (981,000 ) - (981,000 ) Income tax benefit - - - 14,000 14,000 Net income (loss) $ (639,000 ) $ 739,000 $ (981,000 ) $ (741,000 ) $ (1,622,000 ) Total assets $ 48,099,000 $ 47,988,000 $ 14,366,000 $ 9,091,000 $ 119,544,000 As of and for the three months Hotel Real Estate Investment ended September 30, 2022 Operations Operations Transactions Corporate Total Revenues $ 12,310,000 $ 4,078,000 $ - $ - $ 16,388,000 Segment operating expenses (9,306,000 ) (2,191,000 ) - (699,000 ) (12,196,000 ) Segment income (loss) 3,004,000 1,887,000 - (699,000 ) 4,192,000 Interest expense - mortgage (1,632,000 ) (590,000 ) - - (2,222,000 ) Depreciation and amortization expense (651,000 ) (678,000 ) - - (1,329,000 ) Loss from investments - - (900,000 ) - (900,000 ) Income tax benefit - - - 58,000 58,000 Net income (loss) $ 721,000 $ 619,000 $ (900,000 ) $ (641,000 ) $ (201,000 ) Total assets $ 47,526,000 $ 48,147,000 $ 10,687,000 $ 18,712,000 $ 125,072,000 |
RELATED PARTY AND OTHER FINAN_2
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
SUMMARY OF RELATED PARTY AND OTHER FINANCING TRANSACTIONS | The following summarizes the balances of related party and other notes payable as of September 30, 2023 and June 30, 2023, respectively. SUMMARY OF RELATED PARTY AND OTHER FINANCING TRANSACTIONS As of September 30, 2023 June 30, 2023 Note payable - Hilton $ 1,979,000 $ 2,058,000 Note payable - Aimbridge 834,000 896,000 Total other notes payable $ 2,813,000 $ 2,954,000 |
SCHEDULE OF FUTURE MINIMUM PRINCIPAL AMORTIZATIONS | Future minimum principal amortizations for all other financing transactions are as follows: SCHEDULE OF FUTURE MINIMUM PRINCIPAL AMORTIZATIONS For the year ending June 30, 2024 (9 months) $ 425,000 2025 567,000 2026 567,000 2027 463,000 2028 317,000 Thereafter 474,000 Long term debt $ 2,813,000 |
ACCOUNTS PAYABLE AND OTHER LI_2
ACCOUNTS PAYABLE AND OTHER LIABILITIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCOUNTS PAYABLE AND OTHER LIABILITIES - HOTEL | The following summarizes the balances of accounts payable and other liabilities – Hotel as of September 30, 2023 and June 30, 2023. SCHEDULE OF ACCOUNTS PAYABLE AND OTHER LIABILITIES - HOTEL As of September 30, 2023 June 30, 2023 Trade payable $ 4,261,000 $ 3,240,000 Advance deposits 671,000 560,000 Property tax payable 1,582,000 617,000 Payroll and related accruals 3,208,000 2,918,000 Mortgage interest payable 632,000 214,000 Withholding and other taxes payable 1,495,000 1,204,000 Security deposit 954,000 925,000 Franchise fees 1,707,000 2,510,000 Management fees payable 1,106,000 1,683,000 Other 367,000 319,000 Total accounts payable and other liabilities $ 15,983,000 $ 14,190,000 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Jul. 15, 2021 | Sep. 30, 2023 | Jun. 30, 2023 | Feb. 19, 2021 |
Notes payable | $ 106,896,000 | $ 107,117,000 | ||
Accumulated deficit | $ 107,287,000 | |||
Santa Fe Financial Corporation [Member] | ||||
Minority interest ownership percentage | 83.70% | |||
Portsmouth Square, Inc [Member] | ||||
Minority interest ownership percentage | 75.70% | 68.80% | ||
Non-controlling interest percentage | 0.70% | |||
Limited liability interest percentage | 100% | |||
Portsmouth Square, Inc [Member] | John V. Winfield [Member] | ||||
Non-controlling interest percentage | 2.50% |
SCHEDULE OF MATERIAL FINANCING
SCHEDULE OF MATERIAL FINANCING OBLIGATION (Details) | Sep. 30, 2023 USD ($) |
Debt Instrument [Line Items] | |
Long-term Debt | $ 220,477,000 |
3 Months 2023 | 111,919,000 |
Year 2024 | 12,784,000 |
Year 2025 | 4,122,000 |
Year 2026 | 6,045,000 |
Year 2027 | 4,375,000 |
Thereafter | 81,232,000 |
Mortgage And Subordinated Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 192,143,000 |
3 Months 2023 | 107,697,000 |
Year 2024 | 9,319,000 |
Year 2025 | 1,165,000 |
Year 2026 | 3,298,000 |
Year 2027 | 1,772,000 |
Thereafter | 68,892,000 |
Other Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 2,813,000 |
3 Months 2023 | 425,000 |
Year 2024 | 567,000 |
Year 2025 | 567,000 |
Year 2026 | 463,000 |
Year 2027 | 317,000 |
Thereafter | 474,000 |
Interest [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 25,521,000 |
3 Months 2023 | 3,797,000 |
Year 2024 | 2,898,000 |
Year 2025 | 2,390,000 |
Year 2026 | 2,284,000 |
Year 2027 | 2,286,000 |
Thereafter | $ 11,866,000 |
LIQUIDITY (Details Narrative)
LIQUIDITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||
Jul. 02, 2014 | Jul. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Jul. 31, 2022 | Dec. 31, 2021 | Dec. 16, 2020 | Jul. 31, 2018 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Net cash flow used for operations | $ 1,901,000 | $ 1,715,000 | |||||||
Cash and cash equivalents | 6,686,000 | $ 5,960,000 | |||||||
Restricted cash | 6,073,000 | 6,914,000 | |||||||
Marketable securities | $ 13,629,000 | 15,328,000 | |||||||
Debt instrument, maturity date, description | The mezzanine loan is secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The mezzanine interest only loan had an interest rate of 9.75% per annum and a maturity date of January 1, 2024 | ||||||||
Notes payable | $ 2,813,000 | 2,954,000 | |||||||
CIBC Bank USA [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Revolving line of credit reduced amount | $ 2,000,000 | ||||||||
Revolving line of credit amount | 5,000,000 | $ 5,000,000 | |||||||
Line of credit, available to be drawn | 2,000,000 | $ 2,000,000 | |||||||
Unsecured Debt [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Debt instrument, face amount | $ 4,250,000 | ||||||||
Interest rate | 12% | ||||||||
Debt Instrument, Payment Terms | with a term of 2 years | ||||||||
Loan fee percentage | 3% | ||||||||
Debt instrument, maturity date, description | The loan was extended to July 31, 2023 | ||||||||
Multi-family and Commercial Real Estate [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Payments for capital improvements | 2,933,000 | ||||||||
Portsmouth Square, Inc [Member] | Guest Room [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Payments for capital improvements | 755,000 | ||||||||
Justice Investors Limited Partnership and InterGroup [Member] | Loan Modification Agreement [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Debt instrument, face amount | $ 16,000,000 | $ 10,000,000 | |||||||
Debt instrument, maturity date, description | the note maturity date was extended to July 31, 2025 | ||||||||
Notes payable | 17,200,000 | $ 15,700,000 | $ 11,350,000 | ||||||
Debt instrument, increase amount | $ 20,000,000 | ||||||||
Additional funding | $ 1,500,000 |
SCHEDULE OF DISAGGREGATION OF R
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total hotel revenue | $ 15,510,000 | $ 16,388,000 |
Hotel Rooms [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total hotel revenue | 9,561,000 | 10,802,000 |
Food and Beverage [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total hotel revenue | 627,000 | 535,000 |
Garage [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total hotel revenue | 825,000 | 822,000 |
Other Operating Departments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total hotel revenue | 80,000 | 151,000 |
Hotel [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total hotel revenue | $ 11,093,000 | $ 12,310,000 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Reserve for estimated credit losses | $ 0 | $ 486,000 |
SCHEDULE OF INVESTMENT IN HOTEL
SCHEDULE OF INVESTMENT IN HOTEL. NET (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 108,689,000 | $ 107,935,000 |
Accumulated depreciation | (68,462,000) | (67,617,000) |
Net book value | 40,227,000 | 40,318,000 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 2,738,000 | 2,738,000 |
Accumulated depreciation | ||
Net book value | 2,738,000 | 2,738,000 |
Finance Lease ROU Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,805,000 | 1,805,000 |
Accumulated depreciation | (1,318,000) | (1,239,000) |
Net book value | 487,000 | 566,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 39,481,000 | 38,727,000 |
Accumulated depreciation | (30,087,000) | (29,682,000) |
Net book value | 9,394,000 | 9,045,000 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 64,665,000 | 64,665,000 |
Accumulated depreciation | (37,057,000) | (36,696,000) |
Net book value | $ 27,608,000 | $ 27,969,000 |
INVESTMENT IN HOTEL, NET (Detai
INVESTMENT IN HOTEL, NET (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Hotel [Member] | ||
Depreciation expense | $ 845,000 | $ 627,000 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Finance lease ROU assets useful life | 3 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Finance lease ROU assets useful life | 7 years | |
Building Improvements [Member] | Minimum [Member] | ||
Finance lease ROU assets useful life | 15 years | |
Building Improvements [Member] | Maximum [Member] | ||
Finance lease ROU assets useful life | 39 years |
SCHEDULE OF INVESTMENT IN REAL
SCHEDULE OF INVESTMENT IN REAL ESTATE (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Real Estate [Abstract] | ||
Land | $ 22,998,000 | $ 22,998,000 |
Buildings, improvements and equipment | 73,758,000 | 73,151,000 |
Accumulated depreciation | (50,698,000) | (50,022,000) |
Investment in real estate, gross | 46,058,000 | 46,127,000 |
Land held for development | 1,930,000 | 1,930,000 |
Investment in real estate, net | $ 47,988,000 | $ 48,057,000 |
INVESTMENT IN REAL ESTATE, NE_2
INVESTMENT IN REAL ESTATE, NET (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Real Estate [Line Items] | ||
Payments for real estate investments | $ 608,000 | $ 800,000 |
Real Estate [Member] | ||
Real Estate [Line Items] | ||
Depreciation expense | $ 676,000 | $ 678,000 |
Building Improvements and Equipment [Member] | Minimum [Member] | ||
Real Estate [Line Items] | ||
Investment in real estate, useful life | 5 years | |
Building Improvements and Equipment [Member] | Maximum [Member] | ||
Real Estate [Line Items] | ||
Investment in real estate, useful life | 40 years |
SCHEDULE OF TRADING SECURITIES
SCHEDULE OF TRADING SECURITIES (Details) - Equity Securities [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Jun. 30, 2023 | |
Financing Receivable, Past Due [Line Items] | ||
Cost | $ 11,404,000 | $ 15,419,000 |
Gross unrealized gain | 2,875,000 | 3,713,000 |
Gross unrealized loss | (689,000) | (787,000) |
Net unrealized gain | 2,186,000 | 2,926,000 |
Fair value | $ 13,590,000 | $ 18,345,000 |
SCHEDULE OF NET GAINS (LOSSES)
SCHEDULE OF NET GAINS (LOSSES) ON MARKETABLE SECURITIES COMPRISING OF REALIZED AND UNREALIZED GAINS (LOSSES) (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Realized (loss) on marketable securities, net | $ (106,000) | $ (800,000) |
Unrealized loss on marketable securities, net | (679,000) | (10,000) |
Net loss on marketable securities | $ (785,000) | $ (810,000) |
SCHEDULE OF FAIR VALUE MEASUREM
SCHEDULE OF FAIR VALUE MEASUREMENT ON RECURRING BASIS (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 13,590,000 | $ 18,345,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 13,590,000 | 18,345,000 |
Fair Value, Inputs, Level 1 [Member] | REITs and Real Estate Companies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 3,147,000 | 6,985,000 |
Fair Value, Inputs, Level 1 [Member] | Technology [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 78,000 | 2,779,000 |
Fair Value, Inputs, Level 1 [Member] | T Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 8,116,000 | 2,093,000 |
Fair Value, Inputs, Level 1 [Member] | Financial Services [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 965,000 | 1,865,000 |
Fair Value, Inputs, Level 1 [Member] | Consumer Cyclical [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 42,000 | 1,689,000 |
Fair Value, Inputs, Level 1 [Member] | Basic Material [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 106,000 | 1,047,000 |
Fair Value, Inputs, Level 1 [Member] | Health Care [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 164,000 | 739,000 |
Fair Value, Inputs, Level 1 [Member] | Communication Services [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 769,000 | 566,000 |
Fair Value, Inputs, Level 1 [Member] | Industrial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 11,000 | 485,000 |
Fair Value, Inputs, Level 1 [Member] | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 97,000 | |
Fair Value, Inputs, Level 1 [Member] | Energy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 157,000 | |
Fair Value, Inputs, Level 1 [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 35,000 |
SCHEDULE OF CASH, CASH EQUIVALE
SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 6,686,000 | $ 5,960,000 |
Restricted cash | 6,073,000 | 6,914,000 |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows | $ 12,759,000 | $ 12,874,000 |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Number of shares, outstanding, beginning balance | 251,195 | 251,195 | |
Weighted average exercise price, outstanding, beginning balance | $ 15.95 | $ 15.95 | |
Weighted average remaining life, outstanding, ending balance | 1 year 4 months 6 days | 1 year 7 months 6 days | 2 years 7 months 6 days |
Aggregate intrinsic value, outstanding, beginning balance | $ 4,957,000 | $ 6,628,000 | |
Number of shares, granted | |||
Weighted average exercise price, granted | |||
Number of shares, exercised | |||
Weighted average exercise price, exercised | |||
Number of shares, forfeited | |||
Weighted average exercise price, forfeited | |||
Number of shares, exchanged | |||
Weighted average exercise price, exchanged | |||
Number of shares, outstanding, ending balance | 251,195 | 251,195 | 251,195 |
Weighted average exercise price, outstanding, ending balance | $ 15.95 | $ 15.95 | $ 15.95 |
Aggregate intrinsic value, outstanding, ending balance | $ 3,661,000 | $ 4,957,000 | $ 6,628,000 |
Number of shares, exercisable, ending balance | 251,195 | 251,195 | |
Weighted average pxercise price, exercisable, ending balance | $ 15.95 | $ 15.95 | |
Weighted average remaining life, exercisable, ending balance | 1 year 4 months 6 days | 1 year 7 months 6 days | |
Aggregate intrinsic value, exercisable, ending balance | $ 3,661,000 | $ 4,957,000 | |
Number of shares, vested and expected to vest, ending balance | 251,195 | 251,195 | |
Weighted average exercise price, vested and expected to vest, ending balance | $ 15.95 | $ 15.95 | |
Weighted average remaining life, vested and expected to vest, ending balance | 1 year 4 months 6 days | 1 year 7 months 6 days | |
Aggregate intrinsic value, vested and expected to vest, ending balance | $ 3,661,000 | $ 4,957,000 |
SCHEDULE OF SEGMENT REPORTING I
SCHEDULE OF SEGMENT REPORTING INFORMATION (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 15,510,000 | $ 16,388,000 | |
Segment operating expenses | (13,914,000) | (13,525,000) | |
Segment income (loss) | 1,596,000 | 2,863,000 | |
Interest expense - mortgage | (2,251,000) | (2,222,000) | |
Depreciation and amortization expense | (1,522,000) | (1,329,000) | |
Income tax benefit | (14,000) | (58,000) | |
Net income (loss) | (1,622,000) | (201,000) | |
Total assets | 119,544,000 | $ 122,358,000 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 15,510,000 | 16,388,000 | |
Segment operating expenses | (12,392,000) | (12,196,000) | |
Segment income (loss) | 3,118,000 | 4,192,000 | |
Interest expense - mortgage | (2,251,000) | (2,222,000) | |
Depreciation and amortization expense | (1,522,000) | (1,329,000) | |
Loss from investments | (981,000) | (900,000) | |
Income tax benefit | 14,000 | 58,000 | |
Net income (loss) | (1,622,000) | (201,000) | |
Total assets | 119,544,000 | 125,072,000 | |
Hotel Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 11,093,000 | 12,310,000 | |
Segment operating expenses | (9,281,000) | (9,306,000) | |
Segment income (loss) | 1,812,000 | 3,004,000 | |
Interest expense - mortgage | (1,606,000) | (1,632,000) | |
Depreciation and amortization expense | (845,000) | (651,000) | |
Loss from investments | |||
Income tax benefit | |||
Net income (loss) | (639,000) | 721,000 | |
Total assets | 48,099,000 | 47,526,000 | |
Real Estate Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,417,000 | 4,078,000 | |
Segment operating expenses | (2,356,000) | (2,191,000) | |
Segment income (loss) | 2,061,000 | 1,887,000 | |
Interest expense - mortgage | (645,000) | (590,000) | |
Depreciation and amortization expense | (677,000) | (678,000) | |
Loss from investments | |||
Income tax benefit | |||
Net income (loss) | 739,000 | 619,000 | |
Total assets | 47,988,000 | 48,147,000 | |
Investment Transactions [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | |||
Segment operating expenses | |||
Segment income (loss) | |||
Interest expense - mortgage | |||
Depreciation and amortization expense | |||
Loss from investments | (981,000) | (900,000) | |
Income tax benefit | |||
Net income (loss) | (981,000) | (900,000) | |
Total assets | 14,366,000 | 10,687,000 | |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | |||
Segment operating expenses | (755,000) | (699,000) | |
Segment income (loss) | (755,000) | (699,000) | |
Interest expense - mortgage | |||
Depreciation and amortization expense | |||
Loss from investments | |||
Income tax benefit | 14,000 | 58,000 | |
Net income (loss) | (741,000) | (641,000) | |
Total assets | $ 9,091,000 | $ 18,712,000 |
SUMMARY OF RELATED PARTY AND OT
SUMMARY OF RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Related Party Transaction [Line Items] | ||
Total other notes payable | $ 2,813,000 | $ 2,954,000 |
Note Payable Hilton [Member] | ||
Related Party Transaction [Line Items] | ||
Total other notes payable | 1,979,000 | 2,058,000 |
Note Payable Aimbridge [Member] | ||
Related Party Transaction [Line Items] | ||
Total other notes payable | $ 834,000 | $ 896,000 |
SCHEDULE OF FUTURE MINIMUM PRIN
SCHEDULE OF FUTURE MINIMUM PRINCIPAL AMORTIZATIONS (Details) | Sep. 30, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 (9 months) | $ 111,919,000 |
2025 | 12,784,000 |
2026 | 4,122,000 |
2027 | 6,045,000 |
2028 | 4,375,000 |
Thereafter | 81,232,000 |
Long term debt | 220,477,000 |
Related Party Debt and Other Notes Payable [Member] | |
Debt Instrument [Line Items] | |
2024 (9 months) | 425,000 |
2025 | 567,000 |
2026 | 567,000 |
2027 | 463,000 |
2028 | 317,000 |
Thereafter | 474,000 |
Long term debt | $ 2,813,000 |
RELATED PARTY AND OTHER FINAN_3
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||||||||
Jul. 31, 2019 | Feb. 03, 2017 | Jul. 02, 2014 | Jul. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2021 | Jul. 31, 2019 | Jul. 31, 2018 | Sep. 30, 2023 | Jun. 30, 2023 | Jul. 31, 2022 | Dec. 31, 2021 | Dec. 16, 2020 | May 11, 2017 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||||||||||||||
Outstanding loan principal amount | $ 86,802,000 | $ 87,240,000 | |||||||||||||
Debt instrument, maturity date, description | The mezzanine loan is secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The mezzanine interest only loan had an interest rate of 9.75% per annum and a maturity date of January 1, 2024 | ||||||||||||||
Notes payable | $ 2,813,000 | 2,954,000 | |||||||||||||
Santa Fe [Member] | Management [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Equity investment interest | 3.70% | ||||||||||||||
Cash received in liquidation | $ 221,000 | ||||||||||||||
Shares received in liquidation | 18,641 | ||||||||||||||
CIBC Bank USA [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Revolving line of credit amount | $ 5,000,000 | $ 5,000,000 | |||||||||||||
Variable interest rate LIBOR | The RLOC carries a variable interest rate of 30-day LIBOR plus 3%. Interest is paid on a monthly basis. | ||||||||||||||
Line of credit, description | the maturity date of the RLOC from July 24, 2019 to July 23, 2020 | ||||||||||||||
Revolving line of credit reduced amount | 2,000,000 | ||||||||||||||
Line of credit, available to be drawn | 2,000,000 | $ 2,000,000 | |||||||||||||
Unsecured Debt [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Debt instrument payment terms | with a term of 2 years | ||||||||||||||
Interest rate | 12% | ||||||||||||||
Debt instrument, maturity date, description | The loan was extended to July 31, 2023 | ||||||||||||||
Debt instrument, face amount | $ 4,250,000 | ||||||||||||||
Loan fee percentage | 3% | ||||||||||||||
Santa Fe [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Proceeds from other investments | $ 1,159,000 | ||||||||||||||
Santa Fe [Member] | Ownership [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Equity investment interest | 83.70% | ||||||||||||||
Cash received in liquidation | $ 5,013,000 | ||||||||||||||
Shares received in liquidation | 422,998 | ||||||||||||||
Hotel Management Agreement [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Debt instrument, payment terms | 10 years | ||||||||||||||
Key money incentive fee | $ 2,000,000 | ||||||||||||||
Debt instrument, convertible, remaining discount amortization period | 8 years | ||||||||||||||
Unamortized debt issuance expense | 834,000 | 896,000 | |||||||||||||
Loan Modification Agreement [Member] | Justice Investors Limited Partnership and InterGroup [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Debt instrument, maturity date, description | the note maturity date was extended to July 31, 2025 | ||||||||||||||
Debt instrument, face amount | $ 16,000,000 | $ 10,000,000 | |||||||||||||
Notes payable | 17,200,000 | $ 15,700,000 | $ 11,350,000 | ||||||||||||
Debt instrument, increase amount | $ 20,000,000 | ||||||||||||||
Additional funding | 1,500,000 | ||||||||||||||
Interest Free Development Incentive Note [Member] | Hilton [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Notes reduction | $ 316,000 | ||||||||||||||
Debt instrument payment terms | through 2030 | ||||||||||||||
Prior Mortgage [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Accounts payable to related party | $ 42,940,000 | ||||||||||||||
Mortgage Loan [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Accounts payable to related party | $ 97,000,000 | $ 97,000,000 | |||||||||||||
Interest rate | 5.275% | ||||||||||||||
Mezzanine Loan [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Accounts payable to related party | $ 20,000,000 | $ 20,000,000 | |||||||||||||
New Mezzanine Loan [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Interest rate | 7.25% | 7.25% | |||||||||||||
Maturity date | Jan. 01, 2024 | ||||||||||||||
New Mezzanine Loan [Member] | Cred Reit Holdco LLC [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Interest rate | 9.75% | 9.75% | |||||||||||||
Debt instrument, face amount | $ 20,000,000 | $ 20,000,000 |
SCHEDULE OF ACCOUNTS PAYABLE AN
SCHEDULE OF ACCOUNTS PAYABLE AND OTHER LIABILITIES - HOTEL (Details) - Hotel [Member] - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Trade payable | $ 4,261,000 | $ 3,240,000 |
Advance deposits | 671,000 | 560,000 |
Property tax payable | 1,582,000 | 617,000 |
Payroll and related accruals | 3,208,000 | 2,918,000 |
Mortgage interest payable | 632,000 | 214,000 |
Withholding and other taxes payable | 1,495,000 | 1,204,000 |
Security deposit | 954,000 | 925,000 |
Franchise fees | 1,707,000 | 2,510,000 |
Management fees payable | 1,106,000 | 1,683,000 |
Other | 367,000 | 319,000 |
Total accounts payable and other liabilities | $ 15,983,000 | $ 14,190,000 |