Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Aug. 30, 2018 | Dec. 29, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | PORTSMOUTH SQUARE INC | ||
Entity Central Index Key | 79,661 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 5,157,000 | ||
Trading Symbol | PRSI | ||
Entity Common Stock, Shares Outstanding | 734,183 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
ASSETS | ||
Investment in Hotel, net | $ 34,278,000 | $ 35,213,000 |
Investment in real estate | 973,000 | 973,000 |
Investment in marketable securities | 2,507,000 | 3,861,000 |
Other investments, net | 267,000 | 389,000 |
Cash and cash equivalents | 7,623,000 | 2,049,000 |
Restricted cash | 7,060,000 | 5,111,000 |
Accounts receivable - Hotel, net | 1,809,000 | 1,436,000 |
Other assets, net | 731,000 | 867,000 |
Deferred tax asset | 5,159,000 | 10,927,000 |
Total assets | 60,407,000 | 60,826,000 |
Liabilities: | ||
Accounts payable and other liabilities | 12,119,000 | 15,085,000 |
Due to securities broker | 490,000 | 592,000 |
Obligations for securities sold | 512,000 | 867,000 |
Related party and other notes payable | 8,641,000 | 10,209,000 |
Capital leases | 1,355,000 | 0 |
Mortgage notes payable - Hotel | 114,372,000 | 115,615,000 |
Total liabilities | 137,489,000 | 142,368,000 |
Commitments and contingencies (Note 17) | ||
Shareholders' deficit: | ||
Common stock, no par value: Authorized shares - 750,000; 734,183 shares issued and outstanding as of June 30, 2018 and 2017 | 2,092,000 | 2,092,000 |
Accumulated deficit | (73,475,000) | (77,120,000) |
Total Portsmouth shareholders' deficit | (71,383,000) | (75,028,000) |
Noncontrolling interest | (5,699,000) | (6,514,000) |
Total shareholders' deficit | (77,082,000) | (81,542,000) |
Total liabilities and shareholders' deficit | $ 60,407,000 | $ 60,826,000 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Jun. 30, 2018 | Jun. 30, 2017 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common stock, shares authorized | 750,000 | 750,000 |
Common stock, shares issued | 734,183 | 734,183 |
Common stock , shares outstanding | 734,183 | 734,183 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue - Hotel | $ 57,099,000 | $ 54,334,000 |
Costs and operating expenses | ||
Hotel operating expenses | (40,103,000) | (41,031,000) |
Recovery of legal settlement costs | 5,775,000 | 0 |
Depreciation and amortization expense | (2,509,000) | (2,860,000) |
General and administrative expense | (913,000) | (635,000) |
Total costs and operating expenses | (37,750,000) | (44,526,000) |
Income from operations | 19,349,000 | 9,808,000 |
Other income (expense) | ||
Interest expense - mortgage | (7,806,000) | (7,736,000) |
Loss on marketable securities | (854,000) | (1,295,000) |
Net unrealized loss on other investments | (11,000) | 0 |
Impairment loss on other investments | (72,000) | (60,000) |
Dividend and interest income | 32,000 | 44,000 |
Trading and margin interest expense | (192,000) | (170,000) |
Net other expense | (8,903,000) | (9,217,000) |
Income before income taxes | 10,446,000 | 591,000 |
Income tax expense | (5,986,000) | (196,000) |
Net income | 4,460,000 | 395,000 |
Less: Net income attributable to the noncontrolling interest | (815,000) | (150,000) |
Net income attributable to Portsmouth | $ 3,645,000 | $ 245,000 |
Basic and diluted income per share attributable to Portsmouth | $ 4.96 | $ 0.33 |
Weighted average number of common shares outstanding | 734,183 | 734,183 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT - USD ($) | Total | Shareholders' Equity [Member] | Common Stock [Member] | Accumulated Deficit [Member] | Noncontrolling Interest [Member] |
Balance at Jun. 30, 2016 | $ (81,937,000) | $ (75,273,000) | $ 2,092,000 | $ (77,365,000) | $ (6,664,000) |
Balance (in shares) at Jun. 30, 2016 | 734,183 | ||||
Net income | 395,000 | 245,000 | 245,000 | 150,000 | |
Balance at Jun. 30, 2017 | (81,542,000) | (75,028,000) | $ 2,092,000 | (77,120,000) | (6,514,000) |
Balance (in shares) at Jun. 30, 2017 | 734,183 | ||||
Net income | 4,460,000 | 3,645,000 | 3,645,000 | 815,000 | |
Balance at Jun. 30, 2018 | $ (77,082,000) | $ (71,383,000) | $ 2,092,000 | $ (73,475,000) | $ (5,699,000) |
Balance (in shares) at Jun. 30, 2018 | 734,183 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 4,460,000 | $ 395,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net unrealized loss on marketable securities | 1,051,000 | 1,321,000 |
Unrealized loss on other investments | 11,000 | 0 |
Deferred income taxes | 5,768,000 | 161,000 |
Impairment loss on other investments | 72,000 | 60,000 |
Depreciation and amortization | 2,274,000 | 2,944,000 |
Changes in assets and liabilities: | ||
Investment in marketable securities | 303,000 | (1,144,000) |
Accounts receivable - hotel, net | (373,000) | 1,782,000 |
Other assets, net | 136,000 | 407,000 |
Accounts payable and other liabilities | (2,966,000) | (2,096,000) |
Due to securities broker | (102,000) | 301,000 |
Obligations for securities sold | (355,000) | 838,000 |
Net cash provided by operating activities | 10,279,000 | 4,969,000 |
Cash flows from investing activities: | ||
Payments for hotel furniture, equipment and building improvements | (210,000) | (329,000) |
Proceeds from (purchase of) other investments | 39,000 | (90,000) |
Net cash used in investing activities | (171,000) | (419,000) |
Cash flows from financing activities: | ||
Payments of mortgage and other notes payable | (2,585,000) | (1,666,000) |
Restricted cash for capital improvements and mortgage impounds | (1,949,000) | (4,213,000) |
Net cash used in financing activities | (4,534,000) | (5,879,000) |
Net increase (decrease) in cash and cash equivalents | 5,574,000 | (1,329,000) |
Cash and cash equivalents at beginning of year | 2,049,000 | 3,378,000 |
Cash and cash equivalents at end of year | 7,623,000 | 2,049,000 |
Supplemental information: | ||
Income tax paid | 27,000 | 0 |
Interest paid | 7,876,000 | 7,799,000 |
Assets Held under Capital Leases [Member] | ||
Non-cash transactions: | ||
Additions to Hotel equipment through capital lease | $ 1,364,000 | $ 0 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Description of Business Portsmouth’s primary business is conducted through its general and limited partnership interest in Justice Investors Limited Partnership, a California limited partnership (“Justice” or the “Partnership”). Portsmouth has a 93.1% limited partnership interest in Justice and is the sole general partner. The financial statements of Justice are consolidated with those of the Company. As of June 30, 2018, Santa Fe Financial Corporation (“Santa Fe”), a public company, owns approximately 68.8% of the outstanding common shares of Portsmouth Square, Inc. (“Portsmouth” or the “Company”). Santa Fe is an 81.9%-owned subsidiary of The InterGroup Corporation (“InterGroup”), a public company. InterGroup also directly owns approximately 13.4% of the common stock of Portsmouth. Justice, through its subsidiaries Justice Operating Company, LLC (“Operating”), Justice Mezzanine Company, LLC (“Mezzanine”), and Kearny Street Parking, LLC (“Parking”) owns 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. Mezzanine and Parking are both wholly-owned subsidiaries of the Partnership; Operating is a wholly-owned subsidiary 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 operated by the partnership as a full-service Hilton brand hotel pursuant to a Franchise License Agreement with HLT Franchise Holding LLC (Hilton). Justice had a management agreement with Prism Hospitality L.P. (“Prism”) to perform certain management functions for the Hotel. The management agreement with Prism had an original term of ten years, subject to the Partnership’s right to terminate at any time with or without cause. Effective January 2014, the management agreement with Prism was amended by the Partnership to change the nature of the services provided by Prism and the compensation payable to Prism, among other things. Prism’s management agreement was terminated upon its expiration date of February 3, 2017. Effective December 1, 2013, GMP Management, Inc. (“GMP”), a company owned by a Justice limited partner and a related party, also provided management services for the Partnership pursuant to a management services agreement, with a three-year term, subject to the Partnership’s right to terminate earlier for cause. In June 2016, GMP resigned. After a lengthy review process of several national third-party hotel management companies, on February 1, 2017, Justice entered into a Hotel management agreement (“HMA”) with Interstate Management Company, LLC (“Interstate”) to manage the Hotel with an effective takeover date of February 3, 2017. The term of management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for an additional year not to exceed five years in the aggregate subject to certain conditions. The HMA also provides for Interstate to advance a key money incentive fee to the Hotel for capital improvements in the amount of $2,000,000 under certain terms and conditions described in a separate key money agreement. The $2,000,000 is included in the restricted cash and related party and other notes payable balances in the consolidated balance sheets as of June 30, 2018. Principles of Consolidation The consolidated financial statements include the accounts of the Company and Justice. All significant inter-company transactions and balances have been eliminated. Investment in Hotel, Net Property and equipment are stated at cost. Building improvements are depreciated on a straight-line basis over their useful lives ranging from 3 to 39 years. Furniture, fixtures, and equipment are depreciated on a straight-line basis over their useful lives ranging from 3 to 7 years. Repairs and maintenance are charged to expense as incurred. Costs of significant renewals and improvements are capitalized and depreciated over the shorter of its remaining estimated useful life or life of the asset. The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts; any resulting gain or loss is included in other income (expenses). The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with generally accepted accounting principles (“GAAP”). If the carrying amount of the asset, including any intangible assets associated with that asset, exceeds its estimated undiscounted net cash flow, before interest, the Partnership will recognize an impairment loss equal to the difference between its carrying amount and its estimated fair value. If impairment is recognized, the reduced carrying amount of the asset will be accounted for as its new cost. For a depreciable asset, the new cost will be depreciated over the asset’s remaining useful life. Generally, fair values are estimated using discounted cash flow, replacement cost or market comparison analyses. The process of evaluating for impairment requires estimates as to future events and conditions, which are subject to varying market and economic factors. Therefore, it is reasonably possible that a change in estimate resulting from judgments as to future events could occur which would affect the recorded amounts of the property. No impairment losses were recorded for the years ended June 30, 2018 and 2017. Investment in Marketable Securities Marketable securities are stated at fair value as determined by the most recently traded price of each security at the balance sheet date. Marketable securities are classified as trading securities with all unrealized gains and losses on the Company's investment portfolio recorded through the consolidated statements of operations. Other Investments, Net Other investments include non-marketable securities (carried at cost, net of any impairments loss) and non –marketable warrants (carried at fair value). The Company has no significant influence or control over the entities that issue these investments. These investments are reviewed on a periodic basis for other-than-temporary impairment. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include but are not limited to: (i) the length of time an investment is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near term prospects of the issuer and (iv) our ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. For the years ended June 30, 2018 and 2017, the Company recorded impairment losses related to other investments of $72,000 and $60,000, respectively. As of June 30, 2018 and 2017, the allowance for impairment losses was $2,220,000 and $2,159,000, respectively. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an original maturity of three months or less when purchased and are carried at cost, which approximates fair value. Restricted Cash Restricted cash is comprised of amounts held by lenders for payment of real estate taxes, insurance, replacement and capital addition reserves for the Hotel. It also includes key money received from Interstate that is restricted for capital improvements. Accounts Receivable - Hotel, Net Accounts receivable from Hotel customers are carried at cost less an allowance for doubtful accounts that is based on management’s assessment of the collectability of accounts receivable. The Partnership extends unsecured credit to its customers but mitigates the associated credit risk by performing ongoing credit evaluations of its customers. Other Assets, Net Other assets include prepaid insurance, accounts receivable, franchise fees, and other miscellaneous assets. Franchise fees are stated at cost and amortized over the life of the agreement (15 years). Income Taxes Deferred income taxes are calculated under the liability method. Deferred income tax assets and liabilities are based on differences between the financial statement and tax basis of assets and liabilities at the current enacted tax rates. Changes in deferred income tax assets and liabilities are included as a component of income tax expense. Changes in deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets where realization is not likely. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold based on the technical merits of the positions. Due to Securities Broker Various securities brokers have advanced funds to the Company for the purchase of marketable securities under standard margin agreements. These advanced funds are recorded as a liability. Obligations for Securities Sold Obligation for securities sold represents the fair market value of shares sold with the promise to deliver that security at some future date and the fair market value of shares underlying the written call options with the obligation to deliver that security when and if the option is exercised. The obligation may be satisfied with current holdings of the same security or by subsequent purchases of that security. Unrealized gains and losses from changes in the obligation are included in the consolidated statement of operations. Accounts Payable and Other Liabilities Accounts payable and other liabilities include trade payables, advance customer deposits, accrued wages, accrued real estate taxes, and other liabilities. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Accounting standards for fair value measurement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1 Level 2 Level 3 Revenue Recognition Room revenue is recognized on the date upon which a guest occupies a room and/or utilizes the Hotel’s services. Food and beverage revenues are recognized upon delivery. Garage revenue is recognized when a guest uses the garage space. The Company records a liability for payments collected in advance of revenue recognition. This liability is included in Accounts payable and other liabilities. Advertising Costs Advertising costs are expensed as incurred and are included in Hotel operating expenses in the consolidated statements of operations. Advertising costs were $302,000 and $294,000 for the years ended June 30, 2018 and 2017, respectively. Basic and Diluted Income (Loss) per Share Basic income per share is calculated based upon the weighted average number of common shares outstanding during each fiscal year. As of June 30, 2018 and 2017, the Company did not have any potentially dilutive securities outstanding. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to the recording of allowance for doubtful accounts and allowance for impairment losses which are based on management’s assessment of the collectability of accounts receivable and the fair market value of nonmarketable securities, respectively, as of the end of the fiscal year. Actual results may differ from those estimates. Debt Issuance Costs Debt issuance costs related to a recognized debt liability are presented in the consolidated balance sheets as a direct deduction from the carrying amount of the debt liability and are amortized over the life of the debt. Loan amortization costs are included in interest expense in the consolidated statement of operations. Recent Accounting Pronouncements and U.S. Tax Reform In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08) which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position as right-of-use assets and lease liabilities by lessees. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach and are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. We intend to adopt the standard on July 1, 2019. The Company is currently reviewing the effect of ASU No. 2016-02. On June 16, 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” This ASU modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the timelier recognition of losses. ASU No. 2016-13 will be effective for us as of January 1, 2020. The Company is currently reviewing the effect of ASU No. 2016-13. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises the future ongoing corporate income tax by, among other things, lowering corporate income tax rates. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a statutory federal rate of approximately 28% for our fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. The decrease in corporate tax rate reduced the Company’s deferred tax asset to the lower federal base rate of 21%. As a result, a provisional net charge of $2,723,000 was included in the income tax expense for the year ended June 30, 2018. The changes included in the Tax Act are broad and complex. The final transition impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the company has utilized to calculate the transition impact. The Securities Exchange Commission has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. |
JUSTICE INVESTORS
JUSTICE INVESTORS | 12 Months Ended |
Jun. 30, 2018 | |
Justice Investors [Abstract] | |
Justice Investors [Text Block] | NOTE 2 - JUSTICE INVESTORS Justice Investors Limited Partnership, a California limited partnership (“Justice” or the “Partnership”), was formed in 1967 to acquire real property in San Francisco, California, for the development and lease of the Hotel and related facilities. The Partnership has one general partner, Portsmouth Square, Inc., a California corporation (“Portsmouth”) and approximately 24 voting limited partners, including Portsmouth. Management believes that the revenues and cash flows expected to be generated from the operations of the Hotel, garage and leases will be sufficient to meet all of the Partnership’s current and future obligations and financial requirements. Management also believes that there is significant appreciated value in the Hotel property in excess of the net book value to support additional borrowings, if necessary. |
INVESTMENT IN HOTEL, NET
INVESTMENT IN HOTEL, NET | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 3 – INVESTMENT IN HOTEL, NET Investment in Hotel consisted of the following as of: Accumulated Net Book June 30, 2018 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Furniture and equipment 29,350,000 (25,877,000 ) 3,473,000 Building and improvements 55,945,000 (26,264,000 ) 29,681,000 $ 86,419,000 $ (52,141,000 ) $ 34,278,000 Accumulated Net Book June 30, 2017 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Furniture and equipment 27,681,000 (24,570,000 ) 3,111,000 Building and improvements 55,918,000 (24,940,000 ) 30,978,000 $ 84,723,000 $ (49,510,000 ) $ 35,213,000 |
INVESTMENT IN REAL ESTATE
INVESTMENT IN REAL ESTATE | 12 Months Ended |
Jun. 30, 2018 | |
Real Estate Investments, Net [Abstract] | |
Investment In Real Estate [Text Block] | NOTE 4 – INVESTMENT IN REAL ESTATE In August 2007, the Company agreed to acquire 50% interest in InterGroup Uluniu, Inc., a Hawaiian corporation and a 100% owned subsidiary of InterGroup, for $973,000, which represents an amount equal to the costs paid by InterGroup for the acquisition and carrying costs of approximately two acres of unimproved land held for development located in Maui, Hawaii. As a related party transaction, the fairness of the financial terms of the transaction were reviewed and approved by the independent director of the Company. |
INVESTMENT IN MARKETABLE SECURI
INVESTMENT IN MARKETABLE SECURITIES | 12 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 5 - INVESTMENT IN MARKETABLE SECURITIES The Company’s investment in marketable securities consists primarily of corporate equities. The Company has also invested in corporate bonds and income producing securities, which may include interests in real estate based companies and REITs, where financial benefit could insure to its shareholders through income and/or capital gain. As of June 30, 2018 and 2017, 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: Gross Gross Net Fair Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Value As of June 30, 2018 Corporate Equities $ 7,729,000 $ 385,000 $ (5,607,000 ) $ (5,222,000 ) $ 2,507,000 As of June 30, 2017 Corporate Equities $ 8,012,000 $ 381,000 $ (4,532,000 ) $ (4,151,000 ) $ 3,861,000 As of June 30, 2018 and 2017, approximately 18% and 42% of the investment marketable securities balance above is comprised of the common stock of Comstock Mining Inc. As of June 30, 2018 and 2017, the Company had $5,584,000 and $4,494,000, respectively, of unrealized losses related to securities held for over one year. Net loss on marketable securities on the statement of operations is comprised of realized and unrealized losses. Below is the composition of the two components for the years ended June 30, 2018 and 2017, respectively. For the year ended June 30, 2018 2017 Realized gain on marketable securities $ 197,000 $ 26,000 Unrealized loss on marketable securities related to Comstock (1,138,000 ) (1,511,000 ) Unrealized gain on marketable securities 87,000 190,000 Net loss on marketable securities $ (854,000 ) $ (1,295,000 ) |
OTHER INVESTMENTS, NET
OTHER INVESTMENTS, NET | 12 Months Ended |
Jun. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Other Investments Disclosure [Text Block] | NOTE 6 – OTHER INVESTMENTS, NET The Company may also invest, with the approval of the Securities Investment Committee and other Company guidelines, in private investment equity funds and other unlisted securities, such as convertible notes through private placements. Those investments in non-marketable securities are carried at cost on the Company’s balance sheet as part of other investments, net of other than temporary impairment losses. Other investments, net consist of the following: Type June 30, 2018 June 30, 2017 Private equity hedge fund, at cost $ 202,000 $ 284,000 Other investments 65,000 105,000 $ 267,000 $ 389,000 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 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 measured at fair value on a recurring basis are as follows: As of June 30, 2018 Level 1 Assets: Investment in marketable securities: REITs and real estate companies $ 757,000 Basic materials 462,000 Healthcare 424,000 Other 864,000 $ 2,507,000 As of June 30, 2017 Level 1 Assets: Investment in marketable securities: Basic materials $ 1,816,000 Energy 411,000 Technology 918,000 Other 716,000 $ 3,861,000 The fair values of investments in marketable securities are determined by the most recently traded price of each security at the balance sheet date. Financial assets that are measured at fair value on a non-recurring basis and are not included in the tables above include “Other investments in non-marketable securities,” that were initially measured at cost and have been written down to fair value as a result of impairment or adjusted to record the fair value of new instruments received (i.e., preferred shares) in exchange for old instruments (i.e., debt instruments). The following table shows the fair value hierarchy for these assets measured at fair value on a non-recurring basis as follows: Net loss for the year Assets Level 3 June 30, 2018 ended June 30, 2018 Other non-marketable investments $ 267,000 $ 267,000 $ (83,000 ) Net loss for the year Assets Level 3 June 30, 2017 ended June 30, 2017 Other non-marketable investments $ 389,000 $ 389,000 $ (60,000 ) For fiscal year ended June 30, 2018, we received distribution from other non-marketable investments of $36,000. Other investments in non-marketable securities are carried at cost net of any impairment loss. The Company has no significant influence or control over the entities that issue these investments. These investments are reviewed on a periodic basis for other-than-temporary impairment. When determining the fair value of these investments on a non-recurring basis, the Company uses valuation techniques such as the market approach and the unobservable inputs include factors such as conversion ratios and the stock price of the underlying convertible instruments. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include but are not limited to: (i) the length of time an investment is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near-term prospects of the issuer and (iv) our ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. |
OTHER ASSETS, NET
OTHER ASSETS, NET | 12 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 8 – OTHER ASSETS, NET Other assets consist of the following as of June 30: 2018 2017 Inventory - Hotel $ 59,000 $ 68,000 Prepaid expenses 409,000 499,000 Miscellaneous assets, net 263,000 300,000 Total other assets $ 731,000 $ 867,000 |
RELATED PARTY AND OTHER FINANCI
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | 12 Months Ended |
Jun. 30, 2018 | |
Related Party and Other Financing Transactions [Abstract] | |
Related Party and Other Financing Transactions [Text Block] | NOTE 9 – RELATED PARTY AND OTHER FINANCING TRANSACTIONS On July 2, 2014, the Partnership obtained from InterGroup (a related party) an unsecured loan in the principal amount of $4,250,000 at 12% per year fixed interest, with a term of 2 years, payable interest only each month. InterGroup received a 3% loan fee. The loan may be prepaid at any time without penalty. The loan was extended to December 31, 2018. The balance of this loan was $3,000,000 and $4,250,000 as of June 30, 2018 and 2017, respectively, and are included in the related party and other note payable in the consolidated balance sheets. Also included in the balance of the related party note payable at June 30, 2018 and 2017 is the obligation to Hilton (Franchisor) in the form of a self-exhausting, interest free development incentive note which will be reduced approximately $316,000 annually through 2030 by Hilton if the Partnership is still a Franchisee with Hilton. As of June 30, 2018 and 2017, the balance of the note was $3,642,000 and $3,958,000, respectively. On February 1, 2017, Justice entered into a Hotel management agreement (“HMA”) with Interstate Management Company, LLC (“Interstate”) to manage the Hotel with an effective takeover date of February 3, 2017. The term of management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for an additional year not to exceed five years in the aggregate subject to certain conditions. The HMA also provides for Interstate to advance a key money incentive fee to the Hotel for capital improvements in the amount of $2,000,000 under certain terms and conditions described in a separate key money agreement. The key money contribution shall be amortized in equal monthly amounts over an eight (8) year period commencing on the second (2 nd As of June 30, 2018, the Company had capital lease obligations outstanding of $1,355,000. These capital leases expire in various years through 2023 at rates ranging from 5.77% to 6.53% per annum. Minimum future lease payments for assets under capital leases as of June 30, 2018 are as follows: For the year ending June 30, 2019 $ 358,000 2020 384,000 2021 384,000 2022 376,000 2023 26,000 Total minimum lease payments 1,528,000 Less interest on capital lease (173,000 ) Present value of future minimum lease payments 1,355,000 Future minimum principle payments for all related party and other financing transactions are as follows: For the year ending June 30, 2019 $ 3,710,000 2020 895,000 2021 916,000 2022 930,000 2023 592,000 Thereafter 2,953,000 $ 9,996,000 |
MORTGAGE NOTES PAYABLE
MORTGAGE NOTES PAYABLE | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Mortgage Notes Payable Disclosure [Text Block] | NOTE 10 – MORTGAGE NOTES PAYABLE On December 18, 2013: (i) Justice Operating Company, LLC, a Delaware limited liability company (“Operating”), entered into a loan agreement (“Mortgage Loan Agreement”) with Bank of America (“Mortgage Lender”); and (ii) Justice Mezzanine Company, a Delaware limited liability company (“Mezzanine”), entered into a mezzanine loan agreement (“Mezzanine Loan Agreement” and, together with the Mortgage Loan Agreement, the “Loan Agreements”) with ISBI San Francisco Mezz Lender LLC (“Mezzanine Lender” and, together with Mortgage Lender, the “Lenders”). The Partnership is the sole member of Mezzanine, and Mezzanine is the sole member of Operating. The Loan Agreements provide for a $97,000,000 Mortgage Loan and a $20,000,000 Mezzanine Loan. The proceeds of the Loan Agreements were used to fund the redemption of limited partnership interests and the pay-off of the prior mortgage. The Mortgage Loan is secured by the Partnership’s principal asset, the Hilton San Francisco-Financial District (the “Property”). The Mortgage Loan bears an interest rate of 5.275% per annum and matures in January 2024. The term of the loan is 10 years with interest only due in the first three years and principle and interest on the remaining seven years of the loan based on a thirty-year amortization schedule. The Mortgage Loan also requires payments for impounds related to property tax, insurance and capital improvement reserves. As additional security for the Mortgage Loan, there is a limited guaranty (“Mortgage Guaranty”) executed by the Company in favor of Mortgage Lender. The Mezzanine Loan is a secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The Mezzanine Loan bears interest at 9.75% per annum and matures on January 1, 2024. Interest only, payments are due monthly. As additional security for the Mezzanine Loan, there is a limited guaranty executed by the Company in favor of Mezzanine Lender (the “Mezzanine Guaranty” and, together with the Mortgage Guaranty, the “Guaranties”). The Guaranties are limited to what are commonly referred to as “bad boy” acts, including: (i) fraud or intentional misrepresentations; (ii) gross negligence or willful misconduct; (iii) misapplication or misappropriation of rents, security deposits, insurance or condemnation proceeds; and (iv) failure to pay taxes or insurance. The Guaranties are full recourse guaranties under identified circumstances, including failure to maintain “single purpose” status which is a factor in a consolidation of Operating or Mezzanine in a bankruptcy of another person, transfer or encumbrance of the Property in violation of the applicable loan documents, Operating or Mezzanine incurring debts that are not permitted, and the Property becoming subject to a bankruptcy proceeding. Pursuant to the Guaranties, the Partnership is required to maintain a certain minimum net worth and liquidity. Effective as of May 12, 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 mortgage loan and the $20,000,000 mezzanine loan. Pursuant to the agreement, InterGroup is required to maintain a certain net worth and liquidity. As of June 30, 2018, management believes that InterGroup is in compliance with both requirements. Each of the Loan Agreements contains customary representations and warranties, events of default, reporting requirements, affirmative covenants and negative covenants, which impose restrictions on, among other things, organizational changes of the respective borrower, operations of the Property, agreements with affiliates and third parties. Each of the Loan Agreements also provides for mandatory prepayments under certain circumstances (including casualty or condemnation events) and voluntary prepayments, subject to satisfaction of prescribed conditions set forth in the Loan Agreements. As of June 30, 2018 and 2017, the Company had the following mortgages: June 30, 2018 June 30, 2017 Interest Rate Origination Date Maturity Date $ 95,018,000 $ 96,343,000 Fixed 5.28% December 18, 2013 January 1, 2024 20,000,000 20,000,000 Fixed 9.75% December 18, 2013 January 1, 2024 115,018,000 116,343,000 Mortgage notes payable - hotel (646,000 ) (728,000 ) Net debt issuance costs $ 114,372,000 $ 115,615,000 Total mortgage notes payable - hotel Future minimum principle payments for mortgage notes payable are as follows: For the year ending June 30, 2019 $ 1,412,000 2020 1,461,000 2021 1,555,000 2022 1,640,000 2023 1,730,000 Thereafter 107,220,000 $ 115,018,000 |
GARAGE OPERATIONS
GARAGE OPERATIONS | 12 Months Ended |
Jun. 30, 2018 | |
Garage Operations And Rental Income [Abstract] | |
Garage Operations And Rental Income [Text Block] | NOTE 11 – GARAGE OPERATIONS The parking garage that is part of the Hotel property was managed by Ace Parking pursuant to a contract with the Partnership. The contract was terminated with an effective termination date of October 4, 2016. The Company began managing the parking garage in-house after the termination of Ace Parking. Effective February 3, 2017, Interstate took over the management of the parking garage along with the Hotel. |
MANAGEMENT AGREEMENTS
MANAGEMENT AGREEMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Management Agreement [Abstract] | |
Management Agreements [Text Block] | NOTE 12 – MANAGEMENT AGREEMENTS Justice had a management agreement with Prism Hospitality L.P. (“Prism”) to perform certain management functions for the Hotel. The management agreement with Prism had an original term of ten years, subject to the Partnership’s right to terminate at any time with or without cause. Effective January 2014, the management agreement with Prism was amended by the Partnership to change the nature of the services provided by Prism and the compensation payable to Prism, among other things. Prism’s management agreement was terminated upon its expiration date of February 3, 2017. Effective December 1, 2013, GMP Management, Inc. (“GMP”), a company owned by a Justice limited partner and a related party, also provided management services for the Partnership pursuant to a management services agreement, with a three-year term, subject to the Partnership’s right to terminate earlier for cause. In June 2016, GMP resigned. After a lengthy review process of several national third-party hotel management companies, on February 1, 2017, Justice entered into a Hotel management agreement (“HMA”) with Interstate Management Company, LLC (“Interstate”) to manage the Hotel with an effective takeover date of February 3, 2017. The term of management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for an additional year not to exceed five years in the aggregate subject to certain conditions. The HMA also provides for Interstate to advance a key money incentive fee to the Hotel for capital improvements in the amount of $2,000,000 under certain terms and conditions described in a separate key money agreement. The key money contribution shall be amortized in equal monthly amounts over an eight (8) year period commencing on the second (2 nd |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 13 – CONCENTRATION OF CREDIT RISK As of June 30, 2018 and 2017, all accounts receivables are related to Hotel customers. The Hotel had two customers that accounted for 32%, or $572,000 of accounts receivable at June 30, 2018, and one customer that accounted for 27%, or $390,000 of accounts receivable at June 30, 2017. The Partnership maintains its cash and cash equivalents and restricted cash with various financial institutions that are monitored regularly for credit quality. At times, such cash and cash equivalents holdings may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) or other federally insured limits. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 14 - INCOME TAXES The provision for income taxes expense consists of the following: For the years ended June 30, 2018 2017 Federal Current tax expense $ (167,000 ) $ (34,000 ) Deferred tax expense (4,976,000 ) (81,000 ) (5,143,000 ) (115,000 ) State Current tax expense (51,000 ) (1,000 ) Deferred tax expense (792,000 ) (80,000 ) (843,000 ) (81,000 ) Total income tax expense $ (5,986,000 ) $ (196,000 ) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises the future ongoing corporate income tax by, among other things, lowering corporate income tax rates. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a statutory federal rate of approximately 28% for our fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. The decrease in corporate tax rate reduced the Company’s deferred tax asset to the lower federal base rate of 21%. As a result, a provisional net charge of $2,723,000 was included in the income tax expense for the year ended June 30, 2018. A reconciliation of the statutory federal income tax rate to the effective tax rate is as follows: For the years ended June 30, 2018 2017 Statutory federal tax rate 27.6 % 34.0 % State income taxes, net of federal tax benefit 6.4 % 2.6 % Change in federal tax rate 28.3 % - Other - 7.8 % 62.3 % 44.4 % The components of the Company’s deferred tax assets and (liabilities) as of June 30, 2018 and 2017, are as follows: 2018 2017 Deferred tax assets Net operating loss carryforward $ 5,272,000 $ 11,207,000 Investment reserve 741,000 1,033,000 Other 1,776,000 1,563,000 7,789,000 13,803,000 Deferred tax liabilities Basis difference in Justice (1,839,000 ) (1,625,000 ) State taxes (309,000 ) (769,000 ) Valuation allowance (482,000 ) (482,000 ) (2,630,000 ) (2,876,000 ) Net deferred tax assets $ 5,159,000 $ 10,927,000 As of June 30, 2018, the Company had net operating loss carryforwards of approximately $18,740,000 and $15,120,000 for federal and state purposes, respectively. These carryforwards expire in varying amount through 2037. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold based on the technical merits of the positions. As of June 30, 2018, it has been determined there are no uncertain tax positions likely to impact the Company. The Partnership files tax returns as prescribed by the tax laws of the jurisdictions in which it operates and is subject to examination by federal, state and local jurisdictions, were applicable. As of June 30, 2018, tax years beginning in fiscal 2012 remain open to examination by the major tax jurisdictions, and are subject to the statute of limitations. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 15 - SEGMENT INFORMATION The Company operates in two reportable segments, the operation of the Hotel (“Hotel Operations”) and the investment of its cash in marketable securities and other investments (“Investment Transactions”). These two operating segments, as presented in the consolidated financial statements, reflect how management internally reviews each segment’s performance. Management also makes operational and strategic decisions based on this same information. Information below represents reporting segments for the years ended June 30, 2018 and 2017, respectively. Segment income from Hotel operations consists of the operation of the Hotel and operation of the garage. Loss from investments consists of net investment gain (loss), dividend and interest income and investment related expenses. As of and for the year Hotel Investment ended June 30, 2018 Operations Transactions Other Total Revenues $ 57,099,000 $ - $ - $ 57,099,000 Segment operating expenses (40,103,000 ) - (913,000 ) (41,016,000 ) Segment income (loss) 16,996,000 - (913,000 ) 16,083,000 Recovery of legal settlement costs 5,775,000 - - 5,775,000 Interest expense - mortgage (7,806,000 ) - - (7,806,000 ) Depreciation and amortization expense (2,509,000 ) - - (2,509,000 ) Loss from investments - (1,097,000 ) - (1,097,000 ) Income tax expense - - (5,986,000 ) (5,986,000 ) Net income (loss) $ 12,456,000 $ (1,097,000 ) $ (6,899,000 ) $ 4,460,000 Total assets $ 51,337,000 $ 2,774,000 $ 6,296,000 $ 60,407,000 As of and for the year Hotel Investment ended June 30, 2017 Operations Transactions Other Total Revenues $ 54,334,000 $ - $ - $ 54,334,000 Segment operating expenses (41,031,000 ) - (635,000 ) (41,666,000 ) Segment income (loss) 13,303,000 - (635,000 ) 12,668,000 Interest expense - mortgage (7,736,000 ) - - (7,736,000 ) Depreciation and amortization expense (2,860,000 ) - - (2,860,000 ) Loss from investments - (1,481,000 ) - (1,481,000 ) Income tax expense - - (196,000 ) (196,000 ) Net income (loss) $ 2,707,000 $ (1,481,000 ) $ (831,000 ) $ 395,000 Total assets $ 44,389,000 $ 4,250,000 $ 12,187,000 $ 60,826,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 16 - RELATED PARTY TRANSACTIONS As discussed in Note 9 – Other Notes Payable, on July 2, 2014, the Partnership obtained from the InterGroup Corporation an unsecured loan in the principal amount of $4,250,000. The balance of this loan was $3,000,000 and $4,250,000 as of June 30, 2018 and 2017, respectively, and are included in the related party and other note payable in the consolidated balance sheets. The loan matures on December 31, 2018. In connection with the redemption of limited partnership interests of Justice described in Note 2 above, Justice Operating Company, LLC agreed to pay a total of $1,550,000 in fees to certain officers and directors of the Company for services rendered in connection with the redemption of partnership interests, refinancing of Justice’s properties and reorganization of Justice. This agreement was superseded by a letter dated December 11, 2013 from Justice, in which Justice assumed the payment obligations of Justice Operating Company, LLC. As of June 30, 2018, $200,000 of these fees remain payable. Certain shared costs and expenses, primarily administrative expenses, rent and insurance are allocated among the Company, Santa Fe and InterGroup based on management's estimate of the pro rata utilization of resources. For the years ended June 30, 2018 and 2017, these expenses were approximately $72,000 for each respective year. Four of the Company’s Directors serve as directors of InterGroup and three of the Company’s Directors serve on the Board of Santa Fe. As Chairman of the 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 Santa Fe and InterGroup and oversees the investment activity of those companies. Depending on certain market conditions and various risk factors, the Chief Executive Officer, Santa Fe and InterGroup 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 these related parties because it places the personal resources of the Chief Executive Officer and the resources of Santa Fe and InterGroup, at risk in substantially the same manner as the Company in connection with investment decisions made on behalf of the Company. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 17 – COMMITMENTS AND CONTINGENCIES Franchise Agreements The Partnership entered into a Franchise License Agreement (the “License Agreement”) with the HLT Existing Franchise Holding LLC (“Hilton”) on November 24, 2004. The term of the License agreement was for an initial period of 15 years commencing on the date the Hotel began operating as a Hilton hotel, with an option to extend the License Agreement for another five years, subject to certain conditions. On June 26, 2015, Operating and Hilton entered into an amended franchise agreement which amongst other things extended the License Agreement through 2030, and also provided the Partnership certain key money cash incentives to be earned through 2030. Since the opening of the Hotel in January 2006, the Partnership has incurred monthly royalties, program fees and information technology recapture charges equal to a percent of the Hotel’s gross room revenue. Fees for such services during fiscal year 2018 and 2017 totaled approximately $3.8 million and $3.3 million, respectively. Hotel Employees Effective February 3, 2017, the Partnership had no employees. On February 3, 2017, Interstate assumed all labor union agreements and retained employees of their choice to continue providing services to the Hotel. As of June 30, 2018, approximately 85% of those employees were represented by one of four labor unions, and their terms of employment were determined under a collective bargaining agreement (“CBA”) to which the Partnership was a party. During the year ended June 30, 2018, the Partnership renewed the CBA for Local 856 (International Brotherhood of Teamsters). The present CBAs for Local 2 (Hotel and Restaurant Employees), Local 39 (Stationary Engineers), and Local 665 (Parking Employees) will expire on August 13, 2018, July 31, 2018, and November 30, 2018, respectively. Negotiation of collective bargaining agreements, which includes not just terms and conditions of employment, but scope and coverage of employees, is a regular and expected course of business operations for the Partnership. The Partnership expects and anticipates that the terms of conditions of CBAs will have an impact on wage and benefit costs, operating expenses, and certain hotel operations during the life of each CBA, and incorporates these principles into its operating and budgetary practices. Legal Matters In 2014, Evon Corporation ("Evon") filed a complaint in San Francisco Superior Court against the Partnership, Portsmouth, and a limited partner and related party asserting contract and tort claims based on Justice’s withholding of $4.7 million to pay the transfer tax described in Item 3 - Legal Proceedings. Evon’s complaint asserted various tort and contract claims against Justice and Portsmouth; and also a tort against a Justice limited partner and related party. In July 2014, Justice paid to Holdings $4.7 million, the amount Evon claimed to be incorrectly withheld. In June 2014, the Partnership sued Evon and related defendants, seeking a judicial declaration as to certain issues arising out of the partnership redemption documents. Evon filed a cross-complaint in December 2014, alleging torts against the Partnership in connection with the redemption transaction. On May 5, 2016, Justice Investors and Portsmouth (parent company) settled these actions via a global settlement agreement. The Partnership agreed to pay Evon $5,575,000. As of January 10, 2017, the Company has satisfied all conditions of the settlement agreement. In March 2017, Justice entered into a settlement agreement with RSUI Indemnity Company (“RSUI”), the insurer for Portsmouth’s Directors and Officers Liability Policies. Under this settlement agreement, Justice received $900,000 from RSUI to resolve allegations that RSUI had committed breach of contract and bad faith in handling a claim. The $900,000 was recorded as a reduction of legal expense for the fiscal year ended June 30, 2017. In April 2014, the Partnership commenced an arbitration action against Glaser Weil Fink Howard Avchen & Shapiro, LLP (formerly known as Glaser Weil Fink Jacobs Howard Avchen & Shapiro, LLP), Brett J. Cohen, Gary N. Jacobs, Janet S. McCloud, Paul B. Salvaty, and Joseph K. Fletcher III (collectively, the “Respondents”) in connection with the redemption transaction. The arbitration alleged legal malpractice against the Respondents and also sought declaratory relief regarding provisions of the option agreement in the redemption transaction and regarding the engagement letter with Respondents. Prior to arbitration proceedings, the parties agreed in principle to settle the matter, and entered into a settlement agreement and mutual general release in April 2018. The Respondents agreed to pay $8,300,000, which was received in May of 2018. $5,575,000 was recorded as a recovery of legal settlement cost and $2,725,000 was recorded as a reduction of legal expense for the fiscal year ended June 30, 2018. The Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business. The Company defends itself vigorously against any such claims. Management does not believe that the impact of such matters will have a material effect on the financial conditions or result of operations when resolved. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 18 – SUBSEQUENT EVENTS The Company has evaluated all events occurring subsequent to June 30, 2018 and concluded that no additional subsequent events have occurred outside the normal course of business operations that require disclosure. |
SIGNIFICANT ACCOUNTING POLICI25
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Description of Business Portsmouth’s primary business is conducted through its general and limited partnership interest in Justice Investors Limited Partnership, a California limited partnership (“Justice” or the “Partnership”). Portsmouth has a 93.1% limited partnership interest in Justice and is the sole general partner. The financial statements of Justice are consolidated with those of the Company. As of June 30, 2018, Santa Fe Financial Corporation (“Santa Fe”), a public company, owns approximately 68.8% of the outstanding common shares of Portsmouth Square, Inc. (“Portsmouth” or the “Company”). Santa Fe is an 81.9%-owned subsidiary of The InterGroup Corporation (“InterGroup”), a public company. InterGroup also directly owns approximately 13.4% of the common stock of Portsmouth. Justice, through its subsidiaries Justice Operating Company, LLC (“Operating”), Justice Mezzanine Company, LLC (“Mezzanine”), and Kearny Street Parking, LLC (“Parking”) owns 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. Mezzanine and Parking are both wholly-owned subsidiaries of the Partnership; Operating is a wholly-owned subsidiary 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 operated by the partnership as a full-service Hilton brand hotel pursuant to a Franchise License Agreement with HLT Franchise Holding LLC (Hilton). Justice had a management agreement with Prism Hospitality L.P. (“Prism”) to perform certain management functions for the Hotel. The management agreement with Prism had an original term of ten years, subject to the Partnership’s right to terminate at any time with or without cause. Effective January 2014, the management agreement with Prism was amended by the Partnership to change the nature of the services provided by Prism and the compensation payable to Prism, among other things. Prism’s management agreement was terminated upon its expiration date of February 3, 2017. Effective December 1, 2013, GMP Management, Inc. (“GMP”), a company owned by a Justice limited partner and a related party, also provided management services for the Partnership pursuant to a management services agreement, with a three-year term, subject to the Partnership’s right to terminate earlier for cause. In June 2016, GMP resigned. After a lengthy review process of several national third-party hotel management companies, on February 1, 2017, Justice entered into a Hotel management agreement (“HMA”) with Interstate Management Company, LLC (“Interstate”) to manage the Hotel with an effective takeover date of February 3, 2017. The term of management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for an additional year not to exceed five years in the aggregate subject to certain conditions. The HMA also provides for Interstate to advance a key money incentive fee to the Hotel for capital improvements in the amount of $2,000,000 under certain terms and conditions described in a separate key money agreement. The $2,000,000 is included in the restricted cash and related party and other notes payable balances in the consolidated balance sheets as of June 30, 2018. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and Justice. All significant inter-company transactions and balances have been eliminated. |
Investment In Hotel [Policy Text Block] | Investment in Hotel, Net Property and equipment are stated at cost. Building improvements are depreciated on a straight-line basis over their useful lives ranging from 3 to 39 years. Furniture, fixtures, and equipment are depreciated on a straight-line basis over their useful lives ranging from 3 to 7 years. Repairs and maintenance are charged to expense as incurred. Costs of significant renewals and improvements are capitalized and depreciated over the shorter of its remaining estimated useful life or life of the asset. The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts; any resulting gain or loss is included in other income (expenses). The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with generally accepted accounting principles (“GAAP”). If the carrying amount of the asset, including any intangible assets associated with that asset, exceeds its estimated undiscounted net cash flow, before interest, the Partnership will recognize an impairment loss equal to the difference between its carrying amount and its estimated fair value. If impairment is recognized, the reduced carrying amount of the asset will be accounted for as its new cost. For a depreciable asset, the new cost will be depreciated over the asset’s remaining useful life. Generally, fair values are estimated using discounted cash flow, replacement cost or market comparison analyses. The process of evaluating for impairment requires estimates as to future events and conditions, which are subject to varying market and economic factors. Therefore, it is reasonably possible that a change in estimate resulting from judgments as to future events could occur which would affect the recorded amounts of the property. No impairment losses were recorded for the years ended June 30, 2018 and 2017. |
Marketable Securities, Policy [Policy Text Block] | Investment in Marketable Securities Marketable securities are stated at fair value as determined by the most recently traded price of each security at the balance sheet date. Marketable securities are classified as trading securities with all unrealized gains and losses on the Company's investment portfolio recorded through the consolidated statements of operations. |
Other Investments [Policy Text Block] | Other Investments, Net Other investments include non-marketable securities (carried at cost, net of any impairments loss) and non –marketable warrants (carried at fair value). The Company has no significant influence or control over the entities that issue these investments. These investments are reviewed on a periodic basis for other-than-temporary impairment. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include but are not limited to: (i) the length of time an investment is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near term prospects of the issuer and (iv) our ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. For the years ended June 30, 2018 and 2017, the Company recorded impairment losses related to other investments of $72,000 and $60,000, respectively. As of June 30, 2018 and 2017, the allowance for impairment losses was $2,220,000 and $2,159,000, respectively. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an original maturity of three months or less when purchased and are carried at cost, which approximates fair value. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash is comprised of amounts held by lenders for payment of real estate taxes, insurance, replacement and capital addition reserves for the Hotel. It also includes key money received from Interstate that is restricted for capital improvements. |
Receivables, Policy [Policy Text Block] | Accounts Receivable - Hotel, Net Accounts receivable from Hotel customers are carried at cost less an allowance for doubtful accounts that is based on management’s assessment of the collectability of accounts receivable. The Partnership extends unsecured credit to its customers but mitigates the associated credit risk by performing ongoing credit evaluations of its customers. |
Other Assets [Policy Text Block] | Other Assets, Net Other assets include prepaid insurance, accounts receivable, franchise fees, and other miscellaneous assets. Franchise fees are stated at cost and amortized over the life of the agreement (15 years). |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred income taxes are calculated under the liability method. Deferred income tax assets and liabilities are based on differences between the financial statement and tax basis of assets and liabilities at the current enacted tax rates. Changes in deferred income tax assets and liabilities are included as a component of income tax expense. Changes in deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets where realization is not likely. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold based on the technical merits of the positions. |
Due To And From Broker Dealers [Policy Text Block] | Due to Securities Broker Various securities brokers have advanced funds to the Company for the purchase of marketable securities under standard margin agreements. These advanced funds are recorded as a liability. |
Obligations For Securities Sold [Policy Text Block] | Obligations for Securities Sold Obligation for securities sold represents the fair market value of shares sold with the promise to deliver that security at some future date and the fair market value of shares underlying the written call options with the obligation to deliver that security when and if the option is exercised. The obligation may be satisfied with current holdings of the same security or by subsequent purchases of that security. Unrealized gains and losses from changes in the obligation are included in the consolidated statement of operations. |
Accounts Payable And Other Liabilities [Policy Text Block] | Accounts Payable and Other Liabilities Accounts payable and other liabilities include trade payables, advance customer deposits, accrued wages, accrued real estate taxes, and other liabilities. |
Fair Value Of Financial Instruments [Policy Text Block] | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Accounting standards for fair value measurement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1 Level 2 Level 3 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Room revenue is recognized on the date upon which a guest occupies a room and/or utilizes the Hotel’s services. Food and beverage revenues are recognized upon delivery. Garage revenue is recognized when a guest uses the garage space. The Company records a liability for payments collected in advance of revenue recognition. This liability is included in Accounts payable and other liabilities. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs Advertising costs are expensed as incurred and are included in Hotel operating expenses in the consolidated statements of operations. Advertising costs were $302,000 and $294,000 for the years ended June 30, 2018 and 2017, respectively. |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Income (Loss) per Share Basic income per share is calculated based upon the weighted average number of common shares outstanding during each fiscal year. As of June 30, 2018 and 2017, the Company did not have any potentially dilutive securities outstanding. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to the recording of allowance for doubtful accounts and allowance for impairment losses which are based on management’s assessment of the collectability of accounts receivable and the fair market value of nonmarketable securities, respectively, as of the end of the fiscal year. Actual results may differ from those estimates. |
Debt, Policy [Policy Text Block] | Debt Issuance Costs Debt issuance costs related to a recognized debt liability are presented in the consolidated balance sheets as a direct deduction from the carrying amount of the debt liability and are amortized over the life of the debt. Loan amortization costs are included in interest expense in the consolidated statement of operations. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements and U.S. Tax Reform In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08) which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position as right-of-use assets and lease liabilities by lessees. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach and are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. We intend to adopt the standard on July 1, 2019. The Company is currently reviewing the effect of ASU No. 2016-02. On June 16, 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” This ASU modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the timelier recognition of losses. ASU No. 2016-13 will be effective for us as of January 1, 2020. The Company is currently reviewing the effect of ASU No. 2016-13. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises the future ongoing corporate income tax by, among other things, lowering corporate income tax rates. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a statutory federal rate of approximately 28% for our fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. The decrease in corporate tax rate reduced the Company’s deferred tax asset to the lower federal base rate of 21%. As a result, a provisional net charge of $2,723,000 was included in the income tax expense for the year ended June 30, 2018. The changes included in the Tax Act are broad and complex. The final transition impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the company has utilized to calculate the transition impact. The Securities Exchange Commission has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. |
INVESTMENT IN HOTEL, NET (Table
INVESTMENT IN HOTEL, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Investment in Hotel consisted of the following as of: Accumulated Net Book June 30, 2018 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Furniture and equipment 29,350,000 (25,877,000 ) 3,473,000 Building and improvements 55,945,000 (26,264,000 ) 29,681,000 $ 86,419,000 $ (52,141,000 ) $ 34,278,000 Accumulated Net Book June 30, 2017 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Furniture and equipment 27,681,000 (24,570,000 ) 3,111,000 Building and improvements 55,918,000 (24,940,000 ) 30,978,000 $ 84,723,000 $ (49,510,000 ) $ 35,213,000 |
INVESTMENT IN MARKETABLE SECU27
INVESTMENT IN MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities [Table Text Block] | Trading securities are summarized as follows: Gross Gross Net Fair Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Value As of June 30, 2018 Corporate Equities $ 7,729,000 $ 385,000 $ (5,607,000 ) $ (5,222,000 ) $ 2,507,000 As of June 30, 2017 Corporate Equities $ 8,012,000 $ 381,000 $ (4,532,000 ) $ (4,151,000 ) $ 3,861,000 |
Gain (Loss) on Investments [Table Text Block] | Below is the composition of the two components for the years ended June 30, 2018 and 2017, respectively. For the year ended June 30, 2018 2017 Realized gain on marketable securities $ 197,000 $ 26,000 Unrealized loss on marketable securities related to Comstock (1,138,000 ) (1,511,000 ) Unrealized gain on marketable securities 87,000 190,000 Net loss on marketable securities $ (854,000 ) $ (1,295,000 ) |
OTHER INVESTMENTS, NET (Tables)
OTHER INVESTMENTS, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Other Investments Not Readily Marketable [Table Text Block] | Other investments, net consist of the following: Type June 30, 2018 June 30, 2017 Private equity hedge fund, at cost $ 202,000 $ 284,000 Other investments 65,000 105,000 $ 267,000 $ 389,000 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The assets measured at fair value on a recurring basis are as follows: As of June 30, 2018 Level 1 Assets: Investment in marketable securities: REITs and real estate companies $ 757,000 Basic materials 462,000 Healthcare 424,000 Other 864,000 $ 2,507,000 As of June 30, 2017 Level 1 Assets: Investment in marketable securities: Basic materials $ 1,816,000 Energy 411,000 Technology 918,000 Other 716,000 $ 3,861,000 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] | The following table shows the fair value hierarchy for these assets measured at fair value on a non-recurring basis as follows: Net loss for the year Assets Level 3 June 30, 2018 ended June 30, 2018 Other non-marketable investments $ 267,000 $ 267,000 $ (83,000 ) Net loss for the year Assets Level 3 June 30, 2017 ended June 30, 2017 Other non-marketable investments $ 389,000 $ 389,000 $ (60,000 ) |
OTHER ASSETS, NET (Tables)
OTHER ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets [Table Text Block] | Other assets consist of the following as of June 30: 2018 2017 Inventory - Hotel $ 59,000 $ 68,000 Prepaid expenses 409,000 499,000 Miscellaneous assets, net 263,000 300,000 Total other assets $ 731,000 $ 867,000 |
RELATED PARTY AND OTHER FINAN31
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Minimum future lease payments for assets under capital leases as of June 30, 2018 are as follows: For the year ending June 30, 2019 $ 358,000 2020 384,000 2021 384,000 2022 376,000 2023 26,000 Total minimum lease payments 1,528,000 Less interest on capital lease (173,000 ) Present value of future minimum lease payments 1,355,000 |
Related Party and Other Financing Transactions [Member] | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Future minimum principle payments for all related party and other financing transactions are as follows: For the year ending June 30, 2019 $ 3,710,000 2020 895,000 2021 916,000 2022 930,000 2023 592,000 Thereafter 2,953,000 $ 9,996,000 |
MORTGAGE NOTES PAYABLE (Tables)
MORTGAGE NOTES PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Schedule Of Mortgage Notes Payable [Table Text Block] | As of June 30, 2018 and 2017, the Company had the following mortgages: June 30, 2018 June 30, 2017 Interest Rate Origination Date Maturity Date $ 95,018,000 $ 96,343,000 Fixed 5.28% December 18, 2013 January 1, 2024 20,000,000 20,000,000 Fixed 9.75% December 18, 2013 January 1, 2024 115,018,000 116,343,000 Mortgage notes payable - hotel (646,000 ) (728,000 ) Net debt issuance costs $ 114,372,000 $ 115,615,000 Total mortgage notes payable - hotel |
Mortgage Notes Payable [Member] | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Future minimum principle payments for mortgage notes payable are as follows: For the year ending June 30, 2019 $ 1,412,000 2020 1,461,000 2021 1,555,000 2022 1,640,000 2023 1,730,000 Thereafter 107,220,000 $ 115,018,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes expense consists of the following: For the years ended June 30, 2018 2017 Federal Current tax expense $ (167,000 ) $ (34,000 ) Deferred tax expense (4,976,000 ) (81,000 ) (5,143,000 ) (115,000 ) State Current tax expense (51,000 ) (1,000 ) Deferred tax expense (792,000 ) (80,000 ) (843,000 ) (81,000 ) Total income tax expense $ (5,986,000 ) $ (196,000 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the statutory federal income tax rate to the effective tax rate is as follows: For the years ended June 30, 2018 2017 Statutory federal tax rate 27.6 % 34.0 % State income taxes, net of federal tax benefit 6.4 % 2.6 % Change in federal tax rate 28.3 % - Other - 7.8 % 62.3 % 44.4 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of the Company’s deferred tax assets and (liabilities) as of June 30, 2018 and 2017, are as follows: 2018 2017 Deferred tax assets Net operating loss carryforward $ 5,272,000 $ 11,207,000 Investment reserve 741,000 1,033,000 Other 1,776,000 1,563,000 7,789,000 13,803,000 Deferred tax liabilities Basis difference in Justice (1,839,000 ) (1,625,000 ) State taxes (309,000 ) (769,000 ) Valuation allowance (482,000 ) (482,000 ) (2,630,000 ) (2,876,000 ) Net deferred tax assets $ 5,159,000 $ 10,927,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Information below represents reporting segments for the years ended June 30, 2018 and 2017, respectively. Segment income from Hotel operations consists of the operation of the Hotel and operation of the garage. Loss from investments consists of net investment gain (loss), dividend and interest income and investment related expenses. As of and for the year Hotel Investment ended June 30, 2018 Operations Transactions Other Total Revenues $ 57,099,000 $ - $ - $ 57,099,000 Segment operating expenses (40,103,000 ) - (913,000 ) (41,016,000 ) Segment income (loss) 16,996,000 - (913,000 ) 16,083,000 Recovery of legal settlement costs 5,775,000 - - 5,775,000 Interest expense - mortgage (7,806,000 ) - - (7,806,000 ) Depreciation and amortization expense (2,509,000 ) - - (2,509,000 ) Loss from investments - (1,097,000 ) - (1,097,000 ) Income tax expense - - (5,986,000 ) (5,986,000 ) Net income (loss) $ 12,456,000 $ (1,097,000 ) $ (6,899,000 ) $ 4,460,000 Total assets $ 51,337,000 $ 2,774,000 $ 6,296,000 $ 60,407,000 As of and for the year Hotel Investment ended June 30, 2017 Operations Transactions Other Total Revenues $ 54,334,000 $ - $ - $ 54,334,000 Segment operating expenses (41,031,000 ) - (635,000 ) (41,666,000 ) Segment income (loss) 13,303,000 - (635,000 ) 12,668,000 Interest expense - mortgage (7,736,000 ) - - (7,736,000 ) Depreciation and amortization expense (2,860,000 ) - - (2,860,000 ) Loss from investments - (1,481,000 ) - (1,481,000 ) Income tax expense - - (196,000 ) (196,000 ) Net income (loss) $ 2,707,000 $ (1,481,000 ) $ (831,000 ) $ 395,000 Total assets $ 44,389,000 $ 4,250,000 $ 12,187,000 $ 60,826,000 |
SIGNIFICANT ACCOUNTING POLICI35
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | Feb. 01, 2017 | Aug. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Aug. 31, 2007 |
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Other than Temporary Impairment Losses, Investments | $ 72,000 | $ 60,000 | |||
Allowance For Impairment Losses | 2,220,000 | 2,159,000 | |||
Advertising Expense | 302,000 | $ 294,000 | |||
Key Money Incentive Advance To Related Party | $ 2,000,000 | ||||
Related Party Transaction Agreement Term | 10 years | 10 years | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 2,723,000 | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 27.60% | 34.00% | |||
Related Party [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Key Money Incentive Advance To Related Party | $ 2,000,000 | ||||
Subsequent Event [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||
Base Rate [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||
Inter Group Corporation [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 13.40% | 50.00% | |||
Portsmouth [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 68.80% | ||||
Franchise Fees [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Other Assets Amortization Period | 15 years | ||||
Justice Investors [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 93.10% | ||||
Subsidiary Of Inter Group [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 81.90% | ||||
Hotel [Member] | Maximum [Member] | Building Improvements [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 39 years | ||||
Hotel [Member] | Maximum [Member] | Furniture and Fixtures [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 7 years | ||||
Hotel [Member] | Minimum [Member] | Building Improvements [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 3 years | ||||
Hotel [Member] | Minimum [Member] | Furniture and Fixtures [Member] | |||||
SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 3 years |
INVESTMENT IN HOTEL, NET (Detai
INVESTMENT IN HOTEL, NET (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 86,419,000 | $ 84,723,000 |
Accumulated Depreciation | (52,141,000) | (49,510,000) |
Net Book Value | 34,278,000 | 35,213,000 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,124,000 | 1,124,000 |
Accumulated Depreciation | 0 | 0 |
Net Book Value | 1,124,000 | 1,124,000 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 29,350,000 | 27,681,000 |
Accumulated Depreciation | (25,877,000) | (24,570,000) |
Net Book Value | 3,473,000 | 3,111,000 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 55,945,000 | 55,918,000 |
Accumulated Depreciation | (26,264,000) | (24,940,000) |
Net Book Value | $ 29,681,000 | $ 30,978,000 |
INVESTMENT IN REAL ESTATE (Deta
INVESTMENT IN REAL ESTATE (Details Textual) - USD ($) | Jun. 30, 2018 | Aug. 31, 2007 |
Real Estate Investments [Line Items] | ||
Business Acquisition Costs Of Acquired Entity Purchase Price | $ 973,000 | |
Hawaiian Corporation [Member] | ||
Real Estate Investments [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |
Inter Group Corporation [Member] | ||
Real Estate Investments [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 13.40% | 50.00% |
INVESTMENT IN MARKETABLE SECU38
INVESTMENT IN MARKETABLE SECURITIES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Gross Unrealized Gain | $ 87,000 | $ 190,000 |
Gross Unrealized Loss | (1,051,000) | (1,321,000) |
Fair Value | 2,507,000 | 3,861,000 |
Corporate Equities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 7,729,000 | 8,012,000 |
Gross Unrealized Gain | 385,000 | 381,000 |
Gross Unrealized Loss | (5,607,000) | (4,532,000) |
Net Unrealized Loss | (5,222,000) | (4,151,000) |
Fair Value | $ 2,507,000 | $ 3,861,000 |
INVESTMENT IN MARKETABLE SECU39
INVESTMENT IN MARKETABLE SECURITIES (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Realized gain on marketable securities | $ 197,000 | $ 26,000 |
Unrealized loss on marketable securities related to Comstock | (1,138,000) | (1,511,000) |
Unrealized gain on marketable securities | 87,000 | 190,000 |
Net loss on marketable securities | $ (854,000) | $ (1,295,000) |
INVESTMENT IN MARKETABLE SECU40
INVESTMENT IN MARKETABLE SECURITIES (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 5,584,000 | $ 4,494,000 |
Comstock Mining, Inc [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Percentage of Investment Marketable Securities | 18.00% | 42.00% |
OTHER INVESTMENTS, NET (Details
OTHER INVESTMENTS, NET (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Other Investments [Line Items] | ||
Other investments, net | $ 267,000 | $ 389,000 |
Private equity hedge fund, at cost [Member] | ||
Other Investments [Line Items] | ||
Other investments, net | 202,000 | 284,000 |
Other investments [Member] | ||
Other Investments [Line Items] | ||
Other investments, net | $ 65,000 | $ 105,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | ||
Investment in marketable securities | $ 2,507,000 | $ 3,861,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | REITs And Real Estate Companies [Member] | ||
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | ||
Investment in marketable securities | 757,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Basis Materials [Member] | ||
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | ||
Investment in marketable securities | 462,000 | 1,816,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Energy [Member] | ||
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | ||
Investment in marketable securities | 411,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Healthcare [Member] | ||
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | ||
Investment in marketable securities | 424,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Technology [Member] | ||
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | ||
Investment in marketable securities | 918,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other [Member] | ||
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | ||
Investment in marketable securities | $ 864,000 | $ 716,000 |
FAIR VALUE MEASUREMENTS (Deta43
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other non-marketable investments | $ 267,000 | $ 389,000 |
Net loss for the year | (83,000) | (60,000) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other non-marketable investments | $ 267,000 | $ 389,000 |
FAIR VALUE MEASUREMENTS (Deta44
FAIR VALUE MEASUREMENTS (Details Textual) | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Proceeds from Sale of Other Investments | $ 36,000 |
OTHER ASSETS, NET (Details)
OTHER ASSETS, NET (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Other Assets Disclosure [Line Items] | ||
Inventory - Hotel | $ 59,000 | $ 68,000 |
Prepaid expenses | 409,000 | 499,000 |
Miscellaneous assets, net | 263,000 | 300,000 |
Total other assets | $ 731,000 | $ 867,000 |
RELATED PARTY AND OTHER FINAN46
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Details) | Jun. 30, 2018USD ($) |
2,019 | $ 358,000 |
2,020 | 384,000 |
2,021 | 384,000 |
2,022 | 376,000 |
2,023 | 26,000 |
Total minimum lease payments | 1,528,000 |
Less interest on capital lease | (173,000) |
Present value of future minimum lease payments | $ 1,355,000 |
RELATED PARTY AND OTHER FINAN47
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Details 1) - Related Party and Other Financing Transactions [Member] | Jun. 30, 2018USD ($) |
2,019 | $ 3,710,000 |
2,020 | 895,000 |
2,021 | 916,000 |
2,022 | 930,000 |
2,023 | 592,000 |
Thereafter | 2,953,000 |
Long-term Debt | $ 9,996,000 |
RELATED PARTY AND OTHER FINAN48
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Details Textual) - USD ($) | Feb. 01, 2017 | Jul. 02, 2014 | Jun. 30, 2018 | Jun. 30, 2017 |
Notes Reduction | $ 316,000 | |||
Key Money Incentive Advance To Related Party | $ 2,000,000 | |||
Related Party Transaction Agreement Term | 10 years | 10 years | ||
Other Notes Payable | $ 8,641,000 | $ 10,209,000 | ||
Capital Lease Obligations | 1,355,000 | 0 | ||
Accounts Receivable [Member] | ||||
Key Money Incentive Advance To Related Party | 2,000,000 | 2,000,000 | ||
Unsecured Debt [Member] | ||||
Debt Instrument, Face Amount | $ 4,250,000 | $ 4,250,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||
Debt Instrument, Payment Terms | with a term of 2 years | |||
Debt Instrument, Maturity Date, Description | with a term of 2 years, payable interest only each month | |||
Percentage of Loan Fee Received | 3.00% | |||
Debt Instrument, Maturity Date | Dec. 31, 2018 | |||
Other Notes Payable | $ 3,000,000 | 4,250,000 | ||
Capital Lease Obligations [Member] | Maximum [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.53% | |||
Capital Lease Obligations [Member] | Minimum [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.77% | |||
Interest Free Development Incentive Note [Member] | ||||
Notes Reduction | 316,000 | |||
Other Notes Payable | $ 3,642,000 | $ 3,958,000 |
MORTGAGE NOTES PAYABLE (Details
MORTGAGE NOTES PAYABLE (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Mortgage Notes Payable [Line Items] | ||
Mortgage notes payable - hotel | $ 115,018,000 | $ 116,343,000 |
Net debt issuance costs | (646,000) | (728,000) |
Total mortgage notes payable - hotel | 114,372,000 | 115,615,000 |
Fixed Mortgage Notes Payable Hotel Five Point Two Eight Percentage [Member] | ||
Mortgage Notes Payable [Line Items] | ||
Mortgage Notes Payable Hotel | $ 95,018,000 | 96,343,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.28% | |
Debt Instrument, Maturity Date Range, Start | Dec. 18, 2013 | |
Debt Instrument, Maturity Date Range, End | Jan. 1, 2024 | |
Fixed Mortgage Notes Payable Hotel Nine Point Seven Five Percentage [Member] | ||
Mortgage Notes Payable [Line Items] | ||
Mortgage Notes Payable Hotel | $ 20,000,000 | $ 20,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 9.75% | |
Debt Instrument, Maturity Date Range, Start | Dec. 18, 2013 | |
Debt Instrument, Maturity Date Range, End | Jan. 1, 2024 |
MORTGAGE NOTES PAYABLE (Detai50
MORTGAGE NOTES PAYABLE (Details 1) - Mortgage Notes Payable [Member] | Jun. 30, 2018USD ($) |
Mortgage Notes Payable [Line Items] | |
2,019 | $ 1,412,000 |
2,020 | 1,461,000 |
2,021 | 1,555,000 |
2,022 | 1,640,000 |
2,023 | 1,730,000 |
Thereafter | 107,220,000 |
Long-term Debt | $ 115,018,000 |
MORTGAGE NOTES PAYABLE (Detai51
MORTGAGE NOTES PAYABLE (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | May 12, 2017 | |
Mortgage Notes Payable [Line Items] | ||
Mortgage Loan On Real Estate Final Maturity Period | 10 years | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 97,000,000 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 5.275% | |
Mezzanine Loan [Member] | ||
Mortgage Notes Payable [Line Items] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 20,000,000 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 9.75% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Final Maturity Date | Jan. 1, 2024 | |
Guarantor Obligations, Current Carrying Value | $ 20,000,000 | |
Mortage loans [Member] | ||
Mortgage Notes Payable [Line Items] | ||
Guarantor Obligations, Current Carrying Value | $ 97,000,000 |
MANAGEMENT AGREEMENTS (Details
MANAGEMENT AGREEMENTS (Details Textual) - USD ($) | Feb. 01, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Management Agreement [Line Items] | |||
Key Money Incentive Advance To Related Party | $ 2,000,000 | ||
Management Fees | $ 957,000 | $ 372,000 | |
Related Party Transaction Agreement Term | 10 years | 10 years | |
Accounts Receivable [Member] | |||
Management Agreement [Line Items] | |||
Key Money Incentive Advance To Related Party | $ 2,000,000 | $ 2,000,000 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Concentration Risk [Line Items] | ||
Accounts Receivable, Net | $ 1,809,000 | $ 1,436,000 |
Hotel [Member] | Accounts Receivable [Member] | Two Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 32.00% | |
Accounts Receivable, Net | $ 572,000 | |
Hotel [Member] | Accounts Receivable [Member] | One Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 27.00% | |
Accounts Receivable, Net | $ 390,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Federal | ||
Current tax expense | $ (167,000) | $ (34,000) |
Deferred tax expense | (4,976,000) | (81,000) |
Federal Income Tax Expense (Benefit), Continuing Operations | (5,143,000) | (115,000) |
State | ||
Current tax expense | (51,000) | (1,000) |
Deferred tax expense | (792,000) | (80,000) |
State and Local Income Tax Expense (Benefit), Continuing Operations | (843,000) | (81,000) |
Total income tax expense | $ (5,986,000) | $ (196,000) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes [Line Items] | ||
Statutory federal tax rate | 27.60% | 34.00% |
State income taxes, net of federal tax benefit | 6.40% | 2.60% |
Change in federal tax rate | 28.30% | 0.00% |
Other | 0.00% | 7.80% |
Effective Income Tax Rate Reconciliation, Percent | 62.30% | 44.40% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred tax assets | ||
Net operating loss carryforward | $ 5,272,000 | $ 11,207,000 |
Investment reserve | 741,000 | 1,033,000 |
Other | 1,776,000 | 1,563,000 |
Deferred Tax Assets, Gross | 7,789,000 | 13,803,000 |
Deferred tax liabilities | ||
Basis difference in Justice | (1,839,000) | (1,625,000) |
State taxes | (309,000) | (769,000) |
Valuation allowance | (482,000) | (482,000) |
Deferred Tax Liabilities, Tax Deferred Income | (2,630,000) | (2,876,000) |
Net deferred tax assets | $ 5,159,000 | $ 10,927,000 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Aug. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 18,740,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 15,120,000 | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 2,723,000 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 27.60% | 34.00% | |
Subsequent Event [Member] | |||
Income Taxes [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Base Rate [Member] | |||
Income Taxes [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||
Segment income (loss) | $ 19,349,000 | $ 9,808,000 |
Recovery of legal settlement costs | 5,775,000 | 0 |
Interest expense - mortgage | (7,806,000) | (7,736,000) |
Depreciation and amortization expense | (2,509,000) | (2,860,000) |
Income tax expense | (5,986,000) | (196,000) |
Net income (loss) | 4,460,000 | 395,000 |
Total assets | 60,407,000 | 60,826,000 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 57,099,000 | 54,334,000 |
Segment operating expenses | (41,016,000) | (41,666,000) |
Segment income (loss) | 16,083,000 | 12,668,000 |
Recovery of legal settlement costs | 5,775,000 | |
Interest expense - mortgage | (7,806,000) | (7,736,000) |
Depreciation and amortization expense | (2,509,000) | (2,860,000) |
Loss from investments | (1,097,000) | (1,481,000) |
Income tax expense | (5,986,000) | (196,000) |
Net income (loss) | 4,460,000 | 395,000 |
Total assets | 60,407,000 | 60,826,000 |
Hotel Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 57,099,000 | 54,334,000 |
Segment operating expenses | (40,103,000) | (41,031,000) |
Segment income (loss) | 16,996,000 | 13,303,000 |
Recovery of legal settlement costs | 5,775,000 | |
Interest expense - mortgage | (7,806,000) | (7,736,000) |
Depreciation and amortization expense | (2,509,000) | (2,860,000) |
Loss from investments | 0 | 0 |
Income tax expense | 0 | 0 |
Net income (loss) | 12,456,000 | 2,707,000 |
Total assets | 51,337,000 | 44,389,000 |
Investment Transactions [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Segment operating expenses | 0 | 0 |
Segment income (loss) | 0 | 0 |
Recovery of legal settlement costs | 0 | |
Interest expense - mortgage | 0 | 0 |
Depreciation and amortization expense | 0 | 0 |
Loss from investments | (1,097,000) | (1,481,000) |
Income tax expense | 0 | 0 |
Net income (loss) | (1,097,000) | (1,481,000) |
Total assets | 2,774,000 | 4,250,000 |
Other [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Segment operating expenses | (913,000) | (635,000) |
Segment income (loss) | (913,000) | (635,000) |
Recovery of legal settlement costs | 0 | |
Interest expense - mortgage | 0 | 0 |
Depreciation and amortization expense | 0 | 0 |
Loss from investments | 0 | 0 |
Income tax expense | (5,986,000) | (196,000) |
Net income (loss) | (6,899,000) | (831,000) |
Total assets | $ 6,296,000 | $ 12,187,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jul. 02, 2014 | |
Related Party Transaction [Line Items] | |||
Payment for Management Fee | $ 1,550,000 | ||
Costs and Expenses, Related Party | 72,000 | $ 72,000 | |
Management Fee Payable | $ 200,000 | ||
Long-term Debt, Maturity Date | Dec. 31, 2018 | ||
Unsecured Debt [Member] | |||
Related Party Transaction [Line Items] | |||
Debt Instrument, Face Amount | $ 4,250,000 | $ 4,250,000 | |
Debt Instrument, Debt Default, Amount | $ 3,000,000 | $ 4,250,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | May 05, 2016 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2014 | May 31, 2018 |
Franchise Agreements Expiry Period | 15 years | |||||
Proceeds from Legal Settlements | $ 900,000 | $ 4,700,000 | ||||
Initial Franchise Fees | $ 3,800,000 | $ 3,300,000 | ||||
Reduction In Legal Expenses | 2,725,000 | 900,000 | ||||
Recovery Of Legal Settlement Costs | $ 5,775,000 | $ 0 | ||||
Gain Contingency, Unrecorded Amount | $ 8,300,000 | |||||
Evon Corporation [Member] | ||||||
Proceeds from Legal Settlements | $ 4,700,000 | |||||
Legal Fees | $ 5,575,000 |