Document Entity Information
Document Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | May 21, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | PORTSMOUTH SQUARE INC | |
Entity Central Index Key | 0000079661 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 734,187 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
ASSETS | ||
Investment in hotel, net | $ 31,435,000 | $ 32,481,000 |
Investment in real estate | 980,000 | |
Investment in marketable securities | 1,603,000 | 565,000 |
Other investments, net | 20,000 | 87,000 |
Cash and cash equivalents | 3,298,000 | 4,710,000 |
Restricted cash | 5,785,000 | 11,675,000 |
Accounts receivable - hotel, net | 122,000 | 251,000 |
Other assets, net | 873,000 | 831,000 |
Deferred tax assets | 8,969,000 | 5,974,000 |
Total assets | 52,105,000 | 57,554,000 |
Liabilities: | ||
Accounts payable and other liabilities - Justice | 6,476,000 | 7,588,000 |
Accounts payable and other liabilities | 269,000 | 255,000 |
Accounts payable to related party | 2,991,000 | 2,385,000 |
Related party notes payable | 10,145,000 | 7,604,000 |
Other note payable | 6,719,000 | 4,719,000 |
Finance Leases | 783,000 | 1,098,000 |
Mortgage notes payable - hotel, net | 110,465,000 | 111,446,000 |
Total liabilities | 137,848,000 | 135,095,000 |
Shareholders' deficit: | ||
Common stock, no par value: Authorized shares - 750,000; 734,183 shares issued and outstanding shares as of March 31, 2021 and June 30, 2020 | 2,092,000 | 2,092,000 |
Accumulated deficit | (85,438,000) | (73,809,000) |
Total Portsmouth shareholders' deficit | (83,346,000) | (71,717,000) |
Noncontrolling interest | (2,397,000) | (5,824,000) |
Total shareholders' deficit | (85,743,000) | (77,541,000) |
Total liabilities and shareholders' deficit | $ 52,105,000 | $ 57,554,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | ||
Common stock, shares authorized | 750,000 | 750,000 |
Common stock, shares issued | 734,183 | 734,183 |
Common stock, shares outstanding | 734,183 | 734,183 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Revenue - Hotel | $ 2,902,000 | $ 11,259,000 | $ 9,436,000 | $ 41,589,000 |
Costs and operating expenses | ||||
Hotel operating expenses | (3,990,000) | (10,060,000) | (14,156,000) | (33,138,000) |
Hotel depreciation and amortization expense | (503,000) | (547,000) | (1,566,000) | (1,653,000) |
General and administrative expense | (201,000) | (167,000) | (561,000) | (553,000) |
Total costs and operating expenses | (4,694,000) | (10,774,000) | (16,283,000) | (35,344,000) |
(Loss) income from operations | (1,792,000) | 485,000 | (6,847,000) | 6,245,000 |
Other income (expense) | ||||
Interest expense - mortgage | (1,675,000) | (1,703,000) | (5,076,000) | (5,270,000) |
Interest expense - related party | (158,000) | (90,000) | (339,000) | (271,000) |
Net loss on marketable securities | (15,000) | (294,000) | 69,000 | (327,000) |
Net gain (loss) on marketable securities - Comstock | 1,283,000 | (13,000) | 1,315,000 | (194,000) |
Impairment loss on other investments | (15,000) | (38,000) | (38,000) | (38,000) |
Dividend and interest income | 1,000 | 41,000 | 16,000 | 129,000 |
Trading and margin interest expense | (35,000) | (33,000) | (91,000) | (103,000) |
Total other expense, net | (614,000) | (2,130,000) | (4,144,000) | (6,074,000) |
Loss before income taxes | (2,406,000) | (1,645,000) | (10,991,000) | 171,000 |
Income tax benefit | 669,000 | 440,000 | 2,995,000 | (25,000) |
Net loss | (1,737,000) | (1,205,000) | (7,996,000) | 146,000 |
Less: Net (gain) loss attributable to noncontrolling interest | (223,000) | 82,000 | 300,000 | (62,000) |
Net loss attributable to Portsmouth | $ (1,960,000) | $ (1,123,000) | $ (7,696,000) | $ 84,000 |
Basic and diluted net loss per share attributable to Portsmouth | $ (2.67) | $ (1.53) | $ (10.48) | $ 0.11 |
Weighted average number of common shares outstanding - basic and diluted | 734,183 | 734,183 | 734,183 | 734,183 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Accumulated Deficit [Member] | Total Portsmouth Shareholders' Deficit [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jun. 30, 2019 | $ 2,092,000 | $ (70,876,000) | $ (68,784,000) | $ (5,534,000) | $ (74,318,000) |
Balance (in shares) at Jun. 30, 2019 | 734,183 | ||||
Net income (loss) | 826,000 | 826,000 | 99,000 | 925,000 | |
Balance at Sep. 30, 2019 | $ 2,092,000 | (70,050,000) | (67,958,000) | (5,435,000) | (73,393,000) |
Balance (in shares) at Sep. 30, 2019 | 734,183 | ||||
Balance at Jun. 30, 2019 | $ 2,092,000 | (70,876,000) | (68,784,000) | (5,534,000) | (74,318,000) |
Balance (in shares) at Jun. 30, 2019 | 734,183 | ||||
Net income (loss) | 146,000 | ||||
Balance at Mar. 31, 2020 | $ 2,092,000 | (70,792,000) | (68,700,000) | (5,472,000) | (74,172,000) |
Balance (in shares) at Mar. 31, 2020 | 734,183 | ||||
Balance at Sep. 30, 2019 | $ 2,092,000 | (70,050,000) | (67,958,000) | (5,435,000) | (73,393,000) |
Balance (in shares) at Sep. 30, 2019 | 734,183 | ||||
Net income (loss) | 381,000 | 381,000 | 45,000 | 426,000 | |
Balance at Dec. 31, 2019 | $ 2,092,000 | (69,669,000) | (67,577,000) | (5,390,000) | (72,967,000) |
Balance (in shares) at Dec. 31, 2019 | 734,183 | ||||
Net income (loss) | (1,123,000) | (1,123,000) | (82,000) | (1,205,000) | |
Balance at Mar. 31, 2020 | $ 2,092,000 | (70,792,000) | (68,700,000) | (5,472,000) | (74,172,000) |
Balance (in shares) at Mar. 31, 2020 | 734,183 | ||||
Balance at Jun. 30, 2020 | $ 2,092,000 | (73,809,000) | (71,717,000) | (5,824,000) | (77,541,000) |
Balance (in shares) at Jun. 30, 2020 | 734,183 | ||||
Net income (loss) | (2,751,000) | (2,751,000) | (264,000) | (3,015,000) | |
Balance at Sep. 30, 2020 | $ 2,092,000 | (76,560,000) | (74,468,000) | (6,088,000) | (80,556,000) |
Balance (in shares) at Sep. 30, 2020 | 734,183 | ||||
Balance at Jun. 30, 2020 | $ 2,092,000 | (73,809,000) | (71,717,000) | (5,824,000) | (77,541,000) |
Balance (in shares) at Jun. 30, 2020 | 734,183 | ||||
Net income (loss) | (7,996,000) | ||||
Balance at Mar. 31, 2021 | $ 2,092,000 | (85,438,000) | (83,346,000) | (2,397,000) | (85,743,000) |
Balance (in shares) at Mar. 31, 2021 | 734,187 | ||||
Balance at Sep. 30, 2020 | $ 2,092,000 | (76,560,000) | (74,468,000) | (6,088,000) | (80,556,000) |
Balance (in shares) at Sep. 30, 2020 | 734,183 | ||||
Net income (loss) | (2,985,000) | (2,985,000) | (259,000) | (3,244,000) | |
Balance at Dec. 31, 2020 | $ 2,092,000 | (79,545,000) | (77,453,000) | (6,347,000) | (83,800,000) |
Balance (in shares) at Dec. 31, 2020 | 734,183 | ||||
Reclassify Justice NCI | (3,933,000) | (3,933,000) | 3,933,000 | ||
Investment in Justice | (206,000) | (206,000) | |||
Shares Issued | 4 | ||||
Net income (loss) | (1,960,000) | (1,960,000) | 223,000 | (1,737,000) | |
Balance at Mar. 31, 2021 | $ 2,092,000 | $ (85,438,000) | $ (83,346,000) | $ (2,397,000) | $ (85,743,000) |
Balance (in shares) at Mar. 31, 2021 | 734,187 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (7,996,000) | $ 146,000 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Net unrealized (gain) loss on marketable securities | (1,644,000) | 346,000 |
Deferred taxes | (2,995,000) | 26,000 |
Impairment loss on other investments | 38,000 | 38,000 |
Depreciation and amortization | 1,388,000 | 1,519,000 |
Changes in operating assets and liabilities: | ||
Investment in marketable securities | 606,000 | 748,000 |
Accounts receivable | 129,000 | 665,000 |
Other assets | (42,000) | (222,000) |
Accounts payable and other liabilities - Justice | (1,112,000) | (3,182,000) |
Accounts payable and other liabilities | 14,000 | 51,000 |
Accounts payable related party | 606,000 | 121,000 |
Due to securities broker | (151,000) | |
Obligations for securities sold | (325,000) | |
Net cash used in operating activities | (11,008,000) | (220,000) |
Cash flows from investing activities: | ||
Payments for hotel furniture, equipment and building improvements | (490,000) | (1,206,000) |
Proceeds from other investments | 29,000 | 29,000 |
Proceeds from (payments for) real estate investments | 980,000 | (3,000) |
Investment in Justice | (206,000) | |
Net cash provided by (used in) investing activities | 313,000 | (1,180,000) |
Cash flows from financing activities: | ||
Proceeds from other note payable - related party | 2,950,000 | |
Proceeds from other note payable - SBA Loan | 2,000,000 | |
Payments of mortgage and other notes payable | (1,507,000) | (1,399,000) |
Issuance cost from refinance of mortgage note payable | (480,000) | |
Issuance cost from refinance of related party note payable | (50,000) | (80,000) |
Net cash provided by (used in) financing activities | 3,393,000 | (1,959,000) |
Net decrease in cash, cash equivalents, and restricted cash | (7,302,000) | (3,359,000) |
Cash, cash equivalents, and restricted cash at the beginning of the period | 16,385,000 | 20,816,000 |
Cash, cash equivalents, and restricted cash at the end of the period | 9,083,000 | 17,457,000 |
Supplemental information: | ||
Interest paid | 5,415,000 | 5,560,000 |
Taxes paid | 22,000 | 2,000 |
Non-cash transaction: | ||
Additions to Hotel equipment through capital lease | $ 30,000 | $ 30,000 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The condensed consolidated financial statements included herein have been prepared by Portsmouth Square, Inc. (“Portsmouth” or the “Company”), without audit, according to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations, although the Company believes the disclosures that are made are adequate to make the information presented not misleading. Further, the condensed consolidated financial statements reflect, in the opinion of management, all adjustments (which included only normal recurring adjustments) necessary for a fair statement of the financial position, cash flows and results of operations as of and for the periods indicated. It is suggested that these financial statements be read in conjunction with the audited financial statements of Portsmouth and the notes therein included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2020. The March 31, 2021 condensed consolidated balance sheet was derived from the consolidated balance sheet as included in the Company’s Form 10-K for the year ended June 30, 2020. The results of operations for the nine months ended March 31, 2021 are not necessarily indicative of results to be expected for the full fiscal year ending June 30, 2021. 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”). As of March 31, 2021, Effective February 19, 2021, Santa Fe Financial Corporation (“Santa Fe”), a public company, was liquidated and all of its assets including its 68.8% interest in Portsmouth was distributed to its shareholders in exchange for their Santa Fe common stock. As a result, as of March 31, 2021, the InterGroup Corporation (“InterGroup”), a public company, owns approximately 71.3% of the outstanding common shares of Portsmouth. As of March 31, 2021, the Company’s President, Chairman of the Board and Chief Executive Officer, John Winfield, owns approximately 2.5% of the outstanding common shares of the Company. Mr. Winfield also serves as the President, Chairman of the Board and Chief Executive Officer of InterGroup. Justice, through its subsidiaries Justice Operating Company, LLC (“Operating”) and Justice Mezzanine Company, LLC (“Mezzanine”) owns and operates 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 is a wholly owned subsidiary 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”) through January 31, 2030. Justice entered into a Hotel management agreement (“HMA”) with Interstate Management Company, LLC (“Interstate”) to manage the Hotel, along with its five-level parking garage, with an effective takeover date of February 3, 2017. The term of the management agreement is for an initial period of ten years commencing on the takeover date and automatically renews for successive one (1) year periods, to not exceed five years in the aggregate, subject to certain conditions. Under the terms on the HMA, base management fee payable to Interstate shall be one and seven-tenths percent (1.70%) of total Hotel revenue. On October 25, 2019, Interstate merged with Aimbridge Hospitality, North America’s largest independent hotel management firm. With the completion of the merger, the newly combined company will be positioned under the Aimbridge Hospitality (“Aimbridge”) name in the Americas. 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 condensed consolidated statements of operations. Income Tax The Company consolidates Justice (“Hotel”) for financial reporting purposes and is not taxed on its non-controlling interest in the Hotel. The income tax benefit (expense) during the nine months ended March 31, 2021 and 2020 represent the income tax effect on the Company’s pretax (loss) income which includes its share in the net (loss) income of the Hotel. Recently Issued and Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. ASU 2018-11 provides entities another option for transition, allowing entities to not apply the new standard in the comparative periods they present in their financial statements in the year of adoption. Effective July 1, 2019, we adopted ASU 2016-02 using the modified retrospective approach provided by ASU 2018-11. We elected certain practical expedients permitted under the transition guidance, including the election to carryforward historical lease classification. We also elected the short-term lease practical expedient, which allowed us to not recognize leases with a term of less than twelve months on our consolidated balance sheets. In addition, we elected the lease and non-lease components practical expedient, which allowed us to calculate the present value of the fixed payments without performing an allocation of lease and non-lease components. We did not record any operating lease right-of-use (“ROU”) assets and operating lease liabilities upon adoption of the new standard as the aggregate value of the ROU assets and operating lease liabilities are immaterial relative to our total assets and liabilities as of June 30, 2020 and 2019. The standard did not have an impact on our other finance leases, statements of operations or cash flows. See Note 4 and Note 11 for balances of finance lease ROU assets and liabilities, respectively. In August 2018, the FASB issued Accounting Standard Update No. 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820) |
Liquidity
Liquidity | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Liquidity | NOTE 2 - LIQUIDITY Historically, our cash flows have been primarily generated from our Hotel operations. However, the responses by federal, state, and local civil authorities to the COVID-19 pandemic has had a material detrimental impact on our liquidity. For the nine months ended March 31, 2021, our net cash flow used in operations was $11,008,000. For the nine months ended March 31, 2020, our net cash flow used in operations was $220,000. We have taken several steps to preserve capital and increase liquidity at our Hotel, including implementing strict cost management measures to eliminate non-essential expenses, postponing capital expenditures, renegotiating certain reoccurring expenses, and temporarily closing certain hotel services and outlets. The Company had cash and cash equivalents of $3,298,000 and $4,710,000 as of March 31, 2021 and June 30, 2020, respectively. In addition, the Hotel had $5,785,000 and $10,666,000 of restricted cash held by its senior lender Wells Fargo Bank, N.A. (“Lender”) as of March 31, 2021 and June 30, 2020, respectively. Of the $10,666,000 restricted cash held as of June 30, 2020, $2,432,000 was for a possible future property improvement plan (“PIP”) requested by our franchisor, Hilton. However, Hilton has confirmed that it will not require a PIP for our Hotel until relicensing which shall occur at the earlier of (i) January 2030, which is six years after the maturity date of our current senior and mezzanine loans, or (ii) upon the sale of our Hotel. On August 19, 2020, Lender released PIP deposits in the amount of $2,379,000 to the Hotel. The funds were utilized to fund operating expenses, including franchise and management fees and other expenses. On April 9, 2020, Justice entered into a loan agreement (“SBA Loan”) with CIBC Bank USA under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). Justice received proceeds of $4,719,000 from the SBA Loan. In accordance with the requirements of the CARES Act, Justice has used the proceeds from the SBA Loan primarily for payroll costs. As of March 31, 2021, Justice had used all proceeds of the SBA Loan in qualified expenses. The SBA Loan is scheduled to mature on April 9, 2022 with a 1.00% interest rate and is subject to the terms and conditions applicable to loans administered by the U.S. Small Business Administration under the CARES Act. If the SBA approves the forgiveness amount, all payments of principal and interest are deferred until the date the forgiveness amount is remitted by the SBA to CIBC. If the SBA does not forgive any amount of the loan, payments would start within 30 days. Repayment obligations under the loan may be forgiven if the funds are used for payroll and other qualified expenses. All unforgiven portion of the principal and accrued interest will be due at maturity. On December 29, 2020, Justice submitted its application for full loan forgiveness. As of March 31, 2021, the SBA has not forgiven the SBA Loan. On February 3, 2021, Justice entered into a second loan agreement (“Second SBA Loan”) with CIBC Bank USA administered by the SBA. Justice received proceeds of $2,000,000 from the Second SBA Loan. Justice will use proceeds from the Second SBA Loan primarily for payroll costs. The Second SBA Loan is scheduled to mature on February 3, 2026 and has a 1.00% interest rate and is subject to the terms and conditions applicable to loans administered by the U.S. Small Business Administration under the CARES Act. All payments of principal and interest are deferred until either: (a) if the SBA approves the forgiveness amount, the date the forgiveness amount is remitted by the SBA to CIBC; or (b) if Justice does not apply for forgiveness within 10 months after the last day of the covered period specified in the loan agreement or if the forgiveness amount is not approved, the date that is 10 months after the last day of the covered period. The loan may be forgiven if the funds are used for payroll and other qualified expenses. All unforgiven portion of the principal and accrued interest will be due at maturity. As of March 31, 2021, unused portion of the Second SBA Loan was $350,000. In order to increase its liquidity position and to take advantage of the favorable interest rate environment, InterGroup refinanced its 151-unit apartment complex in Parsippany, New Jersey on April 30, 2020, generating net proceeds of $6,814,000. In June 2020, InterGroup refinanced one of its California properties and generated net proceeds of $1,144,000. During the nine months ended March 31, 2021, InterGroup completed refinancing on three of its California properties and generated net proceeds of $5,384,000. InterGroup is currently evaluating other refinancing opportunities and it could refinance additional multifamily properties should the need arise, or should management consider the interest rate environment favorable. InterGroup has an uncollateralized $8,000,000 revolving line of credit from CIBC Bank USA (“CIBC”) and the entire $8,000,000 is available to be drawn down as of March 31, 2021 should additional liquidity be necessary. On August 28, 2020, Santa Fe sold its 27-unit apartment complex located in Santa Monica, California for $15,650,000 and realized a gain on the sale of approximately $12,043,000. Santa Fe will manage its federal and state income tax liability, and anticipates the utilization of its available net operating losses and capital loss carryforwards. Santa Fe received net proceeds of $12,163,000 after selling costs and repayment of InterGroup’s RLOC of $2,985,000 as InterGroup had drawn on its RLOC in July 2018 to pay off the previous Fannie Mae mortgage on the property. Furthermore, pursuant to the Contribution Agreement between Santa Fe and InterGroup, Santa Fe paid InterGroup $662,000 from the sale. As the sole general partner of Justice that controls approximately 97.5% of the voting interest in the Partnership, Portsmouth has the ability to amend the partnership agreement to allow for capital calls to the limited partners of Justice if needed. The majority of any capital calls will be met by Portsmouth. Portsmouth will have financing availability, upon the authorization of the respective board of directors, to borrow from InterGroup to meet any capital calls and its other obligations during the next twelve months and beyond. On August 28, 2020, the Board of InterGroup passed resolution to provide funding to Portsmouth if necessary. On December 16, 2020, Justice and InterGroup entered into a loan modification agreement which increased Justice’s borrowing from InterGroup as needed up to $10,000,000. Since December 2020, InterGroup has advanced $2,950,000 to Justice per the aforementioned loan modification agreement. The Partnership is also allowed to seek additional loans and sell partnership interests. Upon the consent of the general partner and a super majority in interest, the Partnership may sell additional classes or series of units of the Partnership under certain conditions in order to raise additional capital. Our known short-term liquidity requirements primarily consist of funds necessary to pay for operating and other expenditures, including management and franchise fees, corporate expenses, payroll and related costs, taxes, interest and principal payments on our outstanding indebtedness, and repairs and maintenance of the Hotel. Our long-term liquidity requirements primarily consist of funds necessary to pay for scheduled debt maturities and capital improvements of the Hotel. We will continue to finance our business activities primarily with existing cash, including from the activities described above, and cash generated from our operations. After considering our approach to liquidity and accessing our available sources of cash, we believe that our cash position, after giving effect to the transactions discussed above, will be adequate to meet anticipated requirements for operating and other expenditures, including corporate expenses, payroll and related benefits, taxes and compliance costs and other commitments, for at least twelve months from the date of issuance of these financial statements, even if current levels of low occupancy and low RevPAR were to persist. The objectives of our cash management policy are to maintain existing leverage levels and the availability of liquidity, while minimizing operational costs. We believe that our cash on hand, along with other potential aforementioned sources of liquidity that management may be able to obtain, will be sufficient to fund our working capital needs, as well as our capital lease and debt obligations for at least the next twelve months and beyond. However, there can be no guarantee that management will be successful with its plan. The following table provides a summary as of March 31, 2021, the Company’s material financial obligations which also including interest payments: 3 Months Year Year Year Year Total 2021 2022 2023 2024 2025 Thereafter Mortgage notes payable $ 111,130,000 $ 385,000 $ 1,632,000 $ 1,721,000 $ 107,392,000 $ - $ - SBA loans and other notes payable 7,502,000 119,000 5,200,000 183,000 - - 2,000,000 Related party notes payable 10,178,000 379,000 6,517,000 567,000 567,000 567,000 1,581,000 Interest 17,290,000 1,365,000 6,291,000 6,180,000 3,454,000 - - Total $ 146,100,000 $ 2,248,000 $ 19,640,000 $ 8,651,000 $ 111,413,000 $ 567,000 $ 3,581,000 |
Revenue
Revenue | 9 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 3 – REVENUE The following table present our revenues disaggregated by revenue streams. For the three months ended March 31, 2021 2020 Hotel revenues: Hotel rooms $ 2,368,000 $ 9,642,000 Food and beverage 17,000 874,000 Garage 479,000 650,000 Other operating departments 38,000 93,000 Total hotel revenue $ 2,902,000 $ 11,259,000 For the nine months ended March 31, 2021 2020 Hotel revenues: Hotel rooms $ 7,842,000 $ 35,453,000 Food and beverage 130,000 3,521,000 Garage 1,373,000 2,162,000 Other operating departments 91,000 453,000 Total hotel revenue $ 9,436,000 $ 41,589,000 Performance obligations We identified the following performance obligations for which revenue is recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: ● Cancelable room reservations or ancillary services ● Noncancelable room reservations and banquet or conference reservations ● Other ancillary goods and services ● Components of package reservations Hotel revenue primarily consists of hotel room rentals, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking). Revenue is recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are provided. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. We do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the nature of our business, our revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at our hotel are refunded to hotel guests if the guest cancels within the specified time period, before any services are rendered. Refunds related to service are generally recognized as an adjustment to the transaction price at the time the hotel stay occurs or services are rendered. Contract assets and liabilities We do not have any material contract assets as of March 31, 2021 and June 30, 2020, other than trade and other receivables, net on our condensed consolidated balance sheets. Our receivables are primarily the result of contracts with customers, which are reduced by an allowance for doubtful accounts that reflects our estimate of amounts that will not be collected. We record contract liabilities when cash payments are received or due in advance of guests staying at our hotel, which are presented within accounts payable and other liabilities on our condensed consolidated balance sheets. Contract liabilities decreased to $173,000 as of March 31, 2021, from $375,000 as of June 30, 2020. The decrease for the nine months ended March 31, 2021 was primarily driven by $202,000 of revenue recognized and refunds issued to guests as a result of the COVID-19 outbreak. Contract costs We consider sales commissions earned to be incremental costs of obtaining a contract with our customers. As a practical expedient, we expense these costs as incurred as our contracts with customers are less than one year. |
Investment in Hotel, Net
Investment in Hotel, Net | 9 Months Ended |
Mar. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Investment in Hotel, Net | NOTE 4 – INVESTMENT IN HOTEL, NET Investment in hotel consisted of the following as of: Accumulated Net Book March 31, 2021 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (527,000 ) 1,278,000 Furniture and equipment 30,438,000 (27,857,000 ) 2,581,000 Building and improvements 56,194,000 (29,742,000 ) 26,452,000 Investment in Hotel, net $ 89,561,000 $ (58,126,000 ) $ 31,435,000 Accumulated Net Book June 30, 2020 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,775,000 (291,000 ) 1,484,000 Furniture and equipment 30,528,000 (27,498,000 ) 3,030,000 Building and improvements 55,614,000 (28,771,000 ) 26,843,000 Investment in Hotel, net $ 89,041,000 $ (56,560,000 ) $ 32,481,000 |
Investment in Real Estate
Investment in Real Estate | 9 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Investment in Real Estate | NOTE 5 – INVESTMENT IN REAL ESTATE In August 2007, the Company agreed to acquire 50% interest in InterGroup Uluniu, Inc. (“Uluniu”), 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. In March 2021, in an effort to make both companies more efficient, InterGroup purchased back the 50% interest of Uluniu from Portsmouth for $980,000, which represents Portsmouth’s carrying cost of the investment. No gains or losses were realized as a result of the transaction since it was a related-party transaction. As a related-party transaction, the fairness of the financial terms of the transactions were reviewed and approved by the independent director of the Company. |
Investment in Marketable Securi
Investment in Marketable Securities, Net | 9 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Marketable Securities, Net | NOTE 6 - INVESTMENT IN MARKETABLE SECURITIES, NET The Company’s investment in marketable securities consists primarily of corporate equities. The Company has also periodically invested in income producing securities, which may include interests in real estate-based companies and REITs, where financial benefit could transfer to its shareholders through income and/or capital gain. On March 31, 2021, and June 30, 2020, 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 Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Fair Value As of March 31, 2021 Corporate Equities $ 3,348,000 $ 206,000 $ (1,951,000 ) $ (1,745,000 ) $ 1,603,000 As of June 30, 2020 Corporate Equities $ 3,955,000 $ 66,000 $ (3,456,000 ) $ (3,390,000 ) $ 565,000 As of March 31, 2021, As of March 31, 2021, Net gains (losses) on marketable securities on the statement of operations is comprised of realized and unrealized gains (losses). Below is the composition of net gain (loss) on marketable securities for the three and nine months ended March 31, 2021 and 2020, respectively: For the three months ended March 31, 2021 2020 Realized loss on marketable securities, net $ (11,000 ) $ (192,000 ) Realized loss on marketable securities related to LODE (250,000 ) - Unrealized gain (loss) on marketable securities, net 80,000 (102,000 ) Unrealized gain (loss) on marketable securities related to LODE 1,565,000 (13,000 ) Net gain (loss) on marketable securities $ 1,384,000 $ (307,000 ) For the nine months ended March 31, 2021 2020 Realized loss on marketable securities, net $ - $ (175,000 ) Realized loss on marketable securities related to LODE (250,000 ) - Unrealized loss on marketable securities, net (15,000 ) (152,000 ) Unrealized gain (loss) on marketable securities related to LODE 1,533,000 (194,000 ) Net gain (loss) on marketable securities $ 1,268,000 $ (346,000 ) |
Other Investments, Net
Other Investments, Net | 9 Months Ended |
Mar. 31, 2021 | |
Other Investments [Abstract] | |
Other Investments, Net | NOTE 7 – OTHER INVESTMENTS, NET The Company may also invest, with the approval of the Executive Strategic Real Estate and 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 consolidated balance sheet as part of other investments, net of other than temporary impairment losses. Other investments, net consist of the following: Type March 31, 2021 June 30, 2020 Private equity hedge fund, at cost $ 20,000 $ 57,000 Other preferred stock - 30,000 $ 20,000 $ 87,000 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 8 - 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) 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 March 31, 2021 June 30, 2020 Total - Level 1 Total - Level 1 Assets: Investment in marketable securities: Basic materials $ 1,265,000 $ 377,000 REITs and real estate companies 276,000 162,000 Industrials 62,000 - Energy - 26,000 $ 1,603,000 $ 565,000 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, net (non-marketable securities),” that were initially measured at cost and have been written down to fair value as a result of impairment. 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 nine months Assets Level 3 March 31, 2021 ended March 31, 2021 Other non-marketable investments $ 20,000 $ 20,000 $ (38,000 ) Net loss for the nine months Assets Level 3 June 30, 2020 ended March 31, 2020 Other non-marketable investments $ 87,000 $ 87,000 $ (38,000 ) For the nine months ended March 31, 2021 and 2020, we received distribution from other non-marketable investments of $29,000 and $29,000, respectively. 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 and holds less than 20% ownership in each of the 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. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | NOTE 9 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows: As of March 31, 2021 June 30, 2020 Cash and cash equivalents $ 3,298,000 $ 4,710,000 Restricted cash 5,785,000 11,675,000 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 9,083,000 $ 16,385,000 Restricted cash is comprised of amounts held by lenders for payment of real estate taxes, insurance, replacement and capital addition reserves for the Hotel. As of June 30, 2020, restricted cash also includes key money received from Interstate that is restricted for capital improvements for the Hotel. As of March 31, 2021, the key money balance was zero as Hotel obtained approval from Interstate to use the funds for hotel operations during the first quarter of fiscal year 2021. |
Segment Information
Segment Information | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 10 - 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 three and nine months ended March 31, 2021 and 2020, respectively. Operating (loss) income from Hotel operations consists of the operation of the hotel and operation of the garage. Income (loss) from investment transactions consist of net investment gain (loss), impairment loss on other investments, net unrealized gain (loss) on other investments, dividend and interest income and trading and margin interest expense. The other segment consists of corporate general and administrative expenses and the income tax (expense) benefit for the entire Company. As of and for the three months Hotel Investment ended March 31, 2021 Operations Transactions Corporate Total Revenues $ 2,902,000 $ - $ - $ 2,902,000 Segment operating expenses (3,990,000 ) - (201,000 ) (4,191,000 ) Segment loss (1,088,000 ) - (201,000 ) (1,289,000 ) Interest expense - mortgage and related party (1,833,000 ) - - (1,833,000 ) Depreciation and amortization expense (503,000 ) - - (503,000 ) Gain from investments - 1,219,000 - 1,219,000 Income tax benefit - - 669,000 669,000 Net income (loss) $ (3,424,000 ) $ 1,219,000 $ 468,000 $ (1,737,000 ) Total assets $ 40,152,000 $ 1,623,000 $ 10,330,000 $ 52,105,000 For the three months Hotel Investment ended March 31, 2020 Operations Transactions Corporate Total Revenues $ 11,259,000 $ - $ - $ 11,259,000 Segment operating expenses (10,060,000 ) - (167,000 ) (10,227,000 ) Segment income (loss) 1,199,000 - (167,000 ) 1,032,000 Interest expense - mortgage and related party (1,793,000 ) - - (1,793,000 ) Depreciation and amortization expense (547,000 ) - - (547,000 ) Loss from investments - (337,000 ) - (337,000 ) Income tax benefit - - 440,000 440,000 Net income (loss) $ (1,141,000 ) $ (337,000 ) $ 273,000 $ (1,205,000 ) As of and for the nine months Hotel Investment ended March 31, 2021 Operations Transactions Corporate Total Revenues $ 9,436,000 $ - $ - $ 9,436,000 Segment operating expenses (14,156,000 ) - (561,000 ) (14,717,000 ) Segment loss (4,720,000 ) - (561,000 ) (5,281,000 ) Interest expense - mortgage and related party (5,415,000 ) - - (5,415,000 ) Depreciation and amortization expense (1,566,000 ) - - (1,566,000 ) Gain from investments - 1,271,000 - 1,271,000 Income tax benefit - - 2,995,000 2,995,000 Net income (loss) $ (11,701,000 ) $ 1,271,000 $ 2,434,000 $ (7,996,000 ) Total assets $ 40,152,000 $ 1,623,000 $ 10,330,000 $ 52,105,000 For the nine months Hotel Investment ended March 31, 2020 Operations Transactions Corporate Total Revenues $ 41,589,000 $ - $ - $ 41,589,000 Segment operating expenses (33,138,000 ) - (553,000 ) (33,691,000 ) Segment income (loss) 8,451,000 - (553,000 ) 7,898,000 Interest expense - mortgage and related party (5,541,000 ) - - (5,541,000 ) Depreciation and amortization expense (1,653,000 ) - - (1,653,000 ) Loss from investments - (533,000 ) - (533,000 ) Income tax expense - - (25,000 ) (25,000 ) Net income (loss) $ 1,257,000 $ (533,000 ) $ (578,000 ) $ 146,000 |
Related Party and Other Financi
Related Party and Other Financing Transactions | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party and Other Financing Transactions | NOTE 11 - RELATED PARTY AND OTHER FINANCING TRANSACTIONS The following summarizes the balances of related party and other notes payable as of March 31, 2021 and June 30, 2020, respectively. As of March 31, 2021 June 30, 2020 Note payable - InterGroup $ 5,950,000 $ 3,000,000 Note payable - Hilton 2,771,000 3,008,000 Note payable - Interstate 1,458,000 1,646,000 SBA Loans - Justice 6,719,000 4,719,000 Total related party and other notes payable $ 16,898,000 $ 12,373,000 On July 2, 2014, the Partnership obtained from InterGroup 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 July 1, 2021. On December 16, 2020, Justice and InterGroup entered into a loan modification agreement which increased Justice’s borrowing from InterGroup as needed up to $10,000,000. Since December 2020, InterGroup has advanced $2,950,000 to Justice per the aforementioned agreement. As of March 31, 2021, the Partnership has a loan due to InterGroup in the principal amount of $5,950,000. Note payable to Hilton (Franchisor) is a self-exhausting, interest free development incentive note which is reduced by approximately $316,000 annually through 2030 by Hilton if the Partnership is still a Franchisee with Hilton. On February 1, 2017, Justice entered into an HMA with Interstate to manage the Hotel with an effective takeover date of February 3, 2017. The term of the management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for an additional year not to exceed five years in 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 anniversary of the takeover date. As of March 31, 2021, the key money balance was zero as Hotel obtained approval from Interstate to use the funds for hotel operations during the first quarter of fiscal year 2021. As of June 30, 2020, balance of the key money plus accrued interest is $1,009,000 and is included in restricted cash in the condensed consolidated balance sheet. Unamortized portion of the key money is included in the related party notes payable in the condensed consolidated balance sheets. On April 9, 2020, Justice entered into a loan agreement (“SBA Loan”) with CIBC Bank USA under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration. Justice received proceeds of $4,719,000 from the SBA Loan. In accordance with the requirements of the CARES Act, the Company used proceeds from the SBA Loan primarily for payroll costs. As of March 31, 2021, Justice had used all proceeds of the SBA Loan in qualified expenses. The SBA Loan is scheduled to mature on April 9, 2022 with a 1.00% interest rate and is subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act. If the SBA approves the forgiveness amount, all payments of principal and interest are deferred until the date the forgiveness amount is remitted by the SBA to CIBC. If the SBA does not forgive any amount of the loan, payments would start within 30 days. Repayment obligations under the loan may be forgiven if the funds are used for payroll and other qualified expenses. All unforgiven portion of the principal and accrued interest will be due at maturity. On December 29, 2020, Justice submitted its application for full loan forgiveness. As of March 31, 2021, the SBA has not forgiven the SBA Loan. On February 3, 2021, Justice entered into a second loan agreement (“Second SBA Loan”) with CIBC Bank USA administered by the SBA. Justice received proceeds of $2,000,000 from the Second SBA Loan. Justice will use proceeds from the Second SBA Loan primarily for payroll costs. The Second SBA Loan is scheduled to mature on February 3, 2026 and has a 1.00% interest rate and is subject to the terms and conditions applicable to loans administered by the U.S. Small Business Administration under the CARES Act. All payments of principal and interest are deferred until either: (a) if the SBA approves the forgiveness amount, the date the forgiveness amount is remitted by the SBA to CIBC; or (b) if Justice does not apply for forgiveness within 10 months after the last day of the covered period specified in the loan agreement or if the forgiveness amount is not approved, the date that is 10 months after the last day of the covered period. The loan may be forgiven if the funds are used for payroll and other qualified expenses. All unforgiven portion of the principal and accrued interest will be due at maturity. As of March 31, 2021, unused portion of the Second SBA Loan was $350,000. As of March 31, 2021, the Company had finance lease obligations outstanding of $783,000. These finance leases expire in various years through 2023 at rates ranging from 4.62% to 6.25% per annum. Minimum future lease payments for assets under finance leases as of March 31, 2021 are as follows: For the year ending June 30, 2021 $ 130,000 2022 508,000 2023 188,000 Total minimum lease payments 826,000 Less interest on finance lease (43,000 ) Present value of future minimum lease payments $ 783,000 Future minimum principal payments for all related party and other financing transactions are as follows: For the year ending June 30, 2021 $ 498,000 2022 11,717,000 2023 750,000 2024 567,000 2025 567,000 Thereafter 3,581,000 $ 17,680,000 As of March 31, 2021, and June 30, 2020, the Company had accounts payable to related party of $2,991,000 and $2,385,000, respectively. These are amounts due to InterGroup and represent certain shared costs and expenses, primarily general and administrative expenses, rent, insurance and other expenses. To fund the redemption of limited partnership interests and to repay the prior mortgage of $42,940,000, Justice obtained a $97,000,000 mortgage loan and a $20,000,000 mezzanine loan in December 2013. The mortgage loan is secured by the Partnership’s principal asset, the Hotel. The mortgage loan bears an interest rate of 5.275% per annum with interest only payments due through January 2017. Beginning in February 2017, the loan began to amortize over a thirty-year period through its maturity date of January 2024. Outstanding principal balance on the loan was $91,130,000 and $92,292,000 as of March 31, 2021 and June 30, 2020, respectively. As additional security for the mortgage loan, there is a limited guaranty executed by Portsmouth in favor of the mortgage lender. The mezzanine loan is secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The mezzanine interest only loan had an interest rate of 9.75% per annum and a maturity date of January 1, 2024. As additional security for the mezzanine loan, there is a limited guaranty executed by Portsmouth in favor of the mezzanine lender. On July 31, 2019, Mezzanine refinanced the mezzanine loan by entering into a new mezzanine loan agreement (“New Mezzanine Loan Agreement”) with Cred Reit Holdco LLC in the amount of $20,000,000. The prior Mezzanine Loan which had a 9.75% per annum interest rate was paid off. Interest rate on the new mezzanine loan is 7.25% and the loan matures on January 1, 2024. Interest only payments are due monthly. Effective May 11, 2017, InterGroup agreed to become an additional guarantor under the limited guaranty and an additional indemnitor under the environmental indemnity for Justice Investors limited partnership’s $97,000,000 mortgage loan and the $20,000,000 mezzanine loan. Pursuant to the agreement, InterGroup is required to maintain certain net worth and liquidity. As of March 31, 2021, InterGroup is in compliance with both requirements. However, due to the Hotel’s current low occupancy and its negative impact on the Hotel’s cash flow, Justice Operating Company, LLC may not meet certain of its loan covenants such as the Debt Service Coverage Ratio (“DSCR”) which would trigger the creation of a lock-box by the Lender for all cash collected by the Hotel. However, such lockbox has been created and utilized from the loan inception and will be in place up to loan maturity regardless of the DSCR. The Company’s Board of Directors is currently comprised of directors John V. Winfield, William J. Nance, John C. Love, Jerold R. Babin, and Steve Grunwald. All of the Company’s directors also serve as directors of InterGroup except for Mr. Grunwald. John V. Winfield serves as Chief Executive Officer and Chairman of the Company and InterGroup. Effective June 2016, Mr. Winfield became the Managing Director of Justice. Depending on certain market conditions and various risk factors, the Chief Executive Officer and InterGroup may, at times, invest in the same companies in which the Company invests. The Company encourages such investments because it places personal resources of the Chief Executive Officer and the resources of InterGroup, at risk in connection with investment decisions made on behalf of the Company. |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities - Justice | 9 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Liabilities - Justice | NOTE 12 – ACCOUNTS PAYABLE AND OTHER LIABILITIES - JUSTICE The following summarizes the balances of accounts payable and other liabilities -Justice as of March 31, 2021 and June 30, 2020, respectively. As of March 31, 2021 June 30, 2020 Trade payable $ 2,085,000 $ 3,032,000 Advance deposits 173,000 375,000 Property tax payable 14,000 523,000 Payroll and related accruals 2,484,000 1,969,000 Mortgage interest payable 414,000 527,000 Withholding and other taxes payable 581,000 370,000 Security deposit 52,000 52,000 Other payables 942,000 740,000 Total accounts payable and other liabilities - Justice $ 6,745,000 $ 7,588,000 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 13 – SUBSEQUENT EVENTS None. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Due to Securities Broker | 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 | 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 condensed consolidated statements of operations. |
Income Tax | Income Tax The Company consolidates Justice (“Hotel”) for financial reporting purposes and is not taxed on its non-controlling interest in the Hotel. The income tax benefit (expense) during the nine months ended March 31, 2021 and 2020 represent the income tax effect on the Company’s pretax (loss) income which includes its share in the net (loss) income of the Hotel. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. ASU 2018-11 provides entities another option for transition, allowing entities to not apply the new standard in the comparative periods they present in their financial statements in the year of adoption. Effective July 1, 2019, we adopted ASU 2016-02 using the modified retrospective approach provided by ASU 2018-11. We elected certain practical expedients permitted under the transition guidance, including the election to carryforward historical lease classification. We also elected the short-term lease practical expedient, which allowed us to not recognize leases with a term of less than twelve months on our consolidated balance sheets. In addition, we elected the lease and non-lease components practical expedient, which allowed us to calculate the present value of the fixed payments without performing an allocation of lease and non-lease components. We did not record any operating lease right-of-use (“ROU”) assets and operating lease liabilities upon adoption of the new standard as the aggregate value of the ROU assets and operating lease liabilities are immaterial relative to our total assets and liabilities as of June 30, 2020 and 2019. The standard did not have an impact on our other finance leases, statements of operations or cash flows. See Note 4 and Note 11 for balances of finance lease ROU assets and liabilities, respectively. On June 16, 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued Accounting Standard Update No. 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820) |
Liquidity (Tables)
Liquidity (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Financial Obligations Including Interest Payments | The following table provides a summary as of March 31, 2021, the Company’s material financial obligations which also including interest payments: 3 Months Year Year Year Year Total 2021 2022 2023 2024 2025 Thereafter Mortgage notes payable $ 111,130,000 $ 385,000 $ 1,632,000 $ 1,721,000 $ 107,392,000 $ - $ - SBA loans and other notes payable 7,502,000 119,000 5,200,000 183,000 - - 2,000,000 Related party notes payable 10,178,000 379,000 6,517,000 567,000 567,000 567,000 1,581,000 Interest 17,290,000 1,365,000 6,291,000 6,180,000 3,454,000 - - Total $ 146,100,000 $ 2,248,000 $ 19,640,000 $ 8,651,000 $ 111,413,000 $ 567,000 $ 3,581,000 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregation by Revenue Streams | The following table present our revenues disaggregated by revenue streams. For the three months ended March 31, 2021 2020 Hotel revenues: Hotel rooms $ 2,368,000 $ 9,642,000 Food and beverage 17,000 874,000 Garage 479,000 650,000 Other operating departments 38,000 93,000 Total hotel revenue $ 2,902,000 $ 11,259,000 For the nine months ended March 31, 2021 2020 Hotel revenues: Hotel rooms $ 7,842,000 $ 35,453,000 Food and beverage 130,000 3,521,000 Garage 1,373,000 2,162,000 Other operating departments 91,000 453,000 Total hotel revenue $ 9,436,000 $ 41,589,000 |
Investment in Hotel, Net (Table
Investment in Hotel, Net (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Schedule of Investment in Hotel, Net | Investment in hotel consisted of the following as of: Accumulated Net Book March 31, 2021 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (527,000 ) 1,278,000 Furniture and equipment 30,438,000 (27,857,000 ) 2,581,000 Building and improvements 56,194,000 (29,742,000 ) 26,452,000 Investment in Hotel, net $ 89,561,000 $ (58,126,000 ) $ 31,435,000 Accumulated Net Book June 30, 2020 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,775,000 (291,000 ) 1,484,000 Furniture and equipment 30,528,000 (27,498,000 ) 3,030,000 Building and improvements 55,614,000 (28,771,000 ) 26,843,000 Investment in Hotel, net $ 89,041,000 $ (56,560,000 ) $ 32,481,000 |
Investment in Marketable Secu_2
Investment in Marketable Securities, Net (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Changes in Unrealized Gains and Losses on Investments | Trading securities are summarized as follows: Gross Gross Net Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Fair Value As of March 31, 2021 Corporate Equities $ 3,348,000 $ 206,000 $ (1,951,000 ) $ (1,745,000 ) $ 1,603,000 As of June 30, 2020 Corporate Equities $ 3,955,000 $ 66,000 $ (3,456,000 ) $ (3,390,000 ) $ 565,000 |
Schedule of Net Loss on Marketable Securities | Below is the composition of net gain (loss) on marketable securities for the three and nine months ended March 31, 2021 and 2020, respectively: For the three months ended March 31, 2021 2020 Realized loss on marketable securities, net $ (11,000 ) $ (192,000 ) Realized loss on marketable securities related to LODE (250,000 ) - Unrealized gain (loss) on marketable securities, net 80,000 (102,000 ) Unrealized gain (loss) on marketable securities related to LODE 1,565,000 (13,000 ) Net gain (loss) on marketable securities $ 1,384,000 $ (307,000 ) For the nine months ended March 31, 2021 2020 Realized loss on marketable securities, net $ - $ (175,000 ) Realized loss on marketable securities related to LODE (250,000 ) - Unrealized loss on marketable securities, net (15,000 ) (152,000 ) Unrealized gain (loss) on marketable securities related to LODE 1,533,000 (194,000 ) Net gain (loss) on marketable securities $ 1,268,000 $ (346,000 ) |
Other Investments, Net (Tables)
Other Investments, Net (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Other Investments [Abstract] | |
Schedule of Other Investments, Net | Other investments, net consist of the following: Type March 31, 2021 June 30, 2020 Private equity hedge fund, at cost $ 20,000 $ 57,000 Other preferred stock - 30,000 $ 20,000 $ 87,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | The assets measured at fair value on a recurring basis are as follows: As of March 31, 2021 June 30, 2020 Total - Level 1 Total - Level 1 Assets: Investment in marketable securities: Basic materials $ 1,265,000 $ 377,000 REITs and real estate companies 276,000 162,000 Industrials 62,000 - Energy - 26,000 $ 1,603,000 $ 565,000 |
Schedule of Fair Value, Assets Measured on Nonrecurring Basis | 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 nine months Assets Level 3 March 31, 2021 ended March 31, 2021 Other non-marketable investments $ 20,000 $ 20,000 $ (38,000 ) Net loss for the nine months Assets Level 3 June 30, 2020 ended March 31, 2020 Other non-marketable investments $ 87,000 $ 87,000 $ (38,000 ) |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows: As of March 31, 2021 June 30, 2020 Cash and cash equivalents $ 3,298,000 $ 4,710,000 Restricted cash 5,785,000 11,675,000 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 9,083,000 $ 16,385,000 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The other segment consists of corporate general and administrative expenses and the income tax (expense) benefit for the entire Company. As of and for the three months Hotel Investment ended March 31, 2021 Operations Transactions Corporate Total Revenues $ 2,902,000 $ - $ - $ 2,902,000 Segment operating expenses (3,990,000 ) - (201,000 ) (4,191,000 ) Segment loss (1,088,000 ) - (201,000 ) (1,289,000 ) Interest expense - mortgage and related party (1,833,000 ) - - (1,833,000 ) Depreciation and amortization expense (503,000 ) - - (503,000 ) Gain from investments - 1,219,000 - 1,219,000 Income tax benefit - - 669,000 669,000 Net income (loss) $ (3,424,000 ) $ 1,219,000 $ 468,000 $ (1,737,000 ) Total assets $ 40,152,000 $ 1,623,000 $ 10,330,000 $ 52,105,000 For the three months Hotel Investment ended March 31, 2020 Operations Transactions Corporate Total Revenues $ 11,259,000 $ - $ - $ 11,259,000 Segment operating expenses (10,060,000 ) - (167,000 ) (10,227,000 ) Segment income (loss) 1,199,000 - (167,000 ) 1,032,000 Interest expense - mortgage and related party (1,793,000 ) - - (1,793,000 ) Depreciation and amortization expense (547,000 ) - - (547,000 ) Loss from investments - (337,000 ) - (337,000 ) Income tax benefit - - 440,000 440,000 Net income (loss) $ (1,141,000 ) $ (337,000 ) $ 273,000 $ (1,205,000 ) As of and for the nine months Hotel Investment ended March 31, 2021 Operations Transactions Corporate Total Revenues $ 9,436,000 $ - $ - $ 9,436,000 Segment operating expenses (14,156,000 ) - (561,000 ) (14,717,000 ) Segment loss (4,720,000 ) - (561,000 ) (5,281,000 ) Interest expense - mortgage and related party (5,415,000 ) - - (5,415,000 ) Depreciation and amortization expense (1,566,000 ) - - (1,566,000 ) Gain from investments - 1,271,000 - 1,271,000 Income tax benefit - - 2,995,000 2,995,000 Net income (loss) $ (11,701,000 ) $ 1,271,000 $ 2,434,000 $ (7,996,000 ) Total assets $ 40,152,000 $ 1,623,000 $ 10,330,000 $ 52,105,000 For the nine months Hotel Investment ended March 31, 2020 Operations Transactions Corporate Total Revenues $ 41,589,000 $ - $ - $ 41,589,000 Segment operating expenses (33,138,000 ) - (553,000 ) (33,691,000 ) Segment income (loss) 8,451,000 - (553,000 ) 7,898,000 Interest expense - mortgage and related party (5,541,000 ) - - (5,541,000 ) Depreciation and amortization expense (1,653,000 ) - - (1,653,000 ) Loss from investments - (533,000 ) - (533,000 ) Income tax expense - - (25,000 ) (25,000 ) Net income (loss) $ 1,257,000 $ (533,000 ) $ (578,000 ) $ 146,000 |
Related Party and Other Finan_2
Related Party and Other Financing Transactions (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party and Other Notes Payable | The following summarizes the balances of related party and other notes payable as of March 31, 2021 and June 30, 2020, respectively. As of March 31, 2021 June 30, 2020 Note payable - InterGroup $ 5,950,000 $ 3,000,000 Note payable - Hilton 2,771,000 3,008,000 Note payable - Interstate 1,458,000 1,646,000 SBA Loans - Justice 6,719,000 4,719,000 Total related party and other notes payable $ 16,898,000 $ 12,373,000 |
Schedule of Minimum Future Lease Payments for Assets | As of March 31, 2021, the Company had finance lease obligations outstanding of $783,000. These finance leases expire in various years through 2023 at rates ranging from 4.62% to 6.25% per annum. Minimum future lease payments for assets under finance leases as of March 31, 2021 are as follows: For the year ending June 30, 2021 $ 130,000 2022 508,000 2023 188,000 Total minimum lease payments 826,000 Less interest on finance lease (43,000 ) Present value of future minimum lease payments $ 783,000 |
Schedule of Future Minimum Principal Payments | Future minimum principal payments for all related party and other financing transactions are as follows: For the year ending June 30, 2021 $ 498,000 2022 11,717,000 2023 750,000 2024 567,000 2025 567,000 Thereafter 3,581,000 $ 17,680,000 |
Accounts Payable and Other Li_2
Accounts Payable and Other Liabilities - Justice (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Liabilities - Justice | The following summarizes the balances of accounts payable and other liabilities -Justice as of March 31, 2021 and June 30, 2020, respectively. As of March 31, 2021 June 30, 2020 Trade payable $ 2,085,000 $ 3,032,000 Advance deposits 173,000 375,000 Property tax payable 14,000 523,000 Payroll and related accruals 2,484,000 1,969,000 Mortgage interest payable 414,000 527,000 Withholding and other taxes payable 581,000 370,000 Security deposit 52,000 52,000 Other payables 942,000 740,000 Total accounts payable and other liabilities - Justice $ 6,745,000 $ 7,588,000 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details Narrative) | 9 Months Ended |
Mar. 31, 2021 | |
Interstate Management Company, LLC [Member] | |
Related party transaction initial agreement term | 10 years |
Related party transaction agreement term, description | Justice entered into a Hotel management agreement ("HMA") with Interstate Management Company, LLC ("Interstate") to manage the Hotel, along with its five-level parking garage, with an effective takeover date of February 3, 2017. The term of the management agreement is for an initial period of ten years commencing on the takeover date and automatically renews for successive one (1) year periods, to not exceed five years in the aggregate, subject to certain conditions. |
Management fee payable, percentage on revenue | 1.70% |
Parent Company [Member] | Santa Fe Financial Corporation [Member] | |
Ownership percentage | 68.80% |
Justice Investors Limited Partnership [Member] | |
Subsidiary of limited liability company or limited partnership, ownership interest | 97.50% |
Santa Fe Financial Corporation [Member] | InterGroup Corporation [Member] | |
Ownership percentage | 71.30% |
Santa Fe Financial Corporation [Member] | InterGroup Corporation [Member] | Chairman and President [Member] | |
Ownership percentage | 2.50% |
Liquidity (Details Narrative)
Liquidity (Details Narrative) - USD ($) | Feb. 03, 2021 | Aug. 28, 2020 | Apr. 30, 2020 | Apr. 09, 2020 | Jun. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 16, 2020 | Aug. 19, 2020 | Jan. 31, 2017 |
Net cash (used in) provided by operating activities | $ (11,008,000) | $ (220,000) | ||||||||
Cash and cash equivalents | $ 4,710,000 | $ 3,298,000 | ||||||||
Proceeds from loan | $ 6,814,000 | |||||||||
Debt interest rate | 5.275% | |||||||||
Justice Investors Limited Partnership [Member] | ||||||||||
Subsidiary of limited liability company or limited partnership, ownership interest | 97.50% | |||||||||
California [Member] | ||||||||||
Proceeds from loan | 1,144,000 | |||||||||
Proceeds from sale of apartment | $ 15,650,000 | |||||||||
Gain on sale of apartment | 12,043,000 | |||||||||
California [Member] | Intergroup Corp. [Member] | ||||||||||
Proceeds from loan | $ 5,384,000 | |||||||||
Hotel [Member] | PIP [Member] | ||||||||||
Deposits | $ 2,379,000 | |||||||||
PIP [Member] | ||||||||||
Cash, cash equivalents, and restricted cash | 2,432,000 | |||||||||
Senior Lender Wells Fargo Bank [Member] | ||||||||||
Cash and cash equivalents | 4,710,000 | 3,298,000 | ||||||||
Cash, cash equivalents, and restricted cash | $ 10,666,000 | 5,785,000 | ||||||||
CIBC Bank USA [Member] | ||||||||||
Revolving line of credit amount | 8,000,000 | |||||||||
Line of credit, available to be drawn | $ 8,000,000 | |||||||||
CIBC Bank USA [Member] | CARES Act [Member] | ||||||||||
Proceeds from loan | $ 2,000,000 | $ 4,719,000 | ||||||||
Debt maturity date | Feb. 3, 2026 | Apr. 9, 2022 | ||||||||
Debt interest rate | 1.00% | 1.00% | ||||||||
CIBC Bank USA [Member] | Second SBA Loan [Member] | ||||||||||
Debt interest rate | 1.00% | |||||||||
Proceeds from SBA loan | $ 2,000,000 | |||||||||
Unused loan | $ 350,000 | |||||||||
Santa Fe Financial Corporation [Member] | InterGroup Corporation [Member] | ||||||||||
Payment of debt | 662,000 | |||||||||
Santa Fe Financial Corporation [Member] | California [Member] | ||||||||||
Proceeds from sale of apartment | 12,163,000 | |||||||||
Gain on sale of apartment | $ 2,985,000 | |||||||||
Justice Investors Limited Partnership and Intergroup [Member] | Loan Modification Agreement [Member] | ||||||||||
Unused loan | $ 2,950,000 | |||||||||
Increased in borrowing amount | $ 10,000,000 |
Liquidity - Schedule of Financi
Liquidity - Schedule of Financial Obligations Including Interest Payments (Details) | Mar. 31, 2021USD ($) |
3 Months 2021 | $ 2,248,000 |
Year 2022 | 19,640,000 |
Year 2023 | 8,651,000 |
Year 2024 | 111,413,000 |
Year 2025 | 567,000 |
Thereafter | 3,581,000 |
Long-term Debt | 146,100,000 |
Mortgage Notes Payable [Member] | |
3 Months 2021 | 385,000 |
Year 2022 | 1,632,000 |
Year 2023 | 1,721,000 |
Year 2024 | 107,392,000 |
Year 2025 | |
Thereafter | |
Long-term Debt | 111,130,000 |
SBA Loans and Other Notes Payable [Member] | |
3 Months 2021 | 119,000 |
Year 2022 | 5,200,000 |
Year 2023 | 183,000 |
Year 2024 | |
Year 2025 | |
Thereafter | 2,000,000 |
Long-term Debt | 7,502,000 |
Related Party and Other Notes Payable [Member] | |
3 Months 2021 | 379,000 |
Year 2022 | 6,517,000 |
Year 2023 | 567,000 |
Year 2024 | 567,000 |
Year 2025 | 567,000 |
Thereafter | 1,581,000 |
Long-term Debt | 10,178,000 |
Interest [Member] | |
3 Months 2021 | 1,365,000 |
Year 2022 | 6,291,000 |
Year 2023 | 6,180,000 |
Year 2024 | 3,454,000 |
Year 2025 | |
Thereafter | |
Long-term Debt | $ 17,290,000 |
Revenue (Details Narrative)
Revenue (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, liability | $ 173,000 | $ 375,000 |
Contract with customer, liability, revenue recognized | $ 202,000 |
Revenue - Schedule of Revenue D
Revenue - Schedule of Revenue Disaggregation by Revenue Streams (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Total hotel revenue | $ 2,902,000 | $ 11,259,000 | $ 9,436,000 | $ 41,589,000 |
Hotel Rooms [Member] | ||||
Total hotel revenue | 2,368,000 | 9,642,000 | 7,842,000 | 35,453,000 |
Food and Beverage [Member] | ||||
Total hotel revenue | 17,000 | 874,000 | 130,000 | 3,521,000 |
Garage [Member] | ||||
Total hotel revenue | 479,000 | 650,000 | 1,373,000 | 2,162,000 |
Other Operating Departments [Member] | ||||
Total hotel revenue | $ 38,000 | $ 93,000 | $ 91,000 | $ 453,000 |
Investment in Hotel, Net - Sche
Investment in Hotel, Net - Schedule of Investment in Hotel, Net (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Cost | $ 89,561,000 | $ 89,041,000 |
Accumulated Depreciation | (58,126,000) | (56,560,000) |
Net Book Value | 31,435,000 | 32,481,000 |
Land [Member] | ||
Cost | 1,124,000 | 1,124,000 |
Accumulated Depreciation | ||
Net Book Value | 1,124,000 | 1,124,000 |
Finance Lease ROU Assets [Member] | ||
Cost | 1,805,000 | 1,775,000 |
Accumulated Depreciation | (527,000) | (291,000) |
Net Book Value | 1,278,000 | 1,484,000 |
Furniture and Equipment [Member] | ||
Cost | 30,438,000 | 30,528,000 |
Accumulated Depreciation | (27,857,000) | (27,498,000) |
Net Book Value | 2,581,000 | 3,030,000 |
Building and Improvements [Member] | ||
Cost | 56,194,000 | 55,614,000 |
Accumulated Depreciation | (29,742,000) | (28,771,000) |
Net Book Value | $ 26,452,000 | $ 26,843,000 |
Investment in Real Estate (Deta
Investment in Real Estate (Details Narrative) - USD ($) | 1 Months Ended | ||
Aug. 31, 2007 | Mar. 31, 2021 | Jun. 30, 2020 | |
Investment in real estate | $ 980,000 | ||
InterGroup Uluniu, Inc [Member] | |||
Percentage of voting interests acquired | 50.00% | 50.00% | |
Business acquisition, purchase price of acquired entity | $ 973,000 | ||
Investment in real estate | $ 980,000 | ||
Hawaiian Corporation [Member] | |||
Percentage of voting interests acquired | 100.00% |
Investment in Marketable Secu_3
Investment in Marketable Securities, Net (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Securities Held For Over One Year [Member] | ||
Unrealized losses related to securities | $ 1,946,000 | $ 3,448,000 |
Comstock Mining, Inc [Member] | ||
Percentage of investment in marketable securities | 77.00% | 60.00% |
Unrealized losses related to securities | $ 1,845,000 | $ 3,400,000 |
Investment in Marketable Secu_4
Investment in Marketable Securities, Net - Schedule of Changes in Unrealized Gains and Losses on Investments (Details) - Corporate Equities [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Cost | $ 3,348,000 | $ 3,955,000 |
Gross Unrealized Gain | 206,000 | 66,000 |
Gross Unrealized Loss | (1,951,000) | (3,456,000) |
Net Unrealized Loss | (1,745,000) | (3,390,000) |
Fair Value | $ 1,603,000 | $ 565,000 |
Investment in Marketable Secu_5
Investment in Marketable Securities, Net - Schedule of Net Loss on Marketable Securities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Realized loss on marketable securities, net | $ (11,000) | $ (192,000) | $ (175,000) | |
Realized loss on marketable securities related to LODE | (250,000) | (250,000) | ||
Unrealized gain (loss) on marketable securities, net | 80,000 | (102,000) | (1,644,000) | 346,000 |
Unrealized gain (loss) on marketable securities related to LODE | 1,565,000 | (13,000) | 1,533,000 | (194,000) |
Net gain (loss) on marketable securities | $ (15,000) | $ (294,000) | $ 69,000 | $ (327,000) |
Other Investments, Net - Schedu
Other Investments, Net - Schedule of Other Investments, Net (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Other investments, net | $ 20,000 | $ 87,000 |
Private Equity Hedge Fund, at Cost [Member] | ||
Other investments, net | 20,000 | 57,000 |
Other Preferred Stock [Member] | ||
Other investments, net | $ 30,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other non-marketable investments | $ 29,000 | $ 29,000 |
Maximum [Member] | ||
Ownership percentage | 20.00% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Investment in marketable securities | $ 1,603,000 | $ 565,000 |
Basic Materials [Member] | Fair Value Inputs Level 1 [Member] | Fair Value Measurements Recurring [Member] | ||
Investment in marketable securities | 1,265,000 | 377,000 |
REITs and Real Estate Companies [Member] | Fair Value Inputs Level 1 [Member] | Fair Value Measurements Recurring [Member] | ||
Investment in marketable securities | 276,000 | 162,000 |
Industrials [Member] | Fair Value Inputs Level 1 [Member] | Fair Value Measurements Recurring [Member] | ||
Investment in marketable securities | 62,000 | |
Energy [Member] | Fair Value Inputs Level 1 [Member] | Fair Value Measurements Recurring [Member] | ||
Investment in marketable securities | $ 26,000 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value, Assets Measured on Nonrecurring Basis (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Other non-marketable investments | $ 20,000 | $ 87,000 |
Net loss for the period | (38,000) | (38,000) |
Fair Value Inputs Level 3 [Member] | ||
Other non-marketable investments | $ 20,000 | $ 87,000 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 3,298,000 | $ 4,710,000 | ||
Restricted cash | 5,785,000 | 11,675,000 | ||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows | $ 9,083,000 | $ 16,385,000 | $ 17,457,000 | $ 20,816,000 |
Segment Information (Details Na
Segment Information (Details Narrative) | 9 Months Ended |
Mar. 31, 2021Integer | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Revenues | $ 2,902,000 | $ 11,259,000 | $ 9,436,000 | $ 41,589,000 | |||||
Segment operating expenses | (4,191,000) | (10,227,000) | (14,717,000) | (33,691,000) | |||||
Segment income (loss) | (1,792,000) | 485,000 | (6,847,000) | 6,245,000 | |||||
Interest expense - mortgage and related party | (1,833,000) | (1,793,000) | (5,415,000) | (5,541,000) | |||||
Depreciation and amortization expense | (503,000) | (547,000) | (1,566,000) | (1,653,000) | |||||
Gain (loss) from investments | 1,219,000 | (337,000) | 1,271,000 | (533,000) | |||||
Income tax benefit (expense) | 669,000 | 440,000 | 2,995,000 | (25,000) | |||||
Net income (loss) | (1,737,000) | $ (3,244,000) | $ (3,015,000) | (1,205,000) | $ 426,000 | $ 925,000 | (7,996,000) | 146,000 | |
Total assets | 52,105,000 | 52,105,000 | $ 57,554,000 | ||||||
Hotel Operations [Member] | |||||||||
Revenues | 2,902,000 | 11,259,000 | 9,436,000 | 41,589,000 | |||||
Segment operating expenses | (3,990,000) | (10,060,000) | (14,156,000) | (33,138,000) | |||||
Segment income (loss) | (1,088,000) | 1,199,000 | (4,720,000) | 8,451,000 | |||||
Interest expense - mortgage and related party | (1,833,000) | (1,793,000) | (5,415,000) | (5,541,000) | |||||
Depreciation and amortization expense | (503,000) | (547,000) | (1,566,000) | (1,653,000) | |||||
Gain (loss) from investments | |||||||||
Income tax benefit (expense) | |||||||||
Net income (loss) | (3,424,000) | (1,141,000) | (11,701,000) | 1,257,000 | |||||
Total assets | 40,152,000 | 40,152,000 | |||||||
Investment Transactions [Member] | |||||||||
Revenues | |||||||||
Segment operating expenses | |||||||||
Segment income (loss) | |||||||||
Interest expense - mortgage and related party | |||||||||
Depreciation and amortization expense | |||||||||
Gain (loss) from investments | 1,219,000 | (337,000) | 1,271,000 | (533,000) | |||||
Income tax benefit (expense) | |||||||||
Net income (loss) | 1,219,000 | (337,000) | 1,271,000 | (533,000) | |||||
Total assets | 1,623,000 | 1,623,000 | |||||||
Corporate [Member] | |||||||||
Revenues | |||||||||
Segment operating expenses | (201,000) | (167,000) | (561,000) | (553,000) | |||||
Segment income (loss) | (201,000) | (167,000) | (561,000) | (553,000) | |||||
Interest expense - mortgage and related party | |||||||||
Depreciation and amortization expense | |||||||||
Gain (loss) from investments | |||||||||
Income tax benefit (expense) | 669,000 | 440,000 | 2,995,000 | (25,000) | |||||
Net income (loss) | 468,000 | $ 273,000 | 2,434,000 | $ (578,000) | |||||
Total assets | $ 10,330,000 | $ 10,330,000 |
Related Party and Other Finan_3
Related Party and Other Financing Transactions (Details Narrative) - USD ($) | Mar. 31, 2021 | Feb. 03, 2021 | Apr. 30, 2020 | Apr. 09, 2020 | Feb. 03, 2017 | Jul. 02, 2014 | Mar. 31, 2021 | Dec. 16, 2020 | Jun. 30, 2020 | Jul. 31, 2019 | May 11, 2017 | Jan. 31, 2017 | Dec. 31, 2013 |
Debt instrument, interest rate, stated percentage | 5.275% | ||||||||||||
Debt instrument, payment terms | 10 year | ||||||||||||
Debt instrument, maturity date, description | Beginning in February 2017, the loan began to amortize over a thirty-year period through its maturity date of January 2024. | The mezzanine interest only loan had an interest rate of 9.75% per annum and a maturity date of January 1, 2024. | |||||||||||
Key money incentive advance to related party | $ 2,000,000 | ||||||||||||
Debt amortization period | 8 years | ||||||||||||
Accrued interest | $ 1,009,000 | ||||||||||||
Proceeds from loan | $ 6,814,000 | ||||||||||||
Financial lease obligations | $ 783,000 | $ 783,000 | |||||||||||
Accounts payable to related party | 2,991,000 | 2,991,000 | 2,385,000 | ||||||||||
Outstanding loan principal amount | 91,130,000 | $ 91,130,000 | $ 92,292,000 | ||||||||||
Interest Free Development Incentive Note [Member] | |||||||||||||
Debt instrument, payment terms | through 2030 | ||||||||||||
Notes reduction | $ 316,000 | ||||||||||||
Prior Mortgage [Member] | |||||||||||||
Accounts payable to related party | $ 42,940,000 | ||||||||||||
Mortgage Loan [Member] | |||||||||||||
Accounts payable to related party | $ 97,000,000 | 97,000,000 | |||||||||||
Mezzanine Loan [Member] | |||||||||||||
Accounts payable to related party | $ 20,000,000 | $ 20,000,000 | |||||||||||
New Mezzanine Loan [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 7.25% | ||||||||||||
Justice Investors Limited Partnership and Intergroup [Member] | Loan Modification Agreement [Member] | |||||||||||||
Debt instrument, face amount | $ 10,000,000 | ||||||||||||
Current loan balance | $ 2,950,000 | ||||||||||||
Advance amount | 5,950,000 | ||||||||||||
CIBC Bank USA [Member] | CARES Act [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | 1.00% | |||||||||||
Debt instrument, maturity date | Feb. 3, 2026 | Apr. 9, 2022 | |||||||||||
Proceeds from loan | $ 2,000,000 | $ 4,719,000 | |||||||||||
Unused portion of loan | $ 350,000 | $ 350,000 | |||||||||||
Cred Reit Holdco LLC [Member] | New Mezzanine Loan [Member] | |||||||||||||
Debt instrument, face amount | $ 20,000,000 | ||||||||||||
Debt instrument, interest rate, stated percentage | 9.75% | ||||||||||||
Unsecured Debt [Member] | |||||||||||||
Debt instrument, face amount | $ 4,250,000 | ||||||||||||
Debt instrument, interest rate, stated percentage | 12.00% | ||||||||||||
Debt instrument, payment terms | With a term of 2 years | ||||||||||||
Percentage of loan fee received | 3.00% | ||||||||||||
Debt instrument, maturity date, description | The loan was extended to July 1, 2021. | ||||||||||||
Debt instrument, maturity date | Jul. 1, 2021 | ||||||||||||
Capital Lease Obligations [Member] | Minimum [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 4.62% | 4.62% | |||||||||||
Capital Lease Obligations [Member] | Maximum [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 6.25% | 6.25% |
Related Party and Other Finan_4
Related Party and Other Financing Transactions - Schedule of Related Party and Other Notes Payable (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Total related party and other notes payable | $ 16,898,000 | $ 12,373,000 |
Note payable - InterGroup [Member] | ||
Total related party and other notes payable | 5,950,000 | 3,000,000 |
Note payable - Hilton [Member] | ||
Total related party and other notes payable | 2,771,000 | 3,008,000 |
Note payable - Interstate [Member] | ||
Total related party and other notes payable | 1,458,000 | 1,646,000 |
SBA Loan - Justice [Member] | ||
Total related party and other notes payable | $ 6,719,000 | $ 4,719,000 |
Related Party and Other Finan_5
Related Party and Other Financing Transactions - Schedule of Minimum Future Lease Payments for Assets (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Related Party Transactions [Abstract] | ||
2021 | $ 130,000 | |
2022 | 508,000 | |
2023 | 188,000 | |
Total minimum lease payments | 826,000 | |
Less interest on finance lease | (43,000) | |
Present value of future minimum lease payments | $ 783,000 | $ 1,098,000 |
Related Party and Other Finan_6
Related Party and Other Financing Transactions - Schedule of Future Minimum Principal Payments (Details) | Mar. 31, 2021USD ($) |
2021 | $ 2,248,000 |
2022 | 19,640,000 |
2023 | 8,651,000 |
2024 | 111,413,000 |
2025 | 567,000 |
Thereafter | 3,581,000 |
Long-term Debt | 146,100,000 |
Related Party and Other Financing Transactions [Member] | |
2021 | 498,000 |
2022 | 11,717,000 |
2023 | 750,000 |
2024 | 567,000 |
2025 | 567,000 |
Thereafter | 3,581,000 |
Long-term Debt | $ 17,680,000 |
Accounts Payable and Other Li_3
Accounts Payable and Other Liabilities - Justice - Schedule of Accounts Payable and Other Liabilities - Justice (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Payables and Accruals [Abstract] | ||
Trade payable | $ 2,085,000 | $ 3,032,000 |
Advance deposits | 173,000 | 375,000 |
Property tax payable | 14,000 | 523,000 |
Payroll and related accruals | 2,484,000 | 1,969,000 |
Mortgage interest payable | 414,000 | 527,000 |
Withholding and other taxes payable | 581,000 | 370,000 |
Security deposit | 52,000 | 52,000 |
Other payables | 942,000 | 740,000 |
Total accounts payable and other liabilities - Justice | $ 6,745,000 | $ 7,588,000 |