Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2021 | Nov. 12, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 0-4057 | |
Entity Registrant Name | PORTSMOUTH SQUARE, INC | |
Entity Central Index Key | 0000079661 | |
Entity Tax Identification Number | 94-1674111 | |
Entity Incorporation, State or Country Code | CA | |
Entity Address, Address Line One | 1516 S. Bundy Dr. | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90025 | |
City Area Code | (310) | |
Local Phone Number | 889-2500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 734,187 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
ASSETS | ||
Investment in hotel, net | $ 31,225,000 | $ 31,513,000 |
Investment in marketable securities | 2,505,000 | 3,536,000 |
Cash and cash equivalents | 1,782,000 | 2,310,000 |
Restricted cash | 7,063,000 | 6,222,000 |
Accounts receivable - hotel, net | 215,000 | 194,000 |
Other assets, net | 629,000 | 721,000 |
Deferred tax assets | 8,830,000 | 8,055,000 |
Total assets | 52,249,000 | 52,551,000 |
Liabilities: | ||
Accounts payable and other liabilities - Justice | 9,404,000 | 8,104,000 |
Accounts payable and other liabilities | 204,000 | 190,000 |
Accounts payable to related party | 3,396,000 | 3,193,000 |
Due to securities broker | 1,170,000 | 1,715,000 |
Obligations for securities sold | 54,000 | |
Related party notes payable | 12,058,000 | 10,738,000 |
Other note payable - SBA Loan | 2,000,000 | 2,000,000 |
Mortgage notes payable - hotel, net | 109,805,000 | 110,134,000 |
Total liabilities | 138,091,000 | 136,074,000 |
Shareholders’ deficit: | ||
Common stock, no par value: Authorized shares - 750,000; 734,187 shares issued and outstanding shares as of September 30, 2021 and June 30, 2021 | 2,092,000 | 2,092,000 |
Accumulated deficit | (87,934,000) | (84,960,000) |
Total Portsmouth shareholders’ deficit | (85,842,000) | (82,868,000) |
Noncontrolling interest | (655,000) | |
Total shareholders’ deficit | (85,842,000) | (83,523,000) |
Total liabilities and shareholders’ deficit | $ 52,249,000 | $ 52,551,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 750,000 | 750,000 |
Common stock, shares issued | 734,187 | 734,187 |
Common stock, shares outstanding | 734,187 | 734,187 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||
Revenue - Hotel | $ 6,805,000 | $ 3,425,000 |
Costs and operating expenses | ||
Hotel operating expenses | (6,333,000) | (5,033,000) |
Hotel depreciation and amortization expense | (529,000) | (530,000) |
General and administrative expense | (328,000) | (176,000) |
Total costs and operating expenses | (7,190,000) | (5,739,000) |
Loss from operations | (385,000) | (2,314,000) |
Other income (expense) | ||
Interest expense - mortgage | (1,661,000) | (1,700,000) |
Interest expense - related party | (237,000) | (91,000) |
Net (loss) gain on marketable securities | (268,000) | 11,000 |
Net (loss) gain on marketable securities - Comstock | (177,000) | 46,000 |
Impairment loss on other investments | (22,000) | |
Dividend and interest income | 34,000 | 15,000 |
Trading and margin interest expense | (56,000) | (31,000) |
Total other expense, net | (2,365,000) | (1,772,000) |
Loss before income taxes | (2,750,000) | (4,086,000) |
Income tax benefit | 775,000 | 1,071,000 |
Net Loss | (1,975,000) | (3,015,000) |
Less: Net loss attributable to noncontrolling interest | 264,000 | |
Net loss attributable to Portsmouth | $ (1,975,000) | $ (2,751,000) |
Basic and diluted net loss per share attributable to Portsmouth | $ (2.69) | $ (3.75) |
Weighted average number of common shares outstanding - basic and diluted | 734,187 | 734,183 |
condensed Consolidated Statem_2
condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Retained Earnings [Member] | Total PortsmouthShareholders Deficit [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Jun. 30, 2020 | $ 2,092,000 | $ (73,809,000) | $ (71,717,000) | $ (5,824,000) | $ (77,541,000) |
Balance, shares at Jun. 30, 2020 | 734,183 | ||||
Net loss | (2,751,000) | (2,751,000) | (264,000) | (3,015,000) | |
Ending balance, value at Sep. 30, 2020 | $ 2,092,000 | (76,560,000) | (74,468,000) | (6,088,000) | (80,556,000) |
Balance, shares at Sep. 30, 2020 | 734,183 | ||||
Beginning balance, value at Jun. 30, 2021 | $ 2,092,000 | (84,960,000) | (82,868,000) | (655,000) | (83,523,000) |
Balance, shares at Jun. 30, 2021 | 734,187 | ||||
Net loss | (1,975,000) | (1,975,000) | (1,975,000) | ||
Investment in Justice | (344,000) | (344,000) | |||
Purchase of Remaining | (999,000) | (999,000) | 999,000 | ||
Ending balance, value at Sep. 30, 2021 | $ 2,092,000 | $ (87,934,000) | $ (85,842,000) | $ (85,842,000) | |
Balance, shares at Sep. 30, 2021 | 734,187 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (1,975,000) | $ (3,015,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Net unrealized loss on marketable securities | 401,000 | (68,000) |
Deferred taxes | (775,000) | (1,071,000) |
Impairment loss on other investments | 22,000 | |
Depreciation and amortization | 459,000 | 461,000 |
Changes in operating assets and liabilities: | ||
Investment in marketable securities | 630,000 | (3,000) |
Accounts receivable | (21,000) | 185,000 |
Other assets | 92,000 | 283,000 |
Accounts payable and other liabilities - Justice | 1,420,000 | (650,000) |
Accounts payable and other liabilities | 14,000 | (52,000) |
Accounts payable related party | 203,000 | 243,000 |
Due to securities broker | (545,000) | |
Obligations for securities sold | 54,000 | |
Net cash used in operating activities | (43,000) | (3,665,000) |
Cash flows from investing activities: | ||
Payments for hotel furniture, equipment and building improvements | (240,000) | (106,000) |
Proceeds from other investments | 29,000 | |
Investment in Justice | (344,000) | |
Net cash used in investing activities | (584,000) | (77,000) |
Cash flows from financing activities: | ||
Proceeds from related party note payable | 1,500,000 | |
Issuance cost from refinance of related party loan | (50,000) | |
Payments of mortgage and other notes payable | (510,000) | (482,000) |
Net cash provided by (used in) financing activities | 940,000 | (482,000) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 313,000 | (4,224,000) |
Cash, cash equivalents, and restricted cash at the beginning of the period | 8,532,000 | 16,385,000 |
Cash, cash equivalents, and restricted cash at the end of the period | 8,845,000 | 12,161,000 |
Supplemental information: | ||
Interest paid | 1,677,000 | 1,791,000 |
Taxes paid | 1,000 | |
Non-cash transaction: | ||
Additions to Hotel equipment through capital lease | $ 30,000 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 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, 2021. The June 30, 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, 2021. The results of operations for the three months ended September 30, 2021 are not necessarily indicative of results to be expected for the full fiscal year ending June 30, 2022. 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 September 30, 2021, Portsmouth completed the purchase of 100 As of September 30, 2021, the InterGroup Corporation (“InterGroup”), a public company, owns approximately 74.9 2.5 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 1.70 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 was not taxed on its non-controlling interest in the Hotel. Effective July 15, 2021, the Company became the owner of 100% of Justice and will include all of the Hotel’s income and expense accounts into its income taxes calculations. The income tax benefit during the three months ended September 30, 2021 and 2020 represent the income tax effect on the Company’s pretax loss which includes its share in the net loss of the Hotel accordingly. Recently Issued and Adopted Accounting Pronouncements None. |
LIQUIDITY
LIQUIDITY | 3 Months Ended |
Sep. 30, 2021 | |
Liquidity | |
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 three months ended September 30, 2021 and 2020, our net cash flow used in operations was $ 43,000 3,665,000 The Company had cash and cash equivalents of $ 1,782,000 2,310,000 1,281,000 1,821,000 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 1,500,000 8,150,000 16,000,000 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 1,144,000 6,762,000 3,161,000 5,000,000 5,000,000 On April 9, 2020, Justice entered into a loan agreement (“SBA Loan”) with CIBC Bank USA under the 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 April 9, 2022 1.00 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 February 3, 2026 1.00 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 September 30, 2021, the Company’s material financial obligations which also including interest payments: Schedule of Financial Obligations Including Interest Payments 9 Months Year Year Year Year Total 2022 2023 2024 2025 2026 Thereafter Mortgage notes payable $ 110,355,000 $ 1,242,000 $ 1,721,000 $ 107,392,000 $ - $ - $ - PPP and other notes payable 2,544,000 361,000 183,000 - - 2,000,000 - Related party notes payable 12,097,000 425,000 8,717,000 567,000 567,000 567,000 1,254,000 Interest 15,063,000 5,431,000 6,180,000 3,452,000 - - - Total $ 140,059,000 $ 7,459,000 $ 16,801,000 $ 111,411,000 $ 567,000 $ 2,567,000 $ 1,254,000 |
REVENUE
REVENUE | 3 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 3 – REVENUE The following table present our revenues disaggregated by revenue streams. Schedule of Revenue Disaggregation by Revenue Streams For the three months ended September 30, 2021 2020 Hotel revenues: Hotel rooms $ 5,562,000 $ 2,890,000 Food and beverage 266,000 37,000 Garage 907,000 470,000 Other operating departments 70,000 28,000 Total hotel revenue $ 6,805,000 $ 3,425,000 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 September 30, 2021 and June 30, 2021, 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 increased to $ 399,000 161,000 238,000 Contract costs We consider sales commissions earned to be incremental costs of obtaining a contract with our customers. As a practical expedient, we expense these costs as incurred as our contracts with customers are less than one year. |
INVESTMENT IN HOTEL, NET
INVESTMENT IN HOTEL, NET | 3 Months Ended |
Sep. 30, 2021 | |
Investment In Hotel Net | |
INVESTMENT IN HOTEL, NET | NOTE 4 – INVESTMENT IN HOTEL, NET Investment in hotel consisted of the following as of: Schedule of Investment in Hotel, Net Accumulated Net Book September 30, 2021 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (685,000 ) 1,120,000 Furniture and equipment 31,254,000 (28,087,000 ) 3,167,000 Building and improvements 56,196,000 (30,382,000 ) 25,814,000 Investment in Hotel, net $ 90,379,000 $ (59,154,000 ) $ 31,225,000 Accumulated Net Book June 30, 2021 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (606,000 ) 1,199,000 Furniture and equipment 31,014,000 (27,956,000 ) 3,058,000 Building and improvements 56,194,000 (30,062,000 ) 26,132,000 Investment in Hotel, net $ 90,137,000 $ (58,624,000 ) $ 31,513,000 |
INVESTMENT IN MARKETABLE SECURI
INVESTMENT IN MARKETABLE SECURITIES, NET | 3 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT IN MARKETABLE SECURITIES, NET | NOTE 5 - 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. As of September 30, 2021, and June 30, 2021, all the Company’s marketable securities are classified as trading securities. The change in the unrealized gains and losses on these investments are included in earnings. Trading securities are summarized as follows: Schedule of Changes in Unrealized Gains and Losses on Investments Gross Gross Net Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Fair Value As of September 30, 2021 Corporate Equities $ 4,365,000 $ 216,000 $ (2,076,000 ) $ (1,860,000 ) $ 2,505,000 As of June 30, 2021 Corporate Equities $ 4,987,000 $ 438,000 $ (1,889,000 ) $ (1,451,000 ) $ 3,536,000 As of September 30, 2021, 19 As of September 30, 2021, and June 30, 2021, the Company had $ 1,958,000 1,873,000 1,947,000 1,789,000 Net gains (losses) on marketable securities on the statement of operations is comprised of realized and unrealized gains (losses). Below is the composition of net gain (loss) on marketable securities for the three months ended September 30, 2021 and 2020, respectively: Schedule of Net Loss on Marketable Securities For the three months ended September 30, 2021 2020 Realized loss on marketable securities, net $ (5,000 ) $ (11,000 ) Realized loss on marketable securities related to LODE (40,000 ) - Unrealized gain (loss) on marketable securities, net (263,000 ) 22,000 Unrealized gain (loss) on marketable securities related to LODE (137,000 ) 46,000 Net gain (loss) on marketable securities $ (445,000 ) $ 57,000 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 6 - 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: Schedule of Fair Value, Assets Measured on Recurring Basis As of September 30, 2021 June 30, 2021 Total - Level 1 Total - Level 1 Assets: Investment in marketable securities: Communication services $ 1,177,000 $ 1,334,000 Basic materials 509,000 720,000 REITs and real estate companies 412,000 438,000 Industrials 210,000 653,000 Energy 187,000 250,000 Healthcare 10,000 141,000 $ 2,505,000 $ 3,536,000 The fair values of investments in marketable securities are determined by the most recently traded price of each security at the balance sheet date. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | NOTE 7 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows: Schedule of Cash, Cash Equivalents and Restricted Cash As of September 30, 2021 June 30, 2021 Cash and cash equivalents $ 1,782,000 $ 2,310,000 Restricted cash 7,063,000 6,222,000 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 8,845,000 $ 8,532,000 Restricted cash is comprised of amounts held by lenders for payment of real estate taxes, insurance, replacement and capital addition reserves for the Hotel. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 8 - SEGMENT INFORMATION The Company operates in two two Information below represents reporting segments for the three months ended September 30, 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. Schedule of Segment Reporting Information, by Segment As of and for the three months Hotel Investment ended September 30, 2021 Operations Transactions Corporate Total Revenues $ 6,805,000 $ - $ - $ 6,805,000 Segment operating expenses (6,333,000 ) - (328,000 ) (6,661,000 ) Segment income (loss) 472,000 - (328,000 ) 144,000 Interest expense - mortgage (1,661,000 ) - - (1,661,000 ) Interest expense - related party (237,000 ) (237,000 ) Depreciation and amortization expense (529,000 ) - - (529,000 ) Loss from investments - (467,000 ) - (467,000 ) Income tax benefit - - 775,000 775,000 Net loss $ (1,955,000 ) $ (467,000 ) $ 447,000 $ (1,975,000 ) Total assets $ 40,704,000 $ 2,525,000 $ 9,020,000 $ 52,249,000 For the three months Hotel Investment ended September 30, 2020 Operations Transactions Corporate Total Revenues $ 3,425,000 $ - $ - $ 3,425,000 Segment operating expenses (5,033,000 ) - (176,000 ) (5,209,000 ) Segment loss (1,608,000 ) - (176,000 ) (1,784,000 ) Interest expense - mortgage (1,700,000 ) - - (1,700,000 ) Interest expense - related party (91,000 ) (91,000 ) Depreciation and amortization expense (530,000 ) - - (530,000 ) Income from investments - 19,000 - 19,000 Income tax benefit - - 1,071,000 1,071,000 Net income (loss) $ (3,929,000 ) $ 19,000 $ 895,000 $ (3,015,000 ) |
RELATED PARTY AND OTHER FINANCI
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | 3 Months Ended |
Sep. 30, 2021 | |
Related Party And Other Financing Transactions | |
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | NOTE 9 - RELATED PARTY AND OTHER FINANCING TRANSACTIONS The following summarizes the balances of related party and other notes payable as of September 30, 2021 and June 30, 2021, respectively. Schedule of Related Party and Other Notes Payable As of September 30, 2021 June 30, 2021 Note payable - InterGroup $ 8,112,000 $ 6,650,000 Note payable - Hilton 2,613,000 2,692,000 Note payable - Interstate 1,333,000 1,396,000 SBA Loan - Justice 2,000,000 2,000,000 Total related party and other notes payable $ 14,058,000 $ 12,738,000 On July 2, 2014, the Partnership obtained from InterGroup an unsecured loan in the principal amount of $ 4,250,000 12 with a term of 2 years 3 The loan was extended to July 31, 2022 10,000,000 8,150,000 6,650,000 37,500 zero Note payable to Hilton (Franchisor) is a self-exhausting, interest free development incentive note which is reduced by approximately $ 316,000 through 2030 On February 1, 2017, 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. During the first quarter of fiscal year 2021, the Hotel obtained approval from Interstate to use the key money for hotel operations and the funds were exhausted by December 31, 2020. Unamortized portion of the key money is included in the related party notes payable in the condensed consolidated balance sheets. 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 February 3, 2026 1.00 As of September 30, 2021, the Company had finance lease obligations outstanding of $ 544,000 through 2023 4.62 6.25 Schedule of Minimum Future Lease Payments for Assets For the year ending June 30, 2022 $ 378,000 2023 188,000 Total minimum lease payments 566,000 Less interest on finance lease (22,000 ) Present value of future minimum lease payments $ 544,000 Future minimum principal payments for all related party and other financing transactions are as follows: Schedule of Future Minimum Principal Payments For the year ending June 30, 2022 $ 786,000 2023 8,900,000 2024 567,000 2025 567,000 2026 2,567,000 Thereafter 1,254,000 Long-term Debt $ 14,641,000 As of September 30, 2021, and June 30, 2021, the Company had accounts payable to related party of $ 3,396,000 3,193,000 To fund the redemption of limited partnership interests and to repay the prior mortgage of $ 42,940,000 97,000,000 20,000,000 5.275 Beginning in February 2017, the loan began to amortize over a thirty-year period through its maturity date of January 2024. 90,355,000 90,745,000 The mezzanine interest only loan had an interest rate of 9.75 20,000,000 7.25 Effective May 11, 2017, InterGroup agreed to become an additional guarantor under the limited guaranty and an additional indemnitor under the environmental indemnity for Justice Investors limited partnership’s $ 97,000,000 20,000,000 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 | 3 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND OTHER LIABILITIES - JUSTICE | NOTE 10 – ACCOUNTS PAYABLE AND OTHER LIABILITIES - JUSTICE The following summarizes the balances of accounts payable and other liabilities -Justice as of September 30, 2021 and June 30, 2021, respectively. Schedule of Accounts Payable and Other Liabilities - Justice As of September 30, 2021 June 30, 2021 Trade payable $ 3,497,000 $ 2,809,000 Advance deposits 399,000 161,000 Property tax payable 509,000 - Payroll and related accruals 2,549,000 2,345,000 Mortgage interest payable 518,000 582,000 Withholding and other taxes payable 649,000 885,000 Security deposit 52,000 52,000 Finance leases 544,000 664,000 Other payables 687,000 606,000 Total accounts payable and other liabilities - Justice $ 9,404,000 $ 8,104,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS None. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 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 was not taxed on its non-controlling interest in the Hotel. Effective July 15, 2021, the Company became the owner of 100% of Justice and will include all of the Hotel’s income and expense accounts into its income taxes calculations. The income tax benefit during the three months ended September 30, 2021 and 2020 represent the income tax effect on the Company’s pretax loss which includes its share in the net loss of the Hotel accordingly. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements None. |
LIQUIDITY (Tables)
LIQUIDITY (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Liquidity | |
Schedule of Financial Obligations Including Interest Payments | The following table provides a summary as of September 30, 2021, the Company’s material financial obligations which also including interest payments: Schedule of Financial Obligations Including Interest Payments 9 Months Year Year Year Year Total 2022 2023 2024 2025 2026 Thereafter Mortgage notes payable $ 110,355,000 $ 1,242,000 $ 1,721,000 $ 107,392,000 $ - $ - $ - PPP and other notes payable 2,544,000 361,000 183,000 - - 2,000,000 - Related party notes payable 12,097,000 425,000 8,717,000 567,000 567,000 567,000 1,254,000 Interest 15,063,000 5,431,000 6,180,000 3,452,000 - - - Total $ 140,059,000 $ 7,459,000 $ 16,801,000 $ 111,411,000 $ 567,000 $ 2,567,000 $ 1,254,000 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregation by Revenue Streams | The following table present our revenues disaggregated by revenue streams. Schedule of Revenue Disaggregation by Revenue Streams For the three months ended September 30, 2021 2020 Hotel revenues: Hotel rooms $ 5,562,000 $ 2,890,000 Food and beverage 266,000 37,000 Garage 907,000 470,000 Other operating departments 70,000 28,000 Total hotel revenue $ 6,805,000 $ 3,425,000 |
INVESTMENT IN HOTEL, NET (Table
INVESTMENT IN HOTEL, NET (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Investment In Hotel Net | |
Schedule of Investment in Hotel, Net | Investment in hotel consisted of the following as of: Schedule of Investment in Hotel, Net Accumulated Net Book September 30, 2021 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (685,000 ) 1,120,000 Furniture and equipment 31,254,000 (28,087,000 ) 3,167,000 Building and improvements 56,196,000 (30,382,000 ) 25,814,000 Investment in Hotel, net $ 90,379,000 $ (59,154,000 ) $ 31,225,000 Accumulated Net Book June 30, 2021 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (606,000 ) 1,199,000 Furniture and equipment 31,014,000 (27,956,000 ) 3,058,000 Building and improvements 56,194,000 (30,062,000 ) 26,132,000 Investment in Hotel, net $ 90,137,000 $ (58,624,000 ) $ 31,513,000 |
INVESTMENT IN MARKETABLE SECU_2
INVESTMENT IN MARKETABLE SECURITIES, NET (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Changes in Unrealized Gains and Losses on Investments | As of September 30, 2021, and June 30, 2021, all the Company’s marketable securities are classified as trading securities. The change in the unrealized gains and losses on these investments are included in earnings. Trading securities are summarized as follows: Schedule of Changes in Unrealized Gains and Losses on Investments Gross Gross Net Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Fair Value As of September 30, 2021 Corporate Equities $ 4,365,000 $ 216,000 $ (2,076,000 ) $ (1,860,000 ) $ 2,505,000 As of June 30, 2021 Corporate Equities $ 4,987,000 $ 438,000 $ (1,889,000 ) $ (1,451,000 ) $ 3,536,000 |
Schedule of Net Loss on Marketable Securities | 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 months ended September 30, 2021 and 2020, respectively: Schedule of Net Loss on Marketable Securities For the three months ended September 30, 2021 2020 Realized loss on marketable securities, net $ (5,000 ) $ (11,000 ) Realized loss on marketable securities related to LODE (40,000 ) - Unrealized gain (loss) on marketable securities, net (263,000 ) 22,000 Unrealized gain (loss) on marketable securities related to LODE (137,000 ) 46,000 Net gain (loss) on marketable securities $ (445,000 ) $ 57,000 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | 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: Schedule of Fair Value, Assets Measured on Recurring Basis As of September 30, 2021 June 30, 2021 Total - Level 1 Total - Level 1 Assets: Investment in marketable securities: Communication services $ 1,177,000 $ 1,334,000 Basic materials 509,000 720,000 REITs and real estate companies 412,000 438,000 Industrials 210,000 653,000 Energy 187,000 250,000 Healthcare 10,000 141,000 $ 2,505,000 $ 3,536,000 |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 3 Months Ended |
Sep. 30, 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: Schedule of Cash, Cash Equivalents and Restricted Cash As of September 30, 2021 June 30, 2021 Cash and cash equivalents $ 1,782,000 $ 2,310,000 Restricted cash 7,063,000 6,222,000 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 8,845,000 $ 8,532,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information below represents reporting segments for the three months ended September 30, 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. Schedule of Segment Reporting Information, by Segment As of and for the three months Hotel Investment ended September 30, 2021 Operations Transactions Corporate Total Revenues $ 6,805,000 $ - $ - $ 6,805,000 Segment operating expenses (6,333,000 ) - (328,000 ) (6,661,000 ) Segment income (loss) 472,000 - (328,000 ) 144,000 Interest expense - mortgage (1,661,000 ) - - (1,661,000 ) Interest expense - related party (237,000 ) (237,000 ) Depreciation and amortization expense (529,000 ) - - (529,000 ) Loss from investments - (467,000 ) - (467,000 ) Income tax benefit - - 775,000 775,000 Net loss $ (1,955,000 ) $ (467,000 ) $ 447,000 $ (1,975,000 ) Total assets $ 40,704,000 $ 2,525,000 $ 9,020,000 $ 52,249,000 For the three months Hotel Investment ended September 30, 2020 Operations Transactions Corporate Total Revenues $ 3,425,000 $ - $ - $ 3,425,000 Segment operating expenses (5,033,000 ) - (176,000 ) (5,209,000 ) Segment loss (1,608,000 ) - (176,000 ) (1,784,000 ) Interest expense - mortgage (1,700,000 ) - - (1,700,000 ) Interest expense - related party (91,000 ) (91,000 ) Depreciation and amortization expense (530,000 ) - - (530,000 ) Income from investments - 19,000 - 19,000 Income tax benefit - - 1,071,000 1,071,000 Net income (loss) $ (3,929,000 ) $ 19,000 $ 895,000 $ (3,015,000 ) |
RELATED PARTY AND OTHER FINAN_2
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Related Party And Other Financing Transactions | |
Schedule of Related Party and Other Notes Payable | The following summarizes the balances of related party and other notes payable as of September 30, 2021 and June 30, 2021, respectively. Schedule of Related Party and Other Notes Payable As of September 30, 2021 June 30, 2021 Note payable - InterGroup $ 8,112,000 $ 6,650,000 Note payable - Hilton 2,613,000 2,692,000 Note payable - Interstate 1,333,000 1,396,000 SBA Loan - Justice 2,000,000 2,000,000 Total related party and other notes payable $ 14,058,000 $ 12,738,000 |
Schedule of Minimum Future Lease Payments for Assets | Schedule of Minimum Future Lease Payments for Assets For the year ending June 30, 2022 $ 378,000 2023 188,000 Total minimum lease payments 566,000 Less interest on finance lease (22,000 ) Present value of future minimum lease payments $ 544,000 |
Schedule of Future Minimum Principal Payments | Future minimum principal payments for all related party and other financing transactions are as follows: Schedule of Future Minimum Principal Payments For the year ending June 30, 2022 $ 786,000 2023 8,900,000 2024 567,000 2025 567,000 2026 2,567,000 Thereafter 1,254,000 Long-term Debt $ 14,641,000 |
ACCOUNTS PAYABLE AND OTHER LI_2
ACCOUNTS PAYABLE AND OTHER LIABILITIES - JUSTICE (Tables) | 3 Months Ended |
Sep. 30, 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 September 30, 2021 and June 30, 2021, respectively. Schedule of Accounts Payable and Other Liabilities - Justice As of September 30, 2021 June 30, 2021 Trade payable $ 3,497,000 $ 2,809,000 Advance deposits 399,000 161,000 Property tax payable 509,000 - Payroll and related accruals 2,549,000 2,345,000 Mortgage interest payable 518,000 582,000 Withholding and other taxes payable 649,000 885,000 Security deposit 52,000 52,000 Finance leases 544,000 664,000 Other payables 687,000 606,000 Total accounts payable and other liabilities - Justice $ 9,404,000 $ 8,104,000 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended |
Sep. 30, 2021 | |
Interstate Management Company, LLC [Member] | |
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. |
Related party transaction initial agreement term | 10 years |
Management fee payable, percentage on revenue | 1.70% |
Justice Investors Limited Partnership [Member] | |
Subsidiary of limited liability company or limited partnership, ownership interest | 100.00% |
Santa Fe Financial Corporation [Member] | Inter Group Corporation [Member] | |
Ownership percentage | 74.90% |
Santa Fe Financial Corporation [Member] | Inter Group Corporation [Member] | Chairman and President [Member] | |
Ownership percentage | 2.50% |
Schedule of Financial Obligatio
Schedule of Financial Obligations Including Interest Payments (Details) | Sep. 30, 2021USD ($) |
Debt Instrument [Line Items] | |
Long-term Debt | $ 140,059,000 |
9 Months 2022 | 7,459,000 |
Year 2023 | 16,801,000 |
Year 2024 | 111,411,000 |
Year 2025 | 567,000 |
Year 2026 | 2,567,000 |
Thereafter | 1,254,000 |
Mortgage Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 110,355,000 |
9 Months 2022 | 1,242,000 |
Year 2023 | 1,721,000 |
Year 2024 | 107,392,000 |
Year 2025 | |
Year 2026 | |
Thereafter | |
PPP and Other Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 2,544,000 |
9 Months 2022 | 361,000 |
Year 2023 | 183,000 |
Year 2024 | |
Year 2025 | |
Year 2026 | 2,000,000 |
Thereafter | |
Related Party Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 12,097,000 |
9 Months 2022 | 425,000 |
Year 2023 | 8,717,000 |
Year 2024 | 567,000 |
Year 2025 | 567,000 |
Year 2026 | 567,000 |
Thereafter | 1,254,000 |
Interest [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 15,063,000 |
9 Months 2022 | 5,431,000 |
Year 2023 | 6,180,000 |
Year 2024 | 3,452,000 |
Year 2025 | |
Year 2026 | |
Thereafter |
LIQUIDITY (Details Narrative)
LIQUIDITY (Details Narrative) - USD ($) | Feb. 03, 2021 | Apr. 30, 2020 | Apr. 09, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 16, 2020 | Jan. 31, 2017 |
Net cash (used in) provided by operating activities | $ 43,000 | $ 3,665,000 | |||||||
Cash and cash equivalents | 1,782,000 | $ 2,310,000 | |||||||
Marketable securities, net | 1,281,000 | 1,821,000 | |||||||
Proceeds from loan | $ 6,814,000 | ||||||||
Debt interest rate | 5.275% | ||||||||
CANADA | |||||||||
Proceeds from loan | $ 1,144,000 | 6,762,000 | |||||||
Proceeds from notes payable | 3,161,000 | ||||||||
InterGroup Corp [Member] | Loan Modification Agreement [Member] | |||||||||
Revolving line of credit amount | $ 10,000,000 | ||||||||
Proceeds from loan | 1,500,000 | ||||||||
Loan payable | 8,150,000 | ||||||||
Working capital | 16,000,000 | ||||||||
InterGroup Corp [Member] | Loan Modification Agreement [Member] | Revolving Credit Facility [Member] | CIBC Bank USA [Member] | Uncollateralized [Member] | |||||||||
Line of credit | 5,000,000 | ||||||||
Line of credit available to be drawn | $ 5,000,000 | ||||||||
Senior Lender Wells Fargo Bank [Member] | |||||||||
Cash and cash equivalents | $ 1,782,000 | $ 2,310,000 | |||||||
CIBC Bank USA [Member] | CARES Act [Member] | |||||||||
Proceeds from loan | $ 4,719,000 | ||||||||
Debt maturity date | Apr. 9, 2022 | ||||||||
Debt interest rate | 1.00% | ||||||||
CIBC Bank USA [Member] | Second SBA Loan [Member] | |||||||||
Proceeds from loan | $ 2,000,000 | ||||||||
Debt maturity date | Feb. 3, 2026 | ||||||||
Debt interest rate | 1.00% |
Schedule of Revenue Disaggregat
Schedule of Revenue Disaggregation by Revenue Streams (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total hotel revenue | $ 6,805,000 | $ 3,425,000 |
Hotel Rooms [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total hotel revenue | 5,562,000 | 2,890,000 |
Food and Beverage [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total hotel revenue | 266,000 | 37,000 |
Garage [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total hotel revenue | 907,000 | 470,000 |
Other Operating Departments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total hotel revenue | $ 70,000 | $ 28,000 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, liability | $ 399,000 | $ 161,000 |
Advance deposit received for future reservations | $ 238,000 |
Schedule of Investment in Hotel
Schedule of Investment in Hotel, Net (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 90,379,000 | $ 90,137,000 |
Accumulated Depreciation | (59,154,000) | (58,624,000) |
Net Book Value | 31,225,000 | 31,513,000 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,124,000 | 1,124,000 |
Accumulated Depreciation | ||
Net Book Value | 1,124,000 | 1,124,000 |
Finance Lease ROU Assets[Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,805,000 | 1,805,000 |
Accumulated Depreciation | (685,000) | (606,000) |
Net Book Value | 1,120,000 | 1,199,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 31,254,000 | 31,014,000 |
Accumulated Depreciation | (28,087,000) | (27,956,000) |
Net Book Value | 3,167,000 | 3,058,000 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 56,196,000 | 56,194,000 |
Accumulated Depreciation | (30,382,000) | (30,062,000) |
Net Book Value | $ 25,814,000 | $ 26,132,000 |
Schedule of Changes in Unrealiz
Schedule of Changes in Unrealized Gains and Losses on Investments (Details) - Equity Securities [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Marketable Securities [Line Items] | ||
Cost | $ 4,365,000 | $ 4,987,000 |
Gross Unrealized Gain | 216,000 | 438,000 |
Gross Unrealized Loss | (2,076,000) | (1,889,000) |
Net Unrealized Loss | (1,860,000) | (1,451,000) |
Fair Value | $ 2,505,000 | $ 3,536,000 |
Schedule of Net Loss on Marketa
Schedule of Net Loss on Marketable Securities (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Realized loss on marketable securities, net | $ (5,000) | $ (11,000) |
Realized loss on marketable securities related to LODE | (40,000) | |
Unrealized gain (loss) on marketable securities, net | (263,000) | 22,000 |
Unrealized gain (loss) on marketable securities related to LODE | (137,000) | 46,000 |
Net gain (loss) on marketable securities | $ (445,000) | $ 57,000 |
INVESTMENT IN MARKETABLE SECU_3
INVESTMENT IN MARKETABLE SECURITIES, NET (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Securities Held For Over One Year [Member] | ||
Marketable Securities [Line Items] | ||
Unrealized losses related to securities | $ 1,958,000 | $ 1,873,000 |
Comstock Mining, Inc [Member] | ||
Marketable Securities [Line Items] | ||
Percentage of investment in marketable securities | 19.00% | 19.00% |
Unrealized losses related to securities | $ 1,947,000 | $ 1,789,000 |
Schedule of Fair Value, Assets
Schedule of Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | $ 2,505,000 | $ 3,536,000 |
Communication Services [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 1,177,000 | 1,334,000 |
Basic Materials [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 509,000 | 720,000 |
REITs And Real Estate Companies [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 412,000 | 438,000 |
Industrials [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 210,000 | 653,000 |
Energy [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 187,000 | 250,000 |
Health Care [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | $ 10,000 | $ 141,000 |
Schedule of Cash, Cash Equivale
Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 1,782,000 | $ 2,310,000 | ||
Restricted cash | 7,063,000 | 6,222,000 | ||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows | $ 8,845,000 | $ 8,532,000 | $ 12,161,000 | $ 16,385,000 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 6,805,000 | $ 3,425,000 | |
Segment operating expenses | (6,661,000) | (5,209,000) | |
Segment loss | 144,000 | (1,784,000) | |
Interest expense - mortgage | (1,661,000) | (1,700,000) | |
Interest expense - related party | (237,000) | (91,000) | |
Depreciation and amortization expense | (529,000) | (530,000) | |
Income from investments | (467,000) | 19,000 | |
Income tax benefit | 775,000 | 1,071,000 | |
Net income (loss) | (1,975,000) | (3,015,000) | |
Total assets | 52,249,000 | $ 52,551,000 | |
Hotel Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6,805,000 | 3,425,000 | |
Segment operating expenses | (6,333,000) | (5,033,000) | |
Segment loss | 472,000 | (1,608,000) | |
Interest expense - mortgage | (1,661,000) | (1,700,000) | |
Interest expense - related party | (237,000) | (91,000) | |
Depreciation and amortization expense | (529,000) | (530,000) | |
Income from investments | |||
Income tax benefit | |||
Net income (loss) | (1,955,000) | (3,929,000) | |
Total assets | 40,704,000 | ||
Investment Transactions [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | |||
Segment operating expenses | |||
Segment loss | |||
Interest expense - mortgage | |||
Depreciation and amortization expense | |||
Income from investments | (467,000) | 19,000 | |
Income tax benefit | |||
Net income (loss) | (467,000) | 19,000 | |
Total assets | 2,525,000 | ||
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | |||
Segment operating expenses | (328,000) | (176,000) | |
Segment loss | (328,000) | (176,000) | |
Interest expense - mortgage | |||
Depreciation and amortization expense | |||
Income from investments | |||
Income tax benefit | 775,000 | 1,071,000 | |
Net income (loss) | 447,000 | $ 895,000 | |
Total assets | $ 9,020,000 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 9 Months Ended |
Mar. 31, 2021Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
Schedule of Related Party and O
Schedule of Related Party and Other Notes Payable (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total related party and other notes payable | $ 14,058,000 | $ 12,738,000 |
Note payable - InterGroup [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total related party and other notes payable | 8,112,000 | 6,650,000 |
Note payable - Hilton [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total related party and other notes payable | 2,613,000 | 2,692,000 |
Note payable - Interstate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total related party and other notes payable | 1,333,000 | 1,396,000 |
SBA Loan - Justice [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total related party and other notes payable | $ 2,000,000 | $ 2,000,000 |
Schedule of Minimum Future Leas
Schedule of Minimum Future Lease Payments for Assets (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Related Party And Other Financing Transactions | |||
2022 | $ 378,000 | ||
2023 | 188,000 | ||
Total minimum lease payments | 566,000 | ||
Less interest on finance lease | (22,000) | ||
Present value of future minimum lease payments | $ 544,000 | $ 664,000 | $ 544,000 |
Schedule of Future Minimum Prin
Schedule of Future Minimum Principal Payments (Details) | Sep. 30, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 16,801,000 |
2023 | 111,411,000 |
2024 | 567,000 |
2025 | 2,567,000 |
Long-term Debt | 140,059,000 |
Related Party And Other Financing Transaction [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 786,000 |
2023 | 8,900,000 |
2024 | 567,000 |
2025 | 567,000 |
2026 | 2,567,000 |
Thereafter | 1,254,000 |
Long-term Debt | $ 14,641,000 |
RELATED PARTY AND OTHER FINAN_3
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Details Narrative) - USD ($) | Feb. 03, 2021 | Apr. 30, 2020 | Feb. 03, 2017 | Jul. 02, 2014 | Sep. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 16, 2020 | Jul. 31, 2019 | May 11, 2017 | Jan. 31, 2017 | Dec. 31, 2013 |
Debt instrument, interest rate, stated percentage | 5.275% | |||||||||||
Debt instruments, payment term | 10 years | |||||||||||
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. | ||||||||||
[custom:KeyMoneyIncentiveAdvanceToRelatedParty] | $ 2,000,000 | |||||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 8 years | |||||||||||
Proceeds from loan | $ 6,814,000 | |||||||||||
Financial lease obligations | $ 544,000 | $ 544,000 | $ 664,000 | |||||||||
Finance lease term | through 2023 | |||||||||||
Accounts payable to related party | $ 3,396,000 | 3,193,000 | ||||||||||
Outstanding loan principal amount | $ 90,355,000 | 90,745,000 | ||||||||||
Minimum [Member] | ||||||||||||
Finance lease term | 4.62% | |||||||||||
Maximum [Member] | ||||||||||||
Finance lease term | 6.25% | |||||||||||
Interest Free Development Incentive Note [Member] | ||||||||||||
Debt instruments, payment term | 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 | 8,150,000 | 6,650,000 | ||||||||||
Amortization of financing costs | $ 37,500 | $ 0 | ||||||||||
CIBC Bank USA [Member] | Second SBA Loan [Member] | ||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | |||||||||||
Debt instrument, maturity date | Feb. 3, 2026 | |||||||||||
Proceeds from loan | $ 2,000,000 | |||||||||||
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 instruments, payment term | with a term of 2 years | |||||||||||
Percentage of loan fee received | 3.00% | |||||||||||
Debt instrument, maturity date, description | The loan was extended to July 31, 2022. | |||||||||||
Debt instrument, maturity date | Jul. 31, 2022 |
Schedule of Accounts Payable an
Schedule of Accounts Payable and Other Liabilities - Justice (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Payables and Accruals [Abstract] | |||
Trade payable | $ 3,497,000 | $ 2,809,000 | |
Advance deposits | 399,000 | 161,000 | |
Property tax payable | 509,000 | ||
Payroll and related accruals | 2,549,000 | 2,345,000 | |
Mortgage interest payable | 518,000 | 582,000 | |
Withholding and other taxes payable | 649,000 | 885,000 | |
Security deposit | 52,000 | 52,000 | |
Finance leases | 544,000 | 664,000 | $ 544,000 |
Other payables | 687,000 | 606,000 | |
Total accounts payable and other liabilities - Justice | $ 9,404,000 | $ 8,104,000 |