Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q3 | |
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 ($) | Mar. 31, 2022 | Jun. 30, 2021 |
ASSETS | ||
Investment in hotel, net | $ 31,614,000 | $ 31,513,000 |
Investment in marketable securities | 1,412,000 | 3,536,000 |
Cash and cash equivalents | 1,687,000 | 2,310,000 |
Restricted cash | 5,407,000 | 6,222,000 |
Accounts receivable - hotel, net | 366,000 | 194,000 |
Other assets, net | 1,508,000 | 721,000 |
Deferred tax assets | 10,251,000 | 8,055,000 |
Total assets | 52,245,000 | 52,551,000 |
Liabilities: | ||
Accounts payable and other liabilities | 8,902,000 | 8,294,000 |
Accounts payable to related party | 4,263,000 | 3,193,000 |
Due to securities broker | 569,000 | 1,715,000 |
Related party note payable - InterGroup | 14,187,000 | 6,650,000 |
Related party notes payable | 3,663,000 | 4,088,000 |
Other note payable - SBA Loan | 2,000,000 | |
Mortgage notes payable - hotel, net | 109,092,000 | 110,134,000 |
Total liabilities | 140,676,000 | 136,074,000 |
Shareholders’ deficit: | ||
Common stock, no par value: Authorized shares - 750,000; 734,187 shares issued and outstanding shares as of March 31, 2022 and June 30, 2021 | 2,092,000 | 2,092,000 |
Accumulated deficit | (90,523,000) | (84,960,000) |
Total Portsmouth shareholders’ deficit | (88,431,000) | (82,868,000) |
Noncontrolling interest | (655,000) | |
Total shareholders’ deficit | (88,431,000) | (83,523,000) |
Total liabilities and shareholders’ deficit | $ 52,245,000 | $ 52,551,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | 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 | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenue - Hotel | $ 6,632,000 | $ 2,902,000 | $ 19,785,000 | $ 9,436,000 |
Costs and operating expenses | ||||
Hotel operating expenses | (6,544,000) | (3,990,000) | (19,356,000) | (14,156,000) |
Hotel depreciation and amortization expense | (550,000) | (503,000) | (1,593,000) | (1,566,000) |
General and administrative expense | (282,000) | (201,000) | (892,000) | (561,000) |
Total costs and operating expenses | (7,376,000) | (4,694,000) | (21,841,000) | (16,283,000) |
Loss from operations | (744,000) | (1,792,000) | (2,056,000) | (6,847,000) |
Other income (expense) | ||||
Interest expense - mortgage | (1,624,000) | (1,675,000) | (4,939,000) | (5,076,000) |
Interest expense - related party | (385,000) | (158,000) | (925,000) | (339,000) |
Net gain on marketable securities | 100,000 | (15,000) | 1,299,000 | 69,000 |
Net (loss) gain on marketable securities - Comstock | 1,283,000 | (2,056,000) | 1,315,000 | |
Gain on debt extinguishment | 2,000,000 | |||
Impairment loss on other investments | (15,000) | (20,000) | (38,000) | |
Dividend and interest income | 27,000 | 1,000 | 91,000 | 16,000 |
Trading and margin interest expense | (48,000) | (35,000) | (156,000) | (91,000) |
Total other expense, net | (1,930,000) | (614,000) | (4,706,000) | (4,144,000) |
Loss before income taxes | (2,674,000) | (2,406,000) | (6,762,000) | (10,991,000) |
Income tax benefit | 1,045,000 | 669,000 | 2,198,000 | 2,995,000 |
Net Loss | (1,629,000) | (1,737,000) | (4,564,000) | (7,996,000) |
Less:Net loss attributable to noncontrolling interest | (223,000) | 300,000 | ||
Net loss attributable to Portsmouth | $ (1,629,000) | $ (1,960,000) | $ (4,564,000) | $ (7,696,000) |
Basic and diluted net loss per share attributable to Portsmouth | $ (2.22) | $ (2.67) | $ (6.22) | $ (10.48) |
Weighted average number of common shares outstanding - basic and diluted | 734,187 | 734,183 | 734,187 | 734,183 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Retained Earnings [Member] | Total Portsmouth Shareholders Deficit [Member] | Noncontrolling Interest [Member] | Total |
Balance 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) gain | (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, 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, shares at Jun. 30, 2020 | 734,183 | ||||
Net (loss) gain | (7,996,000) | ||||
Balance at Mar. 31, 2021 | $ 2,092,000 | (85,438,000) | (83,346,000) | (2,397,000) | (85,743,000) |
Balance, 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, shares at Sep. 30, 2020 | 734,183 | ||||
Net (loss) gain | (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, shares at Dec. 31, 2020 | 734,183 | ||||
Net (loss) gain | (1,960,000) | (1,960,000) | 223,000 | (1,737,000) | |
Investment in Justice | (206,000) | (206,000) | |||
Reclassify Justice NCI | (3,933,000) | (3,933,000) | 3,933,000 | ||
Shares Issued | |||||
Shares Issued (in shares) | 4 | ||||
Balance at Mar. 31, 2021 | $ 2,092,000 | (85,438,000) | (83,346,000) | (2,397,000) | (85,743,000) |
Balance, shares at Mar. 31, 2021 | 734,187 | ||||
Balance 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) gain | (1,975,000) | (1,975,000) | (1,975,000) | ||
Investment in Justice | (344,000) | (344,000) | |||
Purchase of Remaining Interest in Justice | (999,000) | (999,000) | 999,000 | ||
Balance at Sep. 30, 2021 | $ 2,092,000 | (87,934,000) | (85,842,000) | (85,842,000) | |
Balance, shares at Sep. 30, 2021 | 734,187 | ||||
Balance 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) gain | (4,564,000) | ||||
Balance at Mar. 31, 2022 | $ 2,092,000 | (90,523,000) | (88,431,000) | (88,431,000) | |
Balance, shares at Mar. 31, 2022 | 734,187 | ||||
Balance at Sep. 30, 2021 | $ 2,092,000 | (87,934,000) | (85,842,000) | (85,842,000) | |
Balance, shares at Sep. 30, 2021 | 734,187 | ||||
Net (loss) gain | (960,000) | (960,000) | (960,000) | ||
Balance at Dec. 31, 2021 | $ 2,092,000 | (88,894,000) | (86,802,000) | (86,802,000) | |
Balance, shares at Dec. 31, 2021 | 734,187 | ||||
Net (loss) gain | (1,629,000) | (1,629,000) | (1,629,000) | ||
Balance at Mar. 31, 2022 | $ 2,092,000 | $ (90,523,000) | $ (88,431,000) | $ (88,431,000) | |
Balance, shares at Mar. 31, 2022 | 734,187 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (4,564,000) | $ (7,996,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Net unrealized gain on marketable securities | (1,298,000) | (1,644,000) |
Gain on debt extinguishment | (2,000,000) | |
Deferred taxes | (2,196,000) | (2,995,000) |
Impairment loss on other investments | 20,000 | 38,000 |
Depreciation and amortization | 1,593,000 | 1,566,000 |
Amortization of loan costs | 221,000 | 248,000 |
Amortization of related party notes payable | (426,000) | (426,000) |
Changes in operating assets and liabilities: | ||
Investment in marketable securities | 3,422,000 | 606,000 |
Accounts receivable | (172,000) | 129,000 |
Other assets | (807,000) | (42,000) |
Accounts payable and other liabilities | 974,000 | (1,098,000) |
Accounts payable related party | 1,070,000 | 606,000 |
Due to securities broker | (1,146,000) | |
Net cash used in operating activities | (5,309,000) | (11,008,000) |
Cash flows from investing activities: | ||
Payments for hotel furniture, equipment and building improvements | (1,694,000) | (490,000) |
Investment in Justice | (344,000) | (206,000) |
Proceeds from real estate investments | 980,000 | |
Proceeds from other investments | 29,000 | |
Net cash (used in) provided by investing activities | (2,038,000) | 313,000 |
Cash flows from financing activities: | ||
Proceeds from related party note payable | 7,550,000 | 2,950,000 |
Proceeds from other notes paybale - SBA Loan | 2,000,000 | |
Issuance cost from refinance of related party loan | (50,000) | (50,000) |
Payments of mortgage and other notes payable | (1,591,000) | (1,507,000) |
Net cash provided by financing activities | 5,909,000 | 3,393,000 |
Net decrease in cash, cash equivalents, and restricted cash | (1,438,000) | (7,302,000) |
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 | 7,094,000 | 9,083,000 |
Supplemental information: | ||
Interest paid | 4,974,000 | 5,415,000 |
Taxes paid | 22,000 | |
Non-cash transaction: | ||
Additions to Hotel equipment through finance lease | $ 30,000 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2022 | |
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”), 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 condensed consolidated financial statements include the accounts of our wholly owned and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the nine months ended March 31, 2022 are not necessarily indicative of results to be expected for the full fiscal year ending June 30, 2022. Portsmouth’s primary business was conducted through its general and limited partnership interest in Justice Investors Limited Partnership, a California limited partnership (“Justice” or the “Partnership”). Effective July 15, 2021, Portsmouth completed the purchase of 100 Prior to its dissolution effective December 23, 2021, Justice owned and operated a 544-room hotel property located at 750 Kearny Street, San Francisco California, known as the Hilton San Francisco Financial District (the “Hotel”) and related facilities including a five-level underground parking garage through its subsidiaries Justice Operating Company, LLC (“Operating”) and Justice Mezzanine Company, LLC (“Mezzanine”). Mezzanine was a wholly owned subsidiary of the Partnership; Operating is a wholly owned subsidiary of Mezzanine. Effective December 23, 2021, Portsmouth replaced Justice as the single member of Mezzanine. Mezzanine is the borrower under certain mezzanine indebtedness of Justice, and in December 2013, the Partnership conveyed ownership of the Hotel to Operating. The Hotel is a full-service Hilton brand hotel pursuant to a Franchise License Agreement with HLT Franchise Holding LLC (“Hilton”) through January 31, 2030. Operating entered into a Hotel management agreement (“HMA”) with Aimbridge Hospitality (“Aimbridge”) to manage the Hotel, along with its five-level parking garage, with an effective date of February 3, 2017. The term of the management agreement is for an initial period of ten years automatically renews for successive one (1) year periods, to not exceed five years in the aggregate, subject to certain conditions. 1.70 As of March 31, 2022, The InterGroup Corporation (“InterGroup”), a public company, owns approximately 75.0 2.5 67.6 There have been no material changes to the Company’s significant accounting policies during the nine months ended March 31, 2022. Please refer to the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 for a summary of the significant accounting policies. Certain prior year amounts have been reclassified for consistency with the current period presentation on the condensed consolidated balance sheet and condensed consolidated statement of cash flow. Other investment, net of $ 20,000 664,000 7,440,000 10,738,000 6,650,000 4,088,000 Recently Issued and Adopted Accounting Pronouncements As of March 31, 2022, management does not expect a material impact from recently issued accounting pronouncements yet to be adopted, on the Company’s condensed consolidated financial statements. |
LIQUIDITY
LIQUIDITY | 9 Months Ended |
Mar. 31, 2022 | |
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 continues to have a material detrimental impact on our liquidity. For the nine months ended March 31, 2022 and 2021, our net cash flow used in operations was $ 5,309,000 11,008,000 The Company had cash and cash equivalents of $ 1,687,000 2,310,000 843,000 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 July 31, 2021 July 31, 2022 11,350,000 16,000,000 7,550,000 14,200,000 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 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 2,000,000 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 occupancy and revenue per occupied room (“RevPAR”, calculated by multiplying the hotel’s average daily room rate by its occupancy percentage) 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 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, 2022, the Company’s material financial obligations which also including interest payments: SCHEDULE OF FINANCIAL OBLIGATIONS INCLUDING INTEREST PAYMENTS 3 Months Year Year Year Year Total 2022 2023 2024 2025 2026 Thereafter Mortgage notes payable $ 109,520,000 $ 552,000 $ 1,729,000 $ 107,239,000 $ - $ - $ - Related party notes payable 17,863,000 142,000 14,767,000 567,000 567,000 567,000 1,253,000 Interest 11,620,000 2,386,000 6,167,000 3,067,000 - - - Total $ 139,003,000 $ 3,080,000 $ 22,663,000 $ 110,873,000 $ 567,000 $ 567,000 $ 1,253,000 |
REVENUE
REVENUE | 9 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 Hotel revenues: Hotel rooms $ 5,505,000 $ 2,368,000 Food and beverage 372,000 17,000 Garage 677,000 479,000 Other operating departments 78,000 38,000 Total hotel revenue $ 6,632,000 $ 2,902,000 For the nine months ended March 31, 2022 2021 Hotel revenues: Hotel rooms $ 16,285,000 $ 7,842,000 Food and beverage 934,000 130,000 Garage 2,352,000 1,373,000 Other operating departments 214,000 91,000 Total hotel revenue $ 19,785,000 $ 9,436,000 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 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, 2022 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. Based on historical trends, the Hotel applies a 50% rate of default to receivables between 90 and 120 days and a 100% rate of default to receivables over 120 days. 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 $ 467,000 161,000 306,000 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 | 9 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (843,000 ) 962,000 Furniture and equipment 32,630,000 (28,351,000 ) 4,279,000 Building and improvements 56,272,000 (31,023,000 ) 25,249,000 Investment in Hotel, net $ 91,831,000 $ (60,217,000 ) $ 31,614,000 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 Finance lease ROU assets, furniture and equipment are stated at cost, depreciated on a straight-line basis over their useful lives ranging from 3 7 15 39 1,593,000 1,566,000 |
INVESTMENT IN MARKETABLE SECURI
INVESTMENT IN MARKETABLE SECURITIES, NET | 9 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, 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 Fair Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Value As of March 31, 2022 Corporate Equities $ 1,565,000 $ 79,000 $ (232,000 ) $ (153,000 ) $ 1,412,000 As of June 30, 2021 Corporate Equities $ 4,987,000 $ 438,000 $ (1,889,000 ) $ (1,451,000 ) $ 3,536,000 As of June 30, 2021, approximately 19 March 31, 2022, As of March 31, 2022, and June 30, 2021, the Company had $ 2,000 1,873,000 0 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 gains (losses) on marketable securities for the three and nine months ended March 31, 2022 and 2021, respectively: SCHEDULE OF NET LOSS ON MARKETABLE SECURITIES For the three months ended March 31, 2022 2021 Realized gain on marketable securities, net $ 85,000 $ - Realized loss on marketable securities related to Comstock - (250,000 ) Unrealized gain (loss) on marketable securities, net 15,000 (15,000 ) Unrealized gain on marketable securities related to Comstock - 1,533,000 Net gain on marketable securities $ 100,000 $ 1,268,000 For the nine months ended March 31, 2022 2021 Realized gain (loss) on marketable securities, net $ 1,000 $ (11,000 ) Realized loss on marketable securities related to Comstock (2,056,000 ) (250,000 ) Unrealized gain on marketable securities, net 1,298,000 80,000 Unrealized gain on marketable securities related to Comstock - 1,565,000 Net (loss) gain on marketable securities $ (757,000 ) $ 1,384,000 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 June 30, 2021 As of Total - Level 1 Total - Level 1 Assets: Investment in marketable securities: Communication services $ 1,101,000 $ 1,334,000 REITs and real estate companies 184,000 438,000 Basic materials 42,000 720,000 Financial services 38,000 - Consumer cyclical 32,000 - Utilities 6,000 - Healthcare 5,000 141,000 Technology 4,000 - Industrials - 653,000 Energy - 250,000 Investment in marketable securities $ 1,412,000 $ 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. 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: SCHEDULE OF FAIR VALUE, ASSETS MEASURED ON NONRECURRING BASIS Net loss for the nine months Level 3 March 31, 2022 ended March 31, 2022 Assets Other non-marketable investments $ - $ - $ (20,000 ) Net loss for the nine months Level 3 June 30, 2021 ended March 31, 2021 Assets Other non-marketable investments $ 20,000 $ 20,000 $ (38,000 ) For the nine months ended March 31, 2022 and 2021, we received a distribution from other non-marketable investments of zero 29,000 Other investments in non-marketable securities are carried at cost net of any impairment loss. The Company has no significant influence or control over the entities that issue these investments 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 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, 2022 | |
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 March 31, 2022 June 30, 2021 Cash and cash equivalents $ 1,687,000 $ 2,310,000 Restricted cash 5,407,000 6,222,000 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 7,094,000 $ 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 | 9 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 8 - SEGMENT INFORMATION The Company operates in two two Information below represents reporting segments for the three and nine months ended March 31, 2022 and 2021, 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 March 31, 2022 Operations Transactions Corporate Total Revenues $ 6,632,000 $ - $ - $ 6,632,000 Segment operating expenses (6,544,000 ) - (282,000 ) (6,826,000 ) Segment income (loss) 88,000 - (282,000 ) (194,000 ) Interest expense - mortgage (1,624,000 ) - - (1,624,000 ) Interest expense - related party (385,000 ) (385,000 ) Depreciation and amortization expense (550,000 ) - - (550,000 ) Gain on extinguishment of debt Income from investments - 79,000 - 79,000 Income tax benefit - - 1,045,000 1,045,000 Net (loss) income $ (2,471,000 ) $ 79,000 $ 763,000 $ (1,629,000 ) Total assets $ 40,322,000 $ 1,412,000 $ 10,511,000 $ 52,245,000 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 (1,675,000 ) - - (1,675,000 ) Interest expense - related party (158,000 ) (158,000 ) Depreciation and amortization expense (503,000 ) - - (503,000 ) Income from investments - 1,219,000 - 1,219,000 Income tax benefit - - 669,000 669,000 Net (loss) income $ (3,424,000 ) $ 1,219,000 $ 468,000 $ (1,737,000 ) As of and for the nine months Hotel Investment ended March 31, 2022 Operations Transactions Corporate Total Revenues $ 19,785,000 $ - $ - $ 19,785,000 Segment operating expenses (19,356,000 ) - (892,000 ) (20,248,000 ) Segment income (loss) 429,000 - (892,000 ) (463,000 ) Interest expense - mortgage (4,939,000 ) - - (4,939,000 ) Interest expense - related party (925,000 ) (925,000 ) Depreciation and amortization expense (1,593,000 ) - - (1,593,000 ) Gain on extinguishment of debt 2,000,000 2,000,000 Loss from investments - (842,000 ) - (842,000 ) Income tax benefit - - 2,198,000 2,198,000 Net (loss) income $ (5,028,000 ) $ (842,000 ) $ 1,306,000 $ (4,564,000 ) Total assets $ 40,322,000 $ 1,412,000 $ 10,511,000 $ 52,245,000 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 ) Segment income (loss) (4,720,000 ) - (561,000 ) (5,281,000 ) Interest expense - mortgage (5,076,000 ) - - (5,076,000 ) Interest expense - related party (339,000 ) (339,000 ) Depreciation and amortization expense (1,566,000 ) - - (1,566,000 ) Income from investments - 1,271,000 - 1,271,000 Income (loss) from investments - 1,271,000 - 1,271,000 Income tax benefit - - 2,995,000 2,995,000 Net (loss) income $ (11,701,000 ) $ 1,271,000 $ 2,434,000 $ (7,996,000 ) |
RELATED PARTY AND OTHER FINANCI
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
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 March 31, 2022 and June 30, 2021, respectively. SCHEDULE OF RELATED PARTY AND OTHER NOTES PAYABLE As of March 31, 2022 June 30, 2021 Related party note payable - InterGroup $ 14,200,000 $ 6,650,000 Related party note payable - Hilton 2,455,000 2,692,000 Related party note payable - Aimbridge 1,208,000 1,396,000 Other note payable - SBA Loan - 2,000,000 Total related party and other notes payable $ 17,863,000 $ 12,738,000 On July 2, 2014, the Partnership obtained from InterGroup an unsecured loan in the principal amount of $ 4,250,000 12 2 3 The loan was extended to July 31, 2022 10,000,000 11,350,000 16,000,000 14,200,000 6,650,000 13,000 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, Operating entered an HMA with Ambridge to manage the Hotel with an effective takeover date of February 3, 2017. The term of the management agreement is for an initial period of 10 2,000,000 8 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 2,000,000 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 $ 142,000 2023 14,767,000 2024 567,000 2025 567,000 2026 567,000 Thereafter 1,253,000 Long term debt $ 17,863,000 As of March 31, 2022, and June 30, 2021, the Company had accounts payable to related party of $ 4,263,000 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 89,520,000 90,745,000 The mezzanine interest only loan had an interest rate of 9.75 20,000,000 9.75 7.25 January 1, 2024 Effective May 11, 2017, InterGroup agreed to become an additional guarantor under the limited guaranty and an additional indemnitor under the environmental indemnity for Justice Investors limited partnership’s $ 97,000,000 20,000,000 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 the Company’s directors also serve as directors of InterGroup except for Mr. Grunwald. The Company’s director and Chairman of the Audit Committee, William J. Nance, serves as Comstock’s director and Chairman of the Audit and Finance, Compensation and Nominating and Governance Committees of Comstock. 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 till its dissolution in December 2021. 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. On May 24, 2021, John V. Winfield resigned effective immediately as the Company’s President and the Company’s Board of Directors elected David C. Gonzalez as the Company’s new President, effective as of May 24, 2021. Mr. Gonzalez serves as Vice President Real Estate of InterGroup and is an advisor of the Executive Strategic Real Estate and Securities Investment Committee of InterGroup and Portsmouth. |
ACCOUNTS PAYABLE AND OTHER LIAB
ACCOUNTS PAYABLE AND OTHER LIABILITIES | 9 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND OTHER LIABILITIES | NOTE 10 – ACCOUNTS PAYABLE AND OTHER LIABILITIES The following summarizes the balances of accounts payable and other liabilities as of March 31, 2022 and June 30, 2021, respectively. SCHEDULE OF ACCOUNTS PAYABLE AND OTHER LIABILITIES As of March 31, 2022 June 30, 2021 Trade payable $ 3,128,000 $ 2,951,000 Payroll and related accruals 2,537,000 2,345,000 Withholding and other taxes payable 648,000 885,000 Advance deposits 492,000 161,000 Finance leases 298,000 664,000 Security deposit 52,000 52,000 Mortgage interest payable 407,000 582,000 Other payables 1,340,000 654,000 Total accounts payable and other liabilities $ 8,902,000 $ 8,294,000 As of March 31, 2022, the Company had finance lease obligations outstanding of $ 298,000 through 2023 4.62 6.25 SCHEDULE OF MINIMUM FUTURE LEASE PAYMENTS FOR ASSETS For the year ending June 30, 2022 $ 119,000 2023 188,000 Total minimum lease payments 307,000 Less interest on finance lease (9,000 ) Present value of future minimum lease payments $ 298,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS The Company evaluated subsequent events through the date that the accompanying financial statements were issued, and has determined that no material subsequent events exist through the date of this filing. |
LIQUIDITY (Tables)
LIQUIDITY (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Liquidity | |
SCHEDULE OF FINANCIAL OBLIGATIONS INCLUDING INTEREST PAYMENTS | The following table provides a summary as of March 31, 2022, the Company’s material financial obligations which also including interest payments: SCHEDULE OF FINANCIAL OBLIGATIONS INCLUDING INTEREST PAYMENTS 3 Months Year Year Year Year Total 2022 2023 2024 2025 2026 Thereafter Mortgage notes payable $ 109,520,000 $ 552,000 $ 1,729,000 $ 107,239,000 $ - $ - $ - Related party notes payable 17,863,000 142,000 14,767,000 567,000 567,000 567,000 1,253,000 Interest 11,620,000 2,386,000 6,167,000 3,067,000 - - - Total $ 139,003,000 $ 3,080,000 $ 22,663,000 $ 110,873,000 $ 567,000 $ 567,000 $ 1,253,000 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 Hotel revenues: Hotel rooms $ 5,505,000 $ 2,368,000 Food and beverage 372,000 17,000 Garage 677,000 479,000 Other operating departments 78,000 38,000 Total hotel revenue $ 6,632,000 $ 2,902,000 For the nine months ended March 31, 2022 2021 Hotel revenues: Hotel rooms $ 16,285,000 $ 7,842,000 Food and beverage 934,000 130,000 Garage 2,352,000 1,373,000 Other operating departments 214,000 91,000 Total hotel revenue $ 19,785,000 $ 9,436,000 |
INVESTMENT IN HOTEL, NET (Table
INVESTMENT IN HOTEL, NET (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (843,000 ) 962,000 Furniture and equipment 32,630,000 (28,351,000 ) 4,279,000 Building and improvements 56,272,000 (31,023,000 ) 25,249,000 Investment in Hotel, net $ 91,831,000 $ (60,217,000 ) $ 31,614,000 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) | 9 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
SCHEDULE OF CHANGES IN UNREALIZED GAINS AND LOSSES ON INVESTMENTS | As of March 31, 2022, 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 Fair Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Value As of March 31, 2022 Corporate Equities $ 1,565,000 $ 79,000 $ (232,000 ) $ (153,000 ) $ 1,412,000 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 gains (losses) on marketable securities for the three and nine months ended March 31, 2022 and 2021, respectively: SCHEDULE OF NET LOSS ON MARKETABLE SECURITIES For the three months ended March 31, 2022 2021 Realized gain on marketable securities, net $ 85,000 $ - Realized loss on marketable securities related to Comstock - (250,000 ) Unrealized gain (loss) on marketable securities, net 15,000 (15,000 ) Unrealized gain on marketable securities related to Comstock - 1,533,000 Net gain on marketable securities $ 100,000 $ 1,268,000 For the nine months ended March 31, 2022 2021 Realized gain (loss) on marketable securities, net $ 1,000 $ (11,000 ) Realized loss on marketable securities related to Comstock (2,056,000 ) (250,000 ) Unrealized gain on marketable securities, net 1,298,000 80,000 Unrealized gain on marketable securities related to Comstock - 1,565,000 Net (loss) gain on marketable securities $ (757,000 ) $ 1,384,000 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 June 30, 2021 As of Total - Level 1 Total - Level 1 Assets: Investment in marketable securities: Communication services $ 1,101,000 $ 1,334,000 REITs and real estate companies 184,000 438,000 Basic materials 42,000 720,000 Financial services 38,000 - Consumer cyclical 32,000 - Utilities 6,000 - Healthcare 5,000 141,000 Technology 4,000 - Industrials - 653,000 Energy - 250,000 Investment in marketable securities $ 1,412,000 $ 3,536,000 |
SCHEDULE OF FAIR VALUE, ASSETS MEASURED ON NONRECURRING BASIS | 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: SCHEDULE OF FAIR VALUE, ASSETS MEASURED ON NONRECURRING BASIS Net loss for the nine months Level 3 March 31, 2022 ended March 31, 2022 Assets Other non-marketable investments $ - $ - $ (20,000 ) Net loss for the nine months Level 3 June 30, 2021 ended March 31, 2021 Assets Other non-marketable investments $ 20,000 $ 20,000 $ (38,000 ) |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 June 30, 2021 Cash and cash equivalents $ 1,687,000 $ 2,310,000 Restricted cash 5,407,000 6,222,000 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 7,094,000 $ 8,532,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT | Information below represents reporting segments for the three and nine months ended March 31, 2022 and 2021, 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 March 31, 2022 Operations Transactions Corporate Total Revenues $ 6,632,000 $ - $ - $ 6,632,000 Segment operating expenses (6,544,000 ) - (282,000 ) (6,826,000 ) Segment income (loss) 88,000 - (282,000 ) (194,000 ) Interest expense - mortgage (1,624,000 ) - - (1,624,000 ) Interest expense - related party (385,000 ) (385,000 ) Depreciation and amortization expense (550,000 ) - - (550,000 ) Gain on extinguishment of debt Income from investments - 79,000 - 79,000 Income tax benefit - - 1,045,000 1,045,000 Net (loss) income $ (2,471,000 ) $ 79,000 $ 763,000 $ (1,629,000 ) Total assets $ 40,322,000 $ 1,412,000 $ 10,511,000 $ 52,245,000 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 (1,675,000 ) - - (1,675,000 ) Interest expense - related party (158,000 ) (158,000 ) Depreciation and amortization expense (503,000 ) - - (503,000 ) Income from investments - 1,219,000 - 1,219,000 Income tax benefit - - 669,000 669,000 Net (loss) income $ (3,424,000 ) $ 1,219,000 $ 468,000 $ (1,737,000 ) As of and for the nine months Hotel Investment ended March 31, 2022 Operations Transactions Corporate Total Revenues $ 19,785,000 $ - $ - $ 19,785,000 Segment operating expenses (19,356,000 ) - (892,000 ) (20,248,000 ) Segment income (loss) 429,000 - (892,000 ) (463,000 ) Interest expense - mortgage (4,939,000 ) - - (4,939,000 ) Interest expense - related party (925,000 ) (925,000 ) Depreciation and amortization expense (1,593,000 ) - - (1,593,000 ) Gain on extinguishment of debt 2,000,000 2,000,000 Loss from investments - (842,000 ) - (842,000 ) Income tax benefit - - 2,198,000 2,198,000 Net (loss) income $ (5,028,000 ) $ (842,000 ) $ 1,306,000 $ (4,564,000 ) Total assets $ 40,322,000 $ 1,412,000 $ 10,511,000 $ 52,245,000 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 ) Segment income (loss) (4,720,000 ) - (561,000 ) (5,281,000 ) Interest expense - mortgage (5,076,000 ) - - (5,076,000 ) Interest expense - related party (339,000 ) (339,000 ) Depreciation and amortization expense (1,566,000 ) - - (1,566,000 ) Income from investments - 1,271,000 - 1,271,000 Income (loss) from investments - 1,271,000 - 1,271,000 Income tax benefit - - 2,995,000 2,995,000 Net (loss) income $ (11,701,000 ) $ 1,271,000 $ 2,434,000 $ (7,996,000 ) |
RELATED PARTY AND OTHER FINAN_2
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
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, 2022 and June 30, 2021, respectively. SCHEDULE OF RELATED PARTY AND OTHER NOTES PAYABLE As of March 31, 2022 June 30, 2021 Related party note payable - InterGroup $ 14,200,000 $ 6,650,000 Related party note payable - Hilton 2,455,000 2,692,000 Related party note payable - Aimbridge 1,208,000 1,396,000 Other note payable - SBA Loan - 2,000,000 Total related party and other notes payable $ 17,863,000 $ 12,738,000 |
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 $ 142,000 2023 14,767,000 2024 567,000 2025 567,000 2026 567,000 Thereafter 1,253,000 Long term debt $ 17,863,000 |
ACCOUNTS PAYABLE AND OTHER LI_2
ACCOUNTS PAYABLE AND OTHER LIABILITIES (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCOUNTS PAYABLE AND OTHER LIABILITIES | The following summarizes the balances of accounts payable and other liabilities as of March 31, 2022 and June 30, 2021, respectively. SCHEDULE OF ACCOUNTS PAYABLE AND OTHER LIABILITIES As of March 31, 2022 June 30, 2021 Trade payable $ 3,128,000 $ 2,951,000 Payroll and related accruals 2,537,000 2,345,000 Withholding and other taxes payable 648,000 885,000 Advance deposits 492,000 161,000 Finance leases 298,000 664,000 Security deposit 52,000 52,000 Mortgage interest payable 407,000 582,000 Other payables 1,340,000 654,000 Total accounts payable and other liabilities $ 8,902,000 $ 8,294,000 |
SCHEDULE OF MINIMUM FUTURE LEASE PAYMENTS FOR ASSETS | SCHEDULE OF MINIMUM FUTURE LEASE PAYMENTS FOR ASSETS For the year ending June 30, 2022 $ 119,000 2023 188,000 Total minimum lease payments 307,000 Less interest on finance lease (9,000 ) Present value of future minimum lease payments $ 298,000 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Feb. 03, 2017 | Mar. 31, 2022 | Jun. 30, 2021 |
Managment agreement term | 10 years | ||
Option to extend | automatically renews for successive one (1) year periods, to not exceed five years in the aggregate, subject to certain conditions. | ||
Percentage of management fee payable | 1.70% | ||
Accounts payable and other accrued liabilities | $ 8,902,000 | $ 8,294,000 | |
Notes Payable, Related Parties | $ 3,663,000 | 4,088,000 | |
Other Investment Net [Member] | |||
Other Assets, Current | 20,000 | ||
Finance Lease [Member] | |||
Accounts payable and other accrued liabilities | 664,000 | ||
Accounts Payable and Other Liabilities - Justice [Member] | |||
Accounts payable and other accrued liabilities | 7,440,000 | ||
Related Party Notes Payable [Member] | |||
Notes Payable, Related Parties | 4,088,000 | ||
Related Party Notes Payable [Member] | |||
Notes Payable, Related Parties | 10,738,000 | ||
Inter Group [Member] | |||
Notes Payable, Related Parties | $ 6,650,000 | ||
Justice Investors Limited Partnership [Member] | |||
Limited partnership, ownership interest | 100.00% | ||
Santa Fe Financial Corporation [Member] | John V. Winfield [Member] | |||
Ownership percentage | 2.50% | ||
Santa Fe Financial Corporation [Member] | Inter Group Corporation [Member] | |||
Ownership percentage | 75.00% | ||
Santa Fe Financial Corporation [Member] | Inter Group Corporation [Member] | John V. Winfield [Member] | |||
Ownership percentage | 67.60% |
SCHEDULE OF FINANCIAL OBLIGATIO
SCHEDULE OF FINANCIAL OBLIGATIONS INCLUDING INTEREST PAYMENTS (Details) | Mar. 31, 2022USD ($) |
Debt Instrument [Line Items] | |
Long-term Debt | $ 139,003,000 |
2022 | 3,080,000 |
2023 | 22,663,000 |
2024 | 110,873,000 |
2025 | 567,000 |
2026 | 567,000 |
Thereafter | 1,253,000 |
Mortgage Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 109,520,000 |
2022 | 552,000 |
2023 | 1,729,000 |
2024 | 107,239,000 |
2025 | |
2026 | |
Thereafter | |
Related Party Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 17,863,000 |
2022 | 142,000 |
2023 | 14,767,000 |
2024 | 567,000 |
2025 | 567,000 |
2026 | 567,000 |
Thereafter | 1,253,000 |
Interest [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 11,620,000 |
2022 | 2,386,000 |
2023 | 6,167,000 |
2024 | 3,067,000 |
2025 | |
2026 | |
Thereafter |
LIQUIDITY (Details Narrative)
LIQUIDITY (Details Narrative) - USD ($) | Jul. 07, 2021 | Feb. 03, 2021 | Dec. 16, 2020 | Apr. 09, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Jun. 30, 2021 | Jan. 31, 2017 |
Net cash (used in) provided by operating activities | $ 5,309,000 | $ 11,008,000 | |||||||
Cash and cash equivalents | 1,687,000 | $ 2,310,000 | |||||||
Marketable securities, net | 843,000 | $ 1,821,000 | |||||||
Proceeds from related party debt | 7,550,000 | 2,950,000 | |||||||
Debt interest rate | 5.275% | ||||||||
Gain (loss) on extinguishment of debt | 2,000,000 | ||||||||
Maximum [Member] | |||||||||
Notes payable | $ 16,000,000 | ||||||||
CARES Act [Member] | CIBC Bank USA [Member] | |||||||||
Proceeds from loan | $ 4,719,000 | ||||||||
Debt interest rate | 1.00% | ||||||||
Second SBA Loan [Member] | CIBC Bank USA [Member] | |||||||||
Proceeds from loan | $ 2,000,000 | ||||||||
Debt interest rate | 1.00% | ||||||||
Debt Instrument, Maturity Date | Feb. 3, 2026 | ||||||||
InterGroup Corp [Member] | Loan Modification Agreement [Member] | |||||||||
Revolving line of credit amount | $ 10,000,000 | ||||||||
Line of Credit Facility, Expiration Date | Jul. 31, 2022 | Jul. 31, 2021 | |||||||
Notes payable | 14,200,000 | $ 11,350,000 | |||||||
Inter Group [Member] | Hotel Rooms [Member] | |||||||||
Proceeds from related party debt | $ 7,550,000 |
SCHEDULE OF REVENUE DISAGGREGAT
SCHEDULE OF REVENUE DISAGGREGATION BY REVENUE STREAMS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total hotel revenue | $ 6,632,000 | $ 2,902,000 | $ 19,785,000 | $ 9,436,000 |
Hotel Rooms [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total hotel revenue | 5,505,000 | 2,368,000 | 16,285,000 | 7,842,000 |
Food and Beverage [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total hotel revenue | 372,000 | 17,000 | 934,000 | 130,000 |
Garage [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total hotel revenue | 677,000 | 479,000 | 2,352,000 | 1,373,000 |
Other Operating Departments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total hotel revenue | $ 78,000 | $ 38,000 | $ 214,000 | $ 91,000 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Interest rate on receivables, description | the Hotel applies a 50% rate of default to receivables between 90 and 120 days and a 100% rate of default to receivables over 120 days. | |
Contract with customer, liability | $ 467,000 | $ 161,000 |
Advance deposit received for future reservations | $ 306,000 |
SCHEDULE OF INVESTMENT IN HOTEL
SCHEDULE OF INVESTMENT IN HOTEL, NET (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 91,831,000 | $ 90,137,000 |
Accumulated Depreciation | (60,217,000) | (58,624,000) |
Net Book Value | 31,614,000 | 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 | (843,000) | (606,000) |
Net Book Value | 962,000 | 1,199,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 32,630,000 | 31,014,000 |
Accumulated Depreciation | (28,351,000) | (27,956,000) |
Net Book Value | 4,279,000 | 3,058,000 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 56,272,000 | 56,194,000 |
Accumulated Depreciation | (31,023,000) | (30,062,000) |
Net Book Value | $ 25,249,000 | $ 26,132,000 |
INVESTMENT IN HOTEL, NET (Detai
INVESTMENT IN HOTEL, NET (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 1,593,000 | $ 1,566,000 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful lives | 3 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful lives | 7 years | |
Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful lives | 15 years | |
Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful lives | 39 years |
SCHEDULE OF CHANGES IN UNREALIZ
SCHEDULE OF CHANGES IN UNREALIZED GAINS AND LOSSES ON INVESTMENTS (Details) - Equity Securities [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Marketable Securities [Line Items] | ||
Cost | $ 1,565,000 | $ 4,987,000 |
Gross Unrealized Gain | 79,000 | 438,000 |
Gross Unrealized Loss | (232,000) | (1,889,000) |
Net Unrealized Loss | (153,000) | (1,451,000) |
Fair Value | $ 1,412,000 | $ 3,536,000 |
SCHEDULE OF NET LOSS ON MARKETA
SCHEDULE OF NET LOSS ON MARKETABLE SECURITIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Realized gain (loss) on marketable securities, net | $ 85,000 | $ 1,000 | $ (11,000) | |
Realized loss on marketable securities related to Comstock | (250,000) | (2,056,000) | (250,000) | |
Unrealized gain on marketable securities, net | 15,000 | (15,000) | 1,298,000 | 80,000 |
Unrealized gain on marketable securities related to Comstock | 1,533,000 | 1,565,000 | ||
Net (loss) gain on marketable securities | $ 100,000 | $ 1,268,000 | $ (757,000) | $ 1,384,000 |
INVESTMENT IN MARKETABLE SECU_3
INVESTMENT IN MARKETABLE SECURITIES, NET (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Securities Held For Over One Year [Member] | ||
Marketable Securities [Line Items] | ||
Unrealized losses related to securities | $ 2,000 | $ 1,873,000 |
Comstock Mining, Inc [Member] | ||
Marketable Securities [Line Items] | ||
Percentage of investment in marketable securities | 19.00% | |
Unrealized losses related to securities | $ 0 | $ 1,789,000 |
SCHEDULE OF FAIR VALUE, ASSETS
SCHEDULE OF FAIR VALUE, ASSETS MEASURED ON RECURRING BASIS (Details) - Fair Value, Recurring [Member] - Fair Value, Inputs, Level 1 [Member] - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | $ 1,412,000 | $ 3,536,000 |
Communication Services [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 1,101,000 | 1,334,000 |
REITs And Real Estate Companies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 184,000 | 438,000 |
Basic Materials [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 42,000 | 720,000 |
Financial Services [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 38,000 | |
Consumer Cyclical [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 32,000 | |
Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 6,000 | |
Health Care [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 5,000 | 141,000 |
Technology [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 4,000 | |
Industrials [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 653,000 | |
Energy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | $ 250,000 |
SCHEDULE OF FAIR VALUE, ASSET_2
SCHEDULE OF FAIR VALUE, ASSETS MEASURED ON NONRECURRING BASIS (Details) - USD ($) | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other non-marketable investments | $ 20,000 | ||
Net loss for the period | (20,000) | $ (38,000) | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other non-marketable investments | $ 20,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Other non-marketable investments | $ 0 | $ 29,000 |
SCHEDULE OF CASH, CASH EQUIVALE
SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 1,687,000 | $ 2,310,000 | ||
Restricted cash | 5,407,000 | 6,222,000 | ||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows | $ 7,094,000 | $ 8,532,000 | $ 9,083,000 | $ 16,385,000 |
SCHEDULE OF SEGMENT REPORTING I
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||||||
Revenues | $ 6,632,000 | $ 2,902,000 | $ 19,785,000 | $ 9,436,000 | |||||
Segment operating expenses | 6,826,000 | (4,191,000) | (20,248,000) | (14,717,000) | |||||
Segment income (loss) | (194,000) | (1,289,000) | (463,000) | (5,281,000) | |||||
Interest expense - mortgage | (1,624,000) | (1,675,000) | (4,939,000) | (5,076,000) | |||||
Interest expense - related party | (385,000) | (158,000) | (925,000) | (339,000) | |||||
Depreciation and amortization expense | (550,000) | (503,000) | (1,593,000) | (1,566,000) | |||||
Gain on extinguishment of debt | 2,000,000 | ||||||||
Income (loss) from investments | 79,000 | 1,219,000 | (842,000) | 1,271,000 | |||||
Income tax benefit | 1,045,000 | 669,000 | 2,198,000 | 2,995,000 | |||||
Net (loss) income | (1,629,000) | $ (960,000) | $ (1,975,000) | (1,737,000) | $ (3,244,000) | $ (3,015,000) | (4,564,000) | (7,996,000) | |
Total assets | 52,245,000 | 52,245,000 | $ 52,551,000 | ||||||
Hotel Operations [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 6,632,000 | 2,902,000 | 19,785,000 | 9,436,000 | |||||
Segment operating expenses | 6,544,000 | (3,990,000) | (19,356,000) | (14,156,000) | |||||
Segment income (loss) | 88,000 | (1,088,000) | 429,000 | (4,720,000) | |||||
Interest expense - mortgage | (1,624,000) | (1,675,000) | (4,939,000) | (5,076,000) | |||||
Interest expense - related party | (385,000) | (158,000) | (925,000) | (339,000) | |||||
Depreciation and amortization expense | (550,000) | (503,000) | (1,593,000) | (1,566,000) | |||||
Gain on extinguishment of debt | 2,000,000 | ||||||||
Income (loss) from investments | |||||||||
Income tax benefit | |||||||||
Net (loss) income | (2,471,000) | (3,424,000) | (5,028,000) | (11,701,000) | |||||
Total assets | 40,322,000 | 40,322,000 | |||||||
Investment Transactions [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | |||||||||
Segment operating expenses | |||||||||
Segment income (loss) | |||||||||
Interest expense - mortgage | |||||||||
Depreciation and amortization expense | |||||||||
Income (loss) from investments | 79,000 | 1,219,000 | (842,000) | 1,271,000 | |||||
Income tax benefit | |||||||||
Net (loss) income | 79,000 | 1,219,000 | (842,000) | 1,271,000 | |||||
Total assets | 1,412,000 | 1,412,000 | |||||||
Corporate Segment [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | |||||||||
Segment operating expenses | 282,000 | (201,000) | (892,000) | (561,000) | |||||
Segment income (loss) | (282,000) | (201,000) | (892,000) | (561,000) | |||||
Interest expense - mortgage | |||||||||
Depreciation and amortization expense | |||||||||
Income (loss) from investments | |||||||||
Income tax benefit | 1,045,000 | 669,000 | 2,198,000 | 2,995,000 | |||||
Net (loss) income | 763,000 | $ 468,000 | 1,306,000 | $ 2,434,000 | |||||
Total assets | $ 10,511,000 | $ 10,511,000 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 9 Months Ended |
Mar. 31, 2022Segments | |
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 ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Related Party Transaction [Line Items] | ||
Total related party and other notes payable | $ 17,863,000 | $ 12,738,000 |
Note payable - InterGroup [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party and other notes payable | 14,200,000 | 6,650,000 |
Note payable - Hilton [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party and other notes payable | 2,455,000 | 2,692,000 |
Note payable - Aimbridge [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party and other notes payable | 1,208,000 | 1,396,000 |
SBA Loan [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party and other notes payable | $ 2,000,000 |
SCHEDULE OF FUTURE MINIMUM PRIN
SCHEDULE OF FUTURE MINIMUM PRINCIPAL PAYMENTS (Details) | Mar. 31, 2022USD ($) |
Related Party Transaction [Line Items] | |
2022 | $ 22,663,000 |
2023 | 110,873,000 |
2024 | 567,000 |
2025 | 567,000 |
Long term debt | 139,003,000 |
Related Party and Other Financing Transaction [Member] | |
Related Party Transaction [Line Items] | |
2022 | 142,000 |
2023 | 14,767,000 |
2024 | 567,000 |
2025 | 567,000 |
2026 | 567,000 |
Thereafter | 1,253,000 |
Long term debt | $ 17,863,000 |
RELATED PARTY AND OTHER FINAN_3
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Details Narrative) - USD ($) | Feb. 03, 2021 | Jul. 31, 2019 | Feb. 03, 2017 | Jul. 02, 2014 | Feb. 28, 2017 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 16, 2020 | May 11, 2017 | Jan. 31, 2017 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 5.275% | ||||||||||||
Debt instrument terms | 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 | |||||||||||
Key money incentive advance to related party | $ 2,000,000 | ||||||||||||
Debt Instrument amortization period | 8 years | ||||||||||||
Gain on debt extinguishment | $ 2,000,000 | ||||||||||||
Accounts payable to related party | 4,263,000 | $ 3,193,000 | |||||||||||
Outstanding loan principal amount | 89,520,000 | 90,745,000 | |||||||||||
Interest Free Development Incentive Note [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Notes reduction | $ 316,000 | ||||||||||||
Debt instrument, payment terms | through 2030 | ||||||||||||
Prior Mortgage [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Accounts payable to related party | $ 42,940,000 | ||||||||||||
Mortgage Loan [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Accounts payable to related party | $ 97,000,000 | 97,000,000 | |||||||||||
Mezzanine Loan [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Accounts payable to related party | $ 20,000,000 | $ 20,000,000 | |||||||||||
New Mezzanine Loan [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 7.25% | ||||||||||||
Debt instrument,maturity date | Jan. 1, 2024 | ||||||||||||
Loan Modification Agreement [Member] | InterGroup Corp [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Working capital | $ 16,000,000 | ||||||||||||
Current loan balance | $ 14,200,000 | $ 11,350,000 | |||||||||||
Justice Investors Limited Partnership and Intergroup [Member] | Loan Modification Agreement [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Debt instrument, face amount | 11,350,000 | $ 10,000,000 | |||||||||||
Current loan balance | 14,200,000 | 6,650,000 | |||||||||||
Amortization of financing costs | $ 13,000 | $ 0 | |||||||||||
CIBC Bank USA [Member] | Second SBA Loan [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||||||||||
Proceeds from Loans | $ 2,000,000 | ||||||||||||
Debt instrument,maturity date | Feb. 3, 2026 | ||||||||||||
Cred Reit Holdco LLC [Member] | New Mezzanine Loan [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Debt instrument, face amount | $ 20,000,000 | ||||||||||||
Debt instrument, interest rate, stated percentage | 9.75% | ||||||||||||
Unsecured Debt [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Debt instrument, face amount | $ 4,250,000 | ||||||||||||
Debt instrument, interest rate, stated percentage | 12.00% | ||||||||||||
Debt instrument terms | 2 years | ||||||||||||
Percentage of loan fee received | 3.00% | ||||||||||||
Debt instrument, maturity date, description | The loan was extended to July 31, 2022 |
SCHEDULE OF ACCOUNTS PAYABLE AN
SCHEDULE OF ACCOUNTS PAYABLE AND OTHER LIABILITIES (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Payables and Accruals [Abstract] | ||
Trade payable | $ 3,128,000 | $ 2,951,000 |
Payroll and related accruals | 2,537,000 | 2,345,000 |
Withholding and other taxes payable | 648,000 | 885,000 |
Advance deposits | 492,000 | 161,000 |
Finance leases | 298,000 | 664,000 |
Security deposit | 52,000 | 52,000 |
Mortgage interest payable | 407,000 | 582,000 |
Other payables | 1,340,000 | 654,000 |
Total accounts payable and other liabilities | $ 8,902,000 | $ 8,294,000 |
SCHEDULE OF MINIMUM FUTURE LEAS
SCHEDULE OF MINIMUM FUTURE LEASE PAYMENTS FOR ASSETS (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Payables and Accruals [Abstract] | ||
2022 | $ 119,000 | |
2023 | 188,000 | |
Total minimum lease payments | 307,000 | |
Less interest on finance lease | (9,000) | |
Present value of future minimum lease payments | $ 298,000 | $ 664,000 |
ACCOUNTS PAYABLE AND OTHER LI_3
ACCOUNTS PAYABLE AND OTHER LIABILITIES (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Financial lease obligations | $ 298,000 | $ 664,000 |
Finance lease term | through 2023 | |
Minimum [Member] | ||
Finance lease discount rate | 4.62% | |
Maximum [Member] | ||
Finance lease discount rate | 6.25% |