Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2024 | May 14, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 | |
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, 2024 | Jun. 30, 2023 |
ASSETS | ||
Investment in hotel, net | $ 34,509,000 | $ 34,381,000 |
Investment in marketable securities | 313,000 | 359,000 |
Cash and cash equivalents | 3,572,000 | 2,295,000 |
Restricted cash | 1,637,000 | 2,911,000 |
Accounts receivable, net | 459,000 | 419,000 |
Other assets, net | 1,165,000 | 735,000 |
Total assets | 41,655,000 | 41,100,000 |
Liabilities: | ||
Accounts payable and other liabilities | 13,274,000 | 11,681,000 |
Other notes payable | 2,529,000 | 2,954,000 |
Mortgage notes payable, net | 106,045,000 | 107,117,000 |
Total liabilities | 152,287,000 | 144,735,000 |
Shareholders’ deficit: | ||
Common stock, no par value: Authorized shares - 750,000; 734,187 shares issued and outstanding shares as of March 31, 2024 and June 30, 2023, respectively | 2,092,000 | 2,092,000 |
Accumulated deficit | (112,724,000) | (105,727,000) |
Total shareholders’ deficit | (110,632,000) | (103,635,000) |
Total liabilities and shareholders’ deficit | 41,655,000 | 41,100,000 |
Hotel [Member] | ||
Liabilities: | ||
Accounts payable and other liabilities | 13,151,000 | 11,615,000 |
Nonrelated Party [Member] | ||
Liabilities: | ||
Accounts payable and other liabilities | 123,000 | 66,000 |
Related Party [Member] | ||
Liabilities: | ||
Accounts payable to related party | 10,339,000 | 7,283,000 |
Related party notes payable | $ 20,100,000 | $ 15,700,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Jun. 30, 2023 |
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, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Revenue - Hotel | $ 10,758,000 | $ 10,430,000 | $ 32,076,000 | $ 32,632,000 |
Costs and operating expenses | ||||
Hotel operating expenses | (9,239,000) | (8,413,000) | (27,925,000) | (26,445,000) |
Hotel depreciation and amortization expense | (860,000) | (693,000) | (2,522,000) | (1,955,000) |
General and administrative expense | (301,000) | (496,000) | (1,054,000) | (1,321,000) |
Total costs and operating expenses | (10,400,000) | (9,602,000) | (31,501,000) | (29,721,000) |
Income from operations | 358,000 | 828,000 | 575,000 | 2,911,000 |
Other income (expense) | ||||
Interest expense - mortgage | (2,591,000) | (1,584,000) | (5,796,000) | (4,871,000) |
Net (loss) gain on marketable securities | (12,000) | (5,000) | (46,000) | 92,000 |
Dividend and interest income | 4,000 | 1,000 | 10,000 | 33,000 |
Trading and margin interest expense | (40,000) | (89,000) | (122,000) | (204,000) |
Total other expense, net | (3,229,000) | (2,097,000) | (7,571,000) | (6,229,000) |
Loss before income taxes | (2,871,000) | (1,269,000) | (6,996,000) | (3,318,000) |
Income tax (expense) benefit | 212,000 | (1,000) | 932,000 | |
Net Loss | $ (2,871,000) | $ (1,057,000) | $ (6,997,000) | $ (2,386,000) |
Basic net loss per share | $ (3.91) | $ (1.44) | $ (9.53) | $ (3.25) |
Diluted net loss per share | $ (3.91) | $ (1.44) | $ (9.53) | $ (3.25) |
Weighted average number of common shares outstanding - Basic | 734,187 | 734,187 | 734,187 | 734,187 |
Weighted average number of common shares outstanding - Diluted | 734,187 | 734,187 | 734,187 | 734,187 |
Related Party [Member] | ||||
Other income (expense) | ||||
Interest expense - related party | $ (590,000) | $ (420,000) | $ (1,617,000) | $ (1,279,000) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance at Jun. 30, 2022 | $ 2,092,000 | $ (92,524,000) | $ (90,432,000) |
Balance, shares at Jun. 30, 2022 | 734,187 | ||
Net loss | (9,000) | (9,000) | |
Balance at Sep. 30, 2022 | $ 2,092,000 | (92,533,000) | (90,441,000) |
Balance, shares at Sep. 30, 2022 | 734,187 | ||
Balance at Jun. 30, 2022 | $ 2,092,000 | (92,524,000) | (90,432,000) |
Balance, shares at Jun. 30, 2022 | 734,187 | ||
Net loss | (2,386,000) | ||
Balance at Mar. 31, 2023 | $ 2,092,000 | (94,910,000) | (92,818,000) |
Balance, shares at Mar. 31, 2023 | 734,187 | ||
Balance at Sep. 30, 2022 | $ 2,092,000 | (92,533,000) | (90,441,000) |
Balance, shares at Sep. 30, 2022 | 734,187 | ||
Net loss | (1,320,000) | (1,320,000) | |
Balance at Dec. 31, 2022 | $ 2,092,000 | (93,853,000) | (91,761,000) |
Balance, shares at Dec. 31, 2022 | 734,187 | ||
Net loss | (1,057,000) | (1,057,000) | |
Balance at Mar. 31, 2023 | $ 2,092,000 | (94,910,000) | (92,818,000) |
Balance, shares at Mar. 31, 2023 | 734,187 | ||
Balance at Jun. 30, 2023 | $ 2,092,000 | (105,727,000) | (103,635,000) |
Balance, shares at Jun. 30, 2023 | 734,187 | ||
Net loss | (1,560,000) | (1,560,000) | |
Balance at Sep. 30, 2023 | $ 2,092,000 | (107,287,000) | (105,195,000) |
Balance, shares at Sep. 30, 2023 | 734,187 | ||
Balance at Jun. 30, 2023 | $ 2,092,000 | (105,727,000) | (103,635,000) |
Balance, shares at Jun. 30, 2023 | 734,187 | ||
Net loss | (6,997,000) | ||
Balance at Mar. 31, 2024 | $ 2,092,000 | (112,724,000) | (110,632,000) |
Balance, shares at Mar. 31, 2024 | 734,187 | ||
Balance at Sep. 30, 2023 | $ 2,092,000 | (107,287,000) | (105,195,000) |
Balance, shares at Sep. 30, 2023 | 734,187 | ||
Net loss | (2,566,000) | (2,566,000) | |
Balance at Dec. 31, 2023 | $ 2,092,000 | (109,853,000) | (107,761,000) |
Balance, shares at Dec. 31, 2023 | 734,187 | ||
Net loss | (2,871,000) | (2,871,000) | |
Balance at Mar. 31, 2024 | $ 2,092,000 | $ (112,724,000) | $ (110,632,000) |
Balance, shares at Mar. 31, 2024 | 734,187 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (6,997,000) | $ (2,386,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Net unrealized loss (gain) on marketable securities | 46,000 | (229,000) |
Depreciation and amortization | 2,522,000 | 1,955,000 |
Amortization of loan costs | 122,000 | 183,000 |
Amortization of other notes payable | (425,000) | (425,000) |
Changes in operating assets and liabilities: | ||
Investment in marketable securities | 370,000 | |
Accounts receivable | (40,000) | 39,000 |
Other assets | (430,000) | (1,548,000) |
Accounts payable and other liabilities - Hotel | 1,536,000 | 2,014,000 |
Accounts payable and other liabilities | 57,000 | |
Accounts payable related party | 3,056,000 | 1,696,000 |
Due to securities broker | (130,000) | |
Net cash (used in) provided by operating activities | (553,000) | 1,539,000 |
Cash flows from investing activities: | ||
Payments for hotel furniture, equipment and building improvements | (2,650,000) | (4,131,000) |
Net cash used in investing activities | (2,650,000) | (4,131,000) |
Cash flows from financing activities: | ||
Proceeds from related party note payable | 4,400,000 | |
Payments of mortgage, finance leases and other notes payable | (1,194,000) | (1,589,000) |
Net cash provided by (used in) financing activities | 3,206,000 | (1,589,000) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 3,000 | (4,181,000) |
Cash, cash equivalents, and restricted cash at the beginning of the period | 5,206,000 | 8,888,000 |
Cash, cash equivalents, and restricted cash at the end of the period | 5,209,000 | 4,707,000 |
Supplemental information: | ||
Interest paid | 3,718,000 | 4,249,000 |
Taxes paid | $ 165,000 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2024 | |
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, 2023. The June 30, 2023 condensed consolidated balance sheet was derived from the consolidated balance sheet as included in the Company’s Form 10-K for the year ended June 30, 2023. The unaudited condensed consolidated financial statements include the accounts of our wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the nine months ended March 31, 2024 are not necessarily indicative of results to be expected for the full fiscal year ending June 30, 2024. Portsmouth’s primary business was conducted through its general and limited partnership interest in Justice Investors Limited Partnership, a California limited partnership (“Justice” or the “Partnership”). Effective July 15, 2021, Portsmouth completed the purchase of 100 0.7 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 Portsmouth, 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 commencing on the February 3, 2017 date and automatically renews for successive one (1) year periods, not to exceed five years in the aggregate, subject to certain conditions 1.70 10 As of March 31, 2024, The InterGroup Corporation (“InterGroup”), a public company, owns approximately 75.7 2.5 68.6 There have been no material changes to the Company’s significant accounting policies during the nine months ended March 31, 2024. Please refer to the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for a summary of the significant accounting policies. Recently Issued and Adopted Accounting Pronouncements As of March 31, 2024, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on the Company’s consolidated financial statements. Going Concern The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As discussed in Note 9 – Related Party and Other Financing Transactions, as of March 31, 2024, the outstanding balance consists of a senior mortgage loan and mezzanine loan totaling $ 106,045,000 112,724,000 64,100,000 Due to these factors and the uncertainty around the Company’s ability to successfully refinance the debt on favorable terms in the current lending environment gives rise to substantial doubt about the Company’s ability to continue as a going concern for one year after the financial statement issuance date. On January 4, 2024, the Company was made aware of a notice of default (the “Notice”) issued by its senior loan special servicer LNR Partners, LLC to Justice Operating Company, LLC which is the wholly owned subsidiary of Portsmouth. The Notice states that the lender has rights as a result of such defaults, including, but not limited to, acceleration of the loans, foreclosure on collateral and other rights and remedies under the loan documents and otherwise available under the law. On January 10, 2024, the Company filed the required Form 8-K with the Securities and Exchange Commission. During the entire life of the outstanding debt, the Company has made all mortgage payments timely as of the date of maturity and as of March 31, 2024, there were no delinquent amounts due to the senior or mezzanine lenders. On April 29, 2024, the Company entered into forbearance agreements with its senior and mezzanine lenders which establishes, among other customary terms, the new maturity date of January 1, 2025 (see Note 11 - Subsequent Events). While the Company successfully entered into the aforementioned forbearance agreements, we continue our efforts to place a longer term refinancing solution to its current senior mortgage and mezzanine debt with potential lenders. As such, there can be no assurance that the Company will be able to obtain additional liquidity when needed or under acceptable terms, if at all. In 2018-2019 the Company completed major improvements to its Hotel, such as the installation of a state-of-the-art high-speed internet Cisco Meraki system and updated all ethernet wiring with Cat6A and added the best available fiber to each guest room and common areas, added 55” and 65” Smart 4-K Samsung Televisions to all rooms and common areas, installed a new window-washing system and equipment, updated all computers and servers, and others. During 2021 and first part of calendar 2022, we took advantage of the slow periods to make certain capital improvements including resurfacing half of the hotel bathtubs that needed repair, refreshed meeting space and lobby paint and vinyl, replaced all bed frames and socks, and completed the carpet and wall covering corridor installation. In November 2022, we began our guestroom renovation and had completed approximately 402 guestrooms as of March 31, 2024. Hotel improvements are ongoing to remain competitive in this challenging San Francisco market and we anticipate completing the guestroom renovations by mid-June 2024. Once the Company completes its full renovation, management anticipates its high occupancy to continue and its average daily rates to increase as a result of the updated product. Additionally, the Company anticipates that total revenues will also increase as the hotel has had at least three levels or approximately 75 guest rooms out of service since November 2022 in order to be renovated. While we have no assurances that the financial markets will improve, we are cautiously optimistic about our ability to improve our revenues upon the completion of our renovation and the recovery of the San Francisco market. Additionally, there are major changes in the political landscape in San Francisco and a Mayor election this year that we believe could improve the overall condition of the City of San Francisco as a whole. The financial statements do not include any adjustments to the carrying amounts of assets, liabilities, and reported expenses that may be necessary if the Company were unable to continue as a going concern. |
LIQUIDITY
LIQUIDITY | 9 Months Ended |
Mar. 31, 2024 | |
Liquidity | |
LIQUIDITY | NOTE 2 - LIQUIDITY Historically, our cash flows have been primarily generated from our Hotel operations. However, the current state of affairs of the City of San Francisco, its political challenges as well as the way its local government’s policies with regard to safety, drugs abuse, homelessness, crime, etc., have caused the City of San Francisco to be one of the slowest cities in the country to fully recover from the COVID-19 pandemic. Additionally, since San Francisco is a top-heavy tech company city, the “remote work” initiatives have caused a slowdown in business travel and in person meetings. Prior to the COVID-19 pandemic, our Hotel enjoyed most of its revenues from business travel, conventions, self-contained groups, etc., and post pandemic, most revenues are generated from leisure travel which is generally at a lower guest room rate. For the nine months ended March 31, 2024, our net cash used in operating activities was $ 553,000 2,650,000 The Company had cash and cash equivalents of $ 3,572,000 2,295,000 1,637,000 2,911,000 313,000 359,000 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, 2023 10,000,000 11,350,000 16,000,000 July 31, 2025 20,000,000 15,700,000 zero 0.5 10,000,000 30,000,000 4,400,000 20,100,000 The Company’s known short-term liquidity requirements primarily consist of funds necessary to pay for operating and other expenditures, including management and franchise fees, corporate expenses, payroll and related costs, taxes, interest and principal payments on our outstanding indebtedness, and repairs and maintenance 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. The objectives of our cash management policy are to increase existing leverage levels and the availability of liquidity, while minimizing operational costs. However, there can be no guarantee that management will be successful with its plan. The following table provides a summary as of March 31, 2024, 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 2024 2025 2026 2027 2028 Thereafter Mortgage notes payable $ 106,045,000 - $ 106,045,000 $ - $ - $ - $ - Hilton/Aimbridge other notes payable 2,529,000 142,000 567,000 567,000 463,000 317,000 473,000 Related party notes payable 20,100,000 - 20,100,000 - - - - Interest 6,277,000 3,715,000 2,562,000 - - - - Total $ 134,951,000 $ 3,857,000 $ 129,274,000 $ 567,000 $ 463,000 $ 317,000 $ 473,000 |
REVENUE
REVENUE | 9 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 3 – REVENUE The following table presents our revenues disaggregated by revenue streams. SCHEDULE OF REVENUE DISAGGREGATION BY REVENUE STREAMS For the three months ended March 31, 2024 2023 Hotel revenues: Hotel rooms $ 9,018,000 $ 8,968,000 Food and beverage 924,000 744,000 Garage 710,000 609,000 Other operating departments 106,000 109,000 Total hotel revenue $ 10,758,000 $ 10,430,000 For the nine months ended March 31, 2024 2023 Hotel revenues: Hotel rooms $ 26,982,000 $ 28,020,000 Food and beverage 2,523,000 1,905,000 Garage 2,243,000 2,148,000 Other operating departments 328,000 559,000 Total hotel revenue $ 32,076,000 $ 32,632,000 Performance obligations We identified the following performance obligations for which revenue is recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: ● Cancelable room reservations or ancillary services ● Non-cancelable room reservations and banquet or conference reservations ● Other ancillary goods and services ● Components of package reservations Hotel revenue primarily consists of hotel room rentals, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking). Revenue is recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are provided. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. We do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the nature of our business, our revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at our hotel are refunded to hotel guests if the guest cancels within the specified time 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 The Company does not have any material contract assets as of March 31, 2024 and June 30, 2023, other than trade and other receivables, net on our condensed consolidated balance sheets. Our receivables are primarily the result of contracts with customers, that were entered into within the past 12 months, which are reduced by a reserve for estimated credit losses that reflects our estimate of amounts that will not be collected and amount to $ 0 1,000 Portsmouth records 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 consolidated balance sheets and had a balance of $ 290,000 290,000 291,000 493,000 493,000 364,000 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, 2024 | |
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, NET Accumulated Net Book March 31, 2024 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (1,468,000 ) 337,000 Furniture and equipment 39,297,000 (30,939,000 ) 8,358,000 Building and improvements 58,353,000 (33,663,000 ) 24,690,000 Investment in Hotel, net $ 100,579,000 $ (66,070,000 ) $ 34,509,000 Accumulated Net Book June 30, 2023 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (1,239,000 ) 566,000 Furniture and equipment 38,727,000 (29,682,000 ) 9,045,000 Building and improvements 56,273,000 (32,627,000 ) 23,646,000 Investment in Hotel, net $ 97,929,000 $ (63,548,000 ) $ 34,381,000 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 2,522,000 1,955,000 |
INVESTMENT IN MARKETABLE SECURI
INVESTMENT IN MARKETABLE SECURITIES, NET | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024, and June 30, 2023, 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 TRADING SECURITIES Gross Gross Net Investment Cost Unrealized Gain Unrealized Loss Unrealized Gain Fair Value As of March 31, 2024 Corporate Equities $ 274,000 $ 85,000 $ (46,000 ) $ 39,000 $ 313,000 As of June 30, 2023 Corporate Equities $ 274,000 $ 133,000 $ (48,000 ) $ 85,000 $ 359,000 Net gain (loss) 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, 2024 and 2023, respectively: SCHEDULE OF NET GAINS (LOSSES) ON MARKETABLE SECURITIES COMPRISING OF REALIZED AND UNREALIZED GAINS (LOSSES) For the three months ended March 31, 2024 2023 Realized loss on marketable securities, net $ - $ - Unrealized loss on marketable securities, net $ (12,000 ) $ (5,000 ) Net loss on marketable securities $ (12,000 ) $ (5,000 ) For the nine months ended March 31, 2024 2023 Realized loss on marketable securities, net $ - $ (137,000 ) Unrealized (loss) gain on marketable securities, net (46,000 ) 229,000 Net (loss) gain on marketable securities $ (46,000 ) $ 92,000 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 June 30, 2023 As of Total - Level 1 Total - Level 1 Assets: Investment in marketable securities: REITs and real estate companies $ 303,000 $ 350,000 Basic materials 10,000 9,000 Investment in marketable securities $ 313,000 $ 359,000 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 | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 June 30, 2023 Cash and cash equivalents $ 3,572,000 $ 2,295,000 Restricted cash 1,637,000 2,911,000 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 5,209,000 $ 5,206,000 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, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 8 - SEGMENT INFORMATION The Company operates in two Information below represents reporting segments for the three and nine months ended March 31, 2024 and 2023, respectively. Operating income from Hotel operations consists of the operation of the hotel and operation of the garage. Loss from investment transactions consist of net investment gain (loss), dividend and interest income and trading and margin interest expense. The other segment consists of corporate general and administrative expenses and the income tax benefit for the entire Company. SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT As of and for the three months Hotel Investment ended March 31, 2024 Operations Transactions Corporate Total Revenues $ 10,758,000 $ - $ - $ 10,758,000 Segment operating expenses (9,239,000 ) - (301,000 ) (9,540,000 ) Segment income (loss) 1,519,000 - (301,000 ) 1,218,000 Interest expense - mortgage (2,591,000 ) - - (2,591,000 ) Interest expense - related party (590,000 ) - - (590,000 ) Depreciation and amortization expense (860,000 ) - - (860,000 ) Loss from investments - (48,000 ) - (48,000 ) Income tax benefit Net loss $ (2,522,000 ) $ (48,000 ) $ (301,000 ) $ (2,871,000 ) Total assets $ 40,942,000 $ 313,000 $ 400,000 $ 41,655,000 As of and for the three months Hotel Investment ended March 31, 2023 Operations Transactions Corporate Total Revenues $ 10,430,000 $ - $ - $ 10,430,000 Segment operating expenses (8,413,000 ) - (496,000 ) (8,909,000 ) Segment icome (loss) 2,017,000 - (496,000 ) 1,521,000 Interest expense - mortgage (1,584,000 ) - - (1,584,000 ) Interest expense - related party (420,000 ) - - (420,000 ) Depreciation and amortization expense (693,000 ) - - (693,000 ) Loss from investments - (93,000 ) - (93,000 ) Income tax benefit - - 212,000 212,000 Net loss $ (680,000 ) $ (93,000 ) $ (284,000 ) $ (1,057,000 ) Total assets $ 39,682,000 $ 400,000 $ 9,080,000 $ 49,162,000 As of and for the nine months Hotel Investment ended March 31, 2024 Operations Transactions Corporate Total Revenues $ 32,076,000 $ - $ - $ 32,076,000 Segment operating expenses (27,925,000 ) - (1,054,000 ) (28,979,000 ) Segment income (loss) 4,151,000 - (1,054,000 ) 3,097,000 Interest expense - mortgage (5,796,000 ) - - (5,796,000 ) Interest expense - related party (1,617,000 ) - - (1,617,000 ) Depreciation and amortization expense (2,522,000 ) - - (2,522,000 ) Loss from investments - (158,000 ) - (158,000 ) Income tax expense - - (1,000 ) (1,000 ) Net loss $ (5,784,000 ) $ (158,000 ) $ (1,055,000 ) $ (6,997,000 ) Total assets $ 40,942,000 $ 313,000 $ 400,000 $ 41,655,000 As of and for the nine months Hotel Investment ended March 31, 2023 Operations Transactions Corporate Total Revenues $ 32,632,000 $ - $ - $ 32,632,000 Segment operating expenses (26,445,000 ) - (1,321,000 ) (27,766,000 ) Segment income (loss) 6,187,000 - (1,321,000 ) 4,866,000 Interest expense - mortgage (4,871,000 ) - - (4,871,000 ) Interest expense - related party (1,279,000 ) - - (1,279,000 ) Depreciation and amortization expense (1,955,000 ) - - (1,955,000 ) Loss from investments - (79,000 ) - (79,000 ) Income tax benefit - - 932,000 932,000 Net loss $ (1,918,000 ) $ (79,000 ) $ (389,000 ) $ (2,386,000 ) Total assets $ 39,682,000 $ 400,000 $ 9,080,000 $ 49,162,000 |
RELATED PARTY AND OTHER FINANCI
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 and June 30, 2023, respectively: SCHEDULE OF RELATED PARTY AND OTHER NOTES PAYABLE As of March 31, 2024 June 30, 2023 Note payable - InterGroup $ 20,100,000 $ 15,700,000 Note payable - Hilton 1,820,000 2,058,000 Note payable - Aimbridge 709,000 896,000 Total related party and other notes payable $ 22,629,000 $ 18,654,000 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, 2023 10,000,000 11,350,000 16,000,000 July 31, 2025 20,000,000 15,700,000 0.5 10,000,000 30,000,000 4,400,000 20,100,000 Note payable to Hilton (Franchisor) is a self-exhausting, interest free development incentive note which is reduced by approximately $ 317,000 through 2030 On February 1, 2017, Operating entered into an HMA with Ambridge to manage the Hotel with an effective takeover date of February 3, 2017. The term of the management agreement is for an initial period of 10 2,000,000 8 709,000 896,000 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, 2024 (3 months) $ 142,000 2025 20,667,000 2026 567,000 2027 463,000 2028 317,000 Thereafter 473,000 Long term debt $ 22,629,000 As of March 31, 2024 and June 30, 2023, the Company had accounts payable to related party of $ 10,339,000 7,283,000 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 86,045,000 87,240,000 The mezzanine loan is secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The mezzanine interest only loan had an interest rate of 9.75 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, Yvonne Murphy, and Steve Grunwald. All the Company’s directors also serve as directors of InterGroup. The Company’s director and Chairman of the Audit Committee, William J. Nance. 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 until 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 Chief Operating Officer 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, 2024 | |
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, 2024 and June 30, 2023, respectively. SCHEDULE OF ACCOUNTS PAYABLE AND OTHER LIABILITIES As of March 31, 2024 June 30, 2023 Trade payable $ 2,200,000 $ 1,235,000 Advance deposits 319,000 301,000 Property tax payable 476,000 59,000 Payroll and related accruals 3,280,000 2,863,000 Management fees payable 2,458,000 1,683,000 Mortgage interest payable 1,956,000 1,580,000 Withholding and other taxes payable 1,265,000 1,204,000 Security deposit - 52,000 Franchise fees 1,108,000 2,510,000 Other payables 212,000 194,000 Total accounts payable and other liabilities $ 13,274,000 $ 11,681,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS On April 29, 2024, U.S. Bank National Association and other lenders (“Lender”) entered into a Forbearance Agreement (the “Mortgage Loan Forbearance Agreement”), all capitalized terms are used in this paragraph as defined in this agreement with Operating. Assuming no Termination Event occurs, Lender agrees to not take any action with respect to the loan facility set forth therein prior to January 1, 2025. During the Forbearance Period, Operating shall make all regularly scheduled payments to the Lender. The Mortgage Loan Forbearance Agreement also contains amended terms as to financial covenants and a 10 8,589,706.44 4 1 858,971 On April 29, 2024, CRED REIT HOLDCO LLC (“Mezz Lender”) entered into a Forbearance Agreement (the “Mezz Forbearance Agreement”), all capitalized terms in this paragraph are used as defined in the Mezz Forbearance Agreement) with Mezzanine, an indirect subsidiary of the Company. Assuming no Termination Event occurs, Mezz Lender agrees to not take any action with respect to the loan facility set forth therein prior to January 1, 2025. The Mezz Lender also has advanced $ 4.5 10 4 1 245,000 Both forbearance agreements also contain customary and usual terms, events of default, transaction fees, and representations and warranties and covenants for like transactions. The Company will endeavor to refinance the aforementioned loans prior to their new maturity. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements As of March 31, 2024, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on the Company’s consolidated financial statements. |
Going Concern | Going Concern The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As discussed in Note 9 – Related Party and Other Financing Transactions, as of March 31, 2024, the outstanding balance consists of a senior mortgage loan and mezzanine loan totaling $ 106,045,000 112,724,000 64,100,000 Due to these factors and the uncertainty around the Company’s ability to successfully refinance the debt on favorable terms in the current lending environment gives rise to substantial doubt about the Company’s ability to continue as a going concern for one year after the financial statement issuance date. On January 4, 2024, the Company was made aware of a notice of default (the “Notice”) issued by its senior loan special servicer LNR Partners, LLC to Justice Operating Company, LLC which is the wholly owned subsidiary of Portsmouth. The Notice states that the lender has rights as a result of such defaults, including, but not limited to, acceleration of the loans, foreclosure on collateral and other rights and remedies under the loan documents and otherwise available under the law. On January 10, 2024, the Company filed the required Form 8-K with the Securities and Exchange Commission. During the entire life of the outstanding debt, the Company has made all mortgage payments timely as of the date of maturity and as of March 31, 2024, there were no delinquent amounts due to the senior or mezzanine lenders. On April 29, 2024, the Company entered into forbearance agreements with its senior and mezzanine lenders which establishes, among other customary terms, the new maturity date of January 1, 2025 (see Note 11 - Subsequent Events). While the Company successfully entered into the aforementioned forbearance agreements, we continue our efforts to place a longer term refinancing solution to its current senior mortgage and mezzanine debt with potential lenders. As such, there can be no assurance that the Company will be able to obtain additional liquidity when needed or under acceptable terms, if at all. In 2018-2019 the Company completed major improvements to its Hotel, such as the installation of a state-of-the-art high-speed internet Cisco Meraki system and updated all ethernet wiring with Cat6A and added the best available fiber to each guest room and common areas, added 55” and 65” Smart 4-K Samsung Televisions to all rooms and common areas, installed a new window-washing system and equipment, updated all computers and servers, and others. During 2021 and first part of calendar 2022, we took advantage of the slow periods to make certain capital improvements including resurfacing half of the hotel bathtubs that needed repair, refreshed meeting space and lobby paint and vinyl, replaced all bed frames and socks, and completed the carpet and wall covering corridor installation. In November 2022, we began our guestroom renovation and had completed approximately 402 guestrooms as of March 31, 2024. Hotel improvements are ongoing to remain competitive in this challenging San Francisco market and we anticipate completing the guestroom renovations by mid-June 2024. Once the Company completes its full renovation, management anticipates its high occupancy to continue and its average daily rates to increase as a result of the updated product. Additionally, the Company anticipates that total revenues will also increase as the hotel has had at least three levels or approximately 75 guest rooms out of service since November 2022 in order to be renovated. While we have no assurances that the financial markets will improve, we are cautiously optimistic about our ability to improve our revenues upon the completion of our renovation and the recovery of the San Francisco market. Additionally, there are major changes in the political landscape in San Francisco and a Mayor election this year that we believe could improve the overall condition of the City of San Francisco as a whole. The financial statements do not include any adjustments to the carrying amounts of assets, liabilities, and reported expenses that may be necessary if the Company were unable to continue as a going concern. |
LIQUIDITY (Tables)
LIQUIDITY (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Liquidity | |
SCHEDULE OF FINANCIAL OBLIGATIONS INCLUDING INTEREST PAYMENTS | The following table provides a summary as of March 31, 2024, 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 2024 2025 2026 2027 2028 Thereafter Mortgage notes payable $ 106,045,000 - $ 106,045,000 $ - $ - $ - $ - Hilton/Aimbridge other notes payable 2,529,000 142,000 567,000 567,000 463,000 317,000 473,000 Related party notes payable 20,100,000 - 20,100,000 - - - - Interest 6,277,000 3,715,000 2,562,000 - - - - Total $ 134,951,000 $ 3,857,000 $ 129,274,000 $ 567,000 $ 463,000 $ 317,000 $ 473,000 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF REVENUE DISAGGREGATION BY REVENUE STREAMS | The following table presents our revenues disaggregated by revenue streams. SCHEDULE OF REVENUE DISAGGREGATION BY REVENUE STREAMS For the three months ended March 31, 2024 2023 Hotel revenues: Hotel rooms $ 9,018,000 $ 8,968,000 Food and beverage 924,000 744,000 Garage 710,000 609,000 Other operating departments 106,000 109,000 Total hotel revenue $ 10,758,000 $ 10,430,000 For the nine months ended March 31, 2024 2023 Hotel revenues: Hotel rooms $ 26,982,000 $ 28,020,000 Food and beverage 2,523,000 1,905,000 Garage 2,243,000 2,148,000 Other operating departments 328,000 559,000 Total hotel revenue $ 32,076,000 $ 32,632,000 |
INVESTMENT IN HOTEL, NET (Table
INVESTMENT IN HOTEL, NET (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Investment In Hotel Net | |
SCHEDULE OF INVESTMENT, NET | Investment in hotel consisted of the following as of: SCHEDULE OF INVESTMENT, NET Accumulated Net Book March 31, 2024 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (1,468,000 ) 337,000 Furniture and equipment 39,297,000 (30,939,000 ) 8,358,000 Building and improvements 58,353,000 (33,663,000 ) 24,690,000 Investment in Hotel, net $ 100,579,000 $ (66,070,000 ) $ 34,509,000 Accumulated Net Book June 30, 2023 Cost Depreciation Value Land $ 1,124,000 $ - $ 1,124,000 Finance lease ROU assets 1,805,000 (1,239,000 ) 566,000 Furniture and equipment 38,727,000 (29,682,000 ) 9,045,000 Building and improvements 56,273,000 (32,627,000 ) 23,646,000 Investment in Hotel, net $ 97,929,000 $ (63,548,000 ) $ 34,381,000 |
INVESTMENT IN MARKETABLE SECU_2
INVESTMENT IN MARKETABLE SECURITIES, NET (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
SCHEDULE OF TRADING SECURITIES | As of March 31, 2024, and June 30, 2023, 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 TRADING SECURITIES Gross Gross Net Investment Cost Unrealized Gain Unrealized Loss Unrealized Gain Fair Value As of March 31, 2024 Corporate Equities $ 274,000 $ 85,000 $ (46,000 ) $ 39,000 $ 313,000 As of June 30, 2023 Corporate Equities $ 274,000 $ 133,000 $ (48,000 ) $ 85,000 $ 359,000 |
SCHEDULE OF NET GAINS (LOSSES) ON MARKETABLE SECURITIES COMPRISING OF REALIZED AND UNREALIZED GAINS (LOSSES) | Net gain (loss) 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, 2024 and 2023, respectively: SCHEDULE OF NET GAINS (LOSSES) ON MARKETABLE SECURITIES COMPRISING OF REALIZED AND UNREALIZED GAINS (LOSSES) For the three months ended March 31, 2024 2023 Realized loss on marketable securities, net $ - $ - Unrealized loss on marketable securities, net $ (12,000 ) $ (5,000 ) Net loss on marketable securities $ (12,000 ) $ (5,000 ) For the nine months ended March 31, 2024 2023 Realized loss on marketable securities, net $ - $ (137,000 ) Unrealized (loss) gain on marketable securities, net (46,000 ) 229,000 Net (loss) gain on marketable securities $ (46,000 ) $ 92,000 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF FAIR VALUE, ASSETS MEASURED ON RECURRING BASIS | The assets measured at fair value on a recurring basis are as follows: SCHEDULE OF FAIR VALUE, ASSETS MEASURED ON RECURRING BASIS March 31, 2024 June 30, 2023 As of Total - Level 1 Total - Level 1 Assets: Investment in marketable securities: REITs and real estate companies $ 303,000 $ 350,000 Basic materials 10,000 9,000 Investment in marketable securities $ 313,000 $ 359,000 |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 June 30, 2023 Cash and cash equivalents $ 3,572,000 $ 2,295,000 Restricted cash 1,637,000 2,911,000 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 5,209,000 $ 5,206,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT | SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT As of and for the three months Hotel Investment ended March 31, 2024 Operations Transactions Corporate Total Revenues $ 10,758,000 $ - $ - $ 10,758,000 Segment operating expenses (9,239,000 ) - (301,000 ) (9,540,000 ) Segment income (loss) 1,519,000 - (301,000 ) 1,218,000 Interest expense - mortgage (2,591,000 ) - - (2,591,000 ) Interest expense - related party (590,000 ) - - (590,000 ) Depreciation and amortization expense (860,000 ) - - (860,000 ) Loss from investments - (48,000 ) - (48,000 ) Income tax benefit Net loss $ (2,522,000 ) $ (48,000 ) $ (301,000 ) $ (2,871,000 ) Total assets $ 40,942,000 $ 313,000 $ 400,000 $ 41,655,000 As of and for the three months Hotel Investment ended March 31, 2023 Operations Transactions Corporate Total Revenues $ 10,430,000 $ - $ - $ 10,430,000 Segment operating expenses (8,413,000 ) - (496,000 ) (8,909,000 ) Segment icome (loss) 2,017,000 - (496,000 ) 1,521,000 Interest expense - mortgage (1,584,000 ) - - (1,584,000 ) Interest expense - related party (420,000 ) - - (420,000 ) Depreciation and amortization expense (693,000 ) - - (693,000 ) Loss from investments - (93,000 ) - (93,000 ) Income tax benefit - - 212,000 212,000 Net loss $ (680,000 ) $ (93,000 ) $ (284,000 ) $ (1,057,000 ) Total assets $ 39,682,000 $ 400,000 $ 9,080,000 $ 49,162,000 As of and for the nine months Hotel Investment ended March 31, 2024 Operations Transactions Corporate Total Revenues $ 32,076,000 $ - $ - $ 32,076,000 Segment operating expenses (27,925,000 ) - (1,054,000 ) (28,979,000 ) Segment income (loss) 4,151,000 - (1,054,000 ) 3,097,000 Interest expense - mortgage (5,796,000 ) - - (5,796,000 ) Interest expense - related party (1,617,000 ) - - (1,617,000 ) Depreciation and amortization expense (2,522,000 ) - - (2,522,000 ) Loss from investments - (158,000 ) - (158,000 ) Income tax expense - - (1,000 ) (1,000 ) Net loss $ (5,784,000 ) $ (158,000 ) $ (1,055,000 ) $ (6,997,000 ) Total assets $ 40,942,000 $ 313,000 $ 400,000 $ 41,655,000 As of and for the nine months Hotel Investment ended March 31, 2023 Operations Transactions Corporate Total Revenues $ 32,632,000 $ - $ - $ 32,632,000 Segment operating expenses (26,445,000 ) - (1,321,000 ) (27,766,000 ) Segment income (loss) 6,187,000 - (1,321,000 ) 4,866,000 Interest expense - mortgage (4,871,000 ) - - (4,871,000 ) Interest expense - related party (1,279,000 ) - - (1,279,000 ) Depreciation and amortization expense (1,955,000 ) - - (1,955,000 ) Loss from investments - (79,000 ) - (79,000 ) Income tax benefit - - 932,000 932,000 Net loss $ (1,918,000 ) $ (79,000 ) $ (389,000 ) $ (2,386,000 ) Total assets $ 39,682,000 $ 400,000 $ 9,080,000 $ 49,162,000 |
RELATED PARTY AND OTHER FINAN_2
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 and June 30, 2023, respectively: SCHEDULE OF RELATED PARTY AND OTHER NOTES PAYABLE As of March 31, 2024 June 30, 2023 Note payable - InterGroup $ 20,100,000 $ 15,700,000 Note payable - Hilton 1,820,000 2,058,000 Note payable - Aimbridge 709,000 896,000 Total related party and other notes payable $ 22,629,000 $ 18,654,000 |
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, 2024 (3 months) $ 142,000 2025 20,667,000 2026 567,000 2027 463,000 2028 317,000 Thereafter 473,000 Long term debt $ 22,629,000 |
ACCOUNTS PAYABLE AND OTHER LI_2
ACCOUNTS PAYABLE AND OTHER LIABILITIES (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 and June 30, 2023, respectively. SCHEDULE OF ACCOUNTS PAYABLE AND OTHER LIABILITIES As of March 31, 2024 June 30, 2023 Trade payable $ 2,200,000 $ 1,235,000 Advance deposits 319,000 301,000 Property tax payable 476,000 59,000 Payroll and related accruals 3,280,000 2,863,000 Management fees payable 2,458,000 1,683,000 Mortgage interest payable 1,956,000 1,580,000 Withholding and other taxes payable 1,265,000 1,204,000 Security deposit - 52,000 Franchise fees 1,108,000 2,510,000 Other payables 212,000 194,000 Total accounts payable and other liabilities $ 13,274,000 $ 11,681,000 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Jul. 15, 2021 | Feb. 03, 2017 | Mar. 31, 2024 | Jun. 30, 2023 | Dec. 31, 2013 |
Option to extend | automatically renews for successive one (1) year periods, not to exceed five years in the aggregate, subject to certain conditions | ||||
Percentage of management fee payable | 1.70% | ||||
Percentage of gross operating profit | 10% | ||||
Mortgage loan | $ 106,045,000 | $ 107,117,000 | |||
Accumulated deficit | $ 112,724,000 | $ 105,727,000 | |||
Partnership redemption adjustment | $ 64,100,000 | ||||
John V. Winfield [Member] | |||||
Ownership percentage | 2.50% | ||||
John V. Winfield [Member] | Inter Group Corporation [Member] | |||||
Ownership percentage | 68.60% | ||||
Parent Company [Member] | Inter Group Corporation [Member] | |||||
Ownership percentage | 75.70% | ||||
Justice Investors Limited Partnership [Member] | |||||
Subsidiary of limited liability company or limited partnership, ownership interest | 100% | ||||
Remaining non-controlling interest | 0.70% |
SCHEDULE OF FINANCIAL OBLIGATIO
SCHEDULE OF FINANCIAL OBLIGATIONS INCLUDING INTEREST PAYMENTS (Details) | Mar. 31, 2024 USD ($) |
Obligations [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | $ 134,951,000 |
2024 | 3,857,000 |
2025 | 129,274,000 |
2026 | 567,000 |
2027 | 463,000 |
2028 | 317,000 |
Thereafter | 473,000 |
Mortgage Notes Payable [Member] | Obligations [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 106,045,000 |
2024 | |
2025 | 106,045,000 |
2026 | |
2027 | |
2028 | |
Thereafter | |
Hilton Aimbridge Other Notes Payable [Member] | Obligations [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 2,529,000 |
2024 | 142,000 |
2025 | 567,000 |
2026 | 567,000 |
2027 | 463,000 |
2028 | 317,000 |
Thereafter | 473,000 |
Related Party Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 22,629,000 |
2024 | 142,000 |
2025 | 20,667,000 |
2026 | 567,000 |
2027 | 463,000 |
2028 | 317,000 |
Thereafter | 473,000 |
Related Party Notes Payable [Member] | Obligations [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 20,100,000 |
2024 | |
2025 | 20,100,000 |
2026 | |
2027 | |
2028 | |
Thereafter | |
Interest [Member] | Obligations [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | 6,277,000 |
2024 | 3,715,000 |
2025 | 2,562,000 |
2026 | |
2027 | |
2028 | |
Thereafter |
LIQUIDITY (Details Narrative)
LIQUIDITY (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jul. 01, 2023 | Feb. 01, 2017 | Jul. 02, 2014 | Jul. 31, 2023 | Feb. 28, 2017 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2021 | Dec. 16, 2020 | Jan. 31, 2017 | |
Net cash used in operating activities | $ 553,000 | $ (1,539,000) | |||||||||
Cash and cash equivalents | 3,572,000 | $ 2,295,000 | |||||||||
Restricted cash | 1,637,000 | 2,911,000 | |||||||||
Marketable securities, net | $ 313,000 | 359,000 | |||||||||
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 loan is secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The mezzanine interest only loan had an interest rate of 9.75% per annum and a maturity date of January 1, 2024. | |||||||||
Amount of additional funds | $ 4,400,000 | ||||||||||
Loan Modification Agreement [Member] | |||||||||||
Working capital | $ 16,000,000 | ||||||||||
Current loan balance | 20,100,000 | ||||||||||
Justice Investors Limited Partnership and Intergroup [Member] | Loan Modification Agreement [Member] | |||||||||||
Debt instrument, face amount | $ 10,000,000 | $ 11,350,000 | $ 10,000,000 | ||||||||
Debt instrument interest rate stated percentage | 0.50% | ||||||||||
Debt instrument maturity date | Jul. 31, 2025 | Jul. 31, 2025 | |||||||||
Line of credit | $ 20,000,000 | $ 20,000,000 | $ 30,000,000 | ||||||||
Current loan balance | 15,700,000 | ||||||||||
Amortization of financing costs | $ 0 | ||||||||||
Unsecured Debt [Member] | |||||||||||
Debt instrument, face amount | $ 4,250,000 | ||||||||||
Debt instrument interest rate stated percentage | 12% | ||||||||||
Debt instrument terms | 2 years | ||||||||||
Percentage of loan fee received | 3% | ||||||||||
Debt instrument, maturity date, description | The loan was extended to July 31, 2023 | ||||||||||
Hotel [Member] | |||||||||||
Capital improvements | $ 2,650,000 |
SCHEDULE OF REVENUE DISAGGREGAT
SCHEDULE OF REVENUE DISAGGREGATION BY REVENUE STREAMS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total hotel revenue | $ 10,758,000 | $ 10,430,000 | $ 32,076,000 | $ 32,632,000 |
Hotel Rooms [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total hotel revenue | 9,018,000 | 8,968,000 | 26,982,000 | 28,020,000 |
Food and Beverage [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total hotel revenue | 924,000 | 744,000 | 2,523,000 | 1,905,000 |
Garage [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total hotel revenue | 710,000 | 609,000 | 2,243,000 | 2,148,000 |
Other Operating Departments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total hotel revenue | $ 106,000 | $ 109,000 | $ 328,000 | $ 559,000 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 9 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Jul. 01, 2023 | Jun. 30, 2023 | Jul. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract assets other than trade and other receivables | $ 0 | $ 1,000 | |||
Contract with customer liability | $ 290,000 | $ 493,000 | |||
Contract with customer, liability | 290,000 | $ 493,000 | |||
Increase in contract liabilities | $ 291,000 | $ 364,000 |
SCHEDULE OF INVESTMENT, NET (De
SCHEDULE OF INVESTMENT, NET (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 100,579,000 | $ 97,929,000 |
Accumulated Depreciation | (66,070,000) | (63,548,000) |
Net Book Value | 34,509,000 | 34,381,000 |
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 | (1,468,000) | (1,239,000) |
Net Book Value | 337,000 | 566,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 39,297,000 | 38,727,000 |
Accumulated Depreciation | (30,939,000) | (29,682,000) |
Net Book Value | 8,358,000 | 9,045,000 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 58,353,000 | 56,273,000 |
Accumulated Depreciation | (33,663,000) | (32,627,000) |
Net Book Value | $ 24,690,000 | $ 23,646,000 |
INVESTMENT IN HOTEL, NET (Detai
INVESTMENT IN HOTEL, NET (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 2,522,000 | $ 1,955,000 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Finance lease ROU assets useful life | 3 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Finance lease ROU assets useful life | 7 years | |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Finance lease ROU assets useful life | 15 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Finance lease ROU assets useful life | 39 years |
SCHEDULE OF TRADING SECURITIES
SCHEDULE OF TRADING SECURITIES (Details) - Equity Securities [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Jun. 30, 2023 | |
Marketable Securities [Line Items] | ||
Cost | $ 274,000 | $ 274,000 |
Gross Unrealized Gain | 85,000 | 133,000 |
Gross Unrealized Loss | (46,000) | (48,000) |
Net Unrealized Gain Loss | 39,000 | 85,000 |
Fair Value | $ 313,000 | $ 359,000 |
SCHEDULE OF NET GAINS (LOSSES)
SCHEDULE OF NET GAINS (LOSSES) ON MARKETABLE SECURITIES COMPRISING OF REALIZED AND UNREALIZED GAINS (LOSSES) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Realized loss on marketable securities, net | $ (137,000) | |||
Unrealized (loss) gain on marketable securities, net | (12,000) | (5,000) | (46,000) | 229,000 |
Net (loss) gain on marketable securities | $ (12,000) | $ (5,000) | $ (46,000) | $ 92,000 |
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, 2024 | Jun. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | $ 313,000 | $ 359,000 |
REITs And Real Estate Companies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | 303,000 | 350,000 |
Basic Materials [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable securities | $ 10,000 | $ 9,000 |
SCHEDULE OF CASH, CASH EQUIVALE
SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 3,572,000 | $ 2,295,000 | ||
Restricted cash | 1,637,000 | 2,911,000 | ||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows | $ 5,209,000 | $ 5,206,000 | $ 4,707,000 | $ 8,888,000 |
SCHEDULE OF SEGMENT REPORTING I
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | |||||||||
Revenues | $ 10,758,000 | $ 10,430,000 | $ 32,076,000 | $ 32,632,000 | |||||
Segment operating expenses | (9,540,000) | (8,909,000) | (28,979,000) | (27,766,000) | |||||
Segment income (loss) | 1,218,000 | 1,521,000 | 3,097,000 | 4,866,000 | |||||
Interest expense - mortgage | (2,591,000) | (1,584,000) | (5,796,000) | (4,871,000) | |||||
Depreciation and amortization expense | (860,000) | (693,000) | (2,522,000) | (1,955,000) | |||||
Loss from investments | (48,000) | (93,000) | (158,000) | (79,000) | |||||
Income tax benefit | 212,000 | (1,000) | 932,000 | ||||||
Net loss | (2,871,000) | $ (2,566,000) | $ (1,560,000) | (1,057,000) | $ (1,320,000) | $ (9,000) | (6,997,000) | (2,386,000) | |
Assets | 41,655,000 | 49,162,000 | 41,655,000 | 49,162,000 | $ 41,100,000 | ||||
Related Party [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest expense - related party | (590,000) | (420,000) | (1,617,000) | (1,279,000) | |||||
Hotel Operations [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 10,758,000 | 10,430,000 | 32,076,000 | 32,632,000 | |||||
Segment operating expenses | (9,239,000) | (8,413,000) | (27,925,000) | (26,445,000) | |||||
Segment income (loss) | 1,519,000 | 2,017,000 | 4,151,000 | 6,187,000 | |||||
Interest expense - mortgage | (2,591,000) | (1,584,000) | (5,796,000) | (4,871,000) | |||||
Depreciation and amortization expense | (860,000) | (693,000) | (2,522,000) | (1,955,000) | |||||
Loss from investments | |||||||||
Income tax benefit | |||||||||
Net loss | (2,522,000) | (680,000) | (5,784,000) | (1,918,000) | |||||
Assets | 40,942,000 | 39,682,000 | 40,942,000 | 39,682,000 | |||||
Hotel Operations [Member] | Related Party [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest expense - related party | (590,000) | (420,000) | (1,617,000) | (1,279,000) | |||||
Investment Transactions [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | |||||||||
Segment operating expenses | |||||||||
Segment income (loss) | |||||||||
Interest expense - mortgage | |||||||||
Depreciation and amortization expense | |||||||||
Loss from investments | (48,000) | (93,000) | (158,000) | (79,000) | |||||
Income tax benefit | |||||||||
Net loss | (48,000) | (93,000) | (158,000) | (79,000) | |||||
Assets | 313,000 | 400,000 | 313,000 | 400,000 | |||||
Investment Transactions [Member] | Related Party [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest expense - related party | |||||||||
Corporate Segment [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | |||||||||
Segment operating expenses | (301,000) | (496,000) | (1,054,000) | (1,321,000) | |||||
Segment income (loss) | (301,000) | (496,000) | (1,054,000) | (1,321,000) | |||||
Interest expense - mortgage | |||||||||
Depreciation and amortization expense | |||||||||
Loss from investments | |||||||||
Income tax benefit | 212,000 | (1,000) | 932,000 | ||||||
Net loss | (301,000) | (284,000) | (1,055,000) | (389,000) | |||||
Assets | 400,000 | 9,080,000 | 400,000 | 9,080,000 | |||||
Corporate Segment [Member] | Related Party [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest expense - related party |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 9 Months Ended |
Mar. 31, 2024 Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SCHEDULE OF RELATED PARTY AND O
SCHEDULE OF RELATED PARTY AND OTHER NOTES PAYABLE (Details) - Related Party [Member] - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Related Party Transaction [Line Items] | ||
Total related party and other notes payable | $ 22,629,000 | $ 18,654,000 |
Note Payable Inter Group [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party and other notes payable | 20,100,000 | 15,700,000 |
Note payable - Hilton [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party and other notes payable | 1,820,000 | 2,058,000 |
Note Payable Aimbridge [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party and other notes payable | $ 709,000 | $ 896,000 |
SCHEDULE OF FUTURE MINIMUM PRIN
SCHEDULE OF FUTURE MINIMUM PRINCIPAL PAYMENTS (Details) - Related Party Notes Payable [Member] | Mar. 31, 2024 USD ($) |
Debt Instrument [Line Items] | |
2024 (3 months) | $ 142,000 |
2025 | 20,667,000 |
2026 | 567,000 |
2027 | 463,000 |
2028 | 317,000 |
Thereafter | 473,000 |
Long term debt | $ 22,629,000 |
RELATED PARTY AND OTHER FINAN_3
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | ||||||||||||
Jul. 01, 2023 | Jul. 31, 2019 | Feb. 01, 2017 | Jul. 02, 2014 | Jul. 31, 2023 | Feb. 28, 2017 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | 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 loan is secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The mezzanine interest only loan had an interest rate of 9.75% per annum and a maturity date of January 1, 2024. | ||||||||||||
Amount of additional funds | $ 4,400,000 | |||||||||||||
Key money incentive advance to related party | $ 2,000,000 | |||||||||||||
Debt Instrument amortization period | 8 years | |||||||||||||
Outstanding loan principal amount | 86,045,000 | $ 87,240,000 | ||||||||||||
New Mezzanine Loan [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, interest rate, stated percentage | 7.25% | |||||||||||||
Debt instrument,maturity date | Jan. 01, 2024 | |||||||||||||
Note payable - Hilton [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Notes reduction | $ 317,000 | |||||||||||||
Debt instrument, payment terms | through 2030 | |||||||||||||
Related Party [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Unamortized portion of key money payment | $ 709,000 | 896,000 | ||||||||||||
Accounts payable to related party | 10,339,000 | 7,283,000 | ||||||||||||
Related Party [Member] | Prior Mortgage [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Accounts payable to related party | $ 42,940,000 | |||||||||||||
Related Party [Member] | Mortgage Loan [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Accounts payable to related party | $ 97,000,000 | 97,000,000 | ||||||||||||
Related Party [Member] | Mezzanine Loan [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Accounts payable to related party | $ 20,000,000 | $ 20,000,000 | ||||||||||||
Loan Modification Agreement [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Working capital | $ 16,000,000 | |||||||||||||
Current loan balance | 20,100,000 | |||||||||||||
Justice Investors Limited Partnership and Intergroup [Member] | Loan Modification Agreement [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 10,000,000 | $ 11,350,000 | $ 10,000,000 | |||||||||||
Debt instrument, interest rate, stated percentage | 0.50% | |||||||||||||
Debt instrument,maturity date | Jul. 31, 2025 | Jul. 31, 2025 | ||||||||||||
Line of credit | $ 20,000,000 | $ 20,000,000 | $ 30,000,000 | |||||||||||
Current loan balance | $ 15,700,000 | |||||||||||||
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% | |||||||||||||
Debt instrument terms | 2 years | |||||||||||||
Percentage of loan fee received | 3% | |||||||||||||
Debt instrument, maturity date, description | The loan was extended to July 31, 2023 |
SCHEDULE OF ACCOUNTS PAYABLE AN
SCHEDULE OF ACCOUNTS PAYABLE AND OTHER LIABILITIES (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Payables and Accruals [Abstract] | ||
Trade payable | $ 2,200,000 | $ 1,235,000 |
Advance deposits | 319,000 | 301,000 |
Property tax payable | 476,000 | 59,000 |
Payroll and related accruals | 3,280,000 | 2,863,000 |
Management fees payable | 2,458,000 | 1,683,000 |
Mortgage interest payable | 1,956,000 | 1,580,000 |
Withholding and other taxes payable | 1,265,000 | 1,204,000 |
Security deposit | 52,000 | |
Franchise fees | 1,108,000 | 2,510,000 |
Other payables | 212,000 | 194,000 |
Total accounts payable and other liabilities | $ 13,274,000 | $ 11,681,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] | Apr. 29, 2024 USD ($) |
Lender [Member] | |
Subsequent Event [Line Items] | |
Percentage of principal paydown | 10% |
Principal paydown | $ 8,589,706.44 |
Default interest rate | 4% |
Percenatge of forbearance fee | 1% |
Forbearance fee | $ 858,971 |
Mezz Lender [Member] | |
Subsequent Event [Line Items] | |
Percentage of principal paydown | 10% |
Default interest rate | 4% |
Percenatge of forbearance fee | 1% |
Forbearance fee | $ 245,000 |
Loan advanced payment | $ 4,500,000 |