| SEGMENT INFORMATION |
NOTE
14 - SEGMENT INFORMATION
The
Company operates in two reportable segments, the operation of the Hotel (“Hotel Operations”) and the investment of its cash
in marketable securities and other investments (“Investment Transactions”). These two operating segments, as presented in
the consolidated financial statements, reflect how management internally reviews each segment’s performance. Management also makes
operational and strategic decisions based on this same information.
Information
below represents reporting segments for the years ended June 30, 2022 and 2021, respectively. Segment loss from Hotel operations consists
of the operation of the Hotel and operation of the garage. Income (loss) from investments consists of net investment gain (loss), dividend
and interest income and investment related expenses.
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT
| As of and for the year | |
Hotel | | |
Investment | | |
| | |
| |
| ended June 30, 2022 | |
Operations | | |
Transactions | | |
Other | | |
Total | |
| Revenues | |
$ | 31,534,000 | | |
$ | - | | |
$ | - | | |
$ | 31,534,000 | |
| Segment operating expenses | |
| (27,451,000 | ) | |
| - | | |
| (1,130,000 | ) | |
| (28,581,000 | ) |
| Segment income (loss) | |
| 4,083,000 | | |
| - | | |
| (1,130,000 | ) | |
| 2,953,000 | |
| Interest expense - mortgage | |
| (6,549,000 | ) | |
| - | | |
| - | | |
| (6,549,000 | ) |
| Interest expense – related party | |
| (1,375,000 | ) | |
| - | | |
| - | | |
| (1,375,000 | ) |
| Gain on debt forgiveness | |
| 2,000,000 | | |
| | | |
| | | |
| 2,000,000 | |
| Depreciation and amortization expense | |
| (2,209,000 | ) | |
| - | | |
| - | | |
| (2,209,000 | ) |
| Loss from investments | |
| - | | |
| (1,243,000 | ) | |
| - | | |
| (1,243,000 | ) |
| Income tax expense | |
| - | | |
| - | | |
| (142,000 | ) | |
| (142,000 | ) |
| Net loss | |
$ | (4,050,000 | ) | |
$ | (1,243,000 | ) | |
$ | (1,272,000 | ) | |
$ | (6,565,000 | ) |
| Total assets | |
$ | 40,810,000 | | |
$ | 541,000 | | |
$ | 8,448,000 | | |
$ | 49,799,000 | |
| As of and for the year | |
Hotel | | |
Investment | | |
| | |
| |
| ended June 30, 2021 | |
Operations | | |
Transactions | | |
Other | | |
Total | |
| Revenues | |
$ | 14,668,000 | | |
$ | - | | |
$ | - | | |
$ | 14,668,000 | |
| Segment operating expenses | |
| (17,911,000 | ) | |
| - | | |
| (796,000 | ) | |
| (18,707,000 | ) |
| Segment loss | |
| (3,243,000 | ) | |
| - | | |
| (796,000 | ) | |
| (4,039,000 | ) |
| Segment income (loss) | |
| (3,243,000 | ) | |
| - | | |
| (796,000 | ) | |
| (4,039,000 | ) |
| Interest expense – mortgage | |
| (6,710,000 | ) | |
| - | | |
| - | | |
| (6,710,000 | ) |
| Interest expense – related party | |
| (572,000 | ) | |
| - | | |
| - | | |
| (572,000 | ) |
| Gain on disposal of asset | |
| 12,000 | | |
| - | | |
| - | | |
| 12,000 | |
| Gain on debt forgiveness | |
| 4,719,000 | | |
| - | | |
| - | | |
| 4,719,000 | |
| Gain on debt forgiveness | |
| 4,719,000 | | |
| - | | |
| - | | |
| 4,719,000 | |
| Depreciation and amortization expense | |
| (2,079,000 | ) | |
| - | | |
| - | | |
| (2,079,000 | ) |
| Gain from investments | |
| - | | |
| 1,237,000 | | |
| - | | |
| 1,237,000 | |
| Income (loss) from investments | |
| - | | |
| 1,237,000 | | |
| - | | |
| 1,237,000 | |
| Income tax benefit | |
| - | | |
| - | | |
| 2,146,000 | | |
| 2,146,000 | |
| Net income (loss) | |
$ | (7,873,000 | ) | |
$ | 1,237,000 | | |
$ | 1,350,000 | | |
$ | (5,286,000 | ) |
| Total assets | |
$ | 40,367,000 | | |
$ | 3,556,000 | | |
$ | 8,628,000 | | |
$ | 52,551,000 | |
|