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SEGMENT INFORMATION
 12 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 13 - SEGMENT INFORMATION

 

The Company operates in two reportable segments: (i) the operation of the Hotel (“Hotel Operations”) and (ii) the investment of its cash in marketable securities and other investments (“Investment Transactions”). These segments reflect the manner in which management evaluates financial performance, allocates resources, and makes strategic decisions. Corporate expenses that are not allocated to segments are presented in “Other.”

 

CODM is a group of senior executives who collectively use segment income (loss) before interest expense, gain on extinguishment of debt, depreciation and amortization, and income taxes as the primary measure reviewed for evaluating performance and allocating resources. The significant expense categories regularly provided for Hotel operations include labor and related benefits, utilities, repairs and maintenance, marketing, and general and administrative costs. These expenses are included in “Segment operating expenses” in the table below.

 

Information below represents the Company’s reportable segments for the years ended June 30, 2025 and 2024, respectively. Segment loss from Hotel Operations includes the results of the Hotel and its five-level parking garage. Loss from Investments Transactions include net investment gain (loss), dividend and interest income, and investment-related expenses.

 

As of and for the year  Hotel   Investment         
ended June 30, 2025  Operations   Transactions   Other   Total 
Revenues  $46,363,000   $-   $-   $46,363,000 
Operating expenses   (31,593,000)   -    -    (31,593,000)
Utilities   (3,210,000)   -    -    (3,210,000)
Real estate taxes   (1,912,000)   -    -    (1,912,000)
Insurance   (916,000)   -    -    (916,000)
General and administrative   -    -    (1,327,000)   (1,327,000)
Segment income (loss)   8,732,000    -    (1,327,000)   7,405,000 
Interest expense - mortgage   (10,680,000)   -    -    (10,680,000)
Interest expense – related party   (3,570,000)   -    -    (3,570,000)
Gain on extinguishment of debt   1,416,000              1,416,000 
Depreciation and amortization expense   (3,534,000)   -    -    (3,534,000)
Loss from investments   -    (146,000)   -    (146,000)
Income tax expense   -    -    (1,000)   (1,000)
Net loss  $(7,636,000)  $(146,000)  $(1,328,000)  $(9,110,000)
Total assets  $46,621,000   $127,000   $172,000   $46,920,000 

 

 

As of and for the year  Hotel   Investment         
ended June 30, 2024  Operations   Transactions   Other   Total 
Revenues  $41,886,000   $-   $-   $41,886,000 
Operating expenses   (30,363,000)   -    -    (30,363,000)
Utilities   (3,069,000)   -    -    (3,069,000)
Real estate taxes   (1,906,000)   -    -    (1,906,000)
Insurance   (801,000)   -    -    (801,000)
General and administrative   -    -    (1,682,000)   (1,682,000)
Segment income (loss)   5,747,000    -    (1,682,000)   4,065,000 
Interest expense – mortgage   (9,407,000)   -    -    (9,407,000)
Interest expense – related party   (2,369,000)   -    -    (2,369,000)
Depreciation and amortization expense   (3,394,000)   -    -    (3,394,000)
Loss from investments   -    (269,000)   -    (269,000)
Income tax expense   -    -    (1,000)   (1,000)
Net loss  $(9,423,000)  $(269,000)  $(1,683,000)  $(11,375,000)
Total assets  $40,858,000   $209,000   $335,000   $41,402,000