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SEGMENT INFORMATION
 9 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 8 - 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 condensed consolidated financial statements, reflect how management internally reviews each segment’s performance. Corporate expenses that are not allocated to segments are presented in “Corporate”.

 

The chief operating decision maker (“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 reporting segments for the three and nine months ended March 31, 2026 and 2025, respectively.

 

As of and for the three months  Hotel   Investment         
ended March 31, 2026  Operations   Transactions   Corporate   Total 
Revenues  $16,497,000   $-   $-   $16,497,000 
Operating expenses   (10,120,000)   -    -    (10,120,000)
Utilities   (496,000)   -    -    (496,000)
Real estate taxes   (540,000)   -    -    (540,000)
Insurance   (218,000)   -    -    (218,000)
General & administrative   -    -    (267,000)   (267,000)
Segment income (loss)   5,123,000    -    (267,000)   4,856,000 
Interest expense - mortgage   (2,476,000)   -    -    (2,476,000)
Interest expense - related party   (846,000)   -    -    (846,000)
Depreciation and amortization expense   (917,000)   -    -    (917,000)
Loss from investments   -    (46,000)   -    (46,000)
Net income (loss)  $884,000   $(46,000)  $(267,000)  $571,000 
Total assets  $46,307,000   $139,000   $166,000   $46,612,000 

 

 

As of and for the three months  Hotel   Investment         
ended March 31, 2025  Operations   Transactions   Corporate   Total 
Revenues  $12,210,000   $-   $-   $12,210,000 
Operating expenses   (8,587,000)   -    -    (8,587,000)
Utilities   (398,000)   -    -    (398,000)
Real estate taxes   (478,000)   -    -    (478,000)
Insurance   (222,000)   -    -    (222,000)
General & administrative   -    -    (387,000)   (387,000)
Segment icome (loss)   2,525,000    -    (387,000)   2,138,000 
Interest expense - mortgage   (2,459,000)   -    -    (2,459,000)
Interest expense - related party   (861,000)   -    -    (861,000)
Depreciation and amortization expense   (874,000)   -    -    (874,000)
Gain on extinguishment of debt   1,416,000    -    -    1,416,000 
Loss from investments   -    (72,000)   -    (72,000)
Net loss  $(253,000)  $(72,000)  $(387,000)  $(712,000)
Total assets  $45,099,000   $99,000   $167,000   $45,365,000 

 

As of and for the nine months  Hotel   Investment         
ended March 31, 2026  Operations   Transactions   Corporate   Total 
Revenues  $41,576,000   $-   $-   $41,576,000 
Operating expenses   (28,495,000)   -    -    (28,495,000)
Utilities   (1,439,000)   -    -    (1,439,000)
Real estate taxes   (1,620,000)   -    -    (1,620,000)
Insurance   (728,000)   -    -    (728,000)
General & administrative   -    -    (849,000)   (849,000)
Segment income (loss)   9,294,000    -    (849,000)   8,445,000 
Interest expense - mortgage   (7,354,000)   -    -    (7,354,000)
Interest expense - related party   (2,582,000)   -    -    (2,582,000)
Depreciation and amortization expense   (2,705,000)   -    -    (2,705,000)
Loss from investments   -    (108,000)   -    (108,000)
Income tax expense   -    -    (1,000)   (1,000)
Net loss  $(3,347,000)  $(108,000)  $(850,000)  $(4,305,000)
Total assets  $46,307,000   $139,000   $166,000   $46,612,000 

 

As of and for the nine months  Hotel   Investment         
ended March 31, 2025  Operations   Transactions   Corporate   Total 
Revenues  $33,995,000   $-   $-   $33,995,000 
Operating expenses   (24,039,000)   -    -    (24,039,000)
Utilities   (1,415,000)   -    -    (1,415,000)
Real estate taxes   (1,434,000)   -    -    (1,434,000)
Insurance   (644,000)   -    -    (644,000)
General & administrative   -    -    (1,038,000)   (1,038,000)
Segment income (loss)   6,463,000    -    (1,038,000)   5,425,000 
Interest expense - mortgage   (8,128,000)   -    -    (8,128,000)
Interest expense - related party   (2,542,000)   -    -    (2,542,000)
Depreciation and amortization expense   (2,655,000)   -    -    (2,655,000)
Gain on extinguishment of debt   1,416,000    -    -    1,416,000 
Loss from investments   -    (135,000)   -    (135,000)
Income tax expense   -    -    (1,000)   (1,000)
Net loss  $(5,446,000)  $(135,000)  $(1,039,000)  $(6,620,000)
Total assets  $45,099,000   $99,000   $167,000   $45,365,000