INVESTMENT IN HOTEL, NET

9 Months Ended

Mar. 31, 2026

NOTE 4 – INVESTMENT IN HOTEL, NET

Investment in Hotel consisted of the following as of March 31, 2026 and June 30, 2025:

SCHEDULE OF INVESTMENT IN HOTEL

			Accumulated			Net Book
March 31, 2026	Cost		Depreciation			Value

Land	$	2,738,000	$	-		$	2,738,000
Finance lease ROU assets		1,805,000		(1,749,000	)		56,000
Furniture and equipment		41,065,000		(34,651,000	)		6,414,000
Building and improvements		70,445,000		(41,128,000	)		29,317,000
Investment in Hotel, net	$	116,053,000	$	(77,528,000	)	$	38,525,000

			Accumulated			Net Book
June 30, 2025	Cost		Depreciation			Value

Land	$	2,738,000	$	-		$	2,738,000
Finance lease ROU assets		1,805,000		(1,665,000	)		140,000
Furniture and equipment		41,195,000		(33,248,000	)		7,947,000
Building and improvements		68,527,000		(39,833,000	)		28,694,000
Investment in Hotel, net	$	114,265,000	$	(74,746,000	)	$	39,519,000

Finance lease right-of-use assets related to equipment are recorded at cost and amortized on a straight-line basis over the lease term. Furniture and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives, which generally range from 3 to 7 years. Building and improvements are recorded at cost and depreciated on a straight-line basis over estimated useful lives ranging from 15 to 39 years. Construction-in-progress is not depreciated until the assets are placed in service.

Depreciation expense related to the Hotel for the nine months ended March 31, 2026 and 2025 was $2,780,000 and $2,731,000, respectively, and is included in depreciation and amortization expense in the Company’s condensed consolidated statements of operations.

During the nine months ended March 31, 2026, Portsmouth continued property enhancements, including the renovation of 14 guest rooms that were returned to available room inventory upon completion in September 2025 (see Note 2).