v3.26.3
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
SCHEDULE OF INCOME TAX (EXPENSE) BENEFIT

The provision for the Company’s income tax (expense) benefit is comprised of the following:

 

For the years ended June 30,  2026   2025 
         
Federal          
Current tax benefit (expense)  $(320,000)  $62,000 
Deferred tax (expense) benefit   (1,292,000)   (523,000)
Federal income tax (expense) benefit, total   (1,612,000)   (461,000)
           
State          
Current tax benefit (expense)   (296,000)   14,000 
Deferred tax expense   (375,000)   (101,000)
State income tax (expense) benefit, total   (671,000)   (87,000)
           
Income tax expense  $(2,283,000)  $(548,000)
SCHEDULE OF INCOME TAX PAID

The Company adopted ASU 2023-09 prospectively for the year ended June 30, 2026. Accordingly, the enhanced income tax disclosure requirements are presented for fiscal 2026 only.

 

For the year ended June 30,  2026 
Federal  $144,000 
State   248,000 
Total income taxes paid  $392,000 

 

For the year ended June 30,  2026 
     
State     
California  $135,000 
New Jersey   74,000 
Texas   34,000 
Other states   5,000 
Total state income taxes paid  $248,000 
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

The provision for income taxes differs from the amount of income tax computed by applying the federal statutory income tax rate to income before taxes as a result of the following differences:

 

For the years ended June 30,  2026   2025 
         
Statutory federal tax rate  $(554,000)  $1,469,000 
State income taxes, net of federal tax benefit   88,000    737,000 
Dividend received deduction   2,000    12,000 
Perm differences   (55,000)   (336,000)
Provision to return adjustment   178,000    105,000 
Stock based compensation   (11,000)   - 
Valuation allowance   (1,720,000)   (2,831,000)
Payable true up   (300,000)   182,000 
State rate change impact   (100,000)   95,000 
Other   189,000    19,000 
Income tax expense (benefit)  $(2,283,000)  $(548,000)
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The components of the deferred tax asset and liabilities are as follows:

 

   June 30, 2026   June 30, 2025 
Deferred tax assets:          
Net operating loss carryforwards  $15,366,000   $15,410,000 
Deferred gains on real estate sale and depreciation   13,679,000    9,620,000 
Capital loss carryforwards   1,035,000    1,399,000 
Accruals and reserves   764,000    881,000 
Interest expense   7,110,000    6,385,000 
Tax credits   34,000    256,000 
State taxes   -    162,000 
Intercompany interest   3,269,000    2,243,000 
Other   6,000    - 
Deferred Tax Asset before Valuation Allowance   41,263,000    36,356,000 
Valuation Allowance   (41,035,000)   (39,314,000)
Deferred Tax Asset after Valuation Allowance   228,000    (2,958,000)
Deferred tax liabilities:          
Deferred gains on real estate sale and depreciation   (3,957,000)   - 
Unrealized gain on marketable securities   (234,000)   (30,000)
Intercompany interest   (2,800,000)   (1,887,000)
Other   (250,000)   (473,000)
Deferred Tax Liability   (7,241,000)   (2,390,000)
Net deferred tax liability  $(7,013,000)  $(5,348,000)
SCHEDULE OF ESTIMATED NET OPERATING LOSSES (NOLS)

Below is the breakdown of the net operating losses for Intergroup and Portsmouth.

 

 

   Federal   State 
InterGroup  $277,000   $3,799,000 
Portsmouth   39,889,000    65,515,000 
   $40,166,000   $69,314,000 
SCHEDULE OF UNCERTAIN TAX POSITIONS

 

      
Unrecognized Tax Benefits at June 30, 2025  $1,665,000 
Increase in tax positions taken   - 
Decrease in tax positions taken   - 
Unrecognized Tax Benefits at June 30, 2026  $1,665,000