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SEGMENT INFORMATION
 12 Months Ended
Jun. 30, 2026
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 cash in marketable securities and other investments (“Investment Transactions”). These segments reflect the manner in which management evaluates financial performance, allocates resources. Corporate expenses and other amounts that are not allocated to the reportable segments are in “Other.”

 

The Company’s chief operating decision maker (“CODM”) is a group of senior executives. The CODM uses segment income (loss) as the primary measure for assessing segment performance and making resource-allocation decisions. For Hotel Operations, segment income represents Hotel revenue less Hotel operating expenses before depreciation and amortization and financing-related interest expense. For Investment Transactions, segment loss includes gains and losses on marketable securities, dividend and interest income, and trading and margin interest expense.

 

The significant expense categories regularly provided to the CODM and included in Hotel Operations segment income utilities, real estate taxes, insurance and Hotel general and administrative expenses. Significant expenses regularly provided to the CODM for Investment Transactions include trading and margin interest expense.

 

Hotel Operations includes the operations of the Hotel and its five-level parking garage. The following tables present the Company’s reportable segment information for the years ended June 30, 2026 and 2025.

 

As of and for the year  Hotel   Investment         
ended June 30, 2026  Operations   Transactions   Other   Total 
Revenues  $55,797,000   $-   $-   $55,797,000 
Operating expenses   (38,265,000)   -    -    (38,265,000)
Utilities   (1,900,000)   -    -    (1,900,000)
Real estate taxes   (2,159,000)   -    -    (2,159,000)
Insurance   (949,000)   -    -    (949,000)
General and administrative   -    -    (1,095,000)   (1,095,000)
Segment income (loss)   12,524,000    -    (1,095,000)   11,429,000 
Interest expense - mortgage   (9,686,000)   -    -    (9,686,000)
Interest expense – related party   (3,437,000)   -    -    (3,437,000)
Gain on extinguishment of debt   -              - 
Depreciation and amortization expense   (3,640,000)   -    -    (3,640,000)
Loss from investments   -    (79,000)   -    (79,000)
Income tax expense   -    -    (1,000)   (1,000)
Net loss  $(4,239,000)  $(79,000)  $(1,096,000)  $(5,414,000)
Total assets  $46,548,000   $200,000   $187,000   $46,935,000 

 

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