BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Policies) |
12 Months Ended |
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Jun. 30, 2026 | |
| Accounting Policies [Abstract] | |
| Description of Business | Description of Business
Portsmouth Square, Inc. (“Portsmouth” or the “Company”), through its wholly owned subsidiaries, owns the Hilton San Francisco Financial District, a 558-room full-service hotel located at 750 Kearny Street in San Francisco, California, together with a five-level underground parking garage (collectively, the “Hotel”).
Justice Operating Company, LLC (“Operating”) an indirectly wholly owned subsidiary of the Company, owns the Hotel. The Hotel operates under a franchise agreement with HLT Franchise Holding LLC (“Hilton”) through January 31, 2030 and is managed by Aimbridge Hospitality (“Aimbridge”) pursuant to a hotel management agreement.
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| Principles of Consolidation | Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
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| Investment in Hotel, Net | Investment in Hotel, Net
Property and equipment are stated at cost. Building and improvements are depreciated on a straight-line basis over their useful lives ranging from 15 to 39 years. Furniture, fixtures, and equipment are depreciated on a straight-line basis over their useful lives ranging from 3 to 7 years.
Repairs and maintenance are charged to expense as incurred. Costs of significant renewals and improvements are capitalized and depreciated over their estimated useful lives. The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts; any resulting gain or loss is included in other income (expense).
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability is evaluated by comparing the carrying amount of the asset or asset group with the estimated undiscounted future cash flows expected to result from its use and eventual disposition. If the carrying amount is not recoverable, an impairment loss is recognized for the amount by which the carrying amount exceeds fair value. No impairment losses were recorded for the years ended June 30, 2026 and 2025.
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| Investment in Marketable Securities | Investment in Marketable Securities
Marketable equity securities are measured at fair value based on quoted market prices, with changes in fair value recognized in earnings.
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| Cash and Cash Equivalents | Cash and Cash Equivalents
The Company considers highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
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| Restricted Cash | Restricted Cash
Restricted cash consist of amounts held in lender-controlled accounts for real estate taxes, insurance, capital expenditures and other reserves required under the Hotel’s financing arrangements.
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| Accounts Receivable - Hotel, Net | Accounts Receivable - Hotel, Net
Accounts receivable are stated at amounts expected to be collected, net of an allowance for credit losses. The allowance is estimated based on historical credit loss experience, current conditions and reasonable and supportable forecasts. Receivables deemed uncollectible are written off against the allowance. The net accounts receivable balance on July 1, 2024 was $519,000. As of June 30, 2026 and 2025, the Company has gross accounts receivable of $250,000 and $383,000 respectively, and allowance for doubtful accounts of $0 and $9,000, respectively. The Company extends unsecured credit to its customers but mitigates the associated credit risk by performing ongoing credit evaluations of its customers.
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| Other Assets | Other Assets
Other assets primarily consist of Hotel inventory, prepaid expenses and other miscellaneous assets.
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| Income Taxes | Income Taxes
The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities and for tax carryforwards, using enacted tax rates expected to apply when the differences reverse. A valuation allowance is recognized when it is more likely than not that some portion or all of a deferred tax asset will not be realized.
The Company recognizes the tax benefit of an uncertain tax position only when it is more likely than not, based on its technical merits, that the position will be sustained upon examination. The recognized tax benefit is measured as the largest amount that is greater than 50% likely to be realized upon settlement. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense.
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| Interest Rate Cap | Interest Rate Cap
The Company accounts for interest rate cap agreements as derivative instruments that are recognized in the balance sheet at fair value and remeasured at each reporting date.
The interest rate caps are not designated as hedging instruments, and changes in fair value are recognized in earnings within other income (expense).
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| Revenue Recognition | Revenue Recognition
Hotel revenue consists primarily of room, food and beverage, parking and other ancillary revenue. Room revenue is recognized over the period rooms are occupied, and food and beverage, parking and other ancillary revenue is recognized when the related goods or services are provided. For arrangements containing multiple performance obligations, the transaction price is allocated to each performance obligation based on relative standalone selling prices.
Amounts received in advance are recorded as contract liabilities and recognized as revenue as the related performance obligations are satisfied. The Company does not disclose remaining performance obligations for contracts with an original expected duration of one year or less. See Note 3 – Revenue.
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| Advertising Costs | Advertising Costs
Advertising costs are expensed as incurred and are included in Hotel operating expenses in the consolidated statements of operations. Advertising expense was $164,000 and $263,000 for the years ended June 30, 2026 and 2025, respectively.
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| Basic and Diluted Loss per Share |
Basic loss per share is computed using the weighted average number of common shares outstanding during each period. Diluted loss per share is the same as basic loss per share because the Company had no potentially dilutive securities outstanding during the years ended June 30, 2026 and 2025.
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| Use of Estimates | Use of Estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures. Actual results may differ from those estimates.
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| Debt Issuance Costs | Debt Issuance Costs
Debt issuance costs related to a debt obligation are presented in the consolidated balance sheets as a direct deduction from the carrying amount of the related debt and are amortized over the life of the debt. Amortization of debt issuance costs is included in interest expense in the consolidated statements of operations.
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| Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements
The Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, effective July 1, 2025. The adoption did not affect the Company’s consolidated financial position, results of operations or cash flows and resulted in expanded income tax disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, as subsequently clarified by ASU 2025-01. The amendments require additional disaggregation of certain expense captions and are effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact on its disclosures.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments provide a practical expedient for estimating expected credit losses on certain current accounts receivable and contract assets and are effective for annual reporting periods beginning after December 15, 2025. The Company is evaluating the impact of the guidance.
Other recently issued accounting pronouncements are not expected to have a material effect on the Company’s consolidated financial statements. |