Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Aug. 30, 2018 | Dec. 29, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | INTERGROUP CORP | ||
Entity Central Index Key | 69,422 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 19,823,000 | ||
Trading Symbol | INTG | ||
Entity Common Stock, Shares Outstanding | 2,334,197 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
ASSETS | ||
Investment in Hotel, net | $ 40,961,000 | $ 42,092,000 |
Investment in real estate, net | 53,369,000 | 54,984,000 |
Investment in marketable securities | 13,841,000 | 17,177,000 |
Other investments, net | 813,000 | 1,211,000 |
Cash and cash equivalents | 8,053,000 | 2,871,000 |
Restricted cash | 9,458,000 | 7,402,000 |
Other assets, net | 5,185,000 | 3,365,000 |
Deferred tax asset | 0 | 4,107,000 |
Total assets | 131,680,000 | 133,209,000 |
Liabilities: | ||
Accounts payable and other liabilities | 3,299,000 | 2,947,000 |
Accounts payable and other liabilities - Hotel | 9,946,000 | 12,833,000 |
Due to securities broker | 1,887,000 | 3,012,000 |
Obligations for securities sold | 1,935,000 | 3,710,000 |
Related party and other notes payable | 5,735,000 | 6,112,000 |
Capital leases | 1,355,000 | 0 |
Mortgage notes payable - Hotel | 114,372,000 | 115,615,000 |
Mortgage notes payable - real estate | 62,873,000 | 64,298,000 |
Deferred tax liability | 245,000 | 0 |
Total liabilities | 201,647,000 | 208,527,000 |
Commitments and contingencies - Note 18 | ||
Shareholders' deficit: | ||
Preferred stock, $.01 par value, 100,000 shares authorized; none issued | 0 | 0 |
Common stock, $.01 par value, 4,000,000 shares authorized; 3,395,616 and 3,395,616 issued; 2,334,197 and 2,359,724 outstanding as of June 30, 2018 and 2017 | 33,000 | 33,000 |
Additional paid-in capital | 10,522,000 | 10,346,000 |
Accumulated deficit | (41,217,000) | (45,298,000) |
Treasury stock, at cost, 1,061,419 and 1,035,892 shares as of June 30, 2018 and 2017 | (13,268,000) | (12,626,000) |
Total Intergroup shareholders' deficit | (43,930,000) | (47,545,000) |
Noncontrolling interest | (26,037,000) | (27,773,000) |
Total shareholders' deficit | (69,967,000) | (75,318,000) |
Total liabilities and shareholders' deficit | $ 131,680,000 | $ 133,209,000 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Jun. 30, 2018 | Jun. 30, 2017 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock , shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 4,000,000 | 4,000,000 |
Common stock, shares issued | 3,395,616 | 3,395,616 |
Common stock, shares outstanding | 2,334,197 | 2,359,724 |
Treasury stock, shares | 1,061,419 | 1,035,892 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues [Abstract] | ||
Revenues | $ 71,579,000 | $ 69,005,000 |
Costs and operating expenses: | ||
Hotel operating expenses | (40,103,000) | (40,717,000) |
Recovery of legal settlement costs | 5,775,000 | 0 |
Real estate operating expenses | (7,579,000) | (7,166,000) |
Depreciation and amortization expense | (5,054,000) | (5,305,000) |
General and administrative expense | (3,053,000) | (2,821,000) |
Total costs and operating expenses | (50,014,000) | (56,009,000) |
Income from operations | 21,565,000 | 12,996,000 |
Other income (expense): | ||
Interest expense - mortgage | (9,767,000) | (9,604,000) |
Net loss on marketable securities | (1,777,000) | (3,496,000) |
Net unrealized loss on other investments | (42,000) | 0 |
Impairment loss on other investments | (200,000) | (178,000) |
Dividend and interest income | 277,000 | 287,000 |
Trading and margin interest expense | (1,187,000) | (1,160,000) |
Net other expense | (12,696,000) | (14,151,000) |
Income (loss) before income taxes | 8,869,000 | (1,155,000) |
Income tax expense | (3,056,000) | (521,000) |
Net income (loss) | 5,813,000 | (1,676,000) |
Less: Net (income) loss attributable to the noncontrolling interest | (1,732,000) | 23,000 |
Net income (loss) attributable to InterGroup | $ 4,081,000 | $ (1,653,000) |
Net income (loss) per share | ||
Basic | $ 2.47 | $ (0.71) |
Diluted | 2.18 | (0.71) |
Net income (loss) per share attributable to InterGroup | ||
Basic | 1.73 | (0.70) |
Diluted | $ 1.53 | $ (0.70) |
Weighted average number of common shares outstanding | 2,354,489 | 2,371,765 |
Weighted average number of diluted shares outstanding | 2,672,489 | 2,371,765 |
Hotel [Member] | ||
Revenues [Abstract] | ||
Revenues | $ 57,099,000 | $ 54,334,000 |
Real Estate [Member] | ||
Revenues [Abstract] | ||
Revenues | $ 14,480,000 | $ 14,671,000 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | InterGroup Shareholders' Deficit [Member] | Noncontrolling Interest [Member] |
Beginning Balance at Jun. 30, 2016 | $ (73,247,000) | $ 33,000 | $ 10,363,000 | $ (43,645,000) | $ (12,082,000) | $ (45,331,000) | $ (27,916,000) |
Beginning Balance (in shares) at Jun. 30, 2016 | 3,395,616 | ||||||
Net income | (1,676,000) | $ 0 | 0 | (1,653,000) | 0 | (1,653,000) | (23,000) |
Stock options expense | 268,000 | 0 | 268,000 | 0 | 0 | 268,000 | 0 |
Investment in Santa Fe | (83,000) | 0 | (188,000) | 0 | 0 | (188,000) | 105,000 |
Investment in Portsmouth | (36,000) | 0 | (97,000) | 0 | 0 | (97,000) | 61,000 |
Purchase of treasury stock | (544,000) | 0 | 0 | 0 | (544,000) | (544,000) | 0 |
Ending Balance at Jun. 30, 2017 | (75,318,000) | $ 33,000 | 10,346,000 | (45,298,000) | (12,626,000) | (47,545,000) | (27,773,000) |
Ending Balance (in shares) at Jun. 30, 2017 | 3,395,616 | ||||||
Net income | 5,813,000 | $ 0 | 0 | 4,081,000 | 0 | 4,081,000 | 1,732,000 |
Stock options expense | 184,000 | 0 | 184,000 | 0 | 0 | 184,000 | 0 |
Investment in Santa Fe | (4,000) | 0 | (8,000) | 0 | 0 | (8,000) | 4,000 |
Purchase of treasury stock | (642,000) | 0 | 0 | 0 | (642,000) | (642,000) | 0 |
Ending Balance at Jun. 30, 2018 | $ (69,967,000) | $ 33,000 | $ 10,522,000 | $ (41,217,000) | $ (13,268,000) | $ (43,930,000) | $ (26,037,000) |
Ending Balance (in shares) at Jun. 30, 2018 | 3,395,616 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 5,813,000 | $ (1,676,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Net unrealized (gain) loss on marketable securities | (3,598,000) | 3,852,000 |
Deferred taxes | 4,352,000 | (122,000) |
Unrealized loss on other investments | 42,000 | 0 |
Impairment loss on other investments | 200,000 | 178,000 |
Depreciation and amortization | 4,776,000 | 5,389,000 |
Stock compensation expense | 184,000 | 268,000 |
Changes in assets and liabilities: | ||
Investment in marketable securities | 6,934,000 | (6,747,000) |
Other assets, net | (1,820,000) | 2,806,000 |
Accounts payable and other liabilities | (2,535,000) | (2,720,000) |
Due to securities broker | (1,125,000) | 1,519,000 |
Obligations for securities sold | (1,775,000) | 3,547,000 |
Net cash provided by operating activities | 11,448,000 | 6,294,000 |
Cash flows from investing activities: | ||
Investment in Hotel, net | (212,000) | (328,000) |
Investment in real estate, net | (732,000) | (875,000) |
Proceeds from (purchase of) other investments | 156,000 | (360,000) |
Investment in Santa Fe | (4,000) | (83,000) |
Investment in Portsmouth | 0 | (36,000) |
Net cash used in investing activities | (792,000) | (1,682,000) |
Cash flows from financing activities: | ||
Net payments of mortgage and other notes payable | (2,776,000) | (2,420,000) |
Restricted cash for capital improvements and mortgage impounds | (2,056,000) | (4,181,000) |
Purchase of treasury stock | (642,000) | (544,000) |
Net cash used in financing activities | (5,474,000) | (7,145,000) |
Net increase (decrease) in cash and cash equivalents | 5,182,000 | (2,533,000) |
Cash and cash equivalents at the beginning of the year | 2,871,000 | 5,404,000 |
Cash and cash equivalents at the end of the year | 8,053,000 | 2,871,000 |
Supplemental information: | ||
Income tax paid | 171,000 | 1,063,000 |
Interest paid | 10,399,000 | 10,256,000 |
Non-cash transactions: | ||
Additions to Hotel equipment through capital lease | $ 1,364,000 | $ 0 |
BUSINESS AND SIGNIFICANT ACCOUN
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES: | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1 - BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES: Description of the Business The InterGroup Corporation, a Delaware corporation, (“InterGroup” or the “Company”) was formed to buy, develop, operate and dispose of real property and to engage in various investment activities to benefit the Company and its shareholders. As of June 30, 2018, the Company had the power to vote 85.9% of the voting shares of Santa Fe Financial Corporation (“Santa Fe”), a public company (OTCBB: SFEF). This percentage includes the power to vote an approximately 4% interest in the common stock in Santa Fe owned by the Company’s Chairman and President pursuant to a voting trust agreement entered into on June 30, 1998. Santa Fe’s primary business is conducted through the management of its 68.8% owned subsidiary, Portsmouth Square, Inc. (“Portsmouth”), a public company (OTCBB: PRSI). Portsmouth has a 93.1% limited partnership interest in Justice and is the sole general partner. InterGroup also directly owns approximately 13.4% of the common stock of Portsmouth. Justice, through its subsidiaries Justice Operating Company, LLC (“Operating”), Justice Mezzanine Company, LLC (“Mezzanine”), and Kearny Street Parking, LLC (“Parking”) owns a 544-room hotel property located at 750 Kearny Street, San Francisco California, known as the Hilton San Francisco Financial District (the “Hotel”) and related facilities including a five-level underground parking garage. Mezzanine and Parking are both wholly-owned subsidiaries of the Partnership; Operating is a wholly-owned subsidiary of Mezzanine. Mezzanine is the borrower under certain mezzanine indebtedness of Justice, and in December 2013, the Partnership conveyed ownership of the Hotel to Operating. The Hotel is operated by the partnership as a full-service Hilton brand hotel pursuant to a Franchise License Agreement with HLT Franchise Holding LLC (Hilton). Justice had a management agreement with Prism Hospitality L.P. (“Prism”) to perform certain management functions for the Hotel. The management agreement with Prism had an original term of ten years, subject to the Partnership’s right to terminate at any time with or without cause. Effective January 2014, the management agreement with Prism was amended by the Partnership to change the nature of the services provided by Prism and the compensation payable to Prism, among other things. Prism’s management agreement was terminated upon its expiration date of February 3, 2017. Effective December 1, 2013, GMP Management, Inc. (“GMP”), a company owned by a Justice limited partner and a related party, also provided management services for the Partnership pursuant to a management services agreement, with a three-year term, subject to the Partnership’s right to terminate earlier for cause. In June 2016, GMP resigned. After a lengthy review process of several national third-party hotel management companies, on February 1, 2017, Justice entered into a Hotel management agreement (“HMA”) with Interstate Management Company, LLC (“Interstate”) to manage the Hotel with an effective takeover date of February 3, 2017. The term of management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for an additional year not to exceed five years in the aggregate subject to certain conditions. The HMA also provides for Interstate to advance a key money incentive fee to the Hotel for capital improvements in the amount of $2,000,000 under certain terms and conditions described in a separate key money agreement. The $2,000,000 is included in the restricted cash and related party and other notes payable balances in the consolidated balance sheets as of June 30, 2018 and 2017. In addition to the operations of the Hotel, the Company also generates income from the ownership of real estate. Properties include apartment complexes, commercial real estate, and three single-family houses as strategic investments. The properties are located throughout the United States, but are concentrated in Texas and Southern California. The Company also has investments in unimproved real property. All of the Company’s residential rental properties are managed in-house. Principles of Consolidation The consolidated financial statements include the accounts of the Company and Santa Fe. All significant inter-company transactions and balances have been eliminated. Investment in Hotel, Net Property and equipment are stated at cost. Building improvements are depreciated on a straight-line basis over their useful lives ranging from 3 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 the shorter of its remaining estimated useful life or life of the asset. 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 (expenses). The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with generally accepted accounting principles (“GAAP”). If the carrying amount of the asset, including any intangible assets associated with that asset, exceeds its estimated undiscounted net cash flow, before interest, the Partnership will recognize an impairment loss equal to the difference between its carrying amount and its estimated fair value. If impairment is recognized, the reduced carrying amount of the asset will be accounted for as its new cost. For a depreciable asset, the new cost will be depreciated over the asset’s remaining useful life. Generally, fair values are estimated using discounted cash flow, replacement cost or market comparison analyses. The process of evaluating for impairment requires estimates as to future events and conditions, which are subject to varying market and economic factors. Therefore, it is reasonably possible that a change in estimate resulting from judgments as to future events could occur which would affect the recorded amounts of the property. No impairment losses were recorded for the years ended June 30, 2018 and 2017. Investment in Real Estate, Net Rental properties are stated at cost less accumulated depreciation. Depreciation of rental property is provided on the straight-line method based upon estimated useful lives of 5 to 40 years for buildings and improvements and 5 to 10 years for equipment. Expenditures for repairs and maintenance are charged to expense as incurred and major improvements are capitalized. The Company also reviews its rental property assets for impairment. No impairment losses on the investment in real estate have been recorded for the years ended June 30, 2018 and 2017. The fair value of the tangible assets of an acquired property, which includes land, building and improvements, is determined by valuing the property as if they were vacant, and incorporates costs during the lease-up periods considering current market conditions and costs to execute similar leases such lost rental revenue and tenant improvements. The value of tangible assets is depreciated using straight-line method based upon the assets estimated useful lives. Investment in Marketable Securities Marketable securities are stated at fair value as determined by the most recently traded price of each security at the balance sheet date. Marketable securities are classified as trading securities with all unrealized gains and losses on the Company's investment portfolio recorded through the consolidated statements of operations. Other Investments, Net Other investments include non-marketable securities (carried at cost, net of any impairments loss) and non-marketable debt instruments. The Company has no significant influence or control over the entities that issue these investments. These investments are reviewed on a periodic basis for other-than-temporary impairment. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include but are not limited to: (i) the length of time an investment is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near term prospects of the issuer and (iv) our ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. For the years ended June 30, 2018 and 2017, the Company recorded impairment losses related to other investments of $200,000 and $178,000, respectively. As of June 30, 2018 and 2017, the allowance for impairment losses was $6,269,000 and $6,154,000, respectively. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an original maturity of three months or less when purchased and are carried at cost, which approximates fair value. Restricted Cash Restricted cash is comprised of amounts held by lenders for payment of real estate taxes, insurance, replacement and capital addition reserves for the Hotel. It also includes key money received from Interstate that is restricted for capital improvements. Other Assets, Net Other assets include prepaid insurance, accounts receivable, franchise fees, tax refund receivable, and other miscellaneous assets. Franchise fees are stated at cost and amortized over the life of the agreement (15 years). Accounts receivable from the Hotel and rental property customers are carried at cost less an allowance for doubtful accounts that is based on management’s assessment of the collectability of accounts receivable. The Company extends unsecured credit to its customers but mitigates the associated credit risk by performing ongoing credit evaluations of its customers. Due to Securities Broker The Company may utilize margin for its marketable securities purchases through the use of standard margin agreements with national brokerage firms. Various securities brokers have advanced funds to the Company for the purchase of marketable securities under standard margin agreements. These advanced funds are recorded as a liability. Obligation for Securities Sold Obligation for securities sold represents the fair market value of shares sold with the promise to deliver that security at some future date and the fair market value of shares underlying the written call options with the obligation to deliver that security when and if the option is exercised. The obligation may be satisfied with current holdings of the same security or by subsequent purchases of that security. Unrealized gains and losses from changes in the obligation are included in the statement of operations. Accounts Payable and Other Liabilities Accounts payable and other liabilities include trade payables, advance customer deposits, accrued wages, accrued real estate taxes, and other liabilities. Treasury Stock The Company records the acquisition of treasury stock under the cost method. During the years ended June 30, 2018 and 2017, the Company purchased 25,527 and 22,002 shares of treasury stock, respectively. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Accounting standards for fair value measurement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1 Level 2 Level 3 Revenue Recognition Room revenue is recognized on the date upon which a guest occupies a room and/or utilizes the Hotel’s services. Food and beverage revenues are recognized upon delivery. Garage revenue is recognized when a guest uses the garage space. The Company records a liability for payments collected in advance of revenue recognition. This liability is included in accounts payable and other liabilities. Revenue recognition from apartment rentals commences when an apartment unit is placed in service and occupied by a rent-paying tenant. Apartment units are leased on a short-term basis, with no lease extending beyond one year. Advertising Costs Advertising costs are expensed as incurred and are included in Hotel operating expenses in the consolidated statements of operations. Advertising costs were $302,000 and $294,000 for the years ended June 30, 2018 and 2017, respectively. Income Taxes Deferred income taxes are calculated under the liability method. Deferred income tax assets and liabilities are based on differences between the financial statement and tax basis of assets and liabilities at the current enacted tax rates. Changes in deferred income tax assets and liabilities are included as a component of income tax expense. Changes in deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets where realization is not likely. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold based on the technical merits of the positions. Earnings (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding. The computation of diluted net income per share is similar to the computation of basic net income per share except that the weighted-average number of common shares is increased to include the number of additional common shares that would have been outstanding if potential dilutive common shares had been issued. The Company's only potentially dilutive common shares are stock options. The basic and diluted earnings per share were the same for the year ended June 30, 2017 because the Company had a net loss. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to the recording of allowance for doubtful accounts and allowance for impairment losses which are based on management’s assessment of the collectability of accounts receivable and the fair market value of nonmarketable securities, respectively, as of the end of the fiscal year. Actual results may differ from those estimates. Debt Issuance Costs Debt issuance costs related to a recognized debt liability are presented in the consolidated balance sheets as a direct deduction from the carrying amount of the debt liability and are amortized over the life of the debt. Loan amortization costs are included in interest expense in the consolidated statement of operations. Recent Accounting Pronouncements and U.S. Tax Reform In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08) which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position as right-of-use assets and lease liabilities by lessees. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach and are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. We intend to adopt the standard on July 1, 2019. The Company is currently reviewing the effect of ASU No. 2016-02. On June 16, 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” This ASU modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the timelier recognition of losses. ASU No. 2016-13 will be effective for us as of January 1, 2020. The Company is currently reviewing the effect of ASU No. 2016-13. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises the future ongoing corporate income tax by, among other things, lowering corporate income tax rates. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a statutory federal rate of approximately 28% for our fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. The decrease in corporate tax rate reduced the Company’s deferred tax assets and liabilities to the lower federal base rate of 21%. As a result, a provisional net credit of $404,000 was included in the income tax expense for the year ended June 30, 2018. The changes included in the Tax Act are broad and complex. The final transition impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the company has utilized to calculate the transition impact. The Securities Exchange Commission has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. |
JUSTICE INVESTORS
JUSTICE INVESTORS | 12 Months Ended |
Jun. 30, 2018 | |
Justice Investors [Abstract] | |
Justice Investors [Text Block] | NOTE 2 - JUSTICE INVESTORS Justice Investors Limited Partnership, a California limited partnership (“Justice” or the “Partnership”), was formed in 1967 to acquire real property in San Francisco, California, for the development and lease of the Hotel and related facilities. The Partnership has one general partner, Portsmouth Square, Inc., a California corporation (“Portsmouth”) and approximately 24 voting limited partners, including Portsmouth. Management believes that the revenues and cash flows expected to be generated from the operations of the Hotel, garage and leases will be sufficient to meet all of the Partnership’s current and future obligations and financial requirements. Management also believes that there is significant appreciated value in the Hotel property in excess of the net book value to support additional borrowings, if necessary. |
INVESTMENT IN HOTEL, NET
INVESTMENT IN HOTEL, NET | 12 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
Real Estate Disclosure [Text Block] | NOTE 3 – INVESTMENT IN HOTEL, NET Investment in Hotel consisted of the following as of: Accumulated Net Book June 30, 2018 Cost Depreciation Value Land $ 2,738,000 $ - $ 2,738,000 Furniture and equipment 29,350,000 (25,876,000 ) 3,474,000 Building and improvements 64,336,000 (29,587,000 ) 34,749,000 $ 96,424,000 $ (55,463,000 ) $ 40,961,000 Accumulated Net Book June 30, 2017 Cost Depreciation Value Land $ 2,738,000 $ - $ 2,738,000 Furniture and equipment 27,681,000 (24,569,000 ) 3,112,000 Building and improvements 64,308,000 (28,066,000 ) 36,242,000 $ 94,727,000 $ (52,635,000 ) $ 42,092,000 |
INVESTMENT IN REAL ESTATE, NET
INVESTMENT IN REAL ESTATE, NET | 12 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
Investment In Real Estate [Text Block] | NOTE 4 - INVESTMENT IN REAL ESTATE, NET At June 30, 2018, the Company's investment in real estate consisted of twenty properties located throughout the United States. These properties include sixteen apartment complexes, three single-family houses as strategic investments, and one commercial real estate property. The Company also owns unimproved land located in Maui, Hawaii. Investment in real estate included the following: As of June 30, 2018 2017 Land $ 25,033,000 $ 25,033,000 Buildings, improvements and equipment 67,536,000 66,804,000 Accumulated depreciation (39,200,000 ) (36,853,000 ) $ 53,369,000 $ 54,984,000 |
INVESTMENT IN MARKETABLE SECURI
INVESTMENT IN MARKETABLE SECURITIES | 12 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 5 - INVESTMENT IN MARKETABLE SECURITIES The Company’s investment in marketable securities consists primarily of corporate equities. The Company has also periodically invested in corporate bonds and income producing securities, which may include interests in real estate based companies and REITs, where financial benefit could insure to its shareholders through income and/or capital gain. At June 30, 2018 and 2017, all of the Company’s marketable securities are classified as trading securities. The change in the unrealized gains and losses on these investments are included in earnings. Trading securities are summarized as follows: Gross Gross Net Fair Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Value As of June 30, 2018 Corporate Equities $ 22,388,000 $ 2,450,000 $ (10,997,000 ) $ (8,547,000 ) $ 13,841,000 As of June 30, 2017 Corporate Equities $ 29,170,000 $ 1,768,000 $ (13,761,000 ) $ (11,993,000 ) $ 17,177,000 As of June 30, 2018 and 2017, approximately 7% and 28% of the investment marketable securities balance above is comprised of the common stock of Comstock Mining Inc. As of June 30, 2018 and 2017, the Company had $10,819,000 and $13,294,000, respectively, of unrealized losses related to securities held for over one year. Net loss on marketable securities on the statement of operations is comprised of realized and unrealized gains (losses). Below is the composition of the two components for the years ended June 30, 2018 and 2017, respectively. For the year ended June 30, 2018 2017 Realized loss on marketable securities related to Comstock $ (6,007,000 ) $ - Realized gain on marketable securities 632,000 356,000 Unrealized loss on marketable securities related to Comstock (2,337,000 ) (4,517,000 ) Unrealized gain on marketable securities 5,935,000 665,000 Net loss on marketable securities $ (1,777,000 ) $ (3,496,000 ) |
OTHER INVESTMENTS, NET
OTHER INVESTMENTS, NET | 12 Months Ended |
Jun. 30, 2018 | |
Other Investments [Abstract] | |
Other Investments Disclosure [Text Block] | NOTE 6 – OTHER INVESTMENTS, NET The Company may also invest, with the approval of the Securities Investment Committee and other Company guidelines, in private investment equity funds and other unlisted securities. Those investments in non-marketable securities are carried at cost on the Company’s balance sheet as part of other investments, net of other than temporary impairment losses. Other investments, net consist of the following: Type June 30, 2018 June 30, 2017 Private equity hedge fund, at cost $ 554,000 $ 782,000 Other investments 259,000 429,000 $ 813,000 $ 1,211,000 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 7 - FAIR VALUE MEASUREMENTS The carrying values of the Company’s financial instruments not required to be carried at fair value on a recurring basis approximate fair value due to their short maturities (i.e., accounts receivable, other assets, accounts payable and other liabilities, due to securities broker and obligations for securities sold) or the nature and terms of the obligation (i.e., other notes payable and mortgage notes payable). The assets measured at fair value on a recurring basis are as follows: As of June 30, 2018 Level 1 Assets: Investment in marketable securities: REITs and real estate companies $ 4,300,000 Corporate bonds 2,282,000 Technology 1,813,000 Healthcare 1,777,000 Communications 1,071,000 Other 2,598,000 $ 13,841,000 As of June 30, 2017 Level 1 Assets: Investment in marketable securities: Basic materials $ 6,222,000 Technology 4,134,000 REITs and real estate companies 1,820,000 Energy 1,345,000 Corporate bonds 1,683,000 Other 1,973,000 $ 17,177,000 The fair values of investments in marketable securities are determined by the most recently traded price of each security at the balance sheet date. Financial assets that are measured at fair value on a non-recurring basis and are not included in the tables above include “Other investments in non-marketable securities,” that were initially measured at cost and have been written down to fair value as a result of impairment or adjusted to record the fair value of new instruments received (i.e., preferred shares) in exchange for old instruments (i.e., debt instruments). The following table shows the fair value hierarchy for these assets measured at fair value on a non-recurring basis as follows: Net loss for the year Assets Level 3 June 30, 2018 ended June 30, 2018 Other non-marketable investments $ 813,000 $ 813,000 $ (242,000 ) Net loss for the year Assets Level 3 June 30, 2017 ended June 30, 2017 Other non-marketable investments $ 1,211,000 $ 1,211,000 $ (178,000 ) For fiscal year ended June 30, 2018, we received distribution from other non-marketable investments of $131,000. Other investments in non-marketable securities are carried at cost net of any impairment loss. The Company has no significant influence or control over the entities that issue these investments. These investments are reviewed on a periodic basis for other-than-temporary impairment. When determining the fair value of these investments on a non-recurring basis, the Company uses valuation techniques such as the market approach and the unobservable inputs include factors such as conversion ratios and the stock price of the underlying convertible instruments. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include but are not limited to: (i) the length of time an investment is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near term prospects of the issuer and (iv) our ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. |
OTHER ASSETS, NET
OTHER ASSETS, NET | 12 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 8 – OTHER ASSETS, NET Other assets consist of the following as of June 30: 2018 2017 Accounts receivable, net $ 1,843,000 $ 1,489,000 Prepaid expenses 490,000 602,000 Miscellaneous assets, net 1,159,000 1,274,000 Tax Refund Receivable 1,693,000 - Total other assets $ 5,185,000 $ 3,365,000 As mentioned in Note 5 – Investment in Marketable Securities, the Company had realized loss of $6,007,000 in the current fiscal year related to the sale of common stock of Comstock. The Company plans to file a carry back claim to carry back this loss to fiscal year ended June 30, 2015. The carry back claim will generate a federal income tax refund of approximately $1,975,000 which is included in other assets in the consolidated balance sheet as of June 30, 2018. |
RELATED PARTY AND OTHER FINANCI
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | 12 Months Ended |
Jun. 30, 2018 | |
Related Party And Other Notes Payable [Abstract] | |
Related Party and Other Financing Transactions [Text Block] | NOTE 9 – RELATED PARTY AND OTHER FINANCING TRANSACTIONS On July 2, 2014, the Company provided the Partnership an unsecured loan in the principal amount of $4,250,000 at 12% per year fixed interest, with a term of 2 years, payable interest only each month. InterGroup received a 3% loan fee. The loan may be prepaid at any time without penalty. The loan was extended to December 31, 2018. The balance of this loan was $3,000,000 and $4,250,000 as of June 30, 2018 and 2017, respectively, and are included in the related party and other note payable in the consolidated balance sheets. Also included in the balance of the related party note payable at June 30, 2018 and 2017 is the obligation to Hilton (Franchisor) in the form of a self-exhausting, interest free development incentive note which will be reduced approximately $316,000 annually through 2030 by Hilton if the Partnership is still a Franchisee with Hilton. As of June 30, 2018 and 2017, the balance of the note was $3,642,000 and $3,958,000, respectively. On February 1, 2017, Justice entered into a Hotel management agreement (“HMA”) with Interstate Management Company, LLC (“Interstate”) to manage the Hotel with an effective takeover date of February 3, 2017. The term of management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for an additional year not to exceed five years in the aggregate subject to certain conditions. The HMA also provides for Interstate to advance a key money incentive fee to the Hotel for capital improvements in the amount of $2,000,000 under certain terms and conditions described in a separate key money agreement. The key money contribution shall be amortized in equal monthly amounts over an eight (8) year period commencing on the second (2 nd As of June 30, 2018, the Company had capital lease obligations outstanding of $1,355,000. These capital leases expire in various years through 2023 at rates ranging from 5.77% to 6.53% per annum. Minimum future lease payments for assets under capital leases as of June 30, 2018 are as follows: For the year ending June 30, 2019 $ 358,000 2020 384,000 2021 384,000 2022 376,000 2023 26,000 Total minimum lease payments 1,528,000 Less interest on capital lease (173,000 ) Present value of future minimum lease payments 1,355,000 Future minimum principle payments for all related party and other financing transactions are as follows: For the year ending June 30, 2019 $ 763,000 2020 935,000 2021 916,000 2022 930,000 2023 592,000 Thereafter 2,954,000 $ 7,090,000 |
MORTGAGE NOTES PAYABLE
MORTGAGE NOTES PAYABLE | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Mortgage Notes Payable Disclosure [Text Block] | NOTE 10 - MORTGAGE NOTES PAYABLE On December 18, 2013: (i) Justice Operating Company, LLC, a Delaware limited liability company (“Operating”), entered into a loan agreement (“Mortgage Loan Agreement”) with Bank of America (“Mortgage Lender”); and (ii) Justice Mezzanine Company, a Delaware limited liability company (“Mezzanine”), entered into a mezzanine loan agreement (“Mezzanine Loan Agreement” and, together with the Mortgage Loan Agreement, the “Loan Agreements”) with ISBI San Francisco Mezz Lender LLC (“Mezzanine Lender” and, together with Mortgage Lender, the “Lenders”). The Partnership is the sole member of Mezzanine, and Mezzanine is the sole member of Operating. The Loan Agreements provide for a $97,000,000 Mortgage Loan and a $20,000,000 Mezzanine Loan. The proceeds of the Loan Agreements were used to fund the redemption of limited partnership interests and the pay-off of the prior mortgage. The Mortgage Loan is secured by the Partnership’s principal asset, the Hilton San Francisco-Financial District (the “Property”). The Mortgage Loan bears an interest rate of 5.275% per annum and matures in January 2024. The term of the loan is 10 years with interest only due in the first three years and principle and interest on the remaining seven years of the loan based on a thirty-year amortization schedule. The Mortgage Loan also requires payments for impounds related to property tax, insurance and capital improvement reserves. As additional security for the Mortgage Loan, there is a limited guaranty (“Mortgage Guaranty”) executed by the Company in favor of Mortgage Lender. The Mezzanine Loan is a secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The Mezzanine Loan bears interest at 9.75% per annum and matures on January 1, 2024. Interest only, payments are due monthly. As additional security for the Mezzanine Loan, there is a limited guaranty executed by the Company in favor of Mezzanine Lender (the “Mezzanine Guaranty” and, together with the Mortgage Guaranty, the “Guaranties”). The Guaranties are limited to what are commonly referred to as “bad boy” acts, including: (i) fraud or intentional misrepresentations; (ii) gross negligence or willful misconduct; (iii) misapplication or misappropriation of rents, security deposits, insurance or condemnation proceeds; and (iv) failure to pay taxes or insurance. The Guaranties are full recourse guaranties under identified circumstances, including failure to maintain “single purpose” status which is a factor in a consolidation of Operating or Mezzanine in a bankruptcy of another person, transfer or encumbrance of the Property in violation of the applicable loan documents, Operating or Mezzanine incurring debts that are not permitted, and the Property becoming subject to a bankruptcy proceeding. Pursuant to the Guaranties, the Partnership is required to maintain a certain minimum net worth and liquidity. As of June 30, 2018 and 2017, the Partnership is in compliance with both requirements. Each of the Loan Agreements contains customary representations and warranties, events of default, reporting requirements, affirmative covenants and negative covenants, which impose restrictions on, among other things, organizational changes of the respective borrower, operations of the Property, agreements with affiliates and third parties. Each of the Loan Agreements also provides for mandatory prepayments under certain circumstances (including casualty or condemnation events) and voluntary prepayments, subject to satisfaction of prescribed conditions set forth in the Loan Agreements. In June 2016, The Company refinanced its $1,929,000 mortgage note payable on its 12-unit apartment complex located in Los Angeles, California and obtained a new mortgage in the amount of $2,300,000. The interest rate on the new mortgage is 3.59% and matures in June 2026. In April 2016, the Company entered into an interest rate agreement on its $923,000 mortgage note payable on its commercial property located in Los Angeles, California in order to settle the variable rate as of March 31, 2016 of 4.22% into a fixed rate of 3.99%, the swap agreement matures in January 2021. A swap is a contractual agreement to exchange interest rate payments. As of June 30, 2018, the fair market value of the swap agreement is immaterial. Each mortgage notes payable is secured by real estate or the Hotel. As of June 30, 2018 and 2017, the mortgage notes payable are summarized as follows: As of June 30, 2018 Number Note Note Property of Units Origination Date Maturity Date Mortgage Balance Interest Rate SF Hotel 544 rooms December 2013 January 2024 $ 95,018,000 5.28 % SF Hotel 544 rooms December 2013 January 2024 20,000,000 9.75 % Mortgage notes payable - Hotel 115,018,000 Debt issuance costs (646,000 ) Total mortgage notes payable - Hotel $ 114,372,000 Florence 157 March 2015 April 2025 $ 3,291,000 3.87 % Las Colinas 358 November 2012 December 2022 17,404,000 3.73 % Morris County 151 July 2012 August 2022 9,068,000 3.51 % Morris County 151 June 2014 August 2022 2,563,000 4.51 % St. Louis 264 May 2013 May 2023 5,491,000 4.05 % Los Angeles 4 September 2012 September 2042 352,000 3.75 % Los Angeles 2 September 2012 September 2042 356,000 3.75 % Los Angeles 1 August 2012 September 2042 383,000 3.75 % Los Angeles 31 November 2010 December 2020 5,048,000 4.85 % Los Angeles 30 August 2007 September 2022 5,907,000 5.97 % Los Angeles 27 November 2010 December 2020 2,843,000 4.85 % Los Angeles 14 April 2011 March 2021 1,665,000 5.89 % Los Angeles 12 June 2016 June 2026 2,218,000 3.59 % Los Angeles 9 April 2011 May 2021 1,331,000 5.60 % Los Angeles 9 April 2011 March 2021 1,135,000 5.89 % Los Angeles 8 July 2013 July 2043 451,000 3.75 % Los Angeles 7 August 2012 September 2042 868,000 3.75 % Los Angeles 4 August 2012 September 2042 594,000 3.75 % Los Angeles 1 September 2012 September 2042 409,000 3.75 % Los Angeles 1 August 2016 August 2018 1,000,000 5.75 % Los Angeles Office April 2016 January 2021 842,000 4.55 % Mortgage notes payable - real estate 63,219,000 Debt issuance costs (346,000 ) Total mortgage notes payable - real estate $ 62,873,000 As of June 30, 2017 Number Note Note Property of Units Origination Date Maturity Date Mortgage Balance Interest Rate SF Hotel 543 rooms December 2013 January 2024 $ 96,343,000 5.28 % SF Hotel 543 rooms December 2013 January 2024 20,000,000 9.75 % Mortgage notes payable - Hotel 116,343,000 Debt issuance costs (728,000 ) Total mortgage notes payable - Hotel $ 115,615,000 Florence 157 March 2015 April 2025 $ 3,357,000 3.87 % Las Colinas 358 November 2012 December 2022 17,818,000 3.73 % Morris County 151 July 2012 August 2022 9,387,000 3.51 % Morris County 151 June 2014 August 2022 2,611,000 4.51 % St. Louis 264 May 2013 May 2023 5,611,000 4.05 % Los Angeles 4 September 2012 September 2042 360,000 3.75 % Los Angeles 2 September 2012 September 2042 364,000 3.75 % Los Angeles 1 August 2012 September 2042 392,000 3.75 % Los Angeles 31 November 2010 December 2020 5,165,000 4.85 % Los Angeles 30 August 2007 September 2022 6,041,000 5.97 % Los Angeles 27 November 2010 December 2020 2,909,000 4.85 % Los Angeles 14 April 2011 March 2021 1,697,000 5.89 % Los Angeles 12 June 2016 June 2026 2,261,000 3.59 % Los Angeles 9 April 2011 May 2021 1,356,000 5.60 % Los Angeles 9 April 2011 March 2021 1,156,000 5.89 % Los Angeles 8 July 2013 July 2043 461,000 3.75 % Los Angeles 7 August 2012 September 2042 890,000 3.75 % Los Angeles 4 August 2012 September 2042 610,000 3.75 % Los Angeles 1 September 2012 September 2042 418,000 3.75 % Los Angeles 1 August 2016 August 2018 1,000,000 5.25 % Los Angeles Office April 2016 January 2021 878,000 3.99 % Mortgage notes payable - real estate 64,742,000 Debt issuance costs (444,000 ) Total mortgage notes payable - real estate $ 64,298,000 Future minimum payments for all mortgage notes payable are as follows: For the year ending June 30, 2019 $ 3,995,000 2020 3,104,000 2021 15,172,000 2022 3,079,000 2023 37,825,000 Thereafter 115,062,000 $ 178,237,000 |
GARAGE OPERATIONS
GARAGE OPERATIONS | 12 Months Ended |
Jun. 30, 2018 | |
Garage Operations And Rental Income [Abstract] | |
Garage Operations And Rental Income [Text Block] | NOTE 11 – GARAGE OPERATIONS The parking garage that is part of the Hotel property was managed by Ace Parking pursuant to a contract with the Partnership. The contract was terminated with an effective termination date of October 4, 2016. The Company began managing the parking garage in-house after the termination of Ace Parking. Effective February 3, 2017, Interstate took over the management of the parking garage along with the Hotel. |
MANAGEMENT AGREEMENTS
MANAGEMENT AGREEMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Management Agreement [Abstract] | |
Management Agreements [Text Block] | NOTE 12 – MANAGEMENT AGREEMENTS Justice had a management agreement with Prism Hospitality L.P. (“Prism”) to perform certain management functions for the Hotel. The management agreement with Prism had an original term of ten years, subject to the Partnership’s right to terminate at any time with or without cause. Effective January 2014, the management agreement with Prism was amended by the Partnership to change the nature of the services provided by Prism and the compensation payable to Prism, among other things. Prism’s management agreement was terminated upon its expiration date of February 3, 2017. Effective December 1, 2013, GMP Management, Inc. (“GMP”), a company owned by a Justice limited partner and a related party, also provided management services for the Partnership pursuant to a management services agreement, with a three-year term, subject to the Partnership’s right to terminate earlier for cause. In June 2016, GMP resigned. After a lengthy review process of several national third-party hotel management companies, on February 1, 2017, Justice entered into a Hotel management agreement (“HMA”) with Interstate Management Company, LLC (“Interstate”) to manage the Hotel with an effective takeover date of February 3, 2017. The term of management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for an additional year not to exceed five years in the aggregate subject to certain conditions. The HMA also provides for Interstate to advance a key money incentive fee to the Hotel for capital improvements in the amount of $2,000,000 under certain terms and conditions described in a separate key money agreement. The key money contribution shall be amortized in equal monthly amounts over an eight (8) year period commencing on the second (2 nd |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 13 – CONCENTRATION OF CREDIT RISK As of June 30, 2018 and 2017, all accounts receivables are related to Hotel customers. The Hotel had two customers that accounted for 32%, or $572,000 of accounts receivable at June 30, 2018, and one customer that accounted for 27%, or $390,000 of accounts receivable at June 30, 2017. The Partnership maintains its cash and cash equivalents and restricted cash with various financial institutions that are monitored regularly for credit quality. At times, such cash and cash equivalents holdings may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) or other federally insured limits. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 14 – INCOME TAXES The provision for the Company’s income tax expense is comprised of the following: For the years ended June 30, 2018 2017 Federal Current tax benefit (expense) $ 1,455,000 $ (333,000 ) Deferred tax expense (3,567,000 ) (168,000 ) (2,112,000 ) (501,000 ) State Current tax expense (227,000 ) (310,000 ) Deferred tax (expense) benefit (717,000 ) 290,000 (944,000 ) (20,000 ) Income Tax Expense $ (3,056,000 ) $ (521,000 ) 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, 2018 2017 Statutory federal tax rate $ (2,218,000 ) $ 440,000 State income taxes, net of federal tax benefit (623,000 ) (25,000 ) Dividend received deduction 24,000 56,000 Valuation allowance (330,000 ) (521,000 ) Other 91,000 (471,000 ) $ (3,056,000 ) $ (521,000 ) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises the future ongoing corporate income tax by, among other things, lowering corporate income tax rates. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a statutory federal rate of approximately 28% for our fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. The decrease in corporate tax rate reduced the Company’s deferred tax assets and liabilities to the lower federal base rate of 21%. As a result, a provisional net credit of $404,000 was included in the income tax expense for the year ended June 30, 2018. The components of the deferred tax asset and liabilities are as follows: June 30, 2018 June 30, 2017 Deferred tax assets: Net operating loss carryforwards $ 7,413,000 $ 14,302,000 Capital loss carryforwards 1,132,000 1,122,000 Investment impairment reserve 1,276,000 1,778,000 Accruals and reserves 766,000 1,182,000 Unrealized loss on marketable securities - 284,000 Tax credits 733,000 516,000 Other 190,000 289,000 Valuation allowance (2,610,000 ) (3,388,000 ) 8,900,000 16,085,000 Deferred tax assets (liabilities): Equity earnings (2,564,000 ) (2,624,000 ) Deferred gains on real estate sale and depreciation (5,638,000 ) (8,816,000 ) Unrealized gains on marketable securities (765,000 ) - State taxes (178,000 ) (538,000 ) (9,145,000 ) (11,978,000 ) Net deferred tax (liability) asset $ (245,000 ) $ 4,107,000 As of June 30, 2018, the Company had estimated net operating losses (NOLs) of $27,633,000 and $18,784,000 for federal and state purposes, respectively. Below is the break-down of the NOLs for Intergroup, Santa Fe and Portsmouth. The carryforward expires in varying amounts through the year 2037. Federal State InterGroup $ - $ - Santa Fe 8,893,000 3,664,000 Portsmouth 18,740,000 15,120,000 $ 27,633,000 $ 18,784,000 Utilization of the net operating loss carryover may be subject a substantial annual limitation if it should be determined that there has been a change in the ownership of more than 50 percent of the value of the Company's stock, pursuant to Section 382 of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating loss carryovers before utilization. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold based on the technical merits of the positions. As of June 30, 2018, it has been determined there are no uncertain tax positions likely to impact the Company. The Partnership files tax returns as prescribed by the tax laws of the jurisdictions in which it operates and is subject to examination by federal, state and local jurisdictions, were applicable. As of June 30, 2018, tax years beginning in fiscal 2012 remain open to examination by the major tax jurisdictions and are subject to the statute of limitations. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 15 – SEGMENT INFORMATION The Company operates in three reportable segments, the operation of the Hotel (“Hotel Operations”), the operation of its multi-family residential properties (“Real Estate Operations”) and the investment of its cash in marketable securities and other investments (“Investment Transactions”). These three operating segments, as presented in the financial statements, reflect how management internally reviews each segment’s performance. Management also makes operational and strategic decisions based on this information. Information below represents reported segments for the years ended June 30, 2018 and 2017. Segment income from Hotel operations consists of the operation of the Hotel and operation of the garage. Segment income from real estate operations consists of the operation of the rental properties. Loss from investments consists of net investment loss, dividend and interest income and investment related expenses. As of and for the year Hotel Real Estate Investment ended June 30, 2018 Operations Operations Transactions Other Total Revenues $ 57,099,000 $ 14,480,000 $ - $ - $ 71,579,000 Segment operating expenses (40,103,000 ) (7,579,000 ) - (3,053,000 ) (50,735,000 ) Segment income (loss) from operations 16,996,000 6,901,000 - (3,053,000 ) 20,844,000 Interest expense - mortgage (7,237,000 ) (2,530,000 ) - - (9,767,000 ) Recovery of legal settlement costs 5,775,000 5,775,000 Depreciation and amortization expense (2,707,000 ) (2,347,000 ) - - (5,054,000 ) Loss from investments - - (2,929,000 ) - (2,929,000 ) Income tax expense - - - (3,056,000 ) (3,056,000 ) Net income (loss) $ 12,827,000 $ 2,024,000 $ (2,929,000 ) $ (6,109,000 ) $ 5,813,000 Total assets $ 58,019,000 $ 53,369,000 $ 14,654,000 $ 5,638,000 $ 131,680,000 As of and for the year Hotel Real Estate Investment ended June 30, 2017 Operations Operations Transactions Other Total Revenues $ 54,334,000 $ 14,671,000 $ - $ - $ 69,005,000 Segment operating expenses (40,717,000 ) (7,166,000 ) - (2,821,000 ) (50,704,000 ) Segment income (loss) from operations 13,617,000 7,505,000 - (2,821,000 ) 18,301,000 Interest expense - mortgage (7,066,000 ) (2,538,000 ) - - (9,604,000 ) Depreciation and amortization expense (3,057,000 ) (2,248,000 ) - - (5,305,000 ) Loss from investments - - (4,547,000 ) - (4,547,000 ) Income tax expense - - - (521,000 ) (521,000 ) Net income (loss) $ 3,494,000 $ 2,719,000 $ (4,547,000 ) $ (3,342,000 ) $ (1,676,000 ) Total assets $ 48,739,000 $ 54,984,000 $ 18,388,000 $ 11,098,000 $ 133,209,000 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 16 – STOCK-BASED COMPENSATION PLANS The Company follows the Statement of Financial Accounting Standards 123 (Revised), "Share-Based Payments" ("SFAS No. 123R"), which was primarily codified into ASC Topic 718 “Compensation – Stock Compensation”, which addresses accounting for equity-based compensation arrangements, including employee stock options and restricted stock units. The Company currently has two equity compensation plans, each of which has been approved by the Company’s stockholders. The InterGroup Corporation 2008 Restricted Stock Unit Plan (the “2008 RSU Plan”) and the Intergroup 2010 Omnibus Employee Incentive Plan are described below. Any outstanding options issued under the Key Employee Plan or the Non-Employee Director Plan remain effective in accordance with their terms. The InterGroup Corporation 2008 Restricted Stock Unit Plan On December 3, 2008, the Board of Directors adopted, subject to shareholder approval, an equity compensation plan for its officers, directors and key employees entitled, The InterGroup Corporation 2008 Restricted Stock Unit Plan (the “2008 RSU Plan”). The 2008 RSU Plan was approved and ratified by the shareholders on February 18, 2009. The 2008 RSU Plan authorizes the Company to issue restricted stock units (“RSUs”) as equity compensation to officers, directors and key employees of the Company on such terms and conditions established by the Compensation Committee of the Company. RSUs are not actual shares of the Company’s common stock, but rather promises to deliver common stock in the future, subject to certain vesting requirements and other restrictions as may be determined by the Committee. Holders of RSUs have no voting rights with respect to the underlying shares of common stock and holders are not entitled to receive any dividends until the RSUs vest and the shares are delivered. No awards of RSUs shall vest until at least six months after shareholder approval of the Plan. Subject to certain adjustments upon changes in capitalization, a maximum of 200,000 shares of the common stock are available for issuance to participants under the 2008 RSU Plan. The 2008 RSU Plan will terminate ten (10) years from December 3, 2008, unless terminated sooner by the Board of Directors. After the 2008 RSU Plan is terminated, no awards may be granted but awards previously granted shall remain outstanding in accordance with the Plan and their applicable terms and conditions. The shares of common stock to be delivered upon the vesting of an award of RSUs have been registered under the Securities Act, pursuant to a registration statement filed on Form S-8 by the Company on June 16, 2010. The grant of RSUs is personal to the recipient and is not transferable. Once received, shares of common stock issuable upon the vesting of the RSUs are freely transferable subject to any requirements of Section 16(b) of the Exchange Act. Under the 2008 RSU Plan, the Compensation Committee also has the power and authority to establish and implement an exchange program that would permit the Company to offer holders of awards issued under prior shareholder approved compensation plans to exchange certain options for new RSUs on terms and conditions to be set by the Committee. The exchange program is designed to increase the retention and motivational value of awards granted under prior plans. In addition, by exchanging options for RSUs, the Company will reduce the number of shares of common stock subject to equity awards, thereby reducing potential dilution to stockholders in the event of significant increases in the value of its common stock. As of June 30, 2018, there were no RSUs outstanding. Intergroup Corporation 2010 Omnibus Employee Incentive Plan On February 24, 2010, the shareholders of the Company approved The Intergroup Corporation 2010 Omnibus Employee Incentive Plan (the “2010 Incentive Plan”), which was formally adopted by the Board of Directors following the annual meeting of shareholders. The Company believes that such awards better align the interests of its employees with those of its shareholders. Option awards are generally granted with an exercise price equal to the market price of the Company’s stock at the date of grant; those option awards generally vest based on 5 years of continuous service. Certain option and share awards provide for accelerated vesting if there is a change in control, as defined in the 2010 Incentive Plan. The 2010 Incentive plan as modified in December 2013, authorizes a total of up to 400,000 shares of common stock to be issued as equity compensation to officers and employees of the Company in an amount and in a manner to be determined by the Compensation Committee in accordance with the terms of the 2010 Incentive Plan. The 2010 Incentive Plan authorizes the awards of several types of equity compensation including stock options, stock appreciation rights, performance awards and other stock-based compensation. The 2010 Incentive Plan will expire on February 23, 2020, if not terminated sooner by the Board of Directors upon recommendation of the Compensation Committee. Any awards issued under the 2010 Incentive Plan will expire under the terms of the grant agreement. The shares of common stock to be issued under the 2010 Incentive Plan have been registered under the Securities Act, pursuant to a registration statement filed on Form S-8 by the Company on June 16, 2010. Once received, shares of common stock issued under the Plan will be freely transferable subject to any requirements of Section 16 (b) of the Exchange Act. On March 16, 2010, the Compensation Committee authorized the grant of 100,000 stock options to the Company’s Chairman, President and Chief Executive, John V. Winfield to purchase up to 100,000 shares of the Company’s common stock pursuant to the 2010 Incentive Plan. The exercise price of the options is $10.30, which is 100% of the fair market value of the Company’s Common Stock as determined by reference to the closing price of the Company’s Common Stock as reported on the NASDAQ Capital Market on March 16, 2010, the date of grant. The options expire ten years from the date of grant, unless earlier terminated in accordance with the terms of the 2010 Incentive Plan. The options shall be subject to both time and market based vesting requirements, each of which must be satisfied before options are fully vested and eligible to be exercised. Pursuant to the time vesting requirements, the options vest over a period of five years, with 20,000 options vesting upon each one-year anniversary of the date of grant. Pursuant to the market vesting requirements, the options vest in increments of 20,000 shares upon each increase of $2.00 or more in the market price of the Company’s common stock above the exercise price ($10.30) of the options. To satisfy this requirement, the common stock must trade at that increased level for a period of at least ten trading days during any one quarter. As of June 30, 2018, all the market vesting requirements have been met. In February 2012, the Compensation Committee awarded 90,000 stock options to the Company’s Chairman, President and Chief Executive, John V. Winfield to purchase up to 90,000 shares of common stock. The per share exercise price of the options is $19.77 which is the fair value of the Company’s Common Stock as reported on NASDAQ on February 28, 2012. The options expire ten years from the date of grant. The options are subject to both time and market based vesting requirements, each of which must be satisfied before the options are fully vested and eligible to be exercised. Pursuant to the time vesting requirements, the options vest over a period of five years, with 18,000 options vesting upon each one-year anniversary of the date of grant. Pursuant to the market vesting requirements, the options vest in increments of 18,000 shares upon each increase of $2.00 or more in the market price of the Company’s common stock above the exercise price ($19.77) of the options. To satisfy this requirement, the common stock must trade at that increased level for a period of at least ten trading days during any one quarter. As of June 30, 2018, 90,000 of these options have met the market vesting requirements. On December 26, 2013, the Compensation Committee authorized, subject to shareholder approval, a grant of non-qualified and incentive stock options for an aggregate of 160,000 shares (the “Option Grant”) to the Company’s President and Chief Executive Officer, John V. Winfield. The stock option grant was approved by shareholders on February 19, 2014. The grant of stock options was made pursuant to, and consistent with, the 2010 Incentive Plan, as proposed to be amended. The non-qualified stock options are for 133,195 shares and have a term of ten years, expiring on December 26, 2023, with an exercise price of $18.65 per share. The incentive stock options are for 26,805 shares and have a term of five years, expiring on December 26, 2018, with an exercise price of $20.52 per share. In accordance with the terms of the 2010 Incentive Plan, the exercise prices were based on 100% and 110%, respectively, of the fair market value of the Company’s common stock as determined by reference to the closing price of the Company’s common stock as reported on the NASDAQ Capital Market on the date of grant. The stock options are subject to time vesting requirements, with 20% of the options vesting annually commencing on the first anniversary of the grant date. In March 2017, the Compensation Committee awarded 18,000 stock options to the Company’s Vice President of Real Estate, David C. Gonzalez, to purchase up to 18,000 shares of common stock. The per share exercise price of the options is $27.30 which is the fair value of the Company’s Common Stock as reported on NASDAQ on March 2, 2017. The options expire ten years from the date of grant. Pursuant to the time vesting requirements, the options vest over a period of five years, with 3,600 options vesting upon each one-year anniversary of the date of grant. During the years ended June 30, 2018 and 2017, the Company recorded stock option compensation expense of $184,000 and $268,000, respectively, related to stock options previously issued. As of June 30, 2018, there was an estimated total of $120,000 of unamortized compensation related to stock options which is expected to be recognized over the weighted-average of 2.73 years. Option-pricing models require the input of various subjective assumptions, including the option’s expected life, estimated forfeiture rates and the price volatility of the underlying stock. The expected stock price volatility is based on analysis of the Company’s stock price history. The Company has selected to use the simplified method for estimating the expected term. The risk-free interest rate is based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. No dividend yield is included as the Company has not issued any dividends and does not anticipate issuing any dividends in the future. The following table summarizes the stock options activity from July 1, 2016 through June 30, 2018: Number of Weighted Average Weighted Average Aggregate Shares Exercise Price Remaining Life Intrinsic Value Outstanding at July 1, 2016 350,000 $ 16.70 5.95 years $ 3,082,000 Granted 18,000 27.30 Exercised - - Forfeited - - Exchanged - - Outstanding at June 30, 2017 368,000 $ 17.21 5.17 years $ 3,046,000 Exercisable at June 30, 2017 286,000 $ 16.19 5.20 years $ 2,635,000 Vested and Expected to vest at June 30, 2017 368,000 $ 17.21 5.17 years $ 3,046,000 Outstanding at July 1, 2017 368,000 $ 17.21 5.17 years $ 3,046,000 Granted - - Exercised - - Forfeited - - Exchanged - - Outstanding at June 30, 2018 368,000 $ 17.21 4.17 years $ 3,505,000 Exercisable at June 30, 2018 318,000 $ 16.47 3.79 years $ 3,257,000 Vested and Expected to vest at June 30, 2018 368,000 $ 17.21 4.17 years $ 3,505,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 17 – RELATED PARTY TRANSACTIONS In connection with the redemption of limited partnership interests of Justice described in Note 2 above, Justice Operating Company, LLC agreed to pay a total of $1,550,000 in fees to certain officers and directors of the Company for services rendered in connection with the redemption of partnership interests, refinancing of Justice’s properties and reorganization of Justice. This agreement was superseded by a letter dated December 11, 2013 from Justice, in which Justice assumed the payment obligations of Justice Operating Company, LLC. The first payment under this agreement was made concurrently with the closing of the loan agreements described in Note 2 above, with the remaining payments due upon Justice Investor’s having adequate available cash as described in the letter. As of June 30, 2018, $200,000 of these fees remain payable. As Chairman of the Securities Investment Committee, the Company’s President and Chief Executive Officer (CEO), John V. Winfield, directs the investment activity of the Company in public and private markets pursuant to authority granted by the Board of Directors. Mr. Winfield also serves as Chief Executive Officer and Chairman of the Portsmouth and Santa Fe and oversees the investment activity of those companies. Depending on certain market conditions and various risk factors, the Chief Executive Officer, Portsmouth and Santa Fe may, at times, invest in the same companies in which the Company invests. Such investments align the interests of the Company with the interests of related parties because it places the personal resources of the Chief Executive Officer and the resources of the Portsmouth and Santa Fe, at risk in substantially the same manner as the Company in connection with investment decisions made on behalf of the Company. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 18 – COMMITMENTS AND CONTINGENCIES Franchise Agreements The Partnership entered into a Franchise License Agreement (the “License Agreement”) with the HLT Existing Franchise Holding LLC (“Hilton”) on November 24, 2004. The term of the License agreement was for an initial period of 15 years commencing on the date the Hotel began operating as a Hilton hotel, with an option to extend the License Agreement for another five years, subject to certain conditions. On June 26, 2015, Operating and Hilton entered into an amended franchise agreement which amongst other things extended the License Agreement through 2030, and also provided the Partnership certain key money cash incentives to be earned through 2030. Since the opening of the Hotel in January 2006, the Partnership has incurred monthly royalties, program fees and information technology recapture charges equal to a percent of the Hotel’s gross room revenue. Fees for such services during fiscal year 2018 and 2017 totaled approximately $3.8 million and $3.3 million, respectively. Hotel Employees Effective February 3, 2017, the Partnership had no employees. On February 3, 2017, Interstate assumed all labor union agreements and retained employees of their choice to continue providing services to the Hotel. As of June 30, 2018, approximately 85% of those employees were represented by one of four labor unions, and their terms of employment were determined under a collective bargaining agreement (“CBA”) to which the Partnership was a party. During the year ended June 30, 2018, the Partnership renewed the CBA for Local 856 (International Brotherhood of Teamsters). The present CBAs for Local 2 (Hotel and Restaurant Employees), Local 39 (Stationary Engineers), and Local 665 (Parking Employees) will expire on August 13, 2018, July 31, 2018, and November 30, 2018, respectively. Negotiation of collective bargaining agreements, which includes not just terms and conditions of employment, but scope and coverage of employees, is a regular and expected course of business operations for the Partnership. The Partnership expects and anticipates that the terms of conditions of CBAs will have an impact on wage and benefit costs, operating expenses, and certain hotel operations during the life of each CBA, and incorporates these principles into its operating and budgetary practices. Legal Matters In 2014, Evon Corporation ("Evon") filed a complaint in San Francisco Superior Court against the Partnership, Portsmouth, and a limited partner and related party asserting contract and tort claims based on Justice’s withholding of $4.7 million to pay the transfer tax described in Item 3 - Legal Proceedings. Evon’s complaint asserted various tort and contract claims against Justice and Portsmouth; and also a tort against a Justice limited partner and related party. In July 2014, Justice paid to Holdings $4.7 million, the amount Evon claimed to be incorrectly withheld. In June 2014, the Partnership sued Evon and related defendants, seeking a judicial declaration as to certain issues arising out of the partnership redemption documents. Evon filed a cross-complaint in December 2014, alleging torts against the Partnership in connection with the redemption transaction. On May 5, 2016, Justice Investors and Portsmouth (parent company) settled these actions via a global settlement agreement. The Partnership agreed to pay Evon $5,575,000. As of January 10, 2017, the Company has satisfied all conditions of the settlement agreement. In March 2017, Justice entered into a settlement agreement with RSUI Indemnity Company (“RSUI”), the insurer for Portsmouth’s Directors and Officers Liability Policies. Under this settlement agreement, Justice received $900,000 from RSUI to resolve allegations that RSUI had committed breach of contract and bad faith in handling a claim. The $900,000 was recorded as a reduction of legal expense for the fiscal year ended June 30, 2017. In April 2014, the Partnership commenced an arbitration action against Glaser Weil Fink Howard Avchen & Shapiro, LLP (formerly known as Glaser Weil Fink Jacobs Howard Avchen & Shapiro, LLP), Brett J. Cohen, Gary N. Jacobs, Janet S. McCloud, Paul B. Salvaty, and Joseph K. Fletcher III (collectively, the “Respondents”) in connection with the redemption transaction. The arbitration alleged legal malpractice against the Respondents and also sought declaratory relief regarding provisions of the option agreement in the redemption transaction and regarding the engagement letter with Respondents. Prior to arbitration proceedings, the parties agreed in principle to settle the matter, and entered into a settlement agreement and mutual general release in April 2018. The Respondents agreed to pay $8,300,000, which was received in May of 2018. $5,575,000 was recorded as a recovery of legal settlement cost and $2,725,000 was recorded as a reduction of legal expense for the fiscal year ended June 30, 2018. The Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business. The Company defends itself vigorously against any such claims. Management does not believe that the impact of such matters will have a material effect on the financial conditions or result of operations when resolved. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 19 – SUBSEQUENT EVENTS In July 2018, Intergroup obtained a revolving $5,000,000 line of credit (“RLOC”). On July 31, 2018, $2,969,000 was drawn from the RLOC to pay off the mortgage note payable at one of the Company’s Los Angeles properties that will undergo a major renovation. The RLOC carries a variable interest rate of 30-day LIBOR plus 3%. Interest is paid on a monthly basis. The RLOC and all accrued and unpaid interest are due in June 2019. |
BUSINESS AND SIGNIFICANT ACCO26
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES: (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Description of the Business The InterGroup Corporation, a Delaware corporation, (“InterGroup” or the “Company”) was formed to buy, develop, operate and dispose of real property and to engage in various investment activities to benefit the Company and its shareholders. As of June 30, 2018, the Company had the power to vote 85.9% of the voting shares of Santa Fe Financial Corporation (“Santa Fe”), a public company (OTCBB: SFEF). This percentage includes the power to vote an approximately 4% interest in the common stock in Santa Fe owned by the Company’s Chairman and President pursuant to a voting trust agreement entered into on June 30, 1998. Santa Fe’s primary business is conducted through the management of its 68.8% owned subsidiary, Portsmouth Square, Inc. (“Portsmouth”), a public company (OTCBB: PRSI). Portsmouth has a 93.1% limited partnership interest in Justice and is the sole general partner. InterGroup also directly owns approximately 13.4% of the common stock of Portsmouth. Justice, through its subsidiaries Justice Operating Company, LLC (“Operating”), Justice Mezzanine Company, LLC (“Mezzanine”), and Kearny Street Parking, LLC (“Parking”) owns a 544-room hotel property located at 750 Kearny Street, San Francisco California, known as the Hilton San Francisco Financial District (the “Hotel”) and related facilities including a five-level underground parking garage. Mezzanine and Parking are both wholly-owned subsidiaries of the Partnership; Operating is a wholly-owned subsidiary of Mezzanine. Mezzanine is the borrower under certain mezzanine indebtedness of Justice, and in December 2013, the Partnership conveyed ownership of the Hotel to Operating. The Hotel is operated by the partnership as a full-service Hilton brand hotel pursuant to a Franchise License Agreement with HLT Franchise Holding LLC (Hilton). Justice had a management agreement with Prism Hospitality L.P. (“Prism”) to perform certain management functions for the Hotel. The management agreement with Prism had an original term of ten years, subject to the Partnership’s right to terminate at any time with or without cause. Effective January 2014, the management agreement with Prism was amended by the Partnership to change the nature of the services provided by Prism and the compensation payable to Prism, among other things. Prism’s management agreement was terminated upon its expiration date of February 3, 2017. Effective December 1, 2013, GMP Management, Inc. (“GMP”), a company owned by a Justice limited partner and a related party, also provided management services for the Partnership pursuant to a management services agreement, with a three-year term, subject to the Partnership’s right to terminate earlier for cause. In June 2016, GMP resigned. After a lengthy review process of several national third-party hotel management companies, on February 1, 2017, Justice entered into a Hotel management agreement (“HMA”) with Interstate Management Company, LLC (“Interstate”) to manage the Hotel with an effective takeover date of February 3, 2017. The term of management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for an additional year not to exceed five years in the aggregate subject to certain conditions. The HMA also provides for Interstate to advance a key money incentive fee to the Hotel for capital improvements in the amount of $2,000,000 under certain terms and conditions described in a separate key money agreement. The $2,000,000 is included in the restricted cash and related party and other notes payable balances in the consolidated balance sheets as of June 30, 2018 and 2017. In addition to the operations of the Hotel, the Company also generates income from the ownership of real estate. Properties include apartment complexes, commercial real estate, and three single-family houses as strategic investments. The properties are located throughout the United States, but are concentrated in Texas and Southern California. The Company also has investments in unimproved real property. All of the Company’s residential rental properties are managed in-house. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and Santa Fe. All significant inter-company transactions and balances have been eliminated. |
Property, Plant and Equipment, Policy [Policy Text Block] | Investment in Hotel, Net Property and equipment are stated at cost. Building improvements are depreciated on a straight-line basis over their useful lives ranging from 3 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 the shorter of its remaining estimated useful life or life of the asset. 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 (expenses). The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with generally accepted accounting principles (“GAAP”). If the carrying amount of the asset, including any intangible assets associated with that asset, exceeds its estimated undiscounted net cash flow, before interest, the Partnership will recognize an impairment loss equal to the difference between its carrying amount and its estimated fair value. If impairment is recognized, the reduced carrying amount of the asset will be accounted for as its new cost. For a depreciable asset, the new cost will be depreciated over the asset’s remaining useful life. Generally, fair values are estimated using discounted cash flow, replacement cost or market comparison analyses. The process of evaluating for impairment requires estimates as to future events and conditions, which are subject to varying market and economic factors. Therefore, it is reasonably possible that a change in estimate resulting from judgments as to future events could occur which would affect the recorded amounts of the property. No impairment losses were recorded for the years ended June 30, 2018 and 2017. |
Investment In Real Estate [Policy Text Block] | Investment in Real Estate, Net Rental properties are stated at cost less accumulated depreciation. Depreciation of rental property is provided on the straight-line method based upon estimated useful lives of 5 to 40 years for buildings and improvements and 5 to 10 years for equipment. Expenditures for repairs and maintenance are charged to expense as incurred and major improvements are capitalized. The Company also reviews its rental property assets for impairment. No impairment losses on the investment in real estate have been recorded for the years ended June 30, 2018 and 2017. The fair value of the tangible assets of an acquired property, which includes land, building and improvements, is determined by valuing the property as if they were vacant, and incorporates costs during the lease-up periods considering current market conditions and costs to execute similar leases such lost rental revenue and tenant improvements. The value of tangible assets is depreciated using straight-line method based upon the assets estimated useful lives. |
Marketable Securities, Policy [Policy Text Block] | Investment in Marketable Securities Marketable securities are stated at fair value as determined by the most recently traded price of each security at the balance sheet date. Marketable securities are classified as trading securities with all unrealized gains and losses on the Company's investment portfolio recorded through the consolidated statements of operations. |
Other Investment Policy [Policy Text Block] | Other Investments, Net Other investments include non-marketable securities (carried at cost, net of any impairments loss) and non-marketable debt instruments. The Company has no significant influence or control over the entities that issue these investments. These investments are reviewed on a periodic basis for other-than-temporary impairment. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include but are not limited to: (i) the length of time an investment is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near term prospects of the issuer and (iv) our ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. For the years ended June 30, 2018 and 2017, the Company recorded impairment losses related to other investments of $200,000 and $178,000, respectively. As of June 30, 2018 and 2017, the allowance for impairment losses was $6,269,000 and $6,154,000, respectively. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an original maturity of three months or less when purchased and are carried at cost, which approximates fair value. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash is comprised of amounts held by lenders for payment of real estate taxes, insurance, replacement and capital addition reserves for the Hotel. It also includes key money received from Interstate that is restricted for capital improvements. |
Other Assets [Policy Text Block] | Other Assets, Net Other assets include prepaid insurance, accounts receivable, franchise fees, tax refund receivable, and other miscellaneous assets. Franchise fees are stated at cost and amortized over the life of the agreement (15 years). Accounts receivable from the Hotel and rental property customers are carried at cost less an allowance for doubtful accounts that is based on management’s assessment of the collectability of accounts receivable. The Company extends unsecured credit to its customers but mitigates the associated credit risk by performing ongoing credit evaluations of its customers. |
Due To And From Broker Dealers [Policy Text Block] | Due to Securities Broker The Company may utilize margin for its marketable securities purchases through the use of standard margin agreements with national brokerage firms. Various securities brokers have advanced funds to the Company for the purchase of marketable securities under standard margin agreements. These advanced funds are recorded as a liability. |
Obligations For Securities Sold Policy [Policy Text Block] | Obligation for Securities Sold Obligation for securities sold represents the fair market value of shares sold with the promise to deliver that security at some future date and the fair market value of shares underlying the written call options with the obligation to deliver that security when and if the option is exercised. The obligation may be satisfied with current holdings of the same security or by subsequent purchases of that security. Unrealized gains and losses from changes in the obligation are included in the statement of operations. |
Accounts Payable And Other Liabilities Policy [Policy Text Block] | Accounts Payable and Other Liabilities Accounts payable and other liabilities include trade payables, advance customer deposits, accrued wages, accrued real estate taxes, and other liabilities. |
Treasury Stock Policy [Policy Text Block] | Treasury Stock The Company records the acquisition of treasury stock under the cost method. During the years ended June 30, 2018 and 2017, the Company purchased 25,527 and 22,002 shares of treasury stock, respectively. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Accounting standards for fair value measurement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1 Level 2 Level 3 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Room revenue is recognized on the date upon which a guest occupies a room and/or utilizes the Hotel’s services. Food and beverage revenues are recognized upon delivery. Garage revenue is recognized when a guest uses the garage space. The Company records a liability for payments collected in advance of revenue recognition. This liability is included in accounts payable and other liabilities. Revenue recognition from apartment rentals commences when an apartment unit is placed in service and occupied by a rent-paying tenant. Apartment units are leased on a short-term basis, with no lease extending beyond one year. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs Advertising costs are expensed as incurred and are included in Hotel operating expenses in the consolidated statements of operations. Advertising costs were $302,000 and $294,000 for the years ended June 30, 2018 and 2017, respectively. |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred income taxes are calculated under the liability method. Deferred income tax assets and liabilities are based on differences between the financial statement and tax basis of assets and liabilities at the current enacted tax rates. Changes in deferred income tax assets and liabilities are included as a component of income tax expense. Changes in deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets where realization is not likely. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold based on the technical merits of the positions. |
Earnings Per Share, Policy [Policy Text Block] | Earnings (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding. The computation of diluted net income per share is similar to the computation of basic net income per share except that the weighted-average number of common shares is increased to include the number of additional common shares that would have been outstanding if potential dilutive common shares had been issued. The Company's only potentially dilutive common shares are stock options. The basic and diluted earnings per share were the same for the year ended June 30, 2017 because the Company had a net loss. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to the recording of allowance for doubtful accounts and allowance for impairment losses which are based on management’s assessment of the collectability of accounts receivable and the fair market value of nonmarketable securities, respectively, as of the end of the fiscal year. Actual results may differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements and U.S. Tax Reform In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08) which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position as right-of-use assets and lease liabilities by lessees. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach and are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. We intend to adopt the standard on July 1, 2019. The Company is currently reviewing the effect of ASU No. 2016-02. On June 16, 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” This ASU modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the timelier recognition of losses. ASU No. 2016-13 will be effective for us as of January 1, 2020. The Company is currently reviewing the effect of ASU No. 2016-13. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises the future ongoing corporate income tax by, among other things, lowering corporate income tax rates. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a statutory federal rate of approximately 28% for our fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. The decrease in corporate tax rate reduced the Company’s deferred tax assets and liabilities to the lower federal base rate of 21%. As a result, a provisional net credit of $404,000 was included in the income tax expense for the year ended June 30, 2018. The changes included in the Tax Act are broad and complex. The final transition impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the company has utilized to calculate the transition impact. The Securities Exchange Commission has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. |
INVESTMENT IN HOTEL, NET (Table
INVESTMENT IN HOTEL, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
Schedule of Real Estate Properties [Table Text Block] | Investment in Hotel consisted of the following as of: Accumulated Net Book June 30, 2018 Cost Depreciation Value Land $ 2,738,000 $ - $ 2,738,000 Furniture and equipment 29,350,000 (25,876,000 ) 3,474,000 Building and improvements 64,336,000 (29,587,000 ) 34,749,000 $ 96,424,000 $ (55,463,000 ) $ 40,961,000 Accumulated Net Book June 30, 2017 Cost Depreciation Value Land $ 2,738,000 $ - $ 2,738,000 Furniture and equipment 27,681,000 (24,569,000 ) 3,112,000 Building and improvements 64,308,000 (28,066,000 ) 36,242,000 $ 94,727,000 $ (52,635,000 ) $ 42,092,000 |
INVESTMENT IN REAL ESTATE, NET
INVESTMENT IN REAL ESTATE, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
Schedule Of Investment In Real Estate [Table Text Block] | Investment in real estate included the following: As of June 30, 2018 2017 Land $ 25,033,000 $ 25,033,000 Buildings, improvements and equipment 67,536,000 66,804,000 Accumulated depreciation (39,200,000 ) (36,853,000 ) $ 53,369,000 $ 54,984,000 |
INVESTMENT IN MARKETABLE SECU29
INVESTMENT IN MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities [Table Text Block] | At June 30, 2018 and 2017, all of the Company’s marketable securities are classified as trading securities. The change in the unrealized gains and losses on these investments are included in earnings. Trading securities are summarized as follows: Gross Gross Net Fair Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Value As of June 30, 2018 Corporate Equities $ 22,388,000 $ 2,450,000 $ (10,997,000 ) $ (8,547,000 ) $ 13,841,000 As of June 30, 2017 Corporate Equities $ 29,170,000 $ 1,768,000 $ (13,761,000 ) $ (11,993,000 ) $ 17,177,000 |
Gain (Loss) on Securities [Table Text Block] | Net loss on marketable securities on the statement of operations is comprised of realized and unrealized gains (losses). Below is the composition of the two components for the years ended June 30, 2018 and 2017, respectively. For the year ended June 30, 2018 2017 Realized loss on marketable securities related to Comstock $ (6,007,000 ) $ - Realized gain on marketable securities 632,000 356,000 Unrealized loss on marketable securities related to Comstock (2,337,000 ) (4,517,000 ) Unrealized gain on marketable securities 5,935,000 665,000 Net loss on marketable securities $ (1,777,000 ) $ (3,496,000 ) |
OTHER INVESTMENTS, NET (Tables)
OTHER INVESTMENTS, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Investments [Abstract] | |
Other Investments Not Readily Marketable [Table Text Block] | Other investments, net consist of the following: Type June 30, 2018 June 30, 2017 Private equity hedge fund, at cost $ 554,000 $ 782,000 Other investments 259,000 429,000 $ 813,000 $ 1,211,000 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The assets measured at fair value on a recurring basis are as follows: As of June 30, 2018 Level 1 Assets: Investment in marketable securities: REITs and real estate companies $ 4,300,000 Corporate bonds 2,282,000 Technology 1,813,000 Healthcare 1,777,000 Communications 1,071,000 Other 2,598,000 $ 13,841,000 As of June 30, 2017 Level 1 Assets: Investment in marketable securities: Basic materials $ 6,222,000 Technology 4,134,000 REITs and real estate companies 1,820,000 Energy 1,345,000 Corporate bonds 1,683,000 Other 1,973,000 $ 17,177,000 |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table shows the fair value hierarchy for these assets measured at fair value on a non-recurring basis as follows: Net loss for the year Assets Level 3 June 30, 2018 ended June 30, 2018 Other non-marketable investments $ 813,000 $ 813,000 $ (242,000 ) Net loss for the year Assets Level 3 June 30, 2017 ended June 30, 2017 Other non-marketable investments $ 1,211,000 $ 1,211,000 $ (178,000 ) |
OTHER ASSETS, NET (Tables)
OTHER ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets [Table Text Block] | Other assets consist of the following as of June 30: 2018 2017 Accounts receivable, net $ 1,843,000 $ 1,489,000 Prepaid expenses 490,000 602,000 Miscellaneous assets, net 1,159,000 1,274,000 Tax Refund Receivable 1,693,000 - Total other assets $ 5,185,000 $ 3,365,000 |
RELATED PARTY AND OTHER FINAN33
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Minimum future lease payments for assets under capital leases as of June 30, 2018 are as follows: For the year ending June 30, 2019 $ 358,000 2020 384,000 2021 384,000 2022 376,000 2023 26,000 Total minimum lease payments 1,528,000 Less interest on capital lease (173,000 ) Present value of future minimum lease payments 1,355,000 |
Notes Payable, Other Payables [Member] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Future minimum principle payments for all related party and other financing transactions are as follows: For the year ending June 30, 2019 $ 763,000 2020 935,000 2021 916,000 2022 930,000 2023 592,000 Thereafter 2,954,000 $ 7,090,000 |
MORTGAGE NOTES PAYABLE (Tables)
MORTGAGE NOTES PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Of Mortgage Notes Payable [Table Text Block] | Each mortgage notes payable is secured by real estate or the Hotel. As of June 30, 2018 and 2017, the mortgage notes payable are summarized as follows: As of June 30, 2018 Number Note Note Property of Units Origination Date Maturity Date Mortgage Balance Interest Rate SF Hotel 544 rooms December 2013 January 2024 $ 95,018,000 5.28 % SF Hotel 544 rooms December 2013 January 2024 20,000,000 9.75 % Mortgage notes payable - Hotel 115,018,000 Debt issuance costs (646,000 ) Total mortgage notes payable - Hotel $ 114,372,000 Florence 157 March 2015 April 2025 $ 3,291,000 3.87 % Las Colinas 358 November 2012 December 2022 17,404,000 3.73 % Morris County 151 July 2012 August 2022 9,068,000 3.51 % Morris County 151 June 2014 August 2022 2,563,000 4.51 % St. Louis 264 May 2013 May 2023 5,491,000 4.05 % Los Angeles 4 September 2012 September 2042 352,000 3.75 % Los Angeles 2 September 2012 September 2042 356,000 3.75 % Los Angeles 1 August 2012 September 2042 383,000 3.75 % Los Angeles 31 November 2010 December 2020 5,048,000 4.85 % Los Angeles 30 August 2007 September 2022 5,907,000 5.97 % Los Angeles 27 November 2010 December 2020 2,843,000 4.85 % Los Angeles 14 April 2011 March 2021 1,665,000 5.89 % Los Angeles 12 June 2016 June 2026 2,218,000 3.59 % Los Angeles 9 April 2011 May 2021 1,331,000 5.60 % Los Angeles 9 April 2011 March 2021 1,135,000 5.89 % Los Angeles 8 July 2013 July 2043 451,000 3.75 % Los Angeles 7 August 2012 September 2042 868,000 3.75 % Los Angeles 4 August 2012 September 2042 594,000 3.75 % Los Angeles 1 September 2012 September 2042 409,000 3.75 % Los Angeles 1 August 2016 August 2018 1,000,000 5.75 % Los Angeles Office April 2016 January 2021 842,000 4.55 % Mortgage notes payable - real estate 63,219,000 Debt issuance costs (346,000 ) Total mortgage notes payable - real estate $ 62,873,000 As of June 30, 2017 Number Note Note Property of Units Origination Date Maturity Date Mortgage Balance Interest Rate SF Hotel 543 rooms December 2013 January 2024 $ 96,343,000 5.28 % SF Hotel 543 rooms December 2013 January 2024 20,000,000 9.75 % Mortgage notes payable - Hotel 116,343,000 Debt issuance costs (728,000 ) Total mortgage notes payable - Hotel $ 115,615,000 Florence 157 March 2015 April 2025 $ 3,357,000 3.87 % Las Colinas 358 November 2012 December 2022 17,818,000 3.73 % Morris County 151 July 2012 August 2022 9,387,000 3.51 % Morris County 151 June 2014 August 2022 2,611,000 4.51 % St. Louis 264 May 2013 May 2023 5,611,000 4.05 % Los Angeles 4 September 2012 September 2042 360,000 3.75 % Los Angeles 2 September 2012 September 2042 364,000 3.75 % Los Angeles 1 August 2012 September 2042 392,000 3.75 % Los Angeles 31 November 2010 December 2020 5,165,000 4.85 % Los Angeles 30 August 2007 September 2022 6,041,000 5.97 % Los Angeles 27 November 2010 December 2020 2,909,000 4.85 % Los Angeles 14 April 2011 March 2021 1,697,000 5.89 % Los Angeles 12 June 2016 June 2026 2,261,000 3.59 % Los Angeles 9 April 2011 May 2021 1,356,000 5.60 % Los Angeles 9 April 2011 March 2021 1,156,000 5.89 % Los Angeles 8 July 2013 July 2043 461,000 3.75 % Los Angeles 7 August 2012 September 2042 890,000 3.75 % Los Angeles 4 August 2012 September 2042 610,000 3.75 % Los Angeles 1 September 2012 September 2042 418,000 3.75 % Los Angeles 1 August 2016 August 2018 1,000,000 5.25 % Los Angeles Office April 2016 January 2021 878,000 3.99 % Mortgage notes payable - real estate 64,742,000 Debt issuance costs (444,000 ) Total mortgage notes payable - real estate $ 64,298,000 |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Future minimum payments for all mortgage notes payable are as follows: For the year ending June 30, 2019 $ 3,995,000 2020 3,104,000 2021 15,172,000 2022 3,079,000 2023 37,825,000 Thereafter 115,062,000 $ 178,237,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for the Company’s income tax expense is comprised of the following: For the years ended June 30, 2018 2017 Federal Current tax benefit (expense) $ 1,455,000 $ (333,000 ) Deferred tax expense (3,567,000 ) (168,000 ) (2,112,000 ) (501,000 ) State Current tax expense (227,000 ) (310,000 ) Deferred tax (expense) benefit (717,000 ) 290,000 (944,000 ) (20,000 ) Income Tax Expense $ (3,056,000 ) $ (521,000 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 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, 2018 2017 Statutory federal tax rate $ (2,218,000 ) $ 440,000 State income taxes, net of federal tax benefit (623,000 ) (25,000 ) Dividend received deduction 24,000 56,000 Valuation allowance (330,000 ) (521,000 ) Other 91,000 (471,000 ) $ (3,056,000 ) $ (521,000 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of the deferred tax asset and liabilities are as follows: June 30, 2018 June 30, 2017 Deferred tax assets: Net operating loss carryforwards $ 7,413,000 $ 14,302,000 Capital loss carryforwards 1,132,000 1,122,000 Investment impairment reserve 1,276,000 1,778,000 Accruals and reserves 766,000 1,182,000 Unrealized loss on marketable securities - 284,000 Tax credits 733,000 516,000 Other 190,000 289,000 Valuation allowance (2,610,000 ) (3,388,000 ) 8,900,000 16,085,000 Deferred tax assets (liabilities): Equity earnings (2,564,000 ) (2,624,000 ) Deferred gains on real estate sale and depreciation (5,638,000 ) (8,816,000 ) Unrealized gains on marketable securities (765,000 ) - State taxes (178,000 ) (538,000 ) (9,145,000 ) (11,978,000 ) Net deferred tax (liability) asset $ (245,000 ) $ 4,107,000 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | As of June 30, 2018, the Company had estimated net operating losses (NOLs) of $27,633,000 and $18,784,000 for federal and state purposes, respectively. Below is the break-down of the NOLs for Intergroup, Santa Fe and Portsmouth. The carryforward expires in varying amounts through the year 2037. Federal State InterGroup $ - $ - Santa Fe 8,893,000 3,664,000 Portsmouth 18,740,000 15,120,000 $ 27,633,000 $ 18,784,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Loss from investments consists of net investment loss, dividend and interest income and investment related expenses. As of and for the year Hotel Real Estate Investment ended June 30, 2018 Operations Operations Transactions Other Total Revenues $ 57,099,000 $ 14,480,000 $ - $ - $ 71,579,000 Segment operating expenses (40,103,000 ) (7,579,000 ) - (3,053,000 ) (50,735,000 ) Segment income (loss) from operations 16,996,000 6,901,000 - (3,053,000 ) 20,844,000 Interest expense - mortgage (7,237,000 ) (2,530,000 ) - - (9,767,000 ) Recovery of legal settlement costs 5,775,000 5,775,000 Depreciation and amortization expense (2,707,000 ) (2,347,000 ) - - (5,054,000 ) Loss from investments - - (2,929,000 ) - (2,929,000 ) Income tax expense - - - (3,056,000 ) (3,056,000 ) Net income (loss) $ 12,827,000 $ 2,024,000 $ (2,929,000 ) $ (6,109,000 ) $ 5,813,000 Total assets $ 58,019,000 $ 53,369,000 $ 14,654,000 $ 5,638,000 $ 131,680,000 As of and for the year Hotel Real Estate Investment ended June 30, 2017 Operations Operations Transactions Other Total Revenues $ 54,334,000 $ 14,671,000 $ - $ - $ 69,005,000 Segment operating expenses (40,717,000 ) (7,166,000 ) - (2,821,000 ) (50,704,000 ) Segment income (loss) from operations 13,617,000 7,505,000 - (2,821,000 ) 18,301,000 Interest expense - mortgage (7,066,000 ) (2,538,000 ) - - (9,604,000 ) Depreciation and amortization expense (3,057,000 ) (2,248,000 ) - - (5,305,000 ) Loss from investments - - (4,547,000 ) - (4,547,000 ) Income tax expense - - - (521,000 ) (521,000 ) Net income (loss) $ 3,494,000 $ 2,719,000 $ (4,547,000 ) $ (3,342,000 ) $ (1,676,000 ) Total assets $ 48,739,000 $ 54,984,000 $ 18,388,000 $ 11,098,000 $ 133,209,000 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes the stock options activity from July 1, 2016 through June 30, 2018: Number of Weighted Average Weighted Average Aggregate Shares Exercise Price Remaining Life Intrinsic Value Outstanding at July 1, 2016 350,000 $ 16.70 5.95 years $ 3,082,000 Granted 18,000 27.30 Exercised - - Forfeited - - Exchanged - - Outstanding at June 30, 2017 368,000 $ 17.21 5.17 years $ 3,046,000 Exercisable at June 30, 2017 286,000 $ 16.19 5.20 years $ 2,635,000 Vested and Expected to vest at June 30, 2017 368,000 $ 17.21 5.17 years $ 3,046,000 Outstanding at July 1, 2017 368,000 $ 17.21 5.17 years $ 3,046,000 Granted - - Exercised - - Forfeited - - Exchanged - - Outstanding at June 30, 2018 368,000 $ 17.21 4.17 years $ 3,505,000 Exercisable at June 30, 2018 318,000 $ 16.47 3.79 years $ 3,257,000 Vested and Expected to vest at June 30, 2018 368,000 $ 17.21 4.17 years $ 3,505,000 |
BUSINESS AND SIGNIFICANT ACCO38
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES: (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 93.10% | ||
Allowance For Impairment Losses | $ 6,269,000 | $ 6,154,000 | |
Other than Temporary Impairment Losses, Investments | 200,000 | 178,000 | |
Advertising Expense | 302,000 | 294,000 | |
Key Money Incentive Advance To Related Party | $ 2,000,000 | $ 2,000,000 | |
Treasury Stock, Shares, Acquired | 25,527 | 22,002 | |
Effective Income Tax Rate Reconciliation, Percent | 28.00% | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 404,000 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Scenario, Plan [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Effective Income Tax Rate Reconciliation, Percent | 21.00% | ||
Portsmouth [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 68.80% | ||
Noncontrolling Interest, Ownership Percentage by Parent | 13.40% | ||
Franchise Fees [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Other Assets Amortization Period | 15 years | ||
Maximum [Member] | Building Improvements [Member] | Hotel Operations [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 39 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | Hotel Operations [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Maximum [Member] | Building and Building Improvements [Member] | Real Estate Operations [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Maximum [Member] | Equipment [Member] | Real Estate Operations [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Minimum [Member] | Building Improvements [Member] | Hotel Operations [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum [Member] | Furniture and Fixtures [Member] | Hotel Operations [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum [Member] | Building and Building Improvements [Member] | Real Estate Operations [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | Equipment [Member] | Real Estate Operations [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Santa Fe [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 85.90% | ||
Percentage Of Voting Shares In Common Stock | 4.00% |
INVESTMENT IN HOTEL, NET (Detai
INVESTMENT IN HOTEL, NET (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Net Book Value | $ 40,961,000 | $ 42,092,000 |
Hotel [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 96,424,000 | 94,727,000 |
Accumulated Depreciation | (55,463,000) | (52,635,000) |
Net Book Value | 40,961,000 | 42,092,000 |
Land [Member] | Hotel [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 2,738,000 | 2,738,000 |
Accumulated Depreciation | 0 | 0 |
Net Book Value | 2,738,000 | 2,738,000 |
Furniture and equipment [Member] | Hotel [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 29,350,000 | 27,681,000 |
Accumulated Depreciation | (25,876,000) | (24,569,000) |
Net Book Value | 3,474,000 | 3,112,000 |
Building and improvements [Member] | Hotel [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 64,336,000 | 64,308,000 |
Accumulated Depreciation | (29,587,000) | (28,066,000) |
Net Book Value | $ 34,749,000 | $ 36,242,000 |
INVESTMENT IN REAL ESTATE, NE40
INVESTMENT IN REAL ESTATE, NET (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, net | $ 53,369,000 | $ 54,984,000 |
Apartment Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | (39,200,000) | (36,853,000) |
Apartment Building [Member] | Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 25,033,000 | 25,033,000 |
Apartment Building [Member] | Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 67,536,000 | $ 66,804,000 |
INVESTMENT IN MARKETABLE SECU41
INVESTMENT IN MARKETABLE SECURITIES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Gross Unrealized Gain | $ 5,935,000 | $ 665,000 |
Net Unrealized Loss | 3,598,000 | (3,852,000) |
Fair Value | 13,841,000 | 17,177,000 |
Corporate Equities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 22,388,000 | 29,170,000 |
Gross Unrealized Gain | 2,450,000 | 1,768,000 |
Gross Unrealized Loss | (10,997,000) | (13,761,000) |
Net Unrealized Loss | (8,547,000) | (11,993,000) |
Fair Value | $ 13,841,000 | $ 17,177,000 |
INVESTMENT IN MARKETABLE SECU42
INVESTMENT IN MARKETABLE SECURITIES (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Realized loss on marketable securities related to Comstock | $ (6,007,000) | $ 0 |
Realized gain on marketable securities | 632,000 | 356,000 |
Unrealized loss on marketable securities related to Comstock | (2,337,000) | (4,517,000) |
Unrealized gain on marketable securities | 5,935,000 | 665,000 |
Net loss on marketable securities | $ (1,777,000) | $ (3,496,000) |
INVESTMENT IN MARKETABLE SECU43
INVESTMENT IN MARKETABLE SECURITIES (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 10,819,000 | $ 13,294,000 |
Percentage Of Investment Marketable Securities | 7.00% | 28.00% |
OTHER INVESTMENTS, NET (Details
OTHER INVESTMENTS, NET (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Other Investment [Line Items] | ||
Other investments, net | $ 813,000 | $ 1,211,000 |
Private equity hedge fund, at cost [Member] | ||
Other Investment [Line Items] | ||
Other investments, net | 554,000 | 782,000 |
Other Investments [Member] | ||
Other Investment [Line Items] | ||
Other investments, net | $ 259,000 | $ 429,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Assets: | ||
Investment in marketable securities | $ 13,841,000 | $ 17,177,000 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Investment in marketable securities | 13,841,000 | 17,177,000 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | REITs and real estate companies [Member] | ||
Assets: | ||
Investment in marketable securities | 4,300,000 | 1,820,000 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | ||
Assets: | ||
Investment in marketable securities | 2,282,000 | 1,683,000 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Technology [Member] | ||
Assets: | ||
Investment in marketable securities | 1,813,000 | 4,134,000 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Healthcare [Member] | ||
Assets: | ||
Investment in marketable securities | 1,777,000 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Communications [Member] | ||
Assets: | ||
Investment in marketable securities | 1,071,000 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Other [Member] | ||
Assets: | ||
Investment in marketable securities | $ 2,598,000 | 1,973,000 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Basic materials [Member] | ||
Assets: | ||
Investment in marketable securities | 6,222,000 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Energy [Member] | ||
Assets: | ||
Investment in marketable securities | $ 1,345,000 |
FAIR VALUE MEASUREMENTS (Deta46
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net loss | $ (242,000) | $ (178,000) |
Other Investments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other non-marketable investments | 813,000 | 1,211,000 |
Other Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other non-marketable investments | $ 813,000 | $ 1,211,000 |
FAIR VALUE MEASUREMENTS (Deta47
FAIR VALUE MEASUREMENTS (Details Textual) | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Proceeds from Sale of Other Investments | $ 131,000 |
OTHER ASSETS, NET (Details)
OTHER ASSETS, NET (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Accounts receivable, net | $ 1,843,000 | $ 1,489,000 |
Prepaid expenses | 490,000 | 602,000 |
Miscellaneous assets, net | 1,159,000 | 1,274,000 |
Tax Refund Receivable | 1,693,000 | 0 |
Total other assets | $ 5,185,000 | $ 3,365,000 |
OTHER ASSETS, NET (Details Text
OTHER ASSETS, NET (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Trading Securities, Realized Loss | $ 6,007,000 | $ 0 |
Income Taxes Receivable | 1,693,000 | $ 0 |
Federal [Member] | ||
Income Taxes Receivable | $ 1,975,000 |
RELATED PARTY AND OTHER FINAN50
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Details) | Jun. 30, 2018USD ($) |
2,019 | $ 358,000 |
2,020 | 384,000 |
2,021 | 384,000 |
2,022 | 376,000 |
2,023 | 26,000 |
Total minimum lease payments | 1,528,000 |
Less interest on capital lease | (173,000) |
Present value of future minimum lease payments | $ 1,355,000 |
RELATED PARTY AND OTHER FINAN51
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Details 1) - Notes Payable, Other Payables [Member] | Jun. 30, 2018USD ($) |
2,019 | $ 763,000 |
2,020 | 935,000 |
2,021 | 916,000 |
2,022 | 930,000 |
2,023 | 592,000 |
Thereafter | 2,954,000 |
Long-term Debt | $ 7,090,000 |
RELATED PARTY AND OTHER FINAN52
RELATED PARTY AND OTHER FINANCING TRANSACTIONS (Details Textual) - USD ($) | Jul. 02, 2014 | Jun. 30, 2018 | Jun. 30, 2017 |
Key Money Incentive Advance To Related Party | $ 2,000,000 | $ 2,000,000 | |
Management Services Agreement Term | 10 years | ||
Capital Lease Obligations | $ 1,355,000 | 0 | |
Long Term Debt Expiration Terms | These capital leases expire in various years through 2023 at rates ranging from 5.77% to 6.53% per annum. | ||
Other Notes Payable | $ 5,735,000 | 6,112,000 | |
Unsecured Debt [Member] | |||
Other Notes Payable | $ 3,000,000 | 4,250,000 | |
Intergroup [Member] | |||
Debt Instrument, Face Amount | $ 4,250,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | ||
Debt Instrument, Term | 2 years | ||
Debt Instrument Fee Percentage | 3.00% | ||
Debt Instrument, Maturity Date | Dec. 31, 2018 | ||
Interest Free Development Incentive Note [Member] | |||
Notes Reduction | $ 316,000 | 316,000 | |
Other Notes Payable | $ 3,642,000 | $ 3,958,000 |
MORTGAGE NOTES PAYABLE (Details
MORTGAGE NOTES PAYABLE (Details) | 12 Months Ended | |
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Debt Disclosure [Line Items] | ||
Maturity Date | December 2,020 | |
Total mortgage notes payable - Hotel | $ 114,372,000 | $ 115,615,000 |
Mortgage notes payable - real estate | 3,357,000 | |
Total mortgage notes payable - real estate | 62,873,000 | 64,298,000 |
Mortgage Notes Payable Real Estate [Member] | ||
Debt Disclosure [Line Items] | ||
Mortgage notes payable - real estate | 63,219,000 | 64,742,000 |
Debt issuance costs | (346,000) | (444,000) |
Total mortgage notes payable - real estate | 62,873,000 | 64,298,000 |
Mortgage Notes Payable Hotel [Member] | ||
Debt Disclosure [Line Items] | ||
Mortgage notes payable - Hotel | 115,018,000 | 116,343,000 |
Total mortgage notes payable - Hotel | 114,372,000 | 115,615,000 |
Debt issuance costs | $ (646,000) | $ (728,000) |
5.28% SF Hotel [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 544 | 543 |
Origination Date | December 2,013 | December 2,013 |
Maturity Date | January 2,024 | January 2,024 |
Interest Rate | 5.28% | 5.28% |
Mortgage notes payable - Hotel | $ 95,018,000 | $ 96,343,000 |
9.75% SF Hotel [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 544 | 543 |
Origination Date | December 2,013 | December 2,013 |
Maturity Date | January 2,024 | January 2,024 |
Interest Rate | 9.75% | 9.75% |
Mortgage notes payable - Hotel | $ 20,000,000 | $ 20,000,000 |
3.87% Florence [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 157 | 157 |
Origination Date | March 2,015 | March 2,015 |
Maturity Date | April 2025 | April 2025 |
Interest Rate | 3.87% | 3.87% |
Mortgage notes payable - real estate | $ 3,291,000 | $ 3,357,000 |
3.73% Las Colinas [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 358 | 358 |
Origination Date | November 2,012 | November 2,012 |
Maturity Date | December 2,022 | December 2,022 |
Interest Rate | 3.73% | 3.73% |
Mortgage notes payable - real estate | $ 17,404,000 | $ 17,818,000 |
3.51% Morris County [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 151 | 151 |
Origination Date | July 2,012 | July 2,012 |
Maturity Date | August 2,022 | August 2,022 |
Interest Rate | 3.51% | 3.51% |
Mortgage notes payable - real estate | $ 9,068,000 | $ 9,387,000 |
4.51% Morris County [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 151 | 151 |
Origination Date | June 2,014 | June 2,014 |
Maturity Date | August 2,022 | August 2,022 |
Interest Rate | 4.51% | 4.51% |
Mortgage notes payable - real estate | $ 2,563,000 | $ 2,611,000 |
4.05% St. Louis [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 264 | 264 |
Origination Date | May 2,013 | May 2,013 |
Maturity Date | May 2,023 | May 2,023 |
Interest Rate | 4.05% | 4.05% |
Mortgage notes payable - real estate | $ 5,491,000 | $ 5,611,000 |
3.75% Los Angeles One [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 4 | 4 |
Origination Date | September 2,012 | September 2,012 |
Maturity Date | September 2,042 | September 2,042 |
Interest Rate | 3.75% | 3.75% |
Mortgage notes payable - real estate | $ 352,000 | $ 360,000 |
3.75% Los Angeles Two [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 2 | 2 |
Origination Date | September 2,012 | September 2,012 |
Maturity Date | September 2,042 | September 2,042 |
Interest Rate | 3.75% | 3.75% |
Mortgage notes payable - real estate | $ 356,000 | $ 364,000 |
3.75% Los Angeles Three [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 1 | 1 |
Origination Date | August 2,012 | August 2,012 |
Maturity Date | September 2,042 | September 2,042 |
Interest Rate | 3.75% | 3.75% |
Mortgage notes payable - real estate | $ 383,000 | $ 392,000 |
4.85% Los Angeles [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 31 | 31 |
Origination Date | November 2,010 | November 2,010 |
Maturity Date | December 2,020 | December 2,020 |
Interest Rate | 4.85% | 4.85% |
Mortgage notes payable - real estate | $ 5,048,000 | $ 5,165,000 |
5.97% Los Angeles [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 30 | 30 |
Origination Date | August 2,007 | August 2,007 |
Maturity Date | September 2,022 | September 2,022 |
Interest Rate | 5.97% | 5.97% |
Mortgage notes payable - real estate | $ 5,907,000 | $ 6,041,000 |
4.85% Los Angeles Two [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 27 | 27 |
Origination Date | November 2,010 | November 2,010 |
Maturity Date | December 2,020 | |
Interest Rate | 4.85% | 4.85% |
Mortgage notes payable - real estate | $ 2,843,000 | $ 2,909,000 |
5.89% Los Angeles [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 14 | 14 |
Origination Date | April 2011 | April 2011 |
Maturity Date | March 2,021 | March 2,021 |
Interest Rate | 5.89% | 5.89% |
Mortgage notes payable - real estate | $ 1,665,000 | $ 1,697,000 |
3.59% Los Angeles [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 12 | 12 |
Origination Date | June 2,016 | June 2,016 |
Maturity Date | June 2,026 | June 2,026 |
Interest Rate | 3.59% | 3.59% |
Mortgage notes payable - real estate | $ 2,218,000 | $ 2,261,000 |
5.6% Los Angeles [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 9 | 9 |
Origination Date | April 2011 | April 2011 |
Maturity Date | May 2,021 | May 2,021 |
Interest Rate | 5.60% | 5.60% |
Mortgage notes payable - real estate | $ 1,331,000 | $ 1,356,000 |
5.89% Los Angeles Two [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 9 | 9 |
Origination Date | April 2011 | April 2011 |
Maturity Date | March 2,021 | March 2,021 |
Interest Rate | 5.89% | 5.89% |
Mortgage notes payable - real estate | $ 1,135,000 | $ 1,156,000 |
3.75% Los Angeles Four [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 8 | 8 |
Origination Date | July 2,013 | July 2,013 |
Maturity Date | July 2,043 | July 2,043 |
Interest Rate | 3.75% | 3.75% |
Mortgage notes payable - real estate | $ 451,000 | $ 461,000 |
3.75% Los Angeles Five [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 7 | 7 |
Origination Date | August 2,012 | August 2,012 |
Maturity Date | September 2,042 | September 2,042 |
Interest Rate | 3.75% | 3.75% |
Mortgage notes payable - real estate | $ 868,000 | $ 890,000 |
3.75% Los Angeles Six [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 4 | 4 |
Origination Date | August 2,012 | August 2,012 |
Maturity Date | September 2,042 | September 2,042 |
Interest Rate | 3.75% | 3.75% |
Mortgage notes payable - real estate | $ 594,000 | $ 610,000 |
3.75% Los Angeles Seven [Member] | ||
Debt Disclosure [Line Items] | ||
Origination Date | September 2,012 | September 2,012 |
Maturity Date | September 2,042 | September 2,042 |
Interest Rate | 3.75% | 3.75% |
Mortgage notes payable - real estate | $ 409,000 | $ 418,000 |
3.99% Los Angeles [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 1 | |
Interest Rate | 3.99% | |
Mortgage notes payable - real estate | $ 878,000 | |
5.75% Los Angeles[Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 1 | 1 |
Origination Date | August 2,016 | August 2,016 |
Maturity Date | August 2,018 | August 2,018 |
Interest Rate | 5.75% | 5.25% |
Mortgage notes payable - real estate | $ 1,000,000 | $ 1,000,000 |
4.55 % Loss Angeles [Member] | ||
Debt Disclosure [Line Items] | ||
Number of Units | 1 | |
Origination Date | April 2,016 | April 2016 |
Maturity Date | January 2,021 | January 2,021 |
Interest Rate | 4.55% | |
Mortgage notes payable - real estate | $ 842,000 |
MORTGAGE NOTES PAYABLE (Detai54
MORTGAGE NOTES PAYABLE (Details 1) - Mortgage Notes [Member] | Jun. 30, 2018USD ($) |
Mortgage Notes Payable [Line Items] | |
2,019 | $ 3,995,000 |
2,020 | 3,104,000 |
2,021 | 15,172,000 |
2,022 | 3,079,000 |
2,023 | 37,825,000 |
Thereafter | 115,062,000 |
Long-term Debt | $ 178,237,000 |
MORTGAGE NOTES PAYABLE (Detai55
MORTGAGE NOTES PAYABLE (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2016 | |
Mortgage Notes Payable [Line Items] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Periodic Payment Terms, Description | The term of the loan is 10 years with interest only due in the first three years and principle and interest on the remaining seven years of the loan based on a thirty-year amortization schedule. The Mortgage Loan also requires payments for impounds related to property tax, insurance and capital improvement reserves. | ||
Mortgage Loans [Member] | |||
Mortgage Notes Payable [Line Items] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 97,000,000 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 5.275% | ||
Mezzanine Loan [Member] | |||
Mortgage Notes Payable [Line Items] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 20,000,000 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 9.75% | ||
Maturity Date | January 1, 2024 | ||
Commercial Property [Member] | |||
Mortgage Notes Payable [Line Items] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 923,000 | ||
Maturity Date | January 2,021 | ||
Derivative, Variable Interest Rate | 4.22% | ||
Derivative, Fixed Interest Rate | 3.99% | ||
12-Unit Apartment Complex [Member] | |||
Mortgage Notes Payable [Line Items] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 1,929,000 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 3.59% | ||
Maturity Date | June 2,026 | ||
Derivative, Variable Interest Rate | 2300000.00% |
MANAGEMENT AGREEMENTS (Details
MANAGEMENT AGREEMENTS (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Management Agreement [Line Items] | ||
Management Agreement Term | 10 years | |
Key Money Incentive Advance To Related Party | $ 2,000,000 | $ 2,000,000 |
Interstate Management Company, LLC [Member] | ||
Management Agreement [Line Items] | ||
Management Fee Expense | $ 957,000 | $ 372,000 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Concentration Risk [Line Items] | ||
Accounts Receivable, Net | $ 1,843,000 | $ 1,489,000 |
Hotel [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Accounts Receivable, Net | $ 390,000 | |
Concentration Risk, Percentage | 27.00% | |
Hotel [Member] | Accounts Receivable [Member] | Two Customer [Member] | ||
Concentration Risk [Line Items] | ||
Accounts Receivable, Net | $ 572,000 | |
Concentration Risk, Percentage | 32.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Federal | ||
Current tax benefit (expense) | $ 1,455,000 | $ (333,000) |
Deferred tax expense | (3,567,000) | (168,000) |
Federal Income Tax (Expense) Benefit, Continuing Operations, Total | (2,112,000) | (501,000) |
State | ||
Current tax expense | (227,000) | (310,000) |
Deferred tax (expense) benefit | (717,000) | 290,000 |
State and Local Income Tax (Expense) Benefit, Continuing Operations, Total | (944,000) | (20,000) |
Income Tax Expense | $ (3,056,000) | $ (521,000) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Line Items] | ||
Statutory federal tax rate | $ (2,218,000) | $ 440,000 |
State income taxes, net of federal tax benefit | (623,000) | (25,000) |
Dividend received deduction | 24,000 | 56,000 |
Valuation allowance | (330,000) | (521,000) |
Other | 91,000 | (471,000) |
Income Tax Expense (Benefit), Continuing Operations, Discontinued Operations, Extraordinary Items | $ (3,056,000) | $ (521,000) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 7,413,000 | $ 14,302,000 |
Capital loss carryforwards | 1,132,000 | 1,122,000 |
Investment impairment reserve | 1,276,000 | 1,778,000 |
Accruals and reserves | 766,000 | 1,182,000 |
Unrealized loss on marketable securities | 0 | 284,000 |
Tax credits | 733,000 | 516,000 |
Other | 190,000 | 289,000 |
Valuation allowance | (2,610,000) | (3,388,000) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 8,900,000 | 16,085,000 |
Deferred tax assets (liabilities): | ||
Equity earnings | (2,564,000) | (2,624,000) |
Deferred gains on real estate sale and depreciation | (5,638,000) | (8,816,000) |
Unrealized gains on marketable securities | (765,000) | 0 |
State taxes | (178,000) | (538,000) |
Deferred Tax Liabilities, Gross | (9,145,000) | (11,978,000) |
Net deferred tax (liability) asset | $ 4,107,000 | |
Net deferred tax (liability) asset | $ (245,000) |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) | Jun. 30, 2018USD ($) |
Income Tax Disclosure [Line Items] | |
Federal | $ 27,633,000 |
State | 18,784,000 |
Intergroup [Member] | |
Income Tax Disclosure [Line Items] | |
Federal | 0 |
State | 0 |
Santa Fe [Member] | |
Income Tax Disclosure [Line Items] | |
Federal | 8,893,000 |
State | 3,664,000 |
Portsmouth [Member] | |
Income Tax Disclosure [Line Items] | |
Federal | 18,740,000 |
State | $ 15,120,000 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 27,633,000 | |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 18,784,000 | |
Effective Income Tax Rate Reconciliation, Percent | 28.00% | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 404,000 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |
Scenario, Plan [Member] | ||
Income Tax Disclosure [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent | 21.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 71,579,000 | $ 69,005,000 |
Segment income (loss) from operations | 21,565,000 | 12,996,000 |
Interest expense - mortgage | (9,767,000) | (9,604,000) |
Depreciation and amortization expense | (5,054,000) | (5,305,000) |
Income tax expense | (3,056,000) | (521,000) |
Net income (loss) | 5,813,000 | (1,676,000) |
Total assets | 131,680,000 | 133,209,000 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 71,579,000 | 69,005,000 |
Segment operating expenses | (50,735,000) | (50,704,000) |
Segment income (loss) from operations | 20,844,000 | 18,301,000 |
Interest expense - mortgage | (9,767,000) | (9,604,000) |
Recovery of legal settlement costs | 5,775,000 | |
Depreciation and amortization expense | (5,054,000) | (5,305,000) |
Loss from investments | (2,929,000) | (4,547,000) |
Income tax expense | (3,056,000) | (521,000) |
Net income (loss) | 5,813,000 | (1,676,000) |
Total assets | 131,680,000 | 133,209,000 |
Hotel Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 57,099,000 | 54,334,000 |
Segment operating expenses | (40,103,000) | (40,717,000) |
Segment income (loss) from operations | 16,996,000 | 13,617,000 |
Interest expense - mortgage | (7,237,000) | (7,066,000) |
Recovery of legal settlement costs | 5,775,000 | |
Depreciation and amortization expense | (2,707,000) | (3,057,000) |
Loss from investments | 0 | 0 |
Income tax expense | 0 | 0 |
Net income (loss) | 12,827,000 | 3,494,000 |
Total assets | 58,019,000 | 48,739,000 |
Real Estate Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 14,480,000 | 14,671,000 |
Segment operating expenses | (7,579,000) | (7,166,000) |
Segment income (loss) from operations | 6,901,000 | 7,505,000 |
Interest expense - mortgage | (2,530,000) | (2,538,000) |
Depreciation and amortization expense | (2,347,000) | (2,248,000) |
Loss from investments | 0 | 0 |
Income tax expense | 0 | 0 |
Net income (loss) | 2,024,000 | 2,719,000 |
Total assets | 53,369,000 | 54,984,000 |
Investment Transactions [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Segment operating expenses | 0 | 0 |
Segment income (loss) from operations | 0 | 0 |
Interest expense - mortgage | 0 | 0 |
Depreciation and amortization expense | 0 | 0 |
Loss from investments | (2,929,000) | (4,547,000) |
Income tax expense | 0 | 0 |
Net income (loss) | (2,929,000) | (4,547,000) |
Total assets | 14,654,000 | 18,388,000 |
Other [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Segment operating expenses | (3,053,000) | (2,821,000) |
Segment income (loss) from operations | (3,053,000) | (2,821,000) |
Interest expense - mortgage | 0 | 0 |
Depreciation and amortization expense | 0 | 0 |
Loss from investments | 0 | 0 |
Income tax expense | (3,056,000) | (521,000) |
Net income (loss) | (6,109,000) | (3,342,000) |
Total assets | $ 5,638,000 | $ 11,098,000 |
STOCK-BASED COMPENSATION PLAN64
STOCK-BASED COMPENSATION PLANS (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Based Compensation [Line Items] | |||
Granted, Number of Shares | 160,000 | ||
Vested and Expected to vest, Number of Shares | 90,000 | ||
Equity Option [Member] | |||
Stock Based Compensation [Line Items] | |||
Oustanding, Number of Shares | 368,000 | 350,000 | |
Granted, Number of Shares | 0 | 18,000 | |
Exercised, Number of Shares | 0 | 0 | |
Forfeited, Number of Shares | 0 | 0 | |
Exchanged, Number of Shares | 0 | 0 | |
Oustanding, Number of Shares | 368,000 | 368,000 | 350,000 |
Exercisable, Number of Shares | 318,000 | 286,000 | |
Vested and Expected to vest, Number of Shares | 368,000 | 368,000 | |
Oustanding, Weighted Average Exercise Price | $ 17.21 | $ 16.70 | |
Granted, Weighted Average Exercise Price | 0 | 27.30 | |
Exercised, Weighted Average Exercise Price | 0 | 0 | |
Forfeited, Weighted Average Exercise Price | 0 | 0 | |
Exchanged, Weighted Average Exercise Price | 0 | 0 | |
Oustanding, Weighted Average Exercise Price | 17.21 | 17.21 | $ 16.70 |
Exercisable, Weighted Average Exercise Price | 16.47 | 16.19 | |
Vested and Expected to vest, Weighted Average Exercise Price | $ 17.21 | $ 17.21 | |
Oustanding at Weighted Average Remaining Life | 4 years 2 months 1 day | 5 years 2 months 1 day | 5 years 11 months 12 days |
Exercisable, Weighted Average Remaining Life | 3 years 9 months 14 days | 5 years 2 months 12 days | |
Vested and Expected to vest, Weighted Average Remaining Life | 4 years 2 months 1 day | 5 years 2 months 1 day | |
Outstanding, Aggregate Intrinsic Value | $ 3,505,000 | $ 3,046,000 | $ 3,082,000 |
Exercisable, Aggregate Intrinsic Value | 3,257,000 | 2,635,000 | |
Vested and Expected to vest, Aggregate Intrinsic Value | $ 3,505,000 | $ 3,046,000 |
STOCK-BASED COMPENSATION PLAN65
STOCK-BASED COMPENSATION PLANS (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017 | Feb. 29, 2012 | Mar. 16, 2010 | Feb. 24, 2010 | Feb. 18, 2009 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock Based Compensation [Line Items] | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 184,000 | $ 268,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 120,000 | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award Award Vesting Period 1 | 2 years 8 months 23 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 160,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | 90,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 90,000 | ||||||
Incentive Stock [Member] | |||||||
Stock Based Compensation [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 26,805 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 20.52 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Dec. 26, 2018 | ||||||
2010 Incentive Plan [Member] | |||||||
Stock Based Compensation [Line Items] | |||||||
Share-Based Compensation Arrangement By Share-Based Payment Award Award Vesting Period 1 | 5 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 100,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 400,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Feb. 23, 2020 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | In accordance with the terms of the 2010 Incentive Plan, the exercise prices were based on 100% and 110%, respectively, | ||||||
Share based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Increase Or More In Market Price | $ 2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 20,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 10.30 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | with 20% of the options vesting annually commencing on the first anniversary of the grant date. | ||||||
2007 Stock Plan [Member] | |||||||
Stock Based Compensation [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 18,000 | 18,000 | |||||
2008 Stock Plan [Member] | |||||||
Stock Based Compensation [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||
2008 Stock Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Stock Based Compensation [Line Items] | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 200,000 | ||||||
Non Employee Directors [Member] | |||||||
Stock Based Compensation [Line Items] | |||||||
Share Based Compensation By Share Based Payment Award Fair Market Value, Percentage | 100.00% | ||||||
John V Winfield [Member] | 2010 Incentive Plan [Member] | |||||||
Stock Based Compensation [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | 100,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 10.30 | ||||||
Chief Executive Officer [Member] | |||||||
Stock Based Compensation [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 133,195 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 18.65 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Dec. 26, 2023 | ||||||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price | $ 19.77 | ||||||
Share based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Increase Or More In Market Price | $ 2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 18,000 | ||||||
Vice President [Member] | 2010 Incentive Plan [Member] | |||||||
Stock Based Compensation [Line Items] | |||||||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price | $ 27.30 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | 18,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 3,600 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Related Party Transaction [Line Items] | |
Payments to Acquire Limited Partnership Interests | $ 1,550,000 |
Management Fee Payable | $ 200,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | May 05, 2016 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2014 | May 31, 2018 |
Commitments And Contingencies Disclosure [Line Items] | ||||||
Franchise Agreements Expiry Period | 15 years | |||||
Initial Franchise Fees | $ 3,800,000 | $ 3,300,000 | ||||
Proceeds from Legal Settlements | $ 900,000 | $ 4,700,000 | ||||
Reduction In Legal Expenses | 2,725,000 | 900,000 | ||||
Recovery Of Legal Settlement Costs | $ 5,775,000 | $ 0 | ||||
Gain Contingency, Unrecorded Amount | $ 8,300,000 | |||||
Settlement Of Evon Corporation Litigation [Member] | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Proceeds from Legal Settlements | $ 4,700,000 | |||||
Legal Fees | $ 5,575,000 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - Revolving Credit Facility [Member] | 1 Months Ended |
Jul. 31, 2018USD ($) | |
Debt Instrument, Basis Spread on Variable Rate | 3.00% |
Subsequent Event [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 |
Proceeds from Lines of Credit | $ 2,969,000 |
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3% |