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INVESTMENT IN HOTEL, NET

6 Months Ended

Dec. 31, 2025

NOTE 4 – INVESTMENT IN HOTEL, NET

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

SCHEDULE OF INVESTMENT IN HOTEL

			Accumulated			Net Book
December 31, 2025	Cost		Depreciation			Value

Land	$	2,738,000	$	-		$	2,738,000
Finance lease ROU assets		1,805,000		(1,722,000	)		83,000
Furniture and equipment		40,772,000		(34,178,000	)		6,594,000
Building and improvements		70,382,000		(40,685,000	)		29,697,000
Investment in Hotel, net	$	115,697,000	$	(76,585,000	)	$	39,112,000

				Accumulated			Net Book
June 30, 2025		Cost		Depreciation			Value

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

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

Depreciation expense related the Hotel for the six months ended December 31, 2025 and 2024 was $1,839,000 and $1,831,000, respectively, and is included in depreciation and amortization expense in the Company’s condensed consolidated statements of operations.

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