NOTE 8 – 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 three and six months ended December 31, 2017 and 2016. Operating income from hotel operations consist of the operation of the hotel and operation of the garage. Operating income for rental properties consist of rental income. Operating income (loss) for investment transactions consist of net investment gain (loss), impairment loss on other investments, net unrealized gain (loss) on other investments, dividend and interest income and trading and margin interest expense. The other segment consists of corporate general and administrative expenses and the income tax expense for the entire Company.

As of and for the three months	Hotel		Real Estate		Investment
ended December 31, 2017	Operations		Operations		Transactions		Corporate		Total
Revenues	$	13,187,000	$	3,625,000	$	-	$	-	$	16,812,000
Segment operating expenses		(10,743,000)		(2,102,000)		-		(730,000)		(13,575,000)
Segment income (loss) from operations		2,444,000		1,523,000		-		(730,000)		3,237,000
Interest expense - mortgage		(1,850,000)		(640,000)		-		-		(2,490,000)
Depreciation and amortization expense		(682,000)		(585,000)		-		-		(1,267,000)
Loss from investments		-		-		(1,643,000)		-		(1,643,000)
Income tax expense		-		-		-		(344,000)		(344,000)
Net income (loss)	$	(88,000)	$	298,000	$	(1,643,000)	$	(1,074,000)	$	(2,507,000)
Total assets	$	49,626,000	$	54,402,000	$	14,172,000	$	7,952,000	$	126,152,000

As of and for the three months	Hotel		Real Estate		Investment
ended December 31, 2016	Operations		Operations		Transactions		Corporate		Total
Revenues	$	12,837,000	$	3,605,000	$	-	$	-	$	16,442,000
Segment operating expenses		(9,611,000)		(1,754,000)		-		(602,000)		(11,967,000)
Segment income (loss) from operations		3,226,000		1,851,000		-		(602,000)		4,475,000
Interest expense - mortgage		(1,750,000)		(652,000)		-		-		(2,402,000)
Depreciation and amortization expense		(810,000)		(560,000)		-		-		(1,370,000)
Loss from investments		-		-		(3,537,000)		-		(3,537,000)
Income tax benefit		-		-		-		825,000		825,000
Net income (loss)	$	666,000	$	639,000	$	(3,537,000)	$	223,000	$	(2,009,000)
Total assets	$	50,206,000	$	55,856,000	$	18,029,000	$	8,701,000	$	132,792,000

As of and for the six months	Hotel		Real Estate		Investment
ended December 31, 2017	Operations		Operations		Transactions		Corporate		Total
Revenues	$	27,624,000	$	7,302,000	$	-	$	-	$	34,926,000
Segment operating expenses		(21,332,000)		(3,997,000)		-		(1,561,000)		(26,890,000)
Segment income (loss) from operations		6,292,000		3,305,000		-		(1,561,000)		8,036,000
Interest expense - mortgage		(3,703,000)		(1,280,000)		-		-		(4,983,000)
Depreciation and amortization expense		(1,381,000)		(1,160,000)		-		-		(2,541,000)
Loss from investments		-		-		(2,895,000)		-		(2,895,000)
Income tax expense		-		-		-		(419,000)		(419,000)
Net income (loss)	$	1,208,000	$	865,000	$	(2,895,000)	$	(1,980,000)	$	(2,802,000)
Total assets	$	49,626,000	$	54,402,000	$	14,172,000	$	7,952,000	$	126,152,000

As of and for the six months	Hotel		Real Estate		Investment
ended December 31, 2016	Operations		Operations		Transactions		Corporate		Total
Revenues	$	27,442,000	$	7,254,000	$	-	$	-	$	34,696,000
Segment operating expenses		(19,867,000)		(3,561,000)		-		(1,330,000)		(24,758,000)
Segment income (loss) from operations		7,575,000		3,693,000		-		(1,330,000)		9,938,000
Interest expense - mortgage		(3,579,000)		(1,285,000)		-		-		(4,864,000)
Depreciation and amortization expense		(1,523,000)		(1,115,000)		-		-		(2,638,000)
Loss from investments		-		-		(2,623,000)		-		(2,623,000)
Income tax expense		-		-		-		(227,000)		(227,000)
Net income (loss)	$	2,473,000	$	1,293,000	$	(2,623,000)	$	(1,557,000)	$	(414,000)
Total assets	$	50,206,000	$	55,856,000	$	18,029,000	$	8,701,000	$	132,792,000