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, 2019 and 2018. 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, 2019	Operations		Operations		Transactions		Other		Total
Revenues	$	59,881,000	$	14,872,000	$	—	$	—	$	74,753,000
Segment operating expenses		(44,466,000)		(7,810,000)		—		(2,346,000)		(54,622,000)
Segment income (loss) from operations		15,415,000		7,062,000		—		(2,346,000)		20,131,000
Interest expense - mortgage		(7,234,000)		(2,554,000)		—		—		(9,788,000)
Loss on disposal of assets		(398,000)		—		—		—		(398,000)
Depreciation and amortization expense		(2,506,000)		(2,429,000)		—		—		(4,935,000)
Loss from investments		—		—		(2,497,000)		—		(2,497,000)
Income tax benefit		—		—		—		301,000		301,000
Net income (loss)	$	5,277,000	$	2,079,000	$	(2,497,000)	$	(2,045,000)	$	2,814,000
Total assets	$	62,148,000	$	51,773,000	$	10,308,000	$	6,650,000	$	130,879,000


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