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Concentration of Credit Risk
12 Months Ended
Jun. 30, 2021
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk

NOTE 13 – CONCENTRATION OF CREDIT RISK

 

As of June 30, 2021 and 2020, receivables related to Hotel customers were $194,000 and $239,000, respectively.. Usually, credit extended to the Company’s tenants at its rental properties is of low risk as leases do not extend beyond one year and if tenants become delinquent, local eviction laws are used to evict tenants. However, as of June 30, 2021 accounts receivable from the Company’s rental properties was $660,000 and allowance for doubtful accounts was $514,000, for a net receivable of $146,000. This unusual large gross receivable amount from our rental properties is as a result of the temporary eviction moratorium imposed by the federal and state governmental authorities since the beginning of the COVID19 pandemic and is now scheduled to be lifted on October 3, 2021, but no assurances can be given that such a moratorium won’t be once again extended. Under the eviction moratorium, the Company is not allowed to evict tenants for non-payment of rent. The Company continues to work with its delinquent tenants and some tenants have requested governmental assistance to pay for their delinquent balances. The Company is monitoring the eviction moratorium closely in order to reduce its potential losses.

 

The Company 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.