INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

SCHEDULE OF INCOME TAX (EXPENSE) BENEFIT

The provision for the Company’s income tax (expense) benefit is comprised of the following:

For the years ended June 30,	2023			2022
Federal
Current tax	$	(116,000	)	$	(113,000	)
Deferred tax		6,419,000			884,000
		6,303,000			771,000
State
Current tax		9,000			(330,000	)
Deferred tax		2,121,000			589,000
		2,130,000			259,000
Income Tax (expense) benefit	$	(8,433,000	)	$	1,030,000

SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

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,	2023			2022
Statutory federal tax rate	$	(315,000	)	$	2,446,000
State income taxes, net of federal tax benefit		(375,000	)		204,000
Dividend received deduction		(18,000	)		103,000
PPP Loan forgiveness		-			1,391,000
Provision to return adjustment		(334,000	)		634,000
Deferral true up – Justice difference in basis of fixed assets		-			11,621,000
Net operating loss true up		(275,000	)		32,000
Valuation allowance		10,232,000			(15,201,000	)
Payable true up		(249,000	)		(311,000	)
State rate change impact		(352,000	)		-
Other		119,000			111,000
	$	(8,433,000	)	$	1,030,000

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The components of the deferred tax asset and liabilities are as follows:

	June 30, 2023			June 30, 2022
Deferred tax assets:
Net operating loss carryforwards	$	13,187,000		$	11,075,000
Deferred gains on real estate sale and depreciation		15,054,000			10,418,000
Capital loss carryforwards		1,919,000			1,322,000
Accruals and reserves		843,000			831,000
Interest expense		3,185,000			2,231,000
Tax credits		566,000			566,000
State taxes		139,000			-
Other		204,000			247,000
Deferred Tax Asset before Valuation Allowance		35,097,000			26,690,000
Valuation Allowance		(33,784,000	)		(22,775,000	)
Deferred Tax Asset after Valuation Allowance		1,313,000			3,915,000
Deferred tax liabilities:
Deferred gains on real estate sale and depreciation		(4,796,000	)		-
Unrealized gain on marketable securities		(746,000	)		(9,000	)
Gain on insurance claim		(696,000	)		-
Other		-			-
State taxes		-			(294,000	)
Deferred Tax Liability		(6,238,000	)		(303,000	)
Net deferred tax (liability) asset	$	(4,925,000	)	$	3,612,000

SCHEDULE OF ESTIMATED NET OPERATING LOSSES (NOLS)

Below is the breakdown of the net operating losses for Intergroup and Portsmouth.

	Federal		State
InterGroup	$	-	$	2,789,000
Portsmouth		41,835,000		48,500,000
	$	41,835,000	$	51,289,000

SCHEDULE OF UNCERTAIN TAX POSITIONS

Unrecognized Tax Benefits at June 30, 2022	$	-
Increase in tax positions taken		1,665,000
Decrease in tax positions taken		-
Unrecognized Tax Benefits at June 30, 2023	$	1,665,000