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REVENUE
 3 Months Ended
Sep. 30, 2018
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
NOTE 2 – REVENUE
 
On July 1, 2018, we adopted ASC 606, 
Revenue from Contracts with Customers, 
as described in Note 1, using the modified retrospective approach to all contracts resulting in no cumulative adjustment to accumulated deficit. The adoption of this standard did not impact the timing of our revenue recognition based on the short-term, day-to-day nature of our operations.
 
The following table present our hotel revenues disaggregated by revenue streams. Revenues from real estate are not affected by the new guidance.
 
For the three months ended September 30,
 
2018
 
 
2017
 
Hotel revenues:
 
 
 
 
 
 
 
 
Hotel rooms
 
$
13,522,000
 
 
$
11,842,000
 
Food and beverage
 
 
1,449,000
 
 
 
1,759,000
 
Garage
 
 
774,000
 
 
 
781,000
 
Other operating departments
 
 
65,000
 
 
 
55,000
 
Total hotel revenue
 
$
15,810,000
 
 
$
14,437,000
 
 
Performance obligations
 
We identified the following performance obligations for which revenue is recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services:
 
 
•
Cancellable room reservations or ancillary services
are typically satisfied as the good or service is transferred to the hotel guest, which is generally when the room stay occurs.
 
 
•
Noncancellable room reservations and banquet or conference reservations
represent a series of distinct goods or services provided over time and satisfied as each distinct good or service is provided, which is reflected by the duration of the room reservation.
 
 
•
Other ancillary goods and services
are purchased independently of the room reservation at standalone selling prices and are considered separate performance obligations, which are satisfied when the related good or service is provided to the hotel guest.     
• Components of package reservations
for which each component could be sold separately to other hotel guests are considered separate performance obligations and are satisfied as set forth above.
 
Hotel revenue primarily consists of hotel room rentals, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking). Revenue is recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are provided. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component.
 
We do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the nature of our business, our revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at our hotel are refunded to hotel guests if the guest cancels within the specified time period, before any services are rendered. Refunds related to service are generally recognized as an adjustment to the transaction price at the time the hotel stay occurs or services are rendered.
 
Contract assets and liabilities
 
We do not have any material contract assets as of September 30, 2018 and June 30, 2018 other than trade and other receivables, net on our Condensed Consolidated Balance Sheet. Our receivables are primarily the result of contracts with customers, which are reduced by an allowance for doubtful accounts that reflects our estimate of amounts that will not be collected.
 
We record contract liabilities when cash payments are received or due in advance of guests staying at our hotel, which are presented within accounts payable and other liabilities on our Condensed Consolidated Balance Sheets. Contract liabilities increased to $812,000 as of September 30, 2018 from $571,000 as of June 30, 2018. The increase for the three months ended September 30, 2018 was primarily driven by deposits received from upcoming groups, partially offset by $428,000 revenue recognized that was included in the advanced deposits balance as of June 30, 2018.
 
Contract costs
 
We consider sales commissions earned to be incremental costs of obtaining a contract with our customers. As a practical expedient, we expense these costs as incurred as our contracts with customers and lease agreements do not extend beyond one year.