Portsmouth Square Inc. Files 10-Q for Period Ending Dec 31, 2024

TL;DR

PSQI 10-Q filed: Financials for period ending 12/31/24 are in. Check it out.

AI Summary

Portsmouth Square Inc. filed its 10-Q for the period ending December 31, 2024. The company, incorporated in California and operating in land subdivision and development, reported its financial status. Key dates include the filing date of February 14, 2025, and the reporting period from July 1, 2024, to December 31, 2024.

Why It Matters

This filing provides investors with an update on Portsmouth Square Inc.'s financial performance and position for the second quarter of its fiscal year, crucial for understanding its operational health and future prospects.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report and does not contain immediate red flags or significant negative developments.

Key Numbers

• 20241231 — Reporting Period End Date (Indicates the end of the financial period covered by the report.)
• 20250214 — Filing Date (Shows when the company submitted this quarterly report to the SEC.)

Key Players & Entities

• PORTSMOUTH SQUARE INC (company) — Filer of the 10-Q report
• 20241231 (date) — End of the reporting period
• 20250214 (date) — Filing date of the 10-Q
• CA (location) — State of incorporation
• LAND SUBDIVIDERS & DEVELOPERS (NO CEMETERIES) [6552] (industry) — Standard Industrial Classification

FAQ

Filing Documents

• form10-q.htm (10-Q) — 1011KB
• ex31-1.htm (EX-31.1) — 12KB
• ex31-2.htm (EX-31.2) — 12KB
• ex32-1.htm (EX-32.1) — 9KB
• ex32-2.htm (EX-32.2) — 9KB
• 0001493152-25-006761.txt ( ) — 5096KB
• prsi-20241231.xsd (EX-101.SCH) — 34KB
• prsi-20241231_cal.xml (EX-101.CAL) — 48KB
• prsi-20241231_def.xml (EX-101.DEF) — 135KB
• prsi-20241231_lab.xml (EX-101.LAB) — 241KB
• prsi-20241231_pre.xml (EX-101.PRE) — 199KB
• form10-q_htm.xml (XML) — 961KB

Signatures

Signatures 26 -2- PART 1 FINANCIAL INFORMATION Item 1 – Condensed Consolidated Financial Statements PORTSMOUTH SQUARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS As of December 31, 2024 (unaudited) June 30, 2024 ASSETS Investment in Hotel, net $ 33,898,000 $ 35,065,000 Investment in marketable securities 138,000 209,000 Cash and cash equivalents 3,106,000 3,511,000 Restricted cash 987,000 1,264,000 Accounts receivable, net 321,000 519,000 Other assets, net 1,196,000 834,000 Total assets $ 39,646,000 $ 41,402,000 LIABILITIES AND SHAREHOLDERS' DEFICIT Liabilities: Accounts payable and other liabilities - Hotel $ 16,098,000 $ 13,756,000 Accounts payable and other liabilities 387,000 1,477,000 Accounts payable and other liabilities 387,000 1,477,000 Accounts payable to related party 13,905,000 11,515,000 Related party notes payable 27,622,000 26,493,000 Other notes payable 2,263,000 2,388,000 Mortgage notes payable, net 100,289,000 100,783,000 Total liabilities 160,564,000 156,412,000 Shareholders' deficit: Common stock, no par value: Authorized shares - 750,000 ; 734,187 shares issued and outstanding shares as of December 31, 2024 and June 30, 2024, respectively 2,092,000 2,092,000 Accumulated deficit ( 123,010,000 ) ( 117,102,000 ) Total shareholders' deficit ( 120,918,000 ) ( 115,010,000 ) Total liabilities and shareholders' deficit $ 39,646,000 $ 41,402,000 The accompanying notes are an integral part of these (unaudited) condensed consolidated financial statements. -3- PORTSMOUTH SQUARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the three months ended December 31, 2024 2023 Revenue - Hotel $ 9,965,000 $ 10,225,000 Costs and operating expenses Hotel operating expenses ( 9,055,000 ) ( 9,405,000 ) Hotel depreciation and amortization expense ( 878,000 ) ( 841,000 ) General and administrative expense ( 296,000 )

financial statements

financial statements. Going Concern The condensed consolidated financial statements have been prepared on a going concern basis, which assumes the realization of assets and the satisfaction of liabilities in the normal course of business. However, as of December 31, 2024, certain factors raise substantial doubt about the Company's ability to continue as a going concern within one year after the issuance of these financial statements. As disclosed in Note 9 – Related Party and Other Financing Transactions, the Company has a senior mortgage loan and a mezzanine loan totaling $ 100,289,000 , which matured on January 1, 2024. On January 3, 2024, the Company received a Notice of Default from the senior loan special servicer, LNR Partners, LLC, and on January 14, 2024, a Notice of Default from the mezzanine lender, CRED Reit Holdco LLC, regarding the matured loans. These notices grant the lenders various rights and remedies, including but not limited to acceleration of the debt and foreclosure on collateral. To address the maturity issue, on April 29, 2024, the Company entered into forbearance agreements with both its senior and mezzanine lenders, extending the maturity date to January 1, 2025, while actively pursuing long-term refinancing solutions. However, on January 3, 2025, the Company received a Notice of Termination from the senior loan special servicer, citing a termination event due to the Company's failure to fully repay the debt by the forbearance expiration date. As a result, the forbearance agreement was terminated, allowing the lender to immediately exercise all rights and remedies, including acceleration of the loan and foreclosure on the collateral. Similarly, on January 14, 2025, the mezzanine lender issued a Notice of Default, stating that the forbearance had expired and that it, too, was entitled to exercise all available legal and contractual remedies. Despite these challenges, the Company has made significant progress toward refinancing its

View Full Filing

View this 10-Q filing on SEC EDGAR