For the fiscal year ending June 30, 2025, Portsmouth Square Inc. reported its principal source of revenue from its ownership in Justice Operating Company, LLC, which includes hotel room revenue, food and beverage revenue, garage revenue, and revenue from other operating departments. The company owns a hotel and related facilities, including a five-level underground parking garage. The financial statements of Justice Operating Company, LLC are consolidated with those of Portsmouth Square Inc. Management noted that the San Francisco market continues to face public perception challenges, but observed a shift in opinion with new municipal leadership and actions addressing city cleanliness and homeless encampments. The city has experienced growth in technology sectors, with expansions from companies such as Databricks, Snowflake, and Microsoft. The company continues to evaluate strategic alternatives and operational adjustments in response to macroeconomic and market-specific challenges in San Francisco's hospitality sector. Liquidity position may be affected by unforeseen market or operational conditions, such as changes in occupancy and RevPAR. Management assesses the recoverability of deferred tax assets in accordance with GAAP, using systematic and logical methods to estimate when deferred tax liabilities will reverse and generate taxable income, and when deferred tax assets will reverse and generate tax deductions. Significant judgment is required to determine the timing and amount of any reversal of the valuation allowance in future periods. The condensed consolidated financial statements are prepared on a going concern basis, assuming continued operation in the normal course of business. Management evaluates conditions or events that may raise substantial doubt about the company's ability to continue as a going concern within one year after the financial statements are issued.