Tue, May 14, 5:43 PM (73 days ago)
Portsmouth Square, Inc. reported a net loss of $2,871,000 for Q1 2024, compared to a net loss of $1,057,000 in Q1 2023. Despite a 3% revenue increase to $10,758,000, driven by room and food & beverage sales, operating expenses surged by $826,000 due to higher union wages and other costs. Interest expenses also rose significantly during the forbearance period. For the nine months ended March 31, 2024, net loss widened to $6,997,000 from $2,386,000 in the prior year, primarily due to decreased room revenues and increased operating and interest expenses. The company’s liquidity is under pressure with cash and equivalents of $3,572,000 and restricted cash of $1,637,000 as of March 31, 2024. Portsmouth extended its $106,045,000 senior mortgage and mezzanine loans to January 1, 2025, under forbearance agreements, adding default interest and fees. The company faces substantial doubt about its ability to continue as a going concern due to refinancing uncertainties and recurring losses.