Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 248

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 8
Chunk 248
---
30, 2025, the outstanding intercompany balance was $38,108,000, with no principal repayments made to date. The facility is
interest-only, prepayable without penalty, and bears interest at 9% per annum; principal and accrued interest are due at maturity All
material intercompany accounts and transactions have been eliminated in consolidation.

Cash
Management and Distribution Restrictions (Hotel Subsidiary)

Under
Portsmouth’s March 28, 2025 refinancing, a lender-controlled lockbox and ongoing DSCR requirements apply to hotel cash flows. Until
DSCR thresholds are met for two consecutive quarters, substantially all hotel receipts are deposited into lender-controlled accounts
and disbursed pursuant to lender-approved budgets for operating expenses, debt service, and required reserves (e.g., taxes, insurance,
and FF&E).

    45

During
the fiscal year ending June 30, 2025, the Company refinanced the mortgage on its 157-unit apartment located in Florence, Kentucky in
the amount of $9,800,000. The term of the loan is approximately 10 years with an interest rate at 5.40%. The loan matures in January
2035. In May 2025 the Company amended the agreement on its St. Louis, Missouri property to a new loan maturity of June 5, 2028. In May
2025 the Company made a principal reduction payment of $344,000.

Liquidity
Outlook and Going Concern

Management
has concluded there are no conditions or events, considered in the aggregate and know or reasonably knowable, that raise substantial
doubt about Portsmouth’s ability to continue as a going concern within one year after the date these financial statements are issued
(ASC 205-40). This conclusion is based on the successful refinancing of the senior mortgage loan and modification of the mezzanine debt
on March 28, 2025, resulting in improved maturity profiles, covenant compliance, and a stable capital structure. Portsmouth remains current
on all debt service obligations, and management’s forecasts indicate adequate liquidity for the twelve-month period following the
issuance of these financial statements.

Forward-looking
risks remain primarily tied to the performance of the San Francisco hospitality market, including:

  ●
  The
pace of recovery in business travel,

  ●
  Competitive
dynamics among local hotels,

  ●
  Broader
municipal issues affecting the city’s perception among travelers, and

  ●