Company: INTG
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006758
Chunk: 94

Company: INTERGROUP CORP
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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 prevented
or detected on a timely basis. Specifically, the Company’s management has concluded that our control around the interpretation
and accounting for the stock-based compensation was not effectively designed or maintained. In light of this material weakness, we performed
additional analysis as deemed necessary to ensure that our financial statements were prepared in accordance with GAAP. Accordingly, management
believes that the financial statements included in this Quarterly Report on Form 10-Q present fairly in all material respects our financial
position, results of operations and cash flows for the period presented.

CHANGES
IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There
have been no changes in the Company’s internal control over financial reporting during the last quarterly period covered by this
Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, the Company’s internal
control over financial reporting.

-29-

PART
II

OTHER
INFORMATION

  Item
  1.
   LEGAL PROCEEDINGS

Portsmouth
Square, Inc., through its operating company Justice Investors Operating Company, LLC, a Delaware limited liability company (the “Company”),
is the owner of the real property located at 750 Kearny Street in San Francisco, currently improved with a 27 – story building
which houses a Hilton Hotel (the “Property”). The Property was purchased and improved pursuant to the terms of a series of
agreements with the City and County of San Francisco (the “City”) in the early 1970’s. The terms of the agreements
and subsequent approvals and permits included a condition by which the Company was required to construct an ornamental overhead pedestrian
bridge across Kearny Street, connecting the Property to a nearby City park and underground parking garage known as Portsmouth Square
(the “Bridge”). Included in the approval process was the City’s issuance of a Major Encroachment Permit (“Permit”)
allowing the Bridge to span over Kearney Street. As of May 24, 2022, the City has purported to revoke the Permit and on June 13, 2022,
has directed the Company to submit a general bridge removal and restoration plan (the “Plan”) at the Company’s expense.
The Company disputes the legality of the purported revocation of the Permit. The Company further disputes the existence of any legal
or contractual obligation to remove the Bridge at its expense. In particular, representatives of the Company participated in meetings
with the City on and at various times after August 1, 2019, to