Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 55

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 55
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 deferred tax assets. When necessary, we use 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. Assumptions, judgment, and the use of estimates are required when scheduling the reversal of deferred tax
assets and liabilities, and the exercise is inherently complex and subjective. However, significant judgment will be required to determine
the timing and amount of any reversal of the valuation allowance in future periods.

HOTEL
ASSETS AND DEFINITE-LIVED INTANGIBLE ASSETS

We
evaluate property and equipment, and definite-lived intangible assets for impairment quarterly, and when events or circumstances indicate
the carrying value may not be recoverable, we evaluate the net book value of the assets by comparing to the projected undiscounted cash
flows of the assets. We use judgment to determine whether indications of impairment exist and consider our knowledge of the hospitality
industry, historical experience, location of the property, market conditions, and property-specific information available at the time
of the assessment. The results of our analysis could vary from period to period depending on how our judgment is applied and the facts
and circumstances available at the time of the analysis. When an indicator of impairment exists, judgment is also required in determining
the assumptions and estimates to use within the recoverability analysis and when calculating the fair value of the asset or asset group,
if applicable. Changes in economic and operating conditions impacting the judgments used could result in impairments to our long-lived
assets in future periods. Historically, changes in estimates used in the property and equipment and definite-lived intangible assets
impairment assessment process have not resulted in material impairment charges in subsequent periods as a result of changes made to those
estimates. There were no indicators of Hotel investments or intangible assets, and accordingly there were no impairment losses recorded
for the years ended June 30, 2025 and 2024.

STOCK-BASED
COMPENSATION

We
account for stock-based compensation by measuring and recognizing as compensation expense the fair value of all share-based payment awards
made to employees, including employee stock options, restricted stock awards and employee stock purchases related to the Employee Stock
Purchase Plan (“ESPP”) based on estimated grant date fair values. The determination of fair value involves a number of significant
estimates. We use the Black Scholes option pricing model to estimate the value of employee stock options which requires a number of assumptions
to determine the model inputs. These