Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 57

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 57
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 in previously recorded
incentive fees, and both parties established a performance threshold of $15,257,301 in earnings before interest, taxes, depreciation,
and amortization (“EBITDA”) for future incentive fee eligibility. As a result, the company recorded a reduction in Hotel
operating expenses of $1,030,134 for the nine months period ended March 31, 2025.

In
addition to the operations of the Hotel, the Company also generates income from the ownership of real estate. Properties include apartment
complexes, commercial real estate, and three single-family houses as strategic investments. The properties are located throughout the
United States but are concentrated in Texas and Southern California. The Company also has investments in unimproved real property. All
the Company’s residential rental properties and its commercial rental property are managed in-house.

There
have been no material changes to the Company’s significant accounting policies during the nine months ended March 31, 2025. Please
refer to the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 for a summary of the significant accounting
policies.

Recently
Issued and Adopted Accounting Pronouncements

Our
Annual Report on Form 10-K for the year ended June 30, 2024, filed with the SEC on September 30, 2024, contains a discussion on the recently
issued accounting pronouncements. As of March 31, 2025, there was no material impact from the recent adoption of new accounting pronouncements,
nor expected material impact from recently issued accounting pronouncements yet to be adopted, on the Company’s condensed consolidated
financial statements.

Going
Concern

The
accompanying condensed consolidated financial statements of Portsmouth have been prepared in accordance with US GAAP and on a going concern
basis, which assumes the Company will continue to operate in the normal course of business. In accordance with Accounting Standards Codification
(“ASC”) Topic 205-40, Presentation of Financial Statements – Going Concern, management evaluates whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the Portsmouth’s ability to continue as a
going concern within one year after the date that the financial statements are issued.

As
of March 31, 2025, Portsmouth had aggregate outstanding obligations of $100.3 million under a senior mortgage loan and mezzanine loan
that matured on January 1, 2024. Following the maturity, Portsmouth entered into