Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 103

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 103
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-than not that some or all DTAs will not be realized. In forming this conclusion,
we weigh all available positive and negative evidence, placing significant weight on objectively verifiable evidence, including recent
financial results.

Cumulative
pre-tax losses over the preceding three years constitute significant negative evidence that DTAs may not be realizable, while cumulative
pre-tax income provides objective positive evidence of our ability to generate taxable income. Consistent with GAAP, when there is a
recent history of pre-tax losses, limited or no weight is placed on forecasts in assessing DTA realizability. When relevant, we use systematic
and logical scheduling to estimate the timing of reversal of temporary differences (i.e., when deferred tax liabilities will generate
taxable income and when DTAs will generate deductions). These assessments require assumptions and judgements and are inherently complex
and subjective. Significant judgment will also be required to determine the timing and amount of any future release of the valuation
allowance should our evidence change.

HOTEL
ASSETS AND DEFINITE-LIVED INTANGIBLE ASSETS

We
review hotel property and equipment and definite-lived intangible assets (together, “long-lived assets”) each quarter and
whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. We generally assess recoverability
at the property (asset-group) level – the lowest level for which identifiable cash flows are largely independent.

When
indicators of impairment exist, we compare the carrying amount to the sum of the asset group’s undiscounted cash flows expected
from use and eventual disposition. If not recoverable we measure an impairment loss as the excess of carrying amount over fair value.
Fair value is estimated using market and/or income approaches, which require significant judgment, including assumptions about occupancy,
ADR/RevPAR, operating margins, required capital expenditures, terminal values, and market discount and capitalization rates. Our indicators
of impairment assessment considers industry conditions, property location, market dynamics, historical performance, and property-specific
facts available at the time; conclusions may vary period to period as facts change.

Changes
in economic or operating conditions could result in future impairment charges. Historically, changes in estimates used in our process
have not resulted in material subsequent-period impairment charges.

There
were no indicators of impairment for our hotel investments or definite-lived intangible assets, and no impairment losses were recorded
for the three months ended September 30, 2025 and 2024, respectively.

STOCK-BASED
COMPENSATION