Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 55

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The
accompanying unaudited condensed consolidated financial statements of The InterGroup Corporation (“InterGroup” or the “Company”
or “we” or “our”), have been prepared in accordance with the rules and regulations of the Securities and Exchange
Commission (“SEC”) applicable to interim financial reporting. As permitted under those rules and regulations, certain information
and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted
in the United States of America (“U.S. GAAP”) have been condensed or omitted. In the opinion of management, all normal recurring
adjustments considered necessary for a fair presentation have been included. The results of operations for the interim periods presented
are not necessarily indicative of results expected for the full fiscal year. The unaudited condensed consolidated financial statements
include the accounts of our wholly owned and majority-owned subsidiaries. All material intercompany accounts and transactions have been
eliminated in consolidation.

These
unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements of InterGroup
and the notes therein included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024. The June 30, 2024
condensed consolidated balance sheet was derived from the consolidated balance sheet as included in the Company’s Form 10-K for
the year ended June 30, 2024.

Effective
February 19, 2021, the Company’s 83.7% owned subsidiary, Santa Fe Financial Corporation (“Santa Fe”), a public company
(OTCBB: SFEF), was liquidated and all of its assets including its 68.8% interest in Portsmouth Square, Inc. (“Portsmouth”),
a public company (OTCBB: PRSI) were distributed to its shareholders in exchange for their Santa Fe common stock. As of March 31, 2025,
InterGroup owns approximately 75.9% of the outstanding common shares of Portsmouth and the Company’s President, Chairman of the
Board and Chief Executive Officer, John V. Winfield, owns approximately 2.5% of the outstanding common shares of Portsmouth. Mr. Winfield
also serves as the Chairman of the Board and Chief Executive Officer of Portsmouth.

Portsmouth’s
primary business was conducted through its