Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 108

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 108
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 of the date of grant. All 18,000 shares were vested as of June 30, 2025.

On
October 13, 2023, the Compensation Committee awarded 18,000 stock options to the Company’s Chief Operating Officer David C. Gonzalez,
to purchase up to 18,000 shares of common stock. The exercise price of the options is $28.90 which was the fair market value of the Company’s
Common Stock as reported on the NASDAQ Capital Market at the close on October 12, 2023. The options expire ten years from the date of
grant. Pursuant to the time vesting requirements, the options vest over a period of three years, with 6,000 options vesting upon each
on year anniversary of the date of grant.

On
December 21, 2023, the Company extended the expiration date of the 133,195 stock options originally issued to John V. Winfield, CEO on
December 26, 2013 with an exercise price of $18.65. The original expiration date was December 26, 2023 and is extended to December 26,
2029. As a result of extending Mr. Winfield’s options, the Company recorded stock option compensation cost of $1,175,000 in December
2023. The fair value of the modification was estimated using the Black Scholes pricing model, which takes into account immediately before
and after the modification date the exercise price $18.65 per share and expected life of the stock option of 0.01 and 6 years, the market
price of the underlying stock on modification date and its expected volatility 72% (pre-modification) and 50% (post-modification), expected
dividends 0% on the stock and the risk free interest rate 0.9% (pre-modification) and 4.65% (post-modification) for the expected term
of the stock option.

Option-pricing
models require the input of various subjective assumptions, including the option’s expected life, estimated forfeiture rates and
the price volatility of the underlying stock. The expected stock price volatility is based on analysis of the Company’s stock price
history. The Company has selected to use the simplified method for estimating the expected term. The risk-free interest rate is based
on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. No dividend yield is included
as the Company has not