Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 13

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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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 forbearance agreements with both lenders on April 29,
2024, which extended the maturity date to January 1, 2025, providing time to pursue a long-term refinancing solution. Upon the expiration
of the forbearance period in January 2025, both lenders issued default notices.

On
March 28, 2025, Portsmouth successfully refinanced its senior mortgage loan through a new $67.0 million agreement with PRIME Finance.
The new loan bears interest at a floating rate equal to the 30-day Secured Overnight Financing Rate (“SOFR”) plus 4.75%,
subject to an interest rate cap limiting SOFR to a maximum of 4.50% and provides for an initial two-year term with three successive one-year
extension options, subject to satisfaction of certain conditions. Concurrently, Portsmouth entered into a modification of the mezzanine
loan agreement, which provides for a $36.3 million principal balance at a fixed rate of 7.25% per annum, with maturity and extension
terms aligned with the senior loan.

The
successful completion of these refinancing transactions represents a significant step in enhancing Portsmouth’s financial flexibility
and addressing its near-term liquidity