Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 111

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 111
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 the outstanding mezzanine balance into a $36.3
million fixed-rate facility bearing interest at 7.25% per annum. The mezzanine loan shares the same maturity profile and extension structure
as the senior mortgage loan.

Management
believes that the successful refinancing materially improves Portsmouth’s near-term liquidity position and provides a stable capital
structure to support ongoing operations. Nevertheless, Portsmouth continues to face adverse macroeconomic and industry-specific conditions,
including persistently high interest rates, suppressed business travel demand in the San Francisco market, and elevated labor costs.
These factors, combined with uncertainty regarding future refinancing at maturity, create significant risks to Portsmouth’s cash
flows and financial flexibility.

While
Portsmouth has maintained compliance with debt service requirements and completed major renovations to enhance asset competitiveness,
including the ongoing lobby renovation and restoration of 14 guest rooms expected to return to inventory by June 30, 2025, management
cannot provide assurance that operating cash flows will be sufficient to meet all future obligations or that refinancing or extension
options will be available on favorable terms, if at all.

As
a result, management has concluded that substantial doubt exists about Portsmouth’s ability to continue as a going concern for
the twelve-month period following the issuance of these financial statements. Portsmouth continues to evaluate strategic options to improve
liquidity and financial performance and is committed to executing its business plan under the current market conditions.

OFF-BALANCE
SHEET ARRANGEMENTS

The
Company has no off-balance sheet arrangements.

MATERIAL
CONTRACTUAL OBLIGATIONS

The
following table provides a summary as of March 31, 2025, the Company’s material financial obligations which also includes interest
payments.

    3 Months  
    Year  
    Year  
    Year  
    Year  

    Total  
    2025  
    2026  
    2027  
    2028  
    2029  
    Thereafter 
  
    Mortgage and subordinated notes
    payable 
    $198,396,000  
    $5,589,000  
    $1,162,000  
    $106,596,000  
    $1,770,000  
    $1,845,000  
    $81,434,000 
  
    Other notes payable 
     2,121,000  
     142,000  
     567,000