Company: INTG
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006758
Chunk: 17

Company: INTERGROUP CORP
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 (e.g., parking). Revenue is recognized when rooms are occupied
or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are
provided. For package reservations, the transaction price is allocated to the performance obligations within the package based on the
estimated standalone selling prices of each component.

We
do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the
nature of our business, our revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at
our hotel are refunded to hotel guests if the guest cancels within the specified time period, before any services are rendered. Refunds
related to service are generally recognized as an adjustment to the transaction price at the time the hotel stay occurs or services are
rendered.

Revenue
recognition from apartment rental commences when an apartment unit is placed in service and occupied by a rent-paying tenant. Apartment
units are leased on a short-term basis, with no lease extending beyond one year.

Contract
Assets and Liabilities

The
Company does not have any material contract assets as of December 31, 2024 and June 30, 2024, other than trade and other receivables,
net on our consolidated balance sheets. Our receivables are primarily the result of contracts with customers, which are reduced by an
allowance for doubtful accounts that reflects our estimate of amounts that will not be collected.

The
Company records contract liabilities when cash payments are received or due in advance of guests staying at our Hotel, which are presented
within accounts payable and other liabilities – Hotel on our condensed consolidated balance sheets and had a balance of $370,000
at July 1, 2024. Contract liabilities increased
to $462,000 as of December 31, 2024. The increase was driven by advance for services performed after December 31, 2024. Contract liabilities
decreased to $203,000 as
of December 31, 2023 from $290,000
as of June 30, 2023.

Contract
Costs

We
consider sales commissions earned to be incremental costs of obtaining a contract with our customers. As a practical expedient, we expense
these costs as incurred as our contracts with customers are less than one year.

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NOTE
4 – INVESTMENT IN HOTEL, NET

Investment
in hotel consisted of the following as