Company: INTG
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006758
Chunk: 13

Company: INTERGROUP CORP
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 crime, etc., have caused the City of San Francisco to be one of the slowest cities in the country to fully recover
from the COVID-19 pandemic. Additionally, since San Francisco is a top-heavy tech company city, the “remote work” initiatives
have caused a slowdown in business travel and in person meetings. Prior to the COVID-19 pandemic, our Hotel enjoyed most of its revenues
from business travel, conventions, self-contained groups, etc., and post pandemic, most revenues are generated from leisure travel which
is generally at a lower guest room rate. For the six months ended December 31, 2024, our net cash flow provided by operations was $2,579,000.
We have taken several steps to preserve capital and increase liquidity at our Hotel, including implementing strict cost management measures
to eliminate non-essential expenses, renegotiating certain reoccurring expenses, and temporarily closing certain hotel services and outlets.
As the hospitality and travel environment continues to recover, Portsmouth will continue to evaluate what services we bring back. During
the six months ended December 31, 2024, Portsmouth continued to make capital improvements to the hotel in the amount of $615,000. During
the six months ended December 31, 2024 the Company made capital improvements in the amount of $899,000 to its multi-family and commercial
real estate.

The
Company had cash and cash equivalents of $10,420,000 and $4,333,000 as of December 31, 2024 and June 30, 2024, respectively. The Company
had restricted cash of $3,966,000 and $4,361,000 as of December 31, 2024 and June 30, 2024, respectively. The Company had marketable
securities, net of margin due to securities brokers, of $4,984,000 and $7,266,000 as of December 31, 2023 and June 30, 2024, respectively.
These marketable securities are short-term investments and liquid in nature.

On
July 2, 2014, the Partnership obtained from InterGroup an unsecured loan in the principal amount of $4,250,000 at 12% per year fixed
interest, with a term of 2 years, payable interest only each month. InterGroup received a 3% loan fee. The loan may be prepaid at any
time without penalty. The loan was extended to July 31, 202