Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 68

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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 remediating the material weakness and plans to: (i) formalize and implement a comprehensive stock-based compensation
accounting policy, including grant-date measurement, modification accounting, and related income-tax effects; (ii) enhance review controls
over the classification and valuation of awards, supported by a documented checklist and calendar; (iii) provide targeted training to
accounting personnel; and (iv) engage an external technical accounting resource to assist with complex or non-routine equity transactions
until internal expertise is fully established. Management will monitor the effectiveness of these actions and will consider the material
weakness remediated when the enhanced controls operate for a sufficient period and are tested successfully.

CHANGES
IN INTERNAL CONTROL OVER FINANCIAL REPORTING 

There
were no changes in the Company’s internal control over financial reporting during the quarter ended September 30, 2025 that have
materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

-28-

PART
II.

OTHER
INFORMATION

Item
1. LEGAL PROCEEDINGS

Portsmouth
Square, Inc., through Justice Investors Operating Company, LLC (the “Company”), owns the real property at 750 Kearny Street
in San Francisco, which is improved with a 27-story building that houses a Hilton-branded hotel (the “Property”). In connection
with City approvals in the early 1970s, the Company constructed an ornamental overhead pedestrian bridge spanning Kearny Street to the
City’s Portsmouth Square park and underground garage (the “Bridge”), pursuant in part to a Major Encroachment Permit
(the “Permit”).

On
May 24, 2022, the City purported to revoke the Permit and, on June 13, 2022, directed the Company to submit a general bridge removal
and site restoration plan (the “Plan”) at the Company’s expense. The Company disputes the legality of the purported
revocation and the existence of any obligation to fund removal. Company representatives participated in meetings with the City on and
after August 1, 2019 regarding a potential collaborative removal process; until the 2022 purported revocation, City representatives repeatedly
indicated that the City would bear the costs of any removal.

Without
waiving any rights, and to evaluate available options and respond to the City’s directives, the Company has engaged a project manager,
structural engineer, and architect to advise on the Plan for Bridge removal and reconstruction of the Property’s Kearny Street