Company: INTG
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006758
Chunk: 55

Company: INTERGROUP CORP
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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 percent (10%) of the amount by which Gross Operating Profit in the current fiscal year exceeds the previous fiscal year’s
Gross Operating Profit.

    -8-

However,
the Company after discussions with Aimbridge regarding a dispute in connection with the validity of the incentive fees as they relate
directly to the Covid pandemic, the Company and Aimbridge agreed that there were no incentive fees due to Aimbridge as the year-over-year
improvement resulted of the recovery from the pandemic. Therefore, Aimbridge agreed to waive $1,030,134 that was previously recorded
and agreed to establish a performance threshold of $15,257,301 earnings before interest, tax, depreciation, and amortization (“EBITDA”)
that would be otherwise payable with respect to fiscal years 2019 through 2023. The waive reduction was made as of September 30, 2024.

In
addition to the operations of the Hotel, the Company also generates income from the ownership of real estate. Properties include apartment
complexes, commercial real estate, and three single-family houses as strategic investments. The properties are located throughout the
United States but are concentrated in Texas and Southern California. The Company also has investments in unimproved real property. All
the Company’s residential rental properties and its commercial rental property are managed in-house.

There
have been no material changes to the Company’s significant accounting policies during the six months ended December 31, 2024. Please
refer to the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 for a summary of the significant accounting
policies.

Recently
Issued and Adopted Accounting Pronouncements

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 December 31, 2024, 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
condensed consolidated financial statements of Portsmouth have been prepared on a going concern basis, which assumes the realization
of assets and the satisfaction of liabilities in the normal course of business. However, as of December 31, 2024, certain factors raise
substantial doubt about Portsmouth’s ability to continue as a going concern within