Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 63

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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 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 March 31, 2025 and June 30, 2024, other than trade and other receivables, net
on our condensed consolidated balance sheets. Our receivables are primarily the result of contracts with customers, that were entered
into within the past 12 months, which are reduced by a reserve for estimated credit losses 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 decreased to $290,000 as of March 31, 2025, primarily due to the recognition of advances performed
prior to March 31, 2025. Contract liabilities increased to $291,000 as of March 31, 2024 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.

    -12-

NOTE
4 – INVESTMENT IN HOTEL, NET

Investment
in Hotel consisted of the following as of:

SCHEDULE OF INVESTMENT IN HOTEL 

    Accumulated  
    Net Book 
  
    March
    31, 2025 
    Cost  
    Depreciation  
    Value 

    Land 
    $2,738,000  
    $-  
    $2,