Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 172

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 7A
Chunk 172
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-exhausting, interest free note which is reduced by approximately $317,000 annually through
2030 by Hilton if the Hotel remains a franchisee under the Hilton brand. If the franchise is terminated prior to the end of the amortization
period, amounts may become payable pursuant to the agreement.

Ambridge
key money on February 1, 2017, Operating entered into a Hotel Management Agreement (“HMA”) with Aimbridge to manage the Hotel,
with an effective takeover date of February 3, 2017. The term of the HMA is for an initial period of 10 years and automatically renews
for up to five additional years in aggregate, subject to certain conditions. The HMA also provides Aimbridge to advance key money of
$2,000,000 for capital improvements under a separate key money agreement. The key money is amortized in equal monthly amounts over eight
(8) years commencing on the second anniversary of the takeover date and is recognized as a reduction of Hotel operating expenses. The
unamortized portion of the key money, $396,000 and $646,000 as of June 30, 2025 and 2024, respectively, is included in other notes payable
in the consolidated balance sheets due to potential repayment or claw back provisions upon early termination.

Future
minimum principal payments for all other financing transactions are as follows:

 SCHEDULE OF FUTURE MINIMUM PRINCIPAL PAYMENTS

    For the year ending June 30, 

    2026 
    $567,000 
  
    2027 
     463,000 
  
    2028 
     317,000 
  
    2029 
     317,000 
  
    2030 
     315,000 
  
    Thereafter 
     - 
  
    Long
    term debt 
    $1,979,000 

    51

On
July 2, 2014, the Partnership secured an unsecured loan from InterGroup in the principal amount of $4,250,000, bearing a fixed annual
interest rate of 12%, with no monthly principal or interest payments required prior to maturity. InterGroup also received a loan fee
equal to 3% of the principal. The loan was prepayable at any time without penalty and was subsequently extended through July 31, 2023.

On
December 16, 2020, the Partnership and InterGroup executed a loan