Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 516

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 8
Chunk 516
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 primarily administrative expenses, rent and insurance - are allocated between InterGroup and Portsmouth based
on management’s estimate of relative utilization. For the years ended June 30, 2025 and 2024, these expenses were approximately
$144,000 for each year. Those fees are eliminated in consolidation.

As
of June 30, 2025, InterGroup owns approximately 75.9% of the outstanding common shares of Portsmouth. As of June 30, 2024, the Company’s
President, Chairman of the Board and Chief Executive Officer, John V. Winfield, owns approximately 2.5% of the outstanding common shares
of Portsmouth. Mr. Winfield also serves as the Chairman of the Board and Chief Executive Officer of Portsmouth.

As
Chairman of the Executive Strategic Real Estate and Securities Investment Committee, the Company’s President and Chief Executive
Officer (CEO), John V. Winfield, directs the investment activity of the Company in public and private markets pursuant to authority granted
by the Board of Directors. Mr. Winfield also serves as Chief Executive Officer and Chairman of the Board of Portsmouth and oversees the
investment activity of Portsmouth. Depending on certain market conditions and various risk factors, the Chief Executive Officer and/or
Portsmouth may, at times, invest in the same companies in which the Company invests. Such investments align the interests of the Company
with the interests of related parties because it places the personal resources of the Chief Executive Officer and the resources of Portsmouth,
at risk in substantially the same manner as the Company in connection with investment decisions made on behalf of the Company. Parallel
investments are subject to InterGroup’s related-party policies and applicable SEC disclosure requirements.

NOTE
17 – COMMITMENTS AND CONTINGENCIES

Cash
Management Agreement

In
connection with the March 28, 2025 refinancing of the Hotel’s senior mortgage, Justice Operating Company, LLC (“Operating”)
entered into a Cash Management Agreement with Prime Finance (lender) and Wells Fargo Bank, N.A. (cash management bank). Under this agreement,
all Hotel receipts are deposited into a lender-controlled lockbox pursuant to a deposit account control agreement and swept to a cash
management account maintained for the benefit of the lender. The cash management bank maintains subaccounts (including debt service,
property tax, insurance, capital expenditure/FF&E, PIP, carry reserve, cash collateral, casualty/condemnation and security deposit
subaccounts). On each monthly payment date, funds are applied in a