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

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 in property enhancements, incurring capital expenditure
of $912,000. During the same period, the Company made capital improvements in the amount of $1,329,000 to its multi-family and commercial
real estate.

As
of March 31, 2025, the Company had:

●Cash
                                            and cash equivalents of $4,017,000 (compared to $4,333,000 as of June 30, 2024),

●Restricted
                                            cash of $9,377,000 (compared to $4,361,000 as of June 30, 2024), and

●Marketable
                                                                                                                                                                                                                                                                                    securities, net of margin balances, of $751,000 (compared to $7,266,000 as of June 30, 2024). These securities are considered liquid
                                                                                                                                                                                                                                                                                    and available for short-term needs.

Related
Party Financing

To
supplement its liquidity position, the Company maintains access to an unsecured loan facility with its subsidiary company, Portsmouth
Square, Inc (“Portsmouth”), a related party. The initial facility, dated July 2, 2014, has undergone several amendments.
In March 2025, the facility was amended to:

●Increase
                                            the available borrowing capacity to $40,000,000, and

●Extend
                                            the maturity date to July 31, 2027.

During
the nine months ended March 31, 2025, Portsmouth borrowed an additional $11,615,000 under this facility to support Hotel operations.
As of March 31, 2025, the outstanding loan balance was $38,108,000, with no principal repayments made to date. All material intercompany
accounts and transactions have been eliminated in consolidation.

Real
Estate

In
December 2024, the Company refinanced mortgage on its 157-unit apartment located in Florence, Kentucky in the amount of $9,800,000. The
new 10-year interest only loan has an interest rate of 5.40%. The loan matures in January 2035.

Liquidity
Outlook and Going Concern Considerations

The
Company’s short-term liquidity requirements include payments for Hotel operating costs, payroll, management and franchise fees,
taxes, corporate overhead, interest on outstanding debt, and regular maintenance. Long-term liquidity requirements primarily include
scheduled debt maturities and continued capital investments to maintain the Hotel’s competitive positioning.

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