Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 244

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 8
Chunk 244
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 where realization is not likely.

As
of June 30, 2025 and 2024, the Company had $1,665,000 of unrecognized tax benefits, the recognition of which would affect the effective
tax rate. Management does not expect these unrecognized tax benefits to reverse within the next twelve months. Interest and penalties
related to income tax matters are recognized as a component of income tax expense, and no such amounts were recorded as of June 30, 2025
or June 30, 2024. 

    43

Assets
and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions
are judged to not meet the “more-likely-than-not” threshold based on the technical merits of the positions.

Earnings
Per Share

Basic
net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number
of common shares outstanding. The computation of diluted net income per share is similar to the computation of basic net income per share
except that the weighted-average number of common shares is increased to include the number of additional common shares that would have
been outstanding if potential dilutive common shares had been issued. The basic and diluted earnings per share are the same for the fiscal
year ended June 30, 2025 and 2024 because the Company had a net loss. Potentially dilutive securities were anti-dilutive for all periods
presented.

Use
of Estimates

The
preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions regarding certain types of
assets, liabilities, revenues, and expenses. Actual results may differ from those estimates. Management considers new evidence, both
positive and negative, that could affect its view of the future realization of deferred tax assets and when appropriate, records tax
valuation allowances based on that evidence and estimates. As of June 30, 2025 based on taxable income that may be available under tax
law, the deferred tax asset is not more likely than not to be realized.

Debt
Issuance Costs

Debt
issuance costs related to a recognized debt liability are presented in the consolidated balance sheets as a direct deduction from the
carrying amount of the debt liability and are amortized over the life of the debt. Loan amortization costs are included in interest expense
in the consolidated statements of operations.

Recently
Issued and Adopted Accounting Pronouncements

In