Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 51

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 51
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 its senior and mezzanine debt in March 2025,

●Continuing
                                            cost controls and selective capital expenditure deferrals,

●Strategic
                                            use of related party financing, and

●Maintenance
                                            of a lender-controlled lockbox cash management system.

While
management believes that current liquidity sources and available borrowing capacity will be sufficient to support near-term working capital
needs—even in the event of continued pressure on hotel performance indicators such as occupancy and RevPAR—there can be no
assurance that unforeseen market or operational conditions will not adversely affect the Company’s liquidity position.

From
a parent-only perspective, InterGroup expects to fund its obligations primarily from real estate operating cash flows, property-level
refinancings and sale of non-core properties depending on market conditions. Management monitors interest-rate and capital-markets conditions
and may adjust capital allocation (including deferring discretionary capex or pursuing asset sales) to preserve liquidity.

As
of March 28, 2025, the Hotel senior mortgage was refinanced and the mezzanine loan amended at the Portsmouth subsidiary level. The related
cash-management/lockbox applies only to the Hotel loan structure; it does not restrict InterGroup’s non-Hotel properties. InterGroup
is not the primary obligor on the Hotel financing and has provided only limited non-recourse “carve-out/springing recourse”
guaranties (see Note 10 and ASC 460 discussion). Portsmouth’s Hotel operations are currently self-funded under the existing cash-management
structure. See Item 15(a)(3) – Exhibits. The senior loan agreement, mezzanine loan amendment, and cash management agreement are
incorporated by reference to Portsmouth Square, Inc.’s Form 10-K for the year.

The
Company continues to evaluate strategic alternatives and operational adjustments in response to ongoing macroeconomic and market-specific
challenges in San Francisco’s hospitality sector and broader multifamily markets.

Going
Concern — Portsmouth (Subsidiary Only)

The
going-concern uncertainty discussed below pertains solely to Portsmouth Square, Inc. (“Portsmouth”), the Company’s
majority-owned subsidiary. InterGroup (parent) has not had a going-concern uncertainty.

In
the Company’s June 30, 2024 Form 10-K and subsequent Form 10-Q, maturities of Portsmouth’s senior mortgage and mezzanine
loans on January 1, 2024, together with related default notices, raised substantial doubt about Portsmouth’s ability to continue