Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 52

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 of May 24, 2022, the City has purported to revoke the Permit and on June 13, 2022,
directed the Company to submit a general bridge removal and restoration plan (the “Plan”) at the Company’s expense.
The Company disputes the legality of the purported revocation of the Permit. The Company further disputes the existence of any legal
or contractual obligation to remove the Bridge at its expense. In particular, representatives of the Company participated in meetings
with the City on and at various times after August 1, 2019, to discuss a collaborative process for the possible removal of the Bridge.
Until the purported revocation of the Permit in 2022, the City representatives repeatedly and consistently promised and agreed that the
City will pay for the associated costs of any Bridge removal. Nevertheless, without waiving any rights, in an effort to understand all
of the available options, and to provide a response to the City’s directives, the Company has engaged a Project Manager, a structural
engineering firm and an architect to participate in the development of a Plan for the Bridge removal, as well as the reconstruction of
the front of the Hilton Hotel. The Company has been working cooperatively with the City on the process for removal of the Bridge and
its related physical encroachments, including obtaining regulatory approvals and permits. The Company is currently in discussion with
the City regarding both the process and financial responsibility for the implementation of the Plan and reconstruction of the impacted
portions of the Hotel. Those discussions are expected to continue at least through the second quarter of 2025. A final Plan is currently
not expected to be completed and approved until the Spring of 2025, and permits for the Bridge demolition are unlikely to be obtained
until August of 2025 at the earliest.

The
Company may be subject to legal proceedings, claims, and litigation arising in the ordinary course of business. The Company will defend
itself vigorously against any such claims. Management does not believe that the impact of such matters will have a material effect on
the financial conditions or result of operations when resolved.

Item
1A. RISK FACTORS

On
November 21, 2024, the Company received a Staff Deficiency Letter from the Nasdaq Stock Market Listing Qualifications Department
indicating that the Company did not maintain minimum Market Value of Listed Securities (“MVLS”) of $35 million from
October 7, 2024 to November 20, 2024 and thus no longer complied