Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 34

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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flows associated with the Los Angeles property classified as held for sale are included within the respective operating, investing, and
financing activities of continuing operations in the consolidated statements of cash flows.

The
accompanying notes are an integral part of these (unaudited) condensed consolidated financial statements.

-6-

THE
INTERGROUP CORPORATION

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

(UNAUDITED)

NOTE
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The
accompanying unaudited condensed consolidated financial statements of The InterGroup Corporation (“InterGroup” or the “Company”)
have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable
to interim financial reporting. As permitted under those rules and regulations, certain information and footnote disclosures normally
included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America
(“U.S. GAAP”) have been condensed or omitted. In the opinion of management, all normal recurring adjustments considered necessary
for a fair presentation have been included. The results of operations for the interim periods presented are not necessarily indicative
of results expected for the full fiscal year. The unaudited condensed consolidated financial statements include the accounts of our wholly
owned and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation.

These
unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements of InterGroup
and the notes therein included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025. The June 30, 2025
condensed consolidated balance sheet was derived from the audited consolidated balance sheet as included in the Company’s Form
10-K for the year ended June 30, 2025.

InterGroup
consolidates its majority-owned subsidiaries, including Portsmouth Square, Inc. (“Portsmouth”), and all intercompany balances
and transactions are eliminated. As of September 30, 2025, InterGroup owned approximately 75.9% of Portsmouth’s outstanding common
shares.

InterGroup’s
activities include: (i) hospitality through Portsmouth’s ownership of the Hilton San Francisco Financial District (consolidated
in InterGroup’s financial statements), and (ii) real estate investment and rental operations (apartment complexes, a commercial
property, and certain strategic