Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 35

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 single-family holdings), primarily located in Texas and Southern California.

The
preparation of interim financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the amounts reported; actual results could differ from those estimates.

There
have been no material changes to the Company’s significant accounting policies during the three months ended September 30, 2025.
Please refer to the Company’s Annual Report on Form 10-K for the year ended June 30, 2025 for a summary of the significant accounting
policies.

InterGroup
has not identified conditions or events that raise substantial doubt about InterGroup’s ability to continue as a going concern.
As previously disclosed by Portsmouth, InterGroup’s consolidated subsidiary, Portsmouth’s prior going-concern uncertainty,
was alleviated as of June 30, 2025 following its refinancing. See Portsmouth’s Form 10-K for the year ended June 30, 2025 and InterGroup’s
MD&A – Liquidity for further discussion.

Recently
Issued and Adopted Accounting Pronouncements

Our
Annual Report on Form 10-K for the year ended June 30, 2025, filed with the SEC on September 29, 2025, contains a discussion on the recently
issued accounting pronouncements. As of September 30, 2025, there was no material impact from the recent adoption of new accounting pronouncements,
nor is there an expected material impact from recently issued accounting pronouncements yet to be adopted, on the Company’s Condensed
Consolidated Financial Statements.

Going
Concern Basis and Management’s Evaluation (ASC 205-40) – Subsidiary-Only (Portsmouth)

The
accompanying Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP and on a going concern basis. InterGroup
(the parent) has not had a going-concern uncertainty. The disclosure below is provided solely to summarize the going-concern matter at
the Company’s majority-owned subsidiary, Portsmouth Square, Inc. (“Portsmouth”); it does not indicate or imply a going-concern
issue for InterGroup.

    -7-

As
disclosed in Portsmouth’s Annual Report on Form 10-K for the year ended June 30, 2025, management concluded that substantial doubt
regarding Portsmouth’s ability to continue as a going concern was alleviated as of June 30, 2025, and reflected in June 30, 2025
financial statements, as a