Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 228

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 8
Chunk 228
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 whether due to error or fraud.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part
of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing
an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our
audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that our audits provide a reasonable basis for our opinion.

33

Critical
Audit Matter

The
critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements
that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are
material to the consolidated financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication
of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and
we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts
or disclosures to which it relates.

Evaluation of the Company’s Ability
to Continue as a Going Concern

Description
of the Matter:

The Company’s recurring losses from operations, negative cash flows,
accumulated deficit and long-term debt maturities raised substantial doubt about its ability to continue as a going concern. As disclosed
in Note 1 to the financial statements, the Company’s ability to continue as a going concern involved management’s evaluation
of the effect of successfully refinancing Portsmouth’s long-term debt and management’s significant assumptions and judgments
related to forecasting future cash flows.

We
identified the evaluation of Portsmouth’s ability to continue as a going concern as a critical audit matter. This matter
required especially challenging auditor judgment due to the complexity and subjectivity involved in assessing
management’s forecasts and assumptions, and the potential impact on the financial statements if the going concern basis was
not appropriate.

How
We Addressed the Matter in Our Audit:

To evaluate the