Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 60

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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000,000, and

●Extend
                                            the maturity date to July 31, 2027.

During
the nine months ended March 31, 2025, Portsmouth borrowed an additional $11,615,000 under this facility to support Hotel operations.
As of March 31, 2025, the outstanding loan balance was $38,108,000, with no principal repayments made to date. All material intercompany
accounts and transactions have been eliminated in consolidation.

Real
Estate

In
December 2024, the Company refinanced mortgage on its 157-unit apartment located in Florence, Kentucky in the amount of $9,800,000. The
new 10-year interest only loan has an interest rate of 5.40%. The loan matures in January 2035.

Liquidity
Outlook and Going Concern Considerations

The
Company’s short-term liquidity requirements include payments for Hotel operating costs, payroll, management and franchise fees,
taxes, corporate overhead, interest on outstanding debt, and regular maintenance. Long-term liquidity requirements primarily include
scheduled debt maturities and continued capital investments to maintain the Hotel’s competitive positioning.

    -10-

As
described in Note 1, the Company has made substantial progress in refinancing its mortgage and mezzanine debt obligations, which previously
raised doubt regarding its near-term financial viability. On March 28, 2025, the Company completed the refinancing of its senior mortgage
and modified its mezzanine debt structure, both of which provide near-term relief and reduce imminent refinancing risk.

Nonetheless,
the Company’s liquidity position continues to be impacted by broader macroeconomic and market-specific factors, including high
interest rates, ongoing weakness in San Francisco’s business travel segment, and elevated operating costs. These uncertainties,
combined with the need to maintain compliance with newly established debt covenants, raise substantial doubt about the Company’s
ability to continue as a going concern within one year of the issuance of these financial statements.

Management
continues to evaluate financing strategies, capital allocation decisions, and operating efficiencies to preserve liquidity. There can
be no assurance, however, that these initiatives will be sufficient to meet all of the Company’s liquidity requirements, particularly
in the event of continued market underperformance.

The
following table provides a summary as of March 31, 2025, the Company’s material financial obligations

which
also includes interest payments.

SCHEDULE OF MATERIAL FINANCING OBLIGATION