Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 40

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 the good or service is transferred to the hotel guest, which
    is generally when the room stay occurs.

    ●
    Non-cancelable
    room reservations and banquet or conference reservations represent a series of distinct goods or services provided over time
    and satisfied as each distinct good or service is provided, which is reflected by the duration of the room reservation.

    ●
    Other
    ancillary goods and services are purchased independently of the room reservation at standalone selling prices and are considered
    separate performance obligations, which are satisfied when the related good or service is provided to the hotel guest.

    ●
    Components
    of package reservations for which each component could be sold separately to other hotel guests are considered separate performance
    obligations and are satisfied as set forth above.

Hotel
revenue primarily consists of hotel room rentals, revenue from accommodations sold in conjunction with other services (e.g., package
reservations), food and beverage sales and other ancillary goods and services (e.g., parking). Revenue is recognized when rooms are occupied
or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are
provided. For package reservations, the transaction price is allocated to the performance obligations within the package based on the
estimated standalone selling prices of each component.

We
do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the
nature of our business, our revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at
our hotel are refunded to hotel guests if the guest cancels within the specified time period, before any services are rendered. Refunds
related to service are generally recognized as an adjustment to the transaction price at the time the hotel stay occurs or services are
rendered.

Revenue
recognition from apartment rental commences when an apartment unit is placed in service and occupied by a rent-paying tenant. Apartment
units are leased on a short-term basis, with no lease extending beyond one year.

Contract
Assets and Liabilities

The
Company does not have any material contract assets as of September 30, 2025 and June 30, 2025, other than trade and other receivables,
net on our consolidated balance sheets. Our receivables are primarily the result of contracts with customers, which are reduced by an
allowance for doubtful accounts that reflects our estimate of amounts that will not be collected.

Portsmouth
records contract liabilities when cash payments