Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 102

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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 ESTIMATES

Critical
accounting policies are those that are most significant to the portrayal of our financial position and results of operations and require
judgments by management in order to make estimates about the effect of matters that are inherently uncertain. The preparation of these
Condensed Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts in our consolidated
financial statements. We evaluate our estimates on an ongoing basis, including those related to the consolidation of our subsidiaries,
recognition of our revenues, allowances for bad debts, accruals, asset impairments, other investments, income taxes and commitments and
contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under
the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The
actual results may differ from these estimates or our estimates may be affected by different assumptions or conditions. There have been
no material changes to the Company’s critical accounting policies during the three months ended September 30, 2025.

INCOME
TAXES

We
apply ASC 740 to account for income taxes. Significant judgment is required to estimate the future tax consequences of events recognized
in our condensed consolidated financial statements and tax returns, including the realizability of deferred tax assets and the effects
of changes in tax laws or their interpretation. Our income tax returns are subject to examination by the IRS and other taxing authorities;
changes in our assessment of these matters could materially affect our consolidated financial statements. We evaluate tax positions taken
or expected to be taken on a tax return and recognize benefits only when it is more-likely-than-not that the position will be sustained
upon examination, based on the technical merits and assuming full knowledge by the taxing authority. For positions that meet this threshold,
the recognized benefit is measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate
settlement. Positions that do not meet the recognition threshold are not recognized. Estimates, assumptions, and judgments are inherent
in these evaluations, and changes in our assessments could materially affect our consolidated financial statements. We recognize interest
and penalties related to uncertain tax positions in income tax expense.

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DEFERRED
INCOME TAXES – VALUATION ALLOWANCE

We
assess the realizability of deferred tax assets (“DTA”) each reporting period on a jurisdiction-by-jurisdiction basis. A
valuation allowance is recorded when it is more-likely