Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 92

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 92
---
000  
     567,000  
     463,000  
     317,000  
     317,000  
     315,000 
  
    Interest 
     40,970,000  
     2,454,000  
     11,667,000  
     11,098,000  
     2,648,000  
     2,582,000  
     10,521,000 
  
    Total 
    $241,487,000  
    $8,185,000  
    $13,396,000  
    $118,157,000  
    $4,735,000  
    $4,744,000  
    $92,270,000 

IMPACT
OF INFLATION

Hotel
room rates are typically impacted by supply and demand factors, not inflation, since rental of a hotel room is usually for a limited number
of nights. Room rates can be, and usually are, adjusted to account for inflationary cost increases. Since Aimbridge has the power and
ability under the terms of its management agreement to adjust hotel room rates on an ongoing basis, there should be minimal impact on
Hotel’s revenues due to inflation. The Company’s revenues are also subject to interest rate risks, which may be influenced
by inflation. For the two most recent fiscal years, the impact of inflation on the Company’s income is not viewed by management
as material.

The
Company’s residential rental properties provide income from short-term operating leases and no lease extends beyond one year. Rental
increases are expected to offset anticipated increased property operating expenses.

-28-

CRITICAL
ACCOUNTING POLICIES AND USE OF 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
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, to 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