Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 95

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 95
---
 employees, including employee stock options, restricted stock awards and employee stock purchases related to the Employee Stock
Purchase Plan, or ESPP, based on estimated grant date fair values. The determination of fair value involves a number of significant estimates.
We use the Black Scholes option pricing model to estimate the value of employee stock options which requires a number of assumptions
to determine the model inputs. These include the expected volatility of our stock and employee exercise behavior which are based on historical
data as well as expectations of future developments over the term of the options.

Item
3. Quantitative and Qualitative Disclosures about Market Risk

We
are a smaller reporting company and therefore, we are not required to provide information required by this Item of Form 10-Q.

Item
4. Controls and Procedures.

EVALUATION
OF DISCLOSURE CONTROLS AND PROCEDURES

The
Company’s management, with the participation of the Company’s Chief Executive Officer and Principal Financial Officer, has
evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under
the Exchange Act) as of the end of the quarterly period covered by this Quarterly Report on Form 10-Q. Based upon their evaluation, our
Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e)
and 15d-15(e) under the Exchange Act) were not effective because of a material weakness in our internal control over financial reporting.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there
is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented
or detected on a timely basis. Specifically, the Company’s management has concluded that our control around the interpretation
and accounting for the stock-based compensation was not effectively designed or maintained. In light of this material weakness, we performed
additional analysis as deemed necessary to ensure that our financial statements were prepared in accordance with GAAP. Accordingly, management
believes that the financial statements included in this Quarterly Report on Form 10-Q present fairly in all material respects our financial
position, results of operations and cash flows for the period presented.

CHANGES
IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There
have been no changes in the Company’s internal control over financial reporting during the last quarterly period covered by this
Quarterly