Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 15

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 15
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 tax rates
change and as the values of properties are assessed and reassessed by tax authorities. Our real estate taxes do not depend on our revenues,
and generally we could not reduce them other than by disposing of our real estate assets.

Insurance
premiums have increased significantly in recent years, and continued escalation may result in our inability to obtain adequate insurance
at acceptable premium rates. A continuation of this trend would appreciably increase the operating expenses of the Hotel. If we do not
obtain adequate insurance, to the extent that any of the events not covered by an insurance policy materialize, our financial condition
may be materially adversely affected. Further, factors such as climate change, extreme weather events, and increased litigation risk
have contributed to rising insurance premiums and reduced coverage availability in certain markets, including California. Limited insurance
options or higher costs could pressure our operating margins and cash flows.

In
the future, our property may be subject to increases in real estate and other tax rates, utility costs, operating expenses, insurance
costs, repairs and maintenance and administrative expenses, which could reduce our cash flow and adversely affect our financial performance.
If our revenues decline and we are unable to reduce our expenses in a timely manner, our business and results of operations could be
adversely affected.

10

Risk
of declining market values in marketable securities.

The
Company invests from time to time in marketable securities. As a result, the Company is exposed to market volatility in connection with
these investments. The Company’s financial position and financial performance could be adversely affected by worsening market conditions
or sluggish performance of such investments. Factors such as interest rate fluctuations, geopolitical events, changes in credit ratings,
and overall capital market volatility could also lead to unrealized or realized losses in our investment portfolio. In addition, a prolonged
decline in market values could reduce our liquidity or our ability to meet certain financial covenants, and changes in fair value of
equity securities are recognized in earnings, which can increase the volatility of our reported results.

Illiquidity
risk in nonmarketable securities.

Nonmarketable
securities are, by definition, instruments that are not readily salable in the capital markets, and when sold are usually at a substantial
discount. Thus, the holder is limited to return on investment from any income producing feature of the instrument, as any sale of such
an instrument would be subject to a substantial discount. Thus, a holder may need to hold such instruments for a longer period of time