Company: INTG
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006758
Chunk: 62

Company: INTERGROUP CORP
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 62
---

Company does not have any material contract assets as of December 31, 2024 and June 30, 2024, 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.

The
Company records contract liabilities when cash payments are received or due in advance of guests staying at our Hotel, which are presented
within accounts payable and other liabilities – Hotel on our condensed consolidated balance sheets and had a balance of $370,000
at July 1, 2024. Contract liabilities increased
to $462,000 as of December 31, 2024. The increase was driven by advance for services performed after December 31, 2024. Contract liabilities
decreased to $203,000 as
of December 31, 2023 from $290,000
as of June 30, 2023.

Contract
Costs

We
consider sales commissions earned to be incremental costs of obtaining a contract with our customers. As a practical expedient, we expense
these costs as incurred as our contracts with customers are less than one year.

    -12-

NOTE
4 – INVESTMENT IN HOTEL, NET

Investment
in hotel consisted of the following as of:

 SCHEDULE OF INVESTMENT IN HOTEL

    Accumulated  
    Net Book 
  
    December 31, 2024 
    Cost  
    Depreciation  
    Value 

    Land 
    $2,738,000  
    $-  
    $2,738,000 
  
    Finance lease ROU assets 
     1,805,000  
     (1,605,000) 
     200,000 
  
    Furniture and equipment 
     39,581,000  
     (32,326,000) 
     7,255,000 
  
    Building and improvements 
     68,502,000  
     (39,011,000) 
     29,491,000 
  
    Investment in Hotel,
    net 
    $112,626,000  
    $(72,942,000) 
    $39,684,000 

    Accumulated  
    Net Book 
  
    June 30, 2024