Company: INTG
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006758
Chunk: 91

Company: INTERGROUP CORP
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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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
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 six months ended December 31, 2024.

INCOME
TAXES

Judgment
is required in addressing the future tax consequences of events that have been recognized in our consolidated financial statements or
tax returns (e.g., realization of deferred tax assets, changes in tax laws, or interpretations thereof). In addition, we are subject
to examination of our income tax returns by the IRS and other tax authorities. A change in the assessment of the outcomes of such matters
could materially impact our consolidated financial statements. We evaluate tax positions taken or expected to be taken on a tax return
to determine whether they are more likely than not of being sustained, assuming that the tax reporting positions will be examined by
taxing authorities with full knowledge of all relevant information, prior to recording the related tax benefit in our consolidated financial
statements. If a position does not meet the more likely than not standard, the benefit cannot be recognized. Assumptions, judgment, and
the use of estimates are required in determining if the “more likely than not” standard has been met when developing the
provision for income taxes. A change in the assessment of the “more likely than not” standard with respect to a position
could materially impact our consolidated financial statements.

The
Company and its subsidiary Portsmouth, compute and file income tax returns and prepare discrete income tax provisions for financial reporting.
The income tax expense during the three months ended December 31, 2024 and 2023 represents primarily the combined income tax effect of
Portsmouth’s pretax loss which includes the