Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 72

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 72
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.

    ●
    Other ancillary goods
    and services are purchased independently of the room reservation at standalone selling prices and are considered separate performance
    obligations, which are satisfied when the related good or service is provided to the hotel guest.

    ●
    Components of package
    reservations for which each component could be sold separately to other hotel guests are considered separate performance obligations
    and are satisfied as set forth above. Consideration is allocated to performance obligations based on relative standalone selling
    prices.

    42

Hotel
revenue primarily consists of hotel room rentals, revenue from accommodations sold in conjunction with other services (e.g., package
reservations), food and beverage sales and other ancillary goods and services (e.g., parking). Revenue is recognized when rooms are
occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and
services are provided. For package reservations, the transaction price is allocated to the performance obligations within the
package based on the estimated standalone selling prices of each component. Service charges are similar amounts collected from
customers and are evaluated to determine whether the Company is acting as principal or agent.

We
do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the
nature of our business, our revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at
our hotel are refunded to hotel guests if the guest cancels within the specified time period, before any services are rendered. Refunds
related to service are generally recognized as an adjustment to the transaction price at the time the hotel stay occurs or services are
rendered. See Note 3 – Revenue.

Revenue
recognition from apartment rental commences when an apartment unit is placed in service and occupied by a rent-paying tenant. Apartment
units are leased on a short-term basis, with no lease extending beyond one year. Rental income is recognized on a straight-line basis
over the lease term; variable consideration (e.g., fees) is recognized as earned.

Advertising
Costs

Advertising
costs are expensed as incurred and are included in Hotel operating expenses in the consolidated statements of operations. Advertising
costs were $263,000 and $150,000 for the years ended June 30, 2025 and 2024, respectively.

Income
Taxes

Deferred
income taxes are calculated under the liability method. Deferred income tax assets and liabilities are based on differences between the