Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 18

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 18
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 addition, we are subject to the
numerous rules and regulations relating to state and federal taxation. Compliance with these rules and regulations requires significant
management attention. Furthermore, compliance costs associated with such laws, regulations and licenses are significant. Any change in
the laws, regulations or licenses applicable to our business or a violation of any current or future laws or regulations applicable to
our business could require us to make substantial expenditures or could otherwise negatively affect the hotel’s operations. We
are also subject to environmental, health, safety, accessibility, and privacy regulations, as well as increasing expectations for environmental,
social, and governance (ESG) disclosures and performance. Failure to comply with any of these requirements, or changes in regulatory
standards, could result in fines, penalties, litigation, or restrictions on our operations.

Violations
of laws could result in, among other things, disciplinary action. If we fail to comply with regulatory requirements, this may result
in an adverse effect on our business. In addition, heightened regulatory scrutiny or enforcement actions could divert management’s
attention and resources, impacting our financial performance.

Uninsured
and underinsured losses could adversely affect our financial condition and results of operations.

There
are certain types of losses, generally of a catastrophic nature, such as earthquakes and floods or terrorist acts, which may be uninsurable
or not economically insurable, or may be subject to insurance coverage limitations, such as large deductibles or co-payments. We will
use our discretion in determining amounts, coverage limits, deductibility provisions of insurance and the appropriateness of self-insuring,
with a view to maintaining appropriate insurance coverage on our investments at a reasonable cost and on suitable terms. Uninsured and
underinsured losses could harm our financial condition and results of operations. We could incur liabilities resulting from loss or injury
to the Hotel or to persons at the Hotel. Claims, whether or not they have merit, could harm the reputation of the Hotel or cause us to
incur expenses to the extent of insurance deductibles or losses in excess of policy limitations, which could harm our results of operations.
Moreover, recent trends in the insurance market have resulted in reduced coverage availability and higher premiums for catastrophic risks,
particularly in California. Climate change, extreme weather events, and geopolitical instability could further pressure insurance capacity
and costs.

In
the event of a catastrophic loss, our insurance coverage may not be sufficient to cover the full current market value or replacement
cost of our lost investment. Should an uninsured loss