Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 10

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 10
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 not be recoverable. We generally assess recoverability
at the property (asset-group) level – the lowest level for which identifiable cash flows are largely independent.

When
indicators of impairment exist, we compare the carrying amount to the sum of the asset group’s undiscounted cash flows expected
from use and eventual disposition. If not recoverable we measure an impairment loss as the excess of carrying amount over fair value.
Fair value is estimated using market and/or income approaches, which require significant judgment, including assumptions about occupancy,
ADR/RevPAR, operating margins, required capital expenditures, terminal values, and market discount and capitalization rates. Our indicators
of impairment assessment considers industry conditions, property location, market dynamics, historical performance, and property-specific
facts available at the time; conclusions may vary period to period as facts change.

Changes
in economic or operating conditions could result in future impairment charges. Historically, changes in estimates used in our process
have not resulted in material subsequent-period impairment charges.

There
were no indicators of impairment for our hotel investments or definite-lived intangible assets, and no impairment losses were recorded
for the three months ended September 30, 2025 and 2024, respectively.

STOCK-BASED
COMPENSATION

We account for stock-based compensation by measuring and recognizing as compensation expense the fair value of all share-based payment
awards made to employees, including employee stock options, restricted stock awards and employee stock purchases related to the Employee
Stock Purchase Plan, or ESPP, based on estimated grant date fair values. The determination of fair value involves a number of significant
estimates. We use the Black Scholes option pricing model to estimate the value of employee stock options which requires a number of assumptions
to determine the model inputs. These include the expected volatility of our stock and employee exercise behavior which are based on historical
data as well as expectations of future developments over the term of the options.

-27-

Item
3. Quantitative and Qualitative Disclosures about Market Risk

We
are a “smaller reporting company” and therefore we are not required to provide information required by this Item.

Item
4. Controls and Procedures.

EVALUATION
OF DISCLOSURE CONTROLS AND PROCEDURES

The
Company’s management, with the participation of the Company’s Chief Executive Officer and Principal Financial Officer, evaluated
the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this Quarterly Report
on Form 10