Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 70

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 70
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 standard margin agreements with national brokerage
firms. Various securities brokers have advanced funds to the Company for the purchase of marketable securities under standard margin
agreements. These advanced funds are recorded as a liability and are collateralized by the related marketable securities; related interest
is recognized in interest expense.

Obligation
for Securities Sold

Obligations
for securities sold short and written options are recognized as liabilities and measured at fair value with changes in fair value recognized
in earnings (ASC 815/ASC 860). Short positions may be covered with current holdings or subsequent purchases.

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Accounts
Payable and Other Liabilities

Accounts
payable and other liabilities include trade payables, advanced customer deposits, accrued wages, accrued real estate taxes, and other
liabilities.

Treasury
Stock

The
Company records the acquisition of treasury stock under the cost method. During the years ended June 30, 2025 and 2024, the Company purchased
24,550 and 26,972 shares of treasury stock, respectively.

Fair
Value of Financial Instruments

Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”)
in an orderly transaction between market participants at the measurement date. ASC 820 establishes a hierarchy for inputs used in measuring
fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable
inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s
assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information
available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows:

Level
1–inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level
2–inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs
that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level
3–inputs to the valuation methodology are unobservable and significant to the fair value.

Assets
Held for Sale – Accounting Policy (Continuing Operations)

Long-lived assets are classified as held for