Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 152

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 7A
Chunk 152
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 the terms of the HMA, base management fee (“Basic Fee”) payable to Aimbridge equals one and seven-tenths percent (1.70%)
of total Hotel revenue. In addition to the Basic Fee, Aimbridge may be entitled to an annual incentive fee for each fiscal year equal
to ten percent (10%) of the amount by which Gross Operating Profit in the current fiscal year exceeds the previous fiscal year’s
Gross Operating Profit.

    39

In
addition to the operations of the Hotel, the Company also generates income from the ownership of real estate and investments in marketable
securities. Properties include apartment complexes, commercial real estate, and three single-family houses as strategic investments.
The properties are located throughout the United States, but are concentrated in Texas and Southern California. The Company also has
investments in unimproved real property. All of the Company’s residential rental properties are managed in-house.

Principles
of Consolidation

The
consolidated financial statements include the accounts of the Company and Portsmouth. All significant inter-company transactions and
balances have been eliminated. The Company evaluates its interests in other entities to determine whether such entities are variable
interest entities (“VIEs”) and consolidates any VIEs for which the Company is the primary beneficiary pursuant to ASC 810.

Investment
in Hotel, Net

Property
and equipment are stated at cost. Building improvements are depreciated on a straight-line basis over their useful lives ranging from
3 to 39 years. Furniture, fixtures, and equipment are depreciated on a straight-line basis over their useful lives ranging from 3 to
7 years.

Repairs
and maintenance are charged to expense as incurred. Costs of significant renewals and improvements are capitalized and depreciated over
the shorter of the remaining estimated useful life or life of the asset. The cost of assets sold or retired, and the related accumulated
depreciation are removed from the accounts; any resulting gain or loss is included in other income (expense).

The
Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable in accordance with ASC 360. If the carrying amount of the asset, including any intangible assets associated
with that asset, exceeds its estimated undiscounted net cash flow, before interest, the Company records an impairment loss equal to the
difference between the asset’s carrying amount and its estimated fair value. If impairment is recognized, the reduced carrying
amount