Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 44

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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30, 2024. The Company also held marketable securities, net of margin balances, of $751,000, compared to $7,266,000 at June 30, 2024.
These marketable securities are short-term and considered readily convertible to cash.

Related
Party Credit Facility – InterGroup

Portsmouth
continues to rely on a related party revolving credit facility with its parent company, InterGroup to support hotel operations and liquidity
needs. This unsecured facility, originally entered into in 2014 and subsequently modified, has undergone several amendments over time.

Key
modifications include:

●December
                                            2021: Portsmouth assumed $11.35 million in outstanding debt upon the dissolution of Justice
                                            Investors L.P.

●July
                                            2023: Increased available borrowings to $20,000,000 and extended maturity to July 31, 2025
                                            with a 0.5% loan modification fee.

●March
                                            2024: Increased available borrowings to $30,000,000 with a 0.5% loan modification fee

●March
                                            2025: Further increased available borrowing capacity to $40,000,000 and extended the maturity
                                            to July 31, 2027.

The
facility bears 12% annual interest, is interest-only, and may be prepaid at any time without penalty. During the nine months ended March
31, 2025, Portsmouth borrowed an additional $11,615,000 to fund Hotel refinancing and Hotel operations. As of that date, the outstanding
balance was $38,108,000, and Portsmouth had not made any principal repayments. This facility remains a critical source of liquidity and
flexibility for Portsmouth. See also Note 11 – Related Party and Other Financing Transactions. Portsmouth has not made any paid-downs
to its note payable to InterGroup. All material intercompany accounts and transactions have been eliminated in consolidation.

Real
Estate

In
December 2024, the Company refinanced mortgage on its 157-unit apartment located in Florence, Kentucky in the amount of $9,800,000. The
term of the loan is approximately 10 years with an interest rate at 5.40%. The loan matures in January 2035.

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Liquidity
Requirements

The
Company’s short-term liquidity needs include:

●Hotel
                                            operating costs, including payroll, utilities, franchise and management fees,

●Corporate
                                            overhead