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The Intergroup Corporation (INTG) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a net loss of $3,697,000 compared to a net loss of $2,151,000 in the same quarter the previous year. The increase in net loss is primarily attributed to higher mortgage interest expenses due to a 4% default additional interest rate.
Hotel operations reported a net loss of $2,838,000 for the quarter, compared to a net loss of $1,645,000 in the previous year. Total hotel revenues were $9,965,000, slightly down from $10,225,000 the previous year, with room revenues remaining flat and food and beverage revenue decreasing.
Real estate operations generated $4,476,000 in revenue, up from $4,096,000 the previous year, due to decreased vacancy rates. Operating expenses for real estate decreased to $2,208,000 from $2,806,000, attributed to lower repairs and maintenance costs.
The company reported a net loss on marketable securities of $598,000 for the quarter, compared to a net gain of $1,760,000 the previous year. This loss includes a realized gain of $404,000 and an unrealized loss of $1,002,000.
The company continues to face challenges in refinancing its existing debt, with a senior mortgage loan and a mezzanine loan totaling $100,289,000 that matured on January 1, 2024. Although the company has made progress in refinancing discussions, substantial doubt remains regarding its ability to continue as a going concern.
Cash and cash equivalents were reported at $10,420,000 as of December 31, 2024, up from $4,333,000 as of June 30, 2024. The company also reported restricted cash of $3,966,000.
The filing details various financial obligations, including a mortgage and subordinated notes payable totaling $195,689,000, with interest and other notes payable bringing total obligations to $227,224,000.
The company acknowledges ongoing discussions with the City of San Francisco regarding the removal of an ornamental pedestrian bridge, with a final plan expected by Spring 2025.
The company identified a material weakness in its internal controls over financial reporting related to stock-based compensation, which management is addressing.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the The Intergroup Corporation quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.