Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 23

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 23
---
 
  
    Communication
    services 
     -  
     1,994,000 
  
    Industrial 
     -  
     159,000 
  
    Energy 
     -  
     303,000 
  
    Utilities 
     -  
     163,000 
  
    Total 
    $751,000  
    $7,454,000 

    -14-

The
fair values of investments in marketable securities are determined by the most recently traded price of each security at the balance
sheet date.

On March 31, 2025, Portsmouth,
through its affiliate Justice Operating Company, LLC, entered into an interest rate cap agreement (the “Interest Rate Cap”)
with Goldman Sachs Bank USA. The agreement was executed in connection with a variable-rate mortgage loan and is intended to economically
limit the Company’s exposure to increases in Term SOFR. The Interest Rate Cap caps Term SOFR at 4.50% and has a notional amount
equal to or greater than the outstanding principal balance of the loan. The Company paid a premium of approximately $136,000 for the cap
at inception. Changes in the fair value of the Interest Rate Cap are recorded in Other Income (Expense) within the consolidated statement
of operations.

The Interest Rate Cap is not
designated as a hedging instrument under ASC 815 and is therefore accounted for at fair value, with changes in fair value recognized in
earnings each reporting period. The cap is classified as a Level 2 financial instrument under the fair value hierarchy established by
ASC 820, as its valuation is based on observable market inputs including interest rate curves and volatility assumptions obtained from
a third-party pricing service.

The following table summarizes
the fair value of the derivative instrument as of March 31, 2025:
 SCHEDULE
OF DERIVATIVE INSTRUMENT

    Derivative
    Type 
    Notional
    Amount  
    Balance
    Sheet Classification 
    Fair
    Value 
    Fair
    Value Hierarchy 
  
    Interest Rate 
    $67,000,000  
    Other Assets 
    $136,000 
    Level
    2 

NOTE
8 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH

The
following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance
sheets that sum to the total of the same such