Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 68

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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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 amounts shown in the condensed consolidated statement of cash flows:

SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH 

    As of 
    March
    31, 2025  
    June
    30, 2024 
  
    Cash and cash
    equivalents 
    $4,017,000  
    $4,333,000 
  
    Restricted
    cash 
     9,377,000  
     4,361,000 
  
    Total cash, cash equivalents,
    and restricted cash shown in the condensed consolidated statements of cash flows 
    $13,394,000  
    $8,694,000 

Restricted
cash is comprised of amounts held by lenders for payment of real estate taxes, insurance, replacement and capital addition reserves for
the Hotel and real estate properties.

NOTE
9 – STOCK BASED COMPENSATION PLANS

The
Company follows Accounting Standard Codification (ASC) Topic 718 “Compensation – Stock Compensation”, which addresses
accounting for equity-based compensation arrangements, including employee stock options and restricted stock units.

Please
refer to Note 15 – Stock Based Compensation Plans in the Company’s Form 10-K for the year ended June 30, 202