Company: GIPRW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0000950170-25-072868
Chunk: 30

Company: GENERATION INCOME PROPERTIES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 30
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30-day interest rate for the applicable interest rate period plus 2.75%, with interest payable monthly after each 30-day interest period. The interest swap fixed the interest rate at 3.72% per annum.  The Company has not elected hedge accounting and has reported periodic changes in derivative valuations in loss on derivative valuation, net for $293,499 for the three months ended March 31, 2025. As of March 31, 2025, the Company recognized a Derivative Liability of $423,753 and derivative asset of $101,045, which was included in Escrow Deposits and Other assets on the face of the balance sheet.   The fair value of the Company's interest rate derivatives is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. All inputs are considered Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.  The carrying amounts and estimated fair values of our financial instruments are as follows: 

         March 31, 2025

         March 31, 2024

         Carrying Amount

         Fair Value

         Carrying Amount

         Fair Value

         Financial assets:

         Cash and cash equivalents
         $
         630,557

         $
         630,557

         $
         1,655,820

         $
         1,655,820

         Restricted cash
          
         34,500

         34,500

         34,500

         34,500

         Interest rate swaps
          
         101,045

         101,045

         148,710

         148,710

         Financial liabilities:

         Interest rate swaps
          
         423,753

         423,753

         169,942

         169,942

         Note 11 – Subsequent Events  There were no subsequent events other than noted in the Related Party footnote.  Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCa