Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 45

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 Total
    - Level 1  
    Total
    - Level 1 
  
    Investment in marketable securities: 

    REITs and real
    estate companies 
    $964,000  
    $966,000 
  
    Technology 
     2,000  
     3,000 
  
    Total 
    $966,000  
    $969,000 

Recurring
fair value measurements.

    ●
    Marketable
    equity securities (Level 1): Quoted prices in active markets for identical assets.

    ●
    Interest
    rate cap (Level 2): Valued using observable inputs including forward Terms SOFR curves and implied volatilities from third-party
    pricing services; incorporates counterparty nonperformance risk where applicable.

In
March 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 in connection with a variable-rate mortgage loan. The Interest Rate Cap limits Term SOFR
to 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 at inception. Changes in the fair value of the Interest Rate Cap are recorded in Other Income (Expense) in
the condensed consolidated statements of operations. The Interest Rate Cap is not designated as a hedging instrument under ASC 815 and
is accounted for at fair value, with changes in fair value recognized in earnings each reporting period. The cap is classified as a Level
2 within the ASC 820 fair value hierarchy.

The
following table summarizes the fair value of the derivative instrument as of September 30, 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

The
Company did not record any material nonrecurring fair value measurements (e.g., long-lived asset impairments) during the three months
ended September 30, 2025 or 2024. See Note 4 and 5 for discussion of long-lived assets.

There
have been no material changes to the Company’s fair value