Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 85

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 85
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    Investment in marketable securities: 

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

    As of June 30, 2024 
    Level 1 
  
    Assets: 

    Investment in marketable securities: 

    REITs and real estate companies 
    $3,358,000 
  
    Communication services 
     1,994,000 
  
    T-Notes 
     933,000 
  
    Energy 
     303,000 
  
    Financial services 
     269,000 
  
    Healthcare 
     179,000 
  
    Utilities 
     163,000 
  
    Industrial 
     159,000 
  
    Basic materials 
     75,000 
  
    Technology 
     21,000 
  
    Total 
    $7,454,000 

The
fair values of investments in marketable securities are determined by the most recently traded price of each security at the balance
sheet date (quoted prices in active markets; Level 1 inputs).

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 as required under the March 28, 2025 senior Loan Agreement, 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 statements
of operations. At inception the cap was recorded at its fair value, which equaled the premium paid; subsequent changes in fair value
are recognized in earnings in each reporting period.

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