Company: GIPRW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046959
Chunk: 132

Company: GENERATION INCOME PROPERTIES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1B
Chunk 132
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 with interest payable monthly after each 30-day interest period. The interest swap fixed the interest rate at 6.3% per annumThe Company has not elected hedge accounting and has reported periodic changes in derivative valuations in Gain on derivative valuation for $372,573 for the twelve months ended December 31, 2024. As of December 31, 2024, the Company recognized a Derivative Liability of $169,685 and Derivative asset of $140,476, 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 

 80

fair value measurements. All inputs are considered Level 2 inputs. with the exception of credit risk. Level 2 inputs are derived from or corroborated by observable market data. The carrying amounts and estimated fair values of our financial instruments are as follows: 

          December 31, 2024

          December 31, 2023

          Carrying Amount

          Fair Value

          Carrying Amount

          Fair Value

          Financial assets:

          Cash and cash equivalents
          $
          612,939

          $
          612,939

          $
          3,117,446

          $
          3,117,446

          Restricted cash
           
          34,500

          34,500

          34,500

          34,500

          Interest rate swaps
           
          140,476

          140,476

          135,642

          135,642

          Financial liabilities:

          Interest rate swaps
           
          169,685

          169,685

          537,424

          537,424

         Note 13 – Subsequent Events LeasingThe Company received notice on February 25, 2025 that GSA Vacaville at 991 Nut Tree Road would be terminating their lease subject to a unilateral lease amendment by the White House administration's DOGE. The terms of termination include continuing vacating the premises on or around August 202