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FAIR VALUE MEASUREMENTS
 12 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 6 - FAIR VALUE MEASUREMENTS

 

The carrying values of the Company’s financial instruments that are not measured at fair value on a recurring basis approximate fair value due to their short maturities (including accounts receivable, other assets, accounts payable and other liabilities, due to securities broker and obligations for securities sold) or the nature and terms of the obligation (such as other notes payable and mortgage notes payable). Management has determined that there are no material differences between the carrying amounts and estimated fair values of these financial instruments as of June 30, 2025 and 2024.

 

The assets measured at fair value on a recurring basis are as follows:

 

       % of Total 
As of June 30, 2025      Investment 
Industry Group  Fair Value   Securities 
         
REITs and real estate companies  $127,000    100.0%

 

       % of Total 
As of June 30, 2024      Investment 
Industry Group  Fair Value   Securities 
         
REITs and real estate companies  $202,000    96.7%
Basic materials   7,000    3.3%
Investment in marketable securities   $209,000    100.0%

 

The fair values of investments in marketable securities are classified as Level 1 within the fair value hierarchy and are determined using quoted prices in active markets for identical assets. Specifically, the fair value of each security is based on the most recently traded price at the balance sheet date.

 

On March 31, 2025, the Company, through its affiliate Justice Operating Company, LLC, entered into an interest rate cap agreement (the “Interest Rate Cap”) with Goldman Sachs Bank USA. The agreement was executed in connection with a variable-rate mortgage loan and is 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.

 

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 June 30, 2025:

 

Derivative Type  Notional Amount   Balance Sheet Classification   Fair Value   Fair Value Hierarchy 
Interest Rate Cap  $67,000,000    Other Assets   $52,000    Level 2 

 

There have been no material changes to the Company’s fair value measurement methodologies or classification of instruments during the periods presented.