v3.26.1
FAIR VALUE MEASUREMENTS
 9 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 7 - FAIR VALUE MEASUREMENTS

 

The carrying values of the Company’s financial instruments that are not required to be measured at fair value on a recurring basis approximate fair value due to their short maturities (e.g., accounts receivable, other assets, accounts payable and other liabilities, and obligations for securities sold) or the nature and terms of the underlying arrangements (e.g., other notes payable and mortgage notes payable).

 

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

  

As of  March 31, 2026   June 30, 2025 
Assets:  Total - Level 1   Total - Level 1 
Investment in marketable securities:          
REITs and real estate companies  $890,000   $966,000 
Financial services   149,000    - 
Technology   57,000    3,000 
Total  $1,096,000   $969,000 

 

Recurring fair value measurements include the following:

 

●Marketable equity securities (Level 1): Quoted prices in active markets for identical assets.
●Interest rate cap (Level 2): Valued using observable inputs including forward Term SOFR curves and implied volatilities from third-party pricing services; incorporates counterparty nonperformance risk where applicable.

 

In March 2025, Portsmouth, a consolidated subsidiary of 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 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 Interest Rate Cap is classified as a Level 2 within the ASC 820 fair value hierarchy (see Note 13).

 

The following table summarizes the fair value of the derivative instrument as of March 31, 2026:

  

Derivative Type  Notional Amount   Balance Sheet Classification  Fair Value   Fair Value Hierarchy 
Interest Rate  $67,000,000   Other Assets  $23,000    Level 2 

 

The Company did not record any material nonrecurring fair value measurements (e.g., long-lived asset impairments) during the nine months ended March 31, 2026 or 2025. See Notes 4 and 5 for additional information regarding long-lived assets.

 

There have been no material changes to the Company’s fair value measurement methodologies or classification of instruments during the periods presented, and there were no transfers between levels 1, 2, and 3 during the nine months ended March 31, 2026 or 2025.