Stock Information - The company's common stock is traded on the NYSE American Exchange under the symbol "IOR," with a closing market price of $17.35 per share on March 19, 2025[39]. - The company did not declare any dividends on common stock for the years 2024, 2023, or 2022, with future distributions to be determined by the Board of Directors based on various conditions[40]. - TCI completed a Tender Offer on January 29, 2025, acquiring 21,678 shares, increasing its ownership to 83.7%[41]. - The company has a stock repurchase program allowing for the repurchase of up to 1,650,000 shares, with 44,536 shares repurchased at $18 per share during 2024[42]. Financial Performance - The net income for the year ended December 31, 2024, decreased by $2.4 million compared to 2023, primarily due to a $3.8 million decrease in interest income attributed to lower interest rates[61]. - Cash provided by operating activities for 2024 was $713,000, a decrease of $260,000 from $973,000 in 2023[63]. - The decrease in income tax provision for 2024 was $0.4 million, primarily due to the decrease in interest income[61]. - Net income for 2024 was $4,651,000, a decrease of 33.5% compared to $7,001,000 in 2023[96]. - Earnings per share decreased to $1.14 in 2024 from $1.68 in 2023, reflecting a decline of 32.1%[96]. - Total operating expenses decreased to $412,000 in 2024 from $1,460,000 in 2023, a reduction of 71.8%[96]. - Cash and cash equivalents decreased to $9,000 at the end of 2024 from $71,000 at the end of 2023, a decline of 87.3%[101]. - Retained earnings increased to $61,679,000 in 2024 from $57,028,000 in 2023, an increase of 8.5%[93]. - Interest income from related parties was $6,299,000 in 2024, down from $10,070,000 in 2023, a decrease of 37.5%[96]. - The company had a net operating loss of $412,000 in 2024, an improvement from a loss of $1,460,000 in 2023[96]. Cash Flow and Investments - The company’s principal sources of cash include collections of mortgage notes receivables and interest from related companies[62]. - The company reported a net cash provided by investing activities of $27,000 in 2024, compared to no cash provided in 2023[63]. - Net cash provided by operating activities was $713,000 in 2024, compared to $973,000 in 2023, a decrease of 26.7%[101]. Related Party Transactions - The principal source of income for the company is interest income on note receivables from related parties[44]. - The company engages in related party transactions that may not always be favorable, potentially impacting cash flow and asset value[30]. - The collection of receivables is dependent on the cash flow of related parties, which can be affected by economic conditions in the southwestern United States[26]. - Significant transactions with related parties are noted, with an emphasis on the assessment of collectability of receivables[73]. - The company recognized interest income of $5.7 million from related party notes receivable during the year ended December 31, 2024[211]. - The company had notes and interest receivables of $11.1 million and $0.3 million, respectively, due from related parties as of December 31, 2024[210]. Management and Governance - The company has no real estate ownership and is managed by Pillar under an Advisory Agreement[34][46]. - Pillar has been the company's Advisor and Cash Manager since April 30, 2011, with an amended Advisory Agreement effective May 7, 2024[179]. - The Advisory Agreement includes a gross asset fee of 0.0625% per month and a net income fee of 7.5% of adjusted net income[184]. - The company relies on Pillar for employee-related services and reimburses for a pro-rata portion of expenses related to service employees[186]. - The Cash Management Agreement with Pillar ensures all funds are managed and invested, with interest earned at the Secured Overnight Financing Rate (SOFR)[187]. - Total directors' fees paid in 2024 amounted to $17,930, with individual payments including $5,000 each to Robert A. Jakuszewski and Fernando V. Lara Celis, and $5,500 to Ted R. Munselle[195]. - The Audit Committee met five times during 2024, ensuring oversight of operating and accounting procedures[165]. - The Governance and Nominating Committee met two times during 2024 to review corporate governance policies[166]. - The Compensation Committee, which met two times in 2024, oversees executive compensation policies[167]. Audit and Compliance - The company’s financial statements for 2024 and 2023 were audited and present fairly in all material respects[68]. - Audit fees for the year ended December 31, 2024, were $55,200, an increase from $47,750 in 2023[214]. - The company has established policies for the approval of audit and non-audit services, ensuring compliance with applicable laws and regulations[218]. Taxation - The company is part of a tax sharing agreement, with its tax expense calculated based on losses absorbed by taxable income multiplied by the maximum statutory tax rate of 21%[208]. - The provision for federal income taxes was $1,236, $1,609, and $1,045 for the years ended December 31, 2024, 2023, and 2022, respectively[136].
me Opportunity Realty Investors(IOR) - 2024 Q4 - Annual Report