me Opportunity Realty Investors(IOR) - 2025 Q2 - Quarterly Report

Financial Performance - The decrease in net income for the three months ended June 30, 2025, is primarily due to a decrease in interest income from related party receivables[55] - The decrease in net income for the six months ended June 30, 2025, is also primarily due to a decrease in interest income from related party receivables[56] Cash Management - The principal sources of cash are expected to be the collection of mortgage notes receivables and collections of receivables and interests from related companies[57] - Cash and cash equivalents as of June 30, 2025, along with anticipated cash generated in the next twelve months, are expected to be sufficient to meet all current cash requirements[57] Related Party Transactions - The company engages in business transactions with related parties, which may not always be favorable and could include terms not beneficial to the company[43] - The company’s operations are managed by Pillar, which is considered a related party due to common ownership with the controlling shareholder[44] - The company’s operating expenses primarily consist of general and administrative costs, including fees paid to related parties[52] Human Resources - The company has no employees; services are rendered by employees of Pillar under an Advisory Agreement[44] Risk Factors - The company is exposed to risks associated with financing availability, economic downturns, and dependence on key personnel[45] Fair Value Measurement - The company applies ASC Topic 820 for fair value measurements of financial instruments, prioritizing inputs based on their observability[48]