me Opportunity Realty Investors(IOR) - 2023 Q2 - Quarterly Report

Financial Performance - Net income for the three months ended June 30, 2023, was $1.83 million, a 116% increase from $0.85 million in the same period of 2022[12]. - Earnings per share for the second quarter of 2023 was $0.44, up from $0.20 in the second quarter of 2022, representing a 120% increase[12]. - Interest income from related parties for the six months ended June 30, 2023, was $4.64 million, compared to $2.69 million for the same period in 2022, marking a 72.8% increase[12]. - General and administrative expenses for the six months ended June 30, 2023, totaled $0.29 million, up from $0.26 million in 2022, indicating a 13.1% increase[12]. - Interest income from related parties for the three months ended June 30, 2023, increased by $1,345 compared to the same period in 2022, primarily due to rising interest rates[49]. - For the six months ended June 30, 2023, interest income from related parties rose by $1,959 compared to the same period in 2022, also attributed to increased interest rates[50]. Assets and Liabilities - Total assets increased to $114.87 million as of June 30, 2023, compared to $111.99 million at the end of 2022, reflecting a growth of approximately 2.5%[9]. - Total liabilities remained stable at $1.00 million as of June 30, 2023, compared to $1.00 million at the end of 2022[9]. - Retained earnings increased to $52.91 million as of June 30, 2023, from $50.03 million at the end of 2022, reflecting a growth of 5.8%[9]. - Cash and cash equivalents decreased to $2,000 as of June 30, 2023, from $6,000 at the beginning of the period[17]. - The company reported a net cash used in operating activities of $4,000 for the six months ended June 30, 2023, compared to a net cash used of $1,000 in the same period of 2022[18]. - As of June 30, 2023, related party receivables amounted to $103,030, an increase from $100,134 as of December 31, 2022[33]. Shareholder Information - The company has 4,168,414 shares of common stock outstanding as of August 10, 2023[4]. - The company has a share repurchase program allowing for the repurchase of up to 1,637,000 shares, with 1,230,535 shares already purchased as of June 30, 2023[57]. Advisory and Management - The company operates under an Advisory Agreement with Pillar, which manages investment opportunities and is considered a related party[41]. - The company has no employees; services are rendered by employees of Pillar under the Advisory Agreement[41]. - Advisory fees paid to Pillar, a related party, were $380 for the three months ended June 30, 2023, compared to $273 for the same period in 2022[31]. - The company has an advisory agreement with Pillar Income Asset Management, LLC, dated April 30, 2011[60]. Future Outlook - The company anticipates that cash and cash equivalents as of June 30, 2023, along with future cash generated from notes and interest receivables, will be sufficient to meet current cash requirements[52]. - The company expects to generate excess cash from property operations in the next twelve months, although it may not be sufficient to cover all obligations[34]. Compliance and Legal - The report includes certifications pursuant to the Sarbanes-Oxley Act of 2002, ensuring compliance and accuracy in financial reporting[60]. - The financial officer, Erik L. Johnson, has signed the report, confirming its authenticity and accuracy[66]. - The company has made amendments to its stipulation of settlement, indicating ongoing legal or regulatory adjustments[60]. - Income Opportunity Realty Investors, Inc. has filed various documents including by-laws and certificates of designations related to its preferred stock[60].