Financial Performance - The company reported a net income increase of $3.1 million for the year ended December 31, 2023, primarily due to a $3.5 million increase in interest income attributed to rising interest rates [63]. - Net cash provided by operating activities increased to $973,000 in 2023 from $4,000 in 2022, primarily due to changes in related party receivables [66]. Interest Income - Interest income from related parties and funds deposited with the Advisor is recognized at a rate of prime plus 1.0% [62]. Cash Management - Cash and cash equivalents as of December 31, 2023, are expected to be sufficient to meet all cash requirements for 2024 [65]. Related Party Transactions - The company engages in related party transactions, which may not always be favorable due to the absence of arm's length negotiations [46]. - The company has no employees; services are provided by employees of Pillar under an Advisory Agreement [48]. Asset Management - The company applies ASC Topic 820 for fair value measurements of real estate assets, prioritizing quoted prices in active markets [54]. - The company assesses the collectability of notes receivable periodically, recognizing impairments when it is probable that principal and interest will not be received [53]. Economic Factors - The company anticipates that inflation will affect revenues from property operations and the cost of new financings [58]. - The company has not identified any material environmental liabilities that would adversely affect its business or operations [60].
me Opportunity Realty Investors(IOR) - 2023 Q4 - Annual Report