Income Opportunity Realty Investors (IOR) 8-K Results of Operations and Financial Condition

INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
	For the Three Months Ended
	March 31,
	2013			2012
	(dollars in thousands, except share and per share amounts)
Revenues:
Rental and other property revenues	$	-		$	-
Expenses:
Property operating expenses (including $13 and $29 for the three months ended 2013 and 2012 respectively from related parties)		14			31
General and administrative (including $99 and $83 for the three months ended 2013 and 2012 respectively from related parties)		188			154
Advisory fee to related party		204			198
Total operating expenses		406			383
Operating loss		(406	)		(383	)
Other income (expense):
Interest income from related parties		1,407			1,183
Mortgage and loan interest		(288	)		(276	)
Earnings from unconsolidated subsidiaries and investees		-			(10	)
Total other income		1,119			897
Income from continuing operations before tax		713			514
Income tax expense		(6	)		(2	)
Net income from continuing operations		707			512
Discontinued operations:
Loss from discontinued operations		(18	)		(7	)
Loss on the sale of real estate from discontinued operations		-			-
Income tax benefit from discontinued operations		6			2
Net loss from discontinued operations		(12	)		(5	)
Net income		695			507
Earnings per share - basic
Income from continuing operations	$	0.17		$	0.12
Loss from discontinued operations		-			-
Net income applicable to common shares	$	0.17		$	0.12
Earnings per share - diluted
Income from continuing operations	$	0.17		$	0.12
Loss from discontinued operations		-			-
Net income applicable to common shares	$	0.17		$	0.12
Weighted average common share used in computing earnings per share		4,168,214			4,168,214
Weighted average common share used in computing diluted earnings per share		4,168,214			4,168,214

INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
	March 31,			December 31,
	2013			2012
	(dollars in thousands, except share and par value amounts)
Assets
Real estate land holdings, at cost	$	24,511		$	24,511
Total real estate		24,511			24,511
Notes and interest receivable from related parties		26,739			27,002
Less allowance for doubtful accounts		(1,826	)		(1,826	)
Total notes and interest receivable		24,913			25,176
Cash and cash equivalents		2			2
Investments in unconsolidated subsidiaries and investees, subject to sales contract		-			-
Receivable and accrued interest from related parties		59,405			58,534
Other assets		1,282			1,283
Total assets	$	110,113		$	109,506
Liabilities and Shareholders’ Equity
Liabilities:
Notes and interest payable	$	28,452		$	28,508
Deferred gain (from sales to related parties)		5,127			5,127
Accounts payable and other liabilities		117			149
		33,696			33,784
Commitments and contingencies:
Shareholders’ equity:
Common stock, $.01 par value, authorized 10,000,000 shares; issued 4,173,675     shares in 2013 and 2012		42			42
Treasury stock at cost, 5,461 in 2013 and 2012		(39	)		(39	)
Paid-in capital		61,955			61,955
Retained earnings		14,459			13,764
Total shareholders' equity		76,417			75,722
Total liabilities and shareholders' equity	$	110,113		$	109,506