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						For the Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
	(dollars in thousands, except share and per share amounts)
Revenues:
Rental and other property revenues	$	-		$	-		$	-		$	-
Expenses:
Property operating expenses (including $10 and $14 for the three months and $24 and $43 for the six months ended 2013 and 2012 respectively from related parties)		9			14			23			45
General and administrative (including $123 and $117 for the three months and $222 and $200 for the six months ended 2013 and 2012 respectively from related parties)		261			207			449			360
Advisory fee to related party		207			205			412			402
Total operating expenses		477			426			884			807
Operating loss		(477	)		(426	)		(884	)		(807	)
Other income (expense):
Interest income from related parties		1,417			1,713			2,824			2,896
Mortgage and loan interest		(294	)		(277	)		(581	)		(552	)
Earnings from unconsolidated subsidiaries and investees		-			(12	)		-			(23	)
Total other income		1,123			1,424			2,243			2,321
Income from continuing operations before tax		646			998			1,359			1,514
Income tax expense		-			-			(6	)		(3	)
Net income from continuing operations		646			998			1,353			1,511
Discontinued operations:
Loss from discontinued operations		-			-			(18	)		(9	)
Loss on the sale of real estate from discontinued operations		-			-			-			-
Income tax benefit from discontinued operations		-			-			6			3
Net loss from discontinued operations		-			-			(12	)		(6	)
Net income		646			998			1,341			1,505
Earnings per share - basic
Income from continuing operations	$	0.15		$	0.24		$	0.32		$	0.36
Loss from discontinued operations		-			-			-			-
Net income applicable to common shares	$	0.15		$	0.24		$	0.32		$	0.36
Earnings per share - diluted
Income from continuing operations	$	0.15		$	0.24		$	0.32		$	0.36
Loss from discontinued operations		-			-			-			-
Net income applicable to common shares	$	0.15		$	0.24		$	0.32		$	0.36
Weighted average common share used in computing earnings per share		4,168,214			4,168,214			4,168,214			4,168,214
Weighted average common share used in computing diluted earnings per share		4,168,214			4,168,214			4,168,214			4,168,214

INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
	June 30,			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		27,560			27,002
Less allowance for doubtful accounts		(1,826	)		(1,826	)
Total notes and interest receivable		25,734			25,176
Cash and cash equivalents		13			2
Receivable and accrued interest from related parties		58,823			58,534
Other assets		1,855			1,283
Total assets	$	110,936		$	109,506
Liabilities and Shareholders’ Equity
Liabilities:
Notes and interest payable	$	28,399		$	28,508
Deferred gain (from sales to related parties)		5,127			5,127
Accounts payable and other liabilities		347			149
		33,873			33,784
Commitments and contingencies:
Shareholders’ equity:
Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 shares in 2013 and 2012		42			42
Treasury stock at cost, 5,461 shares in 2013 and 2012		(39	)		(39	)
Paid-in capital		61,955			61,955
Retained earnings		15,105			13,764
Total shareholders' equity		77,063			75,722
Total liabilities and shareholders' equity	$	110,936		$	109,506