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<SEC-DOCUMENT>0000950134-05-016346.txt : 20060814
<SEC-HEADER>0000950134-05-016346.hdr.sgml : 20060814

<ACCEPTANCE-DATETIME>20050818171252

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0000950134-05-016346

CONFORMED SUBMISSION TYPE:	8-K/A

PUBLIC DOCUMENT COUNT:		2

CONFORMED PERIOD OF REPORT:	20050726

ITEM INFORMATION:		Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

FILED AS OF DATE:		20050818

DATE AS OF CHANGE:		20050823


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			INCOME OPPORTUNITY REALTY INVESTORS INC /TX/

		CENTRAL INDEX KEY:			0000949961

		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]

		IRS NUMBER:				752615944

		STATE OF INCORPORATION:			NV

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		8-K/A

		SEC ACT:		1934 Act

		SEC FILE NUMBER:	001-14784

		FILM NUMBER:		051036487



	BUSINESS ADDRESS:	

		STREET 1:		1800 VALLEY VIEW LANE

		STREET 2:		SUITE 300

		CITY:			DALLAS

		STATE:			TX

		ZIP:			75234

		BUSINESS PHONE:		4685224200



	MAIL ADDRESS:	

		STREET 1:		1800 VALLEY VIEW LANE

		STREET 2:		SUITE 300

		CITY:			DALLAS

		STATE:			TX

		ZIP:			75234



</SEC-HEADER>

<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<FILENAME>d28214ae8vkza.htm
<DESCRIPTION>AMENDMENT TO FORM 8-K
<TEXT>
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<TITLE>e8vkza</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>








<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K/A</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>CURRENT REPORT</B></DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Date of Report: July&nbsp;26, 2005<BR>
(Date of Earliest Event Reported)</DIV>

<DIV align="center" style="font-size: 22pt; margin-top: 12pt"><B>INCOME OPPORTUNITY REALTY INVESTORS, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in its Charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Nevada</B><BR>
(State or other<BR>
jurisdiction of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>001-14784</B><BR>
(Commission<BR>
File No.)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>75-2615944</B><BR>
(I.R.S. Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>1755 Wittington Place, Suite&nbsp;340<BR>
Dallas, Texas 75234</B><BR>
(Address of principal executive offices)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>214-750-5800</B><BR>
(Registrant&#146;s telephone number, including area code)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the Registrant under any of the following provisions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-family: Wingdings">&#168;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-family: Wingdings">&#168;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-family: Wingdings">&#168;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-family: Wingdings">&#168;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in this Amendment to Form 8-K amends and fully restates the information contained in a Current Report on Form 8-K for event July&nbsp;26, 2005 filed August&nbsp;8, 2005.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;4.02. Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;On July&nbsp;18, 2005, in response to a comment raised by the Staff of the Securities and
Exchange Commission (the &#147;SEC&#148;) concerning Income Opportunity Realty Investors, Inc.&#146;s (&#147;IOT&#148; or
the &#147;Company&#148; or the &#147;Registrant&#148;) disclosure concerning partnerships formed with Metra Capital LLC
(&#147;Metra&#148;), Management identified an accounting error in the financial statements related to the
total Metra transactions. With guidance from the Registrant&#146;s auditors, Management determined that
the error needs to be corrected. The error involved the establishment of a process involving the
deferral of operating income or expense from the Metra properties until the sale of the property,
which set up an additional inter-company account with Metra that could have a receivable or payable
balance. Management of IOT worked through a materiality review with guidance from the Registrant&#146;s
auditors for the periods involved and determined that the operational income or expense deferral
resulting was not material to the historic period 2002 but was material for 2003. The result is
that Management of IOT has concluded that changes should be made in its financial statements for
the year ending December&nbsp;31, 2003, and corrections carried forward for the year ending December&nbsp;31,
2004, and for the quarter ended March&nbsp;31, 2005. The resulting impact on the prior periods&#146;
operations from the necessary corrections will be to decrease net income for the year ended
December&nbsp;31, 2003 by $436,000 from a reported $1,782,000 to $1,346,000, and a decrease on a per
share basis from a reported $1.24 per share to $0.94 per share. The changes for the fiscal year
ended December&nbsp;31, 2004 will result in a decrease in net income by $64,000 from a reported
$5,492,000 to $5,428,000, an overall decrease in net income per share by $0.04 from a reported
$3.95 per share to $3.91 per share. The resulting impact in the financial statements for the
quarter ended March&nbsp;31, 2005 will be an increase in net income by $54,000 from a reported $239,000
to $293,000, or an increase by $0.04 per share from a reported $0.17 per share to $0.21 per share.
Other changes will also be required in such financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the foregoing, on July&nbsp;26, 2005, the Company&#146;s Management and Audit Committee
concluded that the Company&#146;s previously reported 2003 annual financial statements included in the
Company&#146;s 2003 Annual Report on Form 10-K and 2004 Annual Report on Form 10-K, should no longer be
relied upon, and such 2003 annual financial statements will accordingly be amended and restated.
The Company intends to file an amendment on Form 10-K/A for the years ended December&nbsp;31, 2003 and
December&nbsp;31, 2004, and Form 10-Q/A for the quarter ended March&nbsp;31, 2005 in order to restate such
2003 annual financial statements in its prior filings and to carry forward such changes in its
current filings, and expects to make such filings concurrently with or prior to the filing of its
2005 second quarter Form 10-Q due August&nbsp;15, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing has been discussed with IOT&#146;s independent registered public accounting firm.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A &#147;material weakness&#148; is a control deficiency, or combination of control deficiencies,
that results in more than a remote likelihood that a material misstatement of annual or interim
financial statements will not be prevented or detected. Due to the error described above, IOT and
its accountants identified a control deficiency in its internal controls over financial reporting
as of April&nbsp;2002, which continued through March&nbsp;2005, which constituted a &#147;material weakness&#148;
during that period, including at December&nbsp;31, 2004. The &#147;material weakness&#148; was a failure to
detect the accounting error described above. In response to the &#147;material weakness&#148; identified,
Management is continuing to re-evaluate its control procedures with the assistance of an outside
consulting firm that specializes in internal controls and has implemented an additional review
process of all material historical transactions that are
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">included in financial statements for any current period. The controls and procedures
currently in place for IOT are different from the controls in place during April &#151; December&nbsp;2002,
none of the personnel involved in the establishment of the original process involving the Metra
transactions are currently involved with or perform work for IOT, the current independent
registered public accounting firm for IOT is different from the independent auditors for IOT for
2002. Management also believes that the transaction involving the undetected error was uniquely
complex and not likely to be repeated, but Management is working with its outside consultant for
guidance about possible control procedures to ensure that in the future errors will be detected and
material misstatement of annual or interim financial statements will be prevented.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly-caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto
duly-authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">Dated: August 17, 2005.&nbsp;</TD>
    <TD colspan="3" align="left">INCOME OPPORTUNITY REALTY<BR>
INVESTORS, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Robert N. Crouch II
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Robert N. Crouch II, Executive Vice&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">President, Chief Financial Officer and<BR>
Acting Principal Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<SEQUENCE>2
<FILENAME>filename2.htm
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center" style="font-size: 14pt; margin-top: 18pt">METZGER &#038; McDONALD PLLC<BR></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 0pt">(formerly Prager, Metzger &#038; Kroemer PLLC)<BR>
<FONT style="font-variant: SMALL-CAPS">a professional limited liability company</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">attorneys, mediators &#038; counselors</FONT>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%"></TD>
    <TD width="5%"></TD>
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    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Steven C. Metzger<BR></FONT>
<FONT style="font-variant: SMALL-CAPS">Direct Dial 214-740-5030</FONT>
<FONT style="font-variant: SMALL-CAPS">smetzger@pmklaw.com</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-variant: SMALL-CAPS">2626 Cole Avenue, Suite&nbsp;900<BR></FONT>
<FONT style="font-variant: SMALL-CAPS">Dallas, Texas 75204-1083<BR></FONT>
<FONT style="font-variant: SMALL-CAPS">214-969-7600<BR></FONT>
<FONT style="font-variant: SMALL-CAPS">www.pmklaw.com</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><FONT style="font-variant: SMALL-CAPS">Facsimile 214-523-3838<BR></FONT>
<FONT style="font-variant: SMALL-CAPS">214-969-7635</FONT></TD>
</TR>
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</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">August&nbsp;17, 2005
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Via EDGAR</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Securities and Exchange Commission<BR>
450 Fifth Street N.W.<BR>
Judiciary Plaza<BR>
Washington, D.C. 20549
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="8%"></TD>
    <TD width="5%"></TD>
    <TD width="86"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="right">Re:</TD>
    <TD>&nbsp;</TD>
    <TD>Income Opportunity Realty Investors, Inc.<BR>
(Commission File No.&nbsp;001-14784; CIK 0000949961)</TD>
</TR>
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On behalf of Income Opportunity Realty Investors, Inc., we are delivering under
the EDGAR system for filing a Current Report on Form 8-K/A for an event occurring July
26, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By copy of this letter, we are delivering a copy of the enclosures to the
principal exchange on which the securities of Income Opportunity Realty Investors,
Inc. are listed. If you would like to discuss any matter concerning this filing,
please do not hesitate to contact the undersigned at (214)&nbsp;740-5030 direct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Very truly yours,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">/s/ Steven C. Metzger
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Steven C. Metzger
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SCM:ag<BR>
Enclosures
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">cc:</TD>
    <TD>&nbsp;</TD>
    <TD>American Stock Exchange, Inc.<BR>
86 Trinity Place<BR>
New York, New York 10006<BR><BR>
Income Opportunity Realty Investors, Inc.<BR>
1800 Valley View Lane, Suite&nbsp;300<BR>
Dallas, Texas 75234</TD>
</TR>
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">
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