Center’s location near Houston’s Energy Corridor, anchored by 8 Fortune 500 companies, provides a consistent stream of repeat traffic  Property features a strong restaurant and retail lineup, including Seiwa Market, the largest Japanese grocery in the city HOUSTON, Nov. 03, 2025 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE: WSR), a neighborhood-focused owner and operator of open-air shopping centers in Texas and Arizona, today announced the acquisition of the 81,407 square-foot, grocery-anchored Ashford Villag ...

Key Takeaways Ashford signed an agreement to sell the 150-room Residence Inn San Diego Sorrento Mesa for $42M.The deal implies a 5.7% cap rate with expected $16M capital spend, or 7.9% cap rate without the spend.CEO says the sale supports deleveraging efforts and enhances financial flexibility for AHT.Ashford Hospitality Trust (AHT) recently signed a definitive agreement to sell the 150-room Residence Inn San Diego Sorrento Mesa in San Diego, CA, for $42 million. Subject to closing conditions, the sale is e ...

Core Insights - Ashford Hospitality Trust, Inc. (AHT) has agreed to sell the Hilton Houston NASA Clear Lake for $27 million as part of its strategic plan to deleverage and optimize its portfolio [1][2] - The sale is expected to yield a capitalization rate of 3.2% on net operating income (NOI) or 23.6X Hotel EBITDA after capital expenditure adjustments [2] - The transaction will help deleverage the Morgan Stanley 17 Pool loan and result in significant capital expenditure savings [3] Company Overview - AHT is focused on addressing its strategic financing challenges and creating shareholder value through repositioning efforts [4] - The company's assets are well-positioned to benefit from favorable market conditions while pursuing financial and operational objectives [5] - AHT is expected to grow in the near term by executing its GRO AHT initiative aimed at driving outsized EBITDA growth [5] Market Performance - Over the past three months, AHT shares have declined by 21.8%, which is greater than the industry average decline of 5.4% [6] - The hotel industry is experiencing softening fundamentals amid macroeconomic uncertainty and elevated interest rates, which poses concerns for AHT [5] Comparative Analysis - Other REITs such as VICI Properties and W.P. Carey are currently better-ranked, with VICI's 2025 FFO per share estimate raised to $2.34 and W.P. Carey's current-year FFO per share estimate increased by 1% to $4.88 [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36400 ASHFORD INC. (Exact name of registrant as specified in its charter) | Nevada | 84-2331507 | | --- | --- | | (State or other jurisdiction of ...

Core Viewpoint - Ashford Hospitality Trust, Inc. (AHT) is actively addressing its strategic financing challenges and focusing on shareholder value creation through its GRO AHT initiative, which has led to significant revenue growth and a recent asset sale [2][3]. Group 1: Recent Developments - AHT has successfully sold the 315-room Courtyard Boston Downtown for $123 million, equating to $390,500 per key, which will help deleverage its BAML Highland Pool loan and reduce future capital expenditures [1]. - The company has experienced a 45.8% increase in share price over the past three months, significantly outperforming the industry, which has seen a decline of 13.5% [3]. Group 2: Strategic Initiatives - The GRO AHT initiative is expected to drive outsized EBITDA growth and enhance shareholder value as the company capitalizes on favorable market conditions [3]. - AHT's president and CEO, Stephen Zsigray, expressed optimism regarding the improved sentiment in transaction and financing markets, indicating progress in their strategic initiatives [2].

Ashford Hospitality Trust, Inc. (AHT) recently reported its preliminary results for the fourth quarter of 2024.For the fourth quarter of 2024, this Dallas, TX-based real estate investment trust (REIT) anticipates reporting an occupancy of around 66%, with average daily rate of nearly $190, resulting in revenue per available room (RevPAR) of approximately $126. This comparable RevPAR shows an estimated year-over-year growth of 3%.Moreover, comparable RevPAR increased approximately 4.5%, 0.4% and 3.8% for Oct ...

[FORM 10-Q General Information](index=1&type=section&id=FORM%2010-Q%20General%20Information) This section provides general information about **Ashford Inc.**'s **Quarterly Report (Form 10-Q)**, its corporate status, and common stock details - The document is a **Quarterly Report (Form 10-Q)** for the period ended September 30, **2024**[1](index=1&type=chunk) - **Ashford Inc.** is a Nevada corporation, classified as a **non-accelerated filer** and not an emerging growth company or a shell company[1](index=1&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) Common Stock Outstanding | Metric | Value | |:---|:---| | Common Stock, $0.001 par value outstanding | **1,738,597 shares** | | As of | November 11, **2024** | [Table of Contents](index=2&type=section&id=TABLE%20OF%20CONTENTS) This section outlines the structure and content of the quarterly report [Part I. Financial Information](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and related disclosures [Item 1. Financial Statements (Unaudited)](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(unaudited)) This section presents **Ashford Inc.**'s unaudited condensed consolidated financial statements and notes for Q3 **2024** and FY **2023** [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, showing changes in assets, liabilities, and equity - Total assets decreased by **4.15%** from **$504.81 million** at December 31, **2023**, to **$483.85 million** at September 30, **2024**[8](index=8&type=chunk) - Total liabilities increased by **2.85%** from **$329.40 million** to **$338.80 million** over the same period[8](index=8&type=chunk) Balance Sheet Summary | Metric | Sep 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | Change (in thousands) | % Change | |:-----------------------------------|:----------------------------|:----------------------------|:----------------------|:---------| | **ASSETS** | | | | | | Total current assets | **128,302** | **140,930** | (**12,628**) | (**8.96%**) | | Investments | **14,397** | **9,265** | **5,132** | **55.39%** | | Property and equipment, net | **62,100** | **56,852** | **5,248** | **9.23%** | | Intangible assets, net | **193,780** | **210,095** | (**16,315**) | (**7.77%**) | | Total assets | **483,847** | **504,807** | (**20,960**) | (**4.15%**) | | **LIABILITIES** | | | | | | Accounts payable and accrued expenses | **44,302** | **54,837** | (**10,535**) | (**19.21%**) | | Dividends payable | **47,794** | **28,508** | **19,286** | **67.65%** | | Total current liabilities | **140,927** | **135,404** | **5,523** | **4.08%** | | Total liabilities | **338,797** | **329,402** | **9,395** | **2.85%** | | **EQUITY (DEFICIT)** | | | | | | Total equity (deficit) of the Company | (**348,934**) | (**311,572**) | (**37,362**) | (**11.99%**) | | Total liabilities, mezzanine equity and equity (deficit) | **483,847** | **504,807** | (**20,960**) | (**4.15%**) | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's operating performance, detailing revenues, expenses, and net income (loss) for the reporting periods - For the three months ended September 30, **2024**, net loss attributable to common stockholders increased by **9.03%** to **$(13.13) million**, from **$(12.05) million** in the prior year[11](index=11&type=chunk)[222](index=222&type=chunk) - For the nine months ended September 30, **2024**, net loss attributable to common stockholders increased by **14.37%** to **$(31.15) million**, from **$(27.23) million** in the prior year[11](index=11&type=chunk)[243](index=243&type=chunk) Statements of Operations Summary (Three Months) | Metric | Three Months Ended Sep 30, 2024 (in thousands) | Three Months Ended Sep 30, 2023 (in thousands) | Change (in thousands) | % Change | |:----------------------------------------------------|:-----------------------------------------------|:-----------------------------------------------|:----------------------|:---------| | Total revenues | **191,112** | **181,215** | **9,897** | **5.46%** | | Total expenses | **190,540** | **180,611** | **9,929** | **5.49%** | | Operating income (loss) | **572** | **604** | (**32**) | (**5.30%**) | | Net income (loss) attributable to the Company | (**3,751**) | (**2,991**) | (**760**) | (**25.41%**) | | Preferred dividends, declared and undeclared | (**9,382**) | (**9,054**) | (**328**) | (**3.62%**) | | Net income (loss) attributable to common stockholders | (**13,133**) | (**12,045**) | (**1,088**) | (**9.03%**) | | Basic **EPS** | (**5.71**) | (**3.87**) | (**1.84**) | (**47.54%**) | | Diluted **EPS** | (**5.71**) | (**3.87**) | (**1.84**) | (**47.54%**) | Statements of Operations Summary (Nine Months) | Metric | Nine Months Ended Sep 30, 2024 (in thousands) | Nine Months Ended Sep 30, 2023 (in thousands) | Change (in thousands) | % Change | |:----------------------------------------------------|:----------------------------------------------|:----------------------------------------------|:----------------------|:---------| | Total revenues | **611,646** | **559,047** | **52,599** | **9.41%** | | Total expenses | **599,147** | **547,278** | **51,869** | **9.48%** | | Operating income (loss) | **12,499** | **11,769** | **730** | **6.20%** | | Net income (loss) attributable to the Company | (**3,330**) | (**100**) | (**3,230**) | (**3230.00%**) | | Preferred dividends, declared and undeclared | (**27,815**) | (**27,132**) | (**683**) | (**2.52%**) | | Net income (loss) attributable to common stockholders | (**31,145**) | (**27,232**) | (**3,913**) | (**14.37%**) | | Basic **EPS** | (**10.84**) | (**8.88**) | (**1.96**) | (**22.07%**) | | Diluted **EPS** | (**10.84**) | (**9.18**) | (**1.66**) | (**18.08%**) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section outlines the company's comprehensive income (loss), including net income and other comprehensive income items - For the three months ended September 30, **2024**, comprehensive loss attributable to the company increased by **31.06%** to **$(3.88) million**, from **$(2.96) million** in the prior year[14](index=14&type=chunk) - For the nine months ended September 30, **2024**, comprehensive loss attributable to the company significantly increased by **1517.31%** to **$(3.36) million**, from **$(0.21) million** in the prior year[14](index=14&type=chunk) Comprehensive Income (Loss) Summary (Three Months) | Metric | Three Months Ended Sep 30, 2024 (in thousands) | Three Months Ended Sep 30, 2023 (in thousands) | Change (in thousands) | % Change | |:-------------------------------------------------|:-----------------------------------------------|:-----------------------------------------------|:----------------------|:---------| | Net income (loss) | (**3,768**) | (**3,070**) | (**698**) | (**22.74%**) | | Foreign currency translation adjustment | (**131**) | **29** | (**160**) | (**551.72%**) | | Comprehensive income (loss) attributable to the Company | (**3,882**) | (**2,962**) | (**920**) | (**31.06%**) | Comprehensive Income (Loss) Summary (Nine Months) | Metric | Nine Months Ended Sep 30, 2024 (in thousands) | Nine Months Ended Sep 30, 2023 (in thousands) | Change (in thousands) | % Change | |:-------------------------------------------------|:----------------------------------------------|:----------------------------------------------|:----------------------|:---------| | Net income (loss) | (**3,665**) | (**393**) | (**3,272**) | (**832.57%**) | | Foreign currency translation adjustment | (**34**) | (**108**) | **74** | **68.52%** | | Comprehensive income (loss) attributable to the Company | (**3,364**) | (**208**) | (**3,156**) | (**1517.31%**) | [Condensed Consolidated Statements of Equity (Deficit)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20(Deficit)) This section details changes in the company's equity (deficit), including common shares, accumulated deficit, and noncontrolling interests - Total equity (deficit) decreased by **10.02%** from **$(304.57) million** at December 31, **2023**, to **$(335.08) million** at September 30, **2024**[8](index=8&type=chunk) - Common shares outstanding decreased by **34.31%** due to repurchases and retirement of common stock[16](index=16&type=chunk)[17](index=17&type=chunk) Equity (Deficit) Summary | Metric | Dec 31, 2023 (in thousands) | Sep 30, 2024 (in thousands) | Change (in thousands) | % Change | |:----------------------------------------------------|:----------------------------|:----------------------------|:----------------------|:---------| | Common Shares | **3,212** | **2,110** | (**1,102**) | (**34.31%**) | | Stock Amount | **3** | **2** | (**1**) | (**33.33%**) | | Additional Paid-in Capital | **299,304** | **291,817** | (**7,487**) | (**2.50%**) | | Accumulated Deficit | (**609,312**) | (**640,506**) | (**31,194**) | (**5.12%**) | | Accumulated Other Comprehensive Income (Loss) | (**213**) | (**247**) | (**34**) | (**15.96%**) | | Treasury Stock Amount | (**1,354**) | **0** | **1,354** | **100.00%** | | Noncontrolling Interests in Consolidated Entities | **7,005** | **13,856** | **6,851** | **97.80%** | | Total equity (deficit) | (**304,567**) | (**335,078**) | (**30,511**) | (**10.02%**) | - Preferred dividends declared and undeclared reduced accumulated deficit by **$27.82 million** for the nine months ended September 30, **2024**[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash flow activities from operations, investing, and financing for the reporting periods - Net cash provided by operating activities significantly increased by **229.45%** to **$32.54 million** for the nine months ended September 30, **2024**, compared to **$9.88 million** in the prior year, primarily due to timing of working capital cash flows[21](index=21&type=chunk)[275](index=275&type=chunk) - Net cash used in investing activities decreased by **22.35%** to **$20.04 million**, mainly for capital expenditures (**$16.22 million**) and investments (**$4.56 million**)[21](index=21&type=chunk)[276](index=276&type=chunk) - Net cash used in financing activities increased by **497.58%** to **$7.91 million**, driven by payments on revolving credit facilities (**$31.48 million**) and preferred stock dividends (**$8.70 million**), partially offset by new borrowings (**$34.01 million**) and noncontrolling interest contributions (**$6.77 million**)[23](index=23&type=chunk)[278](index=278&type=chunk) Cash Flow Summary | Cash Flow Activity | Nine Months Ended Sep 30, 2024 (in thousands) | Nine Months Ended Sep 30, 2023 (in thousands) | Change (in thousands) | % Change | |:----------------------------------------------------|:----------------------------------------------|:----------------------------------------------|:----------------------|:---------| | Net cash provided by (used in) operating activities | **32,543** | **9,878** | **22,665** | **229.45%** | | Net cash provided by (used in) investing activities | (**20,038**) | (**25,805**) | **5,767** | **22.35%** | | Net cash provided by (used in) financing activities | (**7,906**) | (**1,323**) | (**6,583**) | (**497.58%**) | | Net change in cash, cash equivalents and restricted cash | **4,599** | (**17,215**) | **21,814** | **126.72%** | | Cash, cash equivalents and restricted cash at end of period | **79,869** | **64,233** | **15,636** | **24.34%** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on accounting policies, revenue recognition, segment information, and other critical financial data [1. Organization and Description of Business](index=10&type=section&id=1.%20Organization%20and%20Description%20of%20Business) This note describes **Ashford Inc.**'s business as an alternative asset manager and its recent delisting from **NYSE American** - **Ashford Inc.** is an alternative asset management company providing products and services primarily to clients in the real estate and hospitality industries, including **Ashford Hospitality Trust, Inc.** ('**Ashford Trust**'), **Braemar Hotels & Resorts Inc.** ('**Braemar**'), **Stirling Hotels & Resorts, Inc.** ('**Stirling**'), and **Texas Strategic Growth Fund, L.P.** ('**TSGF L.P.**')[25](index=25&type=chunk)[27](index=27&type=chunk) - The company delisted its common stock from **NYSE American** on July 29, **2024**, and terminated its public company reporting obligations, effective November 6, **2024**, with an expected annual savings of approximately **$2.5 million**[25](index=25&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[209](index=209&type=chunk) - **Ashford Inc.** provides a diverse range of services including advisory, asset management, hotel management, design and construction, event technology, mobile room keys, watersports, hypoallergenic room products, insurance, debt placement, and real estate advisory[26](index=26&type=chunk) [2. Significant Accounting Policies](index=11&type=section&id=2.%20Significant%20Accounting%20Policies) This note details the company's accounting principles, including consolidation, fair value measurements, and restricted cash - The condensed consolidated financial statements are prepared in accordance with **GAAP** for interim financial information and include accounts of **Ashford Inc.**, its majority-owned subsidiaries, and controlled Variable Interest Entities (**VIEs**)[34](index=34&type=chunk)[36](index=36&type=chunk) Noncontrolling Interests | Noncontrolling Interests (in thousands) | Sep 30, 2024 | Dec 31, 2023 | |:----------------------------------------|:-------------|:-------------| | Carrying value of redeemable noncontrolling interests | **$2,128** | **$1,972** | | Carrying value of noncontrolling interests | **$13,856** | **$7,005** | - **TSGF L.P.**'s investments are reported at fair value, with unrealized gains and losses reflected in 'other income (expense)'. The fair value of **TSGF L.P.**'s investments increased from **$5.0 million** at December 31, **2023**, to **$10.0 million** at September 30, **2024**[41](index=41&type=chunk) Restricted Cash Breakdown | Restricted Cash (in thousands) | Sep 30, 2024 | Dec 31, 2023 | |:---------------------------------------|:-------------|:-------------| | Advisory (Insurance claim reserves) | **$1,731** | **$18,947** | | **Warwick** (Insurance claim reserves) | **$11,489** | **$0** | | **Remington** (Managed hotel properties' reserves) | **$1,001** | **$2,508** | | **Remington** (Insurance claim reserves) | **$2,012** | **$1,761** | | **Total restricted cash** | **$16,233** | **$23,216** | - The allowance for doubtful accounts increased from **$2.1 million** at December 31, **2023**, to **$3.7 million** at September 30, **2024**, primarily due to a **$909,000** increase in **Premier**'s allowance related to a third-party client[46](index=46&type=chunk) - Claims liabilities and other included reserves of **$28.0 million** for **Warwick**'s liabilities and **$3.3 million** for **Remington** health insurance claims as of September 30, **2024**[49](index=49&type=chunk)[50](index=50&type=chunk) - The company adopted ASU **2020-06** (Convertible Instruments) effective January 1, **2024**, with no material impact. New ASUs **2023-07** (Segment Reporting) and **2023-09** (Income Tax Disclosures) are effective for fiscal years beginning after December 15, **2023**, and December 15, **2024**, respectively, and are expected to impact disclosures only[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) [3. Revenues](index=18&type=section&id=3.%20Revenues) This note provides a detailed breakdown of the company's revenue streams by type and segment, and related recognition policies - Revenue is recognized when control of promised goods or services is transferred to customers, reflecting the expected consideration[61](index=61&type=chunk) - Incentive advisory fees are deferred until probable of not being subject to significant reversal and are recognized annually in the fourth quarter[66](index=66&type=chunk) - Design and construction fees revenue in the first quarter of **2024** increased by **$3.6 million** due to cumulative catch-up adjustments from contract modifications with **Ashford Trust** and **Braemar**[69](index=69&type=chunk) Revenue by Type (Three Months) | Revenue Type (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Change (in thousands) | % Change | |:------------------------------------|:--------------------------------|:--------------------------------|:----------------------|:---------| | Advisory services fees | **12,010** | **11,712** | **298** | **2.54%** | | Hotel management fees | **12,350** | **12,391** | (**41**) | (**0.33%**) | | Design and construction fees | **6,191** | **7,430** | (**1,239**) | (**16.68%**) | | Audio visual | **34,360** | **30,641** | **3,719** | **12.14%** | | Other revenue | **15,491** | **11,175** | **4,316** | **38.62%** | | Cost reimbursement revenue | **110,710** | **107,866** | **2,844** | **2.64%** | | **Total revenues** | **191,112** | **181,215** | **9,897** | **5.46%** | Revenue by Type (Nine Months) | Revenue Type (in thousands) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | Change (in thousands) | % Change | |:------------------------------------|:-------------------------------|:-------------------------------|:----------------------|:---------| | Advisory services fees | **35,467** | **36,129** | (**662**) | (**1.83%**) | | Hotel management fees | **39,194** | **39,456** | (**262**) | (**0.66%**) | | Design and construction fees | **21,003** | **21,964** | (**961**) | (**4.38%**) | | Audio visual | **126,855** | **112,347** | **14,508** | **12.91%** | | Other revenue | **50,776** | **32,057** | **18,719** | **58.39%** | | Cost reimbursement revenue | **338,351** | **317,094** | **21,257** | **6.70%** | | **Total revenues** | **611,646** | **559,047** | **52,599** | **9.41%** | Revenue by Segment | Revenue by Segment (in thousands) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | Change (in thousands) | % Change | |:----------------------------------|:-------------------------------|:-------------------------------|:----------------------|:---------| | Advisory | **57,625** | **60,316** | (**2,691**) | (**4.46%**) | | **Remington** | **340,355** | **314,454** | **25,901** | **8.24%** | | **Premier** | **31,147** | **30,780** | **367** | **1.19%** | | **INSPIRE** | **127,029** | **112,506** | **14,523** | **12.91%** | | **RED** | **32,882** | **25,866** | **7,016** | **27.13%** | | **OpenKey** | **1,050** | **1,184** | (**134**) | (**11.32%**) | | Corporate and other | **21,558** | **13,941** | **7,617** | **54.64%** | | **Total revenues** | **611,646** | **559,047** | **52,599** | **9.41%** | [4. Goodwill and Intangible Assets, net](index=24&type=section&id=4.%20Goodwill%20and%20Intangible%20Assets,%20net) This note details the company's goodwill and definite-lived intangible assets, including changes due to amortization - Goodwill remained stable at **$61.01 million** as of September 30, **2024**, and December 31, **2023**[87](index=87&type=chunk) Goodwill Breakdown | Goodwill (in thousands) | Sep 30, 2024 | Dec 31, 2023 | |:------------------------|:-------------|:-------------| | **Remington** | **$56,658** | **$56,658** | | **RED** | **$3,573** | **$3,573** | | Corporate and Other | **$782** | **$782** | | **Total Goodwill** | **$61,013** | **$61,013** | - Net carrying amount of definite-lived intangible assets decreased by **8.03%** to **$186.79 million** at September 30, **2024**, from **$203.11 million** at December 31, **2023**, primarily due to amortization[88](index=88&type=chunk) Definite-lived Intangible Assets | Definite-lived Intangible Assets (in thousands) | Sep 30, 2024 Net Carrying Amount | Dec 31, 2023 Net Carrying Amount | Change (in thousands) | % Change | |:----------------------------------------|:---------------------------------|:---------------------------------|:----------------------|:---------| | **Remington** management contracts | **$55,516** | **$62,840** | (**7,324**) | (**11.65%**) | | **Premier** management contracts | **$121,128** | **$129,192** | (**8,064**) | (**6.24%**) | | **INSPIRE** customer relationships | **$1,835** | **$2,674** | (**839**) | (**31.38%**) | | **RED** boat slip rights | **$8,311** | **$8,399** | (**88**) | (**1.05%**) | | **Total Definite-lived Intangible Assets** | **$186,790** | **$203,105** | (**16,315**) | (**8.03%**) | - Amortization expense for definite-lived intangible assets was **$16.6 million** for the nine months ended September 30, **2024**, compared to **$18.2 million** for the same period in **2023**[88](index=88&type=chunk) [5. Notes Payable, net](index=26&type=section&id=5.%20Notes%20Payable,%20net) This note outlines the company's debt structure, including its **Credit Facility**, other notes, and covenant compliance - Notes payable, net, increased by **2.01%** to **$139.72 million** at September 30, **2024**, from **$136.97 million** at December 31, **2023**[90](index=90&type=chunk) Notes Payable Summary | Metric (in thousands) | Sep 30, 2024 | Dec 31, 2023 | Change (in thousands) | % Change | |:------------------------------------|:-------------|:-------------|:----------------------|:---------| | Total notes payable | **143,023** | **141,068** | **1,955** | **1.39%** | | Deferred loan costs, net | (**2,216**) | (**2,723**) | **507** | **18.62%** | | Original issue discount, net | (**1,090**) | (**1,379**) | **289** | **20.96%** | | **Notes payable, net** | **139,717** | **136,966** | **2,751** | **2.01%** | | Less current portion | (**4,575**) | (**4,387**) | (**188**) | (**4.29%**) | | **Total notes payable, net - non-current** | **135,142** | **132,579** | **2,563** | **1.93%** | - **Ashford Inc.**'s **Credit Facility** is a **$100 million** senior secured term loan, maturing April 1, **2027**, with interest at Base Rate + **6.35%** or Adjusted Term **SOFR** + **7.35%**[90](index=90&type=chunk)[91](index=91&type=chunk) - **INSPIRE**'s credit agreement was amended to increase its revolving credit facility to **$6.0 million** and equipment note to **$7.0 million**, maturing March 24, **2028**, with interest at Daily Adjusted Term **SOFR** + **2.75%**[91](index=91&type=chunk) - The company was in compliance with all covenants related to its **Credit Facility** and subsidiary debt as of September 30, **2024**[93](index=93&type=chunk) [6. Accounts Payable and Accrued Expenses](index=28&type=section&id=6.%20Accounts%20Payable%20and%20Accrued%20Expenses) This note details the composition and changes in the company's accounts payable and accrued expenses - Accounts payable and accrued expenses decreased by **19.21%** to **$44.30 million** at September 30, **2024**, from **$54.84 million** at December 31, **2023**[94](index=94&type=chunk) Accounts Payable and Accrued Expenses Breakdown | Metric (in thousands) | Sep 30, 2024 | Dec 31, 2023 | Change (in thousands) | % Change | |:------------------------------------|:-------------|:-------------|:----------------------|:---------| | Accounts payable | **19,194** | **18,482** | **712** | **3.85%** | | Accrued payroll expense | **21,383** | **31,153** | (**9,770**) | (**31.36%**) | | Accrued vacation expense | **43** | **2,408** | (**2,365**) | (**98.21%**) | | Accrued interest | **550** | **444** | **106** | **23.87%** | | Other accrued expenses | **3,132** | **2,350** | **782** | **33.28%** | | **Total accounts payable and accrued expenses** | **44,302** | **54,837** | (**10,535**) | (**19.21%**) | - The decrease was primarily driven by a **$9.77 million** reduction in accrued payroll expense and a **$2.37 million** reduction in accrued vacation expense[94](index=94&type=chunk) [7. Fair Value Measurements](index=28&type=section&id=7.%20Fair%20Value%20Measurements) This note explains the company's fair value measurement classifications and the impact of changes on financial statements - Fair value measurements are classified into Level **1** (quoted prices in active markets), Level **2** (observable inputs other than Level **1**), and Level **3** (significant unobservable inputs)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) Fair Value Measured Assets | Fair Value Measured Assets (in thousands) | Sep 30, 2024 | Dec 31, 2023 | Change (in thousands) | % Change | |:----------------------------------------|:-------------|:-------------|:----------------------|:---------| | Investments (Level **3**) | **$10,011** | **$5,000** | **5,011** | **100.22%** | | Restricted Investment (Level **1**) | **$170** | **$128** | **42** | **32.81%** | | **Total Assets** | **$10,181** | **$5,128** | **5,053** | **98.54%** | Fair Value Measured Liabilities | Fair Value Measured Liabilities (in thousands) | Sep 30, 2024 | Dec 31, 2023 | Change (in thousands) | % Change | |:-------------------------------------------|:-------------|:-------------|:----------------------|:---------| | Contingent consideration (Level **3**) | **$(449)** | **$(2,920)** | **2,471** | **84.62%** | | Deferred compensation plan (Level **1**) | **$(1,639)** | **$(891)** | (**748**) | (**83.95%**) | | **Total Liabilities** | **$(2,088)** | **$(3,811)** | **1,723** | **45.21%** | - **TSGF L.P.**'s Level **3** investments increased by **$5.01 million**, with **$4.55 million** from new investments in Slate **TSGF Fitz II LLC** and **$0.46 million** from unrealized gains[102](index=102&type=chunk)[104](index=104&type=chunk) - The contingent consideration liability decreased due to **$1.43 million** transferred out of Level **3** (paid) and **$0.99 million** in unrealized gains for the three months ended September 30, **2024**[103](index=103&type=chunk)[104](index=104&type=chunk) Fair Value Measurement Impact on Operations | Effect on Statements of Operations (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:--------------------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Unrealized gain (loss) on investments | **$483** | **$(67)** | **$492** | **$(77)** | | Realized gain (loss) on investments | **$0** | **$(80)** | **$0** | **$(160)** | | Contingent consideration (gain) loss | **$988** | **$(130)** | **$1,038** | **$(430)** | | Deferred compensation plans (gain) loss | **$(25)** | **$689** | **$(737)** | **$1,479** | | **Net Effect** | **$1,446** | **$492** | **$793** | **$966** | [8. Summary of Fair Value of Financial Instruments](index=32&type=section&id=8.%20Summary%20of%20Fair%20Value%20of%20Financial%20Instruments) This note summarizes the fair value of the company's financial instruments, categorized by valuation techniques - Restricted investment and deferred compensation plan are measured at fair value using Level **1** valuation techniques (quoted market prices)[108](index=108&type=chunk)[109](index=109&type=chunk) - Contingent consideration liabilities for Chesapeake are Level **3**, while Alii Nui is Level **1**[110](index=110&type=chunk) - Cash, cash equivalents, restricted cash, accounts receivable, notes receivable, and various due to/from affiliates have carrying values approximating fair value due to their short-term nature (Level **1**)[111](index=111&type=chunk)[112](index=112&type=chunk) - Notes payable fair value is based on credit spreads on observable transactions (Level **2**). Claims liabilities are based on independent actuary findings (Level **3**)[113](index=113&type=chunk)[114](index=114&type=chunk) [9. Commitments and Contingencies](index=33&type=section&id=9.%20Commitments%20and%20Contingencies) This note discloses the company's legal, tax, and insurance-related commitments and contingent liabilities - The Tax Administration Service's Administration of Quintana Roo (MTA) asserted a **$3.9 million** tax contingency against **INSPIRE** Mexico for the **2020** tax year; the company has accrued **$525,000** as its best estimate of the liability[115](index=115&type=chunk) - A class action lawsuit alleging California employment law violations against a subsidiary is ongoing, with a second mediation ordered by January 31, **2025**. No amounts have been accrued as the potential loss is not reasonably estimable[117](index=117&type=chunk)[118](index=118&type=chunk) - Two class action lawsuits related to a cyber incident in Q3 **2023** have been consolidated, with a motion to dismiss pending. The company believes it has sufficient insurance coverage, and incremental costs are immaterial[120](index=120&type=chunk) - Management believes aggregate liabilities for **Warwick**'s insurance claims are best estimates but acknowledges uncertainty in actual loss experience[116](index=116&type=chunk) [10. Equity (Deficit)](index=34&type=section&id=10.%20Equity%20(Deficit)) This note details the allocation of income (loss) to noncontrolling interests and changes in equity components - For the three months ended September 30, **2024**, noncontrolling interests were allocated income of **$25,000**, a shift from a loss of **$190,000** in the prior year[122](index=122&type=chunk) - For the nine months ended September 30, **2024**, noncontrolling interests were allocated a loss of **$431,000**, an improvement from a loss of **$692,000** in the prior year[122](index=122&type=chunk) Noncontrolling Interests Income (Loss) Allocation | (Income) loss attributable to noncontrolling interests (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:----------------------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | **OpenKey** | **$267** | **$187** | **$713** | **$647** | | Pure Wellness | **$0** | **$(10)** | **$0** | **$32** | | **TSGF L.P.** | **$(292)** | **$13** | **$(282)** | **$13** | | **Total net (income) loss attributable to noncontrolling interests** | **$(25)** | **$190** | **$431** | **$692** | [11. Mezzanine Equity](index=35&type=section&id=11.%20Mezzanine%20Equity) This note describes the company's redeemable noncontrolling interests and preferred stock, including dividend accruals - Redeemable noncontrolling interests were allocated a loss of **$42,000** for the three months ended September 30, **2024**, and income of **$96,000** for the nine months ended September 30, **2024**[125](index=125&type=chunk) Redeemable Noncontrolling Interests Income (Loss) Allocation | Net (income) loss attributable to redeemable noncontrolling interests (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:-------------------------------------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Ashford Holdings | **$42** | **$(111)** | **$(96)** | **$(399)** | - **Series CHP Units** represent a preferred membership interest in Ashford Holdings with a liquidation value of **$25** plus unpaid dividends, accruing cumulative dividends at **7.28%** per annum[125](index=125&type=chunk) - **Series D Convertible Preferred Stock** accrues cumulative dividends at **7.28%** per annum, convertible into common stock at **$117.50** per share[127](index=127&type=chunk) - As of September 30, **2024**, aggregate undeclared preferred stock dividends were approximately **$38.9 million**, recorded as a **$47.6 million** liability in 'dividends payable'[132](index=132&type=chunk)[133](index=133&type=chunk)[136](index=136&type=chunk) - Failure to pay **Series D Convertible Preferred Stock** dividends for two consecutive quarters increases the dividend rate to **10.00%** and grants holders the right to appoint two additional Board members[127](index=127&type=chunk) [12. Equity-Based Compensation](index=37&type=section&id=12.%20Equity-Based%20Compensation) This note details the company's equity-based compensation expense for employees and non-employees, and unrecognized expense - Total equity-based compensation increased to **$762,000** for the three months ended September 30, **2024**, from **$464,000** in the prior year, mainly due to higher employee equity grant expense[137](index=137&type=chunk) - For the nine months ended September 30, **2024**, total equity-based compensation decreased to **$1.91 million** from **$1.94 million**, while REIT equity-based compensation significantly decreased to **$3.70 million** from **$10.17 million**[137](index=137&type=chunk) Equity-Based Compensation Expense | Equity-based compensation (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:-----------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | **Class 2 LTIP Units** and stock option amortization | **$33** | **$32** | **$98** | **$97** | | Employee **LTIP Units** and equity grant expense | **$682** | **$428** | **$1,591** | **$1,308** | | Director and other non-employee equity grants expense | **$47** | **$4** | **$219** | **$539** | | **Total equity-based compensation** | **$762** | **$464** | **$1,908** | **$1,944** | | REIT equity-based compensation | **$644** | **$3,029** | **$3,701** | **$10,167** | | **Total** | **$1,406** | **$3,493** | **$5,609** | **$12,111** | - As of September 30, **2024**, unrecognized compensation expense related to **Class 2 LTIP Units** was **$59,000** (**0.5** years weighted average period) and for restricted shares/**LTIP Units** was **$1.6 million** (**2.0** years weighted average period)[137](index=137&type=chunk) [13. Deferred Compensation Plan](index=37&type=section&id=13.%20Deferred%20Compensation%20Plan) This note describes the company's non-qualified deferred compensation plan and its impact on liabilities and expenses - The non-qualified deferred compensation plan (DCP) allows participants to choose investment options, including **Ashford Inc.** common stock. The DCP obligation is recorded as a fair value liability, with changes reflected in 'salaries and benefits'[138](index=138&type=chunk) - The carrying value of the DCP liability increased to **$1.6 million** at September 30, **2024**, from **$891,000** at December 31, **2023**[139](index=139&type=chunk) Deferred Compensation Plan Fair Value Change | Change in fair value (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Unrealized gain (loss) | **$(25)** | **$689** | **$(737)** | **$1,479** | [14. Related Party Transactions](index=38&type=section&id=14.%20Related%20Party%20Transactions) This note details significant transactions and agreements with related parties, including **Ashford Trust** and **Braemar** - The Third Amended and Restated Advisory Agreement with **Ashford Trust** (March 12, **2024**) modified terms including Portfolio Company Fee, limits on additional payments, and revised covenants[141](index=141&type=chunk) - Amendment No. **1** to Third Amended and Restated Advisory Agreement with **Ashford Trust** (August 8, **2024**) extended the exclusion date for certain hotel property sales from Company Change of Control calculation[142](index=142&type=chunk) - A Limited Waiver Under Advisory Agreement with **Braemar** (August 8, **2024**) waives termination rights related to potential foreclosure of four hotel properties until November 15, **2025**, in exchange for **Braemar** covering Ashford **LLC**'s obligation under the **Stockton Employment Agreement**[211](index=211&type=chunk)[212](index=212&type=chunk) Ashford Trust Revenues by Type | Ashford Trust Revenues by Type (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:----------------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Advisory services fees | **$8,306** | **$8,121** | **$24,708** | **$24,839** | | Hotel management fees | **$5,667** | **$6,751** | **$19,106** | **$22,892** | | Design and construction fees | **$3,098** | **$4,532** | **$9,651** | **$12,771** | | Other revenue | **$1,643** | **$839** | **$6,962** | **$2,997** | | Cost reimbursement revenue | **$63,447** | **$70,196** | **$205,348** | **$206,857** | | **Total revenues** | **$82,161** | **$90,439** | **$265,775** | **$270,356** | Braemar Revenues by Type | Braemar Revenues by Type (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:----------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Advisory services fees | **$3,704** | **$3,591** | **$10,759** | **$11,290** | | Hotel management fees | **$610** | **$670** | **$1,851** | **$1,883** | | Design and construction fees | **$2,278** | **$1,690** | **$8,729** | **$5,973** | | Other revenue | **$2,630** | **$1,962** | **$5,955** | **$3,633** | | Cost reimbursement revenue | **$11,245** | **$12,747** | **$27,636** | **$39,409** | | **Total revenues** | **$20,467** | **$20,660** | **$54,930** | **$62,188** | - The Fourth Amended and Restated Contribution Agreement (effective January 1, **2024**) revised funding allocation for Ashford Securities, resulting in **Ashford Trust** paying **$3.4 million** to the Company and the Company paying **$5.9 million** to **Braemar** for true-up adjustments[159](index=159&type=chunk) - The Company acquired **Remington Hotel Corporation (RHC)** on January 3, **2023**, for a de minimis price, eliminating a **$17.2 million** operating lease liability upon consolidation[165](index=165&type=chunk)[166](index=166&type=chunk) [15. Income (Loss) Per Share](index=47&type=section&id=15.%20Income%20(Loss)%20Per%20Share) This note presents the calculation of basic and diluted earnings per share, considering preferred dividends and anti-dilutive items - For the three months ended September 30, **2024**, basic and diluted **EPS** were both **$(5.71)**, compared to **$(3.87)** in the prior year[172](index=172&type=chunk) - For the nine months ended September 30, **2024**, basic and diluted **EPS** were both **$(10.84)**, compared to **$(8.88)** and **$(9.18)** respectively in the prior year[172](index=172&type=chunk) Income (Loss) Per Share Calculation | Metric (in thousands, except per share amounts) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:----------------------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Net income (loss) attributable to the Company | **$(3,751)** | **$(2,991)** | **$(3,330)** | **$(100)** | | Less: Dividends on preferred stock, declared and undeclared | **$(9,382)** | **$(9,054)** | **$(27,815)** | **$(27,132)** | | **Net income (loss) attributable to common stockholders** | **$(13,133)** | **$(12,045)** | **$(31,145)** | **$(27,232)** | | Weighted average common shares outstanding – basic | **2,301** | **3,116** | **2,873** | **3,065** | | Weighted average common shares outstanding – diluted | **2,301** | **3,116** | **2,873** | **3,130** | | **Income (loss) per share – basic** | **$(5.71)** | **$(3.87)** | **$(10.84)** | **$(8.88)** | | **Income (loss) per share – diluted** | **$(5.71)** | **$(3.87)** | **$(10.84)** | **$(9.18)** | - Undeclared dividends were deducted to arrive at net income (loss) attributable to common stockholders[172](index=172&type=chunk) - Due to their anti-dilutive effect, certain items like redeemable noncontrolling interests, subsidiary convertible interests, and preferred stock conversion are not reflected in diluted **EPS** computation[174](index=174&type=chunk) [16. Segment Reporting](index=48&type=section&id=16.%20Segment%20Reporting) This note provides financial information by reportable segment, including revenues and net income (loss) - The company has six reportable segments: Advisory, **Remington**, **Premier**, **INSPIRE**, **RED**, and **OpenKey**. Pure Wellness and **Warwick** are combined into 'Corporate and Other'[175](index=175&type=chunk) - The **Chief Operating Decision Maker (CODM)** primarily measures segment profitability by net income; segment assets are not reviewed for resource allocation[176](index=176&type=chunk) Segment Revenue Breakdown | Segment Revenue (in thousands) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | Change (in thousands) | % Change | |:-------------------------------|:-------------------------------|:-------------------------------|:----------------------|:---------| | Advisory | **$57,625** | **$60,316** | (**2,691**) | (**4.46%**) | | **Remington** | **$340,355** | **$314,454** | **25,901** | **8.24%** | | **Premier** | **$31,147** | **$30,780** | **367** | **1.19%** | | **INSPIRE** | **127,029** | **112,506** | **14,523** | **12.91%** | | **RED** | **32,882** | **25,866** | **7,016** | **27.13%** | | **OpenKey** | **1,050** | **1,184** | (**134**) | (**11.32%**) | | Corporate and other | **21,558** | **13,941** | **7,617** | **54.64%** | | **Total revenues** | **$611,646** | **$559,047** | **$52,599** | **9.41%** | Segment Net Income (Loss) Breakdown | Segment Net Income (Loss) (in thousands) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | Change (in thousands) | % Change | |:-----------------------------------------|:-------------------------------|:-------------------------------|:----------------------|:---------| | Advisory | **$26,744** | **$25,891** | **853** | **3.29%** | | **Remington** | **$5,430** | **$4,791** | **639** | **13.34%** | | **Premier** | **$(459)** | **$(729)** | **270** | **37.04%** | | **INSPIRE** | **$2,717** | **$2,117** | **600** | **28.34%** | | **RED** | **$(47)** | **$848** | (**895**) | (**105.54%**) | | **OpenKey** | **$(2,755)** | **$(2,792)** | **37** | **1.32%** | | Corporate and Other | **$(35,295)** | **$(30,519)** | (**4,776**) | (**15.65%**) | | **Total net income (loss)** | **$(3,665)** | **$(393)** | (**3,272**) | (**832.57%**) | [17. Subsequent Events](index=53&type=section&id=17.%20Subsequent%20Events) This note discloses significant events occurring after the reporting period, including advisory agreement amendments - On November 7, **2024**, **Stirling REIT Advisors, LLC** amended its advisory agreement with **Stirling**, extending the payment date for organizational and offering expenses to December 31, **2025**, and the repayment period to **120** monthly installments starting January **2026**[189](index=189&type=chunk)[216](index=216&type=chunk) - On November 8, **2024**, **Ashford Trust**'s advisory agreement was amended to extend the exclusion date for certain hotel property sales from the Company Change of Control calculation to November 30, **2025**[190](index=190&type=chunk)[215](index=215&type=chunk) - The Second Amendment to **Ashford Trust**'s advisory agreement also places certain limitations on **Ashford Trust**'s operations should a **Potential Company Change of Control** occur[190](index=190&type=chunk)[215](index=215&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on **Ashford Inc.**'s financial performance and condition, including an overview of its business as an alternative asset manager, recent developments such as the delisting of common stock and advisory agreement amendments, and a detailed analysis of operating results for the three and nine months ended September 30, **2024** [Overview](index=56&type=section&id=Overview) This section provides an overview of **Ashford Inc.**'s business as an alternative asset manager and its strategic initiatives - **Ashford Inc.** is an alternative asset management company with a portfolio of strategic operating businesses serving real estate and hospitality industries, including **Ashford Trust**, **Braemar**, **Stirling**, and **TSGF L.P.**[199](index=199&type=chunk)[202](index=202&type=chunk) - The company delisted its common stock from **NYSE American** on July 29, **2024**, and terminated its public company reporting obligations, effective November 6, **2024**[199](index=199&type=chunk) - Primary growth strategies include increasing assets under management, pursuing third-party business for products and services, and acquiring additional businesses aligned with strategic initiatives[201](index=201&type=chunk) - Mr. Monty J. Bennett and Mr. Archie Bennett, Jr. hold a controlling interest, with approximately **46.6%** common stock ownership and potential **84.7%** ownership upon conversion of **Series D Convertible Preferred Stock** as of November 11, **2024**[199](index=199&type=chunk) [Forward-Looking Statements](index=54&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section cautions readers about forward-looking statements, outlining key risks and the limitations of such information - Forward-looking statements are generally identifiable by terms such as 'may,' 'will,' 'should,' 'expect,' and cover topics including business strategy, operating results, financing, competition, acquisitions, and the impact of technology[193](index=193&type=chunk) - Key risk factors include changes in interest rates, macroeconomic conditions (e.g., weak economic growth, inflation, market volatility), catastrophic events, actions by clients' lenders, dependence on **Ashford Trust** and **Braemar**, compliance with debt covenants, and potential conflicts of interest[194](index=194&type=chunk)[196](index=196&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, which reflect views as of the **Form 10-Q** date and will not be updated, except as required by applicable law[197](index=197&type=chunk) [Recent Developments](index=57&type=section&id=Recent%20Developments) This section provides updates on significant events and changes impacting the company's operations and governance [Termination of the Registration of the Company's Common Stock](index=57&type=section&id=Termination%20of%20the%20Registration%20of%20the%20Company's%20Common%20Stock) This section details the company's actions to terminate the registration of its common stock and associated implications - Stockholders approved a **1-for-10,000** reverse stock split immediately followed by a **10,000-for-1** forward stock split on July 22, **2024**, effective July 29, **2024**[206](index=206&type=chunk)[207](index=207&type=chunk) - The transaction aimed to reduce record holders to fewer than **300**, enabling termination of public registration under Section **12(g)** and suspension of reporting obligations under Section **13(a)** of the **Exchange Act**[208](index=208&type=chunk) - The company paid approximately **$6.9 million** to purchase **1.4 million shares** from stockholders holding fewer than **10,000 shares**[210](index=210&type=chunk) - Annual savings from deregistration are estimated at **$2.5 million**, eliminating expenses associated with public company compliance[209](index=209&type=chunk) [Limited Waiver Under Advisory Agreement (Braemar)](index=57&type=section&id=Limited%20Waiver%20Under%20Advisory%20Agreement) This section describes a limited waiver granted by **Ashford LLC** to **Braemar** regarding advisory agreement termination rights - On August 8, **2024**, Ashford **LLC** entered into a Limited Waiver Under Advisory Agreement with **Braemar**, waiving its right to terminate the advisory agreement due to potential mortgage foreclosure on four hotel properties[211](index=211&type=chunk) - The waiver is effective from August 8, **2024**, until the earlier of November 15, **2025**, or the refinancing of **Braemar**'s mortgage loan[211](index=211&type=chunk) - In exchange for the waiver, **Braemar** agreed to pay Ashford **LLC** an amount equal to Ashford **LLC**'s obligation under the **Stockton Employment Agreement**[212](index=212&type=chunk) - The Limited Waiver becomes null and void if the composition of the **Braemar** Board changes such that the incumbent board members no longer constitute a majority[212](index=212&type=chunk) [Amendments No. 1 and No. 2 to Third Amended and Restated Advisory Agreement (Ashford Trust)](index=58&type=section&id=Amendments%20No.%201%20and%20No.%202%20to%20Third%20Amended%20and%20Restated%20Advisory%20Agreement) This section details amendments to the advisory agreement with **Ashford Trust**, extending exclusion dates and imposing limitations - Amendment No. **1** (August 8, **2024**) extended the exclusion date for sales of **Ashford Trust**'s eight hotel properties associated with **JPM8** from the Company Change of Control calculation to August 31, **2025**[214](index=214&type=chunk) - Amendment No. **2** (November 8, **2024**) further extended this exclusion date to November 30, **2025**, for **Ashford Trust**'s **Highland portfolio** and **JPM8** hotel properties[215](index=215&type=chunk) - Amendment No. **2** also imposes certain limitations on **Ashford Trust**'s operations if a **Potential Company Change of Control** occurs[215](index=215&type=chunk) [Amendment No. 1 to the Advisory Agreement (Stirling)](index=58&type=section&id=Amendment%20No.%201%20to%20the%20Advisory%20Agreement) This section outlines an amendment to **Stirling**'s advisory agreement, modifying expense payment and repayment terms - The date for **Stirling REIT Advisors, LLC** to pay for **Stirling**'s Organization and Offering Expenses was extended from December 31, **2024**, to December 31, **2025**[216](index=216&type=chunk) - The repayment period for these expenses and other costs was changed from **60** equal monthly installments starting January **2025** to **120** equal monthly installments starting January **2026**[216](index=216&type=chunk) [Other Developments](index=59&type=section&id=Other%20Developments) This section reports on recent personnel and board changes within the company and its affiliates - J. Robison Hays, **III**, Senior Managing Director of the Company and President/**CEO** of **Ashford Trust**, resigned effective June 30, **2024**[218](index=218&type=chunk) - Stephen Zsigray was appointed President and Chief Executive Officer of **Ashford Trust**, effective June 30, **2024**[218](index=218&type=chunk) - Mr. W. Michael Murphy, a Board member, passed away on July 24, **2024**, and Mark A. Sharkey, **PhD**, was appointed to the Board of Directors on October 15, **2024**, to fill the vacancy[219](index=219&type=chunk) [Discussion of Presentation](index=59&type=section&id=Discussion%20of%20Presentation) This section clarifies the scope of the financial discussion and the forward-looking nature of historical data - The discussion relates to the financial condition and results of operations of **Ashford Inc.** and entities which it controls[220](index=220&type=chunk) - Historical financial information is not necessarily indicative of future results of operations, financial position, and cash flows[220](index=220&type=chunk) [Results of Operations](index=60&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's operating performance, detailing revenue and expense changes for the reporting periods [Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023](index=60&type=section&id=Three%20Months%20Ended%20September%2030,%202024%20Compared%20to%20Three%20Months%20Ended%20September%2030,%202023) This section compares the company's financial results for the three months ended September 30, **2024**, against the prior year - Net loss attributable to common stockholders increased by **9.0%** to **$(13.13) million** for the three months ended September 30, **2024**, compared to **$(12.05) million** in the prior year[222](index=222&type=chunk) Statements of Operations Summary (Three Months) | Metric (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Change (in thousands) | % Change | |:----------------------------------------------------|:--------------------------------|:--------------------------------|:----------------------|:---------| | Total revenues | **191,112** | **181,215** | **9,897** | **5.46%** | | Total expenses | **190,540** | **180,611** | **9,929** | **5.49%** | | Operating income (loss) | **572** | **604** | (**32**) | (**5.30%**) | | Net income (loss) attributable to common stockholders | (**13,133**) | (**12,045**) | (**1,088**) | (**9.03%**) | - Total revenues increased by **$9.9 million** (**5.5%**), primarily driven by a **$3.7 million** increase in audio visual revenue and a **$4.3 million** increase in other revenue, largely from **Warwick**'s premiums earned[224](index=224&type=chunk)[225](index=225&type=chunk) - Salaries and benefits expense increased by **$0.73 million** (**3.2%**), mainly due to a **$0.71 million** non-cash loss in the deferred compensation plan[227](index=227&type=chunk) - General and administrative expenses increased by **$3.4 million** (**32.1%**), primarily due to **$1.4 million** in professional fees for common stock deregistration and **$0.9 million** for strategic initiatives[231](index=231&type=chunk) - Other operating expense increased by **$2.2 million** (**41.3%**), mainly due to **$2.0 million** in expenses related to **Warwick**, incorporated in December **2023**[232](index=232&type=chunk) - Interest expense increased by **$0.58 million** (**15.8%**) due to a higher balance in the Company's **Credit Facility**[235](index=235&type=chunk) [Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023](index=65&type=section&id=Nine%20Months%20Ended%20September%2030,%202024%20Compared%20to%20Nine%20Months%20Ended%20September%2030,%202023) This section compares the company's financial results for the nine months ended September 30, **2024**, against the prior year - Net loss attributable to common stockholders increased by **14.4%** to **$(31.15) million** for the nine months ended September 30, **2024**, compared to **$(27.23) million** in the prior year[243](index=243&type=chunk) Statements of Operations Summary (Nine Months) | Metric (in thousands) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | Change (in thousands) | % Change | |:----------------------------------------------------|:-------------------------------|:-------------------------------|:----------------------|:---------| | Total revenues | **611,646** | **559,047** | **52,599** | **9.41%** | | Total expenses | **599,147** | **547,278** | **51,869** | **9.48%** | | Operating income (loss) | **12,499** | **11,769** | **730** | **6.20%** | | Net income (loss) attributable to common stockholders | (**31,145**) | (**27,232**) | (**3,913**) | (**14.37%**) | - Total revenues increased by **$52.6 million** (**9.4%**), primarily due to a **$14.5 million** increase in audio visual revenue, an **$18.7 million** increase in other revenue (largely from **Warwick**'s premiums earned), and a **$21.3 million** increase in cost reimbursement revenue[244](index=244&type=chunk)[247](index=247&type=chunk) - Salaries and benefits expense increased by **$2.8 million** (**4.0%**), driven by increased headcount at **INSPIRE** and **RED**, partially offset by a reduction in bonus accrual[249](index=249&type=chunk) - General and administrative expenses increased by **$14.6 million** (**44.7%**), mainly due to **$4.6 million** in professional fees for common stock deregistration, **$3.1 million** for strategic initiatives, and **$2.5 million** to reimburse **Braemar** for Ashford Securities contributions[253](index=253&type=chunk) - Other operating expense increased by **$10.6 million** (**61.8%**), primarily due to **$7.4 million** in expenses related to **Warwick** and **$4.4 million** in **RED**'s operating expenses[253](index=253&type=chunk) - Interest expense increased by **$2.6 million** (**26.3%**) due to a higher balance in the Company's **Credit Facility** and higher average interest rates (**SOFR 5.30%** vs **4.90%**, **Prime 8.48%** vs **8.10%**)[256](index=256&type=chunk) [Liquidity and Capital Resources](index=72&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's cash management, debt agreements, preferred stock dividends, and capital needs [Loan Agreements](index=72&type=section&id=Loan%20Agreements) This section details the company's credit facilities, debt covenants, and compliance status - The company's **$100 million Credit Facility**, amended on March 31, **2023**, bears interest at Adjusted Term **SOFR** + **7.35%** or Base Rate + **6.35%**, maturing in five years with extension options[267](index=267&type=chunk) - The **Credit Facility** requires **100%** excess cash flow prepayment if the **Leverage Ratio** (consolidated funded indebtedness recourse to the Company less unrestricted cash to consolidated **EBITDA**) exceeds **4.00** to **1.00**[268](index=268&type=chunk) - Dividends on common or preferred stock are prohibited if the **Leverage Ratio** exceeds **3.00** to **1.00** after payment[268](index=268&type=chunk) - **INSPIRE**'s credit agreement was amended to increase its revolving credit facility to **$6.0 million** and equipment note to **$7.0 million**, extending maturity to March 24, **2028**[269](index=269&type=chunk) - The company was in compliance with all covenants related to its **Credit Facility** and subsidiary debt as of September 30, **2024**[268](index=268&type=chunk) [Preferred Stock Dividends](index=73&type=section&id=Preferred%20Stock%20Dividends) This section outlines the company's preferred stock dividend obligations and potential implications of non-payment - As of September 30, **2024**, aggregate undeclared preferred stock dividends were approximately **$38.9 million**, recorded as a **$47.6 million** liability in 'dividends payable'[271](index=271&type=chunk)[272](index=272&type=chunk) - The **Series D Convertible Preferred Stock** accrues cumulative dividends at **7.28%** per annum[273](index=273&type=chunk) - A '**Preferred Stock Breach**' (failure to pay dividends for two consecutive quarters) increases the dividend rate to **10.00%** and allows holders to appoint two additional Board members[273](index=273&type=chunk) - The Board's independent members will continuously review the dividend payment policy based on the company's ongoing liquidity and capital needs[272](index=272&type=chunk) [Sources and Uses of Cash](index=73&type=section&id=Sources%20and%20Uses%20of%20Cash) This section analyzes the company's cash flows from operating, investing, and financing activities - Net cash provided by operating activities significantly increased to **$32.5 million** for the nine months ended September 30, **2024**, from **$9.9 million** in the prior year, primarily due to working capital timing[275](index=275&type=chunk) - Net cash used in investing activities was **$20.0 million**, mainly for capital expenditures (**$16.2 million**) and investments (**$4.6 million**)[276](index=276&type=chunk) - Net cash used in financing activities was **$7.9 million**, driven by revolving credit facility payments (**$31.5 million**) and preferred dividends (**$8.7 million**), partially offset by new borrowings (**$34.0 million**) and noncontrolling interest contributions (**$6.8 million**)[278](index=278&type=chunk) Cash Flow Summary | Cash Flow Activity | Nine Months Ended Sep 30, 2024 (in thousands) | Nine Months Ended Sep 30, 2023 (in thousands) | Change (in thousands) | % Change | |:----------------------------------------------------|:----------------------------------------------|:----------------------------------------------|:----------------------|:---------| | Net cash provided by (used in) operating activities | **32,543** | **9,878** | **22,665** | **229.45%** | | Net cash provided by (used in) investing activities | (**20,038**) | (**25,805**) | **5,767** | **22.35%** | | Net cash provided by (used in) financing activities | (**7,906**) | (**1,323**) | (**6,583**) | (**497.58%**) | [Seasonality](index=74&type=section&id=Seasonality) This section addresses the impact of seasonal factors and external events on the company's quarterly revenues and liquidity - Quarterly revenues may be adversely affected by events beyond the company's control, such as extreme weather, natural disasters, terrorist attacks, civil unrest, economic factors, and other travel-related considerations[280](index=280&type=chunk) - The company expects to use cash on hand or borrowings to fund operations if cash flows are insufficient due to temporary or seasonal revenue fluctuations[280](index=280&type=chunk) [Contractual Obligations and Commitments](index=74&type=section&id=Contractual%20Obligations%20and%20Commitments) This section confirms no material changes to contractual obligations since the last annual report - There have been no material changes to contractual obligations and commitments since December 31, **2023**, outside the ordinary course of business, other than items described in the Liquidity and Capital Resources section[281](index=281&type=chunk) [Critical Accounting Policies and Estimates](index=74&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights key accounting policies and estimates, noting no material changes since the **2023 Form 10-K** - The preparation of consolidated financial statements requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities[282](index=282&type=chunk) - There have been no material changes in the critical accounting policies and estimates since the **2023 Form 10-K**[282](index=282&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=74&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the company's exposure to interest rate and foreign exchange risks and its approach to managing them [Interest Rate Risk](index=74&type=section&id=Interest%20Rate%20Risk) This section quantifies the company's exposure to interest rate fluctuations on its variable-rate debt - As of September 30, **2024**, total indebtedness was **$143.0 million**, with **$134.9 million** (**94.3%**) being variable-rate debt[284](index=284&type=chunk) - A hypothetical **100** basis point change in interest rates on the outstanding variable-rate debt would impact annual results of operations by approximately **$1.3 million**[284](index=284&type=chunk) - The information presented is based on exposures at September 30, **2024**, and has limited predictive value for future periods[285](index=285&type=chunk) [Foreign Exchange Risk](index=75&type=section&id=Foreign%20Exchange%20Risk) This section describes the company's exposure to foreign currency exchange rate fluctuations from international operations - The majority of the company's revenues, expenses, and capital purchases are transacted in **U.S. dollars**[286](index=286&type=chunk) - Opera

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number: 001-36400 ASHFORD INC. (Exact name of registrant as specified in its charter) Nevada 84-2331507 (State or oth ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number: 001-36400 ASHFORD INC. (Exact name of registrant as specified in its charter) Nevada 84-2331507 (State or ot ...

EXHIBIT 99.1 NEWS RELEASE Contact: Deric Eubanks Jordan Jennings Joe Calabrese (972) 490-9600 (972) 778-9487 (212) 827-3772 Chief Financial Officer Investor Relations Financial Relations Board ASHFORD REPORTS FIRST QUARTER 2024 RESULTS DALLAS, May 8, 2024 - Ashford Inc., an alternative asset management company with a portfolio of strategic operating businesses (NYSE American: AINC) ("Ashford" or the "Company"), today reported the following results and performance measures for the first quarter ended March 3 ...