InnSuites Hospitality Trust(IHT) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended April 30, 2024, was $2,293,970, an increase of 3.98$2,205,956 for the same period in 2023[12] - Consolidated net income for the three months ended April 30, 2024, was $86,598, a decrease of 81.42$465,445 in the prior year[12] - Operating loss for the three months ended April 30, 2024, was $178,429, compared to an operating loss of$186,280 for the same period in 2023[12] - Total operating expenses increased to $2,115,541 for the three months ended April 30, 2024, up from$2,019,676 in the same period last year, marking a rise of 4.74%[12] - The company reported a net loss attributable to controlling interests of $148,550 for the three months ended April 30, 2024, compared to a net income of$236,608 in the prior year[12] - For the Fiscal Year ended January 31, 2024, total revenues increased to approximately $7.5 million, representing a 5$7.1 million[139] - Net income attributable to controlling interests for the same period was $203,880, resulting in earnings per share of$0.02[139] Assets and Liabilities - Total assets decreased to $15,284,425 as of April 30, 2024, down from$15,680,367 as of January 31, 2024, representing a decline of 2.52%[10] - Total liabilities decreased to $12,721,028 as of April 30, 2024, compared to$13,025,455 as of January 31, 2024, a reduction of 2.34%[10] - Total current assets decreased to $2,578,124 as of April 30, 2024, down from$2,981,732 as of January 31, 2024, representing a decline of 13.47%[10] - The total present value of minimum lease payments was $2,249,072, with long-term obligations of$2,223,225[123] - The scheduled minimum payments of debt as of April 30, 2024, totaled approximately $9,655,916, including$9,185,916 in mortgages and $470,000 in other notes payable[104] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were$437,343, down from $1,325,368 at the beginning of the period, reflecting a decrease of 65.92$(459,417) for the three months ended April 30, 2024, compared to $37,036 provided by operating activities in the same period last year[18] - The Trust had approximately$437,000 in cash and access to $2,250,000 in credit facilities, indicating sufficient liquidity for the next twelve months[32] - The Trust's liquidity is supported by hotel room reservation revenues and management fees, with a cash balance of approximately$437,000 as of April 30, 2024[28] - The Trust has a maximum borrowing capacity of $2,000,000 from a Demand/Revolving Line of Credit, which accrues interest at 7.0$700,000 in note receivables and approximately $300,000 as the fair value of warrants, with a total investment of$1,000,000[71] - The Trust holds warrants to purchase up to 1,500,000 shares of UniGen Class A Common Stock, with exercise prices of $1.00 and$2.25 per share[69] - Upon conversion of the note receivable and exercise of all warrants, the Trust could own approximately 2.5 million UniGen shares, representing about 20% or more of fully diluted UniGen equity[70] Operational Insights - The Trust's principal source of cash is from hotel room reservations and management fees, with a focus on generating sufficient cash flow to meet financial obligations[28] - The Trust's revenue primarily comes from room rentals, food and beverage sales, and management fees, recognized as services are rendered[51] - The Tucson hotel experiences the highest occupancy in the first fiscal quarter, while the Albuquerque hotel is most profitable in the second and third fiscal quarters, indicating seasonal revenue fluctuations[41] - The Trust's operations are affected by seasonality, with the Tucson Hotel experiencing highest occupancy in the first fiscal quarter[41] Management and Governance - The Trust plans to change auditors and transfer agents in the second fiscal quarter of 2024[37] - The Trust has an employee equity incentive plan where independent Board members earn 6,000 fully paid restricted Shares per year, vesting over one year[58] - The Trust's management fees for the hotels are set at 5% of room revenue, with a monthly accounting fee of $2,000 per hotel[110] Advertising and Marketing - Advertising expenses for continuing operations totaled approximately$79,000 for the three months ended April 30, 2024, compared to $82,000 for the same period in 2023, reflecting a decrease of 3.66%[62] Credit and Risk Management - The Trust's maximum credit risk for accounts receivable is estimated at the amount recorded on the balance sheet, with low credit risk for cash and cash equivalents held in creditworthy institutions[63][64] - The Trust's management assesses credit risk for cash and cash equivalents as low, as funds are held in creditworthy financial institutions[63]