Financial Performance - Total revenue for the three months ended October 31, 2024, was 5,751,583 for the same period in 2023[11] - Operating loss for the three months ended October 31, 2024, was (129,819) for the same period in 2023, indicating a decline in operational performance[11] - Consolidated net loss for the three months ended October 31, 2024, was 611,693 for the same period in 2023, reflecting a significant downturn[11] - Room revenue for the three months ended October 31, 2024, was 5,644,555 in the same period of 2023, an increase of 2.1%[11] - Operating expenses for the three months ended October 31, 2024, totaled 5,881,402 for the same period in 2023[11] - Consolidated net loss for the nine months ended October 31, 2024, was 611,693 for the same period in 2023[18] Assets and Liabilities - Total current assets decreased to 2,981,732 as of January 31, 2024, a decline of approximately 18%[10] - Total assets decreased to 15,680,367 as of January 31, 2024, representing a reduction of about 4.5%[10] - Total liabilities increased to 13,025,455 as of January 31, 2024, an increase of approximately 2.3%[10] - Total equity decreased to 2,654,912 as of January 31, 2024, a decline of about 37.7%[10] Cash Flow and Investments - Net cash used in operating activities was 1,511,150 in the prior year[18] - Cash and cash equivalents at the end of the period were 1,904,676 at the end of the previous year[18] - Net cash used in investing activities totaled (390,083) in the same period of 2023[18] - The Trust holds a 668,750 in UniGen's common stock[20] - The Trust's liquidity is dependent on generating sufficient cash flow from hotel operations and potential asset sales[28] Strategic Considerations - The Trust is considering strategic options, including the sale of one or both hotel properties, to improve liquidity[32] - The Trust's operations are vulnerable to risks such as travel disruptions and economic downturns, which could significantly impact revenues and profits[42] Shareholder Information - The weighted average number of shares outstanding for basic and diluted earnings per share was 8,781,199 for the three months ended October 31, 2024, compared to 9,111,614 for the same period in 2023[11] - The balance of shareholders' equity as of October 31, 2024, was 2,563,397 as of April 30, 2024[13] - As of October 31, 2024, Mr. Wirth and his affiliates held 2,974,038 Class B Partnership units, representing 22.51% of total outstanding Partnership units, and 6,250,296 Shares of Beneficial Interest, representing 73.20% of total issued Shares[114] - The Trust owns 75.89% of the Partnership, which has a 51.62% interest in the InnSuites® hotel in Tucson and a direct 21.90% interest in another InnSuites® hotel in Albuquerque[116] Revenue Recognition and Accounting Policies - The Trust recognizes revenues primarily from room rentals, food and beverage sales, management and trademark fees, and miscellaneous revenues, with revenue recorded when rooms are occupied and services are rendered[51] - The Trust applies straight-line depreciation for furniture, fixtures, and equipment over estimated lives ranging from 3 to 10 years, while buildings and improvements are depreciated over up to 40 years[46] - The Trust recognizes revenue for cancellable reservations as each performance obligation is met, while for non-cancellable reservations, revenue is recognized over the reservation period[54]
InnSuites Hospitality Trust(IHT) - 2025 Q3 - Quarterly Report