Financial Performance - Total revenue for the quarter ended July 31, 2024, was $4,134,362, an increase of 5.3% compared to $3,927,084 for the same period in 2023[5]. - Consolidated net loss for the quarter was $(331,387), a significant decline from a net income of $531,825 in the same quarter last year[5]. - The Trust reported a net income of $245,661 for the six months ended July 31, 2023, compared to a net loss of $331,387 for the same period in 2024, indicating a significant decline in performance[9]. - Total revenues for the six months ended July 31, 2024, were approximately $4.13 million, an increase of 5% from $3.93 million for the same period in 2023[123]. - Consolidated net loss for the six months ended July 31, 2024, was approximately $331,000, a decrease of approximately $863,000 compared to a net income of approximately $532,000 for the same period in 2023[126]. Operating Expenses - Operating expenses for the quarter were $4,249,872, up 9.0% from $3,896,643 in the prior year, leading to an operating loss of $(115,510) compared to a profit of $30,441 in 2023[5]. - Total operating expenses for the six months ended July 31, 2024, were approximately $4.25 million, an increase of 9% from $3.90 million for the same period in 2023[129]. - Total expenses net of interest expense for the three months ended July 31, 2024, were approximately $2.13 million, reflecting a 14% increase from $1.87 million for the same period in 2023[138]. Revenue Sources - Room revenue for the quarter was $4,008,662, up 3.7% from $3,864,842 in the previous year[5]. - The Trust's principal source of cash is derived from hotel room reservations and management fees from its properties[17]. - The Trust's revenue is primarily derived from room rentals, food and beverage sales, and management fees, with revenues recognized as services are rendered[31]. Cash Flow and Liquidity - The Trust's cash flows from operating activities resulted in a net cash used of $504,012 for the six months ended July 31, 2024, compared to a net cash provided of $1,438,884 in the prior year[11]. - As of July 31, 2024, the Trust had cash and cash equivalents of approximately $418,033, a significant decrease from $2,398,884 at the end of July 2023[11]. - The Trust's liquidity is primarily dependent on revenues from hotel operations and management fees, with potential future cash from asset sales[17]. Investments and Strategic Focus - The Trust's investments in UniGen include a $1 million convertible debenture and approximately $668,750 in common stock, indicating a strategic focus on diversification[12]. - The Trust has invested approximately $1 million in a 6% convertible debenture in UniGen Power Inc. and holds about $668,750 in UniGen's common stock[12]. - The Trust plans to sell its remaining two hotel properties, with an estimated market asking price of $9.5 million for the Albuquerque Hotel and $18.5 million for the Tucson Hotel, totaling $28 million[174]. Shareholder Information - The weighted average number of shares outstanding decreased to 8,761,505 from 9,039,730 year-over-year[5]. - The net loss per share for the quarter was $(0.06), compared to earnings of $0.03 per share in the same quarter last year[5]. - Dividends paid during the six months ended July 31, 2024, totaled $90,237, slightly increasing from $90,062 in the same period of 2023[11]. Operational Adjustments - The Trust's management has changed auditors and transfer agents during the second fiscal quarter, reflecting ongoing operational adjustments[21]. - The Trust's operations are vulnerable to risks such as travel disruptions and economic downturns, which could significantly impact revenues and profits[24]. - The Trust's operations are subject to seasonality, with the Tucson Hotel experiencing the highest occupancy in the first fiscal quarter[179]. Market Outlook - The Trust anticipates steady leisure travel demand and limited new hotel supply, expecting continued revenue growth in Fiscal Year 2025[146]. - The market demand for electricity in the U.S. is projected to potentially double over the next five years due to increased demand from electric vehicles and artificial intelligence[186].
InnSuites Hospitality Trust(IHT) - 2025 Q2 - Quarterly Report