InnSuites Hospitality Trust(IHT) - 2026 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended April 30, 2025, was $2,205,763, a decrease of 3.83% compared to $2,293,970 for the same period in 2024[14] - Operating income increased to $222,396 for the three months ended April 30, 2025, compared to $178,429 for the same period in 2024, reflecting a growth of 24.63%[14] - Consolidated net income for the three months ended April 30, 2025, was $39,030, down from $86,598 in the same period in 2024, representing a decline of 54.91%[14] - The company reported a net loss attributable to controlling interests of $121,032 for the three months ended April 30, 2025, compared to a net loss of $148,550 for the same period in 2024[14] - Consolidated net income for the three months ended April 30, 2025, was $39,030, a decrease of 54.8% compared to $86,598 for the same period in 2024[19] Assets and Liabilities - Total assets decreased to $14,027,617 as of April 30, 2025, from $14,193,580 as of January 31, 2025, a reduction of 1.17%[12] - Total liabilities decreased to $13,353,109 as of April 30, 2025, from $13,548,102 as of January 31, 2025, a decline of 1.44%[12] - The Trust's total equity increased from $645,478 as of January 31, 2025, to $674,508 as of April 30, 2025, marking an increase of approximately 4.5%[12] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $13,004, down from $92,752 at the beginning of the period, a decrease of 86.99%[19] - Net cash provided by operating activities was $279,826, a significant recovery from a net cash used of $(459,417) in the prior year[19] - The Trust's liquidity is supported by hotel room/suite sales and management fees, with a related party line of credit of $2 million available for future needs[30][32] Operating Expenses - The company incurred total operating expenses of $1,983,367 for the three months ended April 30, 2025, down from $2,115,541 in the same period in 2024, a decrease of 6.25%[14] - The Trust's cash paid for interest for the three months ended April 30, 2025, was $151,000, an increase from $117,000 in the same period of 2024[115] - The Trust's operating lease costs for the three months ended April 30, 2025, amounted to $37,279[124] Investments and Strategic Options - The company holds a $1 million 6% convertible debenture in UniGen Power Inc. and approximately $668,750 in UniGen's privately-held common stock[21] - The Trust's management is exploring strategic options, including potential sales or refinancing of hotel properties[34] - The management subsidiary obtained a five-year option to purchase IBC Hotels, LLC at cost, which could become a valuable asset if operations are successfully rekindled[149] Revenue Sources - The Trust's principal source of cash is from hotel room/suite sales and management fees, with a related party line of credit of approximately $1.1 million at 7.0% interest[32][30] - The Trust's revenues primarily consist of room rentals, food and beverage sales, and management fees, recognized as services are rendered[54] - Revenue is primarily derived from room rentals, food and beverage sales, and management fees, recognized as services are rendered[53] Seasonality and Risks - The Trust's hotel operations are subject to seasonality, with the Tucson hotel experiencing peak occupancy in the first fiscal quarter[43] - The seasonal nature of hotel operations may increase vulnerability to risks such as travel disruptions and economic fluctuations[43][44] Financial Management and Policies - The Trust maintained a conservative dividend policy, paying two semi-annual dividends totaling $0.02 per share per fiscal year, with $0.01 per share paid in each of the first and second quarters of fiscal years 2024 and 2025[146] - The Trust has maintained uninterrupted annual dividends since 1971, indicating a stable financial history[22] Impairment and Valuation - The Trust tests its land for impairment annually, ensuring that the carrying value does not exceed its implied fair value[48] - No impairment is required for long-lived assets for the Fiscal Period ended April 30, 2025, as estimated future cash flows exceed carrying values[51] Employee Compensation - The Trust's employee equity incentive plan includes annual compensation of 6,000 fully paid restricted shares to each independent Board member[60] Advertising and Marketing - Advertising expenses for continuing operations totaled approximately $84,000 for the three months ended April 30, 2025, up from $79,000 in the same period of 2024, reflecting a 6.3% increase[64]