InnSuites Hospitality Trust(US:IHT)2025-12-15 22:28Financial Performance - Total revenue for the nine months ended October 31, 2025, was $5,809,673, a decrease of 2.5% compared to $5,959,490 for the same period in 2024[13]. - Operating loss for the nine months ended October 31, 2025, was $197,701, an improvement from a loss of $253,709 in the prior year[13]. - Consolidated net loss for the nine months ended October 31, 2025, was $713,982, compared to a net loss of $556,746 for the same period in 2024[13]. - Net loss attributable to controlling interests for the nine months ended October 31, 2025, was $869,120, compared to $811,658 in the same period of 2024[13]. - The company reported a net loss per share of $0.10 for the nine months ended October 31, 2025, compared to $0.09 for the same period in 2024[13]. - For the nine months ended October 31, 2025, the consolidated net loss was $713,982, compared to a net loss of $556,746 for the same period in 2024, indicating a year-over-year increase in losses of approximately 28.2%[20]. - Total operating expenses for the nine months ended October 31, 2025, were $6,007,374, down from $6,213,199 in the prior year[13]. - Cash flows from operating activities resulted in a net cash used of $18,240 for the nine months ended October 31, 2025, significantly improved from $650,721 in the prior year[20]. Assets and Liabilities - Total assets as of October 31, 2025, were $13,895,269, a decrease from $14,193,580 as of January 31, 2025[11]. - Total current assets as of October 31, 2025, were $1,422,244, a decrease from $1,720,455 as of January 31, 2025[11]. - Total liabilities increased to $14,042,169 as of October 31, 2025, compared to $13,548,102 as of January 31, 2025[11]. - Total equity as of October 31, 2025, was $(146,900), a decrease from $645,478 as of January 31, 2025[11]. Cash and Investments - The Trust's total cash and cash equivalents at the end of the period were $14,016, down from $451,905 a year earlier[20]. - The Trust invested $540,051 in improvements and additions to hotel properties during the nine months ended October 31, 2025[20]. - Principal payments on mortgage notes payable amounted to $202,011 for the nine months ended October 31, 2025, compared to $157,401 in the previous year[20]. - The Trust's liquidity is supported by revenues from hotel operations and management fees, with a related party demand/revolving line of credit of approximately $2.0 million available[30][32]. Operational Insights - The Trust's two hotels, located in Tucson, Arizona, and Albuquerque, New Mexico, have a total of 270 hotel suites and are operated under the "InnSuites" and "Best Western" brands[21]. - The Trust's hotel operations are seasonal, with the Tucson Arizona Hotel experiencing the highest occupancy in the first Fiscal Quarter, while the Albuquerque Hotel is most profitable during the second and third Fiscal Quarters[43]. - Revenue is primarily derived from room rentals, food and beverage sales, and management fees, recognized as services are rendered[52][53]. - The Trust recognizes revenue for cancellable reservations as each room night is consumed, while for non-cancellable reservations, revenue is recognized over the reservation period[55]. Strategic Initiatives - The Trust is exploring strategic options, including the sale or refinance of hotel properties and investments, to improve liquidity and cash flow[34]. - The Trust has maintained uninterrupted annual dividends since 1971, indicating a commitment to shareholder returns despite recent losses[22]. - Management believes that the Trust will show positive cash flow in Fiscal Year 2027, supported by the rebound of the hotel industry and diversification investments[143]. Financial Management - The Trust has a secured promissory note from the sale of its technology subsidiary, IBC Hotels LLC, with a principal amount of $1,925,000 and interest accrued at 3.75% per annum[132]. - The Trust has determined that the Albuquerque entity is a variable interest entity, with the Partnership as the primary beneficiary[94]. - The Trust's financial operations are affected by various factors, including economic conditions, inflation, and competition in the hotel industry[46]. - The Trust's management is focused on cost-cutting measures amid increased economic uncertainty, aiming to improve profitability[143].