InnSuites Hospitality Trust(IHT) - 2022 Q3 - Quarterly Report

Financial Performance - Total revenue for the nine months ended October 31, 2021, was $4,763,123, representing a 43.4% increase from $3,323,757 in the same period of 2020[9] - Room revenue increased to $4,605,908 for the nine months ended October 31, 2021, up 53.2% from $3,006,851 in the prior year[9] - Consolidated net income for the nine months ended October 31, 2021, was $391,153, compared to a net loss of $2,388,181 in the same period of 2020[9] - Operating loss for the three months ended October 31, 2021, was $104,228, compared to an operating loss of $678,784 in the same quarter of 2020, indicating a reduction in losses[11] - Total operating expenses for the nine months ended October 31, 2021, were $5,111,499, a decrease from $5,519,108 in the same period of 2020[9] - The company reported a net loss per share of $0.05 for the nine months ended October 31, 2021, compared to a loss of $0.14 in the same period of 2020[9] Assets and Liabilities - Total assets as of October 31, 2021, were $14,455,464, a decrease from $15,393,108 as of January 31, 2021[7] - Total liabilities decreased to $11,551,949 as of October 31, 2021, from $12,883,536 as of January 31, 2021, reflecting a reduction of 10.3%[7] - The Trust had a mortgage note payable of approximately $4,493,000 as of October 31, 2021, with a scheduled maturity date in June 2042 and a weighted average interest rate of 4.69%[91] Cash and Liquidity - The company had cash and cash equivalents of $1,151,948 as of October 31, 2021, down from $1,702,755 as of January 31, 2021[7] - The Trust's liquidity is supported by approximately $1,152,000 in cash and $800,000 available from credit facilities, ensuring it can meet financial obligations for the next twelve months[29] - The Trust reported a net cash provided by operating activities of $125,017, contrasting with a net cash used of $(720,718) in the prior year[16] - Total cash and cash equivalents at the end of the period were $1,151,948, up from $47,386 at the end of the same period in 2020[16] Shareholder Equity - The total shareholders' equity as of October 31, 2021, was $2,903,515, an increase from $2,509,572 as of January 31, 2021[7] - The Trust's total equity as of October 31, 2021, was $5,702,289, reflecting a decrease from $6,548,345 in the previous year[15] - The weighted average number of shares outstanding for the nine months ended October 31, 2021, was 9,116,639, compared to 9,187,337 in the prior year[9] Investments and Strategic Options - The Trust's investments in UniGen amounted to $(213,750) for the nine months ended October 31, 2021, compared to $(430,000) in the previous year[16] - The Trust is analyzing strategic options, including the potential sale of hotel properties and refinancing, although favorable terms are not guaranteed[30] - The Trust's investment in UniGen Power Inc. consists of approximately $700,000 in note receivables and approximately $300,000 as the fair value of the warrants issued[73] Operational Insights - The Trust's revenues are primarily derived from hotel room rentals, food and beverage sales, and management fees, recognized as services are rendered[48] - The Trust's operations are affected by seasonality, with the Tucson Hotel experiencing highest occupancy in the first fiscal quarter and the Albuquerque Hotel in the second and third quarters[38] - The Trust's quarterly distributions from the Albuquerque and Tucson hotels are projected to resume on February 15, 2022, after disruptions caused by the Covid-19 pandemic[26] Expenses and Costs - Advertising expenses for continuing operations totaled approximately $39,000 and $59,000 for the three months ended October 31, 2021 and 2020, respectively[62] - The Trust incurred stock-based compensation of $187,110 for the nine months ended October 31, 2021, compared to $21,600 in the previous year[16] - The Trust's interest expense for the nine months ended October 31, 2021, was approximately $241,000, compared to $182,000 for the same period in 2020[114] Compliance and Financial Reporting - The Trust's financial statements are prepared in accordance with GAAP, and all significant intercompany transactions have been eliminated[22] - The Trust has no allowance for doubtful accounts as of October 31, 2021, indicating effective management of receivables[52] - Fair value is determined using available market information and appropriate valuation methodologies, with a hierarchy of valuation techniques based on observable or unobservable inputs[65]