Cover
Cover - shares | 6 Months Ended | |
Jul. 31, 2023 | Sep. 14, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jul. 31, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --01-31 | |
Entity File Number | 1-7062 | |
Entity Registrant Name | INNSUITES HOSPITALITY TRUST | |
Entity Central Index Key | 0000082473 | |
Entity Tax Identification Number | 34-6647590 | |
Entity Incorporation, State or Country Code | OH | |
Entity Address, Address Line One | InnSuites Hospitality Centre | |
Entity Address, Address Line Two | 1730 E. Northern Avenue | |
Entity Address, Address Line Three | Suite 122 | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85020 | |
City Area Code | (602) | |
Local Phone Number | 944-1500 | |
Title of 12(b) Security | Shares of beneficial interest without par value | |
Trading Symbol | IHT | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,006,206 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jul. 31, 2023 | Jan. 31, 2023 |
Current Assets: | ||
Cash | $ 2,398,884 | $ 2,111,383 |
Accounts Receivable | 170,036 | 101,737 |
Employee Retention Credit Receivable | 630,907 | 1,753,955 |
Prepaid Expenses and Other Current Assets | 387,950 | 200,429 |
Total Current Assets | 3,587,777 | 4,167,504 |
Property and Equipment, net | 7,121,896 | 7,209,488 |
Notes Receivable (net) | 1,925,000 | 1,925,000 |
Operating Lease – Right of Use | 2,098,703 | 2,108,418 |
Finance Lease – Right of Use | 6,937 | 20,812 |
Convertible Note Receivable | 1,000,000 | 1,000,000 |
Investment in Private Company Stock | 618,750 | 588,750 |
TOTAL ASSETS | 16,359,063 | 17,019,972 |
Current Liabilities: | ||
Accounts Payable and Accrued Expenses | 675,769 | 990,291 |
Current Portion of Mortgage Notes Payable, net of Discount | 228,159 | 223,680 |
Current Portion of Other Notes Payable | 470,000 | 570,000 |
Current Portion of Operating Lease Liability | 18,572 | 12,010 |
Current Portion of Finance Lease Liability | 7,718 | 15,159 |
Total Current Liabilities | 1,400,218 | 1,811,140 |
Mortgage Notes Payable, net of Discount | 9,135,240 | 9,251,324 |
Operating Lease Liability, net of current portion | 2,249,072 | 2,267,645 |
Finance Lease Liability, net of current portion | 7,718 | |
TOTAL LIABILITIES | 12,784,530 | 13,337,827 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY | ||
Shares of Beneficial Interest, without par value, unlimited authorization; 8,988,804 and 9,161,589 shares issued and 8,953,587 and 9,010,909 shares outstanding at July 31, 2023 and January 31, 2023, respectively | 7,170,894 | 6,992,148 |
Treasury Stock, 35,217 and 150,680 shares held at cost at July 31, 2023 and January 31, 2023, respectively | (643,280) | (417,100) |
TOTAL TRUST SHAREHOLDERS’ EQUITY | 6,527,614 | 6,575,048 |
NON-CONTROLLING INTEREST | (2,953,081) | (2,892,903) |
TOTAL EQUITY | 3,574,533 | 3,682,145 |
TOTAL LIABILITIES AND EQUITY | 16,359,063 | 17,019,972 |
Related Party [Member] | ||
Current Assets: | ||
Notes Receivable (net) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Jan. 31, 2023 | |
Statement of Financial Position [Abstract] | ||
Common stock, no par value | ||
Common stock, shares authorized, unlimited | Unlimited | Unlimited |
Common stock, shares issued | 8,988,804 | 9,161,589 |
Common stock, shares outstanding | 8,953,587 | 9,010,909 |
Treasury stock, shares | 35,217 | 150,680 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
REVENUE | ||||
TOTAL REVENUE | $ 1,721,128 | $ 1,699,107 | $ 3,927,084 | $ 3,835,202 |
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | 1,867,165 | 1,683,518 | 3,896,643 | 3,681,510 |
OPERATING (LOSS) INCOME | (146,037) | 15,589 | 30,441 | 153,692 |
Other Income | 18,009 | 354 | 18,815 | 459 |
Interest Income | 16,037 | 16,108 | 33,637 | 31,734 |
TOTAL OTHER INCOME | 34,046 | 16,462 | 52,452 | 32,193 |
Interest on Mortgage Notes Payable | 158,296 | 122,472 | 242,040 | 215,655 |
Interest on Notes Payable - Related Party | ||||
Interest on Other Notes Payable | 4,322 | 175 | 10,610 | 42,467 |
TOTAL INTEREST EXPENSE | 162,618 | 122,647 | 252,650 | 258,122 |
CONSOLIDATED NET LOSS BEFORE EMPLOYEE RETENTION CREDIT | (274,609) | (90,596) | (169,757) | (72,237) |
Employee Retention Credit | 350,791 | 350,791 | 701,582 | 701,582 |
CONSOLIDATED NET INCOME | 76,182 | 260,195 | 531,825 | 629,345 |
LESS: NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 57,327 | 157,668 | 286,164 | 345,740 |
NET INCOME ATTRIBUTABLE TO CONTROLLING INTERESTS | $ 18,855 | $ 102,527 | $ 245,661 | $ 283,605 |
NET INCOME PER SHARE - BASIC | $ 0 | $ 0.01 | $ 0.03 | $ 0.03 |
NET INCOME PER SHARE - DILUTED | $ 0 | $ 0.01 | $ 0.03 | $ 0.03 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC | 9,109,276 | 9,109,276 | 9,039,730 | 9,113,216 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED | 9,109,276 | 9,109,276 | 9,039,730 | 9,113,216 |
Room [Member] | ||||
REVENUE | ||||
TOTAL REVENUE | $ 1,686,384 | $ 1,663,329 | $ 3,864,842 | $ 3,750,499 |
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | 630,700 | 545,345 | 1,260,636 | 1,112,132 |
Food and Beverage [Member] | ||||
REVENUE | ||||
TOTAL REVENUE | 11,119 | 12,162 | 28,705 | 27,939 |
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | 45,275 | 49,752 | 93,212 | 106,134 |
Other [Member] | ||||
REVENUE | ||||
TOTAL REVENUE | 23,625 | 23,616 | 33,537 | 56,764 |
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | 16,213 | 12,944 | ||
Telecommunications [Member] | ||||
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | 537 | 537 | ||
General and Administrative [Member] | ||||
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | 604,089 | 521,422 | 1,223,827 | 1,122,876 |
Sales and Marketing [Member] | ||||
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | 100,595 | 96,921 | 198,070 | 247,105 |
Repairs and Maintenance [Member] | ||||
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | 95,303 | 84,802 | 211,460 | 192,155 |
Hospitality [Member] | ||||
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | 111,286 | 84,736 | 231,697 | 162,172 |
Utilities [Member] | ||||
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | 111,239 | 111,930 | 210,529 | 221,851 |
Depreciation [Member] | ||||
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | 166,608 | 172,745 | 334,786 | 344,436 |
Real Estate and Personal Property Taxes, Insurance and Ground Rent [Member] | ||||
OPERATING EXPENSES | ||||
TOTAL OPERATING EXPENSES | $ 1,533 | $ 15,865 | $ 115,676 | $ 159,705 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Treasury Stock, Common [Member] | Trust Shareholders Equity [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Jan. 31, 2022 | $ 6,599,069 | $ (130,464) | $ 6,468,605 | $ (2,336,564) | $ 4,132,041 |
Beginning balance, shares at Jan. 31, 2022 | 9,079,513 | 44,076 | |||
Net Income | $ 283,605 | 283,605 | 345,740 | 629,345 | |
Purchase of Treasury Stock | $ (161,400) | (161,400) | (161,400) | ||
Purchase of Treasury Stock, shares | 53,159 | (53,159) | |||
Purchase of Treasury Stock, shares | (53,159) | 53,159 | |||
Shares of Beneficial Interest Issued for Services Rendered | $ 13,173 | 13,173 | 13,173 | ||
Shares of Beneficial Interest Issued for Services Rendered, shares | 38,000 | ||||
Dividends | $ (91,175) | (91,175) | (91,175) | ||
Distribution to Non-Controlling Interests | (433,718) | (433,718) | |||
Sales of Ownership Interests in Subsidiary, net | (30,000) | (30,000) | |||
Reallocation of Non-Controlling Interests and Other | 32,024 | 32,024 | (32,024) | ||
Ending balance, value at Jul. 31, 2022 | $ 6,836,696 | $ (291,864) | 6,544,832 | (2,486,566) | 4,058,266 |
Ending balance, shares at Jul. 31, 2022 | 9,064,354 | 97,235 | |||
Beginning balance, value at Jan. 31, 2023 | $ 6,992,148 | $ (417,100) | 6,575,048 | (2,892,903) | 3,682,145 |
Beginning balance, shares at Jan. 31, 2023 | 9,010,909 | 150,680 | |||
Net Income | $ 245,661 | 245,661 | 286,164 | 531,825 | |
Purchase of Treasury Stock | $ (226,180) | (226,180) | (226,180) | ||
Purchase of Treasury Stock, shares | (103,322) | (103,322) | |||
Purchase of Treasury Stock, shares | 103,322 | 103,322 | |||
Shares of Beneficial Interest Issued for Services Rendered | $ 23,147 | 23,147 | 23,147 | ||
Shares of Beneficial Interest Issued for Services Rendered, shares | 46,000 | ||||
Dividends | $ (90,062) | (90,062) | (90,062) | ||
Reconciliation of Treasury Shares | |||||
Reconciliation of Treasury Shares, shares | (218,785) | ||||
Distribution to Non-Controlling Interests | (346,342) | (346,342) | |||
Ending balance, value at Jul. 31, 2023 | $ 7,170,894 | $ (643,280) | $ 6,527,614 | $ (2,953,081) | $ 3,574,533 |
Ending balance, shares at Jul. 31, 2023 | 8,953,587 | 35,217 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Consolidated Net Income | $ 531,825 | $ 629,345 |
Adjustments to Reconcile Consolidated Net Income to Net Cash Provided By Operating Activities: | ||
Oher Notes Payable Correction | 18,883 | |
PPP Loan Forgiveness | ||
Employee Retention Credit | 1,123,048 | (701,582) |
Stock-Based Compensation | 23,147 | 13,173 |
Depreciation | 334,786 | 344,436 |
Changes in Assets and Liabilities: | ||
Accounts Receivable | (68,299) | 38,744 |
Income Tax Receivable | ||
Prepaid Expenses and Other Assets | (187,521) | (139,772) |
Operating Lease | (2,296) | (82,836) |
Finance Lease | (1,284) | (570) |
Accounts Payable and Accrued Expenses | (314,522) | 9,177 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,438,884 | 128,998 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Improvements and Additions to Hotel Properties | (247,194) | (116,599) |
Payments on Investments in Unigen | (30,000) | (125,000) |
NET CASH USED IN INVESTING ACTIVITIES | (277,194) | (241,599) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal Payments on Mortgage Notes Payable | (111,605) | (80,977) |
Borrowings on Mortgage Notes Payable | 3,901,484 | |
Lendings on Notes Receivable - Related Party | ||
Payments on Notes Payable - Related Party | (1,955,093) | |
Borrowings on Note Payable - Related Party | 977,546 | |
Payments on Other Notes Payable | (100,000) | (14,901) |
Borrowings on Other Notes Payable | ||
Payment of Dividends | (90,062) | (91,175) |
Distributions to Non-Controlling Interest Holders | (346,342) | (433,718) |
Sale of Ownership Interest in Subsidiary, net | (30,000) | |
Repurchase of Treasury Stock | (226,180) | (161,400) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (874,189) | 2,111,766 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 287,501 | 1,999,165 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 2,111,383 | 1,224,380 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 2,398,884 | $ 3,223,545 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 6 Months Ended |
Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION As of July 31, 2023, InnSuites Hospitality Trust (the “Trust”, “IHT”, “we”, “us” or “our”) is a publicly traded unincorporated Ohio real estate investment trust (REIT) with two hotels that IHT has an ownership interest in and manages. The Trust and its shareholders directly in and through a Partnership, own interests in two hotels with an aggregate of 270 hotel suites in Arizona and New Mexico. Both are operated under the federally trademarked name “InnSuites”, as well as operating under the brand name “Best Western”. The Trust and its shareholders hold a diversification $ 1 6 618,750 525,000 Hotel Operations: Our Tucson, Arizona Hotel and our Hotel located in Albuquerque, New Mexico are moderate service hotels. Both hotels offer swimming pools, fitness centers, business centers, and complimentary breakfast. In addition the Hotels offer complementary social areas and modest conference facilities. The Tucson hotel has “PJ’s” Pub and Café, as well. The Trust is the sole general partner of RRF Limited Partnership, a Delaware limited partnership (the “Partnership”), and owned a 75.98 75.98 51.01 21 RRF Limited Partnership, a subsidiary, manages the Hotels’ daily operations under 2 management agreements. The Trust also provides the use of the “InnSuites” trademark to the Hotels. All expenses and reimbursements between the Trust and RRF Partnership have been eliminated in consolidation. The Trust classified the Hotels as operating assets, but these assets are available for sale. At this time, the Trust is unable to predict when, and if, either of these will be sold. Neither the Tucson Hotel nor the Albuquerque Hotel is currently listed for sale but the Trust is willing to consider offers for each Hotel. Each of the Hotels is being made available at a price that management believes is reasonable in relation to its current fair market value, earnings, profits, and replacement cost. PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION These unaudited condensed consolidated financial statements have been prepared by management in accordance with accounting principles in conformity with accounting principles generally accepted in the United States of America (“GAAP”), and include all assets, liabilities, revenues and expenses of the Trust and its subsidiaries. All material intercompany transactions and balances have been eliminated. Certain items have been reclassified to conform to the current fiscal year presentation. The Trust exercises unilateral control over the Partnership and the entities listed below. Therefore, the unaudited condensed financial statements of the Partnership and the entities listed below are consolidated with the Trust, and all significant intercompany transactions and balances have been eliminated. SCHEDULE OF ENTITY OWNERSHIP PERCENTAGE IHT OWNERSHIP % ENTITY DIRECT INDIRECT (i) Albuquerque Suite Hospitality, LLC 21.50 % - Tucson Hospitality Properties, LLLP - 51.01 % RRF Limited Partnership 75.98 % - (i) Indirect ownership is through the Partnership PARTNERSHIP AGREEMENT The Partnership Agreement of the Partnership provides for the issuance of two classes of Limited Partnership units, Class A and Class B. Class A and Class B Partnership units are identical in all respects. On July 31, 2023 and January 31, 2023, 200,003 1.51 2,974,038 22.51 3,174,041 10,037,476 75.98 LIQUIDITY The Trust’s principal source of cash to meet its cash requirements is revenues from hotel room reservations and from RRF Management fees from the Tucson, Arizona and Albuquerque, New Mexico properties. The Trust’s liquidity, including our ability to make distributions to its shareholders, and to service debt, will depend upon the ability of the Trust and the Partnership’s ability to generate sufficient cash flow from hotel operations, as well as to generate funds from repayment of intercompany advances and sale of assets. At a future date, the Trust may receive cash from hotel and energy operations and/or full or partial sale of one or both hotels, and/or full or partial sale of its UniGen diversification investment. As of July 31, 2023, the Trust had a related party Demand/Revolving Line of Credit/Promissory Note with an amount payable of approximately $ 0 7.0 2,000,000 2,000,000 As of July 31, 2023, the Trust had three Revolving lines of Credit totaling $ 250,000 With approximately $ 2,399,000 2,250,000 2,000,000 250,000 There can be no assurance that the Trust will be successful selling properties, merging, or raising additional or replacement funds, or that these funds may be available on terms that are favorable to it. If the Trust is unable to raise additional or replacement funds, it may be required to sell or refinance certain of our assets to meet liquidity needs, which may not be on terms that are favorable. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by the Trust in accordance with Generally Accepted Accounting Principles (“GAAP”), for interim financial information, and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statement presentation. However, the Trust believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended July 31, 2023 are not necessarily indicative of the results that may be expected for the Fiscal Year ending January 31, 2024. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Trust’s Annual Report on Form 10-K for the year ended January 31, 2023. The Trust has evaluated subsequent events through the date of the filing of its Form 10-Q with the Securities and Exchange Commission. Other than those events disclosed including the recovery of economic and business activity, the Company is not aware of any other significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on the Trust’s financial statements. As the general partner of the Partnership, the Trust exercises unilateral control over the Partnership. Therefore, the financial statements of the Partnership are consolidated with the Trust, and all significant intercompany transactions and balances have been eliminated. Under Accounting Standards Codification (“ASC”) Topic 810-10-25, Albuquerque Suite Hospitality, LLC has been determined to be a variable interest entity with the Partnership as the primary beneficiary (see Note 4 – “Variable Interest Entity”). Therefore, the financial statements of Albuquerque Suite Hospitality, LLC, are consolidated with the Trust, and all significant intercompany transactions and balances have been eliminated. The financial statements of the Partnership and Tucson Hospitality Properties, LLLP are consolidated with the Partnership and the Trust, and all significant intercompany transactions and balances have been eliminated. SEASONALITY OF THE HOTEL BUSINESS The Hotels’ operations historically have been somewhat seasonal. The Tucson Arizona Hotel historically experiences the highest occupancy in the first Fiscal Quarter (the winter high season) and, to a lesser extent, the fourth Fiscal Quarter. The second Fiscal Quarter (summer low season) historically tends to be the lowest occupancy period at this Arizona Hotel. This seasonality pattern can be expected to cause fluctuations in the Trust’s quarterly revenues. The Hotel located in Albuquerque, New Mexico historically experiences its most profitable periods during the second and third Fiscal Quarters (the summer high season), providing some balance to the general seasonality of the Trust’s hotel business. The seasonal nature of the Trust’s business increases its vulnerability to risks such as travel disruptions, labor force shortages and cash flow issues. Further, if an adverse event such as an actual or threatened virus pandemic, terrorist attack, international conflict, data breach, regional economic downturn or poor weather should occur at either of its two hotels, the adverse impact to the Trust’s revenues and profit could be significant. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the audited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Trust’s operations are affected by numerous factors, including the economy, inflation, virus/pandemic, competition in the hotel industry and the effect of the economy on the travel and hospitality industries. The Trust cannot predict if any of the above items will have a significant impact in the future, nor can it predict what impact, if any, the occurrence of these or other events might have on the Trust’s operations and cash flows. Significant estimates and assumptions made by management include, but are not limited to, the estimated useful lives of long-lived assets and recoverability of long-lived assets and the fair values of the long-lived assets. PROPERTY AND EQUIPMENT Furniture, fixtures, building and improvements and hotel properties are stated at cost, except for land, and depreciated using the straight-line method over estimated lives ranging up to 40 3 10 Land is an indefinite-lived asset. The Trust tests its land for impairment annually, or whenever events or changes in circumstances indicates an impairment may have occurred, by comparing its carrying value to its implied fair value. For tax purposes the Trust takes advantage of accelerated depreciation methods (MACRS) for new capital additions and improvements to its Hotels. Management applies guidance ASC 360-10-35, to determine when it is required to test an asset for recoverability of its carrying value and whether, or not, an impairment exists. Under ASC 360-10-35, the Trust is required to test a long-lived asset for impairment when there is an indicator of impairment. Impairment indicators may include, but are not limited to, a drop in the performance of a long-lived asset, a decline in the hospitality industry or a decline in the economy. If an indicator of potential impairment is present, then an assessment is performed of whether the carrying amount of an asset exceeds its estimated undiscounted future cash flows over its estimated remaining life. If the estimated undiscounted future cash flows over the asset’s estimated remaining life are greater than the asset’s carrying value, no impairment is recognized; however, if the carrying value of the asset exceeds the estimated undiscounted future cash flows, then the Trust would recognize an impairment expense to the extent the asset’s carrying value exceeds its fair value, if any. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance, and may differ from actual cash flows. Long-lived assets evaluated for impairment are analyzed on a property-specific basis independent of the cash flows of other groups of assets. Evaluation of future cash flows is based on historical experience and other factors, including certain economic conditions, and committed future bookings. Management has determined that no further impairment is required of long-lived assets for the fiscal period ended July 31, 2023. CASH The Trust believes it places its cash only with high credit quality financial institutions, although these balances periodically exceed federally insured limits. REVENUE RECOGNITION Hotel and Operations Revenues are primarily derived from the sources below and are recognized as services are rendered and when collectability is reasonably assured. Amounts received in advance of revenue recognition are considered deferred liabilities and are generally not significant. Revenues primarily consist of room rentals, food and beverage sales, management and trademark fees and other miscellaneous revenues from our properties. Revenues are recorded when rooms are occupied and when food and beverage sales are delivered. Management and trademark fees include a monthly accounting fee and a percentage of hotel room revenues for managing the daily operations of the Hotels. Each room night consumed by a guest with a cancellable reservation represents a contract whereby the Trust has a performance obligation to provide the room night at an agreed upon price. For cancellable reservations, the Trust recognizes revenue as each performance obligation (i.e., each room night) is met. Such contract is renewed if the guest continues their stay. For room nights consumed by a guest with a non-cancellable reservation, the entire reservation period represents the contract term whereby the Trust has a performance obligation to provide the room night or nights at an agreed upon price. For non-cancellable reservations, the Trust recognizes revenue over the term of the performance period (i.e., the reservation period) as room nights are consumed. For these reservations, the room rate is typically fixed over the reservation period. The Trust uses an output method based on performance completed to date (i.e., room nights consumed) to determine the amount of revenue it recognizes on a daily basis if the length of a non-cancellable reservation exceeds one night since consumption of room nights indicates when services are transferred to the guest. In certain instances, variable consideration may exist with respect to the transaction price, such as discounts, coupons and price concessions made upon guest checkout. In evaluating its performance obligation, the Trust bundles the obligation to provide the guest the room itself with other obligations (such as free Wi-Fi, complimentary breakfast, and high speed internet), as the other obligations are not distinct and separable because the guest cannot benefit from the additional amenities without the consumed room night. The Trust’s obligation to provide the additional items or services is not separately identifiable from the fundamental contractual obligation (i.e., providing the room and its contents). The Trust has no performance obligations once a guest’s stay is complete. We are required to collect certain taxes and fees from customers on behalf of government agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in revenues. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. ACCOUNTS RECEIVABLES AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable are derived from guest stays and other reservations at the Hotels. Accounts receivable are carried at original amounts billed less an estimate made for doubtful accounts based on a review of outstanding amounts on a quarterly basis. Management generally records an allowance for doubtful accounts for 50 100 0 LEASE ACCOUNTING The Trust determines, at the inception of a contract, if the arrangement is a lease and whether it meets the classification criteria for a finance or operating lease. Right of Use (ROU), assets represent the Trust’s right to use an underlying asset during the lease term and lease liabilities represent the Trust’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. ROU assets also include any advance lease payments and exclude lease incentives. As most of the Trust’s operating leases do not provide an implicit rate, the Trust uses its incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Operating fixed lease expense and finance lease depreciation expense are recognized on a straight-line basis over the lease term (see Note 14). TRUSTEE STOCK-BASED COMPENSATION The Trust has an employee equity incentive plan, which is described more fully in Note 15 - “Share-Based Payments.” The three independent members of the Board of Trustees each earn 9,000 TREASURY STOCK Treasury stock is carried at cost, including any brokerage commissions paid to repurchase the shares. Any shares issued from treasury stock are removed at cost, with the difference between cost and fair value at the time of issuance recorded against Shares of Beneficial Interest. InnSuites Hospitality Trust continues its Company Stock Buyback Plan allowed within the NYSE American limitations. NET INCOME PER SHARE Basic and diluted net income per Share of Beneficial Interest is computed based on the weighted-average number of Shares of Beneficial Interest and potentially dilutive securities outstanding during the period. Dilutive securities are limited to the Class A and Class B units of the Partnership, which are convertible into 3,174,041 For the six months ended July 31, 2023 and 2022, there were Class A and Class B Partnership units outstanding, which are convertible into Shares of Beneficial Interest of the Trust. Assuming conversion at the beginning of each period, the aggregate weighted-average of these Shares of Beneficial Interest would have been 3,174,041 ADVERTISING COSTS Amounts incurred for advertising costs are expensed as incurred. Advertising expense for operations totaled approximately $ 83,000 62,000 165,000 171,000 CONCENTRATION OF CREDIT RISK Credit risk is the risk of an unexpected loss if a third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Trust to a concentration of credit risk consist primarily of cash and cash equivalents. Management’s assessment of the Trust’s credit risk for cash and cash equivalents is low as cash and cash equivalents are held in financial institutions believed to be credit worthy. The Trust limits its exposure to credit loss by placing its cash with various major financial institutions and invests only in short-term obligations. While the Trust is exposed to credit losses due to the non-performance of its counterparties, the Trust considers the risk of this remote. The Trust estimates its maximum credit risk for accounts receivable at the amount recorded on the balance sheet. FAIR VALUE OF FINANCIAL INSTRUMENTS For disclosure purposes, fair value is determined by using available market information and appropriate valuation methodologies. Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. The fair value framework specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The fair value hierarchy levels are as follows: ● Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. ● Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and / or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are level 2 valuation techniques. ● Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect a company’s own judgments about the assumptions that market participants would use in pricing an asset or liability. The Trust has assets that are carried at fair value on a recurring basis, including stock and warrants in a 3 rd Due to their short maturities, the carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value. The fair value of mortgage notes payable, notes payable to banks and notes and advances payable to related parties is estimated by using the current rates which would be available for similar loans having the same remaining maturities and are based on level 3 inputs. CONVERTIBLE NOTE RECEIVABLE, COMMON STOCK AND WARRANTS IN UNIGEN POWER, INC. On December 16, 2019 the Trust entered into a Convertible Debenture Purchase Agreement with UniGen Power Inc. (“UniGen”). The Trust purchased secured convertible debentures (“Debentures”) in the aggregate amount of $ 1,000,000 6 15,000 1,000,000 1.00 UniGen issued the Trust common stock purchase warrants (the “Debenture Warrants”) to purchase up to 1,000,000 1.00 UniGen also issued the Trust additional common stock purchase warrants (“Additional Warrants”) to purchase up to 500,000 2.25 IHT may fund at IHT’s sole discretion a $ 500,000 500,000 1 The total of all stock ownership upon conversion of the note receivable is 1 3 25 On the Trust’s balance sheet, the investment of the $ 1,000,000 700,000 300,000 The value of the warrants issued with the note receivable was based on Black-Scholes pricing model based on the following inputs: Debenture Warrants SCHEDULE OF WARRANTS VALUATION ASSUMPTIONS Type of option Call option Stock price $ 2.25 Exercise (Strike) price $ 1.00 Time to maturity (years) 2.0 Annualized risk-free rate 1.630 % Annualized volatility 27.43 % Additional Warrants Type of option Call option Stock price $ 2.25 Exercise (Strike) price $ 2.25 Time to maturity (years) 3.0 Annualized risk-free rate 1.630 % Annualized volatility 27.43 % If all notes are converted and all available but not outstanding warrants exercised, IHT could hold up to approximately 25 During the year ended January 31, 2023, the Trust reinvested $ 60,000 60,000 60,000 161,250 255,000 161,250 During the Second Fiscal Quarter (May 1, 2023 to July 31, 2023), three months ended July 31, 2023, the Trust reinvested $ 15,000 15,000 15,000 As of July 31, 2023, IHT held 525,000 618,750 UniGen Power Inc. management reports the following progress of the InnSuites Hospitality Trust (IHT) efficient clean energy innovation diversification investment: 1. Despite travel and supply chain disruptions including “reshoring” of a portion of UniGen parts, UniGen management continues to make progress on completing the UPI 1000TA first prototype to be assembled within the next year. In early 2023, with prototype engineering complete, UniGen paused engineering to raise additional capital with strong initial interest. 2. Due to global travel and economic events, an increasingly unreliable American power grid, increasing demand for electric vehicles, inflation, and supply chain pressures, the UniGen marketing team estimates product’s market has grown, and has increased the MSP planned power plant price. The initial order for thirty units has been reaffirmed. 3. UniGen is currently seeking an investor for its next round of financing, to complete the prototype to get assembled, and then ready for testing. James Wirth (President) and Marc Berg (Executive Vice President) both lack significant control. They have two of the seven Board of Directors seats or 28 The Trust has valued UniGen investment as a level 3 fair value measurement, for the following reasons: The investment does not qualify for level 1 since there are no identical actively traded instruments or level 2 identical or similar unobservable markets. |
OWNERSHIP INTERESTS IN ALBQUERQ
OWNERSHIP INTERESTS IN ALBQUERQUE AND TUCSON SUBSIDIARIES | 6 Months Ended |
Jul. 31, 2023 | |
Ownership Interests In Albquerque And Tucson Subsidiaries | |
OWNERSHIP INTERESTS IN ALBQUERQUE AND TUCSON SUBSIDIARIES | 3. OWNERSHIP INTERESTS IN ALBQUERQUE AND TUCSON SUBSIDIARIES The Trust has sold non-controlling interests in certain subsidiaries, including Albuquerque Suite Hospitality, LLC (the “Albuquerque entity”) and Tucson Hospitality Properties, LLLP (the “Tucson entity, which sales are described in detail in our Annual Report on Form 10-K filed on May 1, 2023 with the Securities and Exchange Commissions. Generally, interests have sold for $ 10,000 50.1 700 On February 15, 2017, the Trust and Partnership entered into a restructuring agreement with Rare Earth Financial, LLC (“REF”) to allow for the sale of non-controlling partnership units in Albuquerque Suite Hospitality LLC (“Albuquerque”) for $ 10,000 0 10,000 On October 1, 2013, the Partnership entered into an updated restructured limited partnership agreement with Rare Earth to allow for the sale of additional interest units in the Tucson entity for $ 10,000 160 200 50.1 700 For the Albuquerque entity, three Class A units were sold back to the Trust during the Fiscal Year ended January 31, 2023 for $ 30,000 21.50 129 0.17 1 78.33 470 For the Tucson entity, as of April 30, 2023 and January 31, 2023, respectively, the Partnership held a 51.01 404 0.38 3 48.61 385 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | 4. VARIABLE INTEREST ENTITIES Management evaluates the Trust’s explicit and implicit variable interests to determine if they have any interests in variable interest entities (“VIEs”). Variable interests are contractual, ownership, or other pecuniary interests in an entity whose value changes with changes in the fair value of the entity’s net assets, exclusive of variable interests. Explicit variable interests are those which directly absorb the variability of a VIE and can include contractual interests such as loans or guarantees as well as equity investments. An implicit variable interest acts the same as an explicit variable interest except it involves the absorbing of variability indirectly, such as through related party arrangements or implicit guarantees. The analysis includes consideration of the design of the entity, its organizational structure, including decision making ability over the activities that most significantly impact the VIE’s economic performance. GAAP requires a reporting entity to consolidate a VIE when the reporting entity has a variable interest, or combination of variable interest, that provides it with a controlling financial interest in the VIE. The entity that consolidates a VIE is referred to as the primary beneficiary of that VIE. The Partnership has determined that the Albuquerque entity is a variable interest entity with the Partnership as the primary beneficiary with the ability to exercise control, as determined under the guidance of ASC Topic 810-10-25. In its determination, management considered the following qualitative and quantitative factors: a) The Partnership, Trust, and their related parties, which share common ownership and management, have guaranteed material financial obligations of the Albuquerque hotel, including. b) The Partnership, Trust and their related parties have maintained, as a group, a controlling ownership interest in the Albuquerque hotel, with the largest ownership belonging to the Trust. c) The Partnership, Trust and their related parties have maintained control over the decisions which most impact the financial performance of the Albuquerque hotel, including providing the personnel to operate the property daily. During the six months ended July 31, 2023 and the fiscal year ended January 31, 2023, neither the Trust nor the Partnership have provided any implicit or explicit financial support for which they were not previously contracted. Both the Partnership and the Trust provided mortgage loan guarantees which allow our properties to obtain new financing as needed, including the refinance of the Tucson Hotel on March 29, 2022. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jul. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 5. PROPERTY AND EQUIPMENT As of July 31, 2023, and January 31, 2023, hotel properties consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT HOTEL SEGMENT July 31, 2023 January 31, 2023 Land $ 2,500,000 $ 2,500,000 Building and improvements 10,905,364 10,762,859 Furniture, fixtures and equipment 4,366,089 4,261,400 Total hotel properties 17,771,453 17,524,259 Total property, plant and equipment 17,771,453 17,524,259 Less accumulated depreciation (10,688,421 ) (10,358,060 ) Hotel properties, net 7,083,032 7,166,199 Property, Plant and equipment, net 7,083,032 7,166,199 As of July 31, 2023, and January 31, 2023, corporate property, plant, and equipment consisted of the following: CORPORATE PP&E July 31, 2023 January 31, 2023 Land $ 7,005 $ 7,005 Building and improvements 75,662 75,662 Furniture, fixtures and equipment 392,878 392,878 Total property, plant and equipment 475,545 475,545 Less accumulated depreciation (436,681 ) (432,256 ) Property, Plant and Equipment, net $ 38,864 $ 43,289 |
MORTGAGE NOTES PAYABLE
MORTGAGE NOTES PAYABLE | 6 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
MORTGAGE NOTES PAYABLE | 6. MORTGAGE NOTES PAYABLE On March 29, 2022 Tucson Hospitality Properties LLLP, 51 8.4 4.5 3.8 4.99 25 As of July 31, 2023, and January 31, 2023, the mortgage loan balance was approximately $ 8,135,000 8,224,000 49,778 On December 2, 2019, Albuquerque Suites Hospitality, LLC entered into a $ 1.4 December 2, 2029 4.90 3.5 4.90 1,228,000 11,000 9,217 |
NOTES PAYABLE AND NOTES RECEIVA
NOTES PAYABLE AND NOTES RECEIVABLE – RELATED PARTY | 6 Months Ended |
Jul. 31, 2023 | |
Notes Payable And Notes Receivable Related Party | |
NOTES PAYABLE AND NOTES RECEIVABLE – RELATED PARTY | 7. NOTES PAYABLE AND NOTES RECEIVABLE – RELATED PARTY On December 1, 2014, the Trust entered a Demand/Revolving Line of Credit/Promissory Note with Rare Earth Financial, LLC, an entity which is wholly owned by Mr. Wirth and his family members. The Demand/Revolving Line of Credit/Promissory Note, as amended on June 19, 2017, bears interest at 7.0 2,000,000 0 0 0 |
OTHER NOTES PAYABLE
OTHER NOTES PAYABLE | 6 Months Ended |
Jul. 31, 2023 | |
Other Notes Payable | |
OTHER NOTES PAYABLE | 8. OTHER NOTES PAYABLE As of July 31, 2023, the Trust had approximately $ 0 0 7 January 2023 As of July 31, 2023, the Trust had a $ 200,000 4.5 200,000 On July 1, 2019, the Trust and the Partnership together entered into an unsecured loan totaling $ 270,000 4.5 The loan has been subsequently extended to December 2024. 270,000 See Note 9 – “Minimum Debt Payments” for scheduled minimum payments on the debt liabilities. |
MINIMUM DEBT PAYMENTS
MINIMUM DEBT PAYMENTS | 6 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
MINIMUM DEBT PAYMENTS | 9. MINIMUM DEBT PAYMENTS Scheduled minimum payments of debt, net of debt discounts, as of April 30, 2023 are approximately as follows in the respective Fiscal Years indicated: SCHEDULE OF MINIMUM PAYMENTS OF DEBT FISCAL YEAR MORTGAGES OTHER NOTES PAYABLE NOTES PAYABLE - RELATED PARTY TOTAL 2024 111,308 470,000 - 581,308 2025 234,169 - - 234,169 2026 247,906 - - 247,906 2027 260,999 - - 260,999 2028 263,125 - - 263,125 Thereafter 8,245,892 - 8,245,892 $ 9,363,399 $ 470,000 $ - $ 9,833,399 |
DESCRIPTION OF BENEFICIAL INTER
DESCRIPTION OF BENEFICIAL INTERESTS | 6 Months Ended |
Jul. 31, 2023 | |
Description Of Beneficial Interests | |
DESCRIPTION OF BENEFICIAL INTERESTS | 10. DESCRIPTION OF BENEFICIAL INTERESTS Holders of the Trust’s Shares of Beneficial Interest are entitled to receive dividends when and if declared by the Board of Trustees of the Trust out of funds legally available. The holders of Shares of Beneficial Interest, upon any liquidation, dissolution or winding-down of the Trust, are entitled to share ratably in any assets remaining after payment in full of all liabilities of the Trust. The Shares of Beneficial Interest possess ordinary voting rights, each share entitling the holder thereof to one vote. Holders of Shares of Beneficial Interest do not have cumulative voting rights in the election of Trustees and do not have preemptive rights. For the six months ended July 31, 2023 and 2022, the Trust repurchased 53,159 0 3.04 0 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jul. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 11. RELATED PARTY TRANSACTIONS As of July 31, 2023, and January 31, 2023, Mr. Wirth and his affiliates held 2,974,038 22.51 6,250,296 6,228,296 69.81 69.12 As of July 31, 2023, and January 31, 2023, the Trust owned 75.98 51.01 21.50 The Trust directly manages the Hotels through the Trust’s majority-owned subsidiary, RRF Limited Partnership. Under the management agreements, RRF manages the daily operations of both Trust Hotels. All Trust managed Hotel expenses, revenues and reimbursements among the Trust, and the Partnership have been eliminated in consolidation. The management fees for the Hotels are 5 2,000 The Trust employs part time, an immediate family member of Mr. Wirth, Brian James Wirth, who provides part time IT Technology support services to the Trust, receiving approximately $ 37,000 |
STATEMENTS OF CASH FLOWS, SUPPL
STATEMENTS OF CASH FLOWS, SUPPLEMENTAL DISCLOSURES | 6 Months Ended |
Jul. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
STATEMENTS OF CASH FLOWS, SUPPLEMENTAL DISCLOSURES | 12. STATEMENTS OF CASH FLOWS, SUPPLEMENTAL DISCLOSURES The Trust paid $ 250,000 240,000 0 0 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Restricted Cash: The Trust is obligated under a loan agreement relating to the Tucson Oracle property to deposit 4 0 Membership Agreements: The Tucson and Albuquerque Hotels have entered into membership agreements with Best Western International, Inc. (“Best Western”) for both hotel properties. In exchange for use of the Best Western name, trademark and reservation system, all Hotels pay fees to Best Western based on reservations received through the use of the Best Western reservation system and the number of available suites at the Hotels. The agreements with Best Western have no specific expiration terms and may be cancelled annually by either party. Best Western requires that the hotels meet certain requirements for room quality. The two Best Western Hotels receive significant reservations through the Best Western reservation system, and through Online Travel Agent (OTA) reservations systems, Expedia and Booking.com. Under these arrangements, fees paid for membership fees and reservations were approximately $ 97,000 93,000 Litigation: The Trust is involved from time to time in various other claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Trust’s consolidated financial position, results of operations or liquidity. The nature of the operations of the Hotels exposes them to risks of claims and litigation in the normal course of their business. Although the outcome of these matters cannot be determined and is covered by insurance, management does not expect that the ultimate resolution of these matters will have a material adverse effect on the consolidated financial position, results of operations or liquidity of the Trust. Indemnification: The Trust has entered into indemnification agreements with all our executive officers and Trustees. The agreements provide for indemnification against all liabilities and expenses reasonably incurred by an officer or Trustee in connection with the defense or disposition of any suit or other proceeding, in which he or she may be involved or with which he or she may be threatened, while in office or thereafter, because of his or her position at the Trust. There is no indemnification for any matter as to which an officer or Trustee is adjudicated to have acted in bad faith, with willful misconduct or reckless disregard of his or her duties, with gross negligence, or not in good faith in the reasonable belief that his or her action was in the Trust’s best interests. These agreements require the Trust, among other things, to indemnify the Trustee or officer against specified expenses and liabilities, such as attorneys’ fees, judgments, fines and settlements, paid by the individual in connection with any action, suit or proceeding arising out of the individual’s status or service as our Trustee or officer, other than liabilities arising from willful misconduct or conduct that is knowingly fraudulent or deliberately dishonest, and to advance expenses incurred by the individual in connection with any proceeding against the individual with respect to which the individual may be entitled to indemnification by us. The Trust may advance payments in connection with indemnification under the agreements. The level of indemnification is to the full extent of the net equity based on appraised and/or market value of the Trust. Historically, the Trust has not incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities in the accompanying consolidated balance sheets. See Note 14 – Leases, for discussion on lease payment commitments. |
LEASES
LEASES | 6 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
LEASES | 14. LEASES The Trust has operating leases for its corporate offices in Phoenix, Arizona and land leased in Albuquerque, New Mexico, and a cable equipment finance lease in Tucson, Arizona. The Trust’s corporate office lease is month to month. All leases are non-cancelable. Operating Leases The Trust holds a month to month office lease agreement with Northpoint Properties for a commercial office lease at 1730 E Northern Ave, Suite 122, Phoenix, Arizona 85020. Base monthly rent is $ 4,318 The Trust’s Albuquerque Hotel is subject to non-cancelable ground lease. The Albuquerque Hotel non-cancelable ground lease was extended on January 14, 2014 and expires in 2058. The following table presents the Trust’s lease costs for the six months ended July 31, 2023: SCHEDULE OF LEASE COSTS Six Months Ended July 31, 2023 Operating Lease Costs: Operating lease cost* 29,727 * Short term lease costs were immaterial. Supplemental cash flow information is as follows: SCHEDULE OF CASH FLOW INFORMATION Six Months Ended July 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (2,296 ) Lease obligations: Operating leases, net $ 2,267,644 Long-term obligations $ 2,249,072 Weighted average remaining lease terms and discount rates were as follows: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES Weighted average remaining lease term (years) July 31, 2023 Operating leases 34 Weighted average discount rate 4.85 % Operating leases The aggregate future lease payments for Operating Lease Liability as of July 31, 2022 are as follows: SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASE For the Twelve Months Ended July 31, 2024 $ 67,171 2025 134,355 2026 134,367 2027 134,379 2028 134,391 Thereafter 4,127,257 Total minimum lease payments $ 4,731,920 Less: amount representing interest 2,464,276 Total present value of minimum payments 2,267,644 Less: current portion $ 18,572 Long term portion of operating lease liability 2,249,072 Finance Leases The Company’s Tucson Oracle Hotel is subject to non-cancelable cable lease. The Tucson Oracle Hotel non-cancelable cable lease expires in 2023. The following table presents the Company’s lease costs for the three months ended July 31, 2023: SCHEDULE OF LEASE COSTS Six Months Ended July 31, 2023 Finance Lease Costs: Amortization of right-of-use assets $ 13,874 Interest on lease obligations 402 Supplemental cash flow information is as follows: SCHEDULE OF CASH FLOW INFORMATION Six Months Ended July 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ (1,284 ) Lease obligations: Finance leases, net $ 7,718 Long-term obligations $ - Weighted average remaining lease terms and discount rates were as follows: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES Weighted average remaining lease term (years) July 31, 2023 Finance leases 1 Weighted average discount rate 4.85 % Finance leases The aggregate future lease payments for Finance Lease Liability as of July 31, 2023 are as follows: SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR FINANCE LEASE For the Twelve Months Ended January 31, 2024 7,781 Total minimum lease payments $ 7,781 Less: amount representing interest 62 Total present value of minimum payments 7,719 Less: current portion $ 7,718 Long term portion of finance lease liability - |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 6 Months Ended |
Jul. 31, 2023 | |
Equity [Abstract] | |
SHARE-BASED PAYMENTS | 15. SHARE-BASED PAYMENTS On May 15, 2023, the Trust’s Board of Trustees approved a grant to issue Officers, Trustees, and Key Employees totaling 46,000 55,200 See Note 2 – “Summary of Significant Accounting Policies” for information related to grants of restricted shares under “Stock-Based Compensation.” |
NOTES RECEIVEABLE
NOTES RECEIVEABLE | 6 Months Ended |
Jul. 31, 2023 | |
Notes Receiveable | |
NOTES RECEIVEABLE | 16. NOTES RECEIVEABLE Sale of IBC Hospitality Technologies; IBC Hotels LLC (IBC) On August 15, 2018 InnSuites Hospitality Trust (IHT) entered into a final sale agreement of its technology subsidiary, IBC Hotels LLC (IBC), to an unrelated third-party buyer (Buyer). As a part of the amended sale agreement, the Trust received a secured promissory note adjusted to the principal amount of $ 1,925,000 3.75 ● No interest accrued through May 2023, and no payments on the note receivable including principal and interest based on the extended time period are due through May 2023. ● Note is secured by (1) pledge of the Buyer’s interest in IBC, and (2) a security interest in all assets of IBC, provided IHT shall agree to subordinate such equity interest to commercially reasonable debt financing upon request. ● If IBC closes an equity transaction with net proceeds to IBC in excess of $2,500,000, IBC/Buyer shall pay or pre-pay to IHT an amount equal to (a) 50% of the net proceeds received by IBC and (b) 50% of the sum of the unpaid balance of the note and accrued interest accrued but unpaid interest thereon, as the date of receipt of the net proceeds by IBC ● The note matures on June 1, 2024. IHT is in discussions for a further extension/modification. ● Future payments on this note are shown in the table below. SCHEDULE OF FUTURE PAYMENTS OF DEBT FISCAL YEAR 2024 1,925,000 Total $ 1,925,000 ● Management’s evaluation of the current financial position of the Buyer, based on unaudited financial statements provided. ● Management’s best, conservative valuation of IBC’s assets, and their marketability, in the case of a default by the Buyer. ● The current and future impact of the COVID-19 pandemic, on the travel and hospitality industry, in which IBC’s reservation and booking technology operates. As of July 31, 2023, management evaluated the carrying value of the note determined no further impairment is needed at this time. This is detailed further with ongoing discussions of an extension, which allows time for IBC to benefit from the current rebound in the travel, hospitality services, and hotel industries currently being experienced. IHT has no managerial control nor does IHT have the ability to direct the operations or capital requirements of IBC as of August 1, 2018. IHT has no rights to any benefits or losses from IBC as of August 1, 2018. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 17. INCOME TAXES The Trust is taxed as a C-Corporation. The Trust’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Trust has from time to time received various IRS and state tax jurisdiction notices which the Trust is in the process of responding to in which management believes the notices are without merit and expect full remediation of all tax notices. The Trust and subsidiaries have deferred tax assets of $ 4.3 1.4 2.9 1.8 2.6 |
COVID-19 DISCLOSURE
COVID-19 DISCLOSURE | 6 Months Ended |
Jul. 31, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COVID-19 DISCLOSURE | 18. COVID-19 DISCLOSURE COVID-19 had a material detrimental impact on our business, financial results and liquidity, in Fiscal Year 2021, ended January 31, 2021. Its consequences had dramatically reduced travel and demand for hotel rooms, in Fiscal Year 2021. We believe that lodging demand and revenue level have now significantly recovered. In Fiscal Year 2022, ended January 31, 2022, and Fiscal Year 2023, starting February 1, 2022 and ending January 31, 2023, InnSuites and the travel industry showed a significant rebound. The start of Fiscal Year 2024, starting February 1, 2023 and ending January 31, 2024, has shown no material ill effects from the pandemic whatsoever. COVID-19 and its consequences previously reduced travel and demand for hotel rooms, which previously had an adverse impact our business, operations, and financial results. We believe that lodging demand and revenue level has now rebounded to near full recovery. The extent to which COVID-19 currently impacts our business, operations, and financial results, including the duration and magnitude of such effects, is diminished. The negative impact COVID-19 had on global and regional economies and economic activity, including the duration and magnitude of its impact on consumer discretionary spending has been reduced significantly, and its short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence is no longer considered a major factor for Fiscal Year 2024, (February 1, 2023 to January 31, 2024). |
OCCUPANCY TAX
OCCUPANCY TAX | 6 Months Ended |
Jul. 31, 2023 | |
Occupancy Tax | |
OCCUPANCY TAX | 19. OCCUPANCY TAX No occupancy tax assessments have transpired since September 2020. Management has assessed the materiality of the discrepancy on prior reported periods and has concluded it is qualitatively immaterial to the readers of our Consolidated Financial Statements. |
EMPLOYEE RETENTION TAX CREDIT
EMPLOYEE RETENTION TAX CREDIT | 6 Months Ended |
Jul. 31, 2023 | |
Employee Retention Tax Credit | |
EMPLOYEE RETENTION TAX CREDIT | 20. EMPLOYEE RETENTION TAX CREDIT The Trust is participating in Economic Relief through a Credit allowed for Entities that suffered financial hardship during the Covid-19 Pandemic, under the CARES (The Coronavirus Aid, Relief, and Economic Security) Act (2020), and The Consolidated Appropriations Act (2021). Both provided fast and direct economic assistance for American workers, families, small businesses, and industries, by the U.S. Department of the Treasury along with Congress. This Credit was available for all Entities impacted by the Virus and who paid Employment Taxes, while trying to remain solvent and viable. It is a fully refundable tax credit for Eligible Employers that paid employees to carry on a trade or business that was partially or fully suspended during any calendar year 2020; or that experienced significant decline in gross receipts during any calendar quarter in 2020, due to COVID-19. As a result of both legislative acts, the Trust is expected to be receiving a net of approximately $ 2.7 the Trust conservatively placed an amount equal to approximately 12% per Fiscal Quarter of this total as a Tax Credit Receivable and Tax Refund on the Balance Sheet and Income statement, respectively, for the year ended January 31, 2023. The Trust has further conservatively recognized an additional 12% approximately of the total anticipated Tax Credit receivable for the Quarter ended July 31, 2023 1.9 0.8 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jul. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS The Trust intends to maintain its current conservative dividend policy. The Trust currently is, and has, been paying two semi-annual dividends each Fiscal Year totaling $ 0.02 0.01 0.01 The Trust’s Management received communication from the NYSE-American on August 29, 2022, indicating IHT is fully compliant with all of the Continued Listing Standards Equity Requirements set forth in Part 10 of the NYSE American Company Guide, of the NYSE-American. Subsequent to the Fiscal Second Quarter ended July 31, 2023, the Trust repurchased 76,165 183,533 Hotel Operation results of the Albuquerque Hotel and the Tucson Hotel both achieved record results for the Fiscal Year ended January 31, 2023. Continued record results are expected for the two hotels, during Fiscal Year 2024, ending January 31, 2024. IHT reported a strong annual improvement of results in Fiscal Year 2023, (February 1, 2022, to January 31, 2023), with Net Income Attributable to Controlling Interests doubling, increasing by 106 523,171 254,144 0.06 0.03 0.03 7.5 11 6.7 1,439,437 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the audited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Trust’s operations are affected by numerous factors, including the economy, inflation, virus/pandemic, competition in the hotel industry and the effect of the economy on the travel and hospitality industries. The Trust cannot predict if any of the above items will have a significant impact in the future, nor can it predict what impact, if any, the occurrence of these or other events might have on the Trust’s operations and cash flows. Significant estimates and assumptions made by management include, but are not limited to, the estimated useful lives of long-lived assets and recoverability of long-lived assets and the fair values of the long-lived assets. |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Furniture, fixtures, building and improvements and hotel properties are stated at cost, except for land, and depreciated using the straight-line method over estimated lives ranging up to 40 3 10 Land is an indefinite-lived asset. The Trust tests its land for impairment annually, or whenever events or changes in circumstances indicates an impairment may have occurred, by comparing its carrying value to its implied fair value. For tax purposes the Trust takes advantage of accelerated depreciation methods (MACRS) for new capital additions and improvements to its Hotels. Management applies guidance ASC 360-10-35, to determine when it is required to test an asset for recoverability of its carrying value and whether, or not, an impairment exists. Under ASC 360-10-35, the Trust is required to test a long-lived asset for impairment when there is an indicator of impairment. Impairment indicators may include, but are not limited to, a drop in the performance of a long-lived asset, a decline in the hospitality industry or a decline in the economy. If an indicator of potential impairment is present, then an assessment is performed of whether the carrying amount of an asset exceeds its estimated undiscounted future cash flows over its estimated remaining life. If the estimated undiscounted future cash flows over the asset’s estimated remaining life are greater than the asset’s carrying value, no impairment is recognized; however, if the carrying value of the asset exceeds the estimated undiscounted future cash flows, then the Trust would recognize an impairment expense to the extent the asset’s carrying value exceeds its fair value, if any. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance, and may differ from actual cash flows. Long-lived assets evaluated for impairment are analyzed on a property-specific basis independent of the cash flows of other groups of assets. Evaluation of future cash flows is based on historical experience and other factors, including certain economic conditions, and committed future bookings. Management has determined that no further impairment is required of long-lived assets for the fiscal period ended July 31, 2023. |
CASH | CASH The Trust believes it places its cash only with high credit quality financial institutions, although these balances periodically exceed federally insured limits. |
REVENUE RECOGNITION | REVENUE RECOGNITION Hotel and Operations Revenues are primarily derived from the sources below and are recognized as services are rendered and when collectability is reasonably assured. Amounts received in advance of revenue recognition are considered deferred liabilities and are generally not significant. Revenues primarily consist of room rentals, food and beverage sales, management and trademark fees and other miscellaneous revenues from our properties. Revenues are recorded when rooms are occupied and when food and beverage sales are delivered. Management and trademark fees include a monthly accounting fee and a percentage of hotel room revenues for managing the daily operations of the Hotels. Each room night consumed by a guest with a cancellable reservation represents a contract whereby the Trust has a performance obligation to provide the room night at an agreed upon price. For cancellable reservations, the Trust recognizes revenue as each performance obligation (i.e., each room night) is met. Such contract is renewed if the guest continues their stay. For room nights consumed by a guest with a non-cancellable reservation, the entire reservation period represents the contract term whereby the Trust has a performance obligation to provide the room night or nights at an agreed upon price. For non-cancellable reservations, the Trust recognizes revenue over the term of the performance period (i.e., the reservation period) as room nights are consumed. For these reservations, the room rate is typically fixed over the reservation period. The Trust uses an output method based on performance completed to date (i.e., room nights consumed) to determine the amount of revenue it recognizes on a daily basis if the length of a non-cancellable reservation exceeds one night since consumption of room nights indicates when services are transferred to the guest. In certain instances, variable consideration may exist with respect to the transaction price, such as discounts, coupons and price concessions made upon guest checkout. In evaluating its performance obligation, the Trust bundles the obligation to provide the guest the room itself with other obligations (such as free Wi-Fi, complimentary breakfast, and high speed internet), as the other obligations are not distinct and separable because the guest cannot benefit from the additional amenities without the consumed room night. The Trust’s obligation to provide the additional items or services is not separately identifiable from the fundamental contractual obligation (i.e., providing the room and its contents). The Trust has no performance obligations once a guest’s stay is complete. We are required to collect certain taxes and fees from customers on behalf of government agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in revenues. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. |
ACCOUNTS RECEIVABLES AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | ACCOUNTS RECEIVABLES AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable are derived from guest stays and other reservations at the Hotels. Accounts receivable are carried at original amounts billed less an estimate made for doubtful accounts based on a review of outstanding amounts on a quarterly basis. Management generally records an allowance for doubtful accounts for 50 100 0 |
LEASE ACCOUNTING | LEASE ACCOUNTING The Trust determines, at the inception of a contract, if the arrangement is a lease and whether it meets the classification criteria for a finance or operating lease. Right of Use (ROU), assets represent the Trust’s right to use an underlying asset during the lease term and lease liabilities represent the Trust’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. ROU assets also include any advance lease payments and exclude lease incentives. As most of the Trust’s operating leases do not provide an implicit rate, the Trust uses its incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Operating fixed lease expense and finance lease depreciation expense are recognized on a straight-line basis over the lease term (see Note 14). |
TRUSTEE STOCK-BASED COMPENSATION | TRUSTEE STOCK-BASED COMPENSATION The Trust has an employee equity incentive plan, which is described more fully in Note 15 - “Share-Based Payments.” The three independent members of the Board of Trustees each earn 9,000 |
TREASURY STOCK | TREASURY STOCK Treasury stock is carried at cost, including any brokerage commissions paid to repurchase the shares. Any shares issued from treasury stock are removed at cost, with the difference between cost and fair value at the time of issuance recorded against Shares of Beneficial Interest. InnSuites Hospitality Trust continues its Company Stock Buyback Plan allowed within the NYSE American limitations. |
NET INCOME PER SHARE | NET INCOME PER SHARE Basic and diluted net income per Share of Beneficial Interest is computed based on the weighted-average number of Shares of Beneficial Interest and potentially dilutive securities outstanding during the period. Dilutive securities are limited to the Class A and Class B units of the Partnership, which are convertible into 3,174,041 For the six months ended July 31, 2023 and 2022, there were Class A and Class B Partnership units outstanding, which are convertible into Shares of Beneficial Interest of the Trust. Assuming conversion at the beginning of each period, the aggregate weighted-average of these Shares of Beneficial Interest would have been 3,174,041 |
ADVERTISING COSTS | ADVERTISING COSTS Amounts incurred for advertising costs are expensed as incurred. Advertising expense for operations totaled approximately $ 83,000 62,000 165,000 171,000 |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK Credit risk is the risk of an unexpected loss if a third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Trust to a concentration of credit risk consist primarily of cash and cash equivalents. Management’s assessment of the Trust’s credit risk for cash and cash equivalents is low as cash and cash equivalents are held in financial institutions believed to be credit worthy. The Trust limits its exposure to credit loss by placing its cash with various major financial institutions and invests only in short-term obligations. While the Trust is exposed to credit losses due to the non-performance of its counterparties, the Trust considers the risk of this remote. The Trust estimates its maximum credit risk for accounts receivable at the amount recorded on the balance sheet. |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS For disclosure purposes, fair value is determined by using available market information and appropriate valuation methodologies. Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. The fair value framework specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The fair value hierarchy levels are as follows: ● Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. ● Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and / or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are level 2 valuation techniques. ● Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect a company’s own judgments about the assumptions that market participants would use in pricing an asset or liability. The Trust has assets that are carried at fair value on a recurring basis, including stock and warrants in a 3 rd Due to their short maturities, the carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value. The fair value of mortgage notes payable, notes payable to banks and notes and advances payable to related parties is estimated by using the current rates which would be available for similar loans having the same remaining maturities and are based on level 3 inputs. |
CONVERTIBLE NOTE RECEIVABLE, COMMON STOCK AND WARRANTS IN UNIGEN POWER, INC. | CONVERTIBLE NOTE RECEIVABLE, COMMON STOCK AND WARRANTS IN UNIGEN POWER, INC. On December 16, 2019 the Trust entered into a Convertible Debenture Purchase Agreement with UniGen Power Inc. (“UniGen”). The Trust purchased secured convertible debentures (“Debentures”) in the aggregate amount of $ 1,000,000 6 15,000 1,000,000 1.00 UniGen issued the Trust common stock purchase warrants (the “Debenture Warrants”) to purchase up to 1,000,000 1.00 UniGen also issued the Trust additional common stock purchase warrants (“Additional Warrants”) to purchase up to 500,000 2.25 IHT may fund at IHT’s sole discretion a $ 500,000 500,000 1 The total of all stock ownership upon conversion of the note receivable is 1 3 25 On the Trust’s balance sheet, the investment of the $ 1,000,000 700,000 300,000 The value of the warrants issued with the note receivable was based on Black-Scholes pricing model based on the following inputs: Debenture Warrants SCHEDULE OF WARRANTS VALUATION ASSUMPTIONS Type of option Call option Stock price $ 2.25 Exercise (Strike) price $ 1.00 Time to maturity (years) 2.0 Annualized risk-free rate 1.630 % Annualized volatility 27.43 % Additional Warrants Type of option Call option Stock price $ 2.25 Exercise (Strike) price $ 2.25 Time to maturity (years) 3.0 Annualized risk-free rate 1.630 % Annualized volatility 27.43 % If all notes are converted and all available but not outstanding warrants exercised, IHT could hold up to approximately 25 During the year ended January 31, 2023, the Trust reinvested $ 60,000 60,000 60,000 161,250 255,000 161,250 During the Second Fiscal Quarter (May 1, 2023 to July 31, 2023), three months ended July 31, 2023, the Trust reinvested $ 15,000 15,000 15,000 As of July 31, 2023, IHT held 525,000 618,750 UniGen Power Inc. management reports the following progress of the InnSuites Hospitality Trust (IHT) efficient clean energy innovation diversification investment: 1. Despite travel and supply chain disruptions including “reshoring” of a portion of UniGen parts, UniGen management continues to make progress on completing the UPI 1000TA first prototype to be assembled within the next year. In early 2023, with prototype engineering complete, UniGen paused engineering to raise additional capital with strong initial interest. 2. Due to global travel and economic events, an increasingly unreliable American power grid, increasing demand for electric vehicles, inflation, and supply chain pressures, the UniGen marketing team estimates product’s market has grown, and has increased the MSP planned power plant price. The initial order for thirty units has been reaffirmed. 3. UniGen is currently seeking an investor for its next round of financing, to complete the prototype to get assembled, and then ready for testing. James Wirth (President) and Marc Berg (Executive Vice President) both lack significant control. They have two of the seven Board of Directors seats or 28 The Trust has valued UniGen investment as a level 3 fair value measurement, for the following reasons: The investment does not qualify for level 1 since there are no identical actively traded instruments or level 2 identical or similar unobservable markets. |
NATURE OF OPERATIONS AND BASI_2
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF ENTITY OWNERSHIP PERCENTAGE | SCHEDULE OF ENTITY OWNERSHIP PERCENTAGE IHT OWNERSHIP % ENTITY DIRECT INDIRECT (i) Albuquerque Suite Hospitality, LLC 21.50 % - Tucson Hospitality Properties, LLLP - 51.01 % RRF Limited Partnership 75.98 % - (i) Indirect ownership is through the Partnership |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF WARRANTS VALUATION ASSUMPTIONS | The value of the warrants issued with the note receivable was based on Black-Scholes pricing model based on the following inputs: Debenture Warrants SCHEDULE OF WARRANTS VALUATION ASSUMPTIONS Type of option Call option Stock price $ 2.25 Exercise (Strike) price $ 1.00 Time to maturity (years) 2.0 Annualized risk-free rate 1.630 % Annualized volatility 27.43 % Additional Warrants Type of option Call option Stock price $ 2.25 Exercise (Strike) price $ 2.25 Time to maturity (years) 3.0 Annualized risk-free rate 1.630 % Annualized volatility 27.43 % |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | As of July 31, 2023, and January 31, 2023, hotel properties consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT HOTEL SEGMENT July 31, 2023 January 31, 2023 Land $ 2,500,000 $ 2,500,000 Building and improvements 10,905,364 10,762,859 Furniture, fixtures and equipment 4,366,089 4,261,400 Total hotel properties 17,771,453 17,524,259 Total property, plant and equipment 17,771,453 17,524,259 Less accumulated depreciation (10,688,421 ) (10,358,060 ) Hotel properties, net 7,083,032 7,166,199 Property, Plant and equipment, net 7,083,032 7,166,199 As of July 31, 2023, and January 31, 2023, corporate property, plant, and equipment consisted of the following: CORPORATE PP&E July 31, 2023 January 31, 2023 Land $ 7,005 $ 7,005 Building and improvements 75,662 75,662 Furniture, fixtures and equipment 392,878 392,878 Total property, plant and equipment 475,545 475,545 Less accumulated depreciation (436,681 ) (432,256 ) Property, Plant and Equipment, net $ 38,864 $ 43,289 |
MINIMUM DEBT PAYMENTS (Tables)
MINIMUM DEBT PAYMENTS (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF MINIMUM PAYMENTS OF DEBT | Scheduled minimum payments of debt, net of debt discounts, as of April 30, 2023 are approximately as follows in the respective Fiscal Years indicated: SCHEDULE OF MINIMUM PAYMENTS OF DEBT FISCAL YEAR MORTGAGES OTHER NOTES PAYABLE NOTES PAYABLE - RELATED PARTY TOTAL 2024 111,308 470,000 - 581,308 2025 234,169 - - 234,169 2026 247,906 - - 247,906 2027 260,999 - - 260,999 2028 263,125 - - 263,125 Thereafter 8,245,892 - 8,245,892 $ 9,363,399 $ 470,000 $ - $ 9,833,399 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |
SCHEDULE OF LEASE COSTS | The following table presents the Trust’s lease costs for the six months ended July 31, 2023: SCHEDULE OF LEASE COSTS Six Months Ended July 31, 2023 Operating Lease Costs: Operating lease cost* 29,727 * Short term lease costs were immaterial. |
SCHEDULE OF CASH FLOW INFORMATION | Supplemental cash flow information is as follows: SCHEDULE OF CASH FLOW INFORMATION Six Months Ended July 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (2,296 ) Lease obligations: Operating leases, net $ 2,267,644 Long-term obligations $ 2,249,072 |
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES | Weighted average remaining lease terms and discount rates were as follows: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES Weighted average remaining lease term (years) July 31, 2023 Finance leases 1 Weighted average discount rate 4.85 % Finance leases |
SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASE | The aggregate future lease payments for Operating Lease Liability as of July 31, 2022 are as follows: SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASE For the Twelve Months Ended July 31, 2024 $ 67,171 2025 134,355 2026 134,367 2027 134,379 2028 134,391 Thereafter 4,127,257 Total minimum lease payments $ 4,731,920 Less: amount representing interest 2,464,276 Total present value of minimum payments 2,267,644 Less: current portion $ 18,572 Long term portion of operating lease liability 2,249,072 |
Finance Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
SCHEDULE OF LEASE COSTS | The following table presents the Company’s lease costs for the three months ended July 31, 2023: SCHEDULE OF LEASE COSTS Six Months Ended July 31, 2023 Finance Lease Costs: Amortization of right-of-use assets $ 13,874 Interest on lease obligations 402 |
SCHEDULE OF CASH FLOW INFORMATION | Supplemental cash flow information is as follows: SCHEDULE OF CASH FLOW INFORMATION Six Months Ended July 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ (1,284 ) Lease obligations: Finance leases, net $ 7,718 Long-term obligations $ - |
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES | Weighted average remaining lease terms and discount rates were as follows: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES Weighted average remaining lease term (years) July 31, 2023 Operating leases 34 Weighted average discount rate 4.85 % Operating leases |
SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR FINANCE LEASE | The aggregate future lease payments for Finance Lease Liability as of July 31, 2023 are as follows: SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR FINANCE LEASE For the Twelve Months Ended January 31, 2024 7,781 Total minimum lease payments $ 7,781 Less: amount representing interest 62 Total present value of minimum payments 7,719 Less: current portion $ 7,718 Long term portion of finance lease liability - |
NOTES RECEIVEABLE (Tables)
NOTES RECEIVEABLE (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Notes Receiveable | |
SCHEDULE OF FUTURE PAYMENTS OF DEBT | SCHEDULE OF FUTURE PAYMENTS OF DEBT FISCAL YEAR 2024 1,925,000 Total $ 1,925,000 |
SCHEDULE OF ENTITY OWNERSHIP PE
SCHEDULE OF ENTITY OWNERSHIP PERCENTAGE (Details) | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Mar. 29, 2022 | ||
Albuquerque Suite Hospitality, LLC [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
IHT ownership percentage | 21.50% | 21.50% | ||||
Albuquerque Suite Hospitality, LLC [Member] | Direct Ownership [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
IHT ownership percentage | 21.50% | |||||
Albuquerque Suite Hospitality, LLC [Member] | Indirect Ownership [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
IHT ownership percentage | [1] | |||||
Tucson Hospitality Properties, LLLP [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
IHT ownership percentage | 48.61% | 48.61% | 51% | |||
Tucson Hospitality Properties, LLLP [Member] | Direct Ownership [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
IHT ownership percentage | ||||||
Tucson Hospitality Properties, LLLP [Member] | Indirect Ownership [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
IHT ownership percentage | 51.01% | [1] | 51.01% | 51.01% | ||
RRF Limited Partnership [Member] | Direct Ownership [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
IHT ownership percentage | 75.98% | |||||
RRF Limited Partnership [Member] | Indirect Ownership [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
IHT ownership percentage | [1] | |||||
[1]Indirect ownership is through the Partnership |
NATURE OF OPERATIONS AND BASI_3
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2023 | |
Debt instrument interest rate | 7% | ||
Cash | $ 2,399,000 | ||
Related Party Demand/Revolving Line of Credit/Promissory Note [Member] | |||
Line of credit limit | 2,250,000 | ||
Line of credit advance to affiliate | 2,000,000 | ||
Trust [Member] | |||
Amount payable | 0 | ||
Line of credit amount | 250,000 | ||
Trust [Member] | Related Party Demand/Revolving Line of Credit/Promissory Note [Member] | |||
Line of credit limit | 2,000,000 | ||
Republic Bank of Arizona [Member] | |||
Line of credit amount | $ 250,000 | ||
Class A Partnership Units [Member] | |||
Account units outstanding | 200,003 | 200,003 | |
Class B Partnership Units [Member] | James Wirth [Member] | |||
Account units outstanding | 2,974,038 | 2,974,038 | |
General Partner Units [Member] | |||
General partners shares | 10,037,476 | 10,037,476 | |
Innsuites Hotel Located in Tucson [Member] | |||
Partnership interest units percentage | 51.01% | ||
Innsuites Hotel Located in Albuquerque New Mexico [Member] | |||
Partnership interest units percentage | 21% | ||
Class A Partnership Units [Member] | |||
Partnership interest units percentage | 1.51% | 1.51% | |
Class B Partnership Units [Member] | |||
Partnership interest units percentage | 22.51% | ||
General Partner Units [Member] | |||
Partnership interest units percentage | 75.98% | 75.98% | |
Limited Partner [Member] | |||
General partners shares | 3,174,041 | 3,174,041 | |
UniGen Power Inc. [Member] | |||
Convertible debenture | $ 1,000,000 | ||
Debt instrument interest rate | 6% | ||
Privately-held common stock | $ 618,750 | ||
Privately-held common stock, shares | 525,000 | ||
RRF Limited Partnership [Member] | Weighted Average [Member] | |||
Percentage of ownership interest held by the trust | 75.98% | 75.98% | |
RRF Limited Partnership [Member] | General Partner [Member] | |||
Percentage of ownership interest held by the trust | 75.98% |
SCHEDULE OF WARRANTS VALUATION
SCHEDULE OF WARRANTS VALUATION ASSUMPTIONS (Details) | Jul. 31, 2023 $ / shares |
Debenture Warrants [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Exercise (Strike) price | $ 1 |
Time to maturity (years) | 2 years |
Additional Warrants [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Exercise (Strike) price | $ 2.25 |
Time to maturity (years) | 3 years |
Measurement Input, Share Price [Member] | Debenture Warrants [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Annualized volatility | 2.25 |
Measurement Input, Share Price [Member] | Additional Warrants [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Annualized volatility | 2.25 |
Measurement Input, Risk Free Interest Rate [Member] | Debenture Warrants [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Annualized volatility | 1.630 |
Measurement Input, Risk Free Interest Rate [Member] | Additional Warrants [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Annualized volatility | 1.630 |
Measurement Input, Price Volatility [Member] | Debenture Warrants [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Annualized volatility | 27.43 |
Measurement Input, Price Volatility [Member] | Additional Warrants [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Annualized volatility | 27.43 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 16, 2019 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2023 | |
Property, Plant and Equipment [Line Items] | ||||||
Allowance for doubtful accounts | $ 0 | $ 0 | ||||
Warrants, exercise | 15,000 | 60,000 | ||||
Weighted average limited partnership units outstanding, diluted | 3,174,041 | |||||
Weighted average incremental shares resulting from unit conversion | 3,174,041 | 3,174,041 | ||||
Advertising expense | $ 83,000 | $ 62,000 | $ 165,000 | $ 171,000 | ||
Debt instrument, interest rate, stated percentage | 7% | 7% | ||||
Investments | $ 618,750 | $ 618,750 | $ 588,750 | |||
Interest income, reinvested | $ 15,000 | $ 60,000 | ||||
Notes Receivable [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Investments | $ 700,000 | |||||
UniGen Power Inc. [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Ownership percentage | 25% | |||||
Common Class A [Member] | UniGen Power Inc. [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Ownership percentage | 25% | |||||
Debenture Warrants [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Exercise price | $ 1 | $ 1 | ||||
Additional Warrants [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Exercise price | $ 2.25 | $ 2.25 | ||||
UniGen Power Inc. [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Warrants, exercise | 161,250 | |||||
Debt instrument, interest rate, stated percentage | 6% | 6% | ||||
Investments | 3,000,000 | 15,000 | 15,000 | 60,000 | ||
Line of credit | $ 500,000 | |||||
Investments | 1,000,000 | |||||
Stock Issued During Period, Value, Other | $ 255,000 | |||||
Stock Issued During Period, Shares, Other | 161,250 | |||||
UniGen Power Inc. [Member] | Warrant [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Investments | $ 300,000 | |||||
UniGen Power Inc. [Member] | Options Held [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Debt convertible, shares issued | 500,000 | |||||
Debt instrument, conversion rate | $ 1 | |||||
UniGen Power Inc. [Member] | Debenture Warrants [Member] | Common Class A [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Debt instrument periodic payment of interest | $ 15,000 | |||||
Investments | 1,000,000 | |||||
Exercise price | $ 1 | |||||
UniGen Power Inc. [Member] | Additional Warrants [Member] | Common Class A [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Investments | 500,000 | |||||
Exercise price | $ 2.25 | |||||
Convertible Debenture Purchase Agreement [Member] | UniGen Power Inc. [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Convertible debt | $ 1,000,000 | |||||
Debt instrument, interest rate, stated percentage | 6% | |||||
Investments | 1,000,000 | |||||
Convertible Debenture Purchase Agreement [Member] | UniGen Power Inc. [Member] | Common Class A [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Debt convertible, shares issued | 1,000,000 | |||||
Debt instrument, conversion rate | $ 1 | |||||
Board Of Trustees [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Warrants, exercise | 9,000 | |||||
IHT [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Investment owned balance, shares | 525,000 | 525,000 | ||||
Investment cost | $ 618,750 | $ 618,750 | ||||
James wirth and Marc Berg [Member] | UniGen Power Inc. [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Ownership percentage | 28% | 28% | ||||
90 days [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of allowance for doubtful accounts. | 50% | |||||
120 days [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of allowance for doubtful accounts. | 100% | |||||
Building and Improvements [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful life | 40 years | 40 years | ||||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful life | 10 years | 10 years | ||||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful life | 3 years | 3 years |
OWNERSHIP INTERESTS IN ALBQUE_2
OWNERSHIP INTERESTS IN ALBQUERQUE AND TUCSON SUBSIDIARIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Oct. 01, 2013 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jan. 31, 2023 | Mar. 29, 2022 | Feb. 15, 2017 | Jun. 30, 2016 | |||
Albuquerque Suite Hospitality, LLC [Member] | ||||||||||
Percentage of trust held ownership interest | 21.50% | 21.50% | ||||||||
Albuquerque Suite Hospitality, LLC [Member] | Class A [Member] | ||||||||||
Proceeds from sale of units by subsidiary | $ 30,000 | |||||||||
Albuquerque Suite Hospitality, LLC [Member] | Class B Limited Partnership Units [Member] | ||||||||||
Percentage of trust held ownership interest | 0.17% | 0.17% | ||||||||
Albuquerque Suite Hospitality, LLC [Member] | Class C Limited Partnership Units [Member] | ||||||||||
Percentage of trust held ownership interest | 1% | 1% | ||||||||
Albuquerque Suite Hospitality, LLC [Member] | Class A Limited Partnership Units [Member] | Other Parties [Member] | ||||||||||
Percentage of trust held ownership interest | 78.33% | 78.33% | ||||||||
Tucson Hospitality Properties, LLLP [Member] | ||||||||||
Percentage of trust held ownership interest | 48.61% | 48.61% | 51% | |||||||
Indirect Ownership [Member] | Albuquerque Suite Hospitality, LLC [Member] | ||||||||||
Percentage of trust held ownership interest | [1] | |||||||||
Indirect Ownership [Member] | Tucson Hospitality Properties, LLLP [Member] | ||||||||||
Percentage of trust held ownership interest | 51.01% | 51.01% | [1] | 51.01% | ||||||
Indirect Ownership [Member] | Tucson Hospitality Properties, LLLP [Member] | Mr Wirth [Member] | ||||||||||
Percentage of trust held ownership interest | 0.38% | 0.38% | ||||||||
Albuquerque Suite Hospitality, LLC and Tucson Hospitality Properties, LLLP [Member] | ||||||||||
Sale price per unit | $ 10,000 | |||||||||
Cumulative priority distributions per unit per year | $ 700 | |||||||||
Albuquerque Suite Hospitality, LLC and Tucson Hospitality Properties, LLLP [Member] | Minimum [Member] | ||||||||||
Percentage of hold least outstanding units | 50.10% | |||||||||
Albuquerque Suite Hospitality, LLC [Member] | Class B Limited Partnership Units [Member] | ||||||||||
Number of units sold during period | 129 | 129 | ||||||||
Albuquerque Suite Hospitality, LLC [Member] | Class A Limited Partnership Units [Member] | Other Parties [Member] | ||||||||||
Number of units sold during period | 470 | 470 | ||||||||
Albuquerque Suite Hospitality, LLC [Member] | Restructuring Agreement [Member] | ||||||||||
Sale price per unit | $ 10,000 | |||||||||
Partners capital account units sale of units | 0 | 0 | ||||||||
Sale of units | $ 10,000 | $ 10,000 | ||||||||
Tucson Hospitality Properties LP [Member] | Class B Limited Partnership Units [Member] | ||||||||||
Number of units sold during period | 404 | 404 | ||||||||
Tucson Hospitality Properties LP [Member] | Class C Limited Partnership Units [Member] | ||||||||||
Number of units sold during period | 3 | 3 | ||||||||
Tucson Hospitality Properties LP [Member] | Class A Limited Partnership Units [Member] | Other Parties Holders [Member] | ||||||||||
Number of units sold during period | 385 | 385 | ||||||||
Tucson Hospitality Properties LP [Member] | Rare Earth Financial, LLC [Member] | ||||||||||
Cumulative priority distributions per unit per year | $ 700 | |||||||||
Tucson Hospitality Properties LP [Member] | Rare Earth Financial, LLC [Member] | ||||||||||
Sale price per unit | $ 10,000 | |||||||||
Maximum investors to purchase units | 160 | |||||||||
Maximum potentially to overallotment exercised | 200 | |||||||||
Percentage of membership interest in a subsidiary committed to purchase by an affiliate | 50.10% | |||||||||
[1]Indirect ownership is through the Partnership |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jul. 31, 2023 | Jan. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, net | $ 7,121,896 | $ 7,209,488 |
Hotel Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 17,771,453 | 17,524,259 |
Less accumulated depreciation | (10,688,421) | (10,358,060) |
Property, Plant and Equipment, net | 7,083,032 | 7,166,199 |
Hotel Properties [Member] | Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 2,500,000 | 2,500,000 |
Hotel Properties [Member] | Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 10,905,364 | 10,762,859 |
Hotel Properties [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 4,366,089 | 4,261,400 |
Property, Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 475,545 | 475,545 |
Less accumulated depreciation | (436,681) | (432,256) |
Property, Plant and Equipment, net | 38,864 | 43,289 |
Property, Plant and Equipment [Member] | Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 7,005 | 7,005 |
Property, Plant and Equipment [Member] | Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 75,662 | 75,662 |
Property, Plant and Equipment [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 392,878 | $ 392,878 |
MORTGAGE NOTES PAYABLE (Details
MORTGAGE NOTES PAYABLE (Details Narrative) - USD ($) | 6 Months Ended | ||||
Dec. 02, 2019 | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Mar. 29, 2022 | |
Short-Term Debt [Line Items] | |||||
Debt instrument, interest rate | 7% | ||||
Mortgage loan, face amount | $ 1,228,000 | ||||
Tucson Hospitality Properties, LLLP [Member] | |||||
Short-Term Debt [Line Items] | |||||
Periodic payment principal | 49,778 | ||||
Business Loan Agreement [Member] | |||||
Short-Term Debt [Line Items] | |||||
Mortgage loan, face amount | 8,135,000 | $ 8,224,000 | |||
Business Loan Agreement [Member] | Albuqureque Suites Hospitality, LLC [Member] | |||||
Short-Term Debt [Line Items] | |||||
Face amount of mortgages | $ 1,400,000 | ||||
Periodic payment principal | 9,217 | ||||
Debt instrument, maturity date | Dec. 02, 2029 | ||||
Financing fees | $ 11,000 | ||||
Business Loan Agreement [Member] | Albuqureque Suites Hospitality, LLC [Member] | First Five Year and Thereafter [Member] | |||||
Short-Term Debt [Line Items] | |||||
Debt instrument, interest rate | 4.90% | ||||
Business Loan Agreement [Member] | Albuqureque Suites Hospitality, LLC [Member] | Prime Rate [Member] | |||||
Short-Term Debt [Line Items] | |||||
Debt instrument, interest rate | 3.50% | ||||
Business Loan Agreement [Member] | Albuqureque Suites Hospitality, LLC [Member] | Interest Rate Floor [Member] | |||||
Short-Term Debt [Line Items] | |||||
Debt instrument, interest rate | 4.90% | ||||
Tucson Hospitality Properties, LLLP [Member] | |||||
Short-Term Debt [Line Items] | |||||
Ownership percentage | 48.61% | 48.61% | 51% | ||
Face amount of mortgages | $ 8,400,000 | ||||
Debt instrument, interest rate | 4.99% | ||||
Amortization period | 25 years | ||||
Tucson Hospitality Properties, LLLP [Member] | First Position Debt [Member] | |||||
Short-Term Debt [Line Items] | |||||
Face amount of mortgages | $ 4,500,000 | ||||
Tucson Hospitality Properties, LLLP [Member] | Inter Company Advances [Member] | |||||
Short-Term Debt [Line Items] | |||||
Face amount of mortgages | $ 3,800,000 |
NOTES PAYABLE AND NOTES RECEI_2
NOTES PAYABLE AND NOTES RECEIVABLE – RELATED PARTY (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Dec. 02, 2014 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2023 | Dec. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Interest expense | $ 162,618 | $ 122,647 | $ 252,650 | $ 258,122 | |||
Rare Earth Financial, LLC [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Line of credit percentage | 7% | ||||||
Maximum borrowing amount | $ 2,000,000 | ||||||
Interest expense | 0 | $ 0 | |||||
Related Party [Member] | Rare Earth Financial, LLC [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Trust amount receivable | 0 | 0 | $ 0 | ||||
Trust amount payable | $ 0 | $ 0 | $ 0 |
OTHER NOTES PAYABLE (Details Na
OTHER NOTES PAYABLE (Details Narrative) - USD ($) | 6 Months Ended | |
Jul. 01, 2019 | Jul. 31, 2023 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Stock repurchased during period, shares | 76,165 | |
Debt instrument interest rate | 7% | |
Debt instrument face amount | $ 1,228,000 | |
Unrelated Third Parties [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Notes payable outstanding to unrelated third parties | $ 0 | |
Stock repurchased during period, shares | 0 | |
Debt instrument interest rate | 7% | |
Debt instrument, maturity date description | January 2023 | |
Individual Lender [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Debt instrument interest rate | 4.50% | |
Unsecured debt | $ 200,000 | |
Debt instrument face amount | 200,000 | |
Individual Investor [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Debt instrument interest rate | 4.50% | |
Debt instrument, maturity date description | The loan has been subsequently extended to December 2024. | |
Unsecured debt | $ 270,000 | |
Debt instrument face amount | $ 270,000 |
SCHEDULE OF MINIMUM PAYMENTS OF
SCHEDULE OF MINIMUM PAYMENTS OF DEBT (Details) | Apr. 30, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 581,308 |
2025 | 234,169 |
2026 | 247,906 |
2027 | 260,999 |
2028 | 263,125 |
Thereafter | 8,245,892 |
Total | 9,833,399 |
Mortgages [Member] | |
Debt Instrument [Line Items] | |
2024 | 111,308 |
2025 | 234,169 |
2026 | 247,906 |
2027 | 260,999 |
2028 | 263,125 |
Thereafter | 8,245,892 |
Total | 9,363,399 |
Other notes payables [Member] | |
Debt Instrument [Line Items] | |
2024 | 470,000 |
2025 | |
2026 | |
2027 | |
2028 | |
Thereafter | |
Total | 470,000 |
Notes payable related party [Member] | |
Debt Instrument [Line Items] | |
2024 | |
2025 | |
2026 | |
2027 | |
2028 | |
Total |
DESCRIPTION OF BENEFICIAL INT_2
DESCRIPTION OF BENEFICIAL INTERESTS (Details Narrative) - $ / shares | 6 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Trust repurchased shares | 76,165 | |
Repurchased price per share | $ 3.04 | $ 0 |
Shares of Beneficial Interest [Member] | ||
Trust repurchased shares | 53,159 | 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | |
Jul. 31, 2023 | Jan. 31, 2023 | |
InnSuites Hotels Inc [Member] | ||
Monthly accounting fee | $ 2,000 | |
InnSuites Hotels Inc [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Revenue percentage | 5% | |
Ownership [Member] | ||
IHT ownership percentage | 75.98% | 75.98% |
Ownership [Member] | Innsuites Hotel Located in Tucson [Member] | ||
IHT ownership percentage | 51.01% | |
Ownership [Member] | Innsuites Hotel Located in Albuquerque New Mexico [Member] | ||
IHT ownership percentage | 21.50% | |
Mr. Wirth and Affiliates [Member] | ||
Number of shares held for beneficial interest of trust | 6,250,296 | 6,228,296 |
Percentage of shares issued and outstanding of beneficial interest | 69.81% | 69.12% |
Mr. Wirth and Affiliates [Member] | Class B Partnership Units [Member] | ||
Account units outstanding | 2,974,038 | 2,974,038 |
Percentage of outstanding partnership units | 22.51% | 22.51% |
Mr. Wirth, Brain James and Affiliates [Member] | ||
Annual salary | $ 37,000 |
STATEMENTS OF CASH FLOWS, SUP_2
STATEMENTS OF CASH FLOWS, SUPPLEMENTAL DISCLOSURES (Details Narrative) - USD ($) | 6 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 250,000 | $ 240,000 |
Amounts related to notes payables | 0 | 0 |
Income taxes paid | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Restricted cash | $ 0 | $ 0 | |
Revenue | $ 97,000 | $ 93,000 | |
Tucson Oracle Property [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Percentage of deposit used for capital expenditures | 4% |
SCHEDULE OF LEASE COSTS (Detail
SCHEDULE OF LEASE COSTS (Details) | 6 Months Ended | |
Jul. 31, 2023 USD ($) | ||
Operating Lease Costs: | ||
Operating Lease, Cost | $ 29,727 | [1] |
Amortization of right-of-use assets | 13,874 | |
Interest on lease obligations | $ 402 | |
[1]Short term lease costs were immaterial. |
SCHEDULE OF CASH FLOW INFORMATI
SCHEDULE OF CASH FLOW INFORMATION (Details) - USD ($) | 6 Months Ended | |
Jul. 31, 2023 | Jan. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ (2,296) | |
Lease obligations: | ||
Long-term obligations | 2,249,072 | $ 2,267,645 |
Operating leases, net | 2,267,644 | |
Operating cash flows from finance leases | (1,284) | |
Finance leases, net | 7,718 | |
Long-term obligations | $ 7,718 |
SCHEDULE OF WEIGHTED AVERAGE RE
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES (Details) | Jul. 31, 2023 |
Operating Lease, Liability [Abstract] | |
Weighted average, Operating Leases | 34 years |
Weighted-average discount rate - Operating leases | 4.85% |
Finance Lease, Weighted Average Remaining Lease Term | 1 year |
Weighted-average discount rate - Finance leases | 4.85% |
SCHEDULE OF FUTURE MINIMUM RENT
SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASE (Details) - USD ($) | Jul. 31, 2023 | Jan. 31, 2023 |
Leases [Abstract] | ||
2024 | $ 67,171 | |
2025 | 134,355 | |
2026 | 134,367 | |
2027 | 134,379 | |
2028 | 134,391 | |
Thereafter | 4,127,257 | |
Total minimum lease payments | 4,731,920 | |
Less: amount representing interest | 2,464,276 | |
Total present value of minimum payments | 2,267,644 | |
Less: current portion | 18,572 | $ 12,010 |
Long term portion of operating lease liability | $ 2,249,072 | $ 2,267,645 |
SCHEDULE OF FUTURE MINIMUM RE_2
SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR FINANCE LEASE (Details) - USD ($) | Jul. 31, 2023 | Jan. 31, 2023 |
Leases [Abstract] | ||
2024 | $ 7,781 | |
Total minimum lease payments | 7,781 | |
Less: amount representing interest | 62 | |
Total present value of minimum payments | 7,719 | |
Less: current portion | 7,718 | $ 15,159 |
Long term portion of finance lease liability | $ 7,718 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 6 Months Ended |
Jul. 31, 2023 USD ($) | |
Northpoint Properties [Member] | |
Payments for rent | $ 4,318 |
Albuquerque Hotel [Member] | |
Operating lease, option to extend | The Albuquerque Hotel non-cancelable ground lease was extended on January 14, 2014 and expires in 2058. |
Tucson Oracle Hotel [Member] | |
Finance lease, description | The Company’s Tucson Oracle Hotel is subject to non-cancelable cable lease. The Tucson Oracle Hotel non-cancelable cable lease expires in 2023. |
SHARE-BASED PAYMENTS (Details N
SHARE-BASED PAYMENTS (Details Narrative) | May 31, 2022 USD ($) shares |
Equity [Abstract] | |
Restricted stock award gross | shares | 46,000 |
Grant date fair value of restricted shares | $ | $ 55,200 |
SCHEDULE OF FUTURE PAYMENTS OF
SCHEDULE OF FUTURE PAYMENTS OF DEBT (Details) | Jul. 31, 2023 USD ($) |
Notes Receiveable | |
2024 | $ 1,925,000 |
Total | $ 1,925,000 |
NOTES RECEIVEABLE (Details Narr
NOTES RECEIVEABLE (Details Narrative) - USD ($) | Aug. 15, 2018 | Jul. 31, 2023 |
Debt Instrument, Face Amount | $ 1,228,000 | |
Debt instrument interest rate | 7% | |
IBC Hotels, LLC [Member] | ||
Debt Instrument, Face Amount | $ 1,925,000 | |
IBC Hotels, LLC [Member] | Promissory Notes [Member] | ||
Debt instrument interest rate | 3.75% | |
Debt instrument, description | If IBC closes an equity transaction with net proceeds to IBC in excess of $2,500,000, IBC/Buyer shall pay or pre-pay to IHT an amount equal to (a) 50% of the net proceeds received by IBC and (b) 50% of the sum of the unpaid balance of the note and accrued interest accrued but unpaid interest thereon, as the date of receipt of the net proceeds by IBC |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Millions | Jul. 31, 2023 | Jan. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 4.3 | |
Cumulative net operating loss carryforwards | 1.4 | |
Syndications | 2.9 | |
Deferred tax liability | $ 1.8 | |
Operating loss carryforwards, valuation allowance | $ 2.6 |
EMPLOYEE RETENTION TAX CREDIT (
EMPLOYEE RETENTION TAX CREDIT (Details Narrative) $ in Millions | 6 Months Ended |
Jul. 31, 2023 USD ($) | |
Employee Retention Tax Credit | |
Compensation and Benefits Trust | $ 2.7 |
Tax credit receivable and tax refund description | the Trust conservatively placed an amount equal to approximately 12% per Fiscal Quarter of this total as a Tax Credit Receivable and Tax Refund on the Balance Sheet and Income statement, respectively, for the year ended January 31, 2023. The Trust has further conservatively recognized an additional 12% approximately of the total anticipated Tax Credit receivable for the Quarter ended July 31, 2023 |
Employee retention tax credit amount | $ 1.9 |
Employee retention tax credit amount to be received | $ 0.8 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Feb. 01, 2023 | Jul. 29, 2022 | |
Subsequent Events [Abstract] | ||||||||
Dividend paid per share | $ 0.02 | $ 0.01 | ||||||
Dividend paid per share | $ 0.01 | $ 0.01 | ||||||
Stock repurchased during period, shares | 76,165 | |||||||
Stock repurchased during period, value | $ 183,533 | |||||||
Net income attributable to controlling interest rate | 106% | |||||||
Net Income (Loss) Attributable to Parent | $ 18,855 | $ 102,527 | $ 245,661 | $ 283,605 | $ 523,171 | $ 254,144 | ||
Net income loss per share- basic and diluted | $ 0 | $ 0.01 | $ 0.03 | $ 0.03 | $ 0.06 | $ 0.03 | ||
Revenues | $ 7,500,000 | $ 6,700,000 | ||||||
Increase in revenue percentage | 11% | |||||||
Non cash depreciation expenses | $ 1,439,437 |