Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2021 | Jun. 28, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | INNSUITES HOSPITALITY TRUST | |
Entity Central Index Key | 0000082473 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-31 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,120,730 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Apr. 30, 2021 | Jan. 31, 2020 |
Current Assets: | ||
Cash | $ 1,558,990 | $ 1,702,755 |
Accounts Receivable | 74,939 | 60,557 |
Income Tax Receivable | 695 | 68,661 |
Current Portion of Note Receivable (net) | 137,500 | 91,667 |
Prepaid Expenses and Other Current Assets | 225,492 | 168,892 |
Total Current Assets | 1,997,616 | 2,092,532 |
Property and Equipment, net | 8,064,264 | 8,189,850 |
Note Receivable (net) | 1,787,500 | 1,833,333 |
Operating Lease - Right of Use | 2,119,668 | 2,141,084 |
Finance Lease - Right of Use | 69,372 | 76,309 |
Convertible Note Receivable | 1,000,000 | 1,000,000 |
Investment in Private Company Stock, at Cost | 60,000 | 60,000 |
TOTAL ASSETS | 15,098,420 | 15,393,108 |
Current Liabilities: | ||
Accounts Payable and Accrued Expenses | 1,879,682 | 1,853,602 |
Current Portion of Mortgage Notes Payable, net of Discount | 170,995 | 168,799 |
Current Portion of Other Notes Payable | 30,359 | 47,216 |
Current Portion of Operating Lease Liability | 60,131 | 58,536 |
Current Portion of Finance Lease Liability | 28,198 | 27,858 |
Total Current Liabilities | 2,169,365 | 2,156,011 |
Notes Payable - Related Party | 990,000 | 1,595,000 |
Mortgage Notes Payable, net of Discount | 5,707,884 | 5,768,785 |
Other Notes Payable | 1,130,799 | 1,000,877 |
Operating Lease Liability, net of current portion | 2,295,144 | 2,310,745 |
Finance Lease Liability, net of current portion | 44,940 | 52,118 |
TOTAL LIABILITIES | 12,338,132 | 12,883,536 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Shares of Beneficial Interest, without par value, unlimited authorization; 18,689,215 and 18,626,215 shares issued and 9,120,730 and 9,057,730 shares outstanding at April 30, 2021 and January 31, 2021, respectively | 20,014,474 | 20,027,402 |
Treasury Stock, 9,568,485 shares held at cost at April 30, 2021 and January 31, 2021, respectively | (13,936,972) | (13,936,972) |
TOTAL TRUST SHAREHOLDERS' EQUITY | 6,077,502 | 6,090,430 |
NON-CONTROLLING INTEREST | (3,317,214) | (3,580,858) |
TOTAL EQUITY | 2,760,288 | 2,509,572 |
TOTAL LIABILITIES AND EQUITY | $ 15,098,420 | $ 15,393,108 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended |
Apr. 30, 2021 | Jan. 31, 2020 | |
Statement of Financial Position [Abstract] | ||
Shares of beneficial interest, without par value | ||
Shares of beneficial interest, authorized shares | Unlimited | Unlimited |
Shares of beneficial interest, shares issued | 18,689,215 | 18,626,215 |
Shares of beneficial interest, shares outstanding | 9,120,730 | 9,057,730 |
Treasury stock, shares held | 9,568,485 | 9,568,485 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
REVENUE | ||
TOTAL REVENUE | $ 1,399,126 | $ 1,446,078 |
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 1,605,705 | 1,728,898 |
OPERATING LOSS | (206,579) | (282,820) |
Other Income | 37,174 | |
Interest Income | 88 | 17,756 |
PPP Loan Forgiveness | 416,288 | |
TOTAL OTHER INCOME | 453,550 | 17,756 |
Interest on Mortgage Notes Payable | 17,345 | 36,007 |
Interest on Notes Payable to Banks | 103 | |
Interest on Other Notes Payable | 72,465 | 51,683 |
TOTAL INTEREST EXPENSE | 89,810 | 87,793 |
CONSOLIDATED NET INCOME (LOSS) | 157,161 | (352,857) |
LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 263,644 | (210,985) |
NET LOSS ATTRIBUTABLE TO CONTROLLING INTERESTS | $ (106,483) | $ (141,872) |
NET LOSS PER SHARE - BASIC & DILUTED | $ 0.01 | $ (0.04) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC & DILUTED | 9,129,719 | 9,291,223 |
Room [Member] | ||
REVENUE | ||
TOTAL REVENUE | $ 1,364,305 | $ 1,281,749 |
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 473,626 | 469,616 |
Food and Beverage [Member] | ||
REVENUE | ||
TOTAL REVENUE | 15,474 | 15,177 |
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 40,157 | 32,368 |
Management and Trademark Fees [Member] | ||
REVENUE | ||
TOTAL REVENUE | 102,585 | |
Other [Member] | ||
REVENUE | ||
TOTAL REVENUE | 19,347 | 46,567 |
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 19,069 | 2,102 |
General and Administrative [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 456,377 | 577,474 |
Sales and Marketing [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 81,130 | 110,434 |
Repairs and Maintenance [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 90,780 | 88,807 |
Hospitality [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 52,397 | 68,869 |
Utilities [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 84,565 | 81,406 |
Depreciation [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 185,020 | 214,309 |
Real Estate and Personal Property Taxes, Insurance and Ground Rent [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | $ 122,584 | $ 83,513 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) | Shares of Beneficial Interest [Member] | Treasury Stock [Member] | Trust Shareholders' Equity [Member] | Non-Controlling Interest [Member] | Total |
Balance at Jan. 31, 2020 | $ 21,837,048 | $ (13,689,533) | $ 8,147,515 | $ (2,229,705) | $ 2,509,572 |
Balance, shares at Jan. 31, 2020 | 9,273,299 | 9,334,916 | |||
Net Income Loss | $ (141,872) | (141,872) | (210,985) | (352,857) | |
Purchase of Treasury Stock | $ (20,772) | (20,772) | (20,772) | ||
Purchase of Treasury Stock, shares | (17,074) | 17,074 | |||
Shares of Beneficial Interest Issued for Services Rendered | $ 8,100 | 8,100 | 8,100 | ||
Shares of Beneficial Interest Issued for Services Rendered, shares | 18,000 | ||||
Sales of Ownership Interests in Subsidiary, net | 10,000 | 10,000 | |||
Distribution to Non-Controlling Interests | (105,347) | (105,347) | |||
Reallocation of Non-Controlling Interests and Other | 10,494 | 10,494 | (10,494) | ||
Balance at Apr. 30, 2020 | $ 21,713,770 | $ (13,710,305) | 8,003,465 | (2,546,531) | 5,456,934 |
Balance, shares at Apr. 30, 2020 | 9,274,225 | 9,351,990 | |||
Balance at Jan. 31, 2021 | $ 20,027,402 | $ (13,936,972) | 6,090,430 | (3,580,858) | 2,509,572 |
Balance, shares at Jan. 31, 2021 | 9,057,730 | 9,568,485 | |||
Net Income Loss | $ (106,483) | (106,483) | 263,644 | 157,161 | |
Shares of Beneficial Interest Issued for Services Rendered | $ 93,555 | 93,555 | 93,555 | ||
Shares of Beneficial Interest Issued for Services Rendered, shares | 63,000 | ||||
Balance at Apr. 30, 2021 | $ 20,014,474 | $ (13,936,972) | $ 6,077,502 | $ (3,317,214) | $ 2,760,288 |
Balance, shares at Apr. 30, 2021 | 9,120,730 | 9,568,485 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Consolidated Net Income (Loss) | $ 157,161 | $ (352,857) |
Adjustments to Reconcile Consolidated Net Income (Loss) to Net Cash Provided By (Used In) By Operating Activities: | ||
PPP Loan Forgiveness | (416,288) | |
Stock-Based Compensation | 93,555 | 8,100 |
Depreciation | 185,020 | 214,309 |
Bad Debt Expense | 7,000 | |
Changes in Assets and Liabilities: | ||
Accounts Receivable | (14,382) | 272,099 |
Income Tax Receivable | 67,966 | |
Prepaid Expenses and Other Assets | (56,600) | (128,957) |
Operating Lease Asset | 21,416 | (19,514) |
Finance Lease Asset | 6,937 | 28,170 |
Operating Lease Liability | (14,006) | |
Finance Lease Liability | (6,838) | |
Accounts Payable and Accrued Expenses | 26,079 | (401,217) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 50,020 | (372,867) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Improvements and Additions to Hotel Properties | (59,434) | |
Investments in Unigen | (400,000) | |
Purchases of Marketable Securities | (31,755) | |
NET CASH USED IN INVESTING ACTIVITIES | (59,434) | (431,755) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal Payments on Mortgage Notes Payable | (58,705) | (40,182) |
Payments on Notes Payable to Banks, net of financing costs | (28,627) | |
Lendings on Notes Receivable - Related Party | (25,000) | |
Payments on Notes Payable - Related Party | (643,737) | (84,222) |
Borrowings on Note Payable - Related Party | 38,737 | |
Payments on Other Notes Payable | (21,500) | (67,749) |
Borrowings on Other Notes Payable | 550,854 | 513,224 |
Proceeds from Sale of Non-Controlling Ownership Interest in Subsidiary, net | 10,000 | |
Distributions to Non-Controlling Interest Holders | (105,347) | |
Repurchase of Treasury Stock | (20,772) | |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (134,351) | 151,325 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (143,765) | (653,297) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 1,702,755 | 1,200,528 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 1,558,990 | $ 547,231 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Apr. 30, 2021 | |
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 April 30, 2021, InnSuites Hospitality Trust (the “Trust”, “IHT”, “we”, “us” or “our”) is a publicly traded unincorporated Ohio real estate investment trust (REIT) with hotels IHT owns and hotels IHT 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 (the “Hotels”) operated under the federally trademarked name “InnSuites Hotels” or “InnSuites” as well as operating under the brand name “Best Western”. The Trust and its shareholders hold a $1 million 6% convertible debenture in UniGen Power Inc., (“UPI”), $60,000 in UPI’s privately-held common stock, and hold warrants to make further UPI Investments in the future. Hotel Operations: Our Tucson, Arizona Hotel and our Hotel located in Albuquerque, New Mexico are limited service hotels. Both hotels offer swimming pools, fitness centers, business centers, and complimentary breakfast. In addition, the Hotels offer social areas and modest conference facilities. The Trust is the sole general partner of RRF Limited Partnership, a Delaware limited partnership (the “Partnership”), and owned a 75.89% interest in the Partnership as of April 30, 2021 and January 31, 2021, respectively. The Trust’s weighted average ownership for the three months ended April 30, 2021 and 2020 was 75.89%. As of April 30, 2021, the Partnership owned a 51.01% interest in an InnSuites® hotel located in Tucson, Arizona. The Trust owns a direct 20.67 % interest in an InnSuites® hotel located in Albuquerque, New Mexico. InnSuites Hotels Inc.(“IHI”), a subsidiary, manages the Hotels’ daily operations under 2 management agreements. The Trust also provides the use of the “InnSuites” trademark to the Hotels through wholly-owned IHI. All expenses and reimbursements between the Trust, IHI and the 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, any of these will be sold. Neither the Tucson Hotel nor the Albuquerque Hotel is currently listed but the Trust is willing to consider offers for the Hotel. Each of the Hotels is being marketed at a price that management believes is reasonable in relation to its current fair value. 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, as listed in the table below. 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 intercompany transactions and balances have been eliminated. IHT OWNERSHIP % ENTITY DIRECT INDIRECT (i) Albuquerque Suite Hospitality, LLC 20.33 % - Tucson Hospitality Properties, LLLP - 51.01 % RRF Limited Partnership 75.89 % - InnSuites Hotels Inc. 100.00 % - (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, except that each Class A Partnership unit is convertible into one newly-issued Share of Beneficial Interest of the Trust at any time at the option of the limited partner holding the units. The Class B Partnership units may only become convertible, each into one newly issued Share of Beneficial Interest of the Trust, with the approval of the Board of Trustees, in its sole discretion. On April 30, 2021 and January 31, 2021, 211,708 Class A Partnership units were issued and outstanding, representing 1.60% of the total Partnership units, respectively. Additionally, as of April 30, 2021 and January 31, 2021, 2,974,038 Class B Partnership units were outstanding to and owned by James Wirth, the Trust’s Chairman and Chief Executive Officer, and Mr. Wirth’s affiliates, representing 22.51% ownership in the Partnership. If all the Class A and B Partnership units were converted on April 30, 2021 and January 31, 2021, the limited partners in the Partnership would receive 3,185,746 Shares of Beneficial Interest of the Trust. As of April 30, 2021, and January 31, 2021, the Trust owns 10,025,771 general partner units in the Partnership, representing 75.89% of the total Partnership units. LIQUIDITY The Trust’s principal source of cash to meet its cash requirements, including distributions to its shareholders, is our share of the Partnership quarterly distributions coming from the Tucson Hotel and cash flow; and quarterly distributions and cash flow from the Albuquerque, New Mexico property. The Trust’s liquidity, including our ability to make distributions to its shareholders, will depend upon the ability of the Trust and the Partnership’s ability to generate sufficient cash flow from hotel operations and to service debt, as well as to generate funds from repayment of loans and sale of assets. The Covid-19 Virus (the “Virus”) as of May 15, 2020, had previously disrupted the quarterly distributions from both the Albuquerque and Tucson hotels. As of April 30, 2021, the Trust had a related party Demand/Revolving Line of Credit/Promissory Note with an amount payable of approximately $990,000. The Demand/Revolving Line of Credit/Promissory Note accrues interest at 7.0% per annum and requires interest only payments. The Demand/Revolving Line of Credit/Promissory Note has a maximum borrowing capacity to $2,000,000, which is available through December 31, 2021, and renews annually. This is a two-way Line of Credit, with both the Trust and an Affiliate lender having access to draw on the credit amount of up to $2,000,000 for either party. As of April 30, 2021, the Trust had three Revolving lines of Credit totaling $250,000 with the Republic Bank of Arizona. The lines had a zero balance as of April 30, 2021. With approximately $1,559,000 of cash, as of April 30, 2021, the availability of $1,000,000 from the combined $2,000,000 Advance to Affiliate credit facilities, and the $250,000 Revolving Lines of Credit with Republic Bank, the Trust believes that it has and will have enough cash on hand to meet all of the financial obligations as they become due for twelve months from the date of filing this 10-Q. In addition, management is analyzing other strategic options available to the Trust, including the sale or refinance of one or both Hotel properties. However, such transactions may not be available on terms that are favorable to the Trust, or at all. There can be no assurance that the Trust will be successful selling properties, refinancing debt 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 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 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 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 three months ended April 30, 2021 are not necessarily indicative of the results that may be expected for the year ending January 31, 2022. 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, 2021. 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 indicating the Covid-19 Virus beginnings of 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. The Trust owns all the issued and outstanding classes of shares of InnSuites Hotels Inc. Therefore, the financial statements of the Partnership and InnSuites Hotels Inc. 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 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 state of New Mexico remains under Covid related travel restrictions. 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 | 3 Months Ended |
Apr. 30, 2021 | |
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, 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 years for buildings and improvements, and 3 to 10 years for furniture, fixtures and equipment. 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 April 30, 2021. 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 from non-affiliated hotels include a monthly accounting fee and a percentage of hotel room revenues for managing the daily operations of the Hotels and the one hotel owned by affiliates of Mr. Wirth. 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, access to on-site laundry facilities and parking), 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% of balances over 90 days due and 100% of balances over 120 days due. Accounts receivable are written off when collection efforts have been exhausted and they are deemed uncollectible. Recoveries, if any, of receivables previously written off are recorded when received. The Trust does not charge interest on accounts receivable balances and these receivables are unsecured. There is $0 in the allowance for doubtful accounts for the three months ended April 30, 2021 and the fiscal year ended January 31, 2021. INCOME TAX RECEIVABLE The Trust amended its corporate tax returns for the year ended January 31, 2019. Such amendments resulted in a refund of approximately $294,000, of which the Trust received approximately $175,000 in August 2020. The remaining refund of approximately $120,000 was reduced by approximately $52,000 as a result of taxes owed and accrued from prior periods. The Trust received approximately $68,000 in March 2021. 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. 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 6,000 IHT Shares per year, and during the current quarter ended April 30, 2021, each Trustee received 10,000 shares because of the performance of the Unigen investment as later discussed in Note 2. All shares vest over one year from date of grant. The Trust has paid the annual fees due to its Trustees by issuing Shares of Beneficial Interest out of its authorized but unissued Shares. Upon issuance, the Trust recognizes the shares as outstanding. The Trust recognizes expense related to the issuance based on the fair value of the shares upon the date of the restricted share grant and amortizes the expense equally over the period during which the shares vest to the Trustees. In addition, 3,000 IHT Restricted Shares were issued to each of the Trust’s three accountants, and 2,000 restricted IHT Shares to each of the three IHT employees. The shares vest through the end of the period ending July 31, 2021. 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. NET LOSS PER SHARE Basic and diluted net loss 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 3,185,746 Shares of the Beneficial Interest, as discussed in Note 1. For the three months ended April 30, 2021 and 2020, 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 3,185,746 in addition to the basic shares outstanding for the three months ended April 30, 2021 and 2020, respectively. These Shares of Beneficial Interest issuable upon conversion of the Class A and Class B Partnership units were anti-dilutive during the three months ended April 30, 2021 and 2020 and are excluded in the calculation of diluted earnings per share for those periods. ADVERTISING COSTS Amounts incurred for advertising costs are expensed as incurred. Advertising expense for continuing operations totaled approximately $45,000 and $60,000 for the three months ended April 30, 2021 and 2020 respectively, and is reported in the consolidated Statement of Operations. 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 IN UNIGEN POWER, INC. On December 16, 2019 the Trust entered into a Convertible Debenture Purchase Agreement with UniGen Power Inc. (“UPI” or “UniGen”). The Trust purchased secured convertible debentures (“Debentures”) in the aggregate amount of $1,000,000 (the “Loan Amount”) (the “Loan”) at an annual interest rate of 6%. The Debentures are convertible into Class A shares of UniGen Common Stock at an initial conversion rate of $1.00 per share. UniGen issued the Trust common stock purchase warrants (the “Debenture Warrants”) to purchase up to 1,000,000 shares of Class A Common Stock. The Debenture Warrants are exercisable at an exercise price of $1.00 per share of Class A Common Stock. Subsequent to January 31, 2021, UniGen issued an additional 300,000 warrants at $2.25. UniGen, also, issued the Trust additional common stock purchase warrants (“Additional Warrants”) to purchase up to 200,000 shares of Class A Common Stock. The Additional Warrants are exercisable at an exercise price of $2.25 per share of Class A Common Stock. IHT may fund a $500,000 line of credit to be repaid in the form of UniGen stock at a rate of $1 per share. The total of all stock ownership upon conversion is 1 million shares and if all stock warrants available but not outstanding are exercised, these would total to 3 million Unigen shares. On the Trust’s balance sheet, the investment of the $1,000,000 made in the current fiscal year consists of approximately $700,000 in note receivables and approximately $300,000 as the fair value of the warrant issued with the Trust’s investment in UniGen. The value of the premium related to the fair value of the warrants will accrete over the life of the debentures. The value of the warrants was based on Black-Scholes pricing model based on the following inputs: Debenture Warrants 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 % UniGen has also agreed to allow IHT to fund a $500,000 line of credit at the option of IHT convertible into 500,000 shares of UniGen stock at $1 per share. Upon full subscription of the UniGen 2021 $2 million syndication in February 2021, UniGen granted IHT an additional 300,000 warrants at $2.25 per share granted by Unigen. The balance on this line of credit as of April 30, 2021 is $0. If all notes are converted and all available but not outstanding warrants exercised, IHT would hold up to approximately 25% of UniGen Ownership. Subsequent to April 30, 2021, no activity has occurred with this line of credit and thus no draws have been taken. During the Fiscal Quarter ended April 30, 2021, 0 warrants were exercised for $0 and in return the Trust received 0 shares of UniGen. As of April 30, 2021, IHT held 60,000 common shares of UniGen. Management believes recording the investment at cost approximates fair value since there have been no significant changes in the operations of Unigen and UniGen’s projects are still in the R&D phase. 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. |
Sale of Ownership Interests in
Sale of Ownership Interests in Albquerque, and Tucson Subsidiaries | 3 Months Ended |
Apr. 30, 2021 | |
Notes Payables - IHT Shares of Beneficial Interest and Partnership Units repurchases | |
Sale of Ownership Interests in Albquerque, and Tucson Subsidiaries | 3. SALE OF 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 14, 2021 with the Securities and Exchange Commissions. Generally, interests have sold for $10,000 per unit with a two-unit minimum subscription. The Trust maintains at least 50.1% of the units in one of the entities and intends to maintain this minimum ownership percentage. Generally, the units in the each of the entities are allocated to three classes with differing cumulative discretionary priority distribution rights through a certain time period. Class A units are owned by unrelated third parties and have priority for distributions. Class B units are owned by the Trust and have second priority for distributions. Class C units are owned by Rare Earth or other affiliates of Mr. Wirth and have the lowest priority for distributions. Priority distributions of $700 per unit per year are cumulative until a certain date; however, after that date, generally Class A unit holders continue to hold a preference on distributions over Class B and Class C unit holders. The Trust does not accrue for these distributions as the preference periods have expired. 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 per unit, which operates the Best Western InnSuites Albuquerque Hotel and Suites Airport hotel property, a 112 unit hotel in Albuquerque, New Mexico (the “Property”). REF and IHT restructured the Albuquerque Membership Interest by creating 250 additional Class A membership interests from General Member majority-owned to accredited investor member-owned. In the event of sale of 250 Class A Interests, total interests outstanding will change from 550 to 600 with Class A, Class B and Class C Limited Liability Company Interests (referred to collectively as “Interests”) restructured with IHT selling approximately 200 Class B Interests to accredited investors as Class A Interest. REF, as a General Partner of Albuquerque, will coordinate the offering and sale of Class A Interests to qualified third parties. REF and other REF Affiliates may purchase Interests under the offering. This restructuring is part of the Trust’s Equity Enhancement Plan to comply with Section 1003(a)(iii) of the NYSE American Company Guide. For the three months ending April 30, 2021 and 2020, the Trust sold 0 units and 1 unit for $10,000 per unit, respectively. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Apr. 30, 2021 | |
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 three months ended April 30, 2021 and the fiscal year ended January 31, 2021, 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. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. PROPERTY AND EQUIPMENT As of April 30, 2021, and January 31, 2021, hotel properties consisted of the following: HOTEL SEGMENT April 30, 2021 January 31, 2021 Land $ 2,500,000 $ 2,500,000 Building and improvements 10,525,394 10,531,947 Furniture, fixtures and equipment 4,206,791 4,058,682 Total property and equipment 17,232,185 17,090,629 Less accumulated depreciation (9,207,659 ) (8,961,498 ) Property and Equipment, net $ 8,024,526 $ 8,129,131 As of April 30, 2021, and January 31, 2021, corporate property, plant, and equipment consisted of the following: CORPORATE SEGMENT April 30, 2021 January 31, 2021 Land $ 7,005 $ 7,005 Building and improvements 75,662 75,662 Furniture, fixtures and equipment 84,000 166,122 Total property and equipment 166,667 248,789 Less accumulated depreciation (126,929 ) (188,070 ) Property and Equipment, net $ 39,738 $ 60,719 |
Mortgage Notes Payable
Mortgage Notes Payable | 3 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Mortgage Notes Payable | 6. MORTGAGE NOTES PAYABLE On April 30, 2021 and January 31, 2021, the Trust had a mortgage note payable outstanding with respect to the Tucson Hotel. The mortgage note payable has a scheduled maturity date in June 2042. The weighted average annual interest rates on mortgage notes payable as of April 30, 2021 and January 31, 2021 were 4.69%, respectively. On June 29, 2017, Tucson Oracle entered into a $5.0 million Business Loan Agreement (“Tucson Loan”) as a first mortgage credit facility with KS State Bank to refinance the existing first mortgage credit facility with an approximate payoff balance of $3.045 million which will allow Tucson Hospitality Properties, LLLP to be reimbursed for prior and future hotel improvements. The Tucson Loan has a maturity date of June 19, 2042. The Tucson Loan has an initial interest rate of 4.69% for the first five years and thereafter a variable rate equal to the US Treasury + 2.0% with a floor of 4.69% and no prepayment penalty. This credit facility is guaranteed by InnSuites Hospitality Trust, RRF Limited Partnership, Rare Earth Financial, LLC, James F. Wirth and Gail J. Wirth and the Wirth Family Trust dated July 14, 2016. As of April 30, 2021, and January 31, 2021, the mortgage loan balance was approximately $4,551,000 and $4,583,000, respectively. The mortgage note payable is due in monthly installments of $28,493. On December 2, 2019, Albuquerque Suites Hospitality, LLC entered into a $1.4 million Business Loan Agreement (“Albuquerque Loan”) as a first mortgage credit facility with Republic Bank of Arizona. The Albuquerque Loan has a maturity date of December 2, 2029. The Albuquerque Loan has an initial interest rate of 4.90% for the first five years and thereafter a variable rate equal to the US Treasury + 3.5% with a floor of 4.90% and no prepayment penalty. This credit facility is guaranteed by InnSuites Hospitality Trust. As of April 30, 2021, the mortgage loan balance was approximately $1,328,000, net of financing fees of approximately $16,000. See Note 9 – “Minimum Debt Payments” for scheduled minimum payments on the mortgage notes payable. |
Notes Payable and Notes Receiva
Notes Payable and Notes Receivable - Related Party | 3 Months Ended |
Apr. 30, 2021 | |
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% per annum for both a payable and receivable, interest is due quarterly, matures on August 24, 2021, and renews annually each calendar year. No prepayment penalty exists on the Demand/Revolving Line of Credit/Promissory Note. The balance fluctuates significantly through the period. On December 30, 2020, the Demand/Revolving Line of Credit/Promissory Note was extended and increased to the current level of $2,000,000. As of April 30, 2021, and January 31, 2021, the Trust had an amount payable of approximately $990,000 and $1,595,000, respectively. During the three months ended April 30, 2021 and 2020, the Trust accrued approximately $20,000 and $0, respectively, of interest income. |
Other Notes Payable
Other Notes Payable | 3 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Other Notes Payable | 8. OTHER NOTES PAYABLE As of April 30, 2021, the Trust had approximately $40,000 in promissory notes outstanding to unrelated third parties arising from the repurchase of 146,124 Class A Partnership units in privately negotiated transactions. These promissory notes bear interest at 7% per year and are due in varying monthly payments through January 2023. As of April 30, 2021, the Trust had a $200,000 unsecured note payable with an individual lender. The promissory note is payable on demand, or on December 31, 2022, whichever occurs first. The loan accrues interest at 4.5% and interest only payments shall be made monthly and are due on the first of the following month. The Trust may pay all of part of this note without any repayment penalties. The total principal amount of this loan is $200,000 as of April 30, 2021. On June 20, 2016, March 1 2017, May 30, 2018, and July 18, 2018 the Trust and the Partnership together entered into multiple unsecured loans totaling $270,000 with Guy C. Hayden III (“Hayden Loans”). As of July 1, 2019 these loans were consolidated and extended at 4.5% interest only, with similar terms to June 30, 2021. The loans have been subsequently extended to December 2022. The Trust may pay all or part of this note without any repayment penalties. The total principal amount of the Hayden Loans is $270,000 as of April 30, 2021. On March 20, 2017, the Trust and Partnership entered multiple, unsecured loans to Lisa Sweitzer Hayes (“Sweitzer Loans”), totaling $100,000. As of July 1, 2019, these loans were consolidated and extended at 4.0% interest only, with similar terms to June 30, 2021. The loans have been subsequently extended to December 2022. The total principal amount of the Sweitzer Loans is $100,000 as of April 30, 2021. As a result of the Covid-19 Virus Pandemic, and the subsequent Legislation passed within the CARES Act of 2020, the Trust applied for and received Small Business Administration (“SBA”) loans through the Paycheck Protection Program (“PPP”). Loans in the amount of approximately $229,000, $188,000, and $87,000, for Tucson, Albuquerque, InnSuites Hospitality, respectively, were granted and received. The lender of all three of the PPP Loans has confirmed that all three loans have met all the requirements necessary to qualify and be eligible for full and complete forgiveness in early 2021, based upon the SBA criteria for PPP loan forgiveness, subject to and pending the forgiveness application. As of January 31, 2021 the PPP Loan in other income received by the Trust was fully forgiven in the amount of approximately $87,000 recorded in other income in the statement of operations. The PPP loan received by Tucson for $228,602 was forgiven in March 2021. The remaining Albuquerque Hotel loan forgiveness for $187,686 was completed in March 2021. The forgiveness was recognized as income for GAAP Financial Statement purposes, and is tax free for tax purposes. On March 5, 2021, the Albuquerque hotel received another PPP Loan in the amount of $253,253. On March 15, 2021, the Tucson hotel received an additional PPP Loan in the amount of $297,601. Management expects but cannot guarantee these additional PPP Loans received by the Tucson and Albuquerque hotels, because of the Covid-19 Virus Pandemic, to be fully forgiven on or before January 31, 2022, based upon SBA guidelines. See Note 9 – “Minimum Debt Payments” for scheduled minimum payments on the debt liabilities. |
Minimum Debt Payments
Minimum Debt Payments | 3 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Minimum Debt Payments | 9. MINIMUM DEBT PAYMENTS Scheduled minimum payments of debt, net of debt discounts, as of April 30, 2021 are approximately as follows in the respective fiscal years indicated: FISCAL YEAR MORTGAGES OTHER NOTES PAYABLE NOTES PAYABLE - RELATED PARTY TOTAL 2022 126,519 26,447 - 152,966 2023 174,956 583,857 990,000 1,748,813 2245 217,255 - - 217,255 2025 190,932 - - 190,932 2026 201,594 550,854 752,448 2027 212,034 - - 212,034 Thereafter $ 4,755,589 $ 4,755,589 $ 5,878,879 $ 1,161,158 $ 990,000 $ 8,030,037 |
Description of Beneficial Inter
Description of Beneficial Interests | 3 Months Ended |
Apr. 30, 2021 | |
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 three months ended April 30, 2021 and 2020, the Trust repurchased 0 and 17,074 Shares of Beneficial Interest at an average price of $0 and $1.21 per share, respectively. The average price paid includes brokerage commissions. The Trust intends to continue repurchasing Shares of Beneficial Interest in compliance with applicable legal and NYSE AMERICAN requirements. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. RELATED PARTY TRANSACTIONS As of April 30, 2021, and January 31, 2021, Mr. Wirth and his affiliates held 2,974,038 Class B Partnership units, which represented 22.51% of the total outstanding Partnership units, respectively. As of April 30, 2021, and January 31, 2021, Mr. Wirth and his affiliates held 5,876,683 and 5,881,683 Shares of Beneficial Interest in the Trust, respectively, which represented 61.42% respectively, of the total issued and outstanding Shares of Beneficial Interest. As of April 30, 2021, and January 31, 2021, the Trust owned 75.89% of the Partnership, respectively. As of April 30, 2021, the Partnership owned a 51.01% interest in the InnSuites® hotel located in Tucson. The Trust also owned a direct 20.67% interest in one InnSuites® hotel located in Albuquerque, New Mexico. The Trust directly manages the Hotels through the Trust’s wholly owned subsidiary, InnSuites Hotels Inc. Under the management agreements, InnSuites Hotels Inc. manages the daily operations of the two Hotels. Revenues and reimbursements among the Trust, InnSuites Hotels Inc. and the Partnership have been eliminated in consolidation. The management fees for the Hotels are set at 5.0% of room revenue and a monthly accounting fee of $2,000 per hotel. These agreements have no expiration date and may be cancelled by either party with 30-days written notice. For the three months ended April 30, 2021, the Trust recognized approximately $0 of hotel management revenue. The Trust employs an immediate family member of Mr. Wirth, Brian James Wirth, who provides technology support services to the Trust, receiving a $62,000 annual salary. |
Statements of Cash Flows, Suppl
Statements of Cash Flows, Supplemental Disclosures | 3 Months Ended |
Apr. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Statements of Cash Flows, Supplemental Disclosures | 12. STATEMENTS OF CASH FLOWS, SUPPLEMENTAL DISCLOSURES The Trust paid $84,000 and $88,000 in cash for interest for the three months ended April 30, 2021 and 2020, respectively for operations. The amounts related to Notes Payables - IHT Shares of Beneficial Interest and Partnership Units repurchases amounted to $0 and $21,000, respectively, for the three months ended April 30, 2021 and 2020. Cash paid for taxes for the three months ended April 30, 2021 and 2020 was $0, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2021 | |
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% of the individual hotel’s room revenue into an escrow account to be used for capital expenditures. The escrow funds applicable to the Tucson Oracle property for which a mortgage lender escrow exists is reported on the Trust’s Consolidated Balance Sheet as “Restricted Cash.” Since a $0 cash balance existed in Restricted Cash as of April 30, 2021 and January 31, 2021, Restricted Cash line was omitted on the Trust’s Consolidated Balance Sheet. Membership Agreements: InnSuites Hotels has 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 by either party. Best Western requires that the hotels meet certain requirements for room quality, and the Hotels are subject to removal from its reservation system if these requirements are not met. The Hotels with third-party membership agreements received significant reservations through the Best Western reservation system. Under these arrangements, fees paid for membership fees and reservations were approximately $30,822 and $41,000 for the three months ended April 30, 2021 and 2020, respectively. These costs include fees for the Albuquerque and Tucson hotels in 2020. These fees are included in room operating expenses on the unaudited condensed consolidated statements of operations for Albuquerque and Tucson. 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 director 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 director 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 | 3 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Leases | 14. LEASES The Trust has operating leases for its corporate offices in Phoenix, Arizona, land leased in Albuquerque, New Mexico, and a cable equipment finance lease in Tucson, Arizona. The Trust’s corporate office lease includes options to extend or terminate the leases and the Trust includes these options in the lease term when it is reasonably certain to exercise that option. All leases are non-cancelable. Operating Leases On August 4, 2017, the Trust entered into a five-year office lease agreement with Northpoint Properties for a commercial office lease at 1730 E Northern Ave, Suite 122, Phoenix, Arizona 85020 commencing on September 1, 2017. Base monthly rent of $4,100 increases 6% on a yearly basis. No rent is due for October 2018 and October 2022 months. The Trust also agreed to pay electricity and applicable sales tax. The office lease agreement provides early termination with a 90-day notification with an early termination fee of $12,000, $8,000, $6,000, $4,000, and $2,000 for years 1 - 5 of the lease term. The Company’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 Company’s lease costs for the three months ended April 30, 2021: Three Months Ended April 30, 2021 Operating Lease Costs: Operating lease cost* 60,082 * Short term lease costs were immaterial. Supplemental cash flow information is as follows: Three Months Ended April 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 42,678 Lease obligations: Operating leases, net $ 2,355,275 Long-term obligations $ 2,295,144 Weighted average remaining lease terms and discount rates were as follows: Weighted average remaining lease term (years) April 30, 2021 Operating leases 37 Weighted average discount rate Operating leases 4.85 % The aggregate future lease payments for Operating Lease Liability as of April 30, 2021 are as follows: For the Years Ending April 30, 2022 $ 129,499 2023 148,348 2024 112,116 2025 112,116 2026 112,116 Thereafter 5,039,196 Total minimum lease payments $ 5,653,391 Less: amount representing interest 3,298,116 Total present value of minimum payments 2,355,275 Less: current portion $ 60,131 Long term portion of operating lease liability 2,295,144 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 April 30, 2021: Three Months Ended April 30, 2021 Finance Lease Costs: Amortization of right-of-use assets $ 6,937 Interest on lease obligations 942 Supplemental cash flow information is as follows: Three Months Ended April 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 7,781 Lease obligations: Finance leases, net $ 73,138 Long-term obligations $ 44,940 Weighted average remaining lease terms and discount rates were as follows: Weighted average remaining lease term (years) April 30, 2021 Finance leases 2.5 Weighted average discount rate 4.85 % Finance leases The aggregate future lease payments for Finance Lease Liability as of April 30, 2021 are as follows: For the Years Ending April 30, 2022 23,343 2023 31,123 2024 23,343 Total minimum lease payments $ 77,809 Less: amount representing interest 4,671 Total present value of minimum payments 73,138 Less: current portion $ 28,198 Long term portion of finance lease liability 44,940 |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Share-Based Payments | 15. SHARE-BASED PAYMENTS The Trust compensates its three non-employee Trustees for their services through grants of restricted Shares. The aggregate grant date fair value of these Shares was $71,280. These restricted 48,000 shares, (16,000 each to the three Independent Trustees), vest in equal monthly amounts over one year during fiscal year 2022. In addition, 3,000 IHT restricted shares were issued to each of the Trust’s three accountants, and 2,000 restricted IHT Shares to each of three IHT employees. The aggregate grant date fair value of these Shares was $22,275. These 15,000 shares vest in equal monthly amounts over six months through July 31, 2021. See Note 2 – “Summary of Significant Accounting Policies” for information related to grants of restricted shares under “Stock-Based Compensation.” |
Notes Receivable
Notes Receivable | 3 Months Ended |
Apr. 30, 2021 | |
Priority return payments | |
Notes Receivable | 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 for its technology subsidiary, IBC Hotels LLC (IBC), with an effective sale date as of August 1, 2018 to an unrelated third-party buyer (Buyer). The payment terms to the sale agreement were later amended on December 7, 2020, as further described below. As a part of the sale, the Trust received a secured promissory note in the principal amount of $2,750,000 with interest to be accrued at 3.75% per annum, which is recorded in the accompanying condensed balance sheet in continuing operations, net of impairment of $825,000 as described below. ● No interest accrued through November 2021. ● Payments on the note receivable include principal and interest beginning in November 2021 ● 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 after effective date IBC closes an equity transaction with net proceeds to IBC in excess of $2,500,000, IBC/Buyer shall 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 ● Future payments on this note are shown in the table below. FISCAL YEAR 2022 137,500 2023 550,000 2024 550,000 2025 550,000 Thereafter 965,500 $ 2,750,000 Impairment (825,000 ) $ 1,925,000 Less: current portion of note receivable $ 137,500 Long term portion of note receivable $ 1,787,500 As of January 31, 2020, the Trust evaluated the carrying value of the note of $2,750,000 for potential impairment. After review, an impairment of $825,000, or 30%, was taken against the note. Factors for the impairment included, but were not limited to: ● 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 April 30, 2021, management evaluated the carrying value of the note and the impairment taken to date and determined no further impairment is needed at this time. 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. |
Stock Options
Stock Options | 3 Months Ended |
Apr. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options | 17. STOCK OPTIONS Effective February 5, 2015, the Board of Trustees of the Trust adopted the 2015 Equity Incentive Plan (“2015 Plan”), subject to shareholder approval, under which up to 1,600,000 Shares of Beneficial Interest of the Trust are authorized to be issued pursuant to grant of stock options, stock appreciation rights, restricted shares, restricted share units or other awards. The Board of Trustees of the Trust has decided to terminate the 2015 Plan. Effective October 31, 2016, it has been determined that the Shareholders will not approve the 2015 Plan and the proposed grants have been rescinded. During the 2017 Annual Meeting of Shareholders, the IHT Shareholders approved the InnSuites Hospitality Trust 2017 Equity Incentive Plan (“2017 Plan”). Management has not granted any options under the 2017 Plan. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 18. 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 received various IRS and state tax jurisdiction notices which the Trust 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 million which includes cumulative net operating loss carryforwards of $1.3 million and syndications of $2.9 million, and deferred tax liability associated with book/tax differences of $1.5 million as of April 30, 2021. We have evaluated the net deferred tax asset and determined that it is not more likely than not we will receive full benefit from the net operating loss carryforwards. Therefore, we have determined a valuation allowance of approximately $2.8 million. |
COVID-19 Disclosure
COVID-19 Disclosure | 3 Months Ended |
Apr. 30, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COVID-19 Disclosure | 19. COVID-19 DISCLOSURE COVID-19 has had a material detrimental impact on our business, financial results and liquidity, in Fiscal Year 2021, ended January 31, 2021. More recent developments in the U.S., lead IHT Management to believe the severe adverse effects of the Virus on Fiscal Year 2021 on IHT and the entire hotel and travel industry will be significantly reduced as the economy recovers, and travel recovers in the current Fiscal Year 2022, (February 1, 2021 to January 31, 2022). The global spread of COVID-19 has been and continues to be a complex and rapidly evolving situation, with governments, public institutions and other organizations imposing or recommending, and business and individuals implementing, at various times and to varying degrees, restrictions on various activities or other actions to combat its spread, such as restrictions and bans on travel or transportation, limitations on the size of gatherings, closures of or occupancy or other operating limitations on work facilities, schools, public buildings and business, cancellation of events, including sporting events, conferences and meetings, and quarantines and lock-downs. COVID-19 and its consequences have dramatically reduced travel and demand for hotel rooms, which has and will continue to impact our business, operations, and financial results. We believe that lodging demand and revenue level are now in a recovery stage. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. SUBSEQUENT EVENTS On May 5, 2021, the Trust received $15,000 in additional interest income in cash, as a result of the Trust’s investment in UniGen. This additional amount was used to exercise 15,000 warrants for 15,000 shares of common stock in UniGen. The Trust intends to maintain its current conservative dividend policy. The Trust currently is, and has, been paying two semiannual dividends each Fiscal Year totaling $0.02 per share per Fiscal Year. In the Fiscal Years ended January 31, 2020 and 2021, the Trust paid dividends of $0.01 per share per share in each of the second and the fourth quarters. The Trust has paid dividends each Fiscal Year since its inception in 1971. The Trust will pay the scheduled semiannual $0.01 dividend payable on July 31, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2021 | |
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, 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 years for buildings and improvements, and 3 to 10 years for furniture, fixtures and equipment. 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 April 30, 2021. |
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 from non-affiliated hotels include a monthly accounting fee and a percentage of hotel room revenues for managing the daily operations of the Hotels and the one hotel owned by affiliates of Mr. Wirth. 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, access to on-site laundry facilities and parking), 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% of balances over 90 days due and 100% of balances over 120 days due. Accounts receivable are written off when collection efforts have been exhausted and they are deemed uncollectible. Recoveries, if any, of receivables previously written off are recorded when received. The Trust does not charge interest on accounts receivable balances and these receivables are unsecured. There is $0 in the allowance for doubtful accounts for the three months ended April 30, 2021 and the fiscal year ended January 31, 2021. |
Income Tax Receivable | INCOME TAX RECEIVABLE The Trust amended its corporate tax returns for the year ended January 31, 2019. Such amendments resulted in a refund of approximately $294,000, of which the Trust received approximately $175,000 in August 2020. The remaining refund of approximately $120,000 was reduced by approximately $52,000 as a result of taxes owed and accrued from prior periods. The Trust received approximately $68,000 in March 2021. |
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. 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 6,000 IHT Shares per year, and during the current quarter ended April 30, 2021, each Trustee received 10,000 shares because of the performance of the Unigen investment as later discussed in Note 2. All shares vest over one year from date of grant. The Trust has paid the annual fees due to its Trustees by issuing Shares of Beneficial Interest out of its authorized but unissued Shares. Upon issuance, the Trust recognizes the shares as outstanding. The Trust recognizes expense related to the issuance based on the fair value of the shares upon the date of the restricted share grant and amortizes the expense equally over the period during which the shares vest to the Trustees. In addition, 3,000 IHT Restricted Shares were issued to each of the Trust’s three accountants, and 2,000 restricted IHT Shares to each of the three IHT employees. The shares vest through the end of the period ending July 31, 2021. |
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. |
Net Loss Per Share | NET LOSS PER SHARE Basic and diluted net loss 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 3,185,746 Shares of the Beneficial Interest, as discussed in Note 1. For the three months ended April 30, 2021 and 2020, 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 3,185,746 in addition to the basic shares outstanding for the three months ended April 30, 2021 and 2020, respectively. These Shares of Beneficial Interest issuable upon conversion of the Class A and Class B Partnership units were anti-dilutive during the three months ended April 30, 2021 and 2020 and are excluded in the calculation of diluted earnings per share for those periods. |
Advertising Costs | ADVERTISING COSTS Amounts incurred for advertising costs are expensed as incurred. Advertising expense for continuing operations totaled approximately $45,000 and $60,000 for the three months ended April 30, 2021 and 2020 respectively, and is reported in the consolidated Statement of Operations. |
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 in Unigen Power, Inc | CONVERTIBLE NOTE RECEIVABLE IN UNIGEN POWER, INC. On December 16, 2019 the Trust entered into a Convertible Debenture Purchase Agreement with UniGen Power Inc. (“UPI” or “UniGen”). The Trust purchased secured convertible debentures (“Debentures”) in the aggregate amount of $1,000,000 (the “Loan Amount”) (the “Loan”) at an annual interest rate of 6%. The Debentures are convertible into Class A shares of UniGen Common Stock at an initial conversion rate of $1.00 per share. UniGen issued the Trust common stock purchase warrants (the “Debenture Warrants”) to purchase up to 1,000,000 shares of Class A Common Stock. The Debenture Warrants are exercisable at an exercise price of $1.00 per share of Class A Common Stock. Subsequent to January 31, 2021, UniGen issued an additional 300,000 warrants at $2.25. UniGen, also, issued the Trust additional common stock purchase warrants (“Additional Warrants”) to purchase up to 200,000 shares of Class A Common Stock. The Additional Warrants are exercisable at an exercise price of $2.25 per share of Class A Common Stock. IHT may fund a $500,000 line of credit to be repaid in the form of UniGen stock at a rate of $1 per share. The total of all stock ownership upon conversion is 1 million shares and if all stock warrants available but not outstanding are exercised, these would total to 3 million Unigen shares. On the Trust’s balance sheet, the investment of the $1,000,000 made in the current fiscal year consists of approximately $700,000 in note receivables and approximately $300,000 as the fair value of the warrant issued with the Trust’s investment in UniGen. The value of the premium related to the fair value of the warrants will accrete over the life of the debentures. The value of the warrants was based on Black-Scholes pricing model based on the following inputs: Debenture Warrants 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 % UniGen has also agreed to allow IHT to fund a $500,000 line of credit at the option of IHT convertible into 500,000 shares of UniGen stock at $1 per share. Upon full subscription of the UniGen 2021 $2 million syndication in February 2021, UniGen granted IHT an additional 300,000 warrants at $2.25 per share granted by Unigen. The balance on this line of credit as of April 30, 2021 is $0. If all notes are converted and all available but not outstanding warrants exercised, IHT would hold up to approximately 25% of UniGen Ownership. Subsequent to April 30, 2021, no activity has occurred with this line of credit and thus no draws have been taken. During the Fiscal Quarter ended April 30, 2021, 0 warrants were exercised for $0 and in return the Trust received 0 shares of UniGen. As of April 30, 2021, IHT held 60,000 common shares of UniGen. Management believes recording the investment at cost approximates fair value since there have been no significant changes in the operations of Unigen and UniGen’s projects are still in the R&D phase. 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) | 3 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Entity Ownership Percentage | 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 intercompany transactions and balances have been eliminated. IHT OWNERSHIP % ENTITY DIRECT INDIRECT (i) Albuquerque Suite Hospitality, LLC 20.33 % - Tucson Hospitality Properties, LLLP - 51.01 % RRF Limited Partnership 75.89 % - InnSuites Hotels Inc. 100.00 % - (i) Indirect ownership is through the Partnership |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Warrants Valuation Assumptions | The value of the warrants was based on Black-Scholes pricing model based on the following inputs: Debenture Warrants 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) | 3 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | As of April 30, 2021, and January 31, 2021, hotel properties consisted of the following: HOTEL SEGMENT April 30, 2021 January 31, 2021 Land $ 2,500,000 $ 2,500,000 Building and improvements 10,525,394 10,531,947 Furniture, fixtures and equipment 4,206,791 4,058,682 Total property and equipment 17,232,185 17,090,629 Less accumulated depreciation (9,207,659 ) (8,961,498 ) Property and Equipment, net $ 8,024,526 $ 8,129,131 As of April 30, 2021, and January 31, 2021, corporate property, plant, and equipment consisted of the following: CORPORATE SEGMENT April 30, 2021 January 31, 2021 Land $ 7,005 $ 7,005 Building and improvements 75,662 75,662 Furniture, fixtures and equipment 84,000 166,122 Total property and equipment 166,667 248,789 Less accumulated depreciation (126,929 ) (188,070 ) Property and Equipment, net $ 39,738 $ 60,719 |
Minimum Debt Payments (Tables)
Minimum Debt Payments (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Scheduled of Minimum Payments of Debt | Scheduled minimum payments of debt, net of debt discounts, as of April 30, 2021 are approximately as follows in the respective fiscal years indicated: FISCAL YEAR MORTGAGES OTHER NOTES PAYABLE NOTES PAYABLE - RELATED PARTY TOTAL 2022 126,519 26,447 - 152,966 2023 174,956 583,857 990,000 1,748,813 2245 217,255 - - 217,255 2025 190,932 - - 190,932 2026 201,594 550,854 752,448 2027 212,034 - - 212,034 Thereafter $ 4,755,589 $ 4,755,589 $ 5,878,879 $ 1,161,158 $ 990,000 $ 8,030,037 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Operating Leases [Member] | |
Schedule of Lease Costs | The following table presents the Company’s lease costs for the three months ended April 30, 2021: Three Months Ended April 30, 2021 Operating Lease Costs: Operating lease cost* 60,082 * Short term lease costs were immaterial. |
Schedule of Cash Flow Information | Supplemental cash flow information is as follows: Three Months Ended April 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 42,678 Lease obligations: Operating leases, net $ 2,355,275 Long-term obligations $ 2,295,144 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates | Weighted average remaining lease terms and discount rates were as follows: Weighted average remaining lease term (years) April 30, 2021 Operating leases 37 Weighted average discount rate Operating leases 4.85 % |
Schedule of Future Minimum Rental Payments for Operating Lease and Finance Lease | The aggregate future lease payments for Operating Lease Liability as of April 30, 2021 are as follows: For the Years Ending April 30, 2022 $ 129,499 2023 148,348 2024 112,116 2025 112,116 2026 112,116 Thereafter 5,039,196 Total minimum lease payments $ 5,653,391 Less: amount representing interest 3,298,116 Total present value of minimum payments 2,355,275 Less: current portion $ 60,131 Long term portion of operating lease liability 2,295,144 |
Finance Leases [Member] | |
Schedule of Lease Costs | The following table presents the Company’s lease costs for the three months ended April 30, 2021: Three Months Ended April 30, 2021 Finance Lease Costs: Amortization of right-of-use assets $ 6,937 Interest on lease obligations 942 |
Schedule of Cash Flow Information | Supplemental cash flow information is as follows: Three Months Ended April 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 7,781 Lease obligations: Finance leases, net $ 73,138 Long-term obligations $ 44,940 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates | Weighted average remaining lease terms and discount rates were as follows: Weighted average remaining lease term (years) April 30, 2021 Finance leases 2.5 Weighted average discount rate 4.85 % Finance leases |
Schedule of Future Minimum Rental Payments for Operating Lease and Finance Lease | The aggregate future lease payments for Finance Lease Liability as of April 30, 2021 are as follows: For the Years Ending April 30, 2022 23,343 2023 31,123 2024 23,343 Total minimum lease payments $ 77,809 Less: amount representing interest 4,671 Total present value of minimum payments 73,138 Less: current portion $ 28,198 Long term portion of finance lease liability 44,940 |
Notes Receivable (Tables)
Notes Receivable (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Priority return payments | |
Schedule of Future Payments of Debt | ● Future payments on this note are shown in the table below. FISCAL YEAR 2022 137,500 2023 550,000 2024 550,000 2025 550,000 Thereafter 965,500 $ 2,750,000 Impairment (825,000 ) $ 1,925,000 Less: current portion of note receivable $ 137,500 Long term portion of note receivable $ 1,787,500 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | Dec. 31, 2021 | Jan. 31, 2020 | |
Debt instrument interest rate | 7.00% | ||||
Note payable related party | $ 990,000 | $ 1,595,000 | |||
Cash | 1,558,990 | $ 1,702,755 | |||
Related Party Demand/Revolving Line of Credit/Promissory Note [Member] | |||||
Line of credit limit | $ 1,000,000 | ||||
Related Party Demand/Revolving Line of Credit/Promissory Note [Member] | Forecast [Member] | |||||
Line of credit limit | $ 2,000,000 | ||||
Class A Partnership Units [Member] | |||||
Partnership unit issued | 211,708 | 211,708 | |||
Partnership unit outstanding | 211,708 | 211,708 | |||
General Partner Units [Member] | |||||
Number of partnership units | 10,025,771 | 10,025,771 | |||
Innsuites Hotel Located in Albuquerque New Mexico [Member] | |||||
Partnership ownership interest percentage | 20.67% | ||||
Class A Partnership Units [Member] | |||||
Percentage of total partnership units | 1.60% | 1.60% | |||
James Wirth [Member] | Class B Partnership Units [Member] | |||||
Percentage of total partnership units | 22.51% | 22.51% | |||
General Partner Units [Member] | |||||
Partnership ownership interest percentage | 75.89% | 75.89% | |||
RRF Limited Partnership [Member] | Innsuites Hotel Located in Tucson, Arizona [Member] | |||||
Partnership ownership interest percentage | 51.01% | ||||
James Wirth [Member] | Class B Partnership Units [Member] | |||||
Partnership unit outstanding | 2,974,038 | 2,974,038 | |||
Republic Bank of Arizona [Member] | |||||
Line of credit amount | $ 250,000 | ||||
Line of credit remaining borrowing capacity | 0 | ||||
Trust [Member] | |||||
Line of credit amount | 250,000 | ||||
Advances to affiliates | 2,000,000 | ||||
Maximum [Member] | Related Party Demand/Revolving Line of Credit/Promissory Note [Member] | |||||
Line of credit limit | $ 2,000,000 | ||||
Limited Partner [Member] | |||||
Number of partnership units | 3,185,746 | 3,185,746 | |||
UniGen Power Inc. [Member] | |||||
Convertible debenture | $ 1,000,000 | ||||
Debt instrument interest rate | 6.00% | ||||
Privately-held common stock | $ 60,000 | ||||
RRF Limited Partnership [Member] | Weighted Average [Member] | |||||
Percentage of ownership interest held by the trust | 75.89% | 75.89% | |||
RRF Limited Partnership [Member] | General Partner [Member] | |||||
Percentage of ownership interest held by the trust | 75.89% | 75.89% |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation - Schedule of Entity Ownership Percentage (Details) | Apr. 30, 2021 | |
Albuquerque Suite Hospitality, LLC [Member] | Direct Ownership [Member] | ||
IHT OWNERSHIP % | 20.33% | |
Albuquerque Suite Hospitality, LLC [Member] | Indirect Ownership [Member] | ||
IHT OWNERSHIP % | 0.00% | [1] |
Tucson Hospitality Properties, LLLP [Member] | Direct Ownership [Member] | ||
IHT OWNERSHIP % | 0.00% | |
Tucson Hospitality Properties, LLLP [Member] | Indirect Ownership [Member] | ||
IHT OWNERSHIP % | 51.01% | [1] |
RRF Limited Partnership [Member] | Direct Ownership [Member] | ||
IHT OWNERSHIP % | 75.89% | |
RRF Limited Partnership [Member] | Indirect Ownership [Member] | ||
IHT OWNERSHIP % | 0.00% | [1] |
InnSuites Hotels Inc. [Member] | Direct Ownership [Member] | ||
IHT OWNERSHIP % | 100.00% | |
InnSuites Hotels Inc. [Member] | Indirect Ownership [Member] | ||
IHT OWNERSHIP % | 0.00% | [1] |
[1] | Indirect ownership is through the Partnership |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Dec. 16, 2019 | Mar. 31, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2022 | Jan. 31, 2020 | Jun. 18, 2021 | May 13, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Aug. 31, 2020 | Jan. 31, 2019 |
Allowance for doubtful accounts | $ 0 | $ 0 | ||||||||||
Corporate tax returns | 52,000 | $ 175,000 | $ 294,000 | |||||||||
Expected future corporate tax returns | $ 120,000 | |||||||||||
Proceeds from income tax | $ 68,000 | |||||||||||
Aggregate weighted average shares of beneficial for units of partnership | 3,185,746 | |||||||||||
Weighted average incremental shares resulting from unit conversion | 3,185,746 | 3,185,746 | ||||||||||
Advertising expense | $ 45,000 | $ 60,000 | ||||||||||
Debt instrument interest rate | 7.00% | |||||||||||
Investments | $ 700,000 | $ 60,000 | $ 60,000 | |||||||||
Debenture Warrants [Member] | ||||||||||||
Warrants exercise price | $ 1 | |||||||||||
Additional Warrants [Member] | ||||||||||||
Warrants exercise price | $ 2.25 | |||||||||||
UniGen Power Inc. [Member] | ||||||||||||
Debt instrument interest rate | 6.00% | |||||||||||
Debt instrument, conversion price per share | $ 1 | |||||||||||
Number of warrants to purchase common stock | 3,000,000 | |||||||||||
Line of credit | $ 500,000 | |||||||||||
Shares issued upon conversion | 500,000 | |||||||||||
Investments | $ 1,000,000 | $ 2,000,000 | ||||||||||
Shares issued upon exercise of warrant | 60,000 | |||||||||||
Number of common stock shares issued during the period | 60,000 | |||||||||||
UniGen Power Inc. [Member] | Fair Value of Warrants [Member] | ||||||||||||
Investments | $ 300,000 | |||||||||||
UniGen Power Inc. [Member] | Warrant [Member] | ||||||||||||
Number of warrants to purchase common stock | 300,000 | |||||||||||
Warrants exercise price | $ 2.25 | |||||||||||
UniGen Power Inc. [Member] | Debenture Warrants [Member] | Class A Common Stock [Member] | ||||||||||||
Number of warrants to purchase common stock | 1,000,000 | |||||||||||
Warrants exercise price | $ 1 | |||||||||||
UniGen Power Inc. [Member] | Additional Warrants [Member] | ||||||||||||
Line of credit, rate | 100.00% | |||||||||||
Shares issued upon conversion | 1,000,000 | |||||||||||
UniGen Power Inc. [Member] | Additional Warrants [Member] | Class A Common Stock [Member] | ||||||||||||
Number of warrants to purchase common stock | 200,000 | |||||||||||
Warrants exercise price | $ 2.25 | |||||||||||
Line of credit | $ 500,000 | |||||||||||
Convertible Debenture Purchase Agreement [Member] | UniGen Power Inc. [Member] | ||||||||||||
Payments on secured convertible debentures | $ 1,000,000 | |||||||||||
Debt instrument interest rate | 6.00% | |||||||||||
Debt instrument, conversion price per share | $ 1 | |||||||||||
Subsequent Event [Member] | UniGen Power Inc. [Member] | Class A Common Stock [Member] | ||||||||||||
Number of warrants to purchase common stock | 300,000 | |||||||||||
Warrants exercise price | $ 2.25 | |||||||||||
Equity method ownership, percentage | 25.00% | |||||||||||
Three Independent Members [Member] | ||||||||||||
Stock issued during period share-based compensation, shares | 16,000 | |||||||||||
Independent Trustees One [Member] | ||||||||||||
Stock issued during period share-based compensation, shares | 16,000 | |||||||||||
Independent Trustees Two [Member] | ||||||||||||
Stock issued during period share-based compensation, shares | 16,000 | |||||||||||
Independent Trustees Three [Member] | ||||||||||||
Stock issued during period share-based compensation, shares | 16,000 | |||||||||||
90 days [Member] | ||||||||||||
Percentage of allowance for doubtful accounts | 50.00% | |||||||||||
120 days [Member] | ||||||||||||
Percentage of allowance for doubtful accounts | 100.00% | |||||||||||
Performance Shares [Member] | Independent Trustees One [Member] | ||||||||||||
Stock issued during period share-based compensation, shares | 10,000 | |||||||||||
Performance Shares [Member] | Independent Trustees Two [Member] | ||||||||||||
Stock issued during period share-based compensation, shares | 10,000 | |||||||||||
Performance Shares [Member] | Independent Trustees Three [Member] | ||||||||||||
Stock issued during period share-based compensation, shares | 10,000 | |||||||||||
Restricted Stock [Member] | Trust Three Accountants [Member] | Subsequent Event [Member] | ||||||||||||
Stock issued during period share-based compensation, shares | 3,000 | |||||||||||
Restricted Stock [Member] | Three Employees [Member] | Subsequent Event [Member] | ||||||||||||
Stock issued during period share-based compensation, shares | 2,000 | |||||||||||
Building and Improvements [Member] | Maximum [Member] | ||||||||||||
Property, plant and equipment, useful life | 40 years | |||||||||||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||||||||||||
Property, plant and equipment, useful life | 10 years | |||||||||||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||||||||||||
Property, plant and equipment, useful life | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Warrants Valuation Assumptions (Details) | Apr. 30, 2021$ / shares |
Debenture Warrants [Member] | |
Exercise (Strike) price | $ 1 |
Fair value of warrants measurement input, term | 2 years |
Debenture Warrants [Member] | Stock Price [Member] | |
Fair value of warrants measurement input | 2.25 |
Debenture Warrants [Member] | Annualized Risk-free Rate [Member] | |
Fair value of warrants measurement input | 1.630 |
Debenture Warrants [Member] | Annualized Volatility [Member] | |
Fair value of warrants measurement input | 27.43 |
Additional Warrants [Member] | |
Exercise (Strike) price | $ 2.25 |
Fair value of warrants measurement input, term | 3 years |
Additional Warrants [Member] | Stock Price [Member] | |
Fair value of warrants measurement input | 2.25 |
Additional Warrants [Member] | Annualized Risk-free Rate [Member] | |
Fair value of warrants measurement input | 1.630 |
Additional Warrants [Member] | Annualized Volatility [Member] | |
Fair value of warrants measurement input | 27.43 |
Sale of Ownership Interests i_2
Sale of Ownership Interests in Albquerque, and Tucson Subsidiaries (Details Narrative) - USD ($) | Feb. 15, 2017 | Apr. 30, 2021 | Apr. 30, 2020 |
Number of units sold during period, shares | 0 | 1 | |
Number of units sold during period | $ 10,000 | $ 10,000 | |
Albuquerque Suite Hospitality, LLC [Member] | |||
Number of units sold during period, shares | 112 | ||
Number of units were available for sale | 10,000 | ||
Class B [Member] | |||
Number of units sold during period, shares | 200 | 700 | |
Class A [Member] | |||
Number of units sold during period, shares | 250 | ||
Class A, Class B and Class C [Member] | Albuquerque [Member] | Minimum [Member] | |||
Limited liability limited partnership interests | 550 | ||
Class A, Class B and Class C [Member] | Albuquerque [Member] | Maximum [Member] | |||
Limited liability limited partnership interests | 600 | ||
Albuquerque Suite Hospitality, LLC and Tucson Hospitality Properties, LLLP [Member] | |||
Sale price per unit | $ 10,000 | ||
Percentage of hold least outstanding units | 50.10% |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Apr. 30, 2021 | Jan. 31, 2021 | Jan. 31, 2020 |
Property, Plant and Equipment, net | $ 8,064,264 | $ 8,189,850 | |
Hotel Properties [Member] | |||
Total property, plant and equipment | 8,024,526 | $ 17,090,629 | |
Less accumulated depreciation | (9,207,659) | (8,961,498) | |
Property, Plant and Equipment, net | 8,024,526 | 8,129,131 | |
Hotel Properties [Member] | Land [Member] | |||
Total property, plant and equipment | 2,500,000 | 2,500,000 | |
Hotel Properties [Member] | Building and Improvements [Member] | |||
Total property, plant and equipment | 10,525,394 | 10,531,947 | |
Hotel Properties [Member] | Furniture, Fixtures and Equipment [Member] | |||
Total property, plant and equipment | 4,206,791 | 4,058,682 | |
Hotel Properties [Member] | Hotel Properties in Service, net [Member] | |||
Total property, plant and equipment | 17,232,185 | 8,129,131 | |
Property, Plant and Equipment [Member] | |||
Total property, plant and equipment | 166,667 | 248,789 | |
Less accumulated depreciation | (126,929) | (188,070) | |
Property, Plant and Equipment, net | 39,738 | 60,179 | |
Property, Plant and Equipment [Member] | Land [Member] | |||
Total property, plant and equipment | 7,005 | 7,005 | |
Property, Plant and Equipment [Member] | Building and Improvements [Member] | |||
Total property, plant and equipment | 75,662 | 75,662 | |
Property, Plant and Equipment [Member] | Furniture, Fixtures and Equipment [Member] | |||
Total property, plant and equipment | $ 84,000 | $ 166,122 |
Mortgage Notes Payable (Details
Mortgage Notes Payable (Details Narrative) - USD ($) | Dec. 02, 2019 | Jun. 29, 2017 | Apr. 30, 2021 | Jan. 31, 2020 | Jan. 31, 2021 |
Debt instrument maturity description | The mortgage note payable has a scheduled maturity date in June 2042. | ||||
Mortgage notes payable interest rate | 4.69% | 4.69% | |||
Debt instrument interest rate | 7.00% | ||||
Mortgage note payable monthly installments | $ 28,493 | ||||
Financing fees | 16,000 | ||||
Business Loan Agreement [Member] | Tucson Hospitality Properties, LLLP [Member] | |||||
Mortgage facility amount | $ 5,000,000 | ||||
Refinancing mortgage facility amount | $ 3,045,000 | ||||
Business Loan Agreement [Member] | Tucson Oracle Property [Member] | |||||
Debt instrument maturity date | Jun. 19, 2042 | ||||
Mortgage loan face amount | $ 4,551,000 | $ 4,583,000 | |||
Business Loan Agreement [Member] | Tucson Oracle Property [Member] | Prime Rate [Member] | |||||
Debt instrument interest rate | 2.00% | ||||
Business Loan Agreement [Member] | Tucson Oracle Property [Member] | First Five Year and Thereafter [Member] | |||||
Debt instrument interest rate | 4.69% | ||||
Business Loan Agreement [Member] | Yuma Hospitality Properties LP [Member] | Interest Floor Rate [Member] | |||||
Debt instrument interest rate | 4.69% | ||||
Business Loan Agreement [Member] | Albuqureque Suites Hospitality, LLC [Member] | |||||
Mortgage facility amount | $ 1,400,000 | ||||
Debt instrument maturity date | Dec. 2, 2029 | ||||
Mortgage loan face amount | $ 1,355,000 | ||||
Business Loan Agreement [Member] | Albuqureque Suites Hospitality, LLC [Member] | Interest Floor Rate [Member] | |||||
Debt instrument interest rate | 4.90% | ||||
Business Loan Agreement [Member] | Albuqureque Suites Hospitality, LLC [Member] | Prime Rate [Member] | |||||
Debt instrument interest rate | 3.50% | ||||
Business Loan Agreement [Member] | Albuqureque Suites Hospitality, LLC [Member] | First Five Year and Thereafter [Member] | |||||
Debt instrument interest rate | 4.69% |
Notes Payable and Notes Recei_2
Notes Payable and Notes Receivable - Related Party (Details Narrative) - Rare Earth Financial, LLC [Member] - USD ($) | Dec. 02, 2014 | Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | Dec. 30, 2020 |
Line of credit interest rate | 7.00% | ||||
Line of credit maturity date | Aug. 24, 2021 | ||||
Line of credit maximum borrowing capacity | $ 2,000,000 | ||||
Notes payable - related party | $ 990,000 | $ 1,595,000 | |||
Interest income | $ 20,000 | $ 0 |
Other Notes Payable (Details Na
Other Notes Payable (Details Narrative) - USD ($) | Jul. 01, 2019 | Mar. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Mar. 15, 2021 | Mar. 05, 2021 | Mar. 20, 2017 |
Debt instrument interest rate | 7.00% | ||||||
Hayden Loan [Member] | |||||||
Debt instrument interest rate | 4.50% | ||||||
Debt instrument, maturity date | Jun. 30, 2021 | ||||||
Debt description | The loans have been subsequently extended to December 2022. | ||||||
Hayes Loan [Member] | |||||||
Debt instrument, principal amount | $ 270,000 | ||||||
Sweitzer Loans [Member] | |||||||
Debt instrument interest rate | 4.00% | ||||||
Debt instrument, maturity date | Jun. 30, 2021 | ||||||
Debt instrument, principal amount | 100,000 | ||||||
Unsecured loan | $ 100,000 | ||||||
Debt description | The loans have been subsequently extended to December 2022. | ||||||
June 20, 2016, March 1 2017, May 30, 2018, and July 18, 2018 [Member] | Hayden Loan [Member] | |||||||
Unsecured loan | $ 270,000 | ||||||
Tucson Hotel [Member] | |||||||
Debt instrument, principal amount | $ 297,601 | ||||||
Albuquerque Hotel [Member] | |||||||
Debt instrument, principal amount | $ 253,253 | ||||||
Other Notes Payable [Member] | |||||||
Notes payable outstanding to unrelated third parties | $ 40,000 | ||||||
Stock repurchased during period, shares | 146,124 | ||||||
Debt instrument interest rate | 7.00% | ||||||
Debt instrument, maturity date | Jan. 31, 2023 | ||||||
Other Notes Payable [Member] | Individual Lender [Member] | |||||||
Notes payable outstanding to unrelated third parties | $ 200,000 | ||||||
Debt instrument interest rate | 4.50% | ||||||
Debt instrument, maturity date | Jun. 30, 2021 | ||||||
Debt instrument, principal amount | $ 200,000 | ||||||
Paycheck Protection Program, CARES Act [Member] | |||||||
Debt forgiven | $ 87,000 | ||||||
Paycheck Protection Program, CARES Act [Member] | Tucson Hospitality Properties LP [Member] | |||||||
Debt instrument, principal amount | 229,000 | ||||||
Paycheck Protection Program, CARES Act [Member] | Albuquerque Suite Hospitality, LLC [Member] | |||||||
Debt instrument, principal amount | 188,000 | ||||||
Paycheck Protection Program, CARES Act [Member] | InnSuites Hospitality [Member] | |||||||
Debt instrument, principal amount | $ 87,000 | ||||||
Paycheck Protection Program, CARES Act [Member] | Albuquerque Property [Member] | |||||||
Debt forgiven | $ 187,686 | ||||||
PPP Loan [Member] | Tucson Hotel [Member] | |||||||
Debt forgiven | $ 228,602 |
Minimum Debt Payments - Schedul
Minimum Debt Payments - Scheduled of Minimum Payments of Debt (Details) | Apr. 30, 2021USD ($) |
2022 | $ 152,966 |
2023 | 1,748,813 |
2024 | 217,255 |
2025 | 190,932 |
2026 | 752,448 |
2027 | 212,034 |
Thereafter | 4,755,589 |
Long term debt | 8,030,037 |
Mortgages [Member] | |
2022 | 126,519 |
2023 | 174,956 |
2024 | 217,255 |
2025 | 190,932 |
2026 | 201,594 |
2027 | 212,034 |
Thereafter | 4,755,589 |
Long term debt | 5,878,879 |
Other Notes Payable [Member] | |
2022 | 26,447 |
2023 | 583,857 |
2024 | |
2025 | |
2026 | 550,854 |
2027 | |
Thereafter | |
Long term debt | 1,161,158 |
Notes Payable - Related Party [Member] | |
2022 | |
2023 | 990,000 |
2024 | |
2025 | |
2026 | |
2027 | |
Thereafter | |
Long term debt | $ 990,000 |
Description of Beneficial Int_2
Description of Beneficial Interests (Details Narrative) - shares | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Stock repurchase program, remaining number of shares authorized to be repurchased | 0 | 1.21 |
Shares of Beneficial Interest [Member] | ||
Stock repurchased during period, shares | 0 | 17,074 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | |
Revenue | $ 1,399,126 | $ 1,446,078 | |
Hotel Management [Member] | |||
Revenue | $ 0 | ||
General Partner [Member] | |||
Partnership ownership interest percentage | 75.89% | 75.89% | |
Innsuites Hotel Located in Tucson [Member] | |||
Partnership ownership interest percentage | 51.01% | ||
Innsuites Hotel Located in Albuquerque New Mexico [Member] | |||
Partnership ownership interest percentage | 20.67% | ||
Mr. Wirth and Affiliates [Member] | |||
Number of shares held for beneficial interest of trust | 5,876,683 | 5,881,683 | |
Percentage of shares issued and outstanding of beneficial interest | 61.42% | 61.42% | |
Mr. Wirth and Affiliates [Member] | Class B Partnership Units [Member] | |||
Number of partnership unit held for affiliates | 2,974,038 | 2,974,038 | |
Percentage of outstanding partnership units | 22.51% | 22.51% | |
InnSuites Hotels Inc. [Member] | |||
Revenue percentage | 5.00% | ||
Monthly accounting fee | $ 2,000 | ||
Mr. Wirth, Brain James and Affiliates [Member] | |||
Yearly salary | $ 62,000 |
Statements of Cash Flows, Sup_2
Statements of Cash Flows, Supplemental Disclosures (Details Narrative) - USD ($) | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 84,000 | $ 88,000 |
Notes payables - IHT shares | 0 | 21,000 |
Cash paid for taxes | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | |
Restricted cash | $ 0 | $ 0 | |
Membership fees and reservation amount | $ 30,822 | $ 41,000 | |
Tucson Oracle Property [Member] | |||
Percentage of deposit used for capital expenditures | 4.00% |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | Sep. 01, 2017 | Apr. 30, 2021 | Jan. 31, 2021 |
Northpoint Properties [Member] | |||
Operating lease, description | On August 4, 2017, the Trust entered into a five-year office lease agreement with Northpoint Properties for a commercial office lease at 1730 E Northern Ave, Suite 122, Phoenix, Arizona 85020 commencing on September 1, 2017. | ||
Base monthly rent | $ 4,100 | ||
Increases in rent rate yearly | 6.00% | ||
Operating lease, option to terminate | The office lease agreement provides early termination with a 90-day notification with an early termination fee of $12,000, $8,000, $6,000, $4,000, and $2,000 for years 1 - 5 of the lease term. | ||
Operating lease, early termination fee, year one | $ 12,000 | ||
Operating lease, early termination fee, year two | 8,000 | ||
Operating lease, early termination fee, year three | 6,000 | ||
Operating lease, early termination fee, year four | 4,000 | ||
Operating lease, early termination fee, year five | $ 2,000 | ||
Northpoint Properties [Member] | Minimum [Member] | |||
Operating lease term of contract | 1 year | ||
Northpoint Properties [Member] | Maximum [Member] | |||
Operating lease term of contract | 5 years | ||
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. |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) | 3 Months Ended | |
Apr. 30, 2021USD ($) | ||
Leases [Abstract] | ||
Operating lease cost | $ 60,082 | [1] |
Finance Lease Cost: Amortization of lease obligations | 6,937 | |
Finance Lease Cost: Interest on lease obligations | $ 942 | |
[1] | Short term lease costs were immaterial. |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
Apr. 30, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 42,678 | |
Lease Obligations obtained: Operating leases, net | 2,355,275 | |
Lease Obligations obtained: Long-term obligations | 2,295,144 | $ 2,310,745 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases | 7,781 | |
Lease Obligations obtained: Finance leases | 73,138 | |
Lease Obligations obtained: Long-term obligations | $ 44,940 | $ 52,118 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Terms and Discount Rates (Details) | Apr. 30, 2021 |
Leases [Abstract] | |
Weighted-average remaining lease term (years) - Operating leases | 37 years |
Weighted-average discount rate - operating leases | 4.85% |
Weighted average remaining lease term (years) - Finance leases | 2 years 6 months |
Weighted-average discount rate - Finance leases | 4.85% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Lease and Finance Lease (Details) - USD ($) | Apr. 30, 2021 | Jan. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 129,499 | |
2023 | 148,348 | |
2024 | 112,116 | |
2025 | 112,116 | |
2026 | 112,116 | |
Thereafter | 5,039,196 | |
Total future minimum lease payments | 5,653,391 | |
Less imputed interest | 3,298,116 | |
Total present value of minimum payments | 2,355,275 | |
Less: current portion of operating lease liability | 60,131 | $ 58,536 |
Long term portion of operating lease liability | 2,295,144 | 2,310,745 |
2022 | 23,343 | |
2023 | 31,123 | |
2024 | 23,343 | |
Total future minimum lease payments | 77,809 | |
Less: amount representing interest | 4,671 | |
Total present value of minimum payments | 73,138 | |
Less: current portion | 28,198 | 27,858 |
Total present value of minimum payments | $ 44,940 | $ 52,118 |
Share-Based Payments (Details N
Share-Based Payments (Details Narrative) | 3 Months Ended |
Apr. 30, 2021USD ($)shares | |
Value of restricted shares issued | $ | $ 71,280 |
Number of restricted shares | 48,000 |
Independent Trustees One [Member] | |
Number of restricted shares | 16,000 |
Independent Trustees Two [Member] | |
Number of restricted shares | 16,000 |
Independent Trustees Three [Member] | |
Number of restricted shares | 16,000 |
Accountant One [Member] | |
Number of restricted shares | 3,000 |
Accountant Two [Member] | |
Number of restricted shares | 3,000 |
Accountant Three [Member] | |
Number of restricted shares | 3,000 |
Employee One [Member] | |
Number of restricted shares | 2,000 |
Employee Two [Member] | |
Number of restricted shares | 2,000 |
Employee Three [Member] | |
Number of restricted shares | 2,000 |
Three Accountants and Three Employees [Member] | |
Value of restricted shares issued | $ | $ 22,275 |
Number of restricted shares | 15,000 |
Notes Receivable (Details Narra
Notes Receivable (Details Narrative) - USD ($) | Aug. 15, 2018 | Jan. 31, 2020 | Apr. 30, 2021 |
Debt instrument interest rate | 7.00% | ||
Impairment charges | $ 825,000 | ||
IBC Hotels, LLC [Member] | |||
Debt instrument, principal amount | $ 2,750,000 | ||
Debt instrument interest rate | 30.00% | ||
Debt description | If after effective date IBC closes an equity transaction with net proceeds to IBC in excess of $2,500,000, IBC/Buyer shall 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. | ||
IBC Hotels, LLC [Member] | Promissory Notes [Member] | |||
Debt instrument, principal amount | $ 2,750,000 | ||
Debt instrument interest rate | 3.75% | ||
Impairment charges | $ 825,000 | ||
Debt description | No interest accrued through November 2021. Payments on the note receivable include principal and interest beginning in November 2021. 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. |
Notes Receivable - Schedule of
Notes Receivable - Schedule of Future Payments of Debt (Details) - USD ($) | Apr. 30, 2021 | Jan. 31, 2020 |
Less: current portion of note receivable | $ 137,500 | $ 91,667 |
Long term portion of note receivable | 1,787,500 | $ 1,833,333 |
Notes Receivable [Member] | ||
2022 | 137,500 | |
2023 | 550,000 | |
2024 | 550,000 | |
2025 | 550,000 | |
Thereafter | 965,500 | |
Total | 2,750,000 | |
Impairment | (825,000) | |
Notes receivable | 1,925,000 | |
Less: current portion of note receivable | 137,500 | |
Long term portion of note receivable | $ 1,787,500 |
Stock Options (Details Narrativ
Stock Options (Details Narrative) | Feb. 05, 2015shares |
Board of Trustees [Member] | 2015 Equity Incentive Plan [Member] | |
Shares of beneficial interest of trust are authorized to issued | 1,600,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | Apr. 30, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred tax assets | $ 4,300,000 |
Cumulative net operating loss carryforwards | 1,300,000 |
Syndications | 2,900,000 |
Deferred tax liability | 1,500,000 |
Valuation allowance | $ 2,800,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | May 05, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | Jul. 31, 2021 | Jun. 28, 2021 | Feb. 28, 2021 | Dec. 16, 2019 |
Interest income | $ 88 | $ 17,756 | |||||
Dividends paid | $ .01 | ||||||
Forecast [Member] | |||||||
Dividends payable,per share | $ .01 | ||||||
Subsequent Event [Member] | |||||||
Dividends payable,per share | $ .02 | ||||||
UniGen Power Inc. [Member] | |||||||
Number of warrants to purchase common stock | 3,000,000 | ||||||
UniGen Power Inc. [Member] | Warrant [Member] | |||||||
Number of warrants to purchase common stock | 300,000 | ||||||
UniGen Power Inc. [Member] | Subsequent Event [Member] | |||||||
Interest income | $ 15,000 | ||||||
UniGen Power Inc. [Member] | Subsequent Event [Member] | Warrant [Member] | |||||||
Warrant exercise | 15,000 | ||||||
UniGen Power Inc. [Member] | Subsequent Event [Member] | Shares of Beneficial Interest [Member] | |||||||
Number of warrants to purchase common stock | 15,000 |