2025 Q1 - Quarterly Report

UNITEDSTATES SECURITIESANDEXCHANGECOMMISSION WASHINGTON,D.C.20549 FORM10-Q QUARTERLYREPORTPURSUANTTOSECTION13OR15(d) OFTHESECURITIESEXCHANGEACTOF1934FORTHEQUARTERLYPERIODENDEDAPRIL30,2024 CommissionFileNumber1-7062 INNSUITESHOSPITALITYTRUST (Exactnameofregistrantasspecifiedinitscharter) Ohio34-6647590 (Stateorotherjurisdiction ofincorporationororganization) (I.R.S.EmployerIdentificationNumber) InnSuitesHospitalityCentre1730E.NorthernAvenue,Suite122 Phoenix,AZ85020 (Addressofprincipalexecutiveoffices)Registrant’stelephonenumber,includingareacode:(602)944-1500 Indicatebycheckmarkwhethertheregistrant:(l)hasfiledallreportsrequiredtobefiledbySection13orl5(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.Yes☐No☒ IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuchfiles).☐Yes☒No Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct.(Checkone): Largeacceleratedfiler ☐ Acceleratedfiler ☐ Non-acceleratedfiler ☒ Smallerreportingcompany ☒ Emerginggrowthcompany ☐ Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct☐ Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheExchangeAct).Yes☐No☒ IfsecuritiesareregisteredpursuanttoSection12(b)oftheAct,indicatebycheckmarkwhetherthefinancialstatementsoftheregistrantincludedinthefilingreflectthecorrectionofanerrortopreviouslyissuedfinancialstatements.☐ Indicatebycheckmarkwhetheranyofthoseerrorcorrectionsarerestatementsthatrequiredarecoveryanalysisofincentive-basedcompensationreceivedbyanyoftheregistrant’sexecutiveofficersduringtherelevantrecoveryperiodpursuantto§240.10D-1(b).☐ AggregatemarketvalueofSharesofBeneficialInterestheldbynon-affiliatesoftheregistrantasofJuly31,2023,basedupontheclosingsalespriceoftheregistrant’sSharesofBeneficialInterestonthatdate,asreportedontheNYSEAMERICAN: $5,352,582. NumberofoutstandingSharesofBeneficialInterest,withoutparvalue,asofJune18,2024:9,023,806. SecuritiesregisteredpursuanttoSection12(b)oftheAct: Titleofeachclass TradingSymbol(s) Nameofeachexchangeonwhichregistered Sharesofbeneficialinterestwithoutparvalue IHT NYSE-American TABLEOFCONTENTS FORTHEQUARTERLYPERIODENDEDAPRIL30,2024 PageNo. PARTI.FINANCIALINFORMATION Item1 FinancialStatements 3 CondensedConsolidatedBalanceSheets–January31,2024andApril30,2024(unaudited) 3 CondensedConsolidatedStatementsofOperations–ThreeMonthsEndedApril30,2024andApril30,2023(unaudited) 4 CondensedConsolidatedStatementsofShareholders’Equity–ThreeMonthsEndedApril30,2024andApril30,2023(unaudited) 5 CondensedConsolidatedStatementsofCashFlows–ThreeMonthsendedApril30,2024andApril30,2023(unaudited) 6 NotestoCondensedConsolidatedFinancialStatements(unaudited) 7 Item2 Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 26 Item3 QuantitativeandQualitativeDisclosuresAboutMarketRisk 41 Item4 ControlsandProcedures 41 PARTII.OTHERINFORMATION Item1 LegalProceedings 43 Item1A RiskFactors 43 Item2 UnregisteredSalesofEquitySecuritiesandUseofProceeds 43 Item3 DefaultsUponSeniorSecurities 44 Item4 MineSafetyDisclosures 44 Item5 OtherInformation 44 Item6 Exhibits 44 Signature 45 ExhibitIndex 2 PARTIFINANCIALINFORMATION ITEM1.FINANCIALSTATEMENTSINNSUITESHOSPITALITYTRUSTANDSUBSIDIARIES UNAUDITEDCONDENSEDCONSOLIDATEDBALANCESHEETS APRIL30,2024JANUARY31,2024 ASSETS CurrentAssets: Cash $437,343 $1,325,368 AccountsReceivable 134,146 111,946 EmployeeRetentionCreditReceivable 1,233,527 1,233,527 PrepaidExpensesandOtherCurrentAssets 773,108 310,891 TotalCurrentAssets 2,578,124 2,981,732 PropertyandEquipment,net 7,028,976 7,051,192 NotesReceivable(net) 1,925,000 1,925,000 OperatingLease–RightofUse 2,083,575 2,088,693 ConvertibleNoteReceivable 1,000,000 1,000,000 InvestmentinPrivateCompanyStock 668,750 633,750 TOTALASSETS $15,284,425 $15,680,367 LIABILITIESANDSHAREHOLDERS’EQUITY LIABILITIES CurrentLiabilities: AccountsPayableandAccruedExpenses $816,040 $1,049,530 CurrentPortionofMortgageNotesPayable,netofDiscount 230,921 230,921 CurrentPortionofOtherNotesPayable 470,000 470,000 CurrentPortionofOperatingLeaseLiability 25,847 6,268 TotalCurrentLiabilities 1,542,808 1,756,719 MortgageNotesPayable,netofDiscount 8,954,995 9,019,664 OperatingLeaseLiability,netofcurrentportion 2,223,225 2,249,07