INNSUITES HOSPITALITY TRUST

Previous wording

The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto for the first two Fiscal Quarters of Fiscal 2026, appearing elsewhere in this Form 10-Q and our audited consolidated Form 10-K for the fiscal year ended January 31, 2025.

Current wording

The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto for the first three Fiscal Quarters of Fiscal 2026, appearing elsewhere in this Form 10-Q and our audited consolidated Form 10-K for the fiscal year ended January 31, 2025.

Previous wording

We do not undertake any obligation to update publicly or revise any forward-looking statements whether as a result of new information, future events or otherwise except as may be required by law. Pursuant to Section 21E(b)(2)(E) of the Securities Exchange Act of 1934, as amended, the qualifications set forth hereinabove are inapplicable to any forward-looking statements in this Form 10-K relating to the operations of the Partnership.

Current wording

We do not undertake any obligation to update publicly or revise any forward-looking statements whether as a result of new information, future events or otherwise except as may be required by law. Pursuant to Section 21E(b)(2)(E) of the Securities Exchange Act of 1934, as amended, the qualifications set forth hereinabove are inapplicable to any forward-looking statements in this Form 10-Q relating to the operations of the Trust.

Previous wording

In addition, we now manage InnDependent Boutique Collection Hotels, (IBC Hotels, LLC), offering reservations and branding services to independent hotels, with new technology reservations and booking engine technology provided, and with an option to purchase IBC Hotels, LLC, at cost over the next five years. We hold a diversification investment in UniGen Power Inc., which is developing an efficient clean energy portable efficient electricity generator innovation.

Current wording

In addition, we now manage InnDependent Boutique Collection Hotels, (IBC Hotels, LLC), offering reservations and branding services to independent hotels, with new technology reservations and booking engine technology provided, and with an IHT option to purchase IBC Hotels, LLC, at cost over the next five years. We hold a diversification investment in UniGen Power Inc., which is developing an efficient clean energy portable efficient electricity generator innovation.

Previous wording

Trust operations consist of one reportable segment – Hotel Ownership & Management Services. Hotel Ownership Operations derives its revenue from the ownership and operation of the Trust’s two hotel properties with an aggregate of 270 hotel suites in Arizona and New Mexico. Hotel management services, provides hotel and IBC Hotel management services including the Trust’s two Hotels. As part of our management services, we also provide trademark and licensing services.

Current wording

Trust operations consist of one reportable segment – Hotel Ownership & Management Services. Hotel Ownership Operations derives its revenue from the ownership and operation of the Trust’s two hotel properties with an aggregate of 270 hotel suites in Arizona and New Mexico. Hotel management services provides IBC Hotel management services, including those of the Trust’s two Hotels. As part of our management services, we also provide trademark and licensing services.

Previous wording

Our results are significantly affected by the overall economy and travel, occupancy and room rates at the Hotels, our ability to manage costs, changes in room rates, and changes in the number of available suites caused by the Trust’s disposition activities. Results are also significantly impacted by overall economic conditions and conditions in the travel industry. Unfavorable changes in these factors, such as tariff uncertainty, or the virus-related travel slowdown, can and have negatively impacted hotel room demand and pricing, which reduces our profit margins. Additionally, our ability to manage costs could be adversely impacted by significant inflationary increases in operating expenses, resulting in lower operating margins, and higher hourly labor costs. Further increases in area hotel supply, hourly labor cost, declines in demand, or declines in room rates, could result in increased competition, which could have an adverse effect on the rates, revenue, costs, and profits of the Hotels in their respective markets.

Current wording

Our results are significantly affected by the overall economy and travel, occupancy and room rates at the Hotels, our ability to manage costs, changes in room rates, and changes in the number of available suites caused by the Trust’s disposition activities. Results are also significantly impacted by overall economic conditions and conditions in the travel industry. Unfavorable changes in these factors, such as tariff uncertainty, or the virus-related travel slowdown, can and have negatively impacted hotel room demand and pricing, which reduces our profit margins. Additionally, our ability to manage costs could be adversely impacted by significant inflationary increases in operating expenses, resulting in lower operating margins, and higher hourly labor costs. Further increases in area hotel supply, hourly labor cost, declines in demand, or declines or failure to keep up with inflation of room rates, could result in increased competition, which could have an adverse effect on the rates, revenue, costs, and profits of the Hotels in their respective markets.

Previous wording

Over time, we expect our high risk but also high profit potential UniGen diversification efficient clean energy generation investment, to grow and provide a substantial source of income in the future. We are also optimistic for the high profit potential from IBC management, and the five-year option to purchase IBC at cost.

Current wording

Over time, we expect our high risk but also high profit potential UniGen diversification efficient clean energy generation investment, to grow and provide a substantial source of income in the future. We are also optimistic for the high profit potential from IBC management, with the five-year option to purchase IBC at cost.

Previous wording

For the six months ended July 31, 2025, we had total revenue of approximately $4.0 million compared to approximately $4.1 million for the six months ended July 31, 2025, a decrease of approximately $0.1 million. In the prior fiscal years ended January 31, 2025, 2024 and 2023, we made significant improvements to our Albuquerque, New Mexico and Tucson, Arizona hotels. During the six months ended July 31, 2025, we had an increase in total revenue, benefitting from prior refurbishments.

Current wording

For the nine months ended October 31, 2025, we had total revenue of approximately $5.81 million compared to approximately $5.96 million for the nine months ended October 31, 2024, a decrease of approximately $0.2 million. In the prior Fiscal Years ended January 31, 2023, 2022 and 2021, we made significant improvements to our Albuquerque, New Mexico and Tucson, Arizona hotels. During the nine months ended October 31, 2025, we had an increase in total revenue, benefitting from prior refurbishments.

Previous wording

Total Consolidated Net Loss for the three months ended July 31, 2025 was approximately $401,000 compared to approximately $410,000 for the three months ended July 31, 2024, an improvement of approximately $9,000. Earnings Per Share based on this Consolidated Net Loss amount were $0.05, slightly higher than the prior year of $0.04. Earnings Per Share based on net loss attributable to Controlling Interest were $0.04, similar to the prior year similar three month period of $0.04.

Current wording

Total Consolidated Net Loss for the nine months ended October 31, 2025 was approximately $714,000, compared to Consolidated Net Loss of approximately $557,000 for the nine months ended October 31, 2024, a decrease of approximately $157,000. Loss Per Share based on this Consolidated Net Loss amount was ($0.08), down $0.02 from the prior year Loss Per Share of $0.06, which is a decrease of 29%. Loss Per Share based on net loss attributable to Controlling Interest was $0.10, down from the prior year net loss per share of $0.09.

Previous wording

Total Trust Equity decreased to approximately $198,000 at the end of Fiscal Second Quarter 2025, down approximately $1.7 million, from the approximately $1.96 million reported at the end of the first 6 months in the prior fiscal year 2024. Net Loss before non-cash depreciation expense was approximately $142,000 for the six months ended July 31 2025, compared to Net Loss before non-cash depreciation expense of approximately $181,000 for the six months ended July 31, 2024, which is an improvement of approximately $39,000.

Current wording

Total Trust Equity decreased to approximately ($147,000) at the end of the nine months in the current Fiscal Year 2025, down approximately $1.8 million, from approximately $1,651,000 reported at the end of the nine months in the prior Fiscal Year 2024. Net loss before non-cash depreciation expense was approximately $291,000 for the nine months ended October 31, 2025, compared to net loss before non-cash depreciation of expense of approximately $307,000 for the nine months ended October 31, 2024, which is a decrease of approximately $16,000.

Previous wording

We realized a 4% decrease in room revenues during the six months ended July 31, 2025 as room revenues were approximately $3.85 million for the six months ending July 31, 2025 as compared to approximately $4.01 million for the six months ending July 31, 2024. During the balance of Fiscal Year 2025, we expect stable hotel occupancy, and modest improvements in hotel rates.

Current wording

We realized a 3% decrease in room revenues during the nine months ended October 31, 2025, as room revenues were approximately $5.58 million for the nine months ending October 31, 2025 as compared to approximately $5.76 million for the nine months ending October 31, 2024. During the balance of Fiscal Year 2025, we expect stable hotel occupancy, and modest improvements in hotel rates.

Previous wording

Total expenses net of interest expense was approximately $4.25 million for the six months ended July 31, 2025 reflecting an increase of approximately $0.35 million, or 9%, compared to total expenses net of interest expense of approximately $3.90 million for the six months ended July 31, 2024. The increase was primarily due to an increase in operating expenses related to increased occupancy and revenues at the hotel properties.

Current wording

Total expenses net of interest expense was approximately $6.01 million for the nine months ended October 31, 2025, reflecting a decrease of approximately $0.21 million, or 3%, compared to total expenses net of interest expense of approximately $6.21 million for the nine months ended October 31, 2024. The decrease was primarily due to an decrease in operating expenses related to general and administrative expenses.

Previous wording

Room expenses consisting of payroll and related employment taxes for property management, front office, housekeeping personnel, reservation fees and room supplies were approximately $1.31 million for the six months ended July 31, 2025 compared to approximately $1.36 million in the prior year six month period for a decrease of approximately $57,000, or 4%. Room expenses decreased as occupancy at the hotels decreased.

Current wording

Room expenses consisting of salaries and related employment taxes for property management, front office, housekeeping personnel, reservation fees and room supplies were approximately $1.93 million for the nine months ended October 31, 2025, flat compared to approximately $1.93 million in the prior year nine month period.

Previous wording

Food and beverage expenses included food and beverage costs, personnel and miscellaneous costs to provide banquet events. For the six months ended July 31, 2025, food and beverage expenses increased approximately $4,000, or 8%, to approximately $55,000 for the six months ended July 31, 2025, compared to approximately $51,000 for the six months ended July 31, 2024. The increase in cost is consistent with the increase in food and beverage revenue.

Current wording

Food and beverage expenses included food and beverage costs, personnel, and miscellaneous costs to provide banquet events. For the nine months ended October 31, 2025, food and beverage expenses increased approximately $10,000, or 14%, to approximately $81,000 for the nine months ended October 31, 2025, compared to approximately $71,000 for the nine months ended October 31, 2024. The increase in cost is due to the increase in food and beverage revenue.

Previous wording

General and administrative expenses include overhead charges for management, accounting, shareholder and legal services. General and administrative expenses of approximately $0.99 million for the six months ended July 31, 2025, decreased approximately $127,000 from approximately $1.12 million for the six months ended July 31, 2024 primarily due to cost cuts in corporate staffing in support of the hotels and property sales efforts.

Current wording

General and administrative expenses include overhead charges for management, accounting, shareholder and legal services. General and administrative expenses of approximately $1.52 million for the nine months ended October 31, 2025, decreased approximately $138,000 from approximately $1.66 million for the nine months ended October 31, 2024, primarily due to less charges in corporate staffing in support of the hotels and property sales efforts.

Previous wording

Sales and marketing expense decreased approximately $28,000, or 21%, to approximately $107,000 for the three months ended July 31, 2025 from approximately $135,000 for the three months ended July 31, 2024.

Current wording

Sales and marketing expense decreased approximately $15,000, or 4%, to approximately $335,000 for the nine months ended October 31, 2025, from approximately $349,000 for the nine months ended October 31, 2024.

Previous wording

Repairs and maintenance expense remained relatively flat at approximately $217,000 for the six months ended July 31, 2025 compared to approximately $215,000 for the six months ended July 31, 2024. Having completed the property improvements at our Tucson, Arizona hotel Management anticipates the improvements which complies with the increasing Best Western standards, will (after the adverse effects of travel restrictions and slowdown), lead to improvement in guest satisfaction and will drive additional revenue growth through increased occupancy and increased rates.

Current wording

Repairs and maintenance expense increased from approximately $313,000 reported for the nine months ended October 31, 2024, compared to approximately $329,000 for the nine months ended October 31, 2025. Having completed the property improvements at our Tucson, Arizona hotel Management anticipates the improvements which complies with the increasing Best Western standards, will (after the adverse effects of travel restrictions and slowdown), lead to improvement in guest satisfaction and will drive additional revenue growth through increased occupancy and increased rates.

Previous wording

Hotel property depreciation expenses increased by approximately $24,000 from approximately $346,000 reported for the six months ended July 31, 2024 compared to approximately $371,000 for the six months ended July 31, 2025. Increased depreciation resulted from additional capital expenditures.

Current wording

Hotel property non-cash depreciation expenses increased by approximately $41,000 from approximately $521,000 reported for the nine months ended October 31, 2024, compared to approximately $562,000 for the nine months ended October 31, 2025. Increased depreciation resulted from additional capital expenditures being depreciated.

Previous wording

Real estate and personal property taxes, Insurance and Ground Rent expenses decreased approximately $37,000, or 10%, to approximately $327,000 reported for the six months ended July 31, 2025 compared with approximately $364,000 for the six months ended July 31, 2024.

Current wording

Real estate and personal property taxes, Insurance and Ground Rent expenses decreased approximately $112,000, or 19%, to approximately $463,000 reported for the nine months ended October 31, 2025 compared with approximately $575,000 for the nine months ended October 31, 2024 due to adjustments in our operating lease accounts.

Previous wording

For the three months ended July 31, 2025, we had total revenue of approximately $1.79 million compared to approximately $1.84 million for the three months ended July 31, 2024, a decrease of approximately $0.05 million. In the prior fiscal years ended January 31, 2023, 2022 and 2020, we made significant improvements to our Albuquerque, New Mexico and Tucson, Arizona hotels. During the three months ended July 31, 2025, we had an increase in total revenue benefitting from prior refurbishments, and increased internet marketing.

Current wording

For the three months ended October 31, 2025, we had total revenue of approximately $1.81 million, which is relatively flat compared to approximately $1.82 million for the three months ended October 31, 2024. In the prior fiscal years ended January 31, 2023, 2022 and 2021, we made significant improvements to our Albuquerque, New Mexico and Tucson, Arizona hotels. During the three months ended October 31, 2025, we had an increase in total revenue benefitting from prior refurbishments, and increased internet marketing.

Previous wording

Total Consolidated Net Loss for the six months ended July 31, 2025 was approximately $362,000 compared to Total Consolidated Net Loss of approximately $331,000 for the six months ended July 31, 2024, an increase of approximately $31,000. Earnings Per Share based on this Consolidated Net Loss amount were ($0.04), similar to the prior year of ($0.04). Earnings Per Share based on net loss attributable to Controlling Interest were ($0.06), similar to the prior year of ($0.06).

Current wording

Total Consolidated Net Loss for the three months ended October 31, 2025 was approximately $352,000, compared to Consolidated Net Loss of approximately $217,000 for the three months ended October 31, 2024, a decrease of approximately $135,000. Earnings Per Share based on this Consolidated Net Loss were down $0.04 compared to the prior year similar three month period of $0.02. Earnings Per Share based on Net loss attributable to Controlling Interest was $0.04, down $0.01 compared to the prior year similar three month period of $0.03.

Previous wording

Net Loss before non-cash depreciation expense was approximately $213,000 for the three months ended July 31 2025, compared to Net Loss before non-cash depreciation expense of approximately $237,000 for the three months ended July 31, 2024, which is an improvement of approximately $24,000.

Current wording

Net Loss before non-cash depreciation expense was approximately $160,000 for the three months ended October 31, 2025, compared to Net Loss before non-cash depreciation expense of approximately $43,000 for the three months ended October 31, 2024, which is a decrease of approximately $118,000.

Previous wording

We realized a 3% decrease in room revenues during the three months ended July 31, 2025 as room revenues were approximately $1.72 million for the three months ending July 31, 2025 as compared to approximately $1.77 million for the three months ending July 31, 2024. During Fiscal Year 2024, we expect additional improvements in occupancy, modest improvements in rates and steady food and beverage revenues.

Current wording

Room revenue remained relatively flat during the three months ended October 31, 2025 as room revenues were approximately $1.81 million for the three months ending October 31, 2025 as compared to approximately $1.82 million for the three months ending October 31, 2024. During Fiscal Year 2026, we expect additional improvements in occupancy, modest improvements in rates and steady food and beverage revenues.

Previous wording

Total expenses net of interest expense was approximately $2.04 million for the three months ended July 31, 2025 reflecting a decrease of approximately $0.89 million, or 4%, compared to total expenses net of interest expense of approximately $2.13 million for the three months ended July 31, 2024.

Current wording

Total expenses net of interest expense were approximately $1.99 million for the three months ended October 31, 2025 compared to total expenses net of interest expense of approximately $1.96 million for the three months ended October 31, 2024.

Previous wording

Room expenses consisting of salaries and related employment taxes for property management, front office, housekeeping personnel, reservation fees and room supplies were approximately $647,000 for the three months ended July 31, 2025 compared to approximately $700,000 in the prior year three month period for a decrease of approximately $53,000, or 8%. Room expenses decreased as occupancy at the hotels decreased, and decreased expenses were incurred with the decreased occupancy.

Current wording

Room expenses consisting of salaries and related employment taxes for property management, front office, housekeeping personnel, reservation fees and room supplies were approximately $628,000 for the three months ended October 31, 2025 compared to approximately $570,000 in the prior year three month period for an increase of approximately $57,000, or 10%. Room expenses increased due to some additional seasonal staffing, while occupancy remained relatively flat overall.

Previous wording

Food and beverage expenses included food and beverage costs, personnel and miscellaneous costs to provide banquet events. For the three months ended July 31, 2025, food and beverage expenses decreased approximately $6,000, or 26%, to approximately $29,000 for the three months ended July 31, 2025, compared to approximately $23,000 for the three months ended July 31, 2024.

Current wording

Food and beverage expenses included food and beverage costs, personnel and miscellaneous costs to provide banquet events. For the three months ended October 31, 2025, food and beverage expenses were approximately $26,000 for the three months ended October 31, 2025, compared to approximately $20,000 for the three months ended October 31, 2024.

Previous wording

General and administrative expenses include overhead charges for management, accounting, shareholder and legal services. General and administrative expenses of approximately $531,000 for the three months ended July 31, 2025, decreased approximately $12,000 from approximately $519,000 for the three months ended July 31, 2024 primarily due to reduction in corporate staffing in support of the hotels and property sales efforts.

Current wording

General and administrative expenses include overhead charges for management, accounting, shareholder and legal services. General and administrative expenses of approximately $525,000 for the three months ended October 31, 2025, decreased approximately $11,000 from approximately $536,000 for the three months ended October 31, 2024 primarily due to savings initiatives at corporate staffing in support of the hotels and property sales efforts.

Previous wording

Repairs and maintenance expense remained relatively flat at $110,000 reported for the three months ended July 31, 2024 compared to approximately $108,000 for the three months ended July 31, 2025. Having completed the property improvements at our Tucson, Arizona hotel Management anticipates the improvements which complies with the increasing Best Western standards, will (after the adverse effects of travel restrictions and slowdown), lead to improvement in guest satisfaction and will drive additional revenue growth through increased occupancy and increased rates.

Current wording

Repairs and maintenance expense increased from approximately $98,000 reported for the three months ended October 31, 2024 compared to approximately $112,000 for the three months ended October 31, 2025. Having completed the property improvements at our Tucson, Arizona hotel Management anticipates the improvements which complies with the increasing Best Western standards, will (after the adverse effects of travel restrictions and slowdown), lead to improvement in guest satisfaction and will drive additional revenue growth through increased occupancy and increased rates.

Previous wording

Utility expense decreased by approximately $10,000 or 9% from approximately $110,000 reported for the three months ended July 31, 2024 compared to approximately $100,000 for the three months ended July 31, 2025.

Current wording

Utility expenses increased by approximately $10,000, or 10%, from approximately $104,000 reported for the three months ended October 31, 2024 to approximately $114,000 for the three months ended October 31, 2025.

Previous wording

Hotel property depreciation expenses increased by approximately $15,000 from approximately $173,000 reported for the three months ended July 31, 2024 compared to approximately $188,000 for the three months ended July 31, 2025. Increased depreciation resulted from additional capital expenditures.

Current wording

Hotel property depreciation expenses increased by approximately $17,000 from approximately $175,000 reported for the three months ended October 31, 2024 compared to approximately $192,000 for the three months ended October 31, 2025. Increased depreciation resulted from an increase in depreciation for additional capital expenditures.

Previous wording

Real estate and personal property taxes, Insurance and Ground Rent expenses decreased approximately $33,000, or 16%, to approximately $169,000 reported for the three months ended July 31, 2025 compared with approximately $202,000 for the three months ended July 31, 2024.

Current wording

Real estate and personal property taxes, Insurance and Ground Rent expenses decreased approximately $74,000, or 35%, to approximately $136,000 reported for the three months ended October 31, 2025 compared with approximately $211,000 for the three months ended October 31, 2024 due to adjustments in our operating lease accounts.

Previous wording

Hotel operations were positively affected by improved occupancy and substantially increased room rates at the Hotels in the Fiscal Year 2025, and stable occupancy, rates, and cost controls the First Two Fiscal Quarters of Fiscal 2026, ended July 31, 2025, as the travel industry momentum stabilizes.

Current wording

Hotel operations were positively affected by improved occupancy and substantially increased room rates at the Hotels in the Fiscal Year 2025, and stable occupancy, rates, and cost controls the First Three Fiscal Quarters of Fiscal 2026, ended October 31, 2025, as inflation and the travel industry momentum stabilizes.

Previous wording

With approximately $0.2 million of cash as of July 31, 2025, hotel and management fee income, the availability of three bank lines of credit, approximately $300,000 related party Demand/Revolving Line of Credit/Promissory Note, and the availability of Advances to Affiliate credit facilities and available Bank line of Credit, we believe that we will have enough cash on hand to meet all of our financial obligations as they become due for the next twelve months and beyond, from the issuance date of the these consolidated financial statements. Our management is analyzing other strategic options available to us, including raising additional funds, asset sales, and benefitting from clean energy and/or IBC investments, potential increase of affiliate line of credit financing, and cash flow as our diversification investment matures. However, such transactions may not be available on terms that are favorable to us, or at all.

Current wording

With approximately $0.1 million of cash as of October 31, 2025, hotel and management fee income, the availability of three bank lines of credit, approximately $300,000 related party Demand/Revolving Line of Credit/Promissory Note, we believe that we will have enough cash on hand to meet all of our financial obligations as they become due for the next twelve months and beyond, from the issuance date of the these consolidated financial statements. Our management is analyzing other strategic options available to us, including raising additional funds, asset sales, and benefitting from clean energy and/or independent travel investments, potential increase of affiliate line of credit financing, and improved cash flow as our diversification investment matures. However, such transactions may not be available on terms that are favorable to us, or at all.

Previous wording

Cash provided by operating activities from continuing operations totaled approximately $127,000 during the six months ended July 31, 2025 as compared to net cash used of approximately 504,000 during the six months ended July 31, 2024. Consolidated net loss was approximately $362,000 for the six months ended July 31, 2025 as compared to consolidated net loss for the six months ended July 31, 2024 of approximately $331,000. Explanation of the differences between these fiscal years are explained above in the results of operations of the Trust.

Current wording

Cash used in operating activities totaled approximately $18,000 during the nine months ended October 31, 2025 as compared to net cash used of approximately $651,000 during the nine months ended October 31, 2024. Consolidated net loss was approximately $714,000 for the nine months ended October 31, 2025 as compared to consolidated net loss for the nine months ended October 31, 2024 of approximately $557,000. Explanation of the differences between these Fiscal Years are explained above in the results of operations of the Trust.

Previous wording

Changes in the adjustments to reconcile net income for the six months ended July 31, 2025 and 2024, respectively, consist primarily of operating lease costs, stock-based compensation, hotel property depreciation, and changes in assets and liabilities. Hotel property non-cash depreciation was approximately $371,000 during the six months ended July 31, 2025 compared to approximately $346,000 during the six months ended July 31, 2024, an increase of $25,000 as the Trust recognized additional depreciation due to capital expenditures.

Current wording

Changes in the adjustments to reconcile net income for the nine months ended October 31, 2025 and 2024, respectively, consist primarily of operating lease costs, stock-based compensation, hotel property depreciation, and changes in assets and liabilities. Hotel property non-cash depreciation was approximately $562,000 during the nine months ended October 31, 2025 compared to approximately $521,000 during the nine months ended October 31, 2024, an increase of $41,000 as the Trust recognized more depreciation for the increase of additional capitalized fixed assets.

Previous wording

Changes in assets and liabilities for accounts receivable, prepaid expenses and other assets and accounts payable and accrued expenses totaled approximately $105,000 and ($519,000) for the six months ended July 31, 2025 and 2024, respectively. This significant increase in changes in assets and liabilities for the six months ended July 31, 2025 compared to the six months ended July 31, 2024 was due to the increase in operating liabilities related to ongoing operations.

Current wording

Changes in assets and liabilities for accounts receivable, prepaid expenses and other assets and accounts payable and accrued expenses totaled approximately $114,000 and ($615,000) for the nine months ended October 31, 2025 and 2024, respectively. This significant decrease in changes in assets and liabilities for the nine months ended October 31, 2025 compared to the nine months ended October 31, 2024 was due to the decrease in operating liabilities related to ongoing operations.

Previous wording

Net cash used in investing activities totaled approximately $415,000 for the six months ended July 31, 2025 compared to net cash used in investing activities of approximately $287,000 for the six months ended July 31, 2024. The increase in net cash used in activities during the six months ended July 31, 2025 was due primarily due to improvements and additions to the hotel properties.

Current wording

Net cash used in investing activities totaled approximately $379,000 for the nine months ended October 31, 2025 compared to net cash used in investing activities of approximately $368,000 for the nine months ended October 31, 2024. The increase in net cash used in activities during the nine months ended October 31, 2025 was due primarily due to more capital improvements to our Hotel Properties as the Trust watched costs and cash flows.

Previous wording

Net cash provided by (used in) financing activities totaled approximately $402,000 and ($116,000), respectively, for the six months ended July 31, 2025 and 2024. The increase of approximately $518,000 was primarily due to borrowing on Notes Payable – Related Party.

Current wording

Net cash provided by financing activities totaled approximately $518,000 and $145,000, respectively, for the nine months ended October 31, 2025 and 2024. The increase of approximately $373,000 was primarily due to freezing non-controlling interest distributions.

Previous wording

Principal payments on mortgage notes payable for continuing operations was approximately $144,000 and $117,000 during the six months ended July 31, 2025 and 2024, respectively.

Current wording

Principal payments on mortgage notes payable for continuing operations was approximately $202,000 and $157,000 during the nine months ended October 31, 2025 and 2024, respectively.

Previous wording

Payments on notes payables–related party, netted against borrowings on note payable–related party, was approximately $564,000 and $365,000 of cash provided in financing activities during the six months ended July 31, 2025 and 2024, respectively.

Current wording

Borrowing and payments on notes payables–related party, netted against borrowings on note payable–related party, was approximately $818,000 and $750,000 of cash provided by financing activities during the nine months ended October 31, 2025 and 2024, respectively.

Previous wording

During the six months ended July 31, 2025, our distributions to non-controlling interest holders was $0 compared with approximately $229,000 for the six months ended July 31, 2024.

Current wording

During the nine months ended October 31, 2025, our distributions to non-controlling interest holders was approximately $0 compared with approximately $312,000 for the nine months ended October 31, 2024.