XML 44 R31.htm IDEA: XBRL DOCUMENT

Discontinued Operations

12 Months Ended

Jan. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

25. DISCONTINUED OPERATIONS

On August 1, 2015, the Trust finalized and committed to a plan to sell all the hotel properties. As of May 1, 2016, the Trust listed all the Hotel properties with a local real estate hotel broker, and management believes that each of the assets is being marketed at a price that is reasonable in relation to its current fair value. The Trust believes that the plan to sell these assets will not be withdrawn. Through the Trust’s Form 10-Q for the quarter ended October 31, 2016 filed with the SEC on September 14, 2016, the Trust classified all the Hotel properties as Assets Held for Sale. As of October 31, 2016, the Trust has decided to reclassify these assets back into operations as many of these assets have been marketed for sale for more than one year. At this time, the Trust is unable to predict when, and if, any of these Hotel properties will be sold. The Trust continues to list these properties with local real estate hotel brokers, and believes that each of the assets is being marketed at a price that is reasonable in relation to its current fair value. On June 2, 2017, the Ontario Hospitality Properties LLLP was sold to an unrelated third party for $17,500,000 (see Note 24).

The Trust has recognized the sale of the Ontario, California hotel into discontinued operations in accordance with ASC No. 205-20, Discontinued Operations. As such, the historical results of the Ontario, California hotel have been adjusted for comparability purposes and exclude any corporate general and administrative expenses.

Discontinued operations for the fiscal year ended January 31, 2018 and 2017 primarily consists of all hotels operational revenues and expenses for the Ontario, California hotel property and does not include the sale proceeds and profit from the sale of the Ontario, California hotel.

The following financial information presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations for the years ended January 31, 2018 and 2017, as well as the statements of operations for the years ended January 31, 2018 and 2017.

		DISCONTINUED OPERATIONS
		JANUARY 31, 2018				JANUARY 31, 2017

ASSETS
Current Assets:
Cash and Cash Equivalents		$	-			$	89,561
Accounts Receivable			-				92,743
Prepaid Expenses and Other Current Assets			-				46,823
Total Current Assets of Discontinued Operations			-				229,127
Property, Plant and Equipment, net			-				6,080,597
TOTAL ASSETS OF DISCONTINUED OPERATIONS		$	-			$	6,309,724

LIABILITIES

LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Expenses		$	86,976			$	400,402
Current Portion of Mortgage Notes Payable			-				185,207
Total Current Liabilities of Discontinued Operations			86,976				585,609
Mortgage Notes Payable			-				5,047,838
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS		$	86,976			$	5,633,447

		FOR THE YEARS ENDED JANUARY 31,
		2018				2017
REVENUE
Room		$	1,397,324			$	3,827,793
Food and Beverage			64,976				164,326
Other			8,443				26,333
TOTAL REVENUE			1,470,743				4,018,452
OPERATING EXPENSES
Room			941,691				1,257,499
Food and Beverage			66,152				194,992
Telecommunications			-				656
General and Administrative			280,082				457,835
Sales and Marketing			123,300				298,071
Repairs and Maintenance			100,149				290,487
Hospitality			122,227				216,651
Utilities			74,640				245,968
Depreciation			177,824				698,828
Real Estate and Personal Property Taxes, Insurance and Ground Rent			56,015				129,897
Other			6,418				(3,361	)
TOTAL OPERATING EXPENSES			1,948,498				3,787,523
OPERATING LOSS			(477,755	)			230,929
Interest Income			961				-
TOTAL OTHER INCOME			961				-
Interest on Mortgage Notes Payable			127,787				265,743
Interest on Other Notes Payable			779				4,518
TOTAL INTEREST EXPENSE			128,566				270,261
CONSOLIDATED NET LOSS OF DISCONTINUED OPERATIONS		$	(605,360	)		$	(39,332	)

		YEARS ENDED
		JANUARY 31,
		2018				2017

NET CASH USED IN OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE		$	(406,064	)		$	(2,153	)

NET CASH USED IN INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE		$	-			$	-