XML 32 R22.htm IDEA: XBRL DOCUMENT

Leases

3 Months Ended

Apr. 30, 2019

16. LEASES

The Company has operating leases for its corporate offices in Phoenix, Arizona, land leased in Albuquerque, New Mexico, and cable equipment leased for its Tucson, Arizona property. The Company’s lease terms include options to extend or terminate the leases and the Company includes these options in the lease term when it is reasonably certain to exercise that option.

Operating Leases

On August 4, 2017, the InnSuites Hospitality Trust (“IHT” or “the Company” or “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 Company’s Tucson, Arizona hotel property leases satellite television equipment for all of its 159 rooms and common areas. The lease commenced in November 2018 and expires 5 years from the date of commencement.

The following table presents the Company’s lease costs for the three months ended April 30, 2019:

	Three Months Ended
	April 30, 2019
Lease Costs:
Operating lease cost*	$	64,334

* Short term lease costs were immaterial.

Supplemental cash flow information is as follows:

	Three Months Ended
	April 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	57,985

Right-of-use assets obtained in exchange for lease obligations:
Operating leases, net	$	2,791,249

The aggregate future lease payments for ROU assets as of April 30, 2019 are as follows:

For the Years Ending January 31,	ROU Assets
Remaining in 2020	$	173,956
2021		231,941
2022		231,941
2023		208,829
2024		168,691
Thereafter		5,050,859
Total minimum lease payments	$	6,066,217
Less: amount representing interest		3,210,634
Total present value of minimum payments		2,855,583
Less: current portion	$	98,117
Long-term obligations	$	2,757,466

Weighted average remaining lease terms and discount rates were as follows:

Weighted average remaining lease term (years)	April 30, 2019
Operating leases		34.81

Weighted average discount rate
Operating leases		4.76	%