InnSuites Hospitality Trust (NYSE: IHT) completed a $3 million debt-to-equity conversion on August 19, 2026. The move lifted total equity above the minimum threshold required for continued listing on the NYSE American exchange.

The transaction eliminated an equivalent amount of debt, strengthening the balance sheet as the Trust works within an 18-month cure period to satisfy regulatory standards. Management continues to explore strategic alternatives, including a potential reverse merger or other strategic transactions, with operational initiatives intended to improve hotel gross operating profits.

Balance Sheet and Compliance

The conversion raised IHT’s total equity to $2,078,079 as of August 25, 2026, exceeding the minimum requirement of $2 million set forth in Section 1003(a)(i) of the NYSE American Company Guide. The Trust submitted a compliance plan to the exchange on July 24, 2026, with a deadline to regain full compliance by December 24, 2027.

Operating Performance

Hotel revenues exceeded $4 million for the fiscal first half of the current year (February 1, 2026 through January 31, 2027). Combined hotel revenue for July reached $600,293, marking an all-time record for the month across its two properties.

Consolidated net income for the fiscal first quarter ended April 30, 2026, was $74,702, representing a 48% increase from the prior year period. Before non-cash depreciation and Best Western Travel Rewards credit expenses, net income stood at $307,326 for the quarter.

Strategic Alternatives and Governance

IHT is pursuing diversification opportunities through InnDependent Boutique Collection (IBC Hotels, LLC) and UniGen Power, Inc. James Wirth, IHT President, was elected Chairman, CEO, and President of UniGen on February 20, 2026, while Marc Berg, IHT EVP, took on Vice Chairman and Secretary/Treasurer roles at UniGen.

At the Fiscal 2026 Annual Meeting held on August 12, 2026:

• Steven S. Robson was re-elected to the Board of Trustees for a three-year term, receiving 99.63% of voted shares.
• Shareholders approved the ratification of BCRG, Certified Public Accounts as independent registered public accountants, with 99.67% of voted shares in favor.

The Trust extended its uninterrupted annual dividend streak to 56 years, with the next payout tentatively scheduled for February 15, 2027.

InnSuites Hospitality Trust received a written notice from NYSE American LLC on June 24, 2026, indicating it is not in compliance with continued listing standards due to a stockholders’ deficit of approximately $(921,921) as of April 30, 2026, and losses in two of its three most recent fiscal years ended January 31, 2026. The exchange requires listed companies to maintain stockholders’ equity of at least $2.0 million under these conditions. The notice has no immediate effect on the listing or trading of the Trust’s shares, but the ticker symbol will display a “.BC” indicator upon listing as a noncompliant issuer.

The Trust intends to submit a compliance plan to NYSE American by July 24, 2026, outlining actions to regain compliance by December 24, 2027. InnSuites Hospitality Trust is evaluating measures to increase stockholders’ equity by approximately $3.0 million to $3.3 million. If NYSE American accepts the compliance plan, the Trust will undergo periodic review, including quarterly monitoring. Failure to submit a plan, regain compliance by the deadline, or demonstrate progress may result in delisting proceedings.

Proposed compliance initiatives include converting certain RRF LLLP units into IHT shares and converting related-party indebtedness into equity at market-based prices. The Trust is also pursuing capital-raising or restructuring transactions, reducing or deferring cash uses, and implementing operational initiatives to improve hotel gross operating profits. Strategic alternatives under consideration include a reverse merger.

Financial Performance

InnSuites Hospitality Trust reported combined hotel revenue of approximately $2.9 million for the first four fiscal months of fiscal 2027, including $652,786 in May. The Trust disclosed a consolidated net loss of $(342,679) for fiscal year 2026 before non-cash expenses. For the first fiscal quarter of 2027 ended April 30, 2026, the Trust reported a positive profit of $307,326 before non-cash items.

The Board of Trustees announced the 2026 Annual Meeting of Shareholders will be held on August 12, 2026. The Trust continues to evaluate diversification opportunities, including IBC Hotels, LLC and UniGen Power, Inc., as part of its strategic efforts. Management believes these initiatives, along with real estate assets and improving hospitality profitability, support its compliance planning.