NextTrip (NASDAQ: NTRP) grows revenue sharply but warns of going concern risk
NextTrip, Inc. reports sharp growth in its travel and media platform but continues to post sizable losses. For the nine months ended November 30, 2025, revenue rose to $2,096,605 from $417,926 a year earlier, while the net loss widened to $10,630,953 from $5,522,631.
Operating expenses more than doubled to $11,349,353, driven by professional fees, organization costs, technology spending and non‑cash stock-based compensation. Cash used in operating activities was $2,450,860, partly funded by $5,567,960 of financing inflows and $1,752,168 of investing outflows, including acquisitions.
Total assets increased to $14,424,933 as the company completed the FSA Travel, TA Pipeline and JOURNY.tv transactions, raising goodwill to $3,123,684 and intangible assets to $3,809,004. However, liabilities climbed to $8,149,753, the company disclosed a working capital deficit, an accumulated deficit of $45,239,191, and explicitly stated there is substantial doubt about its ability to continue as a going concern without additional funding.
Positive
- Strong top-line growth: Nine-month revenue increased to $2,096,605 from $417,926 year over year, reflecting expansion of the travel platform and new media assets.
- Enhanced strategic footprint: Completion of the FSA Travel, TA Pipeline and JOURNY.tv transactions increased goodwill to $3,123,684 and intangible assets, broadening the company’s travel and media offerings.
- Improved liquidity versus prior year: Cash and cash equivalents rose to $2,427,299 from $1,062,367, supported by $5,567,960 of net financing inflows.
Negative
- Large and growing losses: Net loss for the nine months ended November 30, 2025 widened to $10,630,953 from $5,522,631, with operating expenses more than doubling.
- Going concern uncertainty: The company reports a working capital deficit, an accumulated deficit of $45,239,191, and explicitly states there is substantial doubt about its ability to continue as a going concern.
- Higher leverage and financing risk: Total liabilities increased to $8,149,753, including a $3,000,000 related‑party line of credit and several high‑interest short‑term notes and contingent obligations tied to acquisitions.
Insights
Rapid revenue growth is offset by heavy losses, rising leverage and a going concern warning.
NextTrip is scaling quickly: nine‑month revenue increased to
Cash flow from operations was negative
Management reports a working capital deficit and an accumulated deficit of
UNITED STATES
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NEXTTRIP, INC.
FORM 10-Q
TABLE OF CONTENTS
| PART I - FINANCIAL INFORMATION | 3 |
| ITEM 1. FINANCIAL STATEMENTS | 3 |
| ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 35 |
| ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 56 |
| ITEM 4. CONTROLS AND PROCEDURES | 56 |
| PART II - OTHER INFORMATION | 57 |
| ITEM 1. LEGAL PROCEEDINGS | 57 |
| ITEM 1A. RISK FACTORS | 57 |
| ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. | 57 |
| ITEM 3. DEFAULTS UPON SENIOR SECURITIES | 58 |
| ITEM 4. MINE SAFETY DISCLOSURES | 58 |
| ITEM 5. OTHER INFORMATION | 58 |
| ITEM 6. EXHIBITS | 58 |
| SIGNATURES | 59 |
| 2 |
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
NEXTTRIP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| November 30, 2025 | February 28, 2025 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Accounts receivable, net | ||||||||
| Prepaid expenses and other current assets | ||||||||
| Total Current Assets | ||||||||
| Non-Current Assets | ||||||||
| Property and equipment, net | ||||||||
| Intangible assets, net | ||||||||
| Security deposit | ||||||||
| Goodwill | ||||||||
| Equity investments | ||||||||
| Other prepaid assets | ||||||||
| Total Non-Current Assets | ||||||||
| Total Assets | $ | $ | ||||||
| LIABILITIES | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | $ | ||||||
| Accrued expenses | ||||||||
| Deferred revenue | ||||||||
| Derivative liability | - | |||||||
| Contingent consideration | - | |||||||
| Note payable | ||||||||
| Notes payable - related parties | - | |||||||
| Notes payable | - | |||||||
| Total Current Liabilities | ||||||||
| Non-Current Liabilities | ||||||||
| SBA EIDL loan | - | |||||||
| Line of Credit – related parties | - | |||||||
| Total Non-Current Liabilities | - | |||||||
| Total Liabilities | ||||||||
| Commitments and Contingencies | - | - | ||||||
| Mezzanine Equity | ||||||||
| Common Stock, par value $ |
- | |||||||
| Stockholder’s Equity | ||||||||
| Preferred Stock, par value $ |
||||||||
| Common Stock, par value $ |
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| Additional Paid in Capital | ||||||||
| Accumulated deficit | ( |
) | ( |
) | ||||
| Total Stockholders’ Equity | ||||||||
| Total Liabilities, Mezzanine and Stockholders’ Equity | $ | $ | ||||||
See accompanying notes to condensed financial statements.
| 3 |
NEXTTRIP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended November 30, | Nine Months Ended November 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | $ | $ | $ | $ | ||||||||||||
| Cost of revenue (exclusive of depreciation and amortization, shown separately below) | ||||||||||||||||
| Gross profit (loss) | ( |
) | ||||||||||||||
| Operating Expenses: | ||||||||||||||||
| Salaries and benefits | ||||||||||||||||
| Stock based compensation | - | |||||||||||||||
| General and administrative | ||||||||||||||||
| Sales and marketing | ||||||||||||||||
| Professional service fees | ||||||||||||||||
| Technology | ||||||||||||||||
| Organization costs | ||||||||||||||||
| Depreciation and amortization | ||||||||||||||||
| Other expenses | ||||||||||||||||
| Total Operating Expenses | ||||||||||||||||
| Operating loss | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Other Income (Expenses) | ||||||||||||||||
| Other Income (expense) | - | - | ||||||||||||||
| Gain (loss) on derivative liability | - | - | ||||||||||||||
| Gain (loss) on extinguishment of liability | ( |
) | - | ( |
) | - | ||||||||||
| Interest income (expense), net | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Total Other Income (Expense) | ( |
) | ( |
) | ( |
) | ||||||||||
| Net income (loss) from continuing operations before taxes | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net income (loss) from continuing operations before share of net income (loss) in equity method investee | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Share of net income (loss) of equity method investee | - | - | ( |
) | - | |||||||||||
| Net gain (loss) from continuing operations | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Net gain (loss) from discontinued operations, net of taxes | - | - | $ | |||||||||||||
| Net income (loss) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Preferred dividends | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Net Income (Loss) Applicable to Common Stockholders | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Basic and diluted loss per common share from continuing operations | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Basic and diluted loss per common share from discontinued operations | $ | - | $ | - | $ | - | $ | - | ||||||||
| Basic and diluted loss per common share | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Basic and diluted weighted average number of common shares | ||||||||||||||||
See accompanying notes to condensed financial statements.
| 4 |
NEXTTRIP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
(Unaudited)
For the Three Months Ended November 30, 2025, and November 30, 2024
Shares Outstanding | Preferred Stock | Shares Outstanding | Common Stock | Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||||||||
| Preferred Stock | Common Stock | Additional | ||||||||||||||||||||||||||
Shares Outstanding | Preferred Stock | Shares Outstanding | Common Stock | Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||||||||
| Balances, August 31, 2025 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Net income (loss) | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Preferred stock dividends | - | - | - | - | ( | ) | - | |||||||||||||||||||||
| Issuance of securities pursuant to private placements | - | |||||||||||||||||||||||||||
| Issuance of common shares for third party services | - | - | - | |||||||||||||||||||||||||
| Issuance of Securities in connection with debt conversion | - | - | - | |||||||||||||||||||||||||
| Conversion of preferred shares to common shares pursuant to shareholder approval | ( | ) | ( | ) | - | - | - | |||||||||||||||||||||
| Cashless exercise of warrants | - | - | ( | ) | - | - | ||||||||||||||||||||||
| Balances, November 30, 2025 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Preferred Stock | Common Stock | Additional | ||||||||||||||||||||||||||
Shares Outstanding | Preferred Stock | Shares Outstanding | Common Stock | Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||||||||
| Balances, August 31, 2024 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Preferred stock dividends | - | - | - | - | ( | ) | - | |||||||||||||||||||||
| Issuance of convertible preferred shares | - | - | - | |||||||||||||||||||||||||
| Issuance of common shares for third party services | - | - | - | |||||||||||||||||||||||||
| Warrants Issued in Connection with Bridge Loan Financing | - | - | - | - | - | |||||||||||||||||||||||
| Stock Based Compensation | - | - | - | - | - | |||||||||||||||||||||||
| Balances, November 30, 2024 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
See accompanying notes to condensed financial statements.
| 5 |
For the Nine Months Ended November 30, 2025, and November 30, 2024
| Preferred Stock | Common Stock | Additional | ||||||||||||||||||||||||||
Shares Outstanding | Preferred Stock | Shares Outstanding | Common Stock | Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||||||||
| Balances, February 28, 2025 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Preferred stock dividends | - | - | ( | ) | - | |||||||||||||||||||||||
| Issuance of preferred shares for FSA Travel, LLC acquisition | - | - | - | |||||||||||||||||||||||||
| Issuance of common shares for JOURNY.tv asset acquisition | - | - | - | |||||||||||||||||||||||||
| Issuance of securities pursuant to private placements | - | |||||||||||||||||||||||||||
| Issuance of common shares pursuant to reverse acquisition of Sigma | - | - | ( | ) | - | - | ||||||||||||||||||||||
| Issuance of common shares for third party services | - | - | - | |||||||||||||||||||||||||
| Securities issued in connection with debt conversion | - | - | - | |||||||||||||||||||||||||
| Warrants issued in connection with bridge loan financing | - | - | - | - | - | |||||||||||||||||||||||
| Cashless exercise of warrants | - | - | ( | ) | - | - | ||||||||||||||||||||||
| Conversion of preferred shares to common shares pursuant to shareholder approval | ( | ) | ( | ) | - | - | - | |||||||||||||||||||||
| Issuance of securities for directors’ services | - | - | - | - | - | |||||||||||||||||||||||
| Issuance of stock options to employees | - | - | - | - | - | |||||||||||||||||||||||
| Balances, November 30, 2025 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Preferred Stock | Common Stock | Additional | ||||||||||||||||||||||||||
Shares Outstanding |
Preferred Stock |
Shares Outstanding |
Common Stock | Paid-in Capital |
Accumulated Deficit |
Total | ||||||||||||||||||||||
| Balances, February 29, 2024 | $ | $ | $ | $ | ( |
) | $ | |||||||||||||||||||||
| Balances | $ | $ | $ | $ | ( |
) | $ | |||||||||||||||||||||
| Net loss | - | - | - | - | - | ( |
) | ( |
) | |||||||||||||||||||
| Net income (loss) | - | - | - | - | - | ( |
) | ( |
) | |||||||||||||||||||
| Preferred stock dividends | - | - | - | - | ( |
) | - | |||||||||||||||||||||
| Issuance of convertible preferred shares | - | - | - | |||||||||||||||||||||||||
| Issuance of common shares for conversion of preferred stock | ( |
) | ( |
) | - | - | - | |||||||||||||||||||||
| Issuance of common shares for third party services | - | - | - | |||||||||||||||||||||||||
| Issuance of Common Shares as Commitment Shares | - | - | - | |||||||||||||||||||||||||
| Warrants Issued in Connection with Bridge Loan Financing | - | - | - | - | - | |||||||||||||||||||||||
| Stock Based Compensation | - | - | - | - | - | |||||||||||||||||||||||
| Balances, November 30, 2024 | $ | $ | $ | $ | ( |
) | $ | ( |
) | |||||||||||||||||||
| Balances | $ | $ | $ | $ | ( |
) | $ | ( |
) | |||||||||||||||||||
See accompanying notes to condensed financial statements.
| 6 |
NEXTTRIP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended | ||||||||
November 30, 2025 | November 30, 2024 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net Income (Loss) – Continuing Operations | $ | ( | ) | $ | ( | ) | ||
| Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: | ||||||||
| Noncash Expenses: | ||||||||
| Depreciation and amortization – property and equipment and intangibles | ||||||||
| Amortization of debt discount | ||||||||
| Amortization of prepaid expenses | - | |||||||
| Write-off of capitalized technology expenses | - | |||||||
| Gain on derivative liability | ( | ) | - | |||||
| Stock-based compensation - employees | ||||||||
| Stock-based compensation - directors | - | |||||||
| Stock-based compensation | - | |||||||
| Issuance of preferred stock for third party services | - | |||||||
| Issuance of commitment shares | - | |||||||
| Loss on extinguishment of liability | - | |||||||
| Change in Assets and Liabilities: | ||||||||
| Accounts receivable | ( | ) | ||||||
| Prepaid expenses | ( | ) | ||||||
| Accounts payable and accrued expenses | ||||||||
| Deferred revenue | ( | ) | ||||||
| Security deposit | ( | ) | ||||||
| NET CASH USED IN OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | ( | ) | ( | ) | ||||
| NET CASH PROVIDED IN OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS | - | |||||||
| NET CASH USED IN OPERATING ACTIVITIES | ( | ) | ( | ) | ||||
| INVESTING ACTIVITIES | ||||||||
| Capitalized software development costs | ( | ) | ( | ) | ||||
| TA Pipeline LLC acquisition | ( | ) | - | |||||
| FSA Travel LLC acquisition | ( | ) | - | |||||
| JOURNY.tv asset purchase | ( | ) | - | |||||
| NET CASH USED IN INVESTING ACTIVITIES | ( | ) | ( | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Proceeds from issuance of convertible preferred shares | ||||||||
| Proceeds from issuance of common shares | - | |||||||
| Notes Payable | ||||||||
| Advances from related parties | ||||||||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | ||||||||
| NET CHANGE IN CASH FOR PERIOD | ( | ) | ||||||
| CASH AT BEGINNING OF PERIOD | ||||||||
| CASH AT END OF PERIOD | $ | $ | ||||||
| Supplemental Disclosures: | ||||||||
| Noncash Investing and Financing Activities Disclosure: | ||||||||
| Issuance of preferred shares pursuant to FSA Travel, LLC acquisition | $ | $ | - | |||||
| Issuance of common shares pursuant to JOURNY.tv asset purchase | $ | $ | - | |||||
| Issuance of common shares pursuant to TA Pipeline LLC acquisition | - | |||||||
| Issuance of common shares for third party services | $ | $ | ||||||
| Issuance of securities pursuant to debt conversions | $ | $ | - | |||||
| Issuance of common stock warrants in connection with bridge financing | $ | $ | ||||||
| Preferred stock dividends | $ | $ | ||||||
| Disclosure of Cash Paid for: | ||||||||
| Interest | $ | $ | ||||||
| Income Taxes | $ | - | $ | - | ||||
See accompanying notes to condensed financial statements.
| 7 |
NEXTTRIP, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
November 30, 2025
NOTE 1 - Business Description and Going Concern
Sigma Additive Solutions, Inc. (“Sigma”), the legal acquiror of NextTrip Holdings, Inc., was initially incorporated as Messidor Limited in Nevada on December 23, 1985, and changed its name to Framewaves Inc. in 2001. On September 27, 2010, the name was changed to Sigma Labs, Inc. On May 17, 2022, Sigma Labs, Inc. began doing business as Sigma Additive Solutions, and on August 9, 2022, changed its name to Sigma Additive Solutions, Inc.
On March 11, 2024, Sigma filed a Certificate of Amendment to its Amended and Restated Articles of Incorporation, as amended, with the Secretary of State of the State of Nevada, pursuant to which, effective as of 12:01 a.m. Pacific time on March 13, 2024, among other things, Sigma’s corporate name was changed from Sigma Additive Solutions, Inc. to “NextTrip, Inc.”
The Company’s corporate office is located at 3900 Paseo del Sol, Santa Fe New Mexico 87507. The consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries, NextTrip Holdings Inc. incorporated on October 22, 2015, Extraordinary Vacations USA, Inc., incorporated on June 24, 2002, Five Star Alliance, LLC, organized on March 9, 2018, and TA Pipeline, LLC, organized on July 1, 2021.
Prior
to the NextPlay Exchange Agreement, as described below, NextTrip Holdings, Inc. (“NTH”) was a wholly-owned subsidiary of
NextTrip Group, LLC (“NTG”), which in turn, was a wholly-owned subsidiary of NextPlay Technologies, Inc. (“NextPlay”).
All of the business operations of NTG were conducted through its subsidiaries. On January 25, 2023, NextPlay and NTG entered into an
Amended and Restated Separation Agreement, Amended and Restated Operating Agreement, and Exchange Agreement (the “NextPlay Exchange
Agreement”), whereby NextPlay transferred its interest in the travel business to NTG. Pursuant to the NextPlay Exchange Agreement,
NextPlay exchanged
The Company provides travel technology solutions with sales originating in the United States, with a primary emphasis on hotels, air, and all-inclusive travel packages. Our proprietary booking engine, branded as NextTrip 2.0, provides travel distributors access to a sizeable inventory.
The Company owns 50% of Next Innovation LLC, a Joint Venture (“Next Innovation”), which is dormant. No activities nor operations occurred through Next Innovation in fiscal years 2024 or 2025 for this entity, and the Company does not have control of Next Innovation and therefore no minority interest was recorded.
Reverse Acquisition
On
October 12, 2023, the Company (then known as Sigma) entered into a Share Exchange Agreement (as amended, the “Exchange Agreement”)
with NTH, NTG, and William Kerby (the “NextTrip Representative”). Under the terms of the Exchange Agreement, the parties
agreed that NTG would sell and transfer to the Company all of the issued and outstanding shares of NTH in exchange for
| 8 |
The
Contingent Shares, together with the Closing Shares, will not exceed
In accordance with ASC 805-40-45-1, the consolidated financial statements prepared following a reverse acquisition are issued under the name of the legal parent (NextTrip, Inc., f/k/a Sigma Additive Solutions, Inc.) but described in the notes to the financial statements as a continuation of the financial statements of the legal subsidiary (NTH), with one adjustment, which is to retroactively adjust the accounting acquirer’s legal capital to reflect the legal capital of the accounting acquiree. That adjustment is required to reflect the capital of the legal parent.
Under ASC 805-40-45-2, the consolidated financial statements represent the continuation of the legal subsidiary except for the capital structure, as follows:
| (a) | The assets and liabilities of the legal subsidiary recognized and measured at their pre-combination carrying amounts; | |
| (b) | The assets and liabilities of the legal parent recognized and measured in accordance with the guidance in this topic applicable to business combinations (ASC 805); | |
| (c) | The retained earnings and other equity balances of the legal subsidiary before the business combination; | |
| (d) | The amount required to be recognized as issued equity interests in the consolidated financial statements determined by adding the issued equity interest of the legal subsidiary outstanding immediately before the business combination to the fair value of the legal parent determined in accordance with the guidance in ASC 805 applicable to business combinations. However, the equity structure reflects the equity structure of the legal parent, including the equity interests the legal parent issued to affect the combination. Accordingly, the equity structure of the legal subsidiary is restated using the exchange ratio established in the acquisition agreement to reflect the number of shares of the legal parent issued in the reverse acquisition. |
The assets and liabilities of Sigma were recognized at fair value pursuant to ASC 805.
Going
Concern - As of November 30, 2025, and February 28, 2025, the Company had an accumulated deficit of $
In light of the foregoing, there is substantial doubt about the Company’s ability to continue as a going concern for 12 months from the date of the filing of this Report.
NOTE 2 – Summary of Significant Accounting Policies
Basis of Presentation - The accompanying financial statements have been prepared by the Company in accordance with Generally Accepted Accounting Principles (“GAAP”) in the United States of America. The financial statements have been prepared on a consolidated basis with those of the Company’s wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at November 30, 2025 and 2024 and for the periods then ended have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The Company suggests these condensed financial statements be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2025. The results of operations for the period ended November 30, 2025 are not necessarily indicative of the operating results for the full year.
| 9 |
Reclassification
Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on the net earnings (loss) or financial position.
Promissory Note Receivable
NextPlay
is in involuntary bankruptcy proceedings and is in default under the terms of its promissory note for non-payment. As a result, as of
February 28, 2025 the Company established an allowance for credit losses for the full amount of the note of $
Fair Value of Financial Instruments - The Company applies ASC 820, “Fair Value Measurements.” This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:
| ● | Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |
| ● | Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | |
| ● | Level 3 - inputs to valuation methodology are unobservable and significant to the fair measurement. |
The carrying amounts reported in the balance sheets for the cash and cash equivalents, receivables, accounts payable, and accrued liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest.
Put Option
The Company does not use derivative instruments for hedging of market risk or for trading or speculative purposes. The derivative liability at November 30, 2025 results from an option (the “Put Option”), which is embedded in the restricted common shares issued by the Company pursuant to the acquisition of TA Pipeline LLC (“TA”).
On August 6, 2025, the Company entered into a Membership Interest Purchase Agreement (the “TA MIPA”) with TA and the members of TA (the “TA Members”), pursuant to which the Company purchased all of the issued and outstanding membership interests of TA from the TA Members (the “TA Acquisition”), resulting in TA becoming a wholly owned subsidiary of the Company. The TA Acquisition closed on August 6, 2025 (the ‘Closing Date”).
Pursuant
to the TA MIPA, as consideration for the TA Acquisition, at closing, the Company (i) paid the TA Members an aggregate of $
| 10 |
In the event that the Fair Market Value of the Company’s common stock is less than $3.10 (the “Base Price”) during the three month period starting on the earlier of (1) the date on which the restricted shares of the Company’s common stock becomes eligible for public resale, and (2) the date that is twelve months after the Closing Date, each TA Member shall have the limited, one time option to exercise one of the following rights as to some or all of their outstanding TA Closing Shares and TA Milestone Shares (together the “TA Acquisition Shares”), by delivering notice to the Company: (i) the right to require the Company to repurchase from the TA Member all or any portion of their outstanding TA Acquisition Shares at the Base Price; (ii) the right to require the Company to issue to such TA Member that number of additional shares of Company common stock (the “Top Up Shares”) as is necessary to make the aggregate value of the number of TA Acquisition Shares (based on the Fair Market Value) equal to the original aggregate value of the TA Acquisition Shares (based on the Base Price) for the number of TA Acquisition Shares specified in the exercise notice; and (iii) the right to require the Company to pay to such TA Member, in cash, an amount equal to the product of (x) the number of TA Acquisition Shares specified in the exercise notice and (y) the positive difference, if any, between the Base Price and the Fair Market Value.
Pursuant to ASC 815, management evaluated the Put Option embedded in the common shares and determined that such Put Option required bifurcation and will be accounted for as a derivative liability. The Put Option applicable to the TA Acquisition Shares will be marked to market at each reporting period.
TA Milestone Payment
In
addition to the TA Closing Consideration, and as further consideration for the TA Acquisition,
The fair values of the Put Option and the TA Milestone Payment measured on a recurring basis are as follows:
Schedule of Fair Values of the Put Option and the TA Milestone Payment Measured On a Recurring Basis
| November 30, 2025 | Date of Issuance – August 6, 2025 | |||||||||||||||
| Fair Value | Input Level | Fair Value | Input Level | |||||||||||||
| Derivative liability – Put Option | $ | Level 3 | $ | Level 3 | ||||||||||||
| Contingent Consideration – TA Milestone Payment | $ | Level 3 | $ | Level 3 | ||||||||||||
The following table presents a reconciliation of the derivative liability measured at fair value on a recurring basis using significant unobservable input (Level 3):
Schedule of Derivative Liability Measured at Fair Value On a Recurring Basis
| Put Option | TA Milestone Payment | |||||||
| Fair Value on Issuance Date | $ | $ | ||||||
| Change in fair value | $ | ( | ) | - | ||||
| Fair value on November 30, 2025 | $ | $ | ||||||
Investments in Equity Method Investees
The Company holds investments in certain entities that are accounted for under the equity method of accounting, as well as investments that are accounted for under the fair value method pursuant to ASC 321, “Investments - Equity Securities.” Under the equity method, investments in entities in which the Company has significant influence, but not control, are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the investees’ earnings or losses and other comprehensive income.
| 11 |
The Company determines the existence of significant influence based on various factors, including representation on the investees’ board of directors, participation in policy-making processes, and material intercompany transactions.
The Company’s equity method investments are evaluated periodically for impairment by assessing whether events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. When such indicators exist, the Company performs an impairment test and recognizes an impairment loss to the extent that the carrying amount of the investment exceeds its fair value.
Distributions received from equity method investees that exceed cumulative earnings recognized by the Company are considered a return of investment and are recorded as a reduction in the carrying amount of the investment.
Adjustments resulting from changes in the Company’s ownership interest in equity method investees that do not result in a loss of significant influence are accounted for prospectively.
Basis Difference
In accordance with ASC 323, “Investments - Equity Method and Joint Ventures,” the Company records a basis difference when the carrying value of its equity method investment differs from its share of the investee’s fair value of net assets at the acquisition date. This basis difference is allocated to the investee’s identifiable assets and liabilities based on their fair values. The amortization of any basis difference related to depreciable assets, such as property, plant, and equipment, is recognized in the Company’s share of the investee’s earnings or losses. Any basis difference related to non-depreciable assets, including goodwill, is generally not amortized, but is subject to impairment testing as necessary.
The Company assesses the impact of any basis differences on its earnings and the carrying value of its equity method investments. If a basis difference is determined to exist, the appropriate adjustments are made to reflect the amortization of such differences in the consolidated financial statements.
Investments in Equity Securities without Readily Determinable Fair Value
In accordance with ASC 321-10-35-2, the Company holds certain investments in equity securities in which the Company does not have significant influence or control, and for which fair value is not readily determinable. These investments are primarily accounted for at cost, less any impairment. The carrying amount is periodically evaluated for impairment, and if necessary, an impairment loss is recognized in the statement of operations. These investments are not adjusted for unrealized gains or losses unless an impairment is identified.
Equity in Earnings of Equity Method Investees
The Company’s share of earnings or losses from equity method investees is recognized in the consolidated statement of operations within “Equity in share of loss of equity method investees,” net of any related income taxes.
Loss Per Share – The computation of loss per share is based on the weighted average number of shares outstanding during the period in accordance with ASC Topic No. 260, “Earnings Per Share.” Shares underlying the Company’s outstanding warrants, options and preferred stock were excluded due to the anti-dilutive effect they would have on the computation. At November 30, 2025 and 2024, the Company had the following common shares underlying these instruments:
Schedule of Underlying Common Shares Excluded from Computation of Loss Per Share
| November 30, | ||||||||
| 2025 | 2024 | |||||||
| Warrants | ||||||||
| Stock Options | ||||||||
| Preferred Stock | ||||||||
| Total Underlying Common Shares | ||||||||
| 12 |
The following table shows the amounts used in computing loss per share and the effect on net loss and the weighted average number of shares of dilutive potential common stock for the periods three and nine months ended November 30, 2025, and 2024:
Schedule of Amounts Used In Computing Loss Per Share and Effect On Net Loss and Weighted Average Number Of Shares
Three Months Ended November 30, | Nine Months Ended November 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Loss from continuing operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Preferred dividends | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Loss from continuing operations applicable to common stockholders | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Gain (loss) from discontinued operations applicable to common stockholders | - | - | ||||||||||||||
| Net loss applicable to common stockholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | ( | ) | |||||
| Weighted average number of common shares outstanding used in loss per share during the period (denominator) | ||||||||||||||||
Dilutive
loss per share was not presented, as the Company’s outstanding common and preferred warrants, stock options and preferred stock
common equivalent shares for the periods presented would have had an anti-dilutive effect. At November 30, 2025, the Company had outstanding
warrants to purchase
Accounting Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated by management. Significant accounting estimates that may materially change in the near future are impairment of long-lived assets, values of stock compensation awards and stock equivalents granted as offering costs, and allowance for bad debts.
Revenue Recognition – The Company’s revenue is derived primarily from sales of our software and related hardware suite under perpetual licenses and from providing engineering services under contracts. The Company recognizes revenue in accordance with ASC Topic No. 606. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that superseded nearly all existing revenue recognition guidance under prior GAAP and replaced it with a principles-based approach for determining revenue recognition. The core principle of the standard is the recognition of revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In general, we determine revenue recognition by: (1) identifying the contract, or contracts, with our customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to performance obligations in the contract; and (5) recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services.
The Company recognizes revenue when the customer has purchased the product, the occurrence of the earlier of date of travel and the date of cancellation has expired, as satisfaction of the performance obligation, the sales price is fixed or determinable and collectability is reasonably assured. Revenue for customer travel packages purchased directly from the Company are recorded gross (the amount paid to the Company by the customer is shown as revenue and the cost of providing the respective travel package is recorded to cost of revenues).
The Company generates revenues from sales directly to customers as well as through other distribution channels of tours and activities at destinations throughout the world.
| 13 |
The Company controls the specified travel product before it is transferred to the customer and is therefore a principal, based on but not limited to, the following:
| ● | The Company is primarily responsible for fulfilling the promise to provide such travel product. | |
| ● | The Company has inventory risk before the specified travel product has been transferred to a customer or after transfer of control to a customer. | |
| ● | The Company has discretion in establishing the price for the specified travel product. |
Payments for tours or activities received in advance of services being rendered are recorded as deferred revenue and recognized as revenue at the earlier of the date of travel or the last date of cancellation (i.e., the customer’s refund privileges lapse).
Segment Reporting - In response to recent acquisitions and expanded business activities, during the third quarter of Fiscal 2026, our Chief Operating Decision Maker (“CODM”), who is our Chief Executive Officer, requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, we have updated our reporting and beginning in the third quarter of fiscal year 2026, we report our financial performance based on our new segments, “Travel” and “Media”. A detailed description of our operating segments as of November 30, 2025 can be found in NOTE 13 to the Financial Statements and the Overview section of Item 2 of this Quarterly Report, entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. Prior periods have been recast to conform to these newly identified segments.
NOTE 3 - Investment in Equity Securities
Investment in Blue Fysh Holdings Inc.
On
February 24, 2025, the Company entered into a Share Exchange Agreement with Blue Fysh Holdings Inc. (“Blue Fysh”), under
which the Company acquired a
The Company’s investment in Blue Fysh is accounted for under the cost method, as the Company does not have significant influence over Blue Fysh. No board appointments are contemplated as part of this transaction; however, the Company has the right to appoint a representative to the Blue Fysh Advisory Committee, which will allow the Company to receive financial updates as needed and to be informed of financial events that could significantly impact the Company’s ownership position.
Since the Company’s ownership interest does not meet the criteria for significant influence pursuant to ASC 323, this investment is classified as an equity security without a readily determinable fair value and is initially recorded at cost. The Company will assess the investment for impairment in future periods and recognize any impairment losses as necessary.
Note 4 – Acquisition of FSA Travel, LLC
On
February 6, 2025, the Company acquired a
On
April 9, 2025, the Company exercised its option to purchase the remaining
| 14 |
The contingent consideration issued as purchase consideration provides for additional distributions to the FSA Unitholders, the amount of which is dependent on the acquired business’ achievement of certain milestones. The Company determined the fair value of the contingent consideration as of the acquisition date (April 9, 2025) based on the probability and timing of achieving the respective milestones.
Upon
completion of the acquisition of the remaining
The Company has completed a preliminary analysis to assign fair values to all assets acquired and liabilities assumed. The table below sets forth the consideration paid and the fair value of the assets acquired and liabilities assumed for the acquisition:
Schedule of Preliminary Analysis To Assign Fair Values To All Assets Acquired And Liabilities Assumed
| Consideration paid | ||||
| Cash | $ | |||
| Series O Preferred stock | ||||
| Earnout Payment | ||||
| Fair value of Initial Purchase | ||||
| Total consideration | $ | |||
| Assets acquired and liabilities assumed | ||||
| Cash and cash equivalents | $ | |||
| Accounts receivable | ||||
| Intangibles | ||||
| Goodwill | ||||
| Total assets | $ | |||
| Accounts payable | ||||
| Due to FSA Unitholders | ||||
| SBA Loan | ||||
| Total liabilities | $ | |||
| Total net assets | $ | |||
The fair value of the working capital items, including accounts receivable, other receivables, trade payables and deferred revenue, approximates their respective carrying values at the date in which control was obtained. Effective January 1, 2021, the Company has adopted ASU 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which created an exception to the recognition and measurement principles of ASC 805, Business Combinations, for the Company’s contract assets and liabilities, including deferred revenue, essentially resulting in the carryover of the historical amounts determined in accordance with ASC 606, Revenue from Contracts with Customers, rather than fair value.
The fair value of the acquired tradename and acquired technology was determined using the relief from royalty method, which utilized projected financial information. The goodwill recognized in the acquisition primarily represents synergies with the existing operations of the Company, and the value of yet-to-be-acquired/developed customers, technology, assembled workforce, and any other assets.
| 15 |
The Company is currently finalizing its valuation of the acquired assets and liabilities and has recorded these preliminary amounts as of the acquisition date. The final purchase price allocation may result in adjustments to the amounts presented.
NOTE 5 – JOURNY.tv Asset Acquisition
On April 1, 2025, the Company entered into an asset purchase agreement (the “JOURNY.tv Purchase Agreement”) with Ovation LLC (“Ovation”), pursuant to which the Company purchased assets, including without limitation trademarks, domains, apps and certain agreements, and assumed certain liabilities related to Ovation’s JOURNY.tv business (the “JOURNY.tv Acquisition”). The JOURNY.tv Acquisition closed on April 1, 2025.
Pursuant
to the JOURNY.tv Purchase Agreement, as consideration for the JOURNY.tv Acquisition, the Company paid Ovation $
In
connection with the JOURNY.tv Acquisition, on April 1, 2025, the Company and Ovation also entered into a License Agreement (the “License
Agreement”), pursuant to which Ovation granted the Company the non-exclusive right, throughout the territories and for the term
set forth therein, to exhibit, promote, market, advertise, publicize and/or otherwise exploit the programs listed in the License Agreement
in the media of (i) FAST via the JOURNY.tv Channel and (ii) Video On Demand via the JOURNY.tv Channel. Pursuant to the License Agreement,
Ovation shall not license any unaffiliated third party the right to exhibit certain of the programs subject to the License Agreement
and shall not use certain of the programs subject to the License Agreement on its owned or operating streaming platforms (subject to
certain exceptions). As consideration for the rights granted under the License Agreement, the Company agreed to pay Ovation an aggregate
non-refundable license fee of $
The transaction was accounted for as an asset acquisition because while inputs were acquired (in the form of trademarks, distribution agreements, content licenses, and service agreements), there is not a continuation of revenues before and after the transaction. That is, due to the significant rebranding and redevelopment of the inputs acquired, the JOURNY.tv assets are not producing revenue post-closing of the transaction. Additionally, an organized workforce with the necessary skills and experience to create outputs was not included in the transaction. As such, the transaction does not meet the definition of a business and is considered an asset acquisition.
On
the acquisition date, the fair value of the intangible assets acquired was $
NOTE 6 – Acquisition of TA Pipeline LLC
On August 6, 2025 (the “Closing Date”), the Company entered into the TA MIPA with TA and the TA Members, pursuant to which the Company purchased all of the issued and outstanding membership interests of TA from the TA Members (the “TA Acquisition”), resulting in TA becoming a wholly-owned subsidiary of the Company.
Pursuant
to the TA MIPA, as consideration for the TA Acquisition, at closing, the Company (i) paid the TA Members an aggregate of $
| 16 |
In
addition to the foregoing, in the event that the Fair Market Value of the Company’s common stock is less than $
In
accordance with the acquisition method of accounting, the purchase price has been assigned to the assets acquired, and the liabilities
assumed, based on their estimated fair value at the acquisition date. In connection with the acquisition, the Company incurred $
Schedule of Preliminary Analysis To Assign Fair Values To All Assets Acquired And Liabilities Assumed
| Consideration paid | ||||
| Cash | $ | |||
| Common stock | ||||
| Fair value of TA Milestone Payment | ||||
| Fair value of derivative liability | ||||
| Total consideration | $ | |||
| Assets acquired and liabilities assumed | ||||
| Cash and cash equivalents | $ | |||
| Intangibles | ||||
| Goodwill | ||||
| Total assets | $ | |||
| Deferred merchant bookings | ||||
| Total liabilities | $ | |||
| Total net assets | $ |
| 17 |
The fair value of the working capital items, including cash and deferred merchant bookings, approximates their respective carrying values at the date on which control was obtained.
The fair value of the acquired tradename, acquired supplier agreements, and acquired travel agency agreements were determined using the relief from royalty method, with or without method and multi-period excess earnings method, respectively, which utilized projected financial information. The goodwill recognized in the acquisition primarily represents synergies with the existing operations of the Company, and the value of yet-to-be-acquired/developed customers, technology, assembled workforce, and any other assets.
The Company is currently finalizing its valuation of the acquired assets and liabilities and has recorded these preliminary amounts as of the acquisition date. The final purchase price allocation may result in adjustments to the amounts presented.
NOTE 7 – Intangible Assets
Intangible assets as of November 30, 2025, and February 28, 2025 consisted of the following:
Schedule of Intangible Assets
| November 30, 2025 | February 28, 2025 | |||||||
| Software Development | $ | $ | ||||||
| Software Licenses | ||||||||
| Trademark | ||||||||
| FSA Travel, LLC Tradename | - | |||||||
| FSA Software Agreements | - | |||||||
| TA Pipeline, LLC Tradename | - | |||||||
| TA Pipeline, LLC Supplier and Agency Agreements | - | |||||||
| JOURNY.tv – Trade Name | - | |||||||
| JOURNY.tv Distribution Agreements | - | |||||||
| Total | ||||||||
| Accumulated amortization | ( | ) | ( | ) | ||||
| Intangible assets, net of amortization | $ | $ | ||||||
Amortization
expense for the three months ended November 30, 2025, and 2024 was $
During the three and nine months ended November 30, 2025, and 2024, the Company recorded no impairment losses associated with the carrying value exceeding its recoverable amount.
The estimated aggregate amortization expense for each of the succeeding years ending February 28 is as follows:
Schedule of Estimated Aggregate Amortization Expense
| 2026 (Remaining) | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| Thereafter | ||||
| Total | $ |
NOTE 8 – Goodwill
Reverse Acquisition of Sigma Additive Solutions, Inc.
As discussed in Note 1 – Business Description and Going Concern, the legal acquisition of NTH by the Company on December 29, 2023 was determined to be a reverse acquisition, with NTH as the accounting acquirer, using the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under this method of accounting, the purchase price was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of consummation of the transaction.
| 18 |
Pursuant
to ASC 350-20, the Company assigned its goodwill to reporting units and is required to test each reporting unit’s goodwill for
impairment at least on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than
not reduce the fair value of a reporting unit below its carrying amount. The goodwill resulting from the reverse acquisition is primarily
attributable to NTH’s objective to obtain access to public markets to provide funding wherewithal to fund business growth. NTH’s
benefit in paying for these synergies in the reverse acquisition transaction was to avoid the time and expense of organizing and executing
an Initial Public Offering transaction. In the reverse acquisition, $
Acquisition of FSA Travel, LLC
As
of November 30, 2025, preliminary goodwill of $
Acquisition of TA Pipeline LLC
As
of November 30, 2025, preliminary goodwill of $
NOTE 9 – Notes Payable
Prior
to his appointment as a director on July 28, 2025, on May 24, 2024, the Company sold a short-term promissory note to Stephen Kircher
in the aggregate principal amount of $
Prior
to her appointment as a director on July 28, 2025, on June 26, 2024, the Company sold a short-term promissory note to Carmen Diges in
the aggregate principal amount of $
On
December 31, 2024, the Company sold a short-term promissory note to SIS II, a private investor, in the aggregate principal amount of
$
On
February 4, 2025, the Company sold a short-term promissory note to 1800 Diagonal Lending LLC in the aggregate principal amount of $
| 19 |
Upon
the event of default by the Company, any unpaid principal and interest may be converted to common stock at the election of 1800 Diagonal
Lending LLC. As of November 30, 2025, the balance on the note, net of the unamortized debt discount was $
On
August 20, 2025, the Company entered into a securities purchase agreement (the “Note & Warrant SPA”) with Alumni Capital
LP (“Alumni Capital”) for the sale of a short-term promissory note (the “Alumni Note”) and warrants (“Warrants”)
to Alumni Capital for total consideration of $
On
September 26, 2025, the Company sold a short-term promissory note to 1800 Diagonal Lending LLC in the aggregate principal amount of $
On
October 24, 2025, the Company sold a short-term promissory note to 1800 Diagonal Lending LLC in the aggregate principal amount of $
NOTE 10 – Long-Term Debt
As
part of the acquisition of FSA on April 9, 2025, the Company assumed an SBA loan originally issued to FSA on December 4, 2020, with an
initial principal amount of $
In
accordance with ASC 805 – Business Combinations, the assumed loan was recognized at its acquisition-date fair value of $
The loan is measured at amortized cost subsequent to the acquisition date, and interest expense is recognized using the effective interest method based on the fair value of the liability at the acquisition date. The following table summarizes the loan terms as of the acquisition date:
Schedule of Long Term Loan
| Description | Amount | |||
| Principal amount | $ | |||
| Fair value at acquisition date | $ | |||
| Remaining term | ||||
| Monthly payment | $ | |||
| Effective interest rate | % | |||
As
of November 30, 2025, the balance of the loan was $
| 20 |
NOTE 11 - Related Party Transactions
On
April 9, 2025, NTH and the Donald P. Monaco Insurance Trust (the “Trust”) entered into two promissory notes (together, the
“Trust Notes”) under the Company’s $
On
May 6, 2025, the Company entered into a Line of Credit Agreement (the “MIP Line of Credit”) with Monaco Investment Partners
II, LP (“MIP”) providing the Company with a $
The
Company received an initial advance of $
On
September 10, 2025, the Company entered into securities purchase agreements (each a “Series Q Purchase Agreement”) with Andy
Kaplan and Jimmy Byrd, two of our independent directors, pursuant to which the Company issued and sold respectively,
On
September 15, 2025, we entered into debt conversion agreements with Carmen Diges and Stephen Kircher, two of our independent directors,
whereby they agreed to convert existing unsecured promissory notes, including accrued interest, into shares of our Series Q Preferred
stock. Ms. Diges converted $
On
November 4, 2025, the Company entered into a securities purchase agreement with KC Global Media Asia LLC, pursuant to which the Company
sold and issued
The
total amounts due to related parties at November 30, 2025 and February 28, 2025 totaled $
NOTE 12 - Stockholders’ Equity
Mezzanine Equity
In
connection with the acquisition of TA Pipeline LLC on August 6, 2025, the Company issued
Accordingly, these shares are presented outside of permanent stockholders’ equity and below total liabilities. The Company will continue to classify the shares as mezzanine equity until such time as the redemption provisions lapse or are removed, or until settlement occurs.
| 21 |
The
carrying amount of instruments recorded within mezzanine equity are not adjusted below initial measurement. The TA Acquisition Shares
were initially recorded at $
For further information regarding the TA Closing Shares and TA Acquisition shares, refer to Notes 2 and 6.
Common Stock
The
Company has
During
the first quarter of 2025, the Company issued
In
the second quarter of 2025, the Company issued
In
the third quarter of 2025, the Company issued
Preferred Stock
Under our Charter, our board of directors has the authority, without further action by stockholders, to designate one or more series of preferred stock and to fix the voting powers, designations, preferences, limitations, restrictions and relative rights granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be preferential to or greater than the rights of the common stock.
Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of the common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in our control and may adversely affect the market price of the common stock and the voting and other rights of the holders of common stock.
| 22 |
The
Company is authorized to issue
On November 19, 2025, following shareholder approval at the Company’s Annual Meeting of Shareholders, 3,484,611 shares of outstanding convertible preferred stock were automatically converted into common shares of the Company on a one-for-one basis pursuant to the respective Certificates of Designation.
An
aggregate of
Series E Convertible Preferred Stock
Under
the Certificate of Designations of the Series E Preferred Stock, shares of the Company’s Series E Preferred have an initial stated
value of $
At
November 30, 2025,
Series H Convertible Preferred Stock
On
January 26, 2024, the Company filed a Certificate of Designation of Series H Convertible Preferred Stock (the “Series H Certificate
of Designation”) with the Secretary of State of the State of Nevada, designating
The terms and conditions set forth in the Series H Certificate of Designation are summarized below:
Ranking. The Series H Preferred rank pari passu to the Company’s common stock.
Dividends. Holders of Series H Preferred will be entitled to dividends, on an as-converted basis, equal to dividends actually paid, if any, on shares of Company common stock.
Voting. Except as provided by the Company’s Charter or as otherwise required by the Nevada Revised Statutes, holders of Series H Preferred are entitled to vote with the holders of outstanding shares of Company common stock, voting together as a single class, with respect to all matters presented to the Company’s stockholders for their action or consideration. In any such vote, each holder is entitled to a number of votes equal to the number of shares of common stock into which the Series H Preferred held by such holder is convertible. The Company may not, without the consent of holders of a majority of the outstanding shares of Series H Preferred, (i) alter or change adversely the powers, preferences or rights given to the Series H Preferred or alter or amend the Series H Certificate of Designation, (ii) amend its Charter or other charter documents in any manner that adversely effects any rights of the holders of the Series H Preferred, or (c) enter into any agreement with respect to the foregoing.
Conversion. On such date that the Company amends its Charter to increase the number of shares of common stock authorized for issuance thereunder, to at least the extent required to convert all of the outstanding Series H Preferred, each outstanding share of Series H Preferred shall automatically be converted into one share of Company common stock (subject to adjustment under certain limited circumstances) (the “Series H Conversion Ratio”).
| 23 |
Liquidation. In the event of any liquidation, dissolution or winding up of the Company, either voluntary or involuntary, holders of Series H Preferred will be entitled to participate, on an as-converted-to-common stock basis calculate based on the Series H Conversion Ratio, with holders of Company common stock in any distribution of assets of the Company to holders of the Company’s common stock.
At
November 30, 2025,
Series I Convertible Preferred Stock
On
February 22, 2024, the Company filed a Certificate of Designation of Series I Convertible Preferred Stock (the “Initial Series
I Certificate of Designation”) with the Secretary of State of the State of Nevada, designating
On
November 19, 2025 all
Series J Nonvoting Convertible Preferred Stock
On
January 3, 2025, the Company filed a Certificate of Designation of Series J Nonvoting Convertible Preferred Stock (the “Series
J Certificate of Designation”) with the Secretary of State of the State of Nevada, designating
On
November 19, 2025 all
Series K Nonvoting Convertible Preferred Stock
On
January 3, 2025, the Company filed a Certificate of Designation of Series K Nonvoting Convertible Preferred Stock (the “Series
K Certificate of Designation”) with the Secretary of State of the State of Nevada, designating
On
November 19, 2025 all
Series L Nonvoting Convertible Preferred Stock
On
January 3, 2025, the Company filed a Certificate of Designation of Series L Nonvoting Convertible Preferred Stock (the “Initial
Series L Certificate of Designation”) with the Secretary of State of the State of Nevada, designating
On
November 19, 2025 all
.
Series M Nonvoting Convertible Preferred Stock
On
January 3, 2025, the Company filed a Certificate of Designation of Series M Nonvoting Convertible Preferred Stock (the “Series
M Certificate of Designation”) with the Secretary of State of the State of Nevada, designating
| 24 |
On
November 19, 2025 all
Series N Nonvoting Convertible Preferred Stock
On
January 30, 2025, the Company filed a Certificate of Designation of Series N Convertible Preferred Stock (the “Series N Certificate
of Designation”) with the Secretary of State of the State of Nevada, designating
On
November 19, 2025 all
Series O Nonvoting Convertible Preferred Stock
On
February 6, 2025, the Company filed a Certificate of Designation of Series O Nonvoting Convertible Preferred Stock (the “Series
O Certificate of Designation”) with the Secretary of State of the State of Nevada, designating
On
November 19, 2025 all
Series P Nonvoting Convertible Preferred Stock
On
February 25, 2025, the Company filed a Certificate of Designation of Series P Nonvoting Convertible Preferred Stock (the “Series
P Certificate of Designation”) with the Secretary of State of the State of Nevada, designating
On
November 19, 2025 all
Series Q Nonvoting Convertible Preferred Stock
On
September 12, 2025, the Company filed a Certificate of Designation of Series Q Convertible Preferred Stock (the “Series Q Certificate
of Designation”) with the Secretary of State of the State of Nevada, designating
On
September 10, 2025, the Company entered into securities purchase agreements (each a “Series Q Purchase Agreement”) with Jimmy
Byrd and Andy Kaplan, two of our independent directors, pursuant to which the Company issued and sold
On
September 15, 2025, we entered into debt conversion agreements with Carmen Diges and Stephen Kircher, two of our independent directors,
whereby they agreed to convert existing unsecured promissory notes, including accrued interest, into shares of our Series Q Preferred
stock. Ms. Diges converted $
On
November 19, 2025 all
| 25 |
Exchange Cap
Each of the Series J, K, L, M, N, O, P and Q Offerings included conversion or exercise limitations which provided that the Company shall not issue or sell any shares of Common Stock pursuant to the conversions of preferred stock to the extent that after giving effect thereto, the aggregate number of shares of Common Stock that would be issued would exceed 19.99% of the shares of Common Stock outstanding on the date of each such Offering (which number of shares shall be reduced, on a share-for-share basis, by the number of shares of Common Stock issued or issuable pursuant to any transaction or series of transactions that may be aggregated with the transactions contemplated by each such separate Offering under applicable rules of the Nasdaq Capital Market) (the “Exchange Cap”) unless and until the Company elects to solicit stockholder approval of the issuance of Common Stock as contemplated by the Purchase Agreements and the stockholders of the Company have in fact approved such issuance in accordance with the applicable rules and regulations of the Nasdaq Capital Market. Such stockholder approval was obtained at the Company’s Annual Shareholder Meeting held on November 14, 2025, resulting in the automatic conversion of all outstanding shares of the Series J, K, L, M, N, O, P, and Q preferred.
Stock Options
On
December 28, 2023, at the Annual Meeting of Stockholders of the Company, the Company’s stockholders approved the adoption of the
NextTrip 2023 Equity Incentive Plan (the “2023 Plan”).
The Company’s 2013 Equity Incentive Plan expired on March 15, 2023. As such, there were no shares of common stock reserved for future issuance thereunder as of November 30, 2025.
On March 26, 2025, under the terms of the 2013 Equity Incentive Plan, all outstanding options terminated upon the change in control effected by the issuance of Contingent Shares pursuant to the Exchange Agreement entered into in connection with the NextTrip Acquisition.
During
the three months ended November 2025 and 2024, the Company did not issue any stock options. During the nine months ended November 30,
2025 and 2024, the Company granted and issued stock options to purchase an aggregate of
The Company generally grants stock options to employees, consultants, and directors at exercise prices equal to the fair market value of the Company’s common stock on the grant date, but not less than 100% of the fair market value. Stock options are typically granted throughout the year and generally vest over a period from one to three years of service and expire five years from the grant date, unless otherwise specified. The Company recognizes compensation expense for the fair value of the stock options over the vesting period for each stock option award.
Total
stock-based compensation expense included in the statements of operations for the three months ended November 30, 2025 and 2024 was $
The fair value of stock-based awards was estimated using the Black-Scholes model with the following weighted average assumptions for the nine months ended November 30, 2025. There were no grants issued during the three months ended November 30, 2024:
Schedule of Share Based Payments Award Stock Options Valuation Assumptions
| 2025 | ||||
| Dividend yield | % | |||
| Risk-free interest rate | % | |||
| Expected volatility | % | |||
| Expected life (in years) | ||||
| 26 |
Option activity for the nine months ended November 30, 2025 and the year ended February 28, 2025 was as follows:
Schedule of Stock Option Activity
| Options | Weighted Average Exercise Price ($) | Weighted Average Remaining Contractual Life (Yrs.) | Aggregate Intrinsic Value ($) | |||||||||||||
| Options outstanding at February 29, 2024 | - | |||||||||||||||
| Exercised | - | - | - | |||||||||||||
| Forfeited or cancelled | ( | ) | - | - | ||||||||||||
| Options outstanding at February 28, 2025 | - | |||||||||||||||
| Granted | ||||||||||||||||
| Exercised | - | - | - | |||||||||||||
| Forfeited or cancelled | ( | ) | - | - | ||||||||||||
| Options outstanding November 30, 2025 | ||||||||||||||||
| Options expected to vest in the future as of November 30, 2025 | - | - | - | - | ||||||||||||
| Options exercisable at November 30, 2025 | ||||||||||||||||
| Options vested, exercisable, and options expected to vest at November 30, 2025 | ||||||||||||||||
The
aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the market price of
our common stock for those awards that have an exercise price below the market price of our common stock. At November 30, 2025,
At
November 30, 2025, there was
Stock Appreciation Rights
The purposes of the 2020 Stock Appreciation Rights Plan (the “2020 SAR Plan”) are to: (i) enable the Company to attract and retain the types of employees, consultants, and directors (collectively, “Service Providers”) who will contribute to the Company’s long-range success; (ii) provide incentives that align the interests of Service Providers with those of the stockholders of the Company; and (iii) promote the success of the Company’s business. The 2020 SAR Plan provides for incentive awards that are only in the form of stock appreciation rights payable in cash (“SARs”). No shares of common stock are reserved or will be issued pursuant to the 2020 SAR Plan.
SARs may be granted to any Service Provider. A SAR is the right to receive an amount equal to the Spread with respect to a share of the Company’s common stock (a “Share”) upon the exercise of the SAR. The “Spread” is the difference between the exercise price per share specified in a SAR agreement on the date of grant and the fair market value per share on the date of exercise of the SAR. The exercise price per share will not be less than 100% of the fair market value of a Share on the date of grant of the SAR. The administrator of the 2020 SAR Plan will have the authority to, among other things, prescribe the terms and conditions of each SAR, including, without limitation, the exercise price and vesting provisions, and to specify the provisions of the SAR Agreement relating to such grant.
On March 26, 2025, under the terms of the 2020 SAR Plan, all outstanding unvested SARs became immediately vested and exercisable upon the change in control effected by the issuance of Contingent Shares pursuant to the Exchange Agreement entered into in connection with the NextTrip Acquisition.
The Company did not grant any SARs during the nine months ended November 30, 2025 or November 30, 2024.
The Company recognizes compensation expense and a corresponding liability for the fair value of the SARs over the vesting period for each SAR award. The SARs are revalued at each reporting date in accordance with ASC 718 “Compensation-Stock Compensation,” and any changes in fair value are reflected in the Statement of Operations as of the applicable reporting date.
| 27 |
SARs activity for the nine months ended November 30, 2025 and the year ended February 28, 2025 was as follows:
Schedule of Stock Option Activity
| SARs | Weighted Average Exercise Price ($) | Weighted Average Remaining Contractual Life (Yrs.) | Aggregate Intrinsic Value ($) | |||||||||||||
| SARs outstanding at February 29, 2024 | - | |||||||||||||||
| Exercised | - | - | - | - | ||||||||||||
| Forfeited or cancelled | ( | ) | - | - | ||||||||||||
| SARs outstanding at February 28, 2025 | - | |||||||||||||||
| Granted | - | - | - | - | ||||||||||||
| Exercised | - | - | - | - | ||||||||||||
| Forfeited or cancelled | ( | ) | - | - | ||||||||||||
| SARs outstanding November 30, 2025 | - | |||||||||||||||
| SARs expected to vest in the future as of November 30, 2025 | - | - | - | - | ||||||||||||
| SARs exercisable at November 30, 2025 | - | |||||||||||||||
| SARs vested, exercisable, and SARs expected to vest at November 30, 2025 | - | |||||||||||||||
The
aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the market price of
our common stock for those awards that have an exercise price below the market price of our common stock. At November 30, 2025,
At
November 30, 2025, there was
Warrants
The
fair value of warrants issued during the nine months ended November 30, 2025 was estimated using the Black-Scholes model with the following
assumptions. There were
Assumptions:
Schedule of Share Based Payments Award Stock Options Valuation Assumptions
| 2025 | 2024 | |||||||
| 22024 Dividend yield | % | % | ||||||
| Risk-free interest rate | % | % | ||||||
| Expected volatility | % | % | ||||||
| Expected life (in years) | ||||||||
Warrant activity for the nine months ended November 30, 2025 and the year ended February 28, 2025 was as follows:
Schedule of Warranty Activity
| Warrants | Weighted Average Exercise Price ($) | Weighted Average Remaining Contractual Life (Yrs.) | ||||||||||
| Warrants outstanding at February 29, 2024 | ||||||||||||
| Granted | ||||||||||||
| Exercised | ( | ) | - | |||||||||
| Forfeited or cancelled | ( | ) | - | |||||||||
| Warrants outstanding at February 28, 2025 | ||||||||||||
| Granted | ||||||||||||
| Exercised | ( | ) | - | |||||||||
| Forfeited or cancelled | ( | ) | - | |||||||||
| Warrants outstanding at November 30, 2025 | ||||||||||||
| 28 |
NOTE 13 – Segment Information
ASC
Topic 280, Segment Reporting, establishes standards for reporting information about
In response to acquisitions and expanded business activities, during the third quarter of Fiscal 2026, our CODM requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, we have updated our reporting and beginning in the third quarter of fiscal 2026, we report our financial performance based on our new segments: “Travel” and “Media”. Our Travel segment provides travelers with a full range of travel services through its NXT2.0 booking engine, which offers extensive inventory and a platform for curating personalized experiences and efficient trip planning and booking. In addition, Five Star Alliance provides luxury and cruise offerings, and TA Pipeline provides a group-travel agency platform for conferences, conventions, weddings, and affinity groups. Our Media segment consists of JOURNY.tv, a Connected TV Channel broadcast as Free Ad Supported Streaming TV (“FAST”) and Advertising Video on Demand (“AVOD”) that specializes in travel, adventure, and culture-focused content, and Travel Magazine, an online travel magazine that provides articles, tips, guides and inspiration for travelers. We leverage our media brands—TravelMagazine.com and JOURNY.tv—as strategic tools to generate travel bookings by integrating content, marketing, and booking technology as well as to generate advertising revenues for third-party content. Additional information regarding our operating segments can be found in the overview section of Item 2 of this Quarterly Report, entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” Prior periods disclosed below have been recast to conform to these newly identified segments.
Our primary operating metric is Operating Income (Loss). Operating Income (Loss) for our Travel and Media segments includes direct expenses of the segments as well as allocations of certain expenses, primarily salaries and benefits, third party contractors, sales and marketing, and technology We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate shared corporate expenses such as accounting, human resources, certain information technology and legal to our reportable segments. We include these expenses in Corporate. Our allocation methodology will be periodically evaluated and may change as the segments evolve.
Our CODM currently uses Operating Income (Loss) to assess performance in the monthly financial review process. Because our segments have been newly formed, the financial reporting framework continues to be under development and in the future will be used to assess performance and allocate resources for the segments in the annual budget and quarterly forecasting processes. The CODM will consider budget-to-actual variances on a monthly basis using Operating Income (Loss) when making decisions about allocating capital and personnel to the segments. The CODM also anticipates using Operating Income (Loss) to assess the performance and compensation of certain employees.
Corporate includes unallocated corporate functions including finance and administration, technology, and corporate development. In addition, we record amortization of intangible assets and any related impairment, investor relations, stock-based compensation expense, legal and audit, directors’ compensation and other items excluded from segment operating performance in Corporate. Such amounts are detailed in our segment reconciliation below.
| 29 |
The following tables present our segment information for the three and nine months ended November 30, 2025 and 2024. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation and amortization is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision maker.
All of our revenues are attributed to customers located in the United States; therefore, no revenues are reported from foreign geographic areas.
Schedule of Segment Information
| Media | Travel | Corporate | Total | |||||||||||||
| Three Months Ended November 30, 2025 | ||||||||||||||||
| Media | Travel | Corporate | Total | |||||||||||||
| Revenue | $ | $ | $ | - | $ | |||||||||||
| Cost of revenue (exclusive of depreciation and amortization, shown separately below) | - | - | ||||||||||||||
| Gross profit (loss) | - | |||||||||||||||
| Operating Expenses: | ||||||||||||||||
| Salaries and benefits | ||||||||||||||||
| Stock based compensation | - | - | - | - | ||||||||||||
| General and administrative | ||||||||||||||||
| Sales and marketing | ||||||||||||||||
| Professional service fees | ||||||||||||||||
| Technology | ||||||||||||||||
| Organization costs | - | - | ||||||||||||||
| Depreciation and amortization | - | - | ||||||||||||||
| Other expenses | - | |||||||||||||||
| Total Operating Expenses | ||||||||||||||||
| Operating Loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Other Income (Expense) | ||||||||||||||||
| Other Income (Expense) | ||||||||||||||||
| Gain (Loss) on derivative liability | ||||||||||||||||
| Gain (Loss) on extinguishment of liability | ( | ) | ||||||||||||||
| Interest income (expense), net | ( | ) | ||||||||||||||
| Total Other Income (Expense) | ( | ) | ||||||||||||||
| Net income (loss) from continuing operations before taxes | ( | ) | ||||||||||||||
| Provision for income taxes | - | |||||||||||||||
| Net income (loss) from continuing operations before share of net income (loss) in equity method investee | ( | ) | ||||||||||||||
| Share of net income (loss) of equity method investee | - | |||||||||||||||
| Net gain (loss) from continuing operations | ( | ) | ||||||||||||||
| Net gain (loss) from discontinued operations, net of taxes | - | |||||||||||||||
| Net income (loss) | ( | ) | ||||||||||||||
| Preferred dividends | ( | ) | ||||||||||||||
| Net Income (Loss) Applicable to Common Stockholders | $ | ( | ) | |||||||||||||
| 30 |
| Media(1) | Travel | Corporate | Total | |||||||||||||
| Three Months Ended November 30, 2024 | ||||||||||||||||
| Media(1) | Travel | Corporate | Total | |||||||||||||
| Revenue | $ | - | $ | $ | - | $ | ||||||||||
| Cost of revenue (exclusive of depreciation and amortization, shown separately below) | - | - | ||||||||||||||
| Gross profit (loss) | - | ( | ) | - | ( | ) | ||||||||||
| Operating Expenses: | ||||||||||||||||
| Salaries and benefits | - | |||||||||||||||
| Stock based compensation | - | - | ||||||||||||||
| General and administrative | - | |||||||||||||||
| Sales and marketing | - | - | ||||||||||||||
| Professional service fees | - | - | ||||||||||||||
| Technology | - | |||||||||||||||
| Organization costs | - | - | ||||||||||||||
| Depreciation and amortization | - | - | ||||||||||||||
| Other expenses | - | |||||||||||||||
| Total Operating Expenses | - | |||||||||||||||
| Operating Loss | $ | - | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
| Other Income (Expense) | ||||||||||||||||
| Other Income (Expense) | - | |||||||||||||||
| Gain (Loss) on derivative liability | - | |||||||||||||||
| Gain (Loss) on extinguishment of liability | - | |||||||||||||||
| Interest income (expense), net | ( | ) | ||||||||||||||
| Total Other Income (Expense) | ( | ) | ||||||||||||||
| Net income (loss) from continuing operations before taxes | ( | ) | ||||||||||||||
| Provision for income taxes | - | |||||||||||||||
| Net income (loss) from continuing operations before share of net income (loss) in equity method investee | ( | ) | ||||||||||||||
| Share of net income (loss) of equity method investee | - | |||||||||||||||
| Net gain (loss) from continuing operations | ( | ) | ||||||||||||||
| Net gain (loss) from discontinued operations, net of taxes | ( | ) | ||||||||||||||
| Net income (loss) | ( | ) | ||||||||||||||
| Preferred dividends | ( | ) | ||||||||||||||
| Net Income (Loss) Applicable to Common Stockholders | $ | ( | ) | |||||||||||||
| (1) |
| 31 |
| Media | Travel | Corporate | Total | |||||||||||||
| Nine Months Ended November 30, 2025 | ||||||||||||||||
| Media | Travel | Corporate | Total | |||||||||||||
| Revenue | $ | $ | $ | - | $ | |||||||||||
| Cost of revenue (exclusive of depreciation and amortization, shown separately below) | - | - | ||||||||||||||
| Gross profit (loss) | - | |||||||||||||||
| Operating Expenses: | ||||||||||||||||
| Salaries and benefits | ||||||||||||||||
| Stock based compensation | - | - | ||||||||||||||
| General and administrative | ||||||||||||||||
| Sales and marketing | ||||||||||||||||
| Professional service fees | ||||||||||||||||
| Technology | ||||||||||||||||
| Organization costs | - | - | ||||||||||||||
| Depreciation and amortization | - | - | ||||||||||||||
| Other expenses | - | |||||||||||||||
| Total Operating Expenses | ||||||||||||||||
| Operating Loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Other Income (Expense) | ||||||||||||||||
| Other Income (Expense) | ||||||||||||||||
| Gain (Loss) on derivative liability | ||||||||||||||||
| Gain (Loss) on extinguishment of liability | ( | ) | ||||||||||||||
| Interest income (expense), net | ( | ) | ||||||||||||||
| Total Other Income (Expense) | ||||||||||||||||
| Net income (loss) from continuing operations before taxes | ( | ) | ||||||||||||||
| Provision for income taxes | - | |||||||||||||||
| Net income (loss) from continuing operations before share of net income (loss) in equity method investee | ( | ) | ||||||||||||||
| Share of net income (loss) of equity method investee | ( | ) | ||||||||||||||
| Net gain (loss) from continuing operations | ( | ) | ||||||||||||||
| Net gain (loss) from discontinued operations, net of taxes | - | |||||||||||||||
| Net income (loss) | ( | ) | ||||||||||||||
| Preferred dividends | ( | ) | ||||||||||||||
| Net Income (Loss) Applicable to Common Stockholders | $ | ( | ) | |||||||||||||
| 32 |
| Media(1) | Travel | Corporate | Total | |||||||||||||
| Nine Months Ended November 30, 2024 | ||||||||||||||||
| Media(1) | Travel | Corporate | Total | |||||||||||||
| Revenue | $ | - | $ | $ | - | $ | ||||||||||
| Cost of revenue (exclusive of depreciation and amortization, shown separately below) | - | - | ||||||||||||||
| Gross profit (loss) | - | - | ||||||||||||||
| Operating Expenses: | ||||||||||||||||
| Salaries and benefits | - | |||||||||||||||
| Stock based compensation | - | - | ||||||||||||||
| General and administrative | - | |||||||||||||||
| Sales and marketing | - | - | ||||||||||||||
| Professional service fees | - | |||||||||||||||
| Technology | - | |||||||||||||||
| Organization costs | - | - | ||||||||||||||
| Depreciation and amortization | - | - | ||||||||||||||
| Other expenses | - | |||||||||||||||
| Total Operating Expenses | - | |||||||||||||||
| Operating Loss | $ | - | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
| Other Income (Expense) | ||||||||||||||||
| Other Income (Expense) | - | |||||||||||||||
| Gain (Loss) on derivative liability | - | |||||||||||||||
| Gain (Loss) on extinguishment of liability | - | |||||||||||||||
| Interest income (expense), net | ( | ) | ||||||||||||||
| Total Other Income (Expense) | ( | ) | ||||||||||||||
| Net income (loss) from continuing operations before taxes | ( | ) | ||||||||||||||
| Provision for income taxes | - | |||||||||||||||
| Net income (loss) from continuing operations before share of net income (loss) in equity method investee | ( | ) | ||||||||||||||
| Share of net income (loss) of equity method investee | - | |||||||||||||||
| Net gain (loss) from continuing operations | ( | ) | ||||||||||||||
| Net gain (loss) from discontinued operations, net of taxes | ( | ) | ||||||||||||||
| Net income (loss) | ( | ) | ||||||||||||||
| Preferred dividends | ( | ) | ||||||||||||||
| Net Income (Loss) Applicable to Common Stockholders | $ | ( | ) | |||||||||||||
| (1) |
| 33 |
NOTE 14 - Subsequent Events
The Company’s management has evaluated subsequent events after the balance sheet dated as of November 30, 2025 through January 15, 2026, the date of this report.
On
December 19, 2025, the Company entered into securities purchase agreements with two private investors pursuant to which the Company sold
and issued
On
December 22, 2025, the Company entered into a Securities Purchase Agreement with an investor pursuant to which the Company agreed to
issue and sell, in a private placement
In
conjunction with the Purchase Agreement, the Company entered into the following agreements on December 23, 2025, which agreements were
entered into to ensure that the Company satisfies all listing requirements of the Nasdaq Capital Market (“Nasdaq”): (a) an
amendment to a common stock warrant issued to Denis Suggs for
On
December 30, 2025, the Company repaid the Alumni Note in full, including accrued and additional interest thereon. The Note had a principal
amount of $
On
December 30, 2025, the Company repaid the SIS II Note in full. The note bore guaranteed interest of
| 34 |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Forward-looking statements
This Quarterly Report on Form 10-Q for the quarter ended November 30, 2025 (this “Quarterly Report”) contains “Forward-Looking Statements.” All statements other than statements of historical fact are “Forward-Looking Statements” including but not limited to, statements regarding our expectations about development and commercialization of our technology, any projections of revenues or statements regarding our anticipated revenues or other financial items, any statements of the plans and objectives of management for future operations, any statements concerning proposed new products or services, any statements regarding future economic conditions or performance, and any statements of assumptions underlying any of the foregoing. All Forward-Looking Statements included in this Quarterly Report are made as of the date hereof and are based on information available to us as of such date. We assume no obligation to update any Forward-Looking Statement. In some cases, Forward-Looking Statements can be identified by the use of terminology such as “may,” “will,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,” “potential,” or “continue,” or the negative thereof or other comparable terminology. Although we believe that the expectations reflected in the Forward-Looking Statements contained herein are reasonable, there can be no assurance that such expectations or any of the Forward-Looking Statements will prove to be correct, and actual results could differ materially from those projected or assumed in the Forward-Looking Statements. Future financial condition and results of operations, as well as any Forward-Looking Statements are subject to inherent risks and uncertainties, including factors referred to in our press releases and reports filed with the Securities and Exchange Commission (the “SEC”). All subsequent Forward-Looking Statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional factors that may have a direct bearing on our operating results are described under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended February 28, 2025 and elsewhere in this Quarterly Report.
Corporation Information
Sigma Additive Solutions, Inc. (“Sigma”), the legal acquiror of NextTrip, was initially incorporated as Messidor Limited in Nevada on December 23, 1985, and changed its name to Framewaves Inc. in 2001. On September 27, 2010, the name was changed to Sigma Labs, Inc. On May 17, 2022, Sigma Labs, Inc. began doing business as Sigma Additive Solutions, and on August 9, 2022, changed its name to Sigma Additive Solutions, Inc.
On March 11, 2024, Sigma filed a Certificate of Amendment to its Amended and Restated Articles of Incorporation, as amended to date, with the Secretary of State of the State of Nevada, pursuant to which, effective as of 12:01 a.m. Pacific time on March 13, 2024, among other things, Sigma’s corporate name was changed from Sigma Additive Solutions, Inc. to “NextTrip, Inc.”
Our principal executive offices are located at 3900 Paseo del Sol, Santa Fe, New Mexico 87507, and our telephone number is (954) 526-9688. Our website address is www.nexttrip.com. The Company’s annual reports, quarterly reports, current reports on Form 8-K and amendments to such reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and other information related to the Company, are available, free of charge, on our website. The Company’s website and the information contained therein, or connected thereto, are not and are not intended to be incorporated into this Quarterly Report.
The Company provides travel technology solutions with sales originating in the United States, with a primary emphasis on hotels, air, and all-inclusive travel packages. Our proprietary booking engine, branded as NextTrip 2.0, provides travel distributors access to a sizeable inventory.
The Company owns 50% of Next Innovation LLC, a Joint Venture (“Next Innovation”), which is dormant. No activities nor operations occurred through Next Innovation in fiscal years 2024 or 2025 for this entity, and the Company does not have control of Next Innovation and therefore no minority interest was recorded.
| 35 |
Reverse Acquisition
On October 12, 2023, the Company (then known as Sigma) entered into a Share Exchange Agreement (the “Exchange Agreement”) with NextTrip Holdings, Inc. (“NTH”), NextTrip Group, LLC (“NTG”), and William Kerby (the “NTH Representative”), pursuant to which the Company acquired NTH (the “NextTrip Acquisition”) in exchange for shares of our common stock, which we refer to as the Exchange Shares. The NextTrip Acquisition was consummated on December 29, 2023. As a result, NTH became a wholly-owned subsidiary of the Company.
Upon the closing of the NextTrip Acquisition, the shareholders of NTG (collectively, the “NTG Sellers”), were issued a number of Exchange Shares equal to 19.99%, or 156,007 shares, of our issued and outstanding shares of common stock immediately prior to the closing. Under the Exchange Agreement, the NTG Sellers were entitled to receive additional shares of our common stock, referred to as the Contingent Shares, subject to NTH’s achievement of future business milestones (the “Milestone Events”) specified in the Exchange Agreement as follows:
| Milestone Event | Date Earned | Contingent Shares | Status as of the date of this Report | |||
| Launch of NTH’s leisure travel booking platform by either (i) achieving $1,000,000 in cumulative sales under its historical “phase 1” business, or (ii) commencement of its marketing program under its enhanced “phase 2” business. | As of a date six months after the closing date | 1,450,000 Contingent Shares | Achieved. Marketing program under “phase 2” has commenced. | |||
| Launch of NTH’s group travel booking platform and signing of at least five (5) entities to use the Groups Platform. | As of a date nine months from the closing date (or earlier date six months after the closing date) | 1,450,000 Contingent Shares | Achieved. Five groups have been contracted to use the Groups Platform. | |||
| Launch of NTH’s Travel Agent Platform and signing up of at least 100 travel agents to the platform (which calculation includes individual agents of an agency that signs up on behalf of multiple agents). | As of a date 12 months from the closing date (or earlier date six months after the closing date) | 1,450,000 Contingent Shares | Achieved. The company has signed up more than 175 travel agents to its Travel Agent Platform. | |||
| Commercial launch of PayDlay technology in the NXT2.0 system. | As of a date 15 months after the closing date (or earlier date six months after the closing date) | 1,650,000 Contingent Shares, less the Exchange Shares issued at the closing of the Acquisition | Achieved. PayDlay has been commercially launched. |
The Contingent Shares, together with the shares of our common stock issued at the closing, was not to exceed 6,000,000 shares of our common stock, or approximately 90.2% of our issued and outstanding shares of common stock immediately prior to closing.
The Exchange Agreement provided that William Kerby, the Chief Executive Officer and co-founder of NTH, was appointed as Chief Executive Officer of the Company and Donald P. Monaco was appointed as a director of the Company as of the closing of the NextTrip Acquisition. Additionally, pursuant to the Exchange Agreement, the NTH Representative (Mr. Kerby) shall be entitled to designate a replacement for one additional director of the Company upon achievement of each of the milestones under the Exchange Agreement (the “Board Appointment Rights”).
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In connection with the NextTrip Acquisition, the Company and Nasdaq determined that the issuance of Contingent Shares upon achievement of any one of the Milestone Events would result in a change in control of the Company under Nasdaq Listing Rule 5635(a). Pursuant to Nasdaq Listing Rule 5110(a), the Company was required to submit an initial listing application with Nasdaq and to obtain Nasdaq approval of the initial listing application prior to the issuance of the Contingent Shares.
On March 25, 2025, the Company received a letter from Nasdaq notifying the Company that it had approved the Company’s initial listing application in connection with the issuance of the Contingent Shares. On March 26, 2025, the Company issued the NTG Sellers an aggregate of 4,393,993 of the Contingent Shares in satisfaction of the Company’s obligations under the Exchange Agreement. As a result of Nasdaq’s approval of our initial listing application, the issuance of the Contingent Shares was completed in compliance with Nasdaq Listing Rule 5110(a) and the Company’s shares of common stock continue to trade on the Nasdaq Capital Market under the symbol “NTRP.”
On May 5, 2025, as a result of the achievement of the fourth and final business milestone, the remaining 1,450,000 Contingent Shares were issued to the NTG Sellers. No additional shares are issuable pursuant to the Exchange Agreement as of the date of this Quarterly Report.
In July 2025, Mr. Kerby, in his capacity as the NTH Representative, informed the Company of his election to exercise the Board Appointment Rights pursuant to the Exchange Agreement and designated Stephen Kircher, Jimmy Byrd, Carmen Diges and David Jiang (collectively, the “NTH Appointees”) as the individuals to replace the continuing legacy Sigma directors. On July 14, 2025, the Company’s Board of Directors appointed the NTH Appointees as directors of the Company, in each case effective July 28, 2025, at which time Salvatore Battinelli, Jacob Brunsberg, Dennis Duitch and Kent Summers resigned as directors of the Company. Stephen Kircher shall serve as a Class I director, with his initial term expiring at the Company’s 2028 Annual Meeting of Stockholders; Jimmy Byrd shall serve as a Class II director, with his initial term expiring at the Company’s 2026 Annual Meeting of Stockholders; and Ms. Diges and Mr. Jiang shall each serve as a Class III director, with their initial terms expiring at the Company’s 2027 Annual Meeting of Stockholders. Each of NTH Appointees will serve as a director for the balance of their respective initial terms, and until his or her successor is elected and qualified, subject to his or her earlier death, resignation or removal.
Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported assets, liabilities, sales and expenses in the accompanying financial statements. Critical accounting policies are those that require the most subjective and complex judgments, often employing the use of estimates about the effect of matters that are inherently uncertain. By their nature, changes in these assumptions and estimates could significantly affect our financial position or results of operations. Significant accounting estimates that may materially change in the near future are revenue recognition, impairment of long-lived assets, values of stock compensation awards and stock equivalents granted as offering costs, and allowance for bad debts and inventory obsolescence. Such critical accounting policies, including the assumptions and judgments underlying them, are disclosed in Note 1 of the Notes to Financial Statements included in this Quarterly Report. However, we do not believe that there are any alternative methods of accounting for our operations that would have a material effect on our financial statements.
The critical accounting policies and estimates addressed below reflect our most significant judgements and estimates used in the preparation of our financial statements.
Revenue Recognition – The Company recognizes revenue in accordance with ASC 606 which involves identifying the contracts with customers, identifying performance obligations in the contracts, determining transactions price, allocating transaction price to the performance obligation and recognizing revenue when the performance obligation is satisfied.
The Company recognizes revenue when the customer has purchased the product, the occurrence of the earlier of date of travel or the date of cancellation has expired, as satisfaction of the performance obligation, the sales price is fixed or determinable and collectability is reasonably assured. Revenue for customer travel packages purchased directly from the Company are recorded gross (the amount paid to the Company by the customer is shown as revenue and the cost of providing the respective travel package is recorded to cost of revenues).
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The Company generates revenues from sales directly to customers as well as through other distribution channels of tours and activities at destinations throughout the world.
The Company controls the specified travel product before it is transferred to the customer and is therefore a principal, based on but not limited to, the following:
| ● | The Company is primarily responsible for fulling the promise to provide such travel product. | |
| ● | The Company has inventory risk before the specified travel product has been transferred to a customer or after transfer of control to a customer. | |
| ● | The Company has discretion in establishing the price for the specified travel product. |
Payments for tours or activities received in advance of services being rendered are recorded as deferred revenue and recognized as revenue at the earlier of the date of travel or the last date of cancellation (i.e., the customer’s refund privileges lapse).
Investments in Equity Securities without Readily Determinable Fair Value
In accordance with ASC 321-10-35-2, the Company holds certain investments in equity securities in which the Company does not have significant influence or control, and for which fair value is not readily determinable. These investments are primarily accounted for at cost, less any impairment. The carrying amount is periodically evaluated for impairment, and if necessary, an impairment loss is recognized in the statement of operations. These investments are not adjusted for unrealized gains or losses unless an impairment is identified.
For investments in non-public entities where fair value is not determinable, the Company does not adjust the carrying value for changes in fair value, except for impairment losses. The fair value of these investments is disclosed when it is practicable to determine.
Promissory Note Receivable
Pursuant to the terms of the Promissory Note (the “NextPlay Note”) between NTH and NextPlay Technologies, Inc. (“NextPlay”), the NextPlay Note was due and payable in full on the earlier of September 1, 2023 or the date the Company completed a financing of $10 million or more. No payments have been made by NextPlay, and as such NextPlay is in default under the terms of the NextPlay Note.
On January 27, 2025, as creditors of NextPlay, Donald P. Monaco, the Company’s Chairman, William Kerby, the Company’s Chief Executive Officer, and Ian Sharpe, the Chief Operating Officer of the Company’s Media division, filed a petition to force NextPlay into involuntary bankruptcy as a result of unpaid fees. The proceedings are ongoing and the outcome at this time is uncertain and cannot be predicted. As a result, management has determined that the collectability of the NextPlay Note is uncertain and has therefore established an allowance for credit losses for the entire balance of $2,567,665.
Fair Value Measurements
We measure certain financial instruments at fair value, which requires management to make estimates and assumptions. For most items such as cash, receivables, and payables, fair value is straightforward because of their short-term nature. However, two obligations we assumed in connection with our acquisition of TA Pipeline LLC involve more judgment and could have a meaningful effect on our results.
| ● | Put Option – The restricted shares issued in the acquisition give the sellers the right, under certain conditions, to require us to either repurchase the shares, issue additional shares, or make a cash payment if our stock trades below a set price. We record this obligation as a liability, and its value changes with movements in our stock price and related assumptions. | |
| ● | TA Milestone Payment – We also agreed to make an additional payment to the sellers based on TA Pipeline revenue during the first year after closing. This payment, which will be made in both cash and stock, is also recorded as a liability and depends on our projections for TA Pipeline’s performance. |
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Because the fair value of these obligations depends on factors outside of our control, such as our stock price and TA Pipeline’s revenues, the amounts we record may change from period to period. For example, a change in our assumed stock price volatility could change the value of the Put Option liability, while a similar change in projected revenues could affect the Milestone Payment liability.
Stock Based Compensation
We grant stock options, restricted stock, and other equity-based awards to employees, executives, directors, and consultants. The fair value of these awards is measured on the grant date and recognized as compensation expense over the vesting period.
Determining the fair value of stock options requires the use of valuation models, such as the Black-Scholes model, which involve assumptions about stock price volatility, expected term of the option, risk-free interest rates, and dividend yields. These assumptions are based on historical data and market conditions but involve judgment about future trends.
Because changes in these assumptions can significantly affect the estimated fair value, our stock-based compensation expense could vary materially from period to period. For instance, higher assumed volatility or longer expected option lives generally increase the fair value of options, leading to higher compensation expense.
Goodwill and Intangible Assets
We record goodwill and intangible assets in connection with business acquisitions. Goodwill represents the excess of the purchase price over the fair value of the net assets acquired. Intangible assets primarily include trade names, customer and supplier relationships, and technology.
We review goodwill and indefinite-lived intangible assets for impairment at least annually, or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. This process requires management to make assumptions and estimates which involve significant judgment. Changes in assumptions could materially affect whether an impairment is recognized and the amount of any impairment charge.
Segments
Segment reporting is considered a critical accounting policy because it requires management to exercise judgment in identifying operating segments, determining how those segments are aggregated into reportable segments, and determining the information reviewed by our Chief Operating Decision Maker (“CODM”) for purposes of allocating resources and assessing performance. Our determination of reportable segments is based on multiple factors, including the nature of the products and services offered, the types of customers served, the economic characteristics of each business, and the manner in which financial information is reviewed by our CODM. Our CODM is our Chief Executive Officer.
In response to acquisitions and expanded business activities, during the third quarter of fiscal year 2026, our CODM requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. This change was driven primarily by acquisitions completed during fiscal year 2026, including FSA and TA Pipeline, which expanded our travel-related operations, and JOURNY.tv, which expanded our media operations. As a result of these changes, we updated our internal reporting structure and, beginning in the third quarter of fiscal year 2026, we report our financial performance based on two reportable segments: Travel and Media.
Our Travel segment provides travelers with a full range of travel services through our NXT2.0 booking engine, which offers extensive inventory and a platform for curating personalized experiences and efficient trip planning and booking. In addition, Five Star Alliance provides luxury and cruise offerings, and TA Pipeline provides a group-travel agency platform for conferences, conventions, weddings, and affinity groups. Our Media segment consists of JOURNY.tv, a Connected TV Channel broadcast as Free Ad Supported Streaming TV (“FAST”) and Advertising Video on Demand (“AVOD”) that specializes in travel, adventure, and culture-focused content, and Travel Magazine, an online travel magazine that provides articles, tips, guides, and inspiration for travelers. We leverage our media brands as strategic tools to generate travel bookings by integrating content, marketing, and booking technology, as well as to generate advertising revenues from third-party content.
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Our primary measure of segment performance is Operating Income (Loss). Operating Income (Loss) for the Travel and Media segments includes direct expenses attributable to each segment, as well as allocations of certain expenses, primarily salaries and benefits, third-party contractors, sales and marketing, and technology costs. These allocations are based primarily on transaction volumes and other usage-based metrics. Shared corporate expenses, including accounting, human resources, certain information technology costs, legal, audit, investor relations, directors’ compensation, stock-based compensation expense, amortization of intangible assets, and corporate development costs, are not allocated to the reportable segments and are included within Corporate.
Because the Travel and Media segments were newly formed during fiscal year 2026, the financial reporting framework supporting segment reporting continues to evolve. While the CODM currently uses Operating Income (Loss) in the monthly financial review process to assess segment performance, he is continuing to review and refine the nature, level of detail, and frequency of the financial information provided in order to determine how it will ultimately be used in decision-making, including resource allocation, budgeting, forecasting, and performance evaluation. As the segments mature, the metrics reviewed by the CODM, the cost allocation methodologies applied, and the presentation of segment information may change to better reflect how the business is managed.
The CODM does not regularly review asset information by segment, and as a result, depreciation and amortization are excluded from the segment performance measure. Accordingly, we do not report segment assets, as such information would not be meaningful.
The change in reportable segments did not result from a change in accounting principle, but rather reflects a change in internal reporting and management approach following fiscal year 2026 acquisitions and expanded business activities. Segment information for prior periods has been recast to conform to the current presentation to provide consistency and comparability across periods. Any future refinements to segment reporting will reflect changes in management’s internal reporting and decision-making processes rather than changes in accounting principles. When applicable, we will disclose such changes and recast prior-period segment information as necessary to maintain comparability.
Business Overview
NextTrip is an early-stage, technology-driven travel company developing an integrated travel booking and media platform designed to connect leisure, group and business travelers to the world. Our travel booking platform is powered by our proprietary NXT2.0 booking engine, which offers extensive inventory, supporting both travelers and distributors with a platform for curating personalized experiences and efficient trip planning and booking. We market our travel services through several core brands including NextTrip Vacations (direct-to-consumer leisure travel), Five Star Alliance (luxury and cruise bookings) and NextTrip Business (small-to-mid-sized corporate travel) and differentiate our platform through specialty features, including specialized widgets for groups (the “Groups Platform”) and travel agents (the “Travel Agent Platform”), as well as PayDlay, a delayed payment booking option. Complementing our booking engine are our media properties, including JOURNY.tv and Travel Magazine, which provide destination content that we believe will drive high-intention traffic into our booking funnel and, over time, constitute a separate high-margin advertising revenue stream. As part of streamlining our media assets, we merged Compass.tv into JOURNY.tv in July 2025 to create a unified offering of both FAST (Free Ad-Supported Streaming Television) and VOD (Video on Demand) assets.
By integrating our media properties with our travel booking platform, our objective is to build a next-generation travel solution for consumers, allowing them to better research and explore desired travel destinations. To accomplish this, we have and will be using content from ours and others’ media platforms featuring travel videos, blogs and articles along with access to curated travel products from our strategic partnerships, all supported by our technology and call center agents. Upon full integration of our travel and media platforms, we believe our offers will both inspire and empower consumers to make informed choices when booking. This contrasts with the existing online travel agency (“OTA”) model that focuses on volume bookings with little to no service support.
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Current Scale and Going Concern
We are in the early stages of commercial operations.
Due to uncertainties regarding our ability to meet our current and future operating and capital expenses, there is substantial doubt about our ability to continue as a going concern for 12 months from the date of filing of this Quarterly Report and the report of our registered independent public accounting firm filed with our Annual Report on Form 10-K for our the fiscal year ended February 28, 2025 contains a going concern qualification.
We expect to continue to incur net losses and negative cash flows from operations for the foreseeable future as we invest in technology enhancements, supplier relationships, and marketing initiatives. Throughout this report, whenever we discuss our operational achievements, ecosystem, or growth plans, you should consider that we presently have nominal revenues, limited operating history, minimal brand awareness, and will require significant additional capital to execute our business model.
NXT2.0 – Our Integrated Travel Booking Platform
At the core of our business is our proprietary, direct-to-consumer NXT2.0 travel booking engine, which has been continually enhanced and developed through a series of acquisitions of a variety of media and travel assets. NXT2.0 powers several websites, including our main leisure site, nexttrip.com, and fivestaralliance.com, our widgets for The Groups and Travel Agent Platforms, as well as providing travel booking solutions for our media hubs, JOURNY.tv and travelmagazine.com. We serve both leisure and business travelers by offering them access to travel blogs, videos and concierge assistance to aid in planning travel, coupled with our proprietary booking platform for the direct purchase of flights, hotels, vacation homes, cruise, tours, and other travel products. Our content includes destination guides, maps and travel tips, designed to help travelers plan memorable trips and book those trips on our travel platform.
Travel Products and Services
As with many OTAs or booking engines in the travel industry, a travel booking platform is the technological foundation of our business. Our travel-product strategy relies on the NXT2.0 booking engine, whose commercial viability depends on a mix of higher-margin direct contracts and lower-margin, third-party application program interface (“API”) inventory which broadens the platform’s reach. Our principal objective is to negotiate fixed-base-pricing agreements that confer pricing control and margin optimization; these contracts permit us to deploy competitively priced promotions while preserving profitability. Early initiatives have concentrated on hotel and vacation suppliers, including the April 3, 2025 agreement under which NextTrip became the exclusive booking engine for Intimate Hotels of Barbados, a consortium of more than 35 independent properties.
This flexibility affords us the opportunity to run specials on travel offerings that are highly competitive, but we will require additional funding to support comprehensive marketing and awareness campaigns to attract new customers. Until this happens, we are working to target customers with low dollar marketing campaigns in the leisure travel space, as well as pursuing strategic partnerships and specialized travel offerings (e.g. Groups Platform), while maintaining competitiveness within our marketplace through adjustment of pricing.
To supplement and scale our proprietary content, we have layered in third-party inventory through API integrations, thereby furnishing users with comprehensive, one-stop access to more than four million hotels, vacation rentals, cruises, and activity products worldwide. This phase commenced with the acquisition of BookIt.com and associated access to Expedia’s global hotel database and has since expanded to encompass strategic alliances with Nuitée, Global Distribution Systems, Signature Vacations, and other third-party suppliers. The Company has also strengthened its luxury and cruise offerings through the acquisition of Five Star Alliance, whose curated portfolio of over 5,000 five-star properties and 400,000 monthly site visitors, resulting in an industry coveted 4.9-star Trustpilot rating, helps enhance NextTrip’s technology-driven platform. Collectively, these integrations are intended to provide the inventory depth necessary to activate NextTrip’s specialty features, facilitate cross-selling, and establish a scalable foundation for future direct-contract growth. See “Recent Developments – Acquisition of Five Star Alliance” for more details on the transaction.
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The acquisition of TA Pipeline in November 2025 represents a significant milestone in NextTrip’s expansion of its Groups and MICE (Meetings, Incentives, Conferences, Exhibitions) vertical, an area with strong growth potential and margin contribution. TA Pipeline has established itself as a premier group-travel agency platform with deep expertise in delivering end-to-end solutions for conferences, conventions, weddings, and affinity groups, often servicing groups ranging from 50 to 5,000 travelers. Its strong relationships with suppliers, planners, and affinity partners align seamlessly with NextTrip’s vertically integrated “content-to-commerce” ecosystem, providing:
| ● | High-Value Customer Base: The acquisition expands NextTrip’s reach into large group travel organizers, a segment characterized by high transaction values and repeat business. | |
| ● | Technology & Synergies: By integrating TA Pipeline’s customer pipeline into NextTrip’s proprietary NXT2.0 booking technology, PayDlay financing tool, and concierge services, the Company is positioned to enhance conversion rates and drive incremental travel bookings. | |
| ● | Cross-Media Leverage: TA’s group and event-based customers will be supported by NextTrip’s media brands (JOURNY.tv, and Travel Magazine 2.0), creating new marketing opportunities and accelerating NextTrip’s dual revenue model of advertising and travel bookings. |
The TA Acquisition exemplifies the Company’s “buy-and-build” strategy of acquiring complementary assets that are accretive to revenues and synergistic with NextTrip’s broader vision of redefining how consumers and organizations discover, plan, and book travel. See “Recent Developments – Acquisition of TA Pipeline” for more details on the transaction.
Our offerings include a mixture of direct contracts and third-party API content which span leisure and business travel, alternative lodging, wellness travel, and media solutions, engaging customers throughout their travel journey with both individual and packaged options. Such product offering highlights include:
| ● | NextTrip Leisure – A robust booking engine providing customized vacation packages, flights, hotels, tours, wellness vacations, cruise and group travel options. | |
| ● | NextTrip Luxury & Business – Five Star Alliance provides access to over 5,000 luxury hotel properties worldwide featuring booking, expense reporting, concierge services, and 24/7 support. | |
| ● | NextTrip Cruises – a fully integrated cruise booking engine providing access to over 10,000 sailings and 35 cruise partners. Travelers benefit from exclusive pricing, concierge service, and bundled packages that include transfers, pre- and post-cruise stays, and expert travel support. | |
| ● | NextTrip Solutions – A suite for product management and white-label solutions, including property management, vacation rentals, and a portal to support travel agents – the Travel Agent Platform. | |
| ● | NextTrip Media – Travel Magazine and JOURNY.tv, offering travelers inspiration and information through articles, videos, and immersive digital experiences. This will include personalized travel content for users to explore and share with friends and family. |
NXT2.0 Platform Features
Our NXT2.0 travel booking platform at nexttrip.com offers tools for browsing and comparing flights, hotels, tours, cruises and activities. Additionally, we allow travelers to defer payments on select vacation packages with our proprietary PayDlay program. PayDlay allows travelers to purchase travel with a small deposit and make subsequent payments between purchase and the week before travel. Registered NextTrip travelers can manage bookings, receive updates on special offers, and subscribe to newsletters with travel tips and destination highlights. Security is a priority, with rigorous content screening and Payment Card Industry compliance to safeguard customer information. The platform further distinguishes itself through exclusive supplier partnerships that yield preferential rates, targeted promotions, and inventory advantages, while its robust architecture supports complex group bookings—covering conferences, conventions, and destination weddings via a specialized Groups Platform—and equips over 150 beta-testing professionals with a Travel Agent Platform that streamlines multi-passenger reservations.
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As we execute our business model by increasing our inventory base and expanding key partnerships, we plan to launch a series of additional features designed to benefit its users. We intend to further integrate our media features with our booking system, bringing together travel content and itinerary management in one interface. The “My Journy” personalized travel-planning magazine is intended to provide editorial features, destination information, and user-specific offers based on analysis of past searches and bookings. By including this content in the booking process, NXT2.0 aims to turn browsing into bookings more efficiently and give suppliers better opportunities to promote their products. We also plan to introduce a multi-level rewards program that gives benefits for repeat bookings, using different channels, and social interactions within the platform. A planned group chat and sharing feature will let families, friends, and corporate groups work together on itinerary changes in real time. These developmental features are designed to encourage customer loyalty and keep users engaged with NXT2.0. An AI-powered travel assistant is in development which is intended to provide recommendations, price alerts and support, offering services usually found in premium travel agencies in a digital format. Following the initial launch of the Travel Agent Platform, we are continuing development of new tools for travel agents. With new product options like cruises, wellness retreats, and extra experiences, NXT2.0 aims to attract more leisure and business travelers. These updates are intended to boost user engagement, speed up bookings, and increase customer value, while giving NextTrip a competitive edge through technology and personalized data.
NextTrip Integrated Media Solutions
In addition to the key features, robust inventory, and focus on underserved market opportunities like groups and travel agent bookings, a key differentiator benefiting the growth and development of our NXT2.0 booking engine is our media strategy which, when fully integrated with NXT2.0, is intended to offer a comprehensive travel and media ecosystem designed to guide and support consumers throughout their travel experience from inspiration to booking, to travel to sharing the journey on social media.
We leverage our media brands—TravelMagazine.com and JOURNY.tv—as strategic tools to generate travel bookings by integrating content, marketing, and booking technology as well as to generate advertising revenues for third-party content. The strategy includes generating content marketing and inspiration, integrating booking opportunities into that content and generating feedback from such advertising data to better target and identify travel interests and intent, which is intended to lead to growing brand trust and authority and future partnerships and opportunities for sponsored advertising content.
By combining engaging travel content with seamless booking technology and targeted marketing, our media brands serve as both inspiration engines and direct booking channels. This holistic approach helps capture travelers at every stage of the decision-making process, ultimately driving more bookings through the NXT2.0 platform and independent advertising revenue.
Key media brands and partnerships include:
| ● | Travel Magazine – TravelMagazine.com is our media hub. It is an online travel publication that provides articles, guides, tips, and inspiration for travelers. Coming soon is “My Bucket List,” a platform where travelers can create and share personalized travel lists, supported by booking features and local insights. | |
| ● | JOURNY.tv – In April 2025, we acquired JOURNY.tv, a Free Ad-Supported Streaming TV (“FAST”) Channel that specializes in travel, adventure, and culture-focused content. In July 2025, we merged Compass.tv, our AVOD (Advertising-based Video on Demand) platform designed to provide streaming television content, into JOURNY.tv to create a unified offering of both FAST and VOD assets. | |
| ● | Promethean – Promethean is our proprietary interactive video overlay platform which is intended to drive ad revenue and facilitate content-to-commerce integration. | |
| ● | Leap Media – In December 2024, we announced our collaboration with Leap Media Group, a respected leader with over 35 years in TV advertising, media planning and buying, to support the launch of advertising on JOURNY.tv by delivering branded entertainment content and advertising seamlessly across its platform. |
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| ● | Blue Fysh – In February 2025, the Company and Blue Fysh Holdings Inc. (“Blue Fysh”) entered into a share exchange agreement creating minority ownership positions between the entities, as part of their mutual efforts to work together to expand each company’s business opportunities. See “Recent Developments – Blue Fysh Share Exchange” for more details on the transaction. |
The strategic partnership between NextTrip and Blue Fysh is intended to focus on:
| ● | Expanded audience reach integrating JOURNY.tv, TravelMagazine.com, and travel products platform, NextTrip.com, with Blue Fysh’s expertise in digital OOH solutions throughout North America; | |
| ● | Increased advertising revenue by leveraging their combined media assets, to enhance their ability to broaden reach, deployment, and higher expected advertising fees, providing greater value to advertisers and stakeholders; | |
| ● | Enhanced sales efforts with NextTrip utilizing Blue Fysh’s strategic sales relationships to contribute advertising sales across NextTrip’s media platforms; and | |
| ● | Increased Brand Awareness as a result of Blue Fysh’s media relationships and digital displays to help create flash marketing campaigns to raise awareness of NextTrip and highlight NextTrip’s travel products and services as well as its media properties, JOURNY.tv and Travel Magazine. |
Revenue Strategy and Development of an Integrated Travel and Media Ecosystem
Our revenue strategy and business model focuses on integrating our Media and Travel segments, offering users a comprehensive ecosystem designed to guide and support them throughout the travel experience. Presently, we generate revenue through two core methods: travel bookings and advertising revenue.
Travel Bookings and Related Services
NextTrip, like many OTAs and travel platforms, can generate revenue through a variety of channels. The specific mix depends on the continued development of our platform, execution of our business model, partnerships, and the types of services we offer at any given time.
Product sales are generally structured either: (1) as a set commission on the sale of a travel product whereby the supplier or wholesaler controls the pricing (as is the case with the majority of Five Star Alliance products), or (2) through a direct, negotiated contract between product supplier and the Company (as is the case with the majority of our products) which allows us to set our own retail pricing based upon market forces and a need to maintain a markup above its fixed cost. Commission-based travel products are generally lower margin than directly negotiated travel products.
The flexibility of directly negotiated contracts affords us the opportunity to both run specials that are highly competitive but result in low margins, or to simply adjust pricing to maintain competitiveness within its market. Key factors that affect revenues and profitability include competitive market pressures from other travel suppliers and distributors, variable contract terms, marketing budget to create awareness, and seasonality.
Leisure travel bookings currently generate the majority of our nominal revenues. This includes the sale of travel products such as airline tickets, hotel rooms, and cruises as well as travel services such as travel insurance and ground activities. While we believe this revenue can be accelerated with an enhanced marketing budget, management has largely focused on supplements to its travel offerings by including travel technology products such as our Travel Agent and Groups Platforms.
Additionally, offering concierge-level customer support, trip planning assistance or other premium features can provide peace of mind and added convenience and may result in premium service fees added to the cost of booking, which represents direct revenue for us.
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Advertising
We are building our own media and advertising ecosystem within our Media segment through Travel Magazine and JOURNY.tv. These media platforms are designed to allow users to explore and educate themselves on travel. The revenue strategy in the media division is two-pronged: (1) as the number of viewers/users grows, it drives the advertising rates we can charge third-parties to promote travel products and services to our audience and (2) outside of the direct advertising dollars generated from our media platforms which are expected to become a key driver of higher margin revenue than those earned from travel product sales, as the audience grows it will provide additional opportunities for us to promote ours own travel offerings to highly targeted viewers, thus lessening the need for spending significant marketing dollars through other mediums to attract consumers.
To drive this initiative, we have entered into partnerships with Travel Spike and Leap Media Group, respected leaders in the travel category with decades of experience in TV advertising, media planning and buying. JOURNY.tv is now equipped to deliver branded entertainment content and advertising seamlessly across its platform, supported by targeted media strategy designed to optimize revenue well delivering high quality content to travel enthusiasts.
Development of Integrated Revenue Model – Strategy and Current Status
As we are still in the developmental phase of our commercial operations and have thus far realized only nominal revenues, the successful execution of our business strategy is predicated upon our capacity to broaden and deepen our supplier base, cultivate and maintain a robust customer network, and obtain adequate financing to underwrite our marketing initiatives and continued product development. There can be no assurance that we will be able to accomplish any of these objectives.
We are in the early stages of development and roll out of our comprehensive travel and media model. While the products introduced to date are now functional and responsible for the current, nominal revenue generation of the Company, the corresponding revenue streams are currently both small and unpredictable relative to the established travel industry leaders.
While our core marketing initiatives have been handicapped due to budget constraints, we have undertaken limited promotions focused on higher margin products, in sought after vacation regions like Mexico and the Caribbean. Recognizing these marketing budget restraints, we focused our efforts on expanding our product offering globally with major suppliers, including Expedia and Nuitée, among others. Management believes this was a critical step to allow for the launch and promotion of specialty travel services like NextTrip’s Groups Platform (i.e. destination weddings, conferences and conventions), NextTrip Travel Agents Platform and business-focused travel offerings. These types of programs require unique technologies, broad global inventory offerings, and specialized servicing. Key to this development is the fact that the platforms fall outside of the typical OTA business model, thereby justifying the supply of travel products from large OTAs, which in turn supports our platforms while being mutually beneficial to both parties.
Our ability to capitalize on existing travel technology platforms is severely restricted due to the lack of funding to drive marketing programs. Enhancements to the existing platforms along with the introduction of new programs under development are needed to complete the model. The timeline to complete these programs is dependent upon our ability to raise capital; however, we believe that most programs can be delivered within 180 days of obtaining such necessary funding. Once fully functioning, we believe the model will deliver accelerated growth as its “conversion technology” focuses on underserved areas in the travel sector utilizing platforms (i.e. PayDlay, Groups bookings and Travel Agents) that are not well serviced by the major travel industry leaders. Additionally, we have introduced engagement and media solutions (i.e. JOURNY.tv Travel Magazine), allowing users to better plan future travel. We believe a natural extension of providing users with media solutions to assist with travel planning will further the development and growth of a NextTrip ecosystem. This ecosystem is expected to assist us in reducing external marketing expenditures while creating a new revenue channel from targeted and timely advertising designed to assist users in their travel planning. Upon completion of the NextTrip model, we expect to drive revenues from travel solutions outside of the focus of major travel competitors.
We are also engaging Save Your Day Films, a London-based production company celebrated globally for award-winning factual programming and captivating travel content, as an in-house production partner to deliver exclusive content as part of our media strategy, driving traffic, cross-promotional opportunities and licensing revenues.
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Recent Developments
Acquisition of TA Pipeline
On August 6, 2025, the Company entered into a Membership Interest Purchase Agreement (the “TA MIPA”) with TA Pipeline LLC (“TA”) and the members of TA (the “TA Members”), pursuant to which the Company purchased all of the issued and outstanding membership interests of TA from the TA Members (the “TA Acquisition”), resulting in TA becoming a wholly-owned subsidiary of the Company. The TA Acquisition closed on August 6, 2025.
Pursuant to the TA MIPA, as consideration for the TA Acquisition, at closing, the Company (i) paid the TA Members an aggregate of $443,169 in cash (the “TA Closing Payment”), $118,169 of which (the “Estimated Additional Closing Payment”) was paid as a purchase price adjustment based on the Members’ Deficit (as defined in the TA MIPA) set forth in the closing balance sheet provided by TA in connection with closing, as more particularly provided for by the TA MIPA; and (ii) issued an aggregate of 96,774 restricted shares of Company common stock (the “TA Closing Shares,” and together with the TA Closing Payment, the “TA Closing Consideration”) to the TA Members, valued at $300,000, based on a price per share of $3.10. The Estimated Additional Closing Payment is subject to adjustment, upward or downward, to the extent that the Members’ Deficit as of the closing date is determined to be less than or exceed $175,000, as provided in the TA MIPA. In addition to the TA Closing Consideration, and as further consideration for the TA Acquisition, the Company shall make an additional payment to the TA Members in the form of an earnout (the “TA Milestone Payment”), which shall be in an amount equal to five percent (5%) of the net revenues generated by TA during the 12 month period after the closing date (the “Milestone Period”), up to a maximum of $200,000. The TA Milestone Payment shall be paid to the TA Members within 10 days following completion of the Milestone Period and will be payable fifty percent (50%) in cash and fifty percent (50%) in restricted shares of Company common stock (the “TA Milestone Shares,” and together with the TA Closing Shares, the “TA Acquisition Shares”), to be calculated based on a price per share of $3.10
In addition to the foregoing, in the event that the Fair Market Value of the Company’s common stock is less than $3.10 (the “Base Price”) during the applicable Exercise Period, each TA Member shall have the limited, one time option, to exercise one of the following rights as to some or all of their outstanding TA Acquisition Shares by delivering notice to the Company: (i) the right to require the Company to repurchase from the TA Member all or any portion of their outstanding TA Acquisition Shares at the Base Price; (ii) the right to require the Company to issue to such TA Member that number of additional shares of Company common stock (the “Top Up Shares”) as is necessary to make the aggregate value of the number of TA Acquisition Shares specified in the notice (based on the Fair Market Value) equal to the original aggregate value of the number of TA Acquisition Shares specified in the notice (based on the Base Price); and (iii) the right to require the Company to pay to such TA Member, in cash, an amount equal to the product of (x) the number of TA Acquisition Shares specified in the notice and (y) the positive difference, if any, between the Base Price and the Fair Market Value. For purpose of the foregoing rights, the “Exercise Period” means the three month period commencing upon the earlier of: (i) with respect to the TA Closing Shares, (x) the date that the TA Closing Shares first become eligible for public resale and (y) the first anniversary of the closing date; and (ii) with respect to the TA Milestone Shares, (x) the date that the TA Milestone Shares first become eligible for public resale and (y) the first anniversary of the closing date. Additionally, for purpose of the foregoing rights, “Fair Market Value” means the volume weighted average price per share of the Company’s common stock for the twenty consecutive trading days immediately preceding the notice date. During the Exercise Period, each of the TA Members shall be prohibited from engaging in certain transactions in the Company’s stock, as more particularly set forth in the TA MIPA.
In consideration for their receipt of the foregoing consideration, at closing of the TA Acquisition, each of the TA Members entered into restrictive covenant agreements providing for certain customary restrictive covenants, including customary non-competition, non-solicitation and no hire covenants for a period of three years following the closing date, and customary confidentiality covenants.
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Acquisition of Five Star Alliance
On February 6, 2025, the Company entered into a Membership Interest Purchase Agreement (the “FSA Purchase Agreement”) with FSA Travel, LLC (“FSA”), John McMahon, as Majority Member, and the other members of FSA included on the signature page thereto (Mr. McMahon together with such other members, collectively the “FSA Members”). Pursuant to the FSA Purchase Agreement, on February 10, 2025 (the “Initial Closing Date”), the Company purchased 9,608 membership units of FSA (equal to a 49% ownership stake in FSA immediately after closing) (the “Initial Interests”) in exchange for the Company’s (i) payment of $500,000 in cash and (ii) issuance of 161,291 shares of newly designated Series O Nonvoting Convertible Preferred Stock of the Company (“Series O Preferred”) to FSA. In connection with, and as a condition to, the Initial Closing, the Company entered into employment agreements with Mr. McMahon and Courtney May, each of whom became employees of the Company as of the Initial Closing Date.
In addition, subject to satisfaction of the conditions discussed below, the FSA Purchase Agreement provided the Company with an option (the “Option”), in its sole discretion, to purchase the remaining 51% of the membership units from the FSA Members within 60 days of the Initial Closing Date (the “Final Closing Date”), in exchange for (i) the payment by the Company to the FSA Members of an aggregate of $500,000 in cash and (ii) the issuance of an aggregate of 161,291 shares of Series O Preferred to the FSA Members (the “Final Closing”). The Company’s Option was subject to, and contingent upon, satisfaction of the following conditions: (i) the continued employment of Mr. McMahon and Ms. May by the Company, subject to limited exceptions, (ii) the completion of a $2,000,000 capital raise by the Company, and (iii) the continued operation of FSA by FSA’s existing management until the Final Closing Date.
On April 9, 2025 (the “Final Closing Date”), upon FSA’s agreement to waive the capital raise condition to closing, the Company exercised the Option and, in satisfaction of its obligations under the Purchase Agreement in connection with the Final Closing, the Company paid the FSA Members an aggregate of $500,000 in cash and issued the FSA Members an aggregate of 161,291 shares of Series O Preferred. As a result, as of the Final Closing Date, the Company acquired the remaining 51% of the membership units in FSA and FSA became a wholly-owned subsidiary of the Company.
In addition to the above consideration, the FSA Purchase Agreement provided that the Company shall make additional payments to the FSA Members upon achievement of certain milestones, as follows:
| 1. | The payment of $100,000 in cash and the issuance of 32,258 shares of Series O Preferred at such time as FSA shall have Travel Bookings of Travel Products for five groups by FSA, the commissions to FSA for which are scheduled to be collected after the Final Closing; | |
| 2. | The payment of $100,000 in cash and the issuance of 32,258 shares of Series O Preferred at such time as FSA shall have Travel Bookings of cruise related Travel Products, the gross cumulative cost of which to the customers is greater than or equal to $25,000 and the commissions for which are scheduled to collected after the Final Closing; | |
| 3. | The payment of $100,000 in cash and issuance of 32,258 shares of Series O Preferred at such time as FSA shall deliver all necessary passcodes to allow NextTrip full remote access to the FSA booking engine for use by NextTrip; and | |
| 4. | The payment of $100,000 in cash and issuance 32,258 shares of Series O Preferred at such time as FSA shall have Travel Bookings for Travel Products, the cumulative gross cost of which to the customers is greater than or equal to $1 million and the commissions for which are scheduled to be collected after the Final Closing. |
On April 28, 2025, the parties determined that each of the foregoing milestones had been achieved, and in satisfaction of its obligations under the FSA Purchase Agreement, the Company paid the FSA Members an aggregate of $400,000 in cash and issued the FSA Members an aggregate of 120,967 shares of Series O Preferred.
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Blue Fysh Share Exchange
On February 24, 2025, the Company and Blue Fysh entered into a share exchange agreement (the “BF Share Exchange Agreement”) whereby Blue Fysh agreed to issue 82 restricted shares of its common stock to the Company, representing a 10% interest in Blue Fysh, in exchange for 483,000 restricted shares of Series N Nonvoting Convertible Preferred Stock (the “Series N Preferred”) of the Company at an issuance price of $5.00 per share (the “BF Share Exchange”). The BF Share Exchange closed on February 28, 2025. The parties entered into the BF Share Exchange Agreement, creating minority ownership positions between the entities, as part of their mutual efforts to work together to expand each company’s business opportunities.
JOURNY.tv Asset Purchase
On April 1, 2025, the Company entered into an asset purchase agreement (the “JOURNY.tv Purchase Agreement”) with Ovation LLC (“Ovation”), pursuant to which the Company purchased assets, including without limitation trademarks, domains, apps and certain agreements, and assumed certain liabilities related to Ovation’s JOURNY.tv business (the “JOURNY.tv Acquisition”). The JOURNY.tv Acquisition closed on April 1, 2025.
Pursuant to the JOURNY.tv Purchase Agreement, as consideration for the JOURNY.tv Acquisition, the Company paid Ovation $300,000 in cash at closing and issued Ovation 20,000 restricted shares of Company common stock.
In connection with the JOURNY.tv Acquisition, on April 1, 2025, the Company and Ovation also entered into a License Agreement (the “License Agreement”), pursuant to which Ovation granted the Company the non-exclusive right, throughout the territories and for the term set forth therein, to exhibit, promote, market, advertise, publicize and/or otherwise exploit the programs listed in the License Agreement in the media of (i) FAST via the JOURNY.tv Channel and (ii) Video On Demand via the JOURNY.tv Channel. Pursuant to the License Agreement, Ovation shall not license any unaffiliated third party the right to exhibit certain of the programs subject to the License Agreement and shall not use certain of the programs subject to the License Agreement on its owned or operating streaming platforms (subject to certain exceptions). As consideration for the rights granted under the License Agreement, the Company agreed to pay Ovation an aggregate non-refundable license fee of $336,801, payable in various tranches through October 31, 2027. Either party may terminate the License Agreement in the event of a material default by the other party that is not cured within fifteen days after the defaulting party receives notice of such default.
Strategic Partnership with Intimate Hotels of Barbados (“IHB”)
On April 3, 2025, we entered into a strategic partnership with IHB, a collection of over 35 independent hotels and vacation rentals. The Company will serve as the official booking engine for IHB, providing a fully integrated travel portal and customized packaging tools directly on the IHB website.
NextTrip Cruise Launches, Offering Seamless Cruise Booking Experience
On March 27, 2025, the Company unveiled NextTrip Cruise, a fully integrated cruise booking engine providing access to over 10,000 sailings and 35 cruise partners. Travelers benefit from exclusive pricing, concierge service, and bundled packages that include transfers, pre- and post-cruise stays, and expert travel support.
Changes to the Board of Directors
On July 14, 2025, the Company’s Board of Directors adopted a resolution to increase the size of the board from five to seven members and appointed Bill Kerby, the Company’s Chief Executive Officer, and Andy Kaplan as directors to fill the newly created vacancies, in each case effective July 17, 2025. Mr. Kerby shall serve as a Class II director of the Company, with his initial term expiring at the Company’s 2026 Annual Meeting of Stockholders, and Mr. Kaplan shall serve as a Class III director, with his initial term expiring at the Company’s 2027 Annual Meeting of Stockholders. Each of Messrs. Kerby and Kaplan will serve as a director for the balance of their respective initial terms, and until his successor is elected and qualified, subject to his earlier death, resignation or removal. Additionally, effective July 17, 2025, the Board appointed Mr. Kaplan to serve as a member of the Nominations & Governance Committee of the Board.
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Additionally, in accordance with the Board Appointment Rights provided for in the Exchange Agreement, on July 14, 2025, the Company’s Board of Directors appointed the NTH Appointees as directors, in each case effective July 28, 2025, at which time Salvatore Battinelli, Jacob Brunsberg, Dennis Duitch and Kent Summers resigned as directors of the Company. Stephen Kircher shall serve as a Class I director, with his initial term expiring at the Company’s 2028 Annual Meeting of Stockholders; Jimmy Byrd shall serve as a Class II director, with his initial term expiring at the Company’s 2026 Annual Meeting of Stockholders; and Ms. Diges and Mr. Jiang shall each serve as a Class III director, with their initial terms expiring at the Company’s 2027 Annual Meeting of Stockholders. Each of NTH Appointees will serve as a director for the balance of their respective initial terms, and until his or her successor is elected and qualified, subject to his or her earlier death, resignation or removal. Additionally, effective July 28, 2025, the Board appointed the NTH Appointees to serve on the following committees of the Board:
| ● | Audit Committee: Carmen Diges (Chair), Stephen Kircher and Jimmy Byrd | |
| ● | Compensation Committee: Jimmy Byrd (Chair), Stephen Kircher and Carmen Diges | |
| ● | Nominations & Governance Committee: David Jiang (Chair) and Carmen Diges |
Results of Operations
Three Months Ended November 30, 2025 Compared to the Three Months Ended November 30, 2024
| Three Months Ended November 30, | ||||||||||||
| Revenue by segment | 2025 | 2024 | % Change | |||||||||
| Media | $ | 21,098 | $ | - | - | |||||||
| Travel | 1,179,032 | 74,635 | 1,480 | % | ||||||||
| Total Revenue | $ | 1,200,130 | $ | 74,635 | 1,508 | % | ||||||
The increase in revenue for the three months ended November 30,2025 as compared to the same period in 2024 was primarily due to group travel-related revenues, a consortia payment, and commission income generated from Five Star Alliance (“FSA”) bookings. Additionally, our Media segment generated $21,098 from direct advertising sales.
Our cost of revenue for the three months ended November 30, 2025 was $982,652, as compared to $76,751 for the same period in 2024, an increase of $905,901, or 1,180. The increase was primarily attributable to the increase in sales from the third quarter of 2025 as compared to the third quarter of 2024.
Our gross margin for the three months ended November 30, 2025 was 18%, as compared to (-3%) for the same period in 2024. The improvement in gross margin is primarily attributable to FSA travel bookings and group travel bookings.
Our total operating expenses for the three months ended November 30, 2025 were $3,302,260, as compared to $1,771,411 for the same period in 2024, an increase of $1,530,849, or 86%. The increase was primarily attributable to an increase in professional services, an increase in technology services, and an increase in depreciation and amortization expenses, as further discussed below. Non-cash expenses, primarily consisting of stock-based compensation, stock options granted to former directors, common and preferred shares issued to third parties for services, and depreciation and amortization totaled $1,324,807, or 40% of our operating expenses for the three months ended November 30, 2025, and $189,716, or 11% of our operating expenses for the same period in 2024.
Salary and benefits costs were $669,131 for the three months ended November 30, 2025, as compared to $690,524 for the same period in 2024, a decrease of $21,393, or -3%. The decrease was comprised of: (a) a decrease in stock appreciation rights expense of $24,593 due to revaluation; and (b) a decrease in salaries of $11,077 due to the replacement of two executive positions with international contractors whose costs are now reflected in professional services. These decreases were partially offset by an increase in payroll taxes and benefits expense of $8,407, an increase in severance of $4,375 and an increase in commission expense of $1,497.
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Stock-based compensation was $0 for the three months ended November 30, 2025, as compared to $6,227 for the same period in 2024, a decrease of $6,227 as all outstanding options are fully vested and no new options were granted during the period.
We incurred general and administrative costs of $62,094 during the three months ended November 30, 2025, as compared to $31,533 in the same period in 2024, an increase of $30,561, or 97%. The increase was primarily the result of: (a) $17,013 for various compliance fees and minimum payments associated with California state tax filings; and (b) travel expenses incurred for multiple conferences of $13,039, (c) an increase in office related expenses of $509.
We incurred marketing costs of $60,080 during the three months ended November 30, 2025, as compared to $30,529 during the same period in 2024. The increase of $29,551, or 97%, was due to an increase in external marketing services of $19,039, an increase in media consulting expenses of $14,739 due to the engagement of a social media influencer agency for JOURNY.tv; partially offset by a decrease in email marketing expenses of $4,227.
Professional service fees incurred in the three months ended November 30, 2025 were $1,787,116 as compared to $517,760 incurred during the same period in 2024, an increase of $1,269,356, or 245%. This increase was a result of: (a) an increase in investor relations expenses of $785,833 due to the renewal of existing contracts plus the addition of three new contracts; (b) an increase in contract labor of $294,504 related to JOURNY.tv and operations; (c) an increase in consulting fees of $183,394 for business development initiatives; (d) an increase in accounting expenses of $43,860 due to technical accounting services related to the acquisition of TA Pipeline.; partially offset by a decrease in lending fees of $37,000 related to bridge loan financings and a decrease in legal fees of $1,235. Of the total professional service fees of $1,787,116 for the three months ended November 30, 2025, $1,053,400, or 59%, were incurred as non-cash expenses.
We incurred technology costs of $310,217 during the three months ended November 30, 2025, as compared to $227,845 during the same period in 2024. The increase of $82,372, or 36%, was primarily attributable to: (a) an increase in expenses in connection with JOURNY.tv of $45,735 for content licensing; (b) an increase in dues and subscriptions expense of $39,204 primarily related to integration of a new customer relationship management and business management system, Zoho One, as well as the addition of dues and subscription expenses from the acquired businesses; and (c) an increase in information technology services of $6,802 for outsourcing service work.; partially offset by a decrease in cloud database expenses of $7,952 and a decrease in software license expenses of $1,417.
Organizational costs for the three months ended November 30, 2025, were $54,901, as compared to $40,030 for the same period in 2024, an increase of $14,871, or 37%. The increase is primarily attributable to compensation for one additional board member and a timing difference in the annual meeting.
Depreciation and amortization expense for the three months ended November 30, 2025 was $272,628, as compared to $148,803 for the same period in 2024, an increase of $123,825, or 83%. The increase was primarily due to commencing amortization of JOURNY.tv, and the FSA and TA Pipeline tradename, software, and agreements.
Other operating expenses were $86,093 for the three months ended November 30, 2025, as compared to $78,160 for the same period in 2024. The $7,933 increase was primarily due to an increase in merchant processing fees of $27,771 primarily related to TA Pipeline; partially offset by a decrease in D&O insurance premiums of $17,931, and a decrease in other miscellaneous fees of $1,907.
During the three months ended November 30, 2025, we realized net other expense of $190,784, as compared to net other expense of $236,302 in the same period in 2024. The decrease in net other expense of $45,518 was primarily due to a settlement agreement between NextTrip Group, LLC and the Company related to the NextPlay Technologies, Inc. resulting in other income of $149,517, and the November revaluation of the derivative liability, which decreased the liability by $40,000, partially offset by (a) interest expense of $88,459 in connection the amortization of the debt discount associated with bridge loans; (b) interest expense associated with notes payable and other expenses of $30,040; and (c) loss on extinguishment of debt of $25,500.
Preferred dividends for the three months ended November 30, 2025 were $10,689, as compared to $10,688 for the same period in 2024.
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| Three Months Ended November 30, | ||||||||||||
| Operating loss by segment | 2025 | 2024 | % Change | |||||||||
| Media | $ | (466,889 | ) | $ | - | - | ||||||
| Travel | (236,859 | ) | (416,107 | ) | (43 | )% | ||||||
| Total segment operating loss | (703,748 | ) | (416,107 | ) | 69 | % | ||||||
| Corporate | (2,381,034 | ) | (1,357,420 | ) | - | |||||||
| Total Operating loss | $ | (3,084,782 | ) | $ | (1,773,527 | ) | - | |||||
In the three months ended November 30, 2025, our operating loss totaled $3,084,782, as compared to an operating loss of $1,773,527 for the same period in 2024, an increase of $1,311,255, or 74%. The increase is due to the Media segment operating loss of $466,889, partially offset by a decrease in the Travel segment operating loss of $179,248. Additionally, the Corporate operating loss increased by $1,023,614.
In the three months ended November 30, 2025, the net loss from continuing operations totaled $3,275,566, as compared to a net loss from continuing operations of $2,009,829 for the same period in 2024 an increase of $1,265,737. The operating loss component increased by $1,311,255 in 2025, partially offset by a decrease in the other expense component of $45,518.
Our net loss applicable to common stockholders for the three months ended November 30, 2025, was $3,286,255, as compared to $2,019,951 for the same period in 2024, an increase of $1,266,304, or 63%. The increase was primarily attributable to an increase in operating loss from continued operations of $1,311,255, a decrease in gain on discontinued operations of $566; partially offset by a decrease in other expense of $45,518.
Nine Months Ended November 30, 2025 Compared to the Nine Months Ended November 30, 2024
| Nine Months Ended November 30, | ||||||||||||
| Revenue by segment | 2025 | 2024 | % Change | |||||||||
| Media | $ | 26,751 | $ | - | - | |||||||
| Travel | 2,069,854 | 417,926 | 395 | % | ||||||||
| Total Revenue | $ | 2,096,605 | $ | 417,926 | 402 | % | ||||||
The increase in revenue for the nine months ended November 30, 2025 as compared to the same period in 2024 was primarily due to group travel-related revenues, a consortia payment, and commission income generated in connection with the Five Star Alliance luxury travel bookings. In addition, our Media segment generated $26,751, primarily from direct advertising sales.
Our cost of revenue for the nine months ended November 30, 2025 was $1,674,646, as compared to $405,788 for the same period in 2024, an increase of $1,268,858, or 313%. The increase was primarily attributable to the increase in sales from the third quarter of 2025 as compared to the third quarter of 2024.
Our gross margin for the nine months ended November 30, 2025 was 20%, as compared to 3% for the same period in 2024. The improvement in gross margin is primarily attributable to revenue from FSA travel bookings and group travel bookings which have higher margins than NextTrip travel bookings.
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Our total operating expenses for the nine months ended November 30, 2025 were $11,349,353, as compared to $5,207,359 for the same period in 2024, an increase of $6,141,994 or 118%. The increase was primarily attributable to stock options granted to former directors and an increase in professional services expenses, as further discussed below. Non-cash expenses, primarily consisting of stock-based compensation, stock options granted to former directors, common and preferred shares issued to third parties for services, and depreciation and amortization totaled $5,576,007, or 49% of our operating expenses for the nine months ended November 30, 2025, and $734,288, or 14% of our operating expenses for the same period in 2024.
Salary and benefits costs were $2,061,580 for the nine months ended November 30, 2025, as compared to $1,946,035 for the same period in 2024, an increase of $115,545, or 6%. The increase was comprised of: (a) an increase in salaries of $58,560 due to the addition of two Five Star Alliance employees pursuant to the acquisition; (b) an increase in taxes and benefits of $54,562; and (c) an increase in bonus and commission expense of $9,827; partially offset by a decrease in SAR expense of $7,404.
Stock-based compensation was $138,325 for the nine months ended November 30, 2025, as compared to $36,463 for the same period in 2024. This increase of $101,862 was due to a stock option grant to an employee that was fully vested on the date of the grant.
We incurred general and administrative costs of $124,418 during the nine months ended November 30, 2025, as compared to $80,764 in the same period in 2024, an increase of $43,654, or 54%. The increase was primarily the result of (a) $39,129 in travel expenses incurred for conferences; (b) an increase of $13,354 for various compliance fees and minimum payments for California state tax filings; (c) an increase in office expenses of $4,695; (d) an increase in telephone expense of $2,701; and (e) an increase in penalties associated with California State tax of $2,073; partially offset by a decrease in payroll services fees of $10,084 as a result of changing payroll service providers, and lower rent expenses of $8,214.
We incurred marketing costs of $324,560 during the nine months ended November 30, 2025, as compared to $238,065 during the same period in 2024. The increase of $86,495, or 36%, was for (a) an increase in a consulting contract for marketing services of $71,870; (b) increased Travel Magazine expenses of $53,776 aimed at driving traffic and generating business across all of our brands; (c) an increase in media consulting expenses of $21,946 due to the engagement of a social media influencer agency; (d) an increase in contract labor $7,612 due to the completion of project based initiatives; and (e) an increase in conference entrance fees of $2,005. Partially offsetting the increase was a decrease of $70,714 in fees previously incurred from a former media advertising firm.
Professional service fees incurred in the nine months ended November 30, 2025 were $4,385,664, as compared to $1,413,660 incurred during the same period in 2024, an increase of $2,972,004, or 210%. This increase was a result of: (a) an increase in investor relations expenses of $1,637,258 due to renewal of existing contracts and the addition of six new investor relations firms; (b) an increase in consulting fees of $550,181 due to contracts for services related to business development; (c) an increase in contract labor of $379,291 related to JOURNY.tv and other operations; (d) an increase in accounting expenses of $192,197 due to costs associated with technical accounting services related to the FSA, JOURNY.tv and TA Pipeline acquisitions, as well as a required two-year audit and first quarter financial statement review for FSA; (e) an increase in legal fees of $164,577 due to services related to various regulatory filings and acquisitions; and (f) an increase in lending fees of $48,500 related to bridge loan financings. Of the total professional service fees of $4,385,664 for the nine months ended November 30, 2025, $2,293,336, or 52%, were incurred as non-cash expenses.
We incurred technology costs of $879,053 during the nine months ended November 30, 2025, as compared to $553,536 during the same period in 2024. The increase of $325,517, or 59%, was primarily attributable to: (a) an increase in expenses in connection with JOURNY.tv of $274,140 for content licensing; (b) an increase in dues and subscriptions of $41,455 due to the implementation of our new CRM and business management system, Zoho One; (c) an increase in information technology and computer expenses of $18,979, primarily due to onboarding additional employees and use of outsourced IT services; and (d) an increase in software expenses of $506 for hotel connections into the NextTrip database. Partially offsetting these increases is a net decrease of $9,563 in cloud database expenses primarily related to updating legacy code to optimize compatibility with our hosting infrastructure.
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Organizational costs for the nine months ended November 30, 2025, were $2,524,676, as compared to $149,219 for the same period in 2024, an increase of $2,375,457. The increase is primarily attributable to fully vested stock options granted to former directors and compensation for one additional board member. Of the total organization costs of $2,524,676 for the nine months ended November 30, 2025, $2,368,709, or 94%, were incurred as non-cash expenses and primarily relate to stock options granted to former directors of the Company.
Depreciation and amortization expense for the nine months ended November 30, 2025 was $695,902, as compared to $531,803 for the same period in 2024, an increase of $164,099, or 31%. The increase was primarily due to commencing amortization upon the product launch of our FAST network, JOURNY.tv, and the FSA and TA Pipeline tradename, software, and agreements.
Other operating expenses were $215,175 for the nine months ended November 30, 2025, as compared to $257,814 for the same period in 2024. The $42,639 decrease was primarily due to the reduced cost of D&O and other insurance costs of $55,626 and a decrease in regulatory fees of $8,395; partially offset by a net increase in merchant processing and bank fees of $21,382 due to the addition of TA Pipeline.
During the nine months ended November 30, 2025, we realized net other income of $307,748, as compared to net other expense of $335,754 in the same period in 2024. The increase in net other income of $643,502 was primarily due to a settlement agreement between NextTrip Group, LLC and the Company related to the NextPlay Technologies, Inc. promissory note receivable of $1,282,761, and the November 30, 2025 revaluation of the derivative liability which resulted in a decrease in the liability of $40,000, partially offset by; (a) a loss of $95,600 related to the extinguishment of debt; and (b) interest expense of $491,304 primarily in connection the amortization of the debt discount associated with bridge loans and (c) an increase in interest expense associated with notes payable and other expenses of $92,355.
Preferred dividends for the nine months ended November 30, 2025 were $258,415, as compared to $32,063, for the same period in 2024. The increase was due to dividends paid to the holders of shares of Series L and Series M Preferred stock issued in connection with debt conversions in December 2024 and February of 2025.
| Nine Months Ended November 30, | ||||||||||||
| Operating loss by segment | 2025 | 2024 | % Change | |||||||||
| Media | $ | (1,110,007 | ) | $ | - | - | ||||||
| Travel | (928,614 | ) | (1,354,841 | ) | (31 | )% | ||||||
| Total segment operating loss | (2,038,621 | ) | (1,354,841 | ) | 50 | % | ||||||
| Corporate | (8,888,773 | ) | (3,840,380 | ) | - | |||||||
| Total Operating loss | $ | (10,927,394 | ) | $ | (5,195,221 | ) | - | |||||
In the nine months ended November 30, 2025, our operating loss totaled $10,927,394, as compared to an operating loss of $5,195,221 for the same period in 2024 an increase of $5,732,173, or 110%. The increase is due to the Media segment operating loss of $1,110,007, partially offset by a decrease in the Travel segment operating loss of $426,227. Additionally, the Corporate operating loss increased by $5,048,393.
The net loss on the share of net earnings from the equity method investment was $11,307 due to losses incurred in FSA from March 1, 2025 through April 9, 2025 when the full acquisition was finalized.
Our net loss applicable to common stockholders for the nine months ended November 30, 2025, was $10,889,368, as compared to $5,554,694 for the same period in 2024, an increase of $5,334,674, or 96%. The increase was primarily attributable to an increase in operating loss from continued operations of $5,732,173 and an increase in preferred dividends of $226.352, a loss on the 49% share of net earnings for the equity method investee of $11,307, and a decrease in income from discontinued operation of $8344, partially offset by an increase in other income of $643,502.
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Liquidity and Capital Resources
Due to uncertainties regarding our ability to meet our current and future operating and capital expenses, there is substantial doubt about our ability to continue as a going concern for 12 months from the date of the filing of this Quarterly Report,
As of November 30, 2025, we had $2,427,299 in cash and a working capital deficit of $750,124 as compared to $1,062,367 in cash and a working capital deficit of $105,577 as of February 28, 2025. Additionally, at November 30, 2025, the amount due under our related party line of credit totaled $3,000,000.
Given the lack of significant revenue since inception, NextTrip has financed its operations primarily through the issuance of short-term promissory notes, advances from related parties, and private placements of its securities.
During the third quarter, we entered into a series of securities purchase agreements with private investors, whereby we raised $2,075,300 in proceeds, as well as $387,000 in proceeds from the sale of short-term promissory notes.
On May 6, 2025, we entered into a Line of Credit Agreement (the “MIP Line of Credit”) with Monaco Investment Partners II, LP (“MIP”) providing the Company with a $3,000,000 revolving line of credit. The MIP Line of Credit allows the Company to request advances thereunder from time to time until May 31, 2027, the maturity date. Advances made under the MIP Line of Credit bear simple interest at a rate of 12% per annum, calculated from the date of each respective advance. Accrued interest shall be payable on a monthly basis, no later than the 10th day of the subsequent month. The full outstanding principal balance, together with any accrued and unpaid interest, shall be due and payable in full by the Company on the maturity date. The Company may, at its option, prepay any borrowings under the MIP Line of Credit, in whole or in part, at any time prior to the maturity date, without penalty. Mr. Monaco controls MIP.
We received an initial advance of $1,045,000 under the MIP Line of Credit, which was used to repay (i) a $400,000 cash advance previously made by the Trust to the Company (ii) and all outstanding indebtedness under the terms of the Trust Notes, totaling $645,000. Subsequent advances through Additional advances through November 30, 2025 totaled $1,955,000, bringing the total amount advanced under the line to $3,000,000 as of November 30, 2025, which is the maximum amount available under the MIP Line of Credit.
At November 30, 2025, there were other outstanding short-term notes payable in the aggregate amount of $1,003,353, which had maturity dates between December 15, 2025 and August 30, 2026.
Subsequent to November 30, 2025, on December 19, 2025, the Company entered into securities purchase agreements with two private investors pursuant to which the Company sold and issued 100,000 restricted shares of newly designates Series A Convertible Preferred Stock of the Company at a purchase price of $3.00 per share, together with a warrant to purchase up to 50,000 shares of Common Stock at an exercise price of $3.00 per share, resulting in gross proceeds to the Company of $300,000.
On December 22, 2025, the Company entered into a Securities Purchase Agreement with an investor pursuant to which the Company agreed to issue and sell, in a private placement 1,000,000 shares of the Company’s Common Stock, and common stock warrants (the “Warrants”) to purchase 1,000,000 shares of Common Stock (the “Offering”). The Offering resulted in gross proceeds of $3,000,000 before deducting the placement agent’s fees and related offering expenses.
We will need to raise additional funds through equity or debt financings or other means to support our on-going operations, increase market penetration of our products, expand the marketing and development of our travel and technology driven products, provide capital expenditures for additional equipment and development costs, payment obligations, and systems for managing the business including covering other operating costs and maintaining compliance with Nasdaq listing requirements until planned revenue streams are fully implemented and begin to offset the our operating costs. The Company estimates that it will require a minimum of $5.5 million to continue operations for the next twelve months.
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There is no assurance as to the amount and availability of any required future financing or the terms thereof. Such financing, if in the form of equity, may be highly dilutive to our existing stockholders and may otherwise include onerous terms. If in the form of debt, such financing may include covenants and repayment obligations which may be difficult to meet and that could adversely affect our business and operations. To the extent that funds are not available to us, we may be required to delay, limit, or terminate our business and operations and lose our Nasdaq listing.
Net Cash Used in Operating Activities
Net cash used in operating activities from continuing operations totaled $2,450,860 during the nine months ended November 30, 2025 as compared to $3,143,697 during the same period in 2024, a decrease of $692,837, or 22%.
During the nine months ended November 30, 2025, the net cash used in operating activities was the result of a net loss of $10,630,953 before payment of preferred dividends, partially offset by changes in working capital of $1,896,753, and non-cash expenses of $6,283,340 related to stock options issued to former directors totaling $2,368,709, employee stock-based compensation of $138,325, depreciation and amortization of $695,902, amortization of prepaid expenses of $2,376,669, amortization of debt discount of $648,585, a write-off of technology costs of $19,550 related to an abandoned software implementation, and a loss on the extinguishment of debt of $95,600, partially offset by a gain on the derivative liability of $50,000 and an increase in security deposits of $10,000. Changes in working capital were driven by an increase in deferred revenue of $1,537,998 related to the TA Pipeline acquisition, an increase in accounts payable and accrued expenses of $329,052, a decrease in prepaid expenses of $281,216, and the assumption of the SBA EIDL loan from FSA of $98,358 partially offset by an increase in accounts receivable of $349,871.
During the nine months ended November 30, 2024, the net cash used in operating activities was the result of a net loss of $5,530,975 before preferred dividends, partially offset by changes in working capital of $1,661,732, and non-cash expenses of $725,546 related to depreciation and amortization of $531,803 and stock-based compensation of $36,463. Changes in working capital were driven by a decrease in accounts receivable of $18,329, a decrease in prepaid expenses of $152,452, and an increase in accounts payable and accrued expenses of $1,518,161, partially offset by an increase in security deposits of $3,742 and a decrease in deferred revenue of $49,724.
Net Cash Used in Investing Activities
Net cash used in investing activities during the nine months ended November 30, 2025 was $1,752,168, which compares to $468,751 of cash used in investing activities during the same period of 2024, an increase of $1,283,417, or 274%. The increase resulted from $900,000 related to the acquisition of FSA, $300,000 related to the JOURNY.tv asset purchase and $443,169 related to the acquisition of TA Pipeline LLC, partially offset by a decrease of $359,751 in capitalized software development costs.
Net Cash Provided by Financing Activities
Net cash provided by financing activities for the nine months ended November 30, 2025 was $5,567,960 as compared to $3,295,684 for the same period in 2024. The increase of $2,272,276, or 69%, was due to an increase in advances from related parties of $571,297 and proceeds from equity private placements of $2,271,800, partially offset by a reduction in notes payable of $570,821.
Our ability to continue to fund our working capital needs will be dependent upon the success of our efforts to generate revenues from our operations, and by obtaining additional capital from the sale of securities or by borrowing funds from lenders to fulfill our business plans. If we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our common stock. There is no assurance that we will be successful in obtaining additional funding. The Company is unable to predict the effect a global recession or geopolitical events, including the on-going conflict in Ukraine, may have on its access to the financing markets. If we fail to obtain sufficient funding when needed, we may be forced to delay, scale back or eliminate all or a portion of our commercialization efforts and operations.
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Other than the related party promissory notes as described in NOTE 11 – Related Party Transactions to the financial statements included elsewhere in this Quarterly Report, we have no lines of credit or other financing arrangements.
Inflation, changing prices and rising interest rates have had no material effect on our continuing operations over our two most recent fiscal years. However, continued unfavorable trends may affect the prices we pay for materials and other goods and services necessary to our business, thus increasing our use of cash.
We have no off-balance sheet arrangements as defined in Item 303(a) of Regulation S-K.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not applicable.
ITEM 4. CONTROLS AND PROCEDURES.
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our periodic and current reports that we file with the SEC is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Evaluation of Disclosure Controls and Procedures
Our Chief Executive Officer and our Chief Financial Officer, after evaluating our “disclosure controls and procedures” (as defined in Exchange Act Rules 13a 15(e) and 15d 15(e)) as of the end of the period covered by this Quarterly Report (the “Evaluation Date”), have concluded that as of the Evaluation Date, our disclosure controls and procedures are effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and to ensure that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, where appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Controls Over Financial Reporting
There were no changes in our internal control over financial reporting identified in management’s evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during the period covered by this Quarterly Report that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations on Effectiveness of Controls
Our management, including our Chief Executive Officer and our Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well-designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of the effectiveness of controls to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.
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PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
Not applicable.
ITEM 1A. RISK FACTORS.
You should consider the “Risk Factors” included under Item 1A of our Annual Report on Form 10-K for the year ended February 28, 2025 filed with the SEC on May 29, 2025, as well as the following updated Risk Factor:
As of November 30, 2025, we had $2,427,299 in cash and a working capital deficit of $750,124. Our existing cash on hand and anticipated revenues are not sufficient to fund our anticipated operating costs. We will need to raise additional financing to fund our operations, maintain compliance with the Nasdaq continued listing requirements and implement our business plan. There is no assurance as to the amount and availability of any required future financing or the terms thereof. Such financing, if in the form of equity, may be highly dilutive to our existing stockholders and may otherwise include onerous terms. If in the form of debt, such financing may include covenants and repayment obligations which may be difficult to meet and that could adversely affect our business operations. We have no current understanding or arrangement to obtain any additional financing. To the extent that funds are not available to us, we may be required to delay, limit, or terminate our business operations and may lose our Nasdaq listing.
In light of the foregoing, there is substantial doubt about our ability to continue as a going concern for 12 months from the date of the filing of this Quarterly Report,
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
On September 10, 2025, the Company issued 10,000 restricted shares of common stock at a price of $4.03 per share pursuant to a contract with Save Your Day Films to provide media production, distribution, and sales services.
On September 22, 2025, the Company issued 14,755 unrestricted shares of common stock and 20,238 restricted shares of common stock to MZ Group, both at a price of $3.78 per share, as payment for investor relations services provided.
On September 22, 2025, and October 6, 2025, the Company issued 15,000 and 29,224 unrestricted shares of common stock, respectively, to Iroquois Capital Management pursuant to the cashless exercise of warrants.
On October 7, 2025, the Company issued 100,000 restricted shares of common stock to NexGenAI at a price of $3.44 per share pursuant to a contract to provide cryptocurrency strategy development consulting services, and 100,000 restricted shares of common stock at a price of $3.44 per share pursuant to a contract to provide AI driven social media marketing and engagement consulting services.
On October 8, 2025, the Company sold 62,500 restricted shares of common stock to Caesar Capital at a price of $3.20 per share pursuant to a private placement agreement.
On October 20, 2025, the Company issued 30,000 restricted shares of common stock to Harold Erhard at a price of $3.35 per share, pursuant to a contract to provide investor relations services.
On October 28, 2025, the Company issued 30,000 restricted shares of common stock to New Orleans Private Wealth Management at a price of $4.73 per share, pursuant to a contract to provide investor relations services.
On October 28, 2025, the Company sold 70,000 restricted shares of common stock to Denis Suggs at a price of $3.00 per share, pursuant to a private placement agreement.
On November 4, 2025, the Company sold 33,400 restricted shares of common stock to KC Global Media Asia, LLC at a price of $3.00 per share, pursuant to a private placement agreement.
On November 6, 2025, the Company sold 10,000 restricted shares of common stock to Johan Mosaheb, LLC at a price of $3.00 per share, pursuant to a private placement agreement.
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On November 12, 2025, the Company sold 25,000 restricted shares of common stock to Rest Harbour, Inc. at a price of $3.00 per share, pursuant to a private placement agreement.
On November 12, 2025, the Company sold 25,000 restricted shares of common stock to Thomas and Karen Kofman at a price of $3.00 per share, pursuant to a private placement agreement.
On November 14, 2025, the Company sold 25,000 restricted shares of common stock to Phillip and Michael Investments at a price of $3.00 per share, pursuant to a private placement agreement.
On November 21, 2025, the Company sold 333,334 restricted shares of common stock to Charcoal Investments, Ltd. at a price of $3.00 per share, pursuant to a private placement agreement.
On November 28, 2025, the Company sold 16,700 restricted shares of common stock to Cleveland Parker at a price of $3.00 per share, pursuant to a private placement agreement.
The aforementioned securities have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and were issued to the respective recipients in transactions exempt from registration under the Securities Act in reliance upon the exemption from registration provided by Section 4(a)(2) under the Securities Act and/or Regulation D promulgated thereunder. Accordingly, the securities constitute “restricted securities” within the meaning of Rule 144 under the Securities Act.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not applicable.
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.
ITEM 5. OTHER INFORMATION.
Rule 10b5-1 Trading Plans
During
the three months ended November 30, 2025, none of our directors or officers entered into,
ITEM 6. EXHIBITS.
Exhibit Number |
Description | |
| 3.1 | Certificate of Designation of Series Q Nonvoting Convertible Preferred Stock (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on September 15, 2025, and incorporated herein by reference) | |
| 4.1 | Form of Warrant (Charcoal Investments, Ltd) (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on November 28, 2025, and incorporated herein by reference). | |
| 10.1 | Form of Securities Q Preferred Stock Purchase Agreement dated as of September 10, 2025 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 15, 2025, and incorporated herein by reference). | |
| 10.2 | Form of Debt Conversion Agreement (filed as Exhibit 10.1 to the Company’s Current Report filed on September 18, 2025, and incorporated herein by reference). | |
| 10.3 | Securities Purchase Agreement between the Company and Charcoal Investments Ltd. dated as of November 21, 2025(filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on November 28, 2025, and incorporated herein by reference). | |
| 31.1* | Rule 13a-14(a) Certification of Principal Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 31.2* | Rule 13a-14(a) Certification of Principal Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 32.1** | Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 101.INS*** | Inline XBRL Instance Document. | |
| 101.SCH*** | Inline XBRL Schema Document with Embedded Linkbase Documents. | |
| 104 | Cover Page Interactive Data File (the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| * | Filed herewith. |
| ** | Furnished herewith and not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. |
| *** | The XBRL related information in Exhibit 101 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| NEXTTRIP, INC. | ||
| January 14, 2026 | By: | /s/ William Kerby |
| William Kerby | ||
| Chief Executive Officer (Principal Executive Officer) | ||
| January 14, 2026 | By: | /s/ Frank Orzechowski |
| Frank Orzechowski | ||
| Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) | ||
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FAQ
How did NextTrip (NTRP) perform financially in the latest quarter and nine-month period?
For the three months ended November 30, 2025, NextTrip reported revenue of $1,200,130 and an operating loss of $3,084,782. For the nine months ended November 30, 2025, revenue was $2,096,605 versus $417,926 a year earlier, while the net loss widened to $10,630,953 from $5,522,631.
What is the cash position and debt profile of NextTrip (NTRP)?
As of November 30, 2025, NextTrip held $2,427,299 in cash and cash equivalents. Total liabilities were $8,149,753, including a $3,000,000 related‑party line of credit, short‑term promissory notes to investors, a $98,358 SBA EIDL loan and contingent consideration related to the TA Pipeline acquisition.
Did NextTrip (NTRP) issue a going concern warning?
Yes. NextTrip disclosed an accumulated deficit of $45,239,191 and a working capital deficit as of November 30, 2025, and stated there is substantial doubt about its ability to continue as a going concern for 12 months from the date of the report without additional funding.
What acquisitions and investments did NextTrip (NTRP) complete during the period?
In 2025, the company acquired FSA Travel, LLC (total consideration $2,781,303), TA Pipeline LLC (total consideration $1,140,168), and JOURNY.tv assets (total consideration $415,200), and invested $2,415,000 in Blue Fysh Holdings Inc. for a 10% stake.
How has NextTrip (NTRP) been funding its operations and acquisitions?
For the nine months ended November 30, 2025, the company generated $5,567,960 of net cash from financing activities, including proceeds from issuance of preferred and common shares, new short‑term notes, and advances under a $3,000,000 related‑party line of credit. These funds helped cover $2,450,860 of operating cash outflows and $1,752,168 of investing outflows.
What are the key non-cash and dilutive securities outstanding for NextTrip (NTRP)?
As of November 30, 2025, the company had warrants for 3,328,651 common shares, stock options for 806,250 shares, and preferred stock convertible into 36,519 common shares, totaling 4,171,420 underlying common shares that were anti‑dilutive in the loss per share calculation.
