Revenue and Financial Performance - The company generated nominal revenues primarily from leisure travel bookings, including airline tickets, hotel rooms, and cruises [201]. - Revenue for the year ended February 28, 2025, was $501,423, an increase of $42,671 or 9% compared to $458,752 in 2024 [239]. - Cost of revenue increased by $100,589 or 25% to $498,121 for the year ended February 28, 2025, compared to $397,532 in 2024 [240]. - Operating expenses totaled $7,416,731, an increase of $1,676,154 or 29% from $5,740,577 in 2024, driven by higher salaries and benefits, technology expenses, and professional service fees [241]. - Net loss from continuing operations was $10,121,038 for the year ended February 28, 2025, compared to a net loss of $6,656,837 in 2024 [253]. - Cash as of February 28, 2025, was $1,062,367, down from $323,805 in 2024, with an accumulated deficit of $34,349,823 [258]. - Net cash used in operating activities from continuing operations was $5,088,498, an increase of $32,403 or 0.6% compared to $5,056,095 in 2024 [267]. - The company estimates a minimum requirement of $5.5 million to continue operations for the next twelve months [265]. - The company has substantial doubt about its ability to continue as a going concern for 12 months from the date of filing the Annual Report [257]. Cash Flow and Investment Activities - Net cash used in investing activities for the year ended February 28, 2025, was $(1,033,751), a decrease of $2,014,687 compared to net cash provided by investing activities of $980,936 in 2024 [271]. - The primary uses of cash in investing activities for 2025 included $500,000 for purchasing a 49% interest in FSA and capitalized software development costs of $534,751 [271]. - Net cash provided by financing activities for the year ended February 28, 2025, was $6,852,467, an increase from $4,791,804 in 2024 [272]. - The financing activities in 2025 included $1,967,224 from short-term promissory notes and $2,450,000 from preferred shares issuance [272]. - Net cash provided by operating activities from discontinued operations for the year ended February 28, 2025, was $8,344, compared to net cash used of $675,314 in 2024, resulting in a total net cash used in operating activities decreasing by 11.4% to $5,080,154 [269]. - For the year ended February 29, 2024, net cash used in operating activities from continuing operations was driven by a net loss of $6,656,837, partially offset by changes in working capital of $1,400,025 and non-cash expenses of $3,000,767 [270]. Business Strategy and Operations - NextTrip's travel booking platform is powered by the proprietary NXT2.0 engine, offering extensive inventory for leisure, group, and business travelers [198]. - The company aims to integrate its Media and Travel divisions to enhance revenue streams, with advertising expected to become a key driver of higher-margin revenue [201]. - NextTrip's acquisition of Five Star Alliance provides access to over 5,000 luxury hotel properties worldwide, enhancing its luxury travel offerings [199]. - The company is in the early stages of development, with current revenue streams being small and unpredictable compared to established industry leaders [202]. - NextTrip's ambition is to build a next-generation travel solution that allows consumers to better research and explore desired travel destinations [200]. Financial Position and Risks - Trade accounts receivable balances as of February 28, 2025, and February 29, 2024, were $22,567 and $34,082, respectively [212]. - Receivables from NextPlay under the promissory note were $0 and $1,000,000 at February 28, 2025, and February 29, 2024, respectively, with an established allowance for credit losses of $2,567,665 [213]. - The company assesses impairment of intangible assets based on significant underperformance or changes in business strategy [229]. - Inflation, changing prices, and rising interest rates have had no material effect on the company's continuing operations over the last two fiscal years [273]. - The company has no off-balance sheet arrangements as defined in Item 303(a) of Regulation S-K [274]. - There are no applicable quantitative and qualitative disclosures about market risk [275]. Employee Compensation - Salaries and benefits expenses rose by $1,026,176 or 64% to $2,630,663 for the year ended February 28, 2025, compared to $1,604,487 in 2024 [242]. - Stock-based compensation decreased by $48,638 or 42% to $67,874 for the year ended February 28, 2025, from $116,512 in 2024 [243].

Acquisition and Corporate Structure - The company completed a reverse acquisition with NextTrip Holdings, Inc. on December 29, 2023, resulting in a change of control and the issuance of up to 6,000,000 shares of common stock [155][156]. - The company has not recorded any operations for its 50% owned joint venture, Next Innovation LLC, in 2023 or 2024 [154]. - A non-binding Letter of Intent was signed on November 5, 2024, to acquire Five Star Alliance, a luxury travel agency known for its curated collection of five-star hotels [187]. Revenue and Financial Performance - Revenue is primarily generated from travel bookings, including airline tickets and hotel rooms, with plans to expand into travel technology products [170]. - Revenue for the three months ended November 30, 2024, was $74,635, a decrease of $131,154, or 64%, compared to $205,789 in the same period in 2023, primarily due to reduced online marketing efforts [195]. - Revenue for the nine months ended November 30, 2024, was $417,926, a 65% increase from $253,014 in the same period in 2023, driven by the integration of Expedia into the booking engine [210]. - Net loss applicable to common stockholders for the nine months ended November 30, 2024, was $5,554,694, a 56% increase from $3,564,396 in the same period in 2023 [225]. Expenses and Cost Management - Total operating expenses increased to $1,771,411 for the three months ended November 30, 2024, an increase of $496,591, or 39%, compared to $1,274,820 in 2023, attributed to the relaunch of the NXT 2.0 booking engine and integration of Sigma Additive Solutions [198]. - Cost of revenue for the same period was $76,751, down $85,321, or 53%, from $162,072 in 2023, driven by lower sales resulting from reduced marketing efforts [197]. - Total operating expenses for the nine months ended November 30, 2024, were $5,207,359, a 55% increase from $3,397,576 in the same period in 2023 [213]. - Cost of revenue for the nine months ended November 30, 2024, was $405,788, a 99% increase from $203,524 in the same period in 2023 [212]. Marketing and Customer Engagement - The company aims to leverage interactive technology and immersive media to enhance personalized travel solutions for both leisure and business travelers [168]. - The company plans to target customers with low dollar marketing campaigns while pursuing strategic partnerships to enhance competitiveness [171]. - Marketing costs decreased to $30,529, down $111,089, or 78%, from $141,618 in the same period in 2023, primarily due to reduced online marketing expenses during Black Friday [202]. - Marketing costs increased to $238,065 for the nine months ended November 30, 2024, a 3% increase from $232,157 in the same period in 2023 [217]. Technology and Product Development - The company’s proprietary booking engine, NextTrip 2.0, provides access to approximately 3 million accommodation properties worldwide through API connections with Expedia and other suppliers [172]. - The company launched Compass.TV on October 1, 2024, featuring over a thousand hours of travel video content designed to convert viewers into customers through the NextTrip Booking Engine [189]. - The company launched FlexPay on July 11, 2024, allowing customers to pay for accommodations over time through interest-free installments, differentiating itself from other travel booking sites [194]. - The company has reactivated 12-15 contracts from Bookit.com for Phase 1 of its product launch, ensuring competitive rates in premier destinations [179]. Financial Position and Capital Needs - Cash as of November 30, 2024, was $15,385, with a working capital deficit of $(4,869,586), compared to $323,805 in cash and $(262,005) working capital deficit as of February 29, 2024 [226]. - The Company estimates needing to raise a minimum of $5.5 million in net proceeds to continue operations for the next twelve months [237]. - The Company has no lines of credit or other financing arrangements other than related party promissory notes [246]. Other Financial Metrics - An allowance for doubtful accounts of $1,567,665 was established due to NextPlay's default on a promissory note, indicating uncertainty in collectability [166]. - Preferred dividends for the nine months ended November 30, 2024, were $32,063, compared to $0 for the same period in 2023, due to dividends associated with Series E Preferred Stock [223]. - Depreciation and amortization expense for the nine months ended November 30, 2024, was $531,803, a 43% decrease from $940,930 in the same period in 2023 [220]. - Net cash used in operating activities for the nine months ended November 30, 2024, was $3,143,697, an increase of 39% from $2,265,048 in the same period of 2023 [240]. - Net cash provided by financing activities increased by 12% to $3,295,684 for the nine months ended November 30, 2024, compared to $2,952,029 in 2023 [244].