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].
NextTrip, Inc.(NTRP) - 2025 Q3 - Quarterly Report