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 for the year ended February 28, 2025, an increase of $1,676,154 or 29% from $5,740,577 in 2024[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]. - Net loss applicable to common shareholders totaled $10,198,684 for the year ended February 28, 2025, compared to $7,339,276 in 2024[255]. Cash Flow and Liquidity - As of February 28, 2025, the company had $1,062,367 in cash and an accumulated deficit of $34,349,823[258]. - Net cash used in operating activities from continuing operations was $5,088,498 for the year ended February 28, 2025, an increase of $32,403 or 0.6% from $5,056,095 in 2024[267]. - The company estimates it will require a minimum of $5.5 million to continue operations for the next twelve months[265]. - 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]. - 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]. Operational Developments - NextTrip's travel booking platform is powered by the proprietary NXT2.0 engine, offering extensive inventory for leisure, group, and business travelers[198]. - 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 aims to integrate its Media and Travel divisions to enhance revenue generation, with advertising revenue expected to become a key driver of higher-margin income[201]. - NextTrip's media properties, including Travel Magazine and Journy.tv, are expected to drive high-intention traffic into the booking funnel, constituting a separate high-margin advertising revenue stream over time[198]. - The company is in the early stages of development, with current revenue streams being small and unpredictable compared to established industry leaders[202]. Receivables and Allowances - 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 allowance for credit losses of $2,567,665 established due to uncertainty in collectability[213]. Expenses and Impairment - 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]. - The company assesses impairment of intangible assets based on significant underperformance or changes in business strategy[229]. Market Conditions - 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].
Sigma Additive Solutions(SASI) - 2025 Q4 - Annual Report