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].
NextTrip, Inc.(NTRP) - 2025 Q4 - Annual Report