Summary and Analysis of Key Points

Overview of the Company’s Financial Performance

• NextTrip, Inc. is an innovative technology company building next-generation solutions to power the travel industry. The company provides travel technology solutions with sales originating in the United States, focusing on leisure travel, business travel, groups travel, media, and tech.

• During the three months ended August 31, 2024, the company recognized revenue of $154,498, a 459% increase from the same period in 2023. This was primarily due to the implementation of the BookIt asset and the integration of Expedia into the company’s booking engine, NXT 2.0.

• The company’s cost of revenue increased by 555% during the same period, also due to the launch of NXT 2.0 in the second quarter of 2024. Total operating expenses increased by 35%, driven by higher salary and benefits, professional service fees, and organizational costs related to the company’s transition to public company status.

• For the six months ended August 31, 2024, the company recognized revenue of $343,291, a 627% increase from the same period in 2023. Cost of revenue increased by 694%, and total operating expenses increased by 62% for the same reasons as the three-month period.

Revenue and Profit Trends

• The company has experienced significant revenue growth in recent periods, with a 459% increase in the three months ended August 31, 2024 and a 627% increase in the six months ended August 31, 2024, compared to the same periods in 2023.

• However, the company has also seen a corresponding increase in cost of revenue and operating expenses, leading to continued net losses. The net loss from continuing operations was $1,533,519 for the three months ended August 31, 2024, and $3,521,145 for the six months ended August 31, 2024.

Strengths and Weaknesses

Strengths:

• Innovative technology solutions, including the NXT 2.0 booking platform and integration with Expedia, driving significant revenue growth
• Diversified product offerings across leisure travel, business travel, media, and tech

Weaknesses:

• Continued net losses despite revenue growth, indicating challenges in managing costs and expenses
• Substantial doubt about the company’s ability to continue as a going concern due to liquidity and capital resource constraints

Outlook for the Future

• The company is focused on further developing its technology platforms, including Compass.tv, Travel Magazine, and the “My Bucket List” feature, to drive future growth and revenue.

• However, the company faces significant liquidity and capital resource challenges, with a working capital deficit of $3,664,705 as of August 31, 2024. The company will need to raise a minimum of $5.5 million in net proceeds to continue operations for the next twelve months.

• The company’s ability to secure additional financing and successfully execute its growth strategy will be critical to its future success and continued operations.