NextTrip Reports 64% Revenue Decline and $2M Net Loss in Latest Quarter

NextTrip, Inc., formerly known as Sigma Additive Solutions, Inc., reported significant financial challenges in its latest 10-Q filing for the quarter ending November 30, 2024. The company generated revenue of $74,635, a substantial decrease of 64% compared to $205,789 in the same quarter of the previous year. For the nine months ending November 30, 2024, revenue increased by 65% to $417,926, up from $253,014 in the prior year, primarily due to the integration of the BookIt asset and partnerships with Expedia, which expanded the company's product offerings significantly.

The company's operating expenses rose to $1,771,411 for the three months ended November 30, 2024, compared to $1,274,820 in the same period last year, marking a 39% increase. This rise was attributed to the relaunch of the NXT 2.0 booking engine and the costs associated with transitioning to a public company. Notably, salaries and benefits surged by 57% to $690,524, reflecting the conversion of contractors to full-time employees and the hiring of new staff. The net loss from continuing operations for the quarter was $2,009,829, compared to a loss of $1,308,262 in the same quarter of 2023.

In terms of operational metrics, NextTrip's cash position deteriorated significantly, with cash and cash equivalents dropping to $15,385 from $323,805 at the end of February 2024. The company reported a working capital deficit of $4,869,586, up from $262,005 in the previous period. The total liabilities increased dramatically to $6,394,097, primarily due to a rise in accounts payable and accrued expenses, which totaled $1,334,925 and $1,175,851, respectively.

Strategically, NextTrip has been active in expanding its service offerings and technology capabilities. The company launched its Compass.TV travel discovery channel and app, which features travel video content designed to convert viewers into customers. Additionally, the company introduced a Group Booking Platform and FlexPay travel payment options to enhance customer experience and engagement. The acquisition of Five Star Alliance, a luxury travel agency, is also in negotiation, which could further diversify NextTrip's offerings.

Looking ahead, NextTrip faces substantial challenges, including the need for additional funding to support operations and marketing efforts. The company has expressed concerns about its ability to continue as a going concern, given its current cash position and the need to raise at least $5.5 million in net proceeds to sustain operations over the next twelve months. The management's outlook remains cautious, emphasizing the necessity of securing financing to implement its business plan and maintain compliance with Nasdaq listing requirements.