# EDGAR Filing Document

**Accession Number:** 0000788611
**File Stem:** 0001641172-25-017181
**Filing Date:** 2025-6
**Character Count:** 32703
**Document Hash:** f26827496723258b1bf0a192347c93dc
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-017181.hdr.sgml**: 20250630

**ACCESSION NUMBER**: 0001641172-25-017181

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250630

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250630

**DATE AS OF CHANGE**: 20250630

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NextTrip, Inc.
- **CENTRAL INDEX KEY:** 0000788611
- **STANDARD INDUSTRIAL CLASSIFICATION:** TRANSPORTATION SERVICES [4700]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 820404220
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0228

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38015
- **FILM NUMBER:** 251092930

**BUSINESS ADDRESS:**
- **STREET 1:** 3900 PASEO DEL SOL
- **CITY:** SANTE FE
- **STATE:** NM
- **ZIP:** 87507
- **BUSINESS PHONE:** (954) 526-9688

**MAIL ADDRESS:**
- **STREET 1:** 3900 PASEO DEL SOL
- **CITY:** SANTE FE
- **STATE:** NM
- **ZIP:** 87507

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SIGMA ADDITIVE SOLUTIONS, INC.
- **DATE OF NAME CHANGE:** 20220812

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SIGMA LABS, INC.
- **DATE OF NAME CHANGE:** 20101014

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FRAMEWAVES INC
- **DATE OF NAME CHANGE:** 20010130

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): June 30, 2025**

**NextTrip, Inc.**

**(Exact name of Registrant as Specified in Its Charter)**

---

| | | |
|:---|:---|:---|
| **Nevada** | **001-38015** | **27-1865814** |
| **(State or Other Jurisdiction**<br> **of Incorporation)** | **(Commission**<br> **File Number)** | **(IRS Employer**<br> **Identification No.)** |

---

---

| | |
|:---|:---|
| **3900 Paseo del Sol**<br> **Santa Fe, New Mexico** | **87507** |
| **(Address of Principal Executive Offices)** | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code: (505) 438-2576**

**(Former Name or Former Address, if Changed Since Last Report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.001 per share | NTRP | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**INTRODUCTORY NOTE**

On April 14, 2025, NextTrip, Inc. (the "Company") filed a Current Report on Form 8-K (the "April Report") with the Securities and Exchange Commission (the "Commission") disclosing the completion of the previously announced acquisition (the "Acquisition") contemplated by the Membership Interest Purchase Agreement, dated February 6, 2025 (the "Purchase Agreement"), by and among the Company, FSA Travel, LLC ("FSA"), John McMahon, as Majority Member, and the other members of FSA included on the signature page thereto (Mr. McMahon together with such other members, collectively the "FSA Members").

Pursuant to the terms of the Purchase Agreement, on February 10, 2025, the Company purchased 9,608 membership units of FSA (equal to a 49% ownership stake in FSA immediately after closing) from FSA in exchange for consideration consisting of $500,000 in cash and 161,291 shares of Series O Nonvoting Convertible Preferred Stock ("Series O Preferred") of the Company (the "Initial Closing"). As disclosed in the April Report, on April 9, 2025, the Company exercised its option to purchase the remaining 51% of the membership units in FSA from the FSA Members in exchange for consideration consisting of an additional $500,000 in cash and 161,291 shares of Series O Preferred (the "Final Closing"). As a result, immediately after the Final Closing, FSA became a wholly owned subsidiary of the Company.

On June 20, 2025, the Company filed a Registration Statement on Form S-1 (the "Registration Statement") with the Commission to register shares of Company common stock for resale by certain securityholders.

On June 23, 2025, the Company filed a Current Report on Form 8-K/A (the "Amendment") with the Commission to amend and supplement Item 9.01 of the April Report to include the financial statements and pro forma financial information required by Items 9.01(a) and (b) of Form 8-K, respectively, which were not included in the April Report pursuant to Items 9.01(a)(3) and (b)(2) of Form 8-K.

**Item 8.01 Other Events**

This Current Report on Form 8-K (this "Current Report") is being filed with the Commission to provide updated unaudited financial statements of FSA for the three months ended March 31, 2025 and 2024 (the "First Quarter Financial Information"), as required by Form S-1. The First Quarter Financial Information is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference. The First Quarter Financial Information supplements the financial statements and pro forma information contained in Exhibits 99.1 and 99.2 of the Amendment. To the extent that the information in this Current Report differs from or updates information contained in the Amendment, the information in this Current Report shall supersede or supplement the information in the Amendment.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits. The following exhibits are filed herewith.

---

| | |
|:---|:---|
| **Exhibit**<br> **Number** | **Description** |
| 99.1 | [Unaudited financial statements of FSA Travel, LLC as of and for the three months ended March 31, 2025 and 2024, including related notes thereto.](ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL Document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **NEXTTRIP, INC.** | **NEXTTRIP, INC.** |
| Date: June 30, 2025 | By: | */s/ William Kerby* |
|  | Name: | William Kerby |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**FSA TRAVEL, LLC**

**BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025**<br> **(Unaudited)** | **December 31, 2024** |
| **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;**Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $475344 | $6987 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 13460 | 27311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in NextTrip | 500000 | - |
| &nbsp;&nbsp;&nbsp;**Total Current Assets** | **988804** | **34298** |
| &nbsp;&nbsp;&nbsp;**Non-Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and Equipment, net |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible Assets, net | 577569 | 593611 |
| &nbsp;&nbsp;&nbsp;**Total Non-Current Assets** | **577569** | **593611** |
| **TOTAL ASSETS** | $**1566373** | $**627909** |
| **LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;**Current Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $19387 | $20315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 1505 | 2649 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to Unitholders | 1000000 | - |
| &nbsp;&nbsp;&nbsp;**Total Current Liabilities** | **1020892** | **22964** |
| **Non-Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SBA loan | 199100 | 199100 |
| **Total Non-Current Liabilities** | **199100** | **199100** |
| **TOTAL LIABILITIES** | **1219992** | **222064** |
| Commitments and Contingencies |  |  |
| &nbsp;&nbsp;&nbsp;**MEMBERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 2219000 | 2219000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (1872619) | (1813155) |
| **TOTAL MEMBERS' EQUITY** | **346381** | **405845** |
| **TOTAL LIABILITIES AND MEMBERS' EQUITY** | $**1566373** | $**627909** |

---

See accompanying notes to financial statements

**FSA TRAVEL, LLC**

**STATEMENTS OF OPERATIONS**

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2025** | **2024** |
| **REVENUES** | $**43683** | $**65762** |
| **OPERATING EXPENSES** |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and benefits | 43636 | 96101 |
| &nbsp;&nbsp;&nbsp;General and administrative | 1472 | 1380 |
| &nbsp;&nbsp;&nbsp;Marketing and advertising | 401 |  |
| &nbsp;&nbsp;&nbsp;Technology | 31856 | 40782 |
| &nbsp;&nbsp;&nbsp;Professional services | 5894 | 2268 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 16042 | 16042 |
| &nbsp;&nbsp;&nbsp;Other expense | 990 | 874 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Operating Expenses** | **100291** | **157447** |
| &nbsp;&nbsp;&nbsp;**OPERATING LOSS** | **(56608)** | **(91685)** |
| **OTHER EXPENSE** |  |  |
| &nbsp;&nbsp;&nbsp;Interest Expense | (2856) | (2924) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Other Expense** | **(2856)** | **(2924)** |
| **Net Loss** | $**(59464)** | $**(94609)** |

---

See accompanying notes to financial statements

**FSA TRAVEL, LLC**

**STATEMENTS OF MEMBERS' EQUITY**

**FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Z Units** | **Common Units** | **Additional**<br> **Paid-in**<br> **Capital** | **Accumulated Deficit** | **Total** |
| Balances, December 31, 2023 | 890 | 10000 | $2219000 | $(1611724) | $607276 |
| Net Loss | - | - | - | (94609) | (94609) |
| Balances, March 31, 2024 | 890 | 10000 | $2219000 | $(1706333) | $512667 |
| Balances, December 31, 2024 | 890 | 10000 | $2219000 | $(1813155) | $405845 |
| Net Loss | - | - | - | (59464) | (59464) |
| Balances, March 31, 2025 | 890 | 10000 | $2219000 | $(1872619) | $346381 |

---

See accompanying notes to financial statements

**FSA TRAVEL, LLC**

**STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2025** | **2024** |
| **Cash Flows from Operating Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(59464) | $(94609) |
| **Adjustments to reconcile net loss to net cash used in operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 16042 | 16042 |
| **Changes in Operating Assets and Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 13851 | 17898 |
| &nbsp;&nbsp;&nbsp;Due to unitholders | 1000000 |  |
| &nbsp;&nbsp;&nbsp;Deferred revenue |  | 13360 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (2072) | 12761 |
| **Net Cash Provided (Used) in operating activities** | 968357 | (34548) |
| **Investing Activities** |  |  |
| Investment in NextTrip | (500000) | - |
| **Net Cash Used in Investing Activities** | (500000) | - |
| **Increase (Decrease) in cash** | 468357 | (34548) |
| **Cash at Beginning of Period** | 6987 | 122213 |
| **Cash at the End of Period** | $475344 | $87665 |
| **Supplemental Cash Flow Information** |  |  |
| Cash paid for interest | $2856 | $2924 |
| Cash paid for taxes | $- | $- |

---

See accompanying notes to financial statements

**NOTES TO THE UNAUDITED FINANCIAL STATEMENTS**

**MARCH 31, 2025 AND 2024**

**1.** **Business Description and Going Concern** 

FSA Travel, LLC ("Five Star", "FSA", or the "Company") was organized on March 9, 2018, under the laws of the State of New York. The Limited Liability Company Agreement was entered into on August 18, 2018, and made effective on that date. The Company's head office is located at 265 Read Avenue, Yonkers, NY 10707.

The Company is a premier high-end travel agency known for its curated collection of over 5,000 luxury hotels and resorts worldwide, providing personalized recommendations and high-end travel solutions for travelers. Since 2005, FSA has been a leader in luxury travel by offering the most comprehensive, hand-picked collection of four and five-star luxury hotels and resorts worldwide and provides a full range of travel products including airfare, transportation, luxury river and ocean cruises, group and meeting services, concierge services, and more.

**Sale of FSA Travel, LLC to NextTrip, Inc.**

On February 6, 2025, the Company and John McMahon, as Majority Member, and the other members of FSA (collectively the "FSA Members") entered into a Membership Interest Sale Agreement (the "Sale Agreement") with NextTrip, Inc. ("NextTrip"). Pursuant to the Sale Agreement, on February 10, 2025 (the "Initial Closing Date"), NextTrip purchased 9,608 membership units of FSA (equal to a 49% ownership stake in FSA immediately after closing) (the "Initial Interests") in exchange for NextTrip's (i) payment of $500,000 in cash and (ii) issuance of 161,291 shares of NextTrip Series O Nonvoting Convertible Preferred Stock ("Series O Preferred") to FSA. In connection with, and as a condition to, the Initial Closing, Mr. McMahon and Courtney May each entered into employment agreements with NextTrip and became an employee of NextTrip as of the Initial Closing Date.

In addition, subject to satisfaction of the conditions discussed below, the Sale Agreement provides NextTrip with an option (the "Option"), in its sole discretion, to purchase the remaining 51% of the membership units from the FSA Members within 60 days of the Initial Closing Date (the "Final Closing Date"), in exchange for (i) the payment by NextTrip to the FSA Members of an aggregate of $500,000 in cash and (ii) the issuance of an aggregate of 161,291 shares of Series O Preferred to the Members (the "Final Closing"). The NextTrip Option is subject to, and contingent upon, satisfaction of the following conditions: (i) the continued employment of Mr. McMahon and Ms. May by NextTrip, subject to limited exceptions, (ii) the completion of a $2,000,000 capital raise by NextTrip, and (iii) the continued operation of FSA by FSA's existing management until the Final Closing Date.

In addition to the above consideration, the FSA Sale Agreement provides that NextTrip shall make additional payments to the Members upon achievement of certain milestones, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. The payment of $100,000
 in cash and the issuance of 32,258 shares of Series O Preferred at such time as FSA shall have Travel Bookings of Travel Products
 for five Groups by FSA, the commissions to FSA for which are scheduled to be collected after the Final Closing;

2. The payment of $100,000
 in cash and the issuance of 32,258 shares of Series O Preferred at such time as FSA shall have Travel Bookings of cruise related
 Travel Products, the gross cumulative cost of which to the customers is greater than or equal to $25,000 and the commissions for
 which are scheduled to collected after the Final Closing;

3. The payment of $100,000
 in cash and issuance of 32,258 shares of Series O Preferred at such time as FSA shall deliver all necessary passcodes to allow
 NextTrip full remote access to the FSA booking engine for use by NextTrip; and

4. The payment of $100,000
 in cash and issuance 32,258 shares of Series O Preferred at such time as FSA shall have Travel Bookings for Travel Products, the
 cumulative gross cost of which to the customers is greater than or equal to $1 million and the commissions for which are scheduled
 to be collected after the Final Closing.

**Going Concern**

As of March 31, 2025, and December 31, 2024, the Company had an accumulated deficit of $1,872,619 and $1,813,155 respectively, and a working capital deficit of $32,088 and a working capital surplus of $11,334, respectively, and has incurred losses since incorporation. The Company will either need to sell to a strategic buyer with existing capabilities to benefit from audience, relationships, technology and top-line revenues or will need to raise additional funds through equity or debt financings to support the on-going operations, increase market penetration of our products, expand the marketing and development of our travel and technology driven products, provide capital expenditures for additional equipment and development costs, payment obligations, and systems for managing the business including covering other operating costs until the planned revenue streams are fully implemented and begin to offset operating costs. Failure to sell the Company or obtain additional capital to finance the Company's working capital needs on acceptable terms, or at all, would negatively impact the Company's financial condition and liquidity.

In light of the foregoing, there is substantial doubt about our ability to continue as a going concern for 12 months from the date of the filing of this Report.

**2.** **Summary of Significant Accounting Policies** 

 

**Basis of Presentation and Principles of Consolidation**

The accompanying financial statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") of the United States.

**Functional and presentation currency**

These financial statements are presented in United States dollars ("USD"), which is the Company's functional and reporting currency. All financial information has been rounded to the nearest dollar except where otherwise indicated.

**Limited Liability of Members**

The liability of the Managers to the Company and the Members shall be limited to the extent, now or hereafter set forth in the Articles of the Operating Agreement and as provided under the New York Act.

Except as otherwise provided in the New York Act or by Applicable Law, no Member, Manager or Officer will be obligated personally for any debt, obligation or liability of the Company or of any Company subsidiaries, whether arising in contract, tort or otherwise, solely by reason of being a Member, Manager and/or Officer.

**Use of Estimates**

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These differences could have a material effect on the Company's future results of operations and financial position. Significant items subject to estimates and assumptions include the carrying amounts of intangible assets, depreciation and amortization.

Information about key assumptions and estimation uncertainty that has a significant risk of resulting in a material adjustment to the carrying amounts of the Company's assets and liabilities within the next financial year are referenced in the notes to the financial statements as follows:

● The assessment of the Company to continue as a going concern;

● The measurement and useful life of intangible assets and property and equipment

● Recoverability of long-lived assets

**Cash and Cash Equivalents**

Cash consists of amounts denominated in US dollars. The Company has not experienced any losses on such accounts. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents as of March 31, 2025 or December 31, 2024.

**Accounts Receivable**

Accounts receivables are recorded at the invoiced amount and do not bear interest. The allowance for credit losses is the Company's best estimate of the amount of probable credit losses in its existing accounts receivable.

The Company considers accounts receivable to be fully collectible; accordingly, no allowance for credit losses is required. If amounts become uncollectible, they will be charged to operations when that determination is made.

Accounts receivable balances as of March 31, 2025 and December 31, 2024 and 2023 were $13,460 and $27,311, respectively.

**Intangible assets**

The Company measures separately acquired intangible assets at cost less accumulated amortization and impairment losses. The Company recognizes internally developed intangible assets when it has determined that the completion of such is technically feasible, and the Company has sufficient resources to complete the development. Subsequent expenditures are capitalized when they increase the future economic benefits of the associated asset. All other expenditures are recorded in profit or loss as incurred.

The Company assesses whether the life of intangible asset is finite or indefinite. The Company reviews the amortization method and period of use of its intangible assets at least annually. Changes in the expected useful life or period of consumption of future economic benefits associated with the asset are accounted for prospectively by changing the amortization method or period as a change in accounting estimates in profit or loss. The Company has assessed the useful life of its trademarks as indefinite.

The estimated useful lives for the Company's finite life intangible assets are as follows:

---

| | | |
|:---|:---|:---|
| Category | Method | Estimated useful life |
| Software | Straight line | 15 years |
| Domain name | Straight line | 20 years |
| Customer database | Straight line | 10 years |

---

**Impairment of Intangible Assets**

In accordance with ASC 350-30-65 "<u>Goodwill and Other Intangible Assets</u>", the Company assesses the impairment of identifiable intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers important, which could trigger an impairment review include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Significant underperformance compared to historical or projected future operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Significant changes in the manner or use of the acquired assets or the strategy for the overall business, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Significant negative industry or economic trends.

When the Company determines that the carrying value of an intangible asset may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company measures any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent to the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows. Intangible assets that have finite useful lives are amortized over their useful lives.

**Concentration of Credit Risk**

Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash. All of the Company's cash is held at high credit quality financial institutions. At March 31, 2025, the Company had $225,344 in balances above federally insured limits. At December 31, 2024, the Company did not have any balances over federally insured limits. There is no credit risk in accounts receivable as they are all deemed collectable.

**Fair Value of Financial Instruments**

The carrying amounts of the Company's financial instruments including cash, accounts receivable, accounts payable, accrued expenses, and notes payable are of approximately fair value due to the short-term maturities of these instruments.

**Revenue Recognition**

The Company recognizes revenue in accordance with ASC Topic No. 606. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, *Revenue from Contracts with Customers*. ASU 2014-09 is a comprehensive revenue recognition standard that superseded nearly all existing revenue recognition guidance under prior U.S. GAAP and replaced it with a principles-based approach for determining revenue recognition. The core principle of the standard is the recognition of revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In general, we determine revenue recognition by: (1) identifying the contract, or contracts, with our customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to performance obligations in the contract; and (5) recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services.

The Company provides online travel booking services for luxury hotels, cruises, group travel, and other premium travel-related offerings through its platform. In all transactions, the Company operates as an agent, facilitating the reservation between the customer and the travel service provider. As such, revenue is recognized on a net basis, representing only the commission or service fee earned.

In accordance with ASC 606, the Company evaluates its role in the transaction and has determined it does not control the underlying travel services prior to transfer to the customer. Consequently, the Company concludes that it is acting as an agent rather than a principal.

Revenue is recognized on the date of travel, which reflects the point at which the Company's performance obligation is satisfied and ensures that any cancellations or changes have been accounted for. Booking changes, cancellations, and refund policies are governed by the individual travel providers.

Marketing revenue is derived from email newsletter participation as well as hotel activation fees and priority placement in the hotel city listing section of the website. Revenue is recognized in the month that the activation is live on Five Star Alliance or when email newsletter is distributed.

**3.** **Property and Equipment** 

Property and equipment, consisting of office and computer equipment, was fully depreciated as of March 31, 2025 and December 31, 2024. Depreciation expense for the three months ended March 31, 2025 and 2024 was $0.

**4.** **Intangible Assets** 

On August 20, 2018, the Company entered into an Asset Purchase Agreement (the "APA") with Questex, LLC whereby the Company acquired assets used exclusively in the conduct of its business of luxury hotel and resort reservations for a purchase price of $1,000,000. Management determined that all purchased tangible assets had no value and accordingly the entire purchase price was allocated to intangible assets and is being amortized over 10-20 years.

Intangible assets as of March 31, 2025 and December 31, 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | March 31, 2025 | December 31, 2024 |
| Purchased intangible assets | $1000000 | $1000000 |
| Less: Accumulated amortization | (422431) | (406389) |
| Intangible assets, net of amortization | $577569 | $593611 |

---

Amortization expense for the three months ended March 31, 2025 and 2024 was $16,042 and $16,042, respectively.

In accordance with ASC 350-30, *Intangibles—Goodwill and Other*, the Company reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Based on management's review as of March 31, 2025 and December 31, 2024, no indicators of impairment were identified, and no impairment losses have been recognized to date.

**5.** **Income Taxes** 

The Company is organized as a limited liability company and is treated as a partnership for U.S. federal and most applicable state income tax purposes. As such, the Company is generally not subject to federal income taxes at the entity level. Instead, each member is individually responsible for reporting their allocable share of the Company's income, deductions, losses, and credits on their respective tax returns. Accordingly, no provision for income taxes has been included in the accompanying financial statements.

The income, gains, losses, deductions and expenses of the Company are allocated among the Members pursuant to the terms of the FSA Limited Liability Company Agreement.

**6.** **SBA Loan** 

On May 12, 2020, the Company was granted an Economic Injury Disaster Loan ("EIDL") from the U.S. Small Business Administration ("SBA") in the original principal amount of $50,500. The loan bears interest at a fixed rate of 3.75% per annum, with interest accruing only on funds actually advanced. Under the terms of the loan, installment payments of $247 per month, including principal and interest, began twelve months from the date of the promissory note, with the remaining balance of principal and interest due thirty years from the date of the note. Payments are to be applied first to accrued interest and then to outstanding principal.

On October 4, 2021, the SBA approved an amendment to the EIDL, increasing the total loan amount to $199,100. As a result of the increased principal, the required monthly installment payment was adjusted to $995, including principal and interest, with the maturity date and other terms of the loan remaining unchanged.

As of March 31, 2025, and December 31, 2024 the outstanding balance of the EIDL loan was $199,100, and accrued interest payable was $1,505 and $2,649, respectively.

The EIDL loan is secured by a general security interest in the Company's assets.

**7.** **Members' Equity** 

**Common Units**

Common Units represent a fractional part of a Unitholders' interest in the profits, losses, and distributions of the Company. The Common Units have all of the voting rights. For the three months ended March 31, 2025 and 2024, the Company had 10,000 Common Units outstanding, all of which were held by John McMahon, the Company's Managing Member.

**Class Z Units**

Class Z Units represent a fractional part of a Unitholders' interest in the profits, losses, and distributions of the Company. Class Z Units have no voting, consent, or similar rights. For the three months ended March 31, 2025 and 2024, the Company had 890 Class Z Units issued and outstanding.

**8.** **Subsequent Events** 

The Company's management has evaluated subsequent events after the balance sheet dated as of March 31, 2025, through June 30, 2025.

On April 9, 2025 (the "Final Closing Date"), NextTrip exercised the Option and, in satisfaction of its obligations under the Sale Agreement in connection with the Final Closing, NextTrip paid the FSA Members an aggregate of $500,000 in cash and issued the FSA Members an aggregate of 161,291 shares of Series O Preferred stock. As a result, as of the Final Closing Date, NextTrip acquired the remaining 51% of the membership units in FSA and FSA became a wholly owned subsidiary of NextTrip.

On April 28, 2025 (the "Milestone Determination Date"), the parties determined that each of the milestones had been achieved, and in satisfaction of its obligations under the Sale Agreement, NextTrip paid the FSA Members an aggregate of $400,000 in cash and issued the FSA Members an aggregate of 120,967 shares of Series O Preferred stock.