NextTrip, Inc. (formerly Sigma Additive Solutions, Inc.) reported significant financial changes in its latest 10-Q filing for the quarter ending May 31, 2024. The company experienced a substantial increase in revenue, reporting $188.8 thousand, a remarkable 865% rise from $19.6 thousand in the same period of 2023. This growth is attributed to the company's focus on travel technology solutions, particularly through its proprietary booking engine, NextTrip 2.0.
Despite the revenue increase, NextTrip faced a net loss of $1.98 million for the quarter, compared to a loss of $1.1 million in the prior year, marking an 81.6% increase in net loss applicable to common stockholders. The operating loss also widened to $1.95 million from $1.03 million year-over-year. Total operating expenses surged to $1.97 million, up 90.7% from $1.03 million, driven by increased costs in salaries, marketing, and professional services.
The company's cash position deteriorated significantly, with cash and cash equivalents dropping to $36.7 thousand from $323.8 thousand at the end of February 2024. Total current liabilities ballooned to $3.53 million, up from $1.96 million, contributing to a working capital deficit of $2.11 million. The total stockholders' equity also fell sharply to $1.17 million from $3.13 million.
NextTrip's strategic developments included a reverse acquisition completed on December 29, 2023, which resulted in NextTrip becoming a wholly-owned subsidiary of Sigma. This acquisition has led to a change in financial reporting, with consolidated statements reflecting NextTrip's historical financials. The company has also engaged in various financing activities, including unsecured promissory notes totaling $1.5 million, to support its operations.
Management identified a material weakness in its disclosure controls and procedures, prompting the hiring of additional personnel with GAAP expertise and the engagement of external consultants to enhance financial reporting controls. The company has indicated a need to raise approximately $5.5 million to sustain operations over the next twelve months.
Overall, while NextTrip has made strides in revenue generation, it continues to grapple with significant losses and cash flow challenges, necessitating further funding to ensure its operational viability.
About SIGMA ADDITIVE SOLUTIONS, INC.
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