NextTrip, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS. NEXTTRIP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS May 31, 2026 February 28, 2026 (unaudited) ASSETS Cash and cash equivalents $ 803,490 $ 1,696,090 Accounts receivable, net 252,375 119,168 Prepaid expenses and other current assets 1,436,115 1,336,026 Total Current Assets 2,491,980 3,151,284 Non-Current Assets Property and equipment, net 974 1,603 Intangible assets, net 4,159,741 4,258,220 Security deposit 40,167 40,167 Goodwill 3,123,684 3,123,684 Equity investments 2,502,000 2,502,000 Total Non-Current Assets 9,826,566 9,925,674 Total Assets $ 12,318,546 $ 13,076,958 LIABILITIES Current Liabilities Accounts payable $ 959,794 $ 725,541 Accrued expenses 953,574 748,103 Deferred revenue 848,526 1,655,990 Derivative liability 30,000 80,000 Contingent consideration 190,000 180,000 Licensing & royalty payment obligations, current portion 198,698 136,582 Note payable 310,817 386,072 Notes payable - related parties 600,000 - Notes payable 600,000 - Total Current Liabilities 4,091,409 3,912,288 Non-Current Liabilities SBA EIDL loan 97,994 98,179 Licensing & royalty payment obligations, net of current portion 232,116 305,090 Line of Credit – related parties 3,000,000 3,000,000 Total Non-Current Liabilities 3,330,110 3,403,269 Total Liabilities 7,421,519 7,315,557 Commitments and Contingencies (Note 13) - - Mezzanine Equity Preferred Stock, par value $ 0.001 ; 10,000,000 shares authorized; 408,421 and 0 shares issued and outstanding, respectively 807,997 - Common Stock, par value $ 0.001 ; 250,000,000 shares authorized; 96,774 and 96,774 shares issued and outstanding, respectively 387,000 387,000 Total Mezzanine Equity 1,194,997 387,000 Stockholder’s Equity Preferred Stock, par value $ 0.001 ; 10,000,000 shares authorized; 150,316 and 100,316 shares issued and outstanding, respectively 151 101 Common Stock, par value $ 0.001 ; 250,000,000 shares authorized; 14,396,694 and 13,978,171 shares issued and outstanding, respectively 14,398 13,979 Additional Paid in Capital 57,430,060 55,957,740 Accumulated deficit ( 53,742,579 ) ( 50,597,419 ) Total Stockholders’ Equity 3,702,030 5,374,401 Total Liabilities, Mezzanine and Stockholders’ Equity $ 12,318,546 $ 13,076,958 See accompanying notes to condensed financial statements. 3 NEXTTRIP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) 2026 2025 Three Months Ended May 31, 2026 2025 Revenue $ 1,451,735 $ 138,827 Cost of revenue (exclusive of depreciation and amortization, shown separately below) ( 1,243,636 ) ( 99,921 ) Gross profit (loss) 208,099 38,906 Operating Expenses: Salaries and benefits 907,401 696,914 Stock based compensation ( 13,660 ) 138,325 General and administrative 34,626 30,588 Sales and marketing 134,848 90,035 Professional service fees 1,286,371 1,149,476 Technology 254,728 321,815 Organization costs 50,104 1,999,670 Depreciation and amortization 336,669 206,650 Provision for credit loss 65,561 - Other expenses 65,204 45,170 Total Operating Expenses 3,121,852 4,678,643 Operating loss ( 2,913,753 ) ( 4,639,737 ) Other Income (Expenses) Loss on extinguishment of liability - ( 70,100 ) Gain on derivative liability 40,000 - Interest income (expense), net ( 251,583 ) ( 276,333 ) Other income (expense) ( 133 ) 540,245 Total Other Income (Expense) ( 211,716 ) 193,812 Net loss before provision for income taxes ( 3,125,469 ) ( 4,445,925 ) Provision for income taxes - - Net loss before share of net loss in equity method investee ( 3,125,469 ) ( 4,445,925 ) Share of net loss of equity method investee - ( 11,307 ) Net loss $ ( 3,125,469 ) $ ( 4,457,232 ) Preferred dividends ( 19,691 ) ( 64,463 ) Net Loss Applicable to Common Stockholders $ ( 3,145,160 ) $ ( 4,521,695 ) Basic and diluted loss per common share $ ( 0.22 ) $ ( 0.68 ) Basic and diluted weighted average number of common shares 14,316,703 6,585,197 See accompanying notes to condensed financial statements. 4 NEXTTRIP, INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) (Unaudited) For the Three Months Ended May 31, 2026, and May 31, 2025 Preferred Stock Common Stock Additional Shares Outstanding Preferred Stock Shares Outstanding Common Stock Paid-in Capital Accumulated Deficit Total Balances, February 28, 2026 100,316 $ 101 13,978,171 $ 13,979 $ 55,957,740 $ ( 50,597,419 ) $ 5,374,401 Net loss - - - - - ( 3,125,469 ) ( 3,125,469 ) Preferred stock dividends - - - - 10,688 ( 19,691 ) ( 9,003 ) Issuance of securities pursuant to private placements 50,000 50 54,582 54 299,997 - 300,101 Issuance of common shares for third party services - - 280,140 281 769,886 - 770,167 Issuance of investor warrants pursuant to preferred private placement - - - - 132,990 - 132,990 Issuance of placement agent warrants pursuant to preferred private placement - - - - 50,003 - 50,003 Issuance of securities for equity investments - - 70,000 70 227,430 - 227,500 Offering costs - - - - ( 5,000 ) - ( 5,000 ) Stock based compensation - - 13,801 14 ( 13,674 ) - ( 13,660 ) Balances, May 31, 2026 150,316 $ 151 14,396,694 $ 14,398 $ 57,430,060 $ ( 53,742,579 ) $ 3,702,030 Preferred Stock Common Stock Additional Shares Outstanding Preferred Stock Shares Outstanding Common Stock Paid-in Capital Accumulated Deficit Total Balances, February 28, 2025 3,106,616 $ 3,107 1,656,738 $ 1,657 $ 41,710,126 $ ( 34,349,823 ) $ 7,365,067 Balance 3,106,616 $ 3,107 1,656,738 $ 1,657 $ 41,710,126 $ ( 34,349,823 ) $ 7,365,067 Net Loss - - - - - ( 4,457,232 ) ( 4,457,232 ) Preferred Stock Dividends - - 45,643 46 64,417 ( 64,463 ) - Preferred Shares Issued for FSA Travel, LLC acquisition 282,258 282 - - 875,359 - 875,641 Issuance of common shares for Journy.tv asset acquisition - - 20,000 20 115,180 - 115,200 Issuance of common shares pursuant to reverse acquisition of Sigma - - 5,843,993 5,844 ( 5,844 ) - - Issuance of common shares for services - - 125,000 125 476,075 - 476,200 Warrants issued in connection with debt conversion - - - - 30,775 - 30,775 Warrants issued in connection with bridge loan financing - - - - 177,398 - 177,398 Issuance of securities for directors’ services - - - - 1,948,544 - 1,948,544 Stock based compensation - - - - 138,325 - 138,325 Balances, May 31, 2025 3,388,874 3,389 7,691,374 7,692 45,530,355 ( 38,871,518 ) 6,669,918 Balance 3,388,874 3,389 7,691,374 7,692 45,530,355 ( 38,871,518 ) 6,669,918 See accompanying notes to condensed financial statements. 5 NEXTTRIP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) May 31, 2026 May 31, 2025 Three Months Ended May 31, 2026 May 31, 2025 OPERATING ACTIVITIES Net Income (Loss) – Continuing Operations $ ( 3,125,469 ) $ ( 4,457,232 ) Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: Noncash Expenses: Depreciation and amortization – property and equipment and intangibles 336,669 206,650 Amortization of debt discount 113,533 231,740 Provision for credit loss 65,561 - Gain on derivative liability ( 40,000 ) - Shares issued for professional services 552,952 694,912 Stock-based compensation - employees ( 13,660 ) 138,325 Stock-based compensation - directors - 1,948,544 Stock-based compensation - 1,948,544 Loss on extinguishment of liability - 70,100 Change in Assets and Liabilities: Accounts receivable ( 133,207 ) ( 87,554 ) Related party receivable ( 65,561 ) - Prepaid expenses 344,626 183,327 Accounts payable and accrued expenses 439,724 ( 280,955 ) Deferred revenue ( 807,464 ) 210,728 Licensing & royalty payment obligations, current portion 62,116 - Licensing & royalty payment obligations, net of current portion ( 72,974 ) - SBA loan ( 185 ) 98,757 NET CASH USED IN OPERATING ACTIVITIES ( 2,343,339 ) ( 1,042,658 ) INVESTING ACTIVITIES Capitalized software development costs ( 237,561 ) ( 81,503 ) FSA Travel LLC acquisition - ( 900,000 ) JOURNY.tv asset purchase - ( 300,000 ) NET CASH USED IN INVESTING ACTIVITIES ( 237,561 ) ( 1,281,503 ) FINANCING ACTIVITIES Proceeds from issuance of preferred shares 150,000 - Proceeds from issuance of common shares 150,100 - Notes Payable ( 101,800 ) 192,700 Advances from related parties 600,000 1,200,000 Proceeds from issuance of Mezzanine Equity 1,015,000 - Offering Costs ( 125,000 ) - NET CASH PROVIDED BY FINANCING ACTIVITIES 1,688,300 1,392,700 NET CHANGE IN CASH FOR PERIOD ( 892,600 ) ( 931,461 ) CASH AT BEGINNING OF PERIOD 1,696,090 1,062,367 CASH AT END OF PERIOD $ 803,490 $ 130,906 Supplemental Disclosures: Noncash Investing and Financing Activities Disclosure: Issuance of preferred shares pursuant to FSA Travel, LLC acquisition $ - $ 875,641 Issuance of common shares pursuant to JOURNY.tv asset purchase $ - $ 115,200 Issuance of common shares for third party services $ 770,167 $ 476,200 Issuance of common stock warrants in connection with private placement $ 50,003 $ - Preferred stock dividends $ 19,691 $ 64,463 Disclosure of Cash Paid for: Interest $ 26,381 $ 23,159 Income Taxes $ - $ - See accompanying notes to condensed financial statements. 6 NEXTTRIP, INC. NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS May 31, 2026 NOTE 1 - Business Description and Going Concern Sigma Additive Solutions, Inc. (“Sigma”), the legal acquiror of NextTrip Holdings, Inc., was initially incorporated as Messidor Limited in Nevada on December 23, 1985, and changed its name to Framewaves Inc. in 2001. On September 27, 2010, the name was changed to Sigma Labs, Inc. On May 17, 2022, Sigma Labs, Inc. began doing business as Sigma Additive Solutions, and on August 9, 2022, changed its name to Sigma Additive Solutions, Inc. On March 11, 2024, Sigma filed a Certificate of Amendment to its Amended and Restated Articles of Incorporation, as amended, with the Secretary of State of the State of Nevada, pursuant to which, effective as of 12:01 a.m. Pacific time on March 13, 2024, among other things, Sigma’s corporate name was changed from Sigma Additive Solutions, Inc. to “NextTrip, Inc.” The Company’s corporate office is located at 1560 Sawgrass Corporate Parkway, Suite 400, Sunrise Florida 33323. The consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries, NextTrip Holdings Inc. incorporated on October 22, 2015, Extraordinary Vacations USA, Inc., incorporated on June 24, 2002, Five Star Alliance, LLC, organized on March 9, 2018, and TA Pipeline, LLC, organized on July 1, 2021. Prior to the NextPlay Exchange Agreement, as described below, NextTrip Holdings, Inc. (“NTH”) was a wholly-owned subsidiary of NextTrip Group, LLC (“NTG”), which in turn, was a wholly-owned subsidiary of NextPlay Technologies, Inc. (“NextPlay”). All of the business operations of NTG were conducted through its subsidiaries. On January 25, 2023, NextPlay and NTG entered into an Amended and Restated Separation Agreement, Amended and Restated Operating Agreement, and Exchange Agreement (the “NextPlay Exchange Agreement”), whereby NextPlay transferred its interest in the travel business to NTG. Pursuant to the NextPlay Exchange Agreement, NextPlay exchanged 1,000,000 Membership Units of NTG for 400,000 Preferred Units of NTG, with a value of $ 10.00 per unit. Prior to the exchange for Preferred Units, NTG had a payable due to NextPlay of $ 17,295,873 , representing cash advances and payment of expenses by NextPlay on behalf of NTG, while NextPlay had obligations to provide ongoing support to NTH. Such liability was settled by the issuance of the Preferred Units and the waiver of all of NextPlay’s ongoing support obligations except for a $ 1.5 million advance remaining under a promissory note and, as such, NTH recorded the payable as contributed capital. The Company provides travel technology solutions with sales originating in the United States, with a primary emphasis on hotels, air, and all-inclusive travel packages. Our proprietary booking engine, branded as NextTrip 2.0, provides travel distributors access to a sizeable inventory. The Company owns 50 % of Next Innovation LLC, a Joint Venture (“Next Innovation”), which is dormant. No activities nor operations occurred through Next Innovation in fiscal years 2024 or 2025 for this entity, and the Company does not have control of Next Innovation and therefore no minority interest was recorded. Reverse Acquisition On October 12, 2023, the Company (then known as Sigma) entered into a Share Exchange Agreement (as amended, the “Exchange Agreement”) with NTH, NTG, and William Kerby (the “NextTrip Representative”). Under the terms of the Exchange Agreement, the parties agreed that NTG would sell and transfer to the Company all of the issued and outstanding shares of NTH in exchange for 156,007 restricted shares of Company common stock (the “Closing Shares”), issuable at closing, and the right to receive up to an additional 5,843,993 restricted shares of Company common stock upon satisfaction of certain milestones set forth in the Exchange Agreement (the “Contingent Shares,” and together with the Closing Shares, the “Restricted Shares”), which Restricted Shares are issuable to the members of NTG, on a pro rata basis, under the terms of the Exchange Agreement, subject to certain closing conditions (the “NextTrip Acquisition”). Upon the closing of the NextTrip Acquisition on December 29, 2023, NTH became a wholly-owned subsidiary of the Company. 7 The Contingent Shares, together with the Closing Shares, will not exceed 6,000,000 shares of Company common stock, or approximately 90.2 % of the issued and outstanding shares of Company common stock immediately prior to the closing. At closing, it was determined that the NextTrip Acquisition would likely result in a change of control, with the members of NTG receiving an aggregate number of shares that exceeds the number of shares held by the legacy shareholders of Sigma, which change in control occurred upon the issuance of certain of the Contingent Shares on March 26, 2025. As a result, the NextTrip Acquisition is accounted for as a reverse acquisition of NTH by the Company, whereby the Company is treated as the legal acquirer and NTH is treated as the accounting acquirer. As a result, the historical financial information for the periods prior to closing of the NextTrip Acquisition presented is that of NTH. In accordance with ASC 805 - 40 - 45 - 1, the consolidated financial statements prepared following a reverse acquisition are issued under the name of the legal parent (NextTrip, Inc., f/k/a Sigma Additive Solutions, Inc.) but described in the notes to the financial statements as a continuation of the financial statements of the legal subsidiary (NTH), with one adjustment, which is to retroactively adjust the accounting acquirer’s legal capital to reflect the legal capital of the accounting acquiree. That adjustment is required to reflect the capital of the legal parent. Under ASC 805 - 40 - 45 - 2, the consolidated financial statements represent the continuation of the legal subsidiary except for the capital structure, as follows: (a) The assets and liabilities of the legal subsidiary recognized and measured at their pre-combination carrying amounts; (b) The assets and liabilities of the legal parent recognized and measured in accordance with the guidance in this topic applicable to business combinations (ASC 805); (c) The retained earnings and other equity balances of the legal subsidiary before the business combination; (d) The amount required to be recognized as issued equity interests in the consolidated financial statements determined by adding the issued equity interest of the legal subsidiary outstanding immediately before the business combination to the fair value of the legal parent determined in accordance with the guidance in ASC 805 applicable to business combinations. However, the equity structure reflects the equity structure of the legal parent, including the equity interests the legal parent issued to affect the combination. Accordingly, the equity structure of the legal subsidiary is restated using the exchange ratio established in the acquisition agreement to reflect the number of shares of the legal parent issued in the reverse acquisition. The assets and liabilities of Sigma were recognized at fair value pursuant to ASC 805. Going Concern - As of May 31, 2026, and February 28, 2026, the Company had an accumulated deficit of $ 53,742,579 and $ 50,597,419 , respectively, and working capital deficit of $ 1,599,429 and $ 761,004 , respectively, and has incurred losses since incorporation. The Company will need to raise additional funds through equity or debt financings to support its on-going operations, increase market penetration of its products, expand the marketing and development of its 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 the Company’s operating costs. In the event the Company is unable to raise adequate funding in the future for its operations and to pay its outstanding debt obligations, the Company may be forced to scale back its business plan and/or liquidate some or all of its assets or may be forced to seek bankruptcy protection. In light of the foregoing, there is substantial doubt about the Company’s ability to continue as a going concern for 12 months from the date of the filing of this Report. 8 NOTE 2 – Summary of Significant Accounting Policies Basis of Presentation - The accompanying financial statements have been prepared by the Company in accordance with Generally Accepted Accounting Principles (“GAAP”) in the United States of America. The financial statements have been prepared on a consolidated basis with those of the Company’s wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at May 31, 2026 and 2025 and for the periods then ended have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The Company suggests these condensed financial statements be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2026. The results of operations for the period ended May 31, 2026 are not necessarily indicative of the operating results for the full year. Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on the net earnings (loss) or financial position. Fair Value of Financial Instruments - The Company applies ASC 820, “Fair Value Measurements . ” This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: ● Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to valuation methodology are unobservable and significant to the fair measurement. The carrying amounts reported in the balance sheets for the cash and cash equivalents, receivables, accounts payable, and accrued liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. Put Option The Company does not use derivative instruments for hedging of market risk or for trading or speculative purposes. The derivative liability at May 31, 2026 results from an option (the “Put Option”), which is embedded in the restricted common shares issued by the Company pursuant to the acquisition of TA Pipeline LLC (“TA”). On August 6, 2025, the Company entered into a Membership Interest Purchase Agreement (the “TA MIPA”) with TA and the members of TA (the “TA Members”), pursuant to which the Company purchased all of the issued and outstanding membership interests of TA from the TA Members (the “TA Acquisition”), resulting in TA becoming a wholly owned subsidiary of the Company. The TA Acquisition closed on August 6, 2025 (the ‘Closing Date”). Pursuant to the TA MIPA, as consideration for the TA Acquisition, at closing, the Company (i) paid the TA Members an aggregate of $ 443,169 in cash (the “TA Closing Payment”), $ 118,169 of which (the “Estimated Additional Closing Payment”) was paid as a purchase price adjustment based on the Members’ Deficit (as defined in the TA MIPA) set forth in the closing balance sheet provided by TA in connection with closing, as more particularly provided for by the TA MIPA; and (ii) issued an aggregate of 96,774 restricted shares of Company common stock (the “TA Closing Shares,” and together with the TA Closing Payment, the “TA Closing Consideration”) to the TA Members, valued at $ 387,000 , based on a price per share of $ 4.00 on August 6, 2025. The Estimated Additional Closing Payment is subject to adjustment, upward or downward, to the extent that the Members’ Deficit as of the closing date is determined to be less than or exceed $ 175,000 , as provided in the TA MIPA. 9 In the event that the Fair Market Value of the Company’s common stock is less than $ 3.10 (the “Base Price”) during the three month period starting on the earlier of (1) the date on which the restricted shares of the Company’s common stock becomes eligible for public resale, and (2) the date that is twelve months after the Closing Date, each TA Member shall have the limited, one time option to exercise one of the following rights as to some or all of their outstanding TA Closing Shares and TA Milestone Shares (together the “TA Acquisition Shares”), by delivering notice to the Company: (i) the right to require the Company to repurchase from the TA Member all or any portion of their outstanding TA Acquisition Shares at the Base Price; (ii) the right to require the Company to issue to such TA Member that number of additional shares of Company common stock (the “Top Up Shares”) as is necessary to make the aggregate value of the number of TA Acquisition Shares (based on the Fair Market Value) equal to the original aggregate value of the TA Acquisition Shares (based on the Base Price) for the number of TA Acquisition Shares specified in the exercise notice; and (iii) the right to require the Company to pay to such TA Member, in cash, an amount equal to the product of (x) the number of TA Acquisition Shares specified in the exercise notice and (y) the positive difference, if any, between the Base Price and the Fair Market Value. Pursuant to ASC 815, management evaluated the Put Option embedded in the common shares and determined that such Put Option required bifurcation and will be accounted for as a derivative liability. The Put Option applicable to the TA Acquisition Shares will be marked to market at each reporting period. Classification of TA Pipeline Closing Shares Although the 96,774 TA Closing Shares are legally common stock, they are classified as mezzanine equity on the consolidated balance sheet due to contingent redemption rights resulting from derivative liability provisions that could require cash or share settlement outside the Company’s control. Accordingly, these shares are presented outside of permanent stockholders’ equity and below total liabilities. The Company will continue to classify the shares as mezzanine equity until such time as the redemption provisions lapse or are removed, or until settlement occurs. Initial and Subsequent Measurement The carrying amount of instruments recorded within mezzanine equity are not adjusted below initial measurement. The TA Acquisition Shares were initially recorded at $ 4.00 per share, which was the closing prices of our stock on the acquisition date. The Put Option has an exercise price of $ 3.10 per share. As such, the TA Acquisition Shares will not be subsequently remeasured in future reporting periods TA Milestone Payment In addition to the TA Closing Consideration, and as further consideration for the TA Acquisition, the Company is required to make an additional payment to the TA Members in the form of an earnout (the “TA Milestone Payment”), which shall be in an amount equal to five percent (5%) of the net revenues generated by TA during the 12 month period after the Closing Date (the “Milestone Period”), up to a maximum of $200,000. The TA Milestone Payment shall be paid to the TA Members within 10 days following completion of the Milestone Period and will be payable fifty percent (50%) in cash and fifty percent (50%) in restricted shares of Company common stock (the “TA Milestone Shares”. The TA Milestone Payment is classified as a liability pursuant to ASC 480 since the Company may be required to repurchase the TA Milestone Shares upon the occurrence of certain events outside the Company’s control. As such. the TA Milestone Payment will be marked to market at each reporting period. The fair values of the Put Option and the TA Milestone Payment measured on a recurring basis are as follows: Schedule of Fair Values of the Put Option and the TA Milestone Payment Measured On a Recurring Basis Fair Value Input Level Fair Value Input Level May 31, 2026 Date of Issuance – August 6, 2025 Fair Value Input Level Fair Value Input Level Derivative liability – Put Option $ 30,000 Level 3 $ 130,000 Level 3 Contingent Consideration – TA Milestone Payment $ 190,000 Level 3 $ 180,000 Level 3 10 The following table presents a reconciliation of the derivative liability measured at fair value on a recurring basis using significant unobservable input (Level 3): Schedule of Derivative Liability Measured at Fair Value On a Recurring Basis Put Option TA Milestone Payment Fair Value on Issuance Date $ 130,000 $ 180,000 Change in fair value $ ( 100,000 ) 10,000 Fair value on May 31, 2026 $ 30,000 $ 190,000 Helena Global Investment Opportunities 1 Ltd. Private Placement Classification of Redeemable Convertible Preferred Stock The Company classifies its Series B Convertible Preferred Stock as mezzanine equity in accordance with ASC 480-10-S99-3A because the redemption obligation, while at a fixed date, is not unconditional from the Company’s perspective. The holder retains the right to convert the Series B Preferred Stock into Common Stock at any time prior to the mandatory redemption date and the right to elect a one-time extension of the mandatory redemption date. As a result, whether redemption occurs (in cash) or is settled through conversion (in shares), and the timing of any such redemption, is outside the Company’s sole control. The Series B Convertible Preferred Stock is presented between liabilities and stockholders’ equity on the balance sheet. Initial Measurement Proceeds from the issuance of the Series B Convertible Preferred Stock and detachable Investor Warrant are allocated to the two freestanding instruments using the relative fair value method pursuant to ASC 470-20-25-2. The portion of proceeds allocated to the Investor Warrant is credited to additional paid-in capital. The portion of proceeds allocated to the Series B Convertible Preferred Stock, net of debt issuance costs and original issue discount associated with issuance fee shares issued for no consideration, represents the initial carrying value of the mezzanine preferred. Subsequent Measurement The mezzanine carrying value of the Series B Convertible Preferred Stock is accreted to its redemption value over the period from issuance to the mandatory redemption date using the effective interest method. Accretion and stated dividends accrued on the Series B Convertible Preferred Stock are recognized as charges to retained earnings (deemed dividends to the holder) and reduce net income available to common shareholders for purposes of basic and diluted earnings per share calculations pursuant to ASC 260-10-S99. Accreted amounts and dividends are not recognized as interest expense in the income statement. Warrants The Company evaluates each freestanding warrant issued in connection with the Series B Convertible Preferred Stock for liability versus equity classification under ASC 815-40 at the issuance date and at each subsequent reporting date. The Investor Warrant and the Placement Agent Warrants are each classified as equity instruments at issuance based on the warrants’ indexation to the Company’s own stock and settlement provisions (including the absence of any cash-settled Black-Scholes payout obligation upon a Fundamental Transaction). Investments in Equity Method Investees The Company holds investments in certain entities that are accounted for under the equity method of accounting, as well as investments that are accounted for under the fair value method pursuant to ASC 321, “Investments - Equity Securities.” Under the equity method, investments in entities in which the Company has significant influence, but not control, are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the investees’ earnings or losses and other comprehensive income. 11 The Company determines the existence of significant influence based on various factors, including representation on the investees’ board of directors, participation in policy-making processes, and material intercompany transactions. The Company’s equity method investments are evaluated periodically for impairment by assessing whether events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. When such indicators exist, the Company performs an impairment test and recognizes an impairment loss to the extent that the carrying amount of the investment exceeds its fair value. Distributions received from equity method investees that exceed cumulative earnings recognized by the Company are considered a return of investment and are recorded as a reduction in the carrying amount of the investment. Adjustments resulting from changes in the Company’s ownership interest in equity method investees that do not result in a loss of significant influence are accounted for prospectively. Basis Difference In accordance with ASC 323, “Investments - Equity Method and Joint Ventures,” the Company records a basis difference when the carrying value of its equity method investment differs from its share of the investee’s fair value of net assets at the acquisition date. This basis difference is allocated to the investee’s identifiable assets and liabilities based on their fair values. The amortization of any basis difference related to depreciable assets, such as property, plant, and equipment, is recognized in the Company’s share of the investee’s earnings or losses. Any basis difference related to non-depreciable assets, including goodwill, is generally not amortized, but is subject to impairment testing as necessary. The Company assesses the impact of any basis differences on its earnings and the carrying value of its equity method investments. If a basis difference is determined to exist, the appropriate adjustments are made to reflect the amortization of such differences in the consolidated financial statements. Investments in Equity Securities without Readily Determinable Fair Value In accordance with ASC 321-10-35-2, the Company holds certain investments in equity securities in which the Company does not have significant influence or control, and for which fair value is not readily determinable. These investments are primarily accounted for at cost, less any impairment. The carrying amount is periodically evaluated for impairment, and if necessary, an impairment loss is recognized in the statement of operations. These investments are not adjusted for unrealized gains or losses unless an impairment is identified. Equity in Earnings of Equity Method Investees The Company’s share of earnings or losses from equity method investees is recognized in the consolidated statement of operations within “Equity in share of loss of equity method investees,” net of any related income taxes. Loss Per Share – The computation of loss per share is based on the weighted average number of shares outstanding during the period in accordance with ASC Topic No. 260, “Earnings Per Share.” Shares underlying the Company’s outstanding warrants, options and preferred stock were excluded due to the anti-dilutive effect they would have on the computation. At May 31, 2026 and 2025, the Company had the following common shares underlying these instruments: Schedule of Underlying Common Shares Excluded from Computation of Loss Per Share 2026 2025 May 31, 2026 2025 Warrants 4,957,011 3,112,772 Stock Options 1,114,825 556,250 Preferred Stock 565,311 3,391,974 Total Underlying Common Shares 6,637,147 7,060,996 12 The following table shows the amounts used in computing loss per share and the effect on net loss and the weighted average number of shares of dilutive potential common stock for the periods three months ended May 31, 2026, and 2025: Schedule of Amounts Used In Computing Loss Per Share and Effect On Net Loss and Weighted Average Number Of Shares 2026 2025 Three Months Ended May 31, 2026 2025 Net loss $ ( 3,125,469 ) $ ( 4,457,232 ) Preferred dividends $ ( 19,691 ) $ ( 64,463 ) Net loss applicable to common stockholders $ ( 3,145,160 ) $ ( 4,521,695 ) Weighted average number of common shares outstanding used in loss per share during the period (denominator) 14,316,703 6,585,197 Dilutive loss per share was not presented, as the Company’s outstanding common and preferred warrants, stock options and preferred stock common equivalent shares for the periods presented would have had an anti-dilutive effect. At May 31, 2026, the Company had outstanding warrants to purchase 4,957,011 shares of common stock; stock options exercisable for 1,114,825 shares of common stock; 150,000 shares of Series A preferred stock (“Series A Preferred”), which could be converted into 150,000 shares of common stock, 408,421 shares of Series B Preferred Stock (“Series B Preferred”) which could be converted into 411,689 shares of common stock, and 316 shares of Series E Preferred Stock (“Series E Preferred”), which could be converted into 3,622 shares of common stock, resulting in a potential total additional 6,637,147 shares of common stock outstanding in the future. Accounting Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated by management. Significant accounting estimates that may materially change in the near future are impairment of long-lived assets, values of stock compensation awards and stock equivalents granted as offering costs, and allowance for bad debts. Revenue Recognition – The Company’s revenue is derived primarily from sales of our software and related hardware suite under perpetual licenses and from providing engineering services under contracts. 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 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 recognizes revenue when the customer has purchased the product, the occurrence of the earlier of date of travel and the date of cancellation has expired, as satisfaction of the performance obligation, the sales price is fixed or determinable and collectability is reasonably assured. Revenue for customer travel packages purchased directly from the Company are recorded gross (the amount paid to the Company by the customer is shown as revenue and the cost of providing the respective travel package is recorded to cost of revenues). The Company generates revenues from sales directly to customers as well as through other distribution channels of tours and activities at destinations throughout the world. The Company controls the specified travel product before it is transferred to the customer and is therefore a principal, based on but not limited to, the following: ● The Company is primarily responsible for fulfilling the promise to provide such travel product. 13 ● The Company has inventory risk before the specified travel product has been transferred to a customer or after transfer of control to a customer. ● The Company has discretion in establishing the price for the specified travel product. Payments for tours or activities received in advance of services being rendered are recorded as deferred revenue and recognized as revenue at the earlier of the date of travel or the last date of cancellation (i.e., the customer’s refund privileges lapse). Segment Reporting - In response to recent acquisitions and expanded business activities, during the third quarter of fiscal year 2026, our Chief Operating Decision Maker (“CODM”), who is our Chief Executive Officer, requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, we have updated our reporting and beginning in the third quarter of fiscal year 2026, we reported our financial performance based on our new segments, “Travel” and “Media”. A detailed description of our operating segments as of May 31, 2026 can be found in NOTE 15 to the Financial Statements and the Overview section of Item 2 of this Quarterly Report, entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. Prior periods have been recast to conform to these newly identified segments. Recently Adopted Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendments require enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker (“CODM”) and included in the measure of segment profit or loss, an amount and description of other segment items, the title and position of the CODM, and application of the segment disclosure requirements to interim periods. The Company adopted ASU 2023-07 for its fiscal year beginning March 1, 2025. The Company began reporting under its Travel and Media reportable segments, and reflecting the interim disclosure provisions of ASU 2023-07, in the third quarter of fiscal year 2026 (the quarterly period ended November 30, 2025); prior periods have been recast to conform to the current segment presentation. Adoption affected disclosures only and did not affect the Company’s condensed consolidated financial position, results of operations, or cash flows. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The Company adopted ASU 2023-09 on a prospective basis effective for its fiscal year beginning March 1, 2025 (fiscal year ended February 28, 2026). The amendments affect annual income tax disclosures only and do not establish new interim disclosure requirements; adoption did not affect the Company’s condensed consolidated financial position, results of operations, or cash flows, or its interim income tax disclosures. NOTE 3 - Investment in Equity Securities Investment in Blue Fysh Holdings Inc . On February 24, 2025, the Company entered into a Share Exchange Agreement with Blue Fysh Holdings Inc. (“Blue Fysh”), under which the Company acquired a 10 % ownership interest in Blue Fysh. As part of the transaction, the Company issued 483,000 shares of Series N Preferred at an issuance price of $ 5.00 per share, totaling $ 2,415,000 , in exchange for 82 restricted shares of Blue Fysh common stock. The transaction closed on February 28, 2025. The Company’s investment in Blue Fysh is accounted for under the cost method, as the Company does not have significant influence over Blue Fysh. No board appointments are contemplated as part of this transaction; however, the Company has the right to appoint a representative to the Blue Fysh Advisory Committee, which will allow the Company to receive financial updates as needed and to be informed of financial events that could significantly impact the Company’s ownership position. Since the Company’s ownership interest does not meet the criteria for significant influence pursuant to ASC 323, this investment is classified as an equity security without a readily determinable fair value and is initially recorded at cost. The Company will assess the investment for impairment in future periods and recognize any impairment losses as necessary. Note 4 – Acquisition of FSA Travel, LLC On February 6, 2025, the Company acquired a 49 % non-controlling interest in FSA Travel, LLC (“FSA”) pursuant to a Membership Purchase Agreement (the “FSA Purchase Agreement”) and accounted for the investment under the equity method. The Company recorded its proportional share of FSA’s net loss from February 7, 2025 through February 28, 2025, the Company’s fiscal year-end. On April 9, 2025, the Company exercised its option to purchase the remaining 51 % interest in FSA for additional consideration of $ 1.0 million comprised of $ 0.5 million in cash, and $ 0.5 million in shares of Series O Preferred ( 161,291 shares at $ 3.10 per share), pursuant to the FSA Purchase Agreement. In addition, on April 28, 2025, the Company paid an additional $ 0.8 million in contingent consideration (comprised of both cash and shares of Series O Preferred stock) to the former owners of FSA (the “FSA Unitholders”) pursuant to the FSA Purchase Agreement. The contingent consideration issued as purchase consideration provides for additional distributions to the FSA Unitholders, the amount of which is dependent on the acquired business’ achievement of certain milestones. The Company determined the fair value of the contingent consideration as of the acquisition date (April 9, 2025) based on the probability and timing of achieving the respective milestones. 14 Upon completion of the acquisition of the remaining 51 % of FSA membership units, the acquisition of the remaining 51 % interest together with the initial 49 % interest acquired on February 6, 2025 was accounted for as a step acquisition (business combination) under ASC 805, Business Combinations, with the Company identified as the acquirer. A step acquisition occurs when a shareholder obtains control over an entity (that is considered a business) by acquiring an additional interest in that entity. Under step acquisition accounting, the acquirer’s previously held equity interest is remeasured to its fair value as of the date in which control was obtained and included as part of the total consideration when determining goodwill. Given the short duration between the initial equity purchase of FSA (which was accounted for under the equity method of accounting) and the purchase of the remaining outstanding shares of FSA, it was determined that the book value of such equity method accounting equaled its fair value at the time control was obtained. In accordance with the acquisition method of accounting, the purchase price has been assigned to the assets acquired, and the liabilities assumed, based on their estimated fair value at the acquisition date. The Company did not incur any acquisition-related costs in connection with the acquisition. The Company has completed the analysis to assign fair values to all assets acquired and liabilities assumed. The table below sets forth the consideration paid and the fair value of the assets acquired and liabilities assumed for the acquisition: Schedule of Preliminary Analysis To Assign Fair Values To All Assets Acquired And Liabilities Assumed Consideration paid Cash $ 500,000 Series O Preferred stock 500,000 Earnout Payment 800,000 Fair value of Initial Purchase 981,303 Total consideration $ 2,781,303 Assets acquired and liabilities assumed Cash and cash equivalents $ 471,660 Accounts receivable 13,460 Intangibles 960,000 Goodwill 1,669,058 Total assets $ 3,114,178 Accounts payable 12,474 Due to FSA Unitholders 221,481 SBA Loan 98,920 Total liabilities $ 332,875 Total net assets $ 2,781,303 The fair value of the working capital items, including accounts receivable, other receivables, trade payables and deferred revenue, approximates their respective carrying values at the date in which control was obtained. Effective January 1, 2021, the Company has adopted ASU 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which created an exception to the recognition and measurement principles of ASC 805, Business Combinations, for the Company’s contract assets and liabilities, including deferred revenue, essentially resulting in the carryover of the historical amounts determined in accordance with ASC 606, Revenue from Contracts with Customers, rather than fair value. The fair value of the acquired tradename and acquired technology was determined using the relief from royalty method, which utilized projected financial information. The goodwill recognized in the acquisition primarily represents synergies with the existing operations of the Company, and the value of yet-to-be-acquired/developed customers, technology, assembled workforce, and any other assets. NOTE 5 – JOURNY.tv Asset Acquisition On April 1, 2025, the Company entered into an asset purchase agreement (the “JOURNY.tv Purchase Agreement”) with Ovation LLC (“Ovation”), pursuant to which the Company purchased assets, including without limitation trademarks, domains, apps and certain agreements, and assumed certain liabilities related to Ovation’s JOURNY.tv business (the “JOURNY.tv Acquisition”). The JOURNY.tv Acquisition closed on April 1, 2025. 15 Pursuant to the JOURNY.tv Purchase Agreement, as consideration for the JOURNY.tv Acquisition, the Company paid Ovation $ 300,000 in cash at closing and issued Ovation 20,000 restricted shares of Company common stock at $ 5.76 per share, for total consideration of $ 415,200 . In connection with the JOURNY.tv Acquisition, on April 1, 2025, the Company and Ovation also entered into a License Agreement (the “License Agreement”), pursuant to which Ovation granted the Company the non-exclusive right, throughout the territories and for the term set forth therein, to exhibit, promote, market, advertise, publicize and/or otherwise exploit the programs listed in the License Agreement in the media of (i) FAST via the JOURNY.tv Channel and (ii) Video On Demand via the JOURNY.tv Channel. Pursuant to the License Agreement, Ovation shall not license any unaffiliated third party the right to exhibit certain of the programs subject to the License Agreement and shall not use certain of the programs subject to the License Agreement on its owned or operating streaming platforms (subject to certain exceptions). As consideration for the rights granted under the License Agreement, the Company agreed to pay Ovation an aggregate non-refundable license fee of $ 336,801 . Either party may terminate the License Agreement in the event of a material default by the other party that is not cured within fifteen days after the defaulting party receives notice of such default. The transaction was accounted for as an asset acquisition because while inputs were acquired (in the form of trademarks, distribution agreements, content licenses, and service agreements), there is not a continuation of revenues before and after the transaction. That is, due to the significant rebranding and redevelopment of the inputs acquired, the JOURNY.tv assets are not producing revenue post-closing of the transaction. Additionally, an organized workforce with the necessary skills and experience to create outputs was not included in the transaction. As such, the transaction does not meet the definition of a business and is considered an asset acquisition. On the acquisition date, the fair value of the intangible assets acquired was $ 715,000 , excluding $ 6,700 of acquisition-related direct costs which were expensed as incurred. The intangible assets have a weighted average estimated useful life of 16.7 years. NOTE 6 – Acquisition of TA Pipeline LLC On August 6, 2025 (the “Closing Date”), the Company entered into the TA MIPA with TA and the TA Members, pursuant to which the Company purchased all of the issued and outstanding membership interests of TA from the TA Members (the “TA Acquisition”), resulting in TA becoming a wholly-owned subsidiary of the Company. Pursuant to the TA MIPA, as consideration for the TA Acquisition, at closing, the Company (i) paid the TA Members an aggregate of $ 443,169 in cash (the “TA Closing Payment”), $ 118,169 of which (the “Estimated Additional Closing Payment”) was paid as a purchase price adjustment based on the Members’ Deficit (as defined in the TA MIPA) set forth in the closing balance sheet provided by TA in connection with closing, as more particularly provided for by the TA MIPA; and (ii) issued an aggregate of 96,774 restricted shares of Company common stock (the “TA Closing Shares,” and together with the TA Closing Payment, the “TA Closing Consideration”) to the TA Members, valued at $ 387,000 , based on a price per share of $ 4.00 on August 6, 2025. The Estimated Additional Closing Payment is subject to adjustment, upward or downward, to the extent that the Members’ Deficit as of the closing date is determined to be less than or exceed $ 175,000 , as provided in the TA MIPA. In addition to the TA Closing Consideration, and as further consideration for the TA Acquisition, the Company shall make an additional payment to the TA Members in the form of an earnout (the “TA Milestone Payment”), which shall be in an amount equal to five percent (5%) of the net revenues generated by TA during the 12 month period after the closing date (the “Milestone Period”), up to a maximum of $200,000. The TA Milestone Payment shall be paid to the TA Members within 10 days following completion of the Milestone Period and will be payable fifty percent (50%) in cash and fifty percent (50%) in restricted shares of Company common stock (the “TA Milestone Shares).” The Company determined the fair value of the TA Milestone Payment as of the acquisition date based on an earnout option pricing model. The TA Milestone Payment will be marked to market at each reporting period. 16 In addition to the foregoing, in the event that the Fair Market Value of the Company’s common stock is less than $ 3.10 (the “Base Price”) during the applicable Exercise Period, each TA Member shall have the limited, one time option (the “Put Option”), to exercise one of the following rights as to some or all of their outstanding TA Acquisition Shares by delivering notice to the Company: (i) the right to require the Company to repurchase from the TA Member all or any portion of their outstanding TA Acquisition Shares at the Base Price; (ii) the right to require the Company to issue to such TA Member that number of additional shares of Company common stock (the “Top Up Shares”) as is necessary to make the aggregate value of the number of TA Acquisition Shares specified in the notice (based on the Fair Market Value) equal to the original aggregate value of the number of TA Acquisition Shares specified in the notice (based on the Base Price); and (iii) the right to require the Company to pay to such TA Member, in cash, an amount equal to the product of (x) the number of TA Acquisition Shares specified in the notice and (y) the positive difference, if any, between the Base Price and the Fair Market Value. For purpose of the foregoing rights, the “Exercise Period” means the three month period commencing upon the earlier of: (i) with respect to the TA Closing Shares, (x) the date that the TA Closing Shares first become eligible for public resale and (y) the first anniversary of the closing date; and (ii) with respect to the TA Milestone Shares, (x) the date that the TA Milestone Shares first become eligible for public resale and (y) the first anniversary of the closing date. Additionally, for purpose of the foregoing rights, “Fair Market Value” means the volume weighted average price per share of the Company’s common stock for the twenty consecutive trading days immediately preceding the notice date. During the Exercise Period, each of the TA Members shall be prohibited from engaging in certain transactions in the Company’s stock, as more particularly set forth in the TA MIPA. The fair value of the Put Option was determined using the Black Scholes Pricing Model and will be marked to market at each reporting date. In accordance with the acquisition method of accounting, the purchase price has been assigned to the assets acquired, and the liabilities assumed, based on their estimated fair value at the acquisition date. In connection with the acquisition, the Company incurred $ 25,855 in acquisition-related expenses, which were expensed as incurred. The Company has completed the analysis to assign fair values to all assets acquired and liabilities assumed. The table below sets forth the consideration paid and the fair value of the assets acquired and liabilities assumed for the acquisition: Schedule of Preliminary Analysis To Assign Fair Values To All Assets Acquired And Liabilities Assumed Consideration paid Cash $ 443,168 Common stock 387,000 Fair value of TA Milestone Payment 180,000 Fair value of derivative liability 130,000 Total consideration $ 1,140,168 Assets acquired and liabilities assumed Cash and cash equivalents $ 1,444,457 Intangibles 910,000 Goodwill 286,824 Total assets $ 2,641,281 Deferred merchant bookings 1,501,113 Total liabilities $ 1,501,113 Total net assets $ 1,140,168 The fair value of the working capital items, including cash and deferred merchant bookings, approximates their respective carrying values at the date on which control was obtained. The fair value of the acquired tradename, acquired supplier agreements, and acquired travel agency agreements were determined using the relief from royalty method, with or without method and multi-period excess earnings method, respectively, which utilized projected financial information. The goodwill recognized in the acquisition primarily represents synergies with the existing operations of the Company, and the value of yet-to-be-acquired/developed customers, technology, assembled workforce, and any other assets. NOTE 7 – GoUSA TV Asset Purchase On February 2, 2026, NextTrip, Inc. entered into an Asset Purchase Agreement with The Corporation for Travel Promotion, doing business as “Brand USA” (“Seller”), pursuant to which the Company agreed to purchase select content, brand rights, and distribution assets (collectively, the “Assets”) of GoUSA TV, a travel streaming platform originally launched to showcase destinations across the United States. GoUSA TV historically reached an estimated 200+ million viewers globally across connected TV, mobile applications, and digital platforms, including Samsung TV Plus, LG Channels, Titan OS, and TCL International. 17 The aggregate consideration under the Purchase Agreement is $ 350,000 in cash plus restricted shares of the Company with a value of $ 350,000 based on the weighted average price of the shares for the twenty consecutive trading days ending on the trading day two trading days prior to closing. In addition, the Company will pay to Seller a royalty equal to 15 % of the Company’s gross advertising revenue from the exploitation of the acquired content rights during the three-year period beginning on the closing date. The Company has also agreed, for a three-year period beginning on closing, to pay a royalty of 1 % for every $ 100,000 in destination booking revenue directly attributed to the acquired content, with a minimum quarterly payment of $ 30,000 . Such minimum quarterly payments were recorded at their present value of $ 295,000 discounted using the Company’s estimated cost of debt of 12.03 %. The difference between the undiscounted payments and their present value will be recognized as interest expense using the effective interest method over the term of the license. The GoUSA TV assets are being integrated into JOURNY.tv within the Media segment. GoUSA TV content serves as a U.S.-focused demand-generation layer within NextTrip’s broader media-to-commerce ecosystem NOTE 8 – Intangible Assets Intangible assets as of May 31, 2026, and February 28, 2026 consisted of the following: Schedule of Intangible Assets May 31, 2026 February 28, 2026 Software Development $ 3,836,059 $ 3,736,917 Software Licenses 362,000 362,000 Trademark 6,283 6,283 FSA Travel, LLC Tradename 280,000 280,000 FSA Software Agreements 680,000 680,000 TA Pipeline, LLC Tradename 160,000 160,000 TA Pipeline, LLC Supplier and Agency Agreements 750,000 750,000 JOURNY.tv – Trade Name 235,000 235,000 JOURNY.tv Distribution Agreements 480,000 480,000 Journy.tv Production Costs 138,418 - GoUSA Content Episodes 106,500 106,500 GoUSA Content IMAX 74,500 74,500 GoUSA Distribution Agreements 760,000 760,000 GoUSA Assembled Workforce 54,000 54,000 Total 7,922,760 7,685,200 Intangible assets, gross 7,922,760 7,685,200 Accumulated amortization ( 3,763,019 ) ( 3,426,980 ) Intangible assets, net of amortization $ 4,159,741 $ 4,258,220 Amortization expense for the three months ended May 31, 2026, and 2025 was $ 336,040 and $ 206,021 , respectively. During the three months ended May 31, 2026, and 2025, the Company did no t record any impairment losses associated with the carrying value exceeding its recoverable amount. The estimated aggregate amortization expense for each of the succeeding years ending February 28 is as follows: Schedule of Estimated Aggregate Amortization Expense 2027 (Remaining) $ 881,725 2028 542,644 2029 422,752 2030 401,669 2031 399,894 Thereafter 1,267,213 Total $ 3,915,897 18 NOTE 9 – Goodwill Reverse Acquisition of Sigma Additive Solutions, Inc. As discussed in Note 1 – Business Description and Going Concern, the legal acquisition of NTH by the Company on December 29, 2023 was determined to be a reverse acquisition, with NTH as the accounting acquirer, using the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under this method of accounting, the purchase price was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of consummation of the transaction. Pursuant to ASC 350-20, the Company assigned its goodwill to reporting units and is required to test each reporting unit’s goodwill for impairment at least on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The goodwill resulting from the reverse acquisition is primarily attributable to NTH’s objective to obtain access to public markets to provide funding wherewithal to fund business growth. NTH’s benefit in paying for these synergies in the reverse acquisition transaction was to avoid the time and expense of organizing and executing an Initial Public Offering transaction. In the reverse acquisition, $ 1,167,805 of goodwill was allocated to the Company’s Travel Products and Services reporting segment (its “NTH Reporting Unit”) under the acquisition method of accounting. Acquisition of FSA Travel, LLC As of May 31, 2026, goodwill of $ 1,669,058 arising from the FSA acquisition has been reported within the Company’s reporting segment, Travel Products and Services. See Note 4, Acquisition of FSA Travel, LLC for a description of goodwill recognized in connection with the acquisition. Acquisition of TA Pipeline LLC As of May 31, 2026, goodwill of $ 286,821 arising from the FSA acquisition has been reported within the Company’s reporting segment, Travel Products and Services. See Note 6, Acquisition of TA Pipeline, LLC for a description of goodwill recognized in connection with the acquisition. NOTE 10 – Notes Payable On September 26, 2025, the Company sold a short-term promissory note to 1800 Diagonal Lending LLC in the aggregate principal amount of $ 269,000 . The note includes an OID of $ 37,000 , and bears a one-time interest charge of 13 %, which was applied on the issuance date to the principal. The note is payable in five installments, with the first payment in the amount of $ 151,985 due on March 30, 2026, and the remaining four equal installments of $ 37,996 are due on the 30 th of each of the next four successive months. The note may be prepaid at any time with no prepayment penalty. Upon the event of default by the Company, any unpaid principal and interest may be converted to common stock at the election of 1800 Diagonal Lending LLC. As of May 31, 2026, the balance on the note, net of the unamortized debt discount was $ 61,744 . On October 17, 2025, the Company sold two short-term promissory notes, each for a principal balance of $ 18,000 , to two investors for an aggregate principal balance of $ 36,000 . Each note includes an Original Issue Discount of $ 3,000 . The notes are payable in full on May 17, 2026. On June 3, 2026, the Company and each of the investors entered into an Extension of Promissory Note (the “Extension”) pursuant to which the parties agreed to extend the Maturity Date to November 17, 2026 at no additional cost to the Company. The notes may be prepaid at any time with no prepayment penalty. Upon the event of default by the Company, any unpaid balance is immediately due and payable. As of May 31, 2026, the aggregate balance on the notes was $ 36,000 . On October 24, 2025, the Company sold a short-term promissory note to 1800 Diagonal Lending LLC in the aggregate principal amount of $ 196,000 . The note includes an OID of $ 27,000 , and bears a one-time interest charge of 13 %, which was applied on the issuance date to the principal. The note is payable in ten equal installments of $ 22,148 , with the first payment due on November 30, 2025, and the remaining nine installments are due on the 30 th of each of the next nine successive months. The note may be prepaid at any time with no prepayment penalty. Upon the event of default by the Company, any unpaid principal and interest may be converted to common stock at the election of 1800 Diagonal Lending LLC. As of May 31, 2026, the balance on the note, net of the unamortized debt discount was $ 50,874 . 19 On March 24, 2026, the Company sold a short-term promissory note to 1800 Diagonal Lending LLC in the aggregate principal amount of $ 180,550 . The note includes an OID of $ 23,550 , and bears a one-time interest charge of 13 %, which was applied on the issuance date to the principal. The note is payable in five installments, with the first payment in the amount of $ 102,011 due on September 30, 2026, and the remaining four equal installments of $ 25,503 are due on the 30 th of each of the next four successive months. The note may be prepaid at any time with no prepayment penalty. Upon the event of default by the Company, any unpaid principal and interest may be converted to common stock at the election of 1800 Diagonal Lending LLC. As of May 31, 2026, the balance on the note, net of the unamortized debt discount was $ 162,199 . On May 26, 2026, the Company entered into an agreement to sell a short-term promissory note to 1800 Diagonal Lending LLC in the aggregate principal amount of $ 172,500 . The note includes an OID of $ 22,500 , and bears a one-time interest charge of 13 %, which was applied on the issuance date to the principal. The note is payable in five installments, with the first payment in the amount of $ 97,462 due on November 30, 2026, and the remaining four equal installments of $ 24,366 are due on the 30 th of each of the next four successive months. The note may be prepaid at any time with no prepayment penalty. Upon the event of default by the Company, any unpaid principal and interest may be converted to common stock at the election of 1800 Diagonal Lending LLC. The funding of the note closed on June 1, 2026. NOTE 11 – Long-Term Debt As part of the acquisition of FSA on April 9, 2025, the Company assumed an SBA loan originally issued to FSA on December 4, 2020, with an initial principal amount of $ 50,500 , bearing interest at 3.75 % per annum. On October 4, 2021, FSA received a modification to the loan, which increased the principal amount to $ 199,100 . The loan requires monthly payments of principal and interest of $ 995 and matures on December 4, 2050 . In accordance with ASC 805 – Business Combinations, the assumed loan was recognized at its acquisition-date fair value of $ 98,920 , which reflects a market-based effective interest rate of approximately 12.03 % per annum over the remaining term of 305 months. The difference between the face value of the debt and the fair value at the acquisition date was included in the allocation of purchase consideration and is reflected in goodwill. The loan is measured at amortized cost subsequent to the acquisition date, and interest expense is recognized using the effective interest method based on the fair value of the liability at the acquisition date. The following table summarizes the loan terms as of the acquisition date: Schedule of Long Term Loan Description Amount Principal amount $ 199,100 Fair value at acquisition date $ 98,920 Remaining term 302 months Monthly payment $ 995 Effective interest rate 12.03 % As of May 31, 2026, the balance of the loan was $ 97,994 . NOTE 12 - Related Party Transactions Monaco Investment Partners, II Line of Credit On May 6, 2025, the Company entered into a Line of Credit Agreement (the “MIP Line of Credit”) with Monaco Investment Partners II, LP (“MIP”) providing the Company with a $ 3,000,000 revolving line of credit. The MIP Line of Credit allows the Company to request advances thereunder from time to time until May 31, 2027 , the maturity date. Advances made under the MIP Line of Credit bear simple interest at a rate of 12 % per annum, calculated from the date of each respective advance. Accrued interest shall be payable on a monthly basis, no later than the 10th day of the subsequent month. The full outstanding principal balance, together with any accrued and unpaid interest, shall be due and payable in full by the Company on the maturity date. The Company may, at its option, prepay any borrowings under the MIP Line of Credit, in whole or in part, at any time prior to the maturity date, without penalty. Mr. Monaco, the Chairman of our Board of Directors, controls MIP. As of May 31, 2026 the maximum amount of $ 3,000,000 was outstanding under the MIP Line of Credit, plus accrued interest of $ 29,589 . On July 13, 2026, subsequent to the balance sheet date and prior to the issuance of these condensed financial statements, the Company and Monaco Investment Partners II executed an amendment extending the maturity date by one year, to May 31, 2028. The amendment is not cancelable by the lender and does not expire within one year of the balance sheet date. All other significant terms of the arrangement, including the interest rate, remained unchanged. 20 Because the Company has extended the obligation on a long-term basis prior to the issuance of these financial statements, and the extended maturity is beyond one year from the balance sheet date, the outstanding balance has been classified as a long-term liability as of May 31, 2026 in accordance with ASC 470-10-45-14. Donald P. Monaco Insurance Trust Short-Term Promissory Note On March 25, 2026, the Company sold a short-term promissory note (the “Note”) to the Donald P. Monaco Insurance Trust in the principal amount of $ 80,000 . The Note bears interest at 7.5 % and had an initial maturity date of April 3, 2026. Between April 6, 2026 and May 31, 2026, the parties entered into several amendments to the Note to increase the principal amount and extend the Maturity Date. As of May 31, 2026 the outstanding principal balance was $ 600,000 , plus accrued interest of $ 2,778 , and is due and payable in full on June 30, 2026. Between June 3, 2026 and June 30, 2026, the parties entered into further amendments to increase the principal balance to $ 950,000 and extend the maturity date to July 15, 2026. Compensation Deferral The Company’s Chief Executive Officer, William Kerby, at his election, has agreed to defer $ 100,000 of his annual salary as well as payments related to personal financial guarantees and his car allowance. At May 31, 2026, the total compensation deferred by Mr. Kerby totaled $ 308,334 . Equity Investments On April 15, 2026, Andy Kaplan, a director of the Company, through KC Global Media Asia LLC (“KCGM”), purchased 16,667 shares of Series A Preferred Stock at $ 3.00 per share, resulting in gross proceeds to the Company of $ 50,000 . In connection with this transaction, the Company issued KCGM a warrant to purchase up to 8,333 shares of common stock at $ 3.00 per share. The warrant expires 3.5 years from the issue date. On May 8, 2026, Mr. Kaplan, through KCGM, purchased 18,182 shares of Common Stock at $ 2.75 per share, resulting in gross proceeds to the Company of $ 50,000 . In connection with this transaction, the Company issued KCGM a warrant to purchase up to 9,091 shares of common stock at $ 3.00 per share. The warrant expires 3 years from the issue date. NextTrip Privilege, Inc. Licensing and Services Agreement On December 12, 2025, the Company entered into a Licensing and Servicing Agreement with NextTrip Privilege, Inc. (“Privilege”), pursuant to which the Company has agreed to provide to Privilege: (a) personnel to support their operations; (b) a license to use the name “NextTrip” as their corporate and business name; (c) a license to use our software in connection with their private-label internet website; and (d) continuing advances to fund their operations until they raise sufficient capital. In consideration for the foregoing, Privilege has agreed to pay the Company: ● a 20 % royalty fee on all net capital raised by Privilege, including pursuant to its Regulation A offering; ● the cost of the annual membership fee for each year of Privilege membership provided to investors; ● reimbursement of all incremental expenses paid by the Company on behalf of Privilege, related to an investor’s membership; ● any revenue received by Privilege from investor bookings on our platform; ● repayment of all advances previously made or made in the future, with advances being interest-free until February 28, 2026 and thereafter accruing interest at the rate of 1.5 % per month on outstanding balances, subject to minimum payment obligations; and ● beginning March 1, 2026, an Administrative Services Fee of $ 5,000 per month, increasing by 3% per annum on March 1 of each year thereafter. 21 On April 15, 2026, the Company and NextTrip Privilege, Inc. entered into Amendment No. 1 to the Licensing and Services Agreement, which deferred the commencement date of the $ 5,000 per month Administrative Services Fee from March 1, 2026 to June 1, 2026, and shifted the related annual three-percent (3%) escalator anniversary date to June 1 of each year thereafter. No other terms of the Licensing and Services Agreement were modified by the amendment. As of May 31, 2026, the Company had advanced a total of $ 381,056 to Privilege, for which the Company has recorded a full credit loss reserve based on Privilege’s pre-revenue status, the going-concern opinion issued by Privilege’s independent auditor, the de minimis proceeds raised under Privilege’s qualified Regulation A offering at May 31, 2026, the contractual subordination of advance repayments to NextTrip Privilege’s operating obligations, and the absence of collateral. Stock Option Agreement On December 2, 2025, NextTrip Group, LLC (“NextTrip Group”), the holder of 100 % of the outstanding shares of Class B common stock of Privilege, granted the Company an option (the “Option”) to purchase up to 12,500,000 shares of Class B common stock of Privilege at $ 0.01 per share, or an aggregate exercise price of $ 125,000 . The Option is exercisable from June 1, 2026 through December 31, 2027 and is freely assignable. NextTrip Group is owned 50 % by Donald P. Monaco (Chairman of the Board of the Company) and 50 % by William Kerby (Chief Executive Officer of the Company), in their individual capacities. No cash consideration was paid by the Company for the Option. The Option is not currently exercisable at May 31, 2026, the underlying Class B common stock has no readily determinable fair value, Privilege has minimal operations, and the Company does not consider exercise of the Option to be probable. Accordingly, no amount has been recognized on the Company’s balance sheet in respect of the Option. See Note 13 (Commitments and Contingencies) for additional information regarding the Option as a contingent purchase commitment. Common Officers and Directors Three of the Company’s executive officers and directors concurrently serve as executive officers and directors of Privilege: Donald P. Monaco serves as President, Chairman and a director of Privilege; William Kerby serves as Vice President and a director of Privilege; and Frank Orzechowski serves as Chief Financial Officer and a director of Privilege. NOTE 13 - Commitments and Contingencies The Company is involved, from time to time, in litigation, other legal claims and proceedings involving matters associated with or incidental to our business, including, among other things, matters involving breach of contract claims, intellectual property, employment issues, and other related claims and vendor matters. The Company believes that the resolution of currently pending matters would not, individually or in the aggregate, have a material adverse effect on our financial condition or results of operations. However, assessment of the current litigation or other legal claims could change considering the discovery of facts not presently known to the Company or by judges, juries or other finders of fact, which are not in accord with management’s evaluation of the possible liability or outcome of such litigation or claims. TA Pipeline Put Option and Contingently Redeemable Shares In connection with the acquisition of TA Pipeline LLC on August 6, 2025 (see Note 6), the Company issued 96,774 restricted shares of common stock (the “TA Closing Shares”) to the former TA Members, valued at $ 387,000 at the closing date. Under the TA MIPA, the TA Members were granted a Put Option that, upon the occurrence of certain events outside the Company’s control, could require the Company to (i) repurchase the TA Closing Shares (and any TA Milestone Shares) at the Base Price of $ 3.10 per share, (ii) issue additional “Top-Up Shares” sufficient to restore the original aggregate Base Price value, or (iii) pay cash equal to the difference between the Base Price and the then-current Fair Market Value of the Company’s common stock multiplied by the number of TA Acquisition Shares specified in the exercise notice. Because the redemption features are outside the Company’s control, the 96,774 TA Closing Shares are classified as mezzanine equity (carrying value $ 387,000 ) on the consolidated balance sheet rather than within permanent equity. 22 On February 24, 2026, the former TA Members submitted an exercise notice with respect to all of their TA Closing Shares. The Company believes the former TA Members are in breach of their obligations under the TA MIPA and has declined to honor the exercise of the Put Option. The parties are in discussions to resolve the dispute; however, the outcome of such discussions is uncertain. The Company believes it has meritorious defenses and intends to vigorously defend against any claims, as well as to assert any counterclaims relating to the TA Members’ alleged breach. The maximum aggregate cash exposure under the Put Option, if ultimately determined adverse to the Company, would be approximately $ 300,000 ( 96,774 shares at the $ 3.10 Base Price), exclusive of any Top-Up Shares that could be issuable. As of May 31, 2026, no adjustment to the fair value of the Put Option has been recorded because the terms of any potential settlement were not known or knowable. Subsequent to May 31, 2026, the former TA Members commenced binding arbitration against the Company with respect to this matter. See Note 16, Subsequent Events. For additional information regarding the TA Pipeline acquisition, the Put Option, and the TA Milestone Payment, refer to Note 2 (Summary of Significant Accounting Policies), Note 6 (Acquisition of TA Pipeline, LLC), and Note 14 (Stockholders’ Equity). Option to Purchase NextTrip Privilege Class B Common Stock On December 2, 2025, the Company was granted an option by NextTrip Group, LLC to acquire up to 12,500,000 shares of Class B common stock of NextTrip Privilege, Inc. at $ 0.01 per share, or an aggregate exercise price of $ 125,000 , exercisable from June 1, 2026 through December 31, 2027. The Option represents a contingent purchase commitment of the Company of up to $ 125,000 in aggregate exercise price. As described in Note 12 (Related Party Transactions), no amount has been recognized on the Company’s balance sheet in respect of the Option, the Option is not currently exercisable, and the Company does not consider exercise of the Option to be probable. JOURNY.tv Licensing and Royalty Payment Obligation In connection with the JOURNY.tv Asset Acquisition (see Note 5), the Company is obligated to make license fee payments to Ovation LLC totaling $ 336,801 over the period from April 2025 through October 2027. These payments were initially recorded at their present value of $ 299,800 , discounted using the Company’s estimated cost of debt of 12.03 % per annum. The difference between the undiscounted payments and their present value is being recognized as interest expense using the effective interest method over the payment term. As of May 31, 2026, the carrying value of the JOURNY.tv licensing and royalty payment obligation was $ 124,621 , of which $ 80,062 is classified within current liabilities and $ 44,559 is classified within non-current liabilities on the Company’s consolidated balance sheet. GoUSA TV Minimum Royalty Payment Obligation In connection with the GoUSA TV Asset Purchase (see Note 7), the Company agreed, for the three-year period beginning on the closing date of February 2, 2026, to pay Brand USA a royalty equal to 1 % for every $ 100,000 in destination booking revenue directly attributed to the acquired content, subject to a minimum quarterly payment of $ 30,000 . The total undiscounted minimum royalty payments over the three-year term are $ 360,000 (12 quarterly payments of $ 30,000 each). These minimum guaranteed payments were recorded at their present value of $ 295,000 , discounted using the Company’s estimated cost of debt of 12.03 % per annum. The difference between the undiscounted minimum payments and their present value is being recognized as interest expense using the effective interest method over the payment term. As of May 31, 2026, the carrying value of the GoUSA TV minimum royalty payment obligation was $ 306,193 , of which $ 118,636 is classified within current liabilities and $ 187,557 is classified within non-current liabilities on the Company’s consolidated balance sheet. Helena Global Investment Opportunities 1 Ltd. Private Placement Liquidated damages of $ 3,000 per day are payable to Helena if the Company fails to file or maintain effectiveness of a registration statement covering the resale of common stock issuable upon conversion or exercise of the Series B-related securities. The Company evaluates the probability of such damages pursuant to ASC 450-20 at each reporting period and accrues a liability if and when the loss becomes probable and reasonably estimable. The Mandatory Default Amount of 130 % of Stated Value plus accrued dividends becomes payable upon an Event of Default; the Company has not accrued the 30 % premium because, at May 31, 2026, management has concluded that an Event of Default is remote. Further, although management determined that the premium constitutes an embedded derivative which requires bifurcation under ASC 815-15, no value was allocated to this feature as it was deemed immaterial. 23 NOTE 14 - Stockholders’ Equity Mezzanine Equity TA Pipeline LLC Acquisition In connection with the acquisition of TA Pipeline LLC on August 6, 2025, the Company issued 96,774 TA Closing Shares. Although the shares are legally common stock, they are classified as mezzanine (temporary) equity on the consolidated balance sheet due to contingent redemption rights resulting from derivative liability provisions that could require cash or share settlement outside the Company’s control. Accordingly, these shares are presented outside of permanent stockholders’ equity and below total liabilities. The Company will continue to classify the shares as mezzanine equity until such time as the redemption provisions lapse or are removed, or until settlement occurs. The carrying amount of instruments recorded within mezzanine equity are not adjusted below initial measurement. The TA Acquisition Shares were initially recorded at $ 4.00 per share, which was the closing prices of our stock on the acquisition date. The Put Option has an exercise price of $ 3.10 per share. As such, the TA Acquisition Shares will not be subsequently remeasured in future reporting periods For further information regarding the TA Closing Shares and TA Acquisition shares, refer to Notes 2 and 6. Helena Global Investment Opportunities 1 Ltd. Private Placement On May 6, 2026, the Company entered into a Securities Purchase Agreement with Helena Global Investment Opportunities 1 Ltd. (“Helena”) pursuant to which the Company issued 408,421 shares of Series B Convertible Preferred Stock (“Series B Preferred Stock”), consisting of 368,421 shares issued in exchange for cash proceeds of $ 1,015,000 and 40,000 “Issuance Fee Shares” issued to the Investor for no additional consideration. Classification of Series B Convertible Preferred Stock The Company classifies its Series B Convertible Preferred Stock as mezzanine equity because the redemption obligation, while at a fixed date, is not unconditional from the Company’s perspective. Helena retains the right to convert the Series B Preferred Stock into Common Stock at any time prior to the mandatory redemption date and the right to elect a one-time extension of the mandatory redemption date. As a result, whether redemption occurs (in cash) or is settled through conversion (in shares), and the timing of any such redemption, is outside the Company’s sole control. As such, the Series B Convertible Preferred Stock is presented between liabilities and stockholders’ equity on the balance sheet. Initial Measurement Proceeds from the issuance of the Series B Convertible Preferred Stock and detachable Investor Warrant are allocated to the two freestanding instruments using the relative fair value method pursuant to ASC 470-20-25-2. The portion of proceeds allocated to the Investor Warrant is credited to additional paid-in capital. The portion of proceeds allocated to the Series B Convertible Preferred Stock, net of debt issuance costs and original issue discount associated with issuance fee shares issued for no consideration, represents the initial carrying value of the mezzanine preferred. Subsequent Measurement The mezzanine carrying value of the Series B Convertible Preferred Stock is accreted to its redemption value over the period from issuance to the mandatory redemption date using the effective interest method. Accretion and stated dividends accrued on the Series B Convertible Preferred Stock are recognized as charges to retained earnings (deemed dividends to the holder) and reduce net income available to common shareholders for purposes of earnings per share calculations pursuant to ASC 260-10-S99. Accreted amounts and dividends are not recognized as interest expense in the income statement. 24 Common Stock The Company has 250,000,000 shares of common stock authorized for issuance pursuant to its amended and restated articles of incorporation, as amended (“Charter”). At May 31, 2026 and February 28, 2026, there were 14,396,694 (excluding 96,774 mezzanine shares classified outside of permanent equity) and 13,978,171 shares of common stock, par value $ 0.001 per share, issued and outstanding, respectively. All shares of common stock have equal voting rights, are fully-paid and non-assessable, and are entitled to one vote per share. During the first quarter of 2025, the Company issued 105,000 shares of common stock in connection with various investor relations consulting contracts, 45,642 shares of common stock to the holders of shares of the Company’s Series L and Series M Preferred stock as dividends, 20,000 shares of common stock to Ovation as partial consideration pursuant to the April 1, 2025 JOURNY.tv Asset Purchase Agreement; 5,000 shares of common stock to ITA as a finder’s fee related to the FSA acquisition; 15,000 shares of common stock pursuant to a consulting contract related to the development and launch of a dedicated beauty and wellness FAST channel; and 5,843,993 shares of common stock to the members of NTG pursuant to the Exchange Agreement, constituting Contingent Shares issuable to the members of NTG upon the achievement of all business milestones. During the first quarter of 2026, the Company issued 60,000 shares of common stock in connection with various investor relations consulting contracts, 77,500 shares of common stock in connection with strategic marketing and business development contracts, 200,000 shares of common stock as consideration pursuant to third party contractor services, 8,000 shares of common stock to a vendor as settlement for outstanding invoices, 13,801 shares of common stock issued as stock-based compensation to an employee, 4,640 shares issued as commission payments to travel agents, and 54,582 shares issued to investors in private placements. Preferred Stock Under our Charter, our board of directors has the authority, without further action by stockholders, to designate one or more series of preferred stock and to fix the voting powers, designations, preferences, limitations, restrictions and relative rights granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be preferential to or greater than the rights of the common stock. Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of the common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in our control and may adversely affect the market price of the common stock and the voting and other rights of the holders of common stock. The Company is authorized to issue 10,000,000 shares of preferred stock, par value $ 0.001 per share. An aggregate of 150,316 (excluding 408,421 mezzanine shares of Series B Preferred classified outside of permanent equity) and 100,316 shares of preferred stock were issued and outstanding at May 31, 2026 and February 28, 2026, respectively, as further discussed below. Series A Convertible Preferred Stock On February 9, 2026, the Company filed a Certificate of Designation of Series A Convertible Preferred Stock (the “Series A Certificate of Designation”) with the Secretary of State of the State of Nevada, designating 1,000,000 shares of the Company’s preferred stock as Series A Preferred Stock, par value $ 0.001 per share (the “Series A Preferred”). The terms and conditions set forth in the Series A Certificate of Designation are summarized below: Ranking. The Series A Preferred rank pari passu to the Company’s common stock. Dividends. Holders of Series A Preferred will be entitled to dividends, on an as-converted basis, equal to dividends actually paid, if any, on shares of Company common stock. 25 Voting . Except as provided by the Company’s Charter or as otherwise required by the Nevada Revised Statutes, holders of Series A Preferred are entitled to vote with the holders of outstanding shares of Company common stock, voting together as a single class, with respect to all matters presented to the Company’s stockholders for their action or consideration. In any such vote, each holder is entitled to a number of votes equal to the number of shares of common stock into which the Series A Preferred held by such holder is convertible. The Company may not, without the consent of holders of a majority of the outstanding shares of Series A Preferred, (i) alter or change adversely the powers, preferences or rights given to the Series A Preferred or alter or amend the Series A Certificate of Designation, (ii) amend its Charter or other charter documents in any manner that adversely affects any rights of the holders of the Series A Preferred, or (iii) enter into any agreement with respect to the foregoing. Conversion . On the third business day after the date that the Company’s stockholders approve the conversion of Series A Preferred into shares of Common Stock in accordance with the listing rules of Nasdaq, each outstanding share of Series A Preferred shall automatically be converted into one share of Company common stock (subject to adjustment under certain limited circumstances) (the “Series A Conversion Ratio”), subject to beneficial ownership limitations. Liquidation . In the event of any liquidation, dissolution or winding up of the Company, either voluntary or involuntary, holders of Series A Preferred will be entitled to participate, on an as-converted-to-common stock basis calculated based on the Series A Conversion Ratio, with holders of Company common stock in any distribution of assets of the Company to holders of the Company’s common stock. At May 31, 2026, 150,000 shares of the issued Series A Preferred were outstanding, which if converted as of May 31, 2026, would have resulted in the issuance of 150,000 shares of common stock. Series B Convertible Preferred Stock On May 6, 2026 the Company filed a Certificate of Designation of Series B Convertible Preferred Stock (the “Series B Certificate of Designation”) with the Secretary of State of the State of Nevada, designating 450,000 shares of the Company’s preferred stock as Series B Preferred Stock, par value $ 0.001 per share (the “Series B Preferred”). The terms and conditions set forth in the Series B Certificate of Designation are summarized below: Ranking. The Series B Preferred Shares rank pari passu to the Company’s existing preferred shares and prior to the holders of the Company’s Common Stock and any other series of capital stock ranking junior to the Preferred Shares. Dividends. Holders of Series B Preferred Shares will be entitled to dividends equal to 12 % per annum (or 18 % per annum upon an Event of Default (as defined in the Series B Certificate of Designation)) which will accrue and be payable in cash upon redemption or added to the Stated Value ($ 2.755 ) upon conversion. Voting . Except as otherwise provided herein or as required by the Nevada Revised Statutes, the Series B Preferred Stock shall have no voting rights. However, without the affirmative vote of the holders of a majority of the then outstanding Series B Preferred Shares, the Company may not (i) alter or change adversely the powers, preferences or rights given to Series B Preferred Shares or alter or amend the Certificate of Designation in any manner that adversely affects any rights of the holders of the Series B Preferred Shares, (ii) issue further Series B Preferred Shares or increase or decrease the number of authorized shares of Series B Preferred Shares, or (iii) enter into any agreement with respect to the foregoing. Conversion . At the option of the Holder, each outstanding share of Series B Preferred Shares may be converted at an initial conversion price of $ 2.755 per share (subject to adjustment under certain limited circumstances) (the “Series B Conversion Price”), subject to beneficial ownership limitations. Liquidation . In the event of any liquidation, dissolution or winding up of the Company, either voluntary or involuntary, holders of Series B Preferred Shares will be entitled to receive in preference to the holders of Common Stock and any class of capital stock junior to the Series B Preferred Shares an amount per share equal to the greater of (i) 115 % of the Stated Value plus all accrued and unpaid dividends, or (ii) the amount that such holder would receive if such holder converted all of its shares of Series B Preferred Stock into Common Stock immediately prior to such liquidation, dissolution or winding up, and on parity with all existing preferred shares of the Company. 26 Redemption. The Company has the right to redeem all or any portion of the Series B Preferred Shares at a price per share equal to the Stated Value plus all accrued and unpaid dividends (the “Redemption Price”). On August 30, 2026, the Company is obligated to redeem all outstanding Series B Preferred Shares at the Redemption Price. The Holder may elect to extend the redemption period to December 31, 2026 by providing written notice at least five (5) Trading Days prior to August 30, 2026. Upon the occurrence of an Event of Default, the Company shall mandatorily redeem all outstanding Series B Preferred Shares at the Mandatory Default Amount, which equals 130 % of the Stated Value plus all accrued and unpaid dividends calculated at the default rate plus any other amounts then due. Events of Default under the Series B Certificate of Designation include, among others: (a) failure to pay the Mandatory Default Amount with 5 business days of when due; (b) breach of representations, warranties or covenants; (c) bankruptcy or insolvency proceedings; (d) delisting or suspension from the Principal Market or receipt of deficiency notices from Nasdaq or failing to meet Nasdaq listing standards; (e) entry of unsatisfied judgments in excess of $ 100,000 ; (f) material adverse change; (g) a Change of Control; (h) failure to deliver Conversion Shares; (i) failure to timely file periodic reports with the SEC; (j) loss of DTC eligibility; and (k) certain other events specified in the Certificate of Designation. On May 6, 2026, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with Helena Global Investment Opportunities 1 Ltd. (the “Purchaser”), pursuant to which the Company issued and sold (a) an aggregate of 368,421 restricted shares of newly designated Series B Convertible Preferred Stock, par value $ 0.001 , of the Company (the “Series B Preferred Shares”) plus 40,000 additional Series B Preferred Shares as an issuance fee; and (b) a five-year warrant (the “Warrant”) to purchase 100,000 shares of the Common Stock, par value $ 0.001 per share, of the Company (“Common Stock”) (the “Series B Offering”) at a purchase price of $ 2.7550 per share representing the Nasdaq Minimum Price plus $ 0.125 as of the date of the Purchase Agreement. The Warrant has an exercise price of $ 2.7550 per share. If a registration statement is not effective at the time of exercise, the holder may exercise the Warrant using a cashless exercise feature. If there is an Event of Default as defined in the Series B Certificate of Designation, the Warrant may be exercised without payment of cash. The obligations of the Company under the transaction documents are secured by a pledge of 1,365,314 shares of Common Stock (the “Pledged Shares”) owned by the Company’s Chief Executive Officer, William Kerby, pursuant to a Guarantee and Pledge Agreement (the “Pledge Agreement”). The Pledge Agreement provides a limited recourse guarantee, with recourse solely to the Pleated Shares and not to any other assets of Mr. Kerby. Pursuant to the Purchase Agreement, the Company has granted the Purchaser a right of participation of up to 20% of any future securities offering by the Company, other than exempt issuances. The Purchaser also has an exchange right to exchange Preferred Shares for offered securities at 100% of stated value. The Company has also agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) covering the resale of the shares of Common Stock issuable pursuant to exercise of the Warrant and conversion of the Series B Preferred Shares within fifteen (15) days (the “Filing Deadline”) of the closing date of the Series B Offering (the “Closing Date”). The Company shall use its best efforts to cause the registration statement to become effective within thirty (30) days after the Closing Date (or sixty (60) days if the SEC reviews the registration statement). Also, in connection with any “at the market” offerings conducted by the Company during the 180-day period following the Closing Date, the Purchaser has the right to require the Company to apply an amount equal to 25% of the net proceeds to redeem the Series B Preferred Shares at the Redemption Price. At May 31, 2026, 408,421 shares of the issued Series B Preferred were outstanding and classified as mezzanine shares outside of permanent equity, which if converted as of May 31, 2026, would have resulted in the issuance of 411,689 shares of common stock. 27 Series E Convertible Preferred Stock Under the Certificate of Designations of the Series E Preferred Stock, shares of the Company’s Series E Preferred have an initial stated value of $ 1,500 per share (the “Series E Stated Value”). Dividends at the initial rate of 9 % per annum will accrue and, on a monthly basis, shall be payable in kind by the increase of the Series E Stated Value of the Series E Preferred by said amount. The holders of shares of the Series E Preferred have the right at any time to convert all or a portion of the Series E Preferred (including, without limitation, accrued and unpaid dividends and make-whole dividends through the third anniversary of the closing date) into shares of the Company’s common stock at an initial conversion rate determined by dividing the Conversion Amount by the conversion price ($ 0.13 above the consolidated closing bid price for the trading day prior to the execution of the relates stock purchase agreement). The Conversion Amount is the sum of the Stated Series E Value of the shares of Series E Preferred then being converted plus any other unpaid amounts payable with respect to the Series E Preferred being converted plus the “Make Whole Amount” (the amount of any dividends that, but for the conversion, would have accrued at the dividend rate for the period through the third anniversary of the initial issuance date). The Conversion Rate is also subject to adjustment for stock splits, dividends recapitalizations and similar events. At May 31, 2026, 316 shares of Series E Preferred were outstanding, which if converted as of May 31, 2026, including the make-whole dividends, would have resulted in the issuance of 3,623 shares of common stock. Stock Options On December 28, 2023, at the Annual Meeting of Stockholders of the Company, the Company’s stockholders approved the adoption of the NextTrip 2023 Equity Incentive Plan (the “2023 Plan”). 7,000,000 shares of common stock have been reserved for issuance under the 2023 Plan, and as of May 31, 2026, 5,466,374 shares are available for future issuance. The Company’s 2013 Equity Incentive Plan expired on March 15, 2023. As such, there were no shares of common stock reserved for future issuance thereunder as of May 31, 2026. On March 26, 2025, under the terms of the 2013 Equity Incentive Plan, all outstanding options terminated upon the change in control effected by the issuance of Contingent Shares pursuant to the Exchange Agreement entered into in connection with the NextTrip Acquisition. During the three months ended May 31, 2026 and 2025, the Company granted and issued stock options to purchase an aggregate of 200,000 and 556,250 shares of common stock, respectively, under the 2023 Plan. The Company generally grants stock options to employees, consultants, and directors at exercise prices equal to the fair market value of the Company’s common stock on the grant date, but not less than 100% of the fair market value. Stock options are typically granted throughout the year and generally vest over a period from one to three years of service and expire five years from the grant date, unless otherwise specified. The Company recognizes compensation expense for the fair value of the stock options over the vesting period for each stock option award. Total stock-based compensation expense included in the statements of operations for the three months ended May 31, 2026 and 2025 was $( 13,660 ) related to a common share issuance and $ 138,325 related to stock options, respectively. The fair value of stock-based awards was estimated using the Black-Scholes model with the following weighted average assumptions for the three months ended May 31, 2026 and May 31, 2025. Schedule of Share Based Payments Award Stock Options Valuation Assumptions 2026 2025 Dividend yield 0 % 0 % Risk-free interest rate 3.89 % 3.83 %- 4.06 % Expected volatility 136.86 % 122.5 %- 139.7 % Expected life (in years) 3.0 3.0 - 5.0 28 Option activity for the three months ended May 31, 2026 and the year ended February 28, 2026 was as follows: Schedule of Stock Option Activity Options Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Yrs.) Aggregate Intrinsic Value ($) Options outstanding at February 28, 2025 76,342 52.69 1.60 - Granted 914,825 4.39 2.28 - Exercised - - - - Forfeited or cancelled ( 76,342 ) 52.69 - - Options outstanding at February 28, 2026 914,825 4.39 2.28 - Granted 200,000 2.64 2.94 - Exercised - - - - Forfeited or cancelled - - - - Options outstanding May 31, 2026 1,114,825 4.08 2.19 - Options expected to vest in the future as of May 31, 2026 175,000 2.64 2.93 - Options exercisable at May 31, 2026 939,825 4.35 2.05 - Options vested, exercisable, and options expected to vest at May 31, 2026 1,114,825 4.08 2.19 - The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the market price of our common stock for those awards that have an exercise price below the market price of our common stock. At May 31, 2026, no options had an exercise price below the $ 2.18 closing price of our common stock as reported on The Nasdaq Capital Market. At May 31, 2026, there was $ 358,973 unrecognized stock-based compensation expense related to unvested stock options. Stock Appreciation Rights The purposes of the 2020 Stock Appreciation Rights Plan (the “2020 SAR Plan”) are to: (i) enable the Company to attract and retain the types of employees, consultants, and directors (collectively, “Service Providers”) who will contribute to the Company’s long-range success; (ii) provide incentives that align the interests of Service Providers with those of the stockholders of the Company; and (iii) promote the success of the Company’s business. The 2020 SAR Plan provides for incentive awards that are only in the form of stock appreciation rights payable in cash (“SARs”). No shares of common stock are reserved or will be issued pursuant to the 2020 SAR Plan. SARs may be granted to any Service Provider. A SAR is the right to receive an amount equal to the Spread with respect to a share of the Company’s common stock (a “Share”) upon the exercise of the SAR. The “Spread” is the difference between the exercise price per share specified in a SAR agreement on the date of grant and the fair market value per share on the date of exercise of the SAR. The exercise price per share will not be less than 100% of the fair market value of a Share on the date of grant of the SAR. The administrator of the 2020 SAR Plan will have the authority to, among other things, prescribe the terms and conditions of each SAR, including, without limitation, the exercise price and vesting provisions, and to specify the provisions of the SAR Agreement relating to such grant. On March 26, 2025, under the terms of the 2020 SAR Plan, all outstanding unvested SARs became immediately vested and exercisable upon the change in control effected by the issuance of Contingent Shares pursuant to the Exchange Agreement entered into in connection with the NextTrip Acquisition. The Company did not grant any SARs during the three months ended May 31, 2026 or May 31, 2025. 29 The Company recognizes compensation expense and a corresponding liability for the fair value of the SARs over the vesting period for each SAR award. The SARs are revalued at each reporting date in accordance with ASC 718 “Compensation-Stock Compensation,” and any changes in fair value are reflected in the Statement of Operations as of the applicable reporting date. SARs activity for the three months ended May 31, 2026 and the year ended February 28, 2026 was as follows: Schedule of Stock Option Activity SARs Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Yrs.) Aggregate Intrinsic Value ($) SARs outstanding at February 28, 2025 40,223 44.80 1.99 - Exercised - - - - Forfeited or cancelled ( 3,907 ) 52.60 - - SARs outstanding at February 28, 2026 36,316 43.96 1.17 - Granted - - - - Exercised - - - - Forfeited or cancelled - - - - SARs outstanding May 31, 2026 36,316 43.96 0.91 - SARs expected to vest in the future as of May 31, 2026 - - - - SARs exercisable at May 31, 2026 36,316 43.96 0.91 - SARs vested, exercisable, and SARs expected to vest at May 31, 2026 36,316 43.96 0.91 - The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the market price of our common stock for those awards that have an exercise price below the market price of our common stock. At May 31, 2026, no SARs had an exercise price below the $ 2.18 closing price of our common stock as reported on The Nasdaq Capital Market. At May 31, 2026, there was no unrecognized stock-based compensation expense related to unvested SARs. Warrants The fair value of warrants issued during the three months ended May 31, 2026 was estimated using the Black-Scholes model with the following assumptions. Assumptions: Schedule of Share Based Payments Award Stock Options Valuation Assumptions 2026 2025 Dividend yield 0 % 0 % Risk-free interest rate 3.54 %- 3.83 % 3.9 %- 4.1 % Expected volatility 117.3 %- 119.4 % 156.4 %- 160.5 % Expected life (in years) 1.5 - 2.5 3.32 - 5.0 30 Warrant activity for the three months ended May 31, 2026 and the year ended February 28, 2026 was as follows: Schedule of Warranty Activity Warrants Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Yrs.) Warrants outstanding at February 28, 2025 3,015,885 5.36 3.84 Granted 1,998,104 3.34 3.96 Exercised ( 237,429 ) 3.02 - Forfeited or cancelled ( 17,979 ) 128.32 - Warrants outstanding at February 28, 2026 4,758,581 4.15 3.48 Granted 198,430 2.84 4.31 Exercised - - - Forfeited or cancelled - - - Warrants outstanding at May 31, 2026 4,957,011 4.10 3.27 NOTE 15 – Segment Information ASC Topic 280, Segment Reporting , establishes standards for reporting information about operating segments . Operating segments are defined as components of a reporting entity, the operating results of which are reviewed regularly by the chief operating decision maker (“CODM”) to make decisions about resource allocation and to assess performance. Our CODM is our Chief Executive Officer. In response to acquisitions and expanded business activities, during the third quarter of fiscal year 2026, our CODM requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, we have updated our reporting and beginning in the third quarter of fiscal year 2026, we report our financial performance based on our new segments: “Travel” and “Media”. Our Travel segment provides travelers with a full range of travel services through its NXT2.0 booking engine, which offers extensive inventory and a platform for curating personalized experiences and efficient trip planning and booking. In addition, Five Star Alliance provides luxury and cruise offerings, and TA Pipeline provides a group-travel agency platform for conferences, conventions, weddings, and affinity groups. Our Media segment consists of JOURNY.tv, (including GoUSA TV) a Connected TV Channel broadcast as Free Ad Supported Streaming TV (“FAST”) and Advertising Video on Demand (“AVOD”) that specializes in travel, adventure, and culture-focused content, and Travel Magazine, an online travel magazine that provides articles, tips, guides and inspiration for travelers. We leverage our media brands—TravelMagazine.com and JOURNY.tv—as strategic tools to generate travel bookings by integrating content, marketing, and booking technology as well as to generate advertising revenues for third-party content. Additional information regarding our operating segments can be found in the overview section of Item 2 of this Quarterly Report, entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” Prior periods disclosed below have been recast to conform to these newly identified segments. Our primary operating metric is Operating Income (Loss). Operating Income (Loss) for our Travel and Media segments includes direct expenses of the segments as well as allocations of certain expenses, primarily salaries and benefits, third party contractors, sales and marketing, and technology We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate shared corporate expenses such as accounting, human resources, certain information technology and legal to our reportable segments. We include these expenses in Corporate. Our allocation methodology will be periodically evaluated and may change as the segments evolve. Our CODM currently uses Operating Income (Loss) to assess performance in the monthly financial review process. Because our segments have been newly formed, the financial reporting framework continues to be under development and in the future will be used to assess performance and allocate resources for the segments in the annual budget and quarterly forecasting processes. The CODM will consider budget-to-actual variances on a monthly basis using Operating Income (Loss) when making decisions about allocating capital and personnel to the segments. The CODM also anticipates using Operating Income (Loss) to assess the performance and compensation of certain employees. 31 Corporate includes unallocated corporate functions including finance and administration, technology, and corporate development. In addition, we record amortization of intangible assets and any related impairment, investor relations, stock-based compensation expense, legal and audit, directors’ compensation and other items excluded from segment operating performance in Corporate. Such amounts are detailed in our segment reconciliation below. The following tables present our segment information for the three months ended May 31, 2026. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation and amortization is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision maker. All of our revenues are attributed to customers located in the United States; therefore, no revenues are reported from foreign geographic areas. Schedule of Segment Information Media Travel Corporate Total Three Months Ended May 31, 2026 Media Travel Corporate Total Revenue $ 40,952 $ 1,410,783 $ - $ 1,451,735 Cost of revenue (exclusive of depreciation and amortization, shown separately below) - ( 1,243,636 ) - ( 1,243,636 ) Gross profit (loss) 40,952 167,147 - 208,099 Operating Expenses: Salaries and benefits 212,405 205,879 489,117 907,401 Stock based compensation - - ( 13,660 ) ( 13,660 ) General and administrative 1,751 10,761 22,114 34,626 Sales and marketing 102,687 32,161 - 134,848 Professional service fees 250,290 32,805 1,003,276 1,286,371 Technology 99,804 80,895 74,029 254,728 Organization costs - - 50,104 50,104 Depreciation and amortization - - 336,669 336,669 Provision for credit losses - - 65,561 65,561 Other expenses 30 19,592 45,582 65,204 Total Operating Expenses 666,967 382,093 2,072,792 3,121,852 Operating Loss $ ( 626,015 ) $ ( 214,946 ) $ ( 2,072,792 ) $ ( 2,913,753 ) Other Income (Expense) Other Income (Expense) ( 133 ) Gain (Loss) on extinguishment of liability - Gain on derivative liability 40,000 Interest income (expense), net ( 251,583 ) Total Other Income (Expense) ( 211,716 ) Net loss before provision for income taxes ( 3,125,469 ) Provision for income taxes - Net income loss before share of net income (loss) in equity method investee ( 3,125,469 ) Share of net income (loss) of equity method investee - Net loss ( 3,125,469 ) Preferred dividends ( 19,691 ) Net Loss Applicable to Common Stockholders $ ( 3,145,160 ) 32 Media Travel Corporate Total Three Months Ended May 31, 2025 Media Travel Corporate Total Revenue $ - $ 138,827 $ - $ 138,827 Cost of revenue (exclusive of depreciation and amortization, shown separately below) - ( 99,921 ) - ( 99,921 ) Gross profit (loss) - 38,906 - 38,906 Operating Expenses: Salaries and benefits 36,504 303,256 357,154 696,914 Stock based compensation - - 138,325 138,325 General and administrative 659 7,145 22,784 30,588 Sales and marketing 4,950 22,585 62,500 90,035 Professional service fees 20,000 3,278 1,126,198 1,149,476 Technology 129,956 100,635 91,224 321,815 Organization costs - - 1,999,670 1,999,670 Depreciation and amortization - - 206,650 206,650 Other expenses - 835 44,335 45,170 Total Operating Expenses 192,069 437,734 4,048,840 4,678,643 Operating Loss $ ( 192,069 ) $ ( 398,828 ) $ ( 4,048,840 ) $ ( 4,639,737 ) Other Income (Expense) Other Income (Expense) 540,245 Gain (Loss) on extinguishment of liability ( 70,100 ) Gain on derivative liability - Interest income (expense), net ( 276,333 ) Total Other Income (Expense) 193,812 Net loss before provision for income taxes ( 4,445,925 ) Provision for income taxes - Net loss before share of net income (loss) in equity method investee ( 4,445,925 ) Share of net income (loss) of equity method investee ( 11,307 ) Net loss ( 4,457,232 ) Preferred dividends ( 64,463 ) Net Income (Loss) Applicable to Common Stockholders $ ( 4,521,695 ) There were no intersegment revenues during the three months ended May 31, 2026 or May 31, 2025; all revenues presented are from external customers. The significant expense categories presented above for each reportable segment reconcile in full to each segment’s measure of Operating Income (Loss); accordingly, there were no other segment items (as described in ASC 280-10-50-26A) for the three months ended May 31, 2026 or May 31, 2025. The “Other expenses” line presented within each segment comprises insurance, bank and payment-processing fees, and other individually immaterial operating costs. NOTE 16 - Subsequent Events The Company’s management has evaluated subsequent events after the balance sheet dated as of May 31, 2026 through July 15, 2026, the date of this report. Yada Commerce Inc. Acquisition Stock Purchase Agreement On June 10, 2026 (the “Effective Date”), NextTrip, Inc. (the “Company”) entered into a Stock Purchase Agreement (the “Purchase Agreement”) with Yada Commerce Inc (“Yada”) and High Class Holdings LLC and Carbon Capital Corp, the shareholders of Yada (collectively, the “Founding Shareholders”) pursuant to which, subject to the terms and conditions set forth in the Purchase Agreement, the Company purchased from the Founding Shareholders 51 % of the outstanding shares of Yada (the “Yada Shares”). 33 The aggregate consideration under the Purchase Agreement is 50,000 restricted shares of the Company (the “Company Shares”). The Company granted to the Founding Shareholders piggyback registration rights subject to cut backs required under Rule 415 and at the request of investors, placement agents and underwriters. The Purchase Agreement contains customary representations and indemnification provisions. The Purchase Agreement also contains provisions regarding the post-closing governance of Yada including a provision requiring the parties to vote their shares of Yada to elect a five member board of directors, two of whom will be designated by the Founding Shareholders, two of whom will be designated by the Company, with the fifth member to be appointed by the board of directors. The Purchase Agreement also provides for a first right of refusal in favor of the Company regarding any future sale by the Founding Shareholders of their shares in Yada. Cooperation and Earnout Agreement . Concurrently with the entering into of the Purchase Agreement, the Company entered into a Cooperation and Earnout Agreement (the “Earnout Agreement”) with Yada regarding the post-closing operations of Yada, the role of the Company, and the compensation arrangement for the Founding Shareholders. The Earnout Agreement has a three-year term from the Effective Date (the “Term”). Under the Earnout Agreement, the Parties acknowledge that, notwithstanding the Company’s controlling interest in Yada, the Founding Shareholders will retain full operational control over Yada’s day-to-day business affairs, subject to the oversight of Yada’s board of directors, and the rights, duties and obligations of Yada’s officers, directors and shareholders under Yada’s organizational documents and applicable law. The Earnout Agreement grants to the Company certain roles including serving as Yada’s exclusive preferred travel provider, the first right of refusal to match any bona fide third-party proposal with respect to travel service offered through Yada channels, the processing by the Company of travel bookings generated through Yada channels, the exclusive right to offer travel gift cards through Yada channels, and the exclusive booking rights for music artist promotional events. The Earnout Agreement also sets forth the sharing of Net Profits between the Company and the Founding Shareholders from activities enumerated in the Earnout Agreement. The Earnout Agreement further provides as inducement compensation for the Founding Shareholders the establishment of an earnout pool consisting of an aggregate of 225,000 restricted shares of the Company’s common stock and warrants to purchase up to 225,000 common shares with a three-year term at an exercise price of $ 2.75 to be awarded over the Term pursuant to the terms of the Earnout Agreement on the basis of one share of Company common stock and one warrant for each $ 2.75 of the Company’s share of the aggregate net profits generated from the activities described in the Earnout Agreement. Related Party Promissory Note The Donald P. Monaco Insurance Trust (the “Trust”) promissory note has been amended to increase the principal amount and extend the maturity date, as follows: On June 3, 2026 the Company and the Trust (the “Parties”) entered into the Sixth Amendment extending the maturity date to June 30, 2026 ; on June 8, 2026 the Parties entered into the Seventh Amendment increasing the principal balance to $ 700,000 , and on June 30, 2026 the Parties entered into the Eighth Amendment increasing the principal balance to $ 950,000 and extending the maturity date to July 15, 2026 , as described in Note 12. Other terms of the Monaco Trust Note remained unchanged under each amendment. As of the date of this Quarterly Report, $ 950,000 of principal remained outstanding under the Monaco Trust Note. The 7.5 % interest rate, which is lower than the 12 % rate borne by the MIP Line of Credit, reflects the short-term, on-demand nature of the Monaco Trust Note. The Monaco Trust Note, including each amendment, was approved by the Audit Committee of the Board and the full Board, including the independent members thereof. Related Party Line of Credit On July 13, 2026, the Company and Monaco Investment Partners II, executed an amendment to the Company’s line of credit extending the maturity date from May 31, 2027 to May 31, 2028 , as described in Note 12. Related Party Equity Investment On June 18, 2026, David Jiang, a director, purchased 18,200 shares of common stock in a private placement at $ 2.75 per share resulting in gross proceeds of $ 50,050 . Pursuant to the Securities Purchase Agreement, we issued a warrant to Mr. Jiang to purchase up to 18,200 shares of common stock at an exercise price of $ 2.75 . The warrant expires on June 18, 2029 . Short Term Promissory Notes On June 9, 2026, we sold a short-term promissory note to a private investor for $ 100,000 . In connection with the note, we issued the investor a three-year warrant to purchase up to 25,000 shares of common stock at an exercise price of $ 2.75 per share. The maturity date of the note is August 8, 2026 , and may be prepaid at any time without penalty. On July 1, 2026, the Company entered into a short-term loan agreement with OnDeck for a principal amount of $ 275,000 . The loan is repayable in eighteen monthly installments of $ 20,533 for a total repayment amount of $ 369,600 . The origination fee was $ 6,875 and the total interest expense is $ 94,600 for a total loan cost of $ 101,475 . Warrant Exercise On June 16, 2026, a private investor exercised a warrant to purchase 8,278 shares of common stock at $ 3.02 per share, resulting in gross proceeds of $ 25,000 . TA Pipeline Arbitration As described in Note 13 - Commitments and Contingencies, as of May 31, 2026, the Company and the former TA Members were engaged in discussions to resolve the dispute concerning the Put Option. The parties most recent communication occurred on June 17, 2026, and did not result in a resolution. On July 14, 2026, subsequent to the end of the period covered by this report, the Company received a Demand for Arbitration filed with the American Arbitration Association (the “AAA”) under its Commercial Arbitration Rules by Luis Barberi, Mitch Toren, and Ashish Tembe, the former TA Members (collectively, the “Claimants”), naming the Company as respondent. In the accompanying Statement of Claim, the Claimants assert a single count for breach of contract, alleging that the Company failed to honor its obligation under Section 7.5(a)(i) of the TA MIPA to repurchase all 96,774 TA Closing Shares at the Base Price of $3.10 per share following the Claimants' exercise notice delivered on February 24, 2026. The Claimants seek damages of not less than $299,999.40 (96,774 shares at the $3.10 Base Price), together with attorneys' fees, pre-judgment and post-judgment interest, and arbitration costs. The arbitration is to be conducted in Las Vegas, Nevada, and the Claimants have requested that the matter be placed on an expedited track. The Company believes the former TA Members are in breach of their obligations under the TA MIPA, believes it has meritorious defenses, and intends to vigorously defend against the claims and to assert any available counterclaims relating to the TA Members' alleged breach. The arbitration remains in its earliest stage, and the Company is unable at this time to predict its outcome or to reasonably estimate the amount or range of any possible loss. The maximum aggregate cash exposure under the Put Option, if ultimately determined adverse to the Company, would be approximately $300,000 (96,774 shares at the $3.10 Base Price), exclusive of any interest, attorneys' fees, costs, and any Top-Up Shares that could be issuable. The 96,774 TA Closing Shares continue to be classified as mezzanine equity at their carrying value of $387,000. No liability has been recorded with respect to the Put Option or the arbitration, and no adjustment to the carrying value of the TA Closing Shares has been made, because the Company has concluded that a loss is not probable and reasonably estimable as of the date of this report. 34