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Related Party Transactions
 9 Months Ended
Nov. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 5 - Related Party Transactions

 

On February 29, 2024, NextTrip Holdings, Inc., a wholly owned subsidiary of the Company, issued an unsecured promissory note, in the principal amount of $391,776.54 to William Kerby, to memorialize the terms and conditions of certain working capital advances made by Mr. Kerby to NextTrip. The promissory note accrues interest at a rate equal to 7.5% simple interest per annum, and will automatically mature and become due and payable in full on February 28, 2025, subject to certain limited exceptions. The promissory note, or any portion thereof, may be prepaid by NextTrip Holdings, Inc. without any penalty. Mr. Kerby serves as Chief Executive Officer of both the Company and NextTrip. The promissory note was approved by the Company’s Board of Directors, including all independent members thereof. As of November 30, 2024, the total principal amount outstanding under this note was $348,109.

 

 

On March 18, 2024, the Company’s wholly-owned subsidiary, NTH, entered into an unsecured promissory note for a line of credit with Donald Monaco and William Kerby, the Company’s Chairman of the board of directors and Chief Executive Officer, respectively, for the aggregate principal amount of $500,000 with an initial advance of $125,000, provided that the aggregate principal amount of the note does not exceed $500,000 at any time. Under the terms of the note, advances under the line of credit may be made at the Company’s request until August 31, 2024. The note bears an annual interest rate of 7.5% and matures on February 28, 2025, and may be prepaid by the Company at any time prior to maturity without penalty. As of November 30, 2024, the full principal amount of the note had been advanced to the Company and was outstanding.

 

On April 23, 2024, the Company’s board of directors approved the Company’s wholly-owned subsidiary, NextTrip, to enter into a series of unsecured promissory notes with certain related parties, including investors, directors, officers and employees, who may individually provide funds for the aggregate principal amount of $1,000,000. The notes bear an annual interest rate of 7.5% and shall mature one year from the date of each note’s execution, and may be prepaid by the Company at any time prior to maturity without penalty. On August 14, 2024, at a joint meeting of the Audit Committee and the board of directors, the directors unanimously approved an increase in the principal amount of the related party line of credit to $2,000,000 on the same terms and conditions as previously approved. As of November 30, 2024, the total principal amount advanced under the line of credit was $1,717,296.

 

On May 21, 2024, NextTrip issued an unsecured promissory note in the principal amount of $455,000 to Mr. Monaco to memorialize the terms and conditions of certain working capital advances made by Mr. Monaco to NextTrip. As of November 30, 2024, the outstanding principal balance of the promissory note was $405,000. The promissory note accrues interest at a rate equal to 7.5% simple interest per annum, and will automatically mature and become due and payable in full on February 28, 2025, subject to certain limited exceptions. The promissory note, or any portion thereof, may be prepaid by NextTrip without any penalty. Mr. Monaco serves as Chairman of the Company’s board of directors. The promissory note was approved by the Company’s Board of Directors, including the independent members thereof.

 

The following table summarizes the principal amounts outstanding by promissory note date and related party as of November 30, 2024:

 

Promissory Note Date   Name   Title   Principal Amount
Outstanding at
November 30, 2024
February 29, 2024   William Kerby   Chief Executive Officer   $ 348,109  
                 
March 18, 2024   William Kerby   Chief Executive Officer   $ 225,000  
    Donald P. Monaco   Chairman   $ 275,000  
            $ 500,000  
                 
April 23, 2024   William Kerby   Chief Executive Officer   $ 21,515  
    Donald P. Monaco   Chairman   $ 1,605,000  
    Gregory Miller   Executive Vice-President   $ 90,781  
            $ 1,717,296  
                 
May 21, 2024   Donald P. Monaco   Chairman   $ 405,000  
                 
Total           $ 2,970,405  

 

The total amounts due to related parties at November 30, 2024 and February 29, 2024 totaled $2,970,405 (as provided in the table above) and $828,277, respectively.