季報
季度報告
10-Q
2026-07-15
NextTrip首季收入飆升近10倍至145萬美元 虧損收窄惟現金消耗加速
AI 繁中摘要
📄 **NextTrip（NTRP）2027財年第一季度10-Q摘要（截至2026年5月31日）**
**申報類型**：10-Q（季度報告）
**業績亮點**：
- 收入大幅增長至 **145萬美元**，較去年同期的13.9萬美元激增近10倍，主要受旅遊與媒體業務擴張帶動。
- 淨虧損縮窄至 **312.5萬美元**（去年同期445.7萬美元），每股虧損 **0.22美元**（去年同期0.68美元），虧損改善但仍未轉盈。
- 總資產約 **1,232萬美元**，現金及現金等價物降至 **80.3萬美元**（2月底為169.6萬美元），現金消耗加速。
**業務發展與收購**：
- 完成收購 **FSA Travel LLC** 剩餘51%股權、**JOURNY.tv** 資產及 **TA Pipeline LLC**，推動收入結構轉向旅遊+媒體雙引擎。
- 發行 **Series B可轉換優先股** 及認股權證，籌資約 **150萬美元**，並以股票支付部分收購對價。
- 衍生負債（Put Option）公允價值減至 **3萬美元**，或有對價升至 **19萬美元**。
**營運與現金流**：
- 營運現金流出 **234.3萬美元**，投資活動流出 **23.8萬美元**（主要用於軟體開發）。
- 融資活動淨流入 **168.8萬美元**（優先股、關聯方票據及夾層權益發行）。
- 截至5月底，累計虧損達 **5,374萬美元**，工作資金缺口擴大至 **160萬美元**。
**持續經營疑慮**：
管理層明確指出，公司累計虧損龐大、現金儲備有限，需於未來12個月內透過股權或債務融資籌集額外資金，否則可能面臨業務縮減或破產保護。這構成 **重大持續經營不確定性**（Going Concern）。
**對投資者的潛在影響**：
- 收入增長正面，但盈利能力仍未改善，燒錢速度加快，依賴外部融資支撐。
- 頻繁收購及股權融資導致大量股份發行（已發行普通股約1,440萬股），攤薄現有股東權益。
- 複雜的優先股、認股權證及或有對價結構增加財務報表分析難度。
- 若無法成功融資，股價及公司存續風險顯著。短期內股價波動可能較大，投資者需密切關注融資進展及現金流狀況。
**評級**：⚠️ 高風險成長股，收入增長亮眼但財務穩健性存疑，適合能承受高波動及潛在稀釋的投資者。
展開英文正文
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NTRP:ShortTermPromissoryNotesMember 2026-07-01 2026-07-01 0000788611 us-gaap:SubsequentEventMember us-gaap:CommonStockMember us-gaap:InvestorMember 2026-06-16 0000788611 us-gaap:SubsequentEventMember us-gaap:CommonStockMember 2026-06-16 0000788611 us-gaap:SubsequentEventMember us-gaap:CommonStockMember 2026-06-16 2026-06-16 0000788611 us-gaap:SubsequentEventMember 2026-07-14 2026-07-14 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure utr:sqft UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2026 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-38015 NEXTTRIP, INC. (Exact name of registrant as specified in its charter) nevada 27-1865814 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 1560 Sawgrass Corporate Parkway, Suite 400 Sunrise, Florida 33323 (Address of principal executive offices) (954) 526-9688 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol Name of each exchange on which registered Common Stock, par value $0.001 per share NTRP The NASDAQ Stock Market LLC Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated Filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of July 14, 2026, the issuer had 14,919,927 shares of common stock outstanding, inclusive of 96,774 shares of common stock classified as mezzanine equity. NEXTTRIP, INC. FORM 10-Q TABLE OF CONTENTS PART I - FINANCIAL INFORMATION 3 ITEM 1. FINANCIAL STATEMENTS 3 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 35 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 58 ITEM 4. CONTROLS AND PROCEDURES 58 PART II - OTHER INFORMATION 60 ITEM 1. LEGAL PROCEEDINGS 60 ITEM 1A. RISK FACTORS 60 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. 60 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 62 ITEM 4. MINE SAFETY DISCLOSURES 62 ITEM 5. OTHER INFORMATION 62 ITEM 6. EXHIBITS 62 SIGNATURES 63 2 PART I. FINANCIAL INFORMATION 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.