The company currently undertakes its operations through a single cruise vessel, the 'MV Empress'. Any disruption to this vessel, whether due to mechanical failure, accidents or other unforeseen events, could lead to operational disruptions, lost revenue, repair costs and legal liabilities, materially and adversely affecting its business, financial condition and cash flows.

A significant portion of the company's revenue is derived from cruise ticket sales, which accounted for 91.22%, 89.53% and 87.45% of revenue from operations in Fiscals 2026, 2025 and 2024, respectively. Any decline in cruise ticket sales due to economic downturns, competition, changing consumer preferences or geopolitical uncertainties could adversely impact its business and financial performance.

The company operates as the vessel operating entity, while the vessel owning entity is Bay Cruise Investments Inc. ('Bay Cruise'), its wholly-owned Subsidiary incorporated in the British Virgin Islands. Any legal, financial or regulatory issues faced by Bay Cruise, or any changes in the regulatory or tax environment affecting BVI entities, could indirectly impact the company's business and operations.

The company's growth strategy relies heavily on the acquisition of new vessels to expand its operations. On April 11, 2025, it entered into two time charter agreements to lease two new cruise vessels, 'Norwegian Sky' and 'Norwegian Sun', each with passenger capacity of up to 2,004 and 1,936 guests respectively, which it intends to introduce by Fiscal 2027 and Fiscal 2028. Any inability to expand operations by acquiring new vessels could significantly impact its business and growth prospects.

The company's Statutory Auditors have included certain adverse remarks, emphasis of matters and qualifications in their auditor's report. In particular, the auditor's report for Fiscal 2024 included a remark pertaining to the material uncertainty related to going concern, which may affect investor confidence and the company's financial standing.

The company currently operates a single cruise vessel, the 'MV Empress', with a passenger capacity of 2,005 guests, and has acquired two new cruise vessels on lease, namely 'Norwegian Sky' and 'Norwegian Sun', each with capacity of up to 2,004 and 1,936 guests respectively, to be introduced by Fiscal 2027 and Fiscal 2028. The company is exposed to the risk of overcapacity, and any increase in cruise capacity without a corresponding increase in demand could adversely impact its business and results of operations.

The company's cruise operations depend on limited third-party service providers for critical services and amenities, including technical and crew management, hospitality management, general purchasing and logistics management, and entertainment. Any disruption in the services offered by these third-party service providers may adversely impact its business, financial condition and cash flows.

The company was incorporated on November 2, 2020 and its cruise operations commenced only from September 16, 2021, and therefore it has a limited operating history. Its historical financial and operational performance may not be indicative of its future growth or financial results, making it difficult to evaluate prospects.

The company's inability to ensure high cruise occupancy rates could result in significant financial losses. Its passenger load factor (calculated as actual number of passengers carried to total passenger capacity over a period) was 84.99%, 91.63% and 78.54% in Fiscals 2026, 2025 and 2024, respectively, and any decline could adversely impact its business and cash flows.

The company has, in the past, entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders. The aggregate amount of related party transactions as a percentage of revenue from operations was 2.37%, 14.36% and 19.72% in Fiscals 2026, 2025 and 2024, respectively.