Netcapital Announces First Quarter Fiscal 2025 Financial Results
Netcapital Inc. (NCPL) reported challenging Q1 fiscal 2025 results, with revenue decreasing 91% year-over-year to $142,227. The company's total funding portal revenues dropped 62% to $142,056. Netcapital faced an operating loss of ($2,508,237), up 235% from the previous year, and a net loss of ($2,527,170), a 414% increase. Loss per share rose 11% to ($5.10).
Despite financial setbacks, CEO Martin Kay highlighted strategic moves, including Netcapital Securities Inc.'s application for broker-dealer registration with FINRA and the beta launch of a secondary trading platform through Templum ATS. These initiatives aim to expand revenue opportunities and enhance investor liquidity, subject to regulatory approvals.
Netcapital Inc. (NCPL) ha riportato risultati difficili nel primo trimestre fiscale 2025, con un fatturato che è diminuito del 91% rispetto all'anno precedente, scendendo a $142.227. Le entrate totali dal portale di funding dell'azienda sono calate del 62%, arrivando a $142.056. Netcapital ha registrato una perdita operativa di ($2.508.237), in aumento del 235% rispetto all'anno precedente, e una perdita netta di ($2.527.170), con un incremento del 414%. La perdita per azione è aumentata dell'11%, raggiungendo ($5,10).
Nonostante le difficoltà finanziarie, il CEO Martin Kay ha evidenziato mosse strategiche, tra cui la richiesta di registrazione come broker-dealer di Netcapital Securities Inc. presso la FINRA e il lancio beta di una piattaforma di trading secondario tramite Templum ATS. Queste iniziative mirano ad ampliare le opportunità di ricavo e migliorare la liquidità per gli investitori, soggette ad approvazioni regolamentari.
Netcapital Inc. (NCPL) reportó resultados desafiantes en el primer trimestre del año fiscal 2025, con ingresos que disminuyeron un 91% interanual, alcanzando $142,227. Los ingresos totales del portal de financiamiento de la compañía cayeron un 62%, sumando $142,056. Netcapital enfrentó una pérdida operativa de ($2,508,237), un incremento del 235% en comparación con el año anterior, y una pérdida neta de ($2,527,170), lo que representa un aumento del 414%. La pérdida por acción subió un 11%, hasta ($5.10).
A pesar de los reveses financieros, el CEO Martin Kay destacó movimientos estratégicos, incluida la solicitud de registro como corredor-dealer de Netcapital Securities Inc. ante la FINRA y el lanzamiento beta de una plataforma de negociación secundaria a través de Templum ATS. Estas iniciativas buscan ampliar las oportunidades de ingresos y mejorar la liquidez para los inversores, sujetas a aprobaciones regulatorias.
넷캐피탈 Inc.(NCPL)은 2025 회계연도 1분기 어렵고 도전적인 결과를 보고했습니다. 매출이 전년 대비 91% 감소하여 $142,227에 그쳤습니다. 회사의 총 펀딩 포털 매출은 62% 하락하여 $142,056에 이릅니다. 넷캐피탈은 운영 손실로 ($2,508,237)를 기록했으며, 이는 전년 대비 235% 증가한 수치입니다. 또한, 순손실은 ($2,527,170)으로 414% 급증했습니다. 주당 손실은 11% 증가하여 ($5.10)가 되었습니다.
재정적 어려움 속에서도 CEO 마르틴 케이는 넷캐피탈 증권 Inc.의 FINRA에 대한 중개인 등록 신청 및 템플럼 ATS를 통한 2차 거래 플랫폼의 베타 출범 등 전략적 조치를 강조했습니다. 이러한 이니셔티브는 수익 기회를 확대하고 투자자의 유동성을 향상시키기 위해 규제 승인을 받을 예정입니다.
Netcapital Inc. (NCPL) a rapporté des résultats difficiles pour le premier trimestre de l'exercice 2025, avec des revenus en baisse de 91 % d'une année sur l'autre, atteignant 142 227 $. Les revenus totaux du portail de financement de l'entreprise ont chuté de 62 % pour s'élever à 142 056 $. Netcapital a subi une perte d'exploitation de ($2 508 237), soit une augmentation de 235 % par rapport à l'année précédente, et une perte nette de ($2 527 170), soit une augmentation de 414 %. La perte par action a augmenté de 11 % pour atteindre ($5,10).
Malgré ces reculs financiers, le PDG Martin Kay a mis en avant des mouvements stratégiques, notamment la demande d'enregistrement en tant que courtier-négociant de Netcapital Securities Inc. auprès de la FINRA et le lancement bêta d'une plateforme de négociation secondaire via Templum ATS. Ces initiatives visent à élargir les opportunités de revenus et à améliorer la liquidité des investisseurs, sous réserve d'approbations réglementaires.
Netcapital Inc. (NCPL) meldete herausfordernde Ergebnisse für das erste Quartal des Geschäftsjahres 2025, mit einem Umsatzrückgang von 91% im Vergleich zum Vorjahr auf $142.227. Die Gesamteinnahmen des Funding-Portals des Unternehmens sanken um 62% auf $142.056. Netcapital verzeichnete einen operative Verlust von ($2.508.237), was einem Anstieg von 235% gegenüber dem Vorjahr entspricht, und einen Nettoverlust von ($2.527.170), also ein Anstieg von 414%. Der Verlust pro Aktie stieg um 11% auf ($5,10).
Trotz finanzieller Rückschläge hob CEO Martin Kay strategische Maßnahmen hervor, darunter die Beantragung der Broker-Dealer-Registrierung von Netcapital Securities Inc. bei der FINRA und den Beta-Start einer sekundären Handelsplattform über Templum ATS. Diese Initiativen zielen darauf ab, die Einnahmemöglichkeiten zu erweitern und die Liquidität für Anleger zu verbessern, vorbehaltlich regulatorischer Genehmigungen.
- Netcapital Securities Inc. applied for broker-dealer registration with FINRA, potentially expanding revenue opportunities
- Beta version of a secondary trading platform launched through Templum ATS, aiming to provide liquidity for investors
- Revenue decreased 91% year-over-year to $142,227
- Total funding portal revenues dropped 62% to $142,056
- Operating loss increased 235% to ($2,508,237)
- Net loss grew 414% to ($2,527,170)
- Loss per share rose 11% to ($5.10)
- Cash and cash equivalents stood at $855,181 as of July 31, 2024
Insights
Netcapital's Q1 FY2025 results paint a grim picture. The
While management highlights potential future opportunities like broker-dealer registration and a beta secondary trading platform, these are speculative and subject to regulatory approvals. The cash position of
The dramatic revenue decline suggests significant market headwinds for Netcapital's business model. The
- Broader economic uncertainties affecting private investments
- Increased competition in the digital private capital markets space
- Potential shift in investor sentiment towards more established or public markets
Netcapital's regulatory landscape is complex and uncertain. The company's plans hinge on critical approvals:
- FINRA and SEC approval for broker-dealer registration
- Regulatory clearance for the secondary trading platform
- Management to Host Earnings Call on September 17, 2024 at 11:00 a.m. ET
BOSTON, MA, Sept. 16, 2024 (GLOBE NEWSWIRE) -- Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced financial results for the first quarter of fiscal year 2025 ended July 31, 2024.
“This was a challenging quarter for us, driven primarily by a decrease in revenues for services that we provide in exchange for equity securities,” said Martin Kay, CEO of Netcapital Inc. “However, we have taken what we believe are important steps to lay the groundwork for future opportunities. In May 2024, for example, we announced that our wholly-owned subsidiary, Netcapital Securities Inc. applied for broker-dealer registration with the Financial Industry Regulatory Authority (“FINRA”). We believe that by having a registered broker-dealer, it could create opportunities to expand our revenue base by hosting and generating additional fees from Reg A+ and Reg D offerings on the Netcapital platform. In addition, in July 2024, we announced the launch of our beta version of a secondary trading platform through the Templum ATS to a closed group of users. This secondary trading platform has been designed to provide investors who purchase stock through the Netcapital funding portal with the potential for secondary trading through access to the Templum ATS.”
The operation of the Templum ATS remains subject to extensive regulation and oversight. Any regulatory delays or objections will result in delays in our ability to launch the proposed secondary trading platform, if at all.
Netcapital Securities Inc.’s application to become a registered broker-dealer remains subject to regulatory approval and/or licensing from the Financial Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC). No assurance can be given as to when or if such approvals may be granted or when, if at all, Netcapital will be able to expand the services it offers.
First Quarter Fiscal 2025 Financial Highlights
- Revenue decreased approximately
91% year-over-year to$142,227 , compared to revenue of$1,519,809 million in the first quarter of fiscal year 2024. - Total funding portal revenues (consisting of portal fees, listing fees and a
1% equity fee) decreased approximately62% year-over-year to$142,056 compared to$375,856 in the first quarter of fiscal 2024. - Operating loss of (
$2,508,237) for the first quarter fiscal 2025 as compared to ($749,020) for the first quarter fiscal 2024, an increase of235% - Net loss of (
$2,527,170) in the first quarter fiscal 2025, compared to net loss of ($491,655) , for the same period in the prior year, an increase of414% - Loss per share of (
$5.10) in the first quarter year ended July 31, 2024, increased approximately11% compared to loss per share of ($4.61) for the same period in the prior year. - As of July 31, 2024, the Company had cash and cash equivalents of
$855,181.
Conference Call Information
The Company will host an investor conference call on Tuesday, September 17, 2024, at 11:00 a.m. ET.
Participant access: 844-985-2012 or 973-528-0138
Conference entry code: 844301
For additional disclosure regarding Netcapital’s operating results, please refer to the Quarterly Report on Form 10-Q for the period ended July 31, 2024, which has been filed with the Securities and Exchange Commission.
About Netcapital Inc.
Netcapital Inc. is a fintech company with a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to investors. The Company's consulting group, Netcapital Advisors, provides marketing and strategic advice and takes equity positions in select companies. The Company’s funding portal, Netcapital Funding Portal, Inc. is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), a registered national securities association.
Forward Looking Statements
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Investor Contact
800-460-0815
ir@netcapital.com
NETCAPITAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| July 31, 2024 (Unaudited) | April 30, 2024 (Audited) | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 855,181 | $ | 863,182 | ||||
| Accounts receivable net | - | 134,849 | ||||||
| Note receivable | 20,000 | 20,000 | ||||||
| Interest receivable | 1,600 | 1,200 | ||||||
| Prepaid expenses | 48,160 | 23,304 | ||||||
| Total current assets | 924,941 | 1,042,535 | ||||||
| Deposits | 6,300 | 6,300 | ||||||
| Notes receivable - related parties | 202,000 | 202,000 | ||||||
| Purchased technology, net | 14,724,136 | 14,733,005 | ||||||
| Investment in affiliate | 240,080 | 240,080 | ||||||
| Equity securities | 25,343,513 | 25,333,386 | ||||||
| Total assets | $ | 41,440,970 | $ | 41,557,306 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,180,487 | $ | 793,325 | ||||
| Accrued expenses | 236,758 | 310,300 | ||||||
| Deferred revenue | 445 | 466 | ||||||
| Interest payable | 94,703 | 92,483 | ||||||
| Current portion of SBA loans | 1,885,800 | 1,885,800 | ||||||
| Loan payable - bank | 34,324 | 34,324 | ||||||
| Total current liabilities | 3,432,517 | 3,116,698 | ||||||
| Long-term liabilities: | ||||||||
| Long-term SBA loans, less current portion | 500,000 | 500,000 | ||||||
| Total liabilities | 3,932,517 | 3,616,698 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $.001 par value; 900,000,000 shares authorized, 579,153 and 326,867 shares issued and outstanding | 579 | 327 | ||||||
| Shares to be issued | 122,264 | 122,124 | ||||||
| Capital in excess of par value | 39,433,217 | 37,338,594 | ||||||
| Retained earnings (deficit) | (2,047,607 | ) | 479,563 | |||||
| Total stockholders’ equity | 37,508,453 | 37,940,608 | ||||||
| Total liabilities and stockholders’ equity | $ | 41,440,970 | $ | 41,557,306 | ||||
NETCAPITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended | Three Months Ended | |||||||
| July 31, 2024 | July 31, 2023 | |||||||
| Revenues | $ | 142,227 | $ | 1,519,809 | ||||
| Costs of services | 10,220 | 18,053 | ||||||
| Gross profit | 132,007 | 1,501,756 | ||||||
| Costs and expenses: | ||||||||
| Consulting expense | 97,381 | 163,942 | ||||||
| Marketing | 6,898 | 241,888 | ||||||
| Rent | 19,116 | 19,610 | ||||||
| Payroll and payroll related expenses | 1,136,593 | 1,037,042 | ||||||
| General and administrative costs | 1,380,256 | 788,294 | ||||||
| Total costs and expenses | 2,640,244 | 2,250,776 | ||||||
| Operating loss | (2,508,237 | ) | (749,020 | ) | ||||
| Other income (expense): | ||||||||
| Interest expense | (10,464 | ) | (13,304 | ) | ||||
| Amortization of intangible assets | (8,869 | ) | (28,331 | ) | ||||
| Other income | 400 | - | ||||||
| Total other income (expense) | (18,933 | ) | (41,635 | ) | ||||
| Net loss before taxes | (2,527,170 | ) | (790,655 | ) | ||||
| Income tax expense (benefit) | - | (299,000 | ) | |||||
| Net loss | $ | (2,527,170 | ) | $ | (491,655 | ) | ||
| Basic loss per share | $ | (5.10 | ) | $ | (4.61 | ) | ||
| Diluted loss per share | $ | (5.10 | ) | $ | (4.61 | ) | ||
| Weighted average number of common shares outstanding: | ||||||||
| Basic | 495,319 | 106,732 | ||||||
| Diluted | 495,319 | 106,732 | ||||||
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