Netcapital Announces Full Year Fiscal 2024 Financial Results
Netcapital Inc. (NCPL) reported its full fiscal year 2024 financial results, showing mixed performance. While overall revenues decreased by 42% to $4.9 million, portal fees surged by 109% to $874,368. The company faced challenges, reporting an operating loss of $3,442,388 and a net loss of $4,986,317, compared to profits in the previous year. Loss per share was $0.41, down from earnings of $0.63 in fiscal 2023. Netcapital also recorded an impairment loss of $1,048,430. Despite these setbacks, CEO Martin Kay expressed optimism about the future, citing significant growth in key areas amidst a challenging economic environment. The company will host an investor conference call on July 30, 2024, to discuss these results further.
Netcapital Inc. (NCPL) ha riportato i risultati finanziari per l'intero anno fiscale 2024, mostrando performance miste. Mentre i ricavi complessivi sono diminuiti del 42% a 4,9 milioni di dollari, le commissioni del portale sono aumentate del 109% a 874.368 dollari. L'azienda ha affrontato delle difficoltà, riportando una perdita operativa di 3.442.388 dollari e una perdita netta di 4.986.317 dollari, rispetto ai profitti dell'anno precedente. La perdita per azione è stata di 0,41 dollari, in calo rispetto agli utili di 0,63 dollari nell'anno fiscale 2023. Netcapital ha anche registrato una perdita da svalutazione di 1.048.430 dollari. Nonostante questi ostacoli, il CEO Martin Kay ha espresso ottimismo riguardo al futuro, citando una crescita significativa in aree chiave in un contesto economico difficile. L'azienda ospiterà una conferenza telefonica per gli investitori il 30 luglio 2024, per discutere ulteriormente di questi risultati.
Netcapital Inc. (NCPL) reportó sus resultados financieros para el año fiscal 2024, mostrando un rendimiento mixto. Mientras que los ingresos generales disminuyeron un 42% a 4,9 millones de dólares, las comisiones del portal aumentaron un 109% a 874,368 dólares. La compañía enfrentó desafíos, reportando una pérdida operativa de 3,442,388 dólares y una pérdida neta de 4,986,317 dólares, en comparación con las ganancias del año anterior. La pérdida por acción fue de 0,41 dólares, en comparación con ganancias de 0,63 dólares en el año fiscal 2023. Netcapital también registró una pérdida por deterioro de 1,048,430 dólares. A pesar de estos contratiempos, el CEO Martin Kay expresó optimismo sobre el futuro, citando un crecimiento significativo en áreas clave en medio de un entorno económico desafiante. La empresa realizará una conferencia telefónica para inversores el 30 de julio de 2024, para discutir más a fondo estos resultados.
Netcapital Inc. (NCPL)은 2024 회계 연도 전체 재무 결과를 보고하며 혼합된 성과를 나타냈습니다. 전체 수익은 42% 감소하여 490만 달러에 달하는 반면, 포털 수수료는 109% 증가하여 874,368 달러에 달했습니다. 회사는 어려움을 겪었고, 3,442,388 달러의 운영 손실과 4,986,317 달러의 순손실을 보고했습니다. 이는 전년도의 이익과 비교됩니다. 주당 손실은 0.41 달러로, 2023 회계연도의 0.63 달러의 이익에서 감소했습니다. Netcapital은 또한 1,048,430 달러의 자산 손상 손실을 기록했습니다. 이러한 어려움에도 불구하고, CEO 마틴 케이(Martin Kay)는 도전적인 경제 환경 속에서 주요 영역에서의 значительная рост в развитии. 회사는 2024년 7월 30일에 투자자 회의를 열어 이러한 결과에 대해 더 논의할 예정입니다.
Netcapital Inc. (NCPL) a publié ses résultats financiers pour l'exercice fiscal 2024, montrant une performance mitigée. Alors que les revenus globaux ont diminué de 42% pour atteindre 4,9 millions de dollars, les frais de portail ont augmenté de 109% pour s'élever à 874 368 dollars. L'entreprise a rencontré des défis, signalant une perte opérationnelle de 3 442 388 dollars et une perte nette de 4 986 317 dollars, par rapport aux bénéfices de l'année précédente. La perte par action était de 0,41 dollar, en baisse par rapport aux bénéfices de 0,63 dollar pour l'exercice 2023. Netcapital a également enregistré une perte de valeur de 1 048 430 dollars. Malgré ces revers, le PDG Martin Kay a exprimé son optimisme quant à l'avenir, citant une croissance significative dans des domaines clés dans un environnement économique difficile. L'entreprise organisera une conférence téléphonique pour les investisseurs le 30 juillet 2024, afin de discuter plus en détail de ces résultats.
Netcapital Inc. (NCPL) berichtete über die finanziellen Ergebnisse des gesamten Geschäftsjahres 2024 und zeigte gemischte Leistungen. Während die Gesamterlöse um 42% auf 4,9 Millionen Dollar sanken, stiegen die Portalgebühren um 109% auf 874.368 Dollar. Das Unternehmen sah sich Herausforderungen gegenüber, berichtete von einem Betriebsverlust von 3.442.388 Dollar und einem Nettoloss von 4.986.317 Dollar, verglichen mit Gewinnen im Vorjahr. Der Verlust pro Aktie betrug 0,41 Dollar, ein Rückgang von 0,63 Dollar im Geschäftsjahr 2023. Netcapital verzeichnete auch einen Wertminderungsverlust von 1.048.430 Dollar. Trotz dieser Rückschläge äußerte CEO Martin Kay Optimismus für die Zukunft und verwies auf erhebliches Wachstum in wichtigen Bereichen in einem herausfordernden wirtschaftlichen Umfeld. Das Unternehmen wird am 30. Juli 2024 eine Investorenkonferenz abhalten, um diese Ergebnisse weiter zu erörtern.
- Portal fees increased by 109% year-over-year to $874,368
- Cash and cash equivalents of $863,182 as of April 30, 2024
- Revenues decreased by 42% year-over-year to $4.9 million
- Operating loss of $3,442,388 compared to operating income of $2,271,876 in previous year
- Net loss of $4,986,317 compared to net income of $2,954,972 in previous year
- Loss per share of $0.41 compared to earnings per share of $0.63 in previous year
- Impairment loss of $1,048,430 recorded in fiscal year 2024
Insights
Netcapital's fiscal 2024 results paint a challenging picture, with significant declines in both revenue and profitability. The 42% year-over-year revenue decrease to
However, it's not all doom and gloom. The 109% increase in portal fees to
The
With cash and cash equivalents of
Overall, while the portal fee growth is encouraging, the company's ability to manage costs and return to profitability will be important for its long-term viability in the competitive digital capital markets space.
Netcapital's performance in fiscal 2024 reflects broader trends in the private capital markets ecosystem. The substantial revenue decline of
However, the impressive growth in portal fees (
The company's transition from profitability to a significant loss (
Looking ahead, Netcapital's ability to capitalize on the growing interest in private markets, as evidenced by the portal fee increase, while managing costs effectively, will be key to its recovery. The upcoming earnings call should provide valuable insights into management's strategy for navigating these challenges and leveraging opportunities in the evolving digital private capital landscape.
- Management to Host Earnings Call on July 30, 2024 at 11 a.m. ET
BOSTON, MA, July 29, 2024 (GLOBE NEWSWIRE) -- Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced select financial results for the full fiscal year 2024 ended April 30, 2024.
"We saw significant growth in key areas despite a challenging economic environment,” said Martin Kay, CEO of Netcapital Inc. “While there were decreases in both top and bottom line, we remain optimistic about the future, particularly with portal fees increasing over
Full Year Fiscal 2024 Financial Highlights
- Revenues decreased by approximately
42% year-over-year to$4.9 million , compared to revenue of$8.5 million for full fiscal year 2023. - Revenue from portal fees increased by approximately
109% year-over-year to$874,368 in the full fiscal year 2024 compared to$418,513 for full fiscal 2023. - As of April 30, 2024, the Company had cash and cash equivalents of
$863,182. - Operating loss of (
$3,442,388) for full fiscal year 2024 as compared to operating income of$2,271,876 for full fiscal year 2023 - Net loss for the full fiscal year 2024 was (
$4,986,317) in the full fiscal year 2024, as compared to net income of$2,954,972 for fiscal year 2023 - Loss per share of (
$0.41) in the full fiscal year 2024, were down compared to earnings per share of$0.63 for the full fiscal year 2023. - The Company recorded an impairment loss of
$1,048,430 in fiscal year 2024.
For additional disclosure regarding Netcapital’s operating results, please refer to the Annual Report on Form 10-K for the period ended April 30, 2024, which has been filed with the Securities and Exchange Commission.
Conference Call Information
The Company will host an investor conference call on Tuesday, July 30th, 2024, at 11 a.m. ET.
Participant access: 844-985-2012 or 973-528-0138
Conference entry code: 861716
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. Consolidated Statements of Operations
| Year Ended | Year Ended | |||||||
| April 30, 2024 | April 30, 2023 | |||||||
| Revenues | $ | 4,951,435 | $ | 8,493,985 | ||||
| Costs of services | 108,060 | 85,038 | ||||||
| Gross profit | 4,843,375 | 8,408,947 | ||||||
| Costs and expenses: | ||||||||
| Consulting expense | 610,209 | 589,349 | ||||||
| Marketing | 333,771 | 85,482 | ||||||
| Rent | 76,117 | 75,052 | ||||||
| Payroll and payroll related expenses | 3,838,640 | 3,646,490 | ||||||
| General and administrative costs | 3,427,026 | 1,740,698 | ||||||
| Total costs and expenses | 8,285,763 | 6,137,071 | ||||||
| Operating income (loss) | (3,442,388 | ) | 2,271,876 | |||||
| Other income (expense): | ||||||||
| Interest expense | (45,990 | ) | (93,842 | ) | ||||
| Gain on debt conversion | - | 224,260 | ||||||
| Amortization of intangible assets | (93,862 | ) | (96,407 | ) | ||||
| Impairment expense | (1,048,430 | ) | - | |||||
| Other income | 1,200 | 51,645 | ||||||
| Unrealized gain (loss) on equity securities | (2,696,135 | ) | 1,857,500 | |||||
| Realized loss on sale of investment | - | (406,060 | ) | |||||
| Total other income (expense) | (3,883,217 | ) | 1,537,096 | |||||
| Net income (loss) before taxes | (7,325,605 | ) | 3,808,972 | |||||
| Income tax expense (benefit) | (2,339,288 | ) | 854,000 | |||||
| Net income (loss) | $ | (4,986,317 | ) | $ | 2,954,972 | |||
| Basic earnings (loss) per share | $ | (0.41 | ) | $ | 0.63 | |||
| Diluted earnings (loss) per share | $ | (0.41 | ) | $ | 0.63 | |||
| Weighted average number of common shares outstanding: | ||||||||
| Basic | 12,105,577 | 4,677,214 | ||||||
| Diluted | 12,105,577 | 4,677,464 | ||||||
Netcapital Inc. Consolidated Balance Sheets
| April 30, 2024 | April 30, 2023 | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 863,182 | $ | 569,441 | ||||
| Accounts receivable net | 134,849 | 1,388,500 | ||||||
| Note receivable | 20,000 | - | ||||||
| Interest receivable | 1,200 | - | ||||||
| Prepaid expenses | 23,304 | 583,030 | ||||||
| Total current assets | 1,042,535 | 2,540,971 | ||||||
| Deposits | 6,300 | 6,300 | ||||||
| Notes receivable - related parties | 202,000 | 202,000 | ||||||
| Purchased technology, net | 14,733,005 | 15,875,297 | ||||||
| Investment in affiliate | 240,080 | 240,080 | ||||||
| Equity securities | 25,333,386 | 22,955,445 | ||||||
| Total assets | $ | 41,557,306 | $ | 41,820,093 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | ||||||||
| Trade | $ | 793,325 | $ | 578,331 | ||||
| Related party | - | 75,204 | ||||||
| Accrued expenses | 310,300 | 285,065 | ||||||
| Stock subscription payable | - | 10,000 | ||||||
| Deferred revenue | 466 | 661 | ||||||
| Interest payable | 92,483 | 98,256 | ||||||
| Current taxes payable | - | 174,000 | ||||||
| Deferred tax liability, net | - | 1,657,000 | ||||||
| Related party debt | - | 15,000 | ||||||
| Secured note payable | - | 350,000 | ||||||
| Current portion of SBA loans | 1,885,800 | 1,885,800 | ||||||
| Loan payable - bank | 34,324 | 34,324 | ||||||
| Total current liabilities | 3,116,698 | 5,163,641 | ||||||
| Long-term liabilities: | ||||||||
| Long-term SBA loans, less current portion | 500,000 | 500,000 | ||||||
| Total liabilities | 3,616,698 | 5,663,641 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $.001 par value; 900,000,000 shares authorized, 22,880,680 and 6,440,527 shares issued and outstanding | 22,880 | 6,441 | ||||||
| Shares to be issued | 122,124 | 183,187 | ||||||
| Capital in excess of par value | 37,316,041 | 30,500,944 | ||||||
| Retained earnings | 479,563 | 5,465,880 | ||||||
| Total stockholders’ equity | 37,940,608 | 36,156,452 | ||||||
| Total liabilities and stockholders’ equity | $ | 41,557,306 | $ | 41,820,093 | ||||
FAQ
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