Netcapital Announces Second Quarter Fiscal 2025 Financial Results
Netcapital (NASDAQ: NCPL) reported Q2 FY2025 financial results showing significant revenue decline. Revenue decreased 92% year-over-year to $170,528 from $2.04 million, though showing a 20% increase from Q1 FY2025. The company reported an operating loss of ($2.2 million) compared to operating income of $52,220 in Q2 FY2024. Net loss was ($2.22 million) versus a profit of $339,616 last year, with loss per share of ($2.34).
Notable developments include Netcapital Securities receiving FINRA approval as a broker-dealer, enabling the company to support Reg A and Reg D offerings, facilitate larger fundraises, and establish fee-sharing agreements. Cash position stood at $1.35 million as of October 31, 2024.
Netcapital (NASDAQ: NCPL) ha riportato i risultati finanziari del Q2 FY2025 evidenziando un notevole calo dei ricavi. I ricavi sono diminuiti del 92% rispetto all'anno precedente, passando da 2,04 milioni di dollari a 170.528 dollari, anche se hanno mostrato un incremento del 20% rispetto al Q1 FY2025. L'azienda ha registrato una perdita operativa di (2,2 milioni di dollari) rispetto a un reddito operativo di 52.220 dollari nel Q2 FY2024. La perdita netta è stata di (2,22 milioni di dollari) rispetto a un profitto di 339.616 dollari dell'anno scorso, con una perdita per azione di (2,34 dollari).
Sviluppi notevoli includono l'approvazione da parte della FINRA di Netcapital Securities come intermediario, consentendo all'azienda di supportare le offerte Reg A e Reg D, facilitare raccolte fondi più consistenti e stabilire accordi di condivisione delle commissioni. La posizione di liquidità era di 1,35 milioni di dollari al 31 ottobre 2024.
Netcapital (NASDAQ: NCPL) reportó resultados financieros para el Q2 FY2025 que muestran un significativo descenso en los ingresos. Los ingresos disminuyeron un 92% interanual, de 2,04 millones de dólares a 170.528 dólares, aunque mostraron un aumento del 20% respecto al Q1 FY2025. La compañía reportó una pérdida operativa de (2,2 millones de dólares) en comparación con un ingreso operativo de 52.220 dólares en el Q2 FY2024. La pérdida neta fue de (2,22 millones de dólares), en comparación con una ganancia de 339.616 dólares el año pasado, con una pérdida por acción de (2,34 dólares).
Desarrollos notables incluyen la aprobación de Netcapital Securities por parte de FINRA como corredor-dealer, permitiendo a la empresa apoyar ofertas Reg A y Reg D, facilitar recaudaciones más grandes y establecer acuerdos de participación en comisiones. La posición de efectivo se situó en 1,35 millones de dólares al 31 de octubre de 2024.
Netcapital (NASDAQ: NCPL)은 FY2025 2분기 재무 결과를 발표하며 수익이 크게 감소했음을 보여주었습니다. 수익은 전년 대비 92% 감소하여 2.04 백만 달러에서 170,528 달러로 줄어들었으나 FY2025 1분기 대비 20% 증가했습니다. 회사는 FY2024 2분기 운영 소득 52,220 달러에 비해 (220만 달러)의 운영 손실을 기록했습니다. 순손실은 지난해 339,616 달러의 이익에 비해 (222만 달러)였으며, 주당 손실은 (2.34 달러)였습니다.
주목할 만한 발전에는 Netcapital Securities가 중개업자로서 FINRA의 승인을 받은 것이 포함되어 있으며, 이는 회사가 Reg A 및 Reg D 제안을 지원하고, 더 큰 자금 조달을 촉진하며, 수수료 공유 계약을 체결할 수 있도록 합니다. 현금 보유액은 2024년 10월 31일 기준으로 135만 달러였습니다.
Netcapital (NASDAQ: NCPL) a publié les résultats financiers du Q2 FY2025, montrant une baisse significative des revenus. Les revenus ont diminué de 92 % d'une année sur l'autre, passant de 2,04 millions de dollars à 170 528 dollars, bien qu'ils aient montré une augmentation de 20 % par rapport au Q1 FY2025. L'entreprise a signalé une perte d'exploitation de (2,2 millions de dollars) comparativement à un revenu d'exploitation de 52 220 dollars au Q2 FY2024. La perte nette s'élevait à (2,22 millions de dollars) contre un bénéfice de 339 616 dollars l'année dernière, avec une perte par action de (2,34 dollars).
Parmi les développements notables, on trouve l'approbation de Netcapital Securities par la FINRA en tant que courtier-négociant, permettant à l'entreprise de soutenir les offres Reg A et Reg D, de faciliter des levées de fonds plus importantes et d'établir des accords de partage de frais. La position de liquidités était de 1,35 millions de dollars au 31 octobre 2024.
Netcapital (NASDAQ: NCPL) hat die finanziellen Ergebnisse für das 2. Quartal FY2025 veröffentlicht, die einen signifikanten Rückgang der Einnahmen zeigen. Die Einnahmen sind im Jahresvergleich um 92% gesunken, von 2,04 Millionen Dollar auf 170.528 Dollar, obwohl sie im Vergleich zum 1. Quartal FY2025 um 20% gestiegen sind. Das Unternehmen meldete einen operativen Verlust von (2,2 Millionen Dollar) im Vergleich zu einem operativen Gewinn von 52.220 Dollar im 2. Quartal FY2024. Der Nettoverlust betrug (2,22 Millionen Dollar) gegenüber einem Gewinn von 339.616 Dollar im Vorjahr, mit einem Verlust pro Aktie von (2,34 Dollar).
Bemerkenswerte Entwicklungen umfassen die Genehmigung von Netcapital Securities durch die FINRA als Broker-Dealer, die es dem Unternehmen ermöglicht, Reg A und Reg D Angebote zu unterstützen, größere Kapitalbeschaffungsmaßnahmen zu erleichtern und Gebührenbeteiligungsvereinbarungen zu etablieren. Die liquiden Mittel beliefen sich am 31. Oktober 2024 auf 1,35 Millionen Dollar.
- 20% quarter-over-quarter revenue growth to $170,528
- FINRA approval as broker-dealer, expanding revenue opportunities
- Maintained cash position of $1.35 million
- 92% year-over-year revenue decline to $170,528 from $2.04 million
- Operating loss of $2.2 million vs. income of $52,220 year-over-year
- Net loss of $2.22 million vs. profit of $339,616 year-over-year
- Loss per share of $2.34 vs. earnings of $2.52 year-over-year
- Significant slowdown in consulting revenue
Insights
- Management to Host Earnings Call on December 17, 2024 at 10:00 a.m. ET
BOSTON, MA, Dec. 16, 2024 (GLOBE NEWSWIRE) -- Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced financial results for the second quarter of fiscal year 2025 ended October 31, 2024.
"During the quarter ended October 31, 2024, we saw a decrease in revenue, when compared to the quarter ended October 31, 2023, but an increase in revenue when compared to the quarter ended July 31, 2024. The year-over-year decrease was primarily due to a slowdown in consulting revenue, while the sequential increase was driven by our funding portal business. Despite the challenges we faced during a tough quarter, we remain optimistic about the future,” said Martin Kay, CEO of Netcapital Inc. “Recently our wholly-owned subsidiary, Netcapital Securities Inc. received approval from FINRA to become a FINRA-member broker-dealer, which marks a significant achievement for the Company as it begins to open up opportunities for more revenue channels. Looking beyond the second quarter we are focused on leveraging our new broker-dealer license and expanding our capabilities. With NSI as a registered broker-dealer, we can now support companies raising capital under Reg A and Reg D offerings, facilitate and charge fees on larger fundraises, potentially provide a broader range of investment choices for our investor base, and establish fee-sharing agreements with other broker-dealers.”
Second Quarter Fiscal 2025 Financial Highlights
- Revenues decreased
92% year-over-year to$170,528 , compared to revenue of$2,041,658 million in the second quarter of fiscal year 2024. - Revenues increased
20% quarter-over-quarter to$170,528 , compared to revenue of$142,227 in the first quarter of fiscal year 2025. - Operating loss of (
$2,202,431) in the second quarter fiscal 2025 as compared to operating income of$52,220 for the second quarter fiscal 2024 - Net loss of approximately (
$2,220,501) in the second quarter of fiscal 2025, as compared to a net profit of approximately$339,616 , for the same period in the prior year - Loss per share of (
$2.34) for the quarter ended October 31, 2024, compared to earnings per share of$2.52 for the same period in the prior year - As of October 31, 2024, the Company had cash and cash equivalents of
$1,346,739.
Conference Call Information
The Company will host an investor conference call on Tuesday, December 17, 2024, at 10 a.m. ET.
Participant access: 844-985-2012 or 973-528-0138
Conference entry code: 894026
For additional disclosure regarding Netcapital’s operating results, please refer to the Quarterly Report on Form 10-Q for the period ended October 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
| October 31, 2024 (Unaudited) | April 30, 2024 (Audited) | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 1,346,739 | $ | 863,182 | ||||
| Accounts receivable net | 17,151 | 134,849 | ||||||
| Interest receivable | 2,000 | 1,200 | ||||||
| Note receivable | 20,000 | 20,000 | ||||||
| Prepaid expenses | 30,120 | 23,304 | ||||||
| Total current assets | 1,416,010 | 1,042,535 | ||||||
| Deposits | 6,300 | 6,300 | ||||||
| Notes receivable - related parties | 202,000 | 202,000 | ||||||
| Purchased technology, net | 14,715,267 | 14,733,005 | ||||||
| Investment in affiliate | 240,080 | 240,080 | ||||||
| Equity securities | 25,358,261 | 25,333,386 | ||||||
| Total assets | $ | 41,937,918 | $ | 41,557,306 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,815,823 | $ | 793,325 | ||||
| Accrued expenses | 199,189 | 310,300 | ||||||
| Deferred revenue | 409 | 466 | ||||||
| Interest payable | 96,050 | 92,483 | ||||||
| Current portion of SBA loans | 1,885,800 | 1,885,800 | ||||||
| Loan payable - bank | 34,324 | 34,324 | ||||||
| Total current liabilities | 4,031,595 | 3,116,698 | ||||||
| Long-term liabilities: | ||||||||
| Long-term SBA loans, less current portion | 500,000 | 500,000 | ||||||
| Total liabilities | 4,531,595 | 3,616,698 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $.001 par value; 900,000,000 shares authorized,1,841,335 and 326,867 shares issued and outstanding | 1,842 | 327 | ||||||
| Shares to be issued | 122,124 | 122,124 | ||||||
| Capital in excess of par value | 41,550,465 | 37,338,594 | ||||||
| Retained earnings (deficit) | (4,268,108 | ) | 479,563 | |||||
| Total stockholders’ equity | 37,406,323 | 37,940,608 | ||||||
| Total liabilities and stockholders’ equity | $ | 41,937,918 | $ | 41,557,306 | ||||
NETCAPITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
| October 31, 2024 | October 31, 2023 | October 31, 2024 | October 31, 2023 | |||||||||||||
| Revenues | $ | 170,528 | $ | 2,041,658 | $ | 312,755 | $ | 3,561,467 | ||||||||
| Costs of services | 19,781 | 20,134 | 30,001 | 38,187 | ||||||||||||
| Gross profit | 150,747 | 2,021,524 | 282,754 | 3,523,280 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Consulting expense | 79,645 | 204,734 | 177,026 | 368,676 | ||||||||||||
| Marketing | 12,208 | 46,731 | 19,106 | 288,619 | ||||||||||||
| Rent | 19,442 | 18,379 | 38,558 | 37,989 | ||||||||||||
| Payroll and payroll related expenses | 749,701 | 1,050,835 | 1,886,294 | 2,087,877 | ||||||||||||
| General and administrative costs | 1,492,182 | 648,625 | 2,872,438 | 1,436,919 | ||||||||||||
| Total costs and expenses | 2,353,178 | 1,969,304 | 4,993,422 | 4,220,080 | ||||||||||||
| Operating income (loss) | (2,202,431 | ) | 52,220 | (4,710,668 | ) | (696,800 | ) | |||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (9,601 | ) | (10,562 | ) | (20,065 | ) | (23,866 | ) | ||||||||
| Interest income | 400 | - | 800 | - | ||||||||||||
| Amortization of intangible assets | (8,869 | ) | (28,331 | ) | (17,738 | ) | (56,662 | ) | ||||||||
| Total other income (expense) | (18,070 | ) | (38,893 | ) | (37,003 | ) | (80,528 | ) | ||||||||
| Net income (loss) before taxes | (2,220,501 | ) | 13,327 | (4,747,671 | ) | (777,328 | ) | |||||||||
| Income tax expense (benefit) | - | (326,289 | ) | - | (625,289 | ) | ||||||||||
| Net income (loss) | $ | (2,220,501 | ) | $ | 339,616 | $ | (4,747,671 | ) | $ | (152,039 | ) | |||||
| Basic earnings (loss) per share | $ | (2.34 | ) | $ | 2.52 | $ | (6.58 | ) | $ | (1.26 | ) | |||||
| Diluted earnings (loss) per share | $ | (2.34 | ) | $ | 2.52 | $ | (6.58 | ) | $ | (1.26 | ) | |||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 947,459 | 134,793 | 721,389 | 120,762 | ||||||||||||
| Diluted | 947,459 | 134,796 | 721,389 | 120,762 | ||||||||||||
FAQ
What caused NCPL's 92% revenue decline in Q2 FY2025?
How will NCPL's new FINRA broker-dealer status impact its business?
What is NCPL's current cash position as of October 31, 2024?
How did NCPL's Q2 FY2025 earnings compare to the previous quarter?
What was NCPL's earnings per share for Q2 FY2025?
