Netcapital Announces Third Quarter Fiscal 2023 Financial Results Including Year-to-Date Revenue Growth of 48%
Netcapital Inc. (Nasdaq: NCPL, NCPLW) reported significant financial growth for Q3 and the first nine months of fiscal year 2023, ending January 31, 2023. Revenue surged by 25% year-over-year to $2.3 million in Q3, while the first nine months saw a 48% increase to $5.4 million. The company achieved positive operating income of $571,000 in Q3, compared to an operating loss of $135,000 the previous year. Earnings per share reached $0.33 for Q3 and $0.46 for the first nine months. The company also reduced debt by $1 million and successfully closed a $5 million public offering.
- Revenue growth of 25% year-over-year in Q3.
- Revenue growth of 48% year-over-year in the first nine months.
- Positive operating income of $571,000 in Q3 compared to an operating loss of $135,000.
- Diluted earnings per share of $0.33 in Q3 and $0.46 for the first nine months.
- Paid down $1 million in debt.
- None.
Conference call to be held on
“Over the past nine months,
Third Quarter Fiscal 2023 Financial Highlights
-
Revenue growth of
25% year-over-year to$2.3 million -
Positive operating income of
compared to an operating loss of$571,000 in the year-ago quarter$135,000 -
Diluted earnings per share of
$0.33
First Nine Months of Fiscal 2023 Highlights
-
Revenue growth of
48% year-over-year to$5.4 million -
Positive operating income of
compared to an operating loss of$912,000 in the first nine months of fiscal year 2022$1.5 million -
Diluted earnings per share of
$0.46 -
Paid down
in debt, closed a$1 million underwritten public offering, and uplisted to Nasdaq in$5 million July 2022
For additional disclosure regarding Netcapital’s operating results, please refer to the Quarterly Report on Form 10-Q for the period ended
Conference Call Information
The Company will host an investor conference call at
Participant access: |
844-985-2012 or 973-528-0138 |
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Conference entry code: |
399662 |
For those unable to participate in the live call, a replay will be made available in the Investors section of the Company’s website.
About
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||
(Unaudited) | (Audited) | ||||||||
Assets: | |||||||||
Cash and cash equivalents | $ |
1,771,927 |
$ |
473,925 |
|||||
Accounts receivable net |
|
2,163,931 |
|
2,433,900 |
|||||
Related party receivable |
|
668 |
|
668 |
|||||
Prepaid expenses |
|
36,844 |
|
5,694 |
|||||
Total current assets |
|
3,973,370 |
|
2,914,187 |
|||||
Deposits |
|
6,300 |
|
6,300 |
|||||
Notes receivable - related parties |
|
202,000 |
|
202,000 |
|||||
Purchased technology, net |
|
15,903,628 |
|
15,536,704 |
|||||
Investment in affiliate |
|
240,080 |
|
240,080 |
|||||
Equity securities at fair value |
|
19,250,193 |
|
12,861,253 |
|||||
Total assets | $ |
39,575,571 |
$ |
31,760,524 |
|||||
Liabilities and Stockholders' Equity | |||||||||
Current liabilities: | |||||||||
Accounts payable | |||||||||
Trade | $ |
634,970 |
$ |
536,508 |
|||||
Related party |
|
75,204 |
|
378,077 |
|||||
Accrued expenses |
|
246,665 |
|
229,867 |
|||||
Stock subscription payable |
|
10,000 |
|
33,400 |
|||||
Deferred revenue |
|
718 |
|
2,532 |
|||||
Interest payable |
|
89,491 |
|
222,295 |
|||||
Deferred tax liability, net |
|
1,476,000 |
|
977,000 |
|||||
Related party debt |
|
15,000 |
|
22,860 |
|||||
Convertible notes payable |
|
- |
|
300,000 |
|||||
Secured note payable |
|
350,000 |
|
1,400,000 |
|||||
Current portion of SBA loans |
|
1,885,800 |
|
1,890,727 |
|||||
Loan payable - bank |
|
34,324 |
|
34,324 |
|||||
Total current liabilities |
|
4,818,172 |
|
6,027,590 |
|||||
Long-term liabilities: | |||||||||
Long-term SBA loans, less current portion |
|
500,000 |
|
495,073 |
|||||
Total liabilities |
|
5,318,172 |
|
6,522,663 |
|||||
Commitments and contingencies |
|
- |
|
- |
|||||
Stockholders' equity: | |||||||||
Common stock, |
|||||||||
authorized, 6,071,777 and 2,934,344 shares issued and outstanding |
|
6,072 |
|
2,934 |
|||||
Shares to be issued |
|
183,187 |
|
244,250 |
|||||
Capital in excess of par value |
|
29,613,118 |
|
22,479,769 |
|||||
Retained earnings |
|
4,455,022 |
|
2,510,908 |
|||||
Total stockholders' equity |
|
34,257,399 |
|
25,237,861 |
|||||
Total liabilities and stockholders' equity | $ |
39,575,571 |
$ |
31,760,524 |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||
Three Months Ended |
Three Months Ended |
Nine Months Ended |
Nine Months Ended |
||||||||
|
|
|
|
||||||||
Revenues | $ |
2,260,414 |
$ |
1,811,041 |
$ |
5,379,960 |
$ |
3,636,050 |
|||
Costs of services |
|
4,305 |
|
39,349 |
|
61,603 |
|
85,429 |
|||
Gross profit |
|
2,256,109 |
|
1,771,692 |
|
5,318,357 |
|
3,550,621 |
|||
Costs and expenses: | |||||||||||
Consulting expense |
|
130,500 |
|
309,545 |
|
455,892 |
|
675,180 |
|||
Marketing |
|
23,549 |
|
23,945 |
|
64,211 |
|
67,771 |
|||
Rent |
|
17,187 |
|
11,869 |
|
51,586 |
|
34,480 |
|||
Payroll and payroll related expenses |
|
946,043 |
|
1,241,332 |
|
2,592,891 |
|
3,032,987 |
|||
General and administrative costs |
|
568,253 |
|
320,724 |
|
1,241,365 |
|
1,277,146 |
|||
Total costs and expenses |
|
1,685,532 |
|
1,907,415 |
|
4,405,945 |
|
5,087,564 |
|||
Operating income (loss) |
|
570,577 |
|
(135,723) |
|
912,412 |
|
(1,536,943) |
|||
Other income (expense): | |||||||||||
Interest expense |
|
(17,632) |
|
(20,573) |
|
(76,922) |
|
(90,844) |
|||
Gain on debt conversion |
|
- |
|
- |
|
224,260 |
|
- |
|||
Debt forgiveness |
|
- |
|
1,904,302 |
|
- |
|
1,904,302 |
|||
Amortization of intangible assets |
|
(25,914) |
|
- |
|
(68,076) |
|
- |
|||
Realized loss on sale of investment |
|
- |
|
- |
|
(406,060) |
|
- |
|||
Unrealized gain on equity securities |
|
1,866,468 |
|
- |
|
1,857,500 |
|
3,275,745 |
|||
Total other income (expense) |
|
1,822,922 |
|
1,883,729 |
|
1,530,702 |
|
5,089,203 |
|||
Net income before taxes |
|
2,393,499 |
|
1,748,006 |
|
2,443,114 |
|
3,552,260 |
|||
Income tax expense (benefit) |
|
697,000 |
|
(73,000) |
|
499,000 |
|
548,000 |
|||
Net income | $ |
1,696,499 |
$ |
1,821,006 |
$ |
1,944,114 |
$ |
3,004,260 |
|||
Basic earnings per share | $ |
0.33 |
$ |
0.64 |
$ |
0.46 |
$ |
1.16 |
|||
Diluted earnings per share | $ |
0.33 |
$ |
0.63 |
$ |
0.46 |
$ |
1.14 |
|||
Weighted average number of common shares outstanding: | |||||||||||
Basic |
|
5,166,299 |
|
2,842,924 |
|
4,208,216 |
|
2,589,142 |
|||
Diluted |
|
5,166,549 |
|
2,882,825 |
|
4,208,466 |
|
2,629,043 |
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230316005734/en/
Investor
800-460-0815
ir@netcapital.com
Source:
FAQ
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