Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Netcapital Announces Third Quarter Fiscal 2024 Financial Results By: Netcapital Inc. via Business Wire March 18, 2024 at 17:41 PM EDT Management to Host Earnings Call on March 19, 2024 at 10:00 a.m. ET Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced select financial results for the third quarter of fiscal year 2024 ended January 31, 2024. "Despite the challenges faced by businesses seeking capital in the current market climate, we remain optimistic about our future prospects and the strength of our funding portal,” said Martin Kay, CEO of Netcapital Inc. "While we experienced a decline in the number of issuers listing on our platform this quarter, funding portal revenues increased by more than 70% on a year-to-date basis, and we continue to focus on the opportunities ahead. Most notably, we closed a $4 million public offering in December which adds to working capital, strengthens our financial position, and which we believe positions us for future success. ” Third Quarter Fiscal 2024 Financial Highlights Revenues decreased by approximately 54% year-over-year to $1.0 million, compared to revenue of $2.3 million in the third quarter of fiscal year 2023. Funding portal revenues decreased approximately 23% year-over-year to $179,588 compared to $231,833 in the third quarter of fiscal 2023. Diluted earnings per share of ($0.19) in the three months ended January 31, 2024, were down compared to diluted earnings per share of $0.33 for the same period in the prior year. As of January 31, 2024, the Company had cash and cash equivalents of $2,172,099. First Nine Months of Fiscal 2024 Financial Highlights Revenues decreased by approximately 14% year-over-year to $4.6 million, compared to revenue of $5.4 million in the first nine months of fiscal year 2023. Funding portal revenues increased driven by higher portal fees of approximately 152% year-over-year to $375,683 and an increase in listing fees of $48,040, or 14% compared to the first nine months of fiscal 2023. Diluted earnings per share of ($0.25) in the nine months ended January 31, 2024, were down compared to diluted earnings per share of $0.46 for the same period in the prior year. In December 2023, the Company closed a $4 million underwritten public offering. For additional disclosure regarding Netcapital’s operating results, please refer to the Quarterly Report on Form 10-Q for the period ended January 31, 2024, which has been filed with the Securities and Exchange Commission. Netcapital Inc Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended January 31, 2024 January 31, 2023 January 31, 2024 January 31, 2023 Revenues $ 1,042,793 $ 2,260,414 $ 4,604,260 $ 5,379,960 Costs of services 58,875 4,305 97,062 61,603 Gross profit 983,918 2,256,109 4,507,198 5,318,357 Costs and expenses: Consulting expense 175,357 130,500 544,033 455,892 Marketing 32,198 23,549 320,817 64,211 Rent 19,544 17,187 57,533 51,586 Payroll and payroll related expenses 869,517 946,043 2,957,394 2,592,891 General and administrative costs 1,092,459 568,253 2,529,378 1,241,365 Total costs and expenses 2,189,075 1,685,532 6,409,155 4,405,945 Operating income (loss) (1,205,157 ) 570,577 (1,901,957 ) 912,412 Other income (expense): Interest expense (11,918 ) (17,632 ) (35,784 ) (76,922 ) Gain on debt conversion - - - 224,260 Amortization of intangible assets (28,331 ) (25,914 ) (84,993 ) (68,076 ) Unrealized gain (loss) on equity securities (2,696,135 ) 1,866,468 (2,696,135 ) 1,857,500 Realized loss on sale of investment - - - (406,060 ) Total other income (expense) (2,736,384 ) 1,822,922 (2,816,912 ) 1,530,702 Net income (loss) before taxes (3,941,541 ) 2,393,499 (4,718,869 ) 2,443,114 Income tax expense (benefit) (1,713,999 ) 697,000 (2,339,288 ) 499,000 Net income (loss) $ (2,227,542 ) $ 1,696,499 $ (2,379,581 ) $ 1,944,114 Basic earnings per share $ (0.19 ) $ 0.33 $ (0.25 ) $ 0.46 Diluted earnings per share $ (0.19 ) $ 0.33 $ (0.25 ) $ 0.46 Weighted average number of common shares outstanding: Basic 11,466,523 5,166,299 9,457,740 4,208,216 Diluted 11,466,523 5,166,549 9,457,740 4,208,466 Netcapital Inc. Balance Sheets Assets: January 31, 2024 April 30, 2023 Cash and cash equivalents $ 2,172,099 $ 569,441 Accounts receivable net 3,701,501 1,388,500 Note receivable 20,000 - Prepaid expenses 158,465 583,030 Total current assets 6,052,065 2,540,971 Deposits 6,300 6,300 Notes receivable - related parties 202,000 202,000 Purchased technology, net 15,790,304 15,875,297 Investment in affiliate 240,080 240,080 Equity securities at fair value 21,844,698 22,955,445 Total assets $ 44,135,447 $ 41,820,093 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Trade $ 828,836 $ 578,331 Related party 75,204 75,204 Accrued expenses 394,911 285,065 Stock subscription payable 10,000 10,000 Deferred revenue 487 661 Interest payable 88,084 98,256 Current taxes payable - 174,000 Deferred tax liability, net - 1,657,000 Related party debt 15,000 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 3,332,646 5,163,641 Long-term liabilities: Long-term SBA loans, less current portion 500,000 500,000 Total Liabilities 3,832,646 5,663,641 Commitments and contingencies - - Stockholders' equity: Common stock, $.001 par value; 900,000,000 shares authorized, 17,231,132 and 6,440,527 shares issued and outstanding 17,231 6,441 Shares to be issued 122,124 183,187 Capital in excess of par value 37,077,147 30,500,944 Retained earnings 3,086,299 5,465,880 Total stockholders' equity 40,302,801 36,156,452 Total liabilities and stockholders' equity $ 44,135,447 $ 41,820,093 Conference Call Information The Company will host an investor conference call on Tuesday, March 19, 2024 at 10:00 a.m. ET. Participant access: 844-985-2012 or 973-528-0138 Conference entry code: 926076 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 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. 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/20240318134239/en/Contacts Investors 800-460-0815 ir@netcapital.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Netcapital Announces Third Quarter Fiscal 2024 Financial Results By: Netcapital Inc. via Business Wire March 18, 2024 at 17:41 PM EDT Management to Host Earnings Call on March 19, 2024 at 10:00 a.m. ET Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced select financial results for the third quarter of fiscal year 2024 ended January 31, 2024. "Despite the challenges faced by businesses seeking capital in the current market climate, we remain optimistic about our future prospects and the strength of our funding portal,” said Martin Kay, CEO of Netcapital Inc. "While we experienced a decline in the number of issuers listing on our platform this quarter, funding portal revenues increased by more than 70% on a year-to-date basis, and we continue to focus on the opportunities ahead. Most notably, we closed a $4 million public offering in December which adds to working capital, strengthens our financial position, and which we believe positions us for future success. ” Third Quarter Fiscal 2024 Financial Highlights Revenues decreased by approximately 54% year-over-year to $1.0 million, compared to revenue of $2.3 million in the third quarter of fiscal year 2023. Funding portal revenues decreased approximately 23% year-over-year to $179,588 compared to $231,833 in the third quarter of fiscal 2023. Diluted earnings per share of ($0.19) in the three months ended January 31, 2024, were down compared to diluted earnings per share of $0.33 for the same period in the prior year. As of January 31, 2024, the Company had cash and cash equivalents of $2,172,099. First Nine Months of Fiscal 2024 Financial Highlights Revenues decreased by approximately 14% year-over-year to $4.6 million, compared to revenue of $5.4 million in the first nine months of fiscal year 2023. Funding portal revenues increased driven by higher portal fees of approximately 152% year-over-year to $375,683 and an increase in listing fees of $48,040, or 14% compared to the first nine months of fiscal 2023. Diluted earnings per share of ($0.25) in the nine months ended January 31, 2024, were down compared to diluted earnings per share of $0.46 for the same period in the prior year. In December 2023, the Company closed a $4 million underwritten public offering. For additional disclosure regarding Netcapital’s operating results, please refer to the Quarterly Report on Form 10-Q for the period ended January 31, 2024, which has been filed with the Securities and Exchange Commission. Netcapital Inc Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended January 31, 2024 January 31, 2023 January 31, 2024 January 31, 2023 Revenues $ 1,042,793 $ 2,260,414 $ 4,604,260 $ 5,379,960 Costs of services 58,875 4,305 97,062 61,603 Gross profit 983,918 2,256,109 4,507,198 5,318,357 Costs and expenses: Consulting expense 175,357 130,500 544,033 455,892 Marketing 32,198 23,549 320,817 64,211 Rent 19,544 17,187 57,533 51,586 Payroll and payroll related expenses 869,517 946,043 2,957,394 2,592,891 General and administrative costs 1,092,459 568,253 2,529,378 1,241,365 Total costs and expenses 2,189,075 1,685,532 6,409,155 4,405,945 Operating income (loss) (1,205,157 ) 570,577 (1,901,957 ) 912,412 Other income (expense): Interest expense (11,918 ) (17,632 ) (35,784 ) (76,922 ) Gain on debt conversion - - - 224,260 Amortization of intangible assets (28,331 ) (25,914 ) (84,993 ) (68,076 ) Unrealized gain (loss) on equity securities (2,696,135 ) 1,866,468 (2,696,135 ) 1,857,500 Realized loss on sale of investment - - - (406,060 ) Total other income (expense) (2,736,384 ) 1,822,922 (2,816,912 ) 1,530,702 Net income (loss) before taxes (3,941,541 ) 2,393,499 (4,718,869 ) 2,443,114 Income tax expense (benefit) (1,713,999 ) 697,000 (2,339,288 ) 499,000 Net income (loss) $ (2,227,542 ) $ 1,696,499 $ (2,379,581 ) $ 1,944,114 Basic earnings per share $ (0.19 ) $ 0.33 $ (0.25 ) $ 0.46 Diluted earnings per share $ (0.19 ) $ 0.33 $ (0.25 ) $ 0.46 Weighted average number of common shares outstanding: Basic 11,466,523 5,166,299 9,457,740 4,208,216 Diluted 11,466,523 5,166,549 9,457,740 4,208,466 Netcapital Inc. Balance Sheets Assets: January 31, 2024 April 30, 2023 Cash and cash equivalents $ 2,172,099 $ 569,441 Accounts receivable net 3,701,501 1,388,500 Note receivable 20,000 - Prepaid expenses 158,465 583,030 Total current assets 6,052,065 2,540,971 Deposits 6,300 6,300 Notes receivable - related parties 202,000 202,000 Purchased technology, net 15,790,304 15,875,297 Investment in affiliate 240,080 240,080 Equity securities at fair value 21,844,698 22,955,445 Total assets $ 44,135,447 $ 41,820,093 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Trade $ 828,836 $ 578,331 Related party 75,204 75,204 Accrued expenses 394,911 285,065 Stock subscription payable 10,000 10,000 Deferred revenue 487 661 Interest payable 88,084 98,256 Current taxes payable - 174,000 Deferred tax liability, net - 1,657,000 Related party debt 15,000 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 3,332,646 5,163,641 Long-term liabilities: Long-term SBA loans, less current portion 500,000 500,000 Total Liabilities 3,832,646 5,663,641 Commitments and contingencies - - Stockholders' equity: Common stock, $.001 par value; 900,000,000 shares authorized, 17,231,132 and 6,440,527 shares issued and outstanding 17,231 6,441 Shares to be issued 122,124 183,187 Capital in excess of par value 37,077,147 30,500,944 Retained earnings 3,086,299 5,465,880 Total stockholders' equity 40,302,801 36,156,452 Total liabilities and stockholders' equity $ 44,135,447 $ 41,820,093 Conference Call Information The Company will host an investor conference call on Tuesday, March 19, 2024 at 10:00 a.m. ET. Participant access: 844-985-2012 or 973-528-0138 Conference entry code: 926076 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 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. 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/20240318134239/en/Contacts Investors 800-460-0815 ir@netcapital.com
Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced select financial results for the third quarter of fiscal year 2024 ended January 31, 2024. "Despite the challenges faced by businesses seeking capital in the current market climate, we remain optimistic about our future prospects and the strength of our funding portal,” said Martin Kay, CEO of Netcapital Inc. "While we experienced a decline in the number of issuers listing on our platform this quarter, funding portal revenues increased by more than 70% on a year-to-date basis, and we continue to focus on the opportunities ahead. Most notably, we closed a $4 million public offering in December which adds to working capital, strengthens our financial position, and which we believe positions us for future success. ” Third Quarter Fiscal 2024 Financial Highlights Revenues decreased by approximately 54% year-over-year to $1.0 million, compared to revenue of $2.3 million in the third quarter of fiscal year 2023. Funding portal revenues decreased approximately 23% year-over-year to $179,588 compared to $231,833 in the third quarter of fiscal 2023. Diluted earnings per share of ($0.19) in the three months ended January 31, 2024, were down compared to diluted earnings per share of $0.33 for the same period in the prior year. As of January 31, 2024, the Company had cash and cash equivalents of $2,172,099. First Nine Months of Fiscal 2024 Financial Highlights Revenues decreased by approximately 14% year-over-year to $4.6 million, compared to revenue of $5.4 million in the first nine months of fiscal year 2023. Funding portal revenues increased driven by higher portal fees of approximately 152% year-over-year to $375,683 and an increase in listing fees of $48,040, or 14% compared to the first nine months of fiscal 2023. Diluted earnings per share of ($0.25) in the nine months ended January 31, 2024, were down compared to diluted earnings per share of $0.46 for the same period in the prior year. In December 2023, the Company closed a $4 million underwritten public offering. For additional disclosure regarding Netcapital’s operating results, please refer to the Quarterly Report on Form 10-Q for the period ended January 31, 2024, which has been filed with the Securities and Exchange Commission. Netcapital Inc Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended January 31, 2024 January 31, 2023 January 31, 2024 January 31, 2023 Revenues $ 1,042,793 $ 2,260,414 $ 4,604,260 $ 5,379,960 Costs of services 58,875 4,305 97,062 61,603 Gross profit 983,918 2,256,109 4,507,198 5,318,357 Costs and expenses: Consulting expense 175,357 130,500 544,033 455,892 Marketing 32,198 23,549 320,817 64,211 Rent 19,544 17,187 57,533 51,586 Payroll and payroll related expenses 869,517 946,043 2,957,394 2,592,891 General and administrative costs 1,092,459 568,253 2,529,378 1,241,365 Total costs and expenses 2,189,075 1,685,532 6,409,155 4,405,945 Operating income (loss) (1,205,157 ) 570,577 (1,901,957 ) 912,412 Other income (expense): Interest expense (11,918 ) (17,632 ) (35,784 ) (76,922 ) Gain on debt conversion - - - 224,260 Amortization of intangible assets (28,331 ) (25,914 ) (84,993 ) (68,076 ) Unrealized gain (loss) on equity securities (2,696,135 ) 1,866,468 (2,696,135 ) 1,857,500 Realized loss on sale of investment - - - (406,060 ) Total other income (expense) (2,736,384 ) 1,822,922 (2,816,912 ) 1,530,702 Net income (loss) before taxes (3,941,541 ) 2,393,499 (4,718,869 ) 2,443,114 Income tax expense (benefit) (1,713,999 ) 697,000 (2,339,288 ) 499,000 Net income (loss) $ (2,227,542 ) $ 1,696,499 $ (2,379,581 ) $ 1,944,114 Basic earnings per share $ (0.19 ) $ 0.33 $ (0.25 ) $ 0.46 Diluted earnings per share $ (0.19 ) $ 0.33 $ (0.25 ) $ 0.46 Weighted average number of common shares outstanding: Basic 11,466,523 5,166,299 9,457,740 4,208,216 Diluted 11,466,523 5,166,549 9,457,740 4,208,466 Netcapital Inc. Balance Sheets Assets: January 31, 2024 April 30, 2023 Cash and cash equivalents $ 2,172,099 $ 569,441 Accounts receivable net 3,701,501 1,388,500 Note receivable 20,000 - Prepaid expenses 158,465 583,030 Total current assets 6,052,065 2,540,971 Deposits 6,300 6,300 Notes receivable - related parties 202,000 202,000 Purchased technology, net 15,790,304 15,875,297 Investment in affiliate 240,080 240,080 Equity securities at fair value 21,844,698 22,955,445 Total assets $ 44,135,447 $ 41,820,093 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Trade $ 828,836 $ 578,331 Related party 75,204 75,204 Accrued expenses 394,911 285,065 Stock subscription payable 10,000 10,000 Deferred revenue 487 661 Interest payable 88,084 98,256 Current taxes payable - 174,000 Deferred tax liability, net - 1,657,000 Related party debt 15,000 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 3,332,646 5,163,641 Long-term liabilities: Long-term SBA loans, less current portion 500,000 500,000 Total Liabilities 3,832,646 5,663,641 Commitments and contingencies - - Stockholders' equity: Common stock, $.001 par value; 900,000,000 shares authorized, 17,231,132 and 6,440,527 shares issued and outstanding 17,231 6,441 Shares to be issued 122,124 183,187 Capital in excess of par value 37,077,147 30,500,944 Retained earnings 3,086,299 5,465,880 Total stockholders' equity 40,302,801 36,156,452 Total liabilities and stockholders' equity $ 44,135,447 $ 41,820,093 Conference Call Information The Company will host an investor conference call on Tuesday, March 19, 2024 at 10:00 a.m. ET. Participant access: 844-985-2012 or 973-528-0138 Conference entry code: 926076 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 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. 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/20240318134239/en/