Netcapital Announces Third Quarter Fiscal 2025 Financial Results

1 day ago 10

Scroll Up

  • Management to Host Earnings Call on March 19, 2025 at 10:00 a.m. ET

BOSTON, MA, March 17, 2025 (GLOBE NEWSWIRE) -- Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the "Company”), a digital private capital markets ecosystem, today announced financial results for the third quarter of fiscal year 2025 ended January 31, 2025.

"During the fiscal year, management shifted its focus to establishing the company's wholly-owned broker-dealer subsidiary, Netcapital Securities Inc., which was approved by FINRA in November. We believe this major milestone will provide additional sources of revenue going forward,” said Martin Kay, CEO of Netcapital Inc. "We did face a tough quarter during an uncertain market environment. Looking forward, however, we are pleased that Algernon NeuroScience Inc. recently engaged Netcapital Securities for a planned Regulation A (Reg A) offering and to provide broker-dealer and administrative services.”

Third Quarter Fiscal 2025 Financial Results

  • Revenue decreased approximately 85% year-over-year to $152,682, compared to revenue of $1,042,793 million in the third quarter of fiscal year 2024
  • Operating loss was ($1,687,692) in the third quarter fiscal 2025, compared to ($1,205,157) for the third quarter fiscal 2024
  • Net loss was ($3,006,537) in the third quarter fiscal 2025, compared to net loss of ($2,227,542) for the same period in the prior year
  • Loss per share was ($1.57) in the third quarter fiscal 2025, compared to loss per share of ($13.60) for the same period in the prior year
  • As of January 31, 2025, the Company had cash and cash equivalents of $614,304

Conference Call Information

The Company will host an investor conference call on Wednesday, March 19, 2025, at 10 a.m. ET.

Get the latest news
delivered to your inbox

Sign up for The Manila Times newsletters

By signing up with an email address, I acknowledge that I have read and agree to the Terms of Service and Privacy Policy.

Participant access: 844-985-2012 or 973-528-0138

Conference entry code: 165756

For additional disclosure regarding Netcapital's operating results, please refer to the Quarterly Report on Form 10-Q for the three-month period ended January 31, 2025, 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. The Company's broker-dealer, Netcapital Securities Inc., is also registered with the SEC and is a member of FINRA.

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 

[email protected]

NETCAPITAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

  January 31, 2025

(Unaudited)

  April 30, 2024

(Audited)

 
Assets:        
Cash and cash equivalents $614,304  $863,182 
Accounts receivable net  -   134,849 
Other receivables  2,400   1,200 
Note receivable  20,000   20,000 
Prepaid expenses  36,115   23,304 
Total current assets  672,819   1,042,535 
         
Deposits  6,300   6,300 
Notes receivable - related parties  202,000   202,000 
Purchased technology, net  14,706,398   14,733,005 
Investment in affiliate  240,080   240,080 
Equity securities  24,073,080   25,333,386 
Total assets $39,900,677  $41,557,306 
         
Liabilities and Stockholders' Equity        
Current liabilities:        
Accounts payable $2,160,727  $793,325 
Accrued expenses  250,983   310,300 
Deferred revenue  360   466 
Interest payable  98,218   92,483 
Current portion of SBA loans  1,885,800   1,885,800 
Loan payable - bank  34,324   34,324 
Total current liabilities  4,430,412   3,116,698 
         
Long-term liabilities:        
Long-term SBA loans, less current portion  500,000   500,000 
Total liabilities  4,930,412   3,616,698 
         
Commitments and contingencies  -   - 
         
Stockholders' equity:        
Common stock, $.001 par value; 900,000,000 shares authorized, 2,112,488 and 326,867 shares issued and outstanding  2,113   327 
Shares to be issued  122,124   122,124 
Capital in excess of par value  42,120,673   37,338,594 
Retained earnings (deficit)  (7,274,645)  479,563 
Total stockholders' equity  34,970,265   37,940,608 
Total liabilities and stockholders' equity $39,900,677  $41,557,306 

NETCAPITAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

  Three Months Ended  Three Months Ended  Nine Months Ended  Nine Months Ended 
  January 31, 2025  January 31, 2024  January 31, 2025  January 31, 2024 
             
Revenues $152,682  $1,042,793  $465,437  $4,604,260 
Costs of services  7,155   58,875   37,156   97,062 
Gross profit  145,527   983,918   428,281   4,507,198 
                 
Costs and expenses:                
Consulting expense  63,555   175,357   240,581   544,033 
Marketing  12,887   32,198   31,993   320,817 
Rent  20,178   19,544   58,736   57,533 
Payroll and payroll related expenses  815,024   869,517   2,701,318   2,957,394 
General and administrative costs  921,575   1,092,459   3,794,013   2,529,378 
Total costs and expenses  1,833,219   2,189,075   6,826,641   6,409,155 
Operating income (loss)  (1,687,692)  (1,205,157)  (6,398,360)  (1,901,957)
                 
Other income (expense):                
Interest expense  (10,376)  (11,918)  (30,441)  (35,784)
Interest income  400   -   1,200   - 
Impairment expense  (1,300,000)  -   (1,300,000)  - 
Amortization of intangible assets  (8,869)  (28,331)  (26,607)  (84,993)
Unrealized loss on equity securities  -   (2,696,135)  -   (2,696,135)
Total other income (expense)  (1,318,845)  (2,736,384)  (1,355,848)  (2,816,912)
Net income (loss) before taxes  (3,006,537)  (3,941,541)  (7,754,208)  (4,718,869)
Income tax expense (benefit)  -   (1,713,999)  -   (2,339,288)
Net income (loss) $(3,006,537) $(2,227,542) $(7,754,208) $(2,379,581)
                 
Basic earnings (loss) per share $(1.57) $(13.60) $(6.93) $(17.61)
Diluted earnings (loss) per share $(1.57) $(13.60) $(6.93) $(17.61)
                 
Weighted average number of common shares outstanding:                
Basic  1,915,367   163,807   1,119,479   135,111 
Diluted  1,915,367   163,807   1,119,479   135,111 

%0A<div%20class=%22article-ad-six%20article-ad%22%20data-ad=%22article_body_ad_six%22>%0A%20%20%20%20<span%20class=" mt-ad-container>Advertisement

This website uses cookies. By continuing to browse the website, you are agreeing to our use of cookies. Read More.

Read Entire Article