Business
Netcapital Announces Full Year Fiscal 2024 Financial Results
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
About this update from Netcapital Inc.
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 100% during the year.” 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 [email protected] 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 Source: Netcapital Inc.