Business
Netcapital Announces Revenue Growth of 55% for Fiscal Year 2023
Investor conference call to be held tomorrow, July 27, 2023, at 10:00 a.m. ET BOSTON--(BUSINESS WIRE)-- Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the
About this update from Netcapital Inc.
Investor conference call to be held tomorrow, July 27, 2023 , at 10:00 a.m. ET BOSTON --(BUSINESS WIRE)-- Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced financial results for its fourth quarter and fiscal year 2023 ended April 30, 2023 . “Fiscal 2023 marked a year of strong performance, highlighted by revenue growth of 55% and operating income of more than $2 million ,” said Martin Kay , CEO of Netcapital Inc. “The value proposition of our business is becoming more evident as we continue to build scale and deliver a superior experience at a lower cost for issuers. We expect to offer secondary trading in private equities later in this year, a liquidity model that we believe will support expansion of both our investor and issuer communities, and generate a potential new revenue stream for Netcapital . As a back-to-back winner of the Fintech Breakthrough Award in 2022 and 2023, our brand is well-recognized for innovation and excellence, and well-positioned for value creation.” Fiscal Year 2023 Highlights Revenue growth of 55% year-over-year to $8.5 million as compared to $5.5 million in fiscal 2022 Operating income of $2.3 million compared to an operating loss of $1.0 million in fiscal year 2022 Paid down $1 million in debt, closed two underwritten public offering for aggregate gross proceeds of $6.7 million , and uplisted to Nasdaq in July 2022 For additional disclosure regarding operating results, please refer to the Annual Report on Form 10-K for the period ended April 30, 2023 , which has been filed with the U.S. Securities and Exchange Commission . Conference Call Information The Company will host an investor conference call at 10:00 a.m. ET tomorrow , July 27, 2023 . Participant access: 844-985-2012 or 973-528-0138 Conference entry code: 398497 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 with disruptive technologies. The Netcapital funding portal 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. NETCAPITAL INC. CONSOLIDATED BALANCE SHEETS Assets: April 30, 2023 April 30, 2022 Cash and cash equivalents $ 569,441 $ 473,925 Accounts receivable net 1,388,500 2,433,900 Related party receivable - 668 Prepaid expenses 583,030 5,694 Total current assets 2,540,971 2,914,187 Deposits 6,300 6,300 Notes receivable - related parties 202,000 202,000 Purchased technology, net 15,875,297 15,536,704 Investment in affiliate 240,080 240,080 Equity securities at fair value 22,955,445 12,861,253 Total assets $ 41,820,093 $ 31,760,524 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Trade $ 578,331 $ 536,508 Related party 75,204 378,077 Accrued expenses 285,065 229,867 Stock subscription payable 10,000 33,400 Deferred revenue 661 2,532 Interest payable 98,256 222,295 Current taxes payable 174,000 - Deferred tax liability, net 1,657,000 977,000 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 5,163,641 6,027,590 Long-term liabilities: Long-term SBA loans, less current portion 500,000 495,073 Total Liabilities 5,663,641 6,522,663 Commitments and contingencies - - Stockholders' equity: Common stock, $.001 par value; 900,000,000 shares authorized, 6,440,777 and 2,934,344 shares issued and outstanding 6,441 2,934 Shares to be issued 183,187 244,250 Capital in excess of par value 30,500,944 22,479,769 Retained earnings 5,465,880 2,510,908 Total stockholders' equity 36,156,452 25,237,861 Total liabilities and stockholders' equity $ 41,820,093 $ 31,760,524 NETCAPITAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended Year Ended April 30, 2023 April 30, 2022 Revenues $ 8,493,985 $ 5,480,835 Costs of services 85,038 110,115 Gross profit 8,408,947 5,370,720 Costs and expenses: Consulting expense 589,349 892,567 Marketing 85,482 95,753 Rent 75,052 47,670 Payroll and payroll related expenses 3,646,490 3,763,845 General and administrative costs 1,740,698 1,602,031 Total costs and expenses 6,137,071 6,401,866 Operating income (loss) 2,271,876 (1,031,146 ) Other income (expense): Interest expense (93,842 ) (126,372 ) Gain on debt conversion 224,260 - Debt forgiveness - 1,904,296 Amortization of intangible assets (96,407 ) - Other income 51,645 25,007 Realized loss on sale of investment (406,060 ) - Unrealized gain on equity securities 1,857,500 3,275,745 Total other income (expense) 1,537,096 5,078,676 Net income before taxes 3,808,972 4,047,530 Income tax expense 854,000 544,000 Net income $ 2,954,972 $ 3,503,530 Basic earnings per share $ 0.63 $ 1.31 Diluted earnings per share $ 0.63 $ 1.27 Weighted average number of common shares outstanding: Basic 4,677,214 2,666,173 Diluted 4,677,464 2,748,480 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/20230726018455/en/ Investor 800-460-0815 [email protected] Source: Netcapital Inc.