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 “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 
ir@netcapital.com

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